Coveris, Energy Future break; INC Research, Belmond, Vivid, Sterling, Klockner revised

By Sara Rosenberg

New York, June 26 – Coveris Holdings SA shifted some funds between its U.S. and euro first-lien term loans, and then the U.S. tranche made its way into the secondary market on Monday, and Energy Future Intermediate Holding Co. LLC’s debtor-in-possession financial facility began trading too.

In more happenings, INC Research Holdings Inc. reduced the size of its term loan B, added a pricing step-down and tightened the original issue discount, and increased the size of its term loan A, and Belmond Interfin Ltd. finalized spreads on its U.S. and euro term loans at the low side of guidance and modified the issue price on the euro tranche.

Also, Vivid Seats LLC tightened the spread and original issue discount on its term loan B, Sterling Talent Solutions adjusted the issue price on its incremental term loan B and extension fee on its existing term loan B, and Klockner Pentaplast downsized its U.S. and euro term loans and increased pricing.

Additionally, Zayo Group LLC, Interface Security Systems LLC, Power Products LLC and NFP Corp. released price talk with launch, and DexKo Global Inc. joined this week’s primary calendar.

Coveris tweaked, frees up

Coveris cut its U.S. first-lien term loan due June 2022 to $420,385,581 from $510 million and raised its euro first-lien term loan due June 2022 to €482,298,081 from €402 million, according to a market source.

Pricing on the U.S. loan is Libor plus 425 basis points and pricing on the euro loan is Euribor plus 400 bps. Both tranches have a 1% floor, a new money original issue discount of 99.5, an extension fee of 50 bps and 101 soft call protection for one year.

Previously in syndication, pricing on the U.S. loan was lifted from Libor plus 400 bps, pricing on the euro loan was increased from Euribor plus 350 bps, the call protection was extended from six months, the extension fee was raised from 25 bps and the maturities were shortened from June 2024.

With final terms in place, the U.S. term loan broke for trading on Monday and levels were quoted at 99˝ bid, par offered, another source added.

Goldman Sachs Bank USA is leading the deal (B2/B) that will extend existing term loan maturities from May 18, 2019. The existing loans are priced at Libor/Euribor plus 350 bps with a 1% floor.

Closing is expected this week.

Coveris, a Sun Capital Partners Inc. portfolio company, is a Chicago-based manufacturer and distributor of packaging solutions and coated film technologies.

Energy Future hits secondary

Energy Future Intermediate Holding’s $6.3 billion debtor-in-possession financing facility due June 2018 also freed to trade, with levels seen at 99 7/8 bid, par 1/8 offered, a market source said.

Pricing on the DIP, which includes an $825 million delayed-draw tranche, is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months, and a 25 bps step-up if ratings are not refreshed within 30 days of close, another 25 bps step-up if ratings are not refreshed within 60 days of close and another 25 bps step-up if ratings are not refreshed within 90 days of close. The pricing step-up will be in effect until the ratings are refreshed.

The delayed-draw tranche is available for 90 days following entry of the final order with up to two draws at a minimum size of $200 million. Drawings will become fungible with the DIP term loan.

The DIP has a six-month extension option subject to certain conditions including a 25 bps fee.

During syndication, the delayed-draw loan was added to the transaction, the option for the DIP to convert and be reduced to a $4 billion seven-year covenant-light term loan upon exit from bankruptcy was removed, pricing was increased from Libor plus 275 bps, the Libor floor was lifted from 0%, the discount was changed from 99.75 and the ratings refresh provision was added.

Energy Future lead banks

Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading Energy Future’s DIP loan.

Proceeds will be used to refinance an existing $5,475,000,000 DIP, to pay DIP interest and to pay restructuring fees and expenses, and the delayed-draw term loan can be used to fund additional liquidity and/or refinance pre-petition first-lien make-whole settlement claims.

Closing is expected on Wednesday.

Energy Future is a Dallas-based power generation company and utility operator.

BWICs announced

Also in trading, a $183 million Bid Wanted In Competition emerged, with bids due at 11 a.m. ET on Thursday, a $159 million BWIC surfaced, with bids due at 11 a.m. ET on Tuesday, and a $147 million BWIC was announced for which bids are due at 11 a.m. ET on Tuesday, traders remarked.

Included in the $183 million BWIC is debt from, among others, Alere Inc., Berry Plastics Corp., Drillships, Envigo Laboratories Inc., HGIM Corp., MacDermid Inc., PTC Alliance Holdings Corp., Vertellus Specialties Inc. and Zebra Technologies Corp. There are about 67 issuers in this portfolio.

Some of the names in the $159 million portfolio are Amneal Pharmaceuticals LLC, Brickman Group Ltd. LLC, Davita Inc., Hub International, Michaels Stores Inc., Renaissance Learning Inc., Southern Graphics Inc. and Verint Systems Inc. There are about 69 issuers in this BWIC.

A few names in the $147 million BWIC are Bass Pro Group LLC, Charter Communications, Hostess Brands LLC, Moneygram International Inc., Rovi Solutions Corp. and West Corp. There are about 89 issuers in this BWIC, traders added.

INC Research reworked

Back in the primary market, INC Research reduced its seven-year covenant-light term loan B to $1.6 billion from $1.85 billion, added a 25 bps pricing step-down at 3 times secured leverage and tightened the original issue discount to 99.875 from 99.75, according to a market source.

Opening pricing on the term loan remained at Libor plus 225 bps with a 0% Libor floor, and the debt still has 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 90 and the full spread thereafter.

With the term loan B upsizing, the company reduced its five-year term loan A to $1 billion from $750 million, the source said.

The company’s $3.1 billion of credit facilities (Ba2/BB+) also include a $500 million five-year revolver.

Commitments were due at 5 p.m. ET on Monday, the source added.

Credit Suisse Securities (USA) LLC, ING, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., PNC and Wells Fargo Securities LLC are leading the deal, with Credit Suisse the left lead on the term loan B and ING the left lead on the revolver and term loan A.

INC Research refinancing

Proceeds from INC Research’s credit facilities will be used to refinance existing debt in connection with its all-stock merger with inVentiv Health Inc. The transaction values inVentiv at an enterprise value of around $4.6 billion, and the combined company at an enterprise value of about $7.4 billion.

At closing, INC Research shareholders are expected to own about 53% and inVentiv shareholders are expected to own about 47% of the combined company on a fully diluted basis. Advent International and Thomas H. Lee Partners, the current equal equity owners of inVentiv, will remain investors in the combined company.

Closing is expected in the second half of this year, subject to approval by INC Research shareholders, the satisfaction of regulatory requirements and other customary conditions.

INC Research is a Raleigh, N.C.-based contract research organization providing the full range of Phase I to Phase IV clinical development services for the biopharmaceutical and medical device industries. inVentiv is a Burlington, Mass.-based contract research organization and contract commercial organization.

Belmond updated

Belmond Interfin set pricing on its $400 million term loan B at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source remarked.

Furthermore, pricing on the company’s €179 million term loan B firmed at Euribor plus 300 bps, the low end of the Euribor plus 300 bps to 325 bps talk, and the issue price was changed to par from 99.5, the source said. This tranche still has a 0% floor and 101 soft call protection for six months.

The company’s roughly $700 million of senior secured credit facilities (B2/BB) also include a $100 million multi-currency revolver.

Recommitments for the U.S. term loan were due at 5 p.m. ET on Monday and for the euro loan at 5 p.m. UK time on Monday, the source added.

Barclays, Fifth Third and J.P. Morgan Securities LLC are leading the deal that will be used to refinance substantially all of the company’s existing debt.

Closing is expected on July 3.

Belmond is a London-based luxury hotel company and sophisticated adventure travel operator.

Vivid flexes lower

Vivid Seats trimmed pricing on its $525 million seven-year senior secured covenant-light term loan B to Libor plus 400 bps from talk of Libor plus 425 bps to 450 bps, moved the original issue discount to 99.25 from 99 and removed the MFN sunset, according to a market source.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $575 million of credit facilities (B2/B) also include a $50 million five-year revolver.

Final commitments are due at noon ET on Tuesday, the source said.

Barclays, Jefferies LLC, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by GTCR. Following the transaction, Vista Equity Partners will maintain an ownership stake in the company.

Closing is expected this quarter.

Pro forma first-lien leverage is 5 times and total net leverage is 6.6 times.

Vivid Seats is a Chicago-based secondary ticket marketplace for live sports, concerts and theater events.

Sterling sets changes

Sterling Talent Solutions tightened the issue price on its $155 million incremental first-lien term loan B (B2/B) due June 19, 2024 to par from 99.75 and the extension fee on its $492 million first-lien term loan B (B2/B) due June 19, 2024 to 12.5 bps from 25 bps, a market source said.

Also, the 101 soft call protection was revised to expire on Sept. 24 to match the existing roll off date, from initial talk of six months, the source added.

As before, pricing on all of the $647 million first-lien term loan B debt is Libor plus 425 bps with a 1% Libor floor.

Recommitments were due at the close of business on Monday.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets LLC and ING are leading the deal that will be used to amend and extend an existing $492 million first-lien term loan due 2022 priced at Libor plus 425 bps with a 1% Libor floor, to repay an outstanding revolver balance and to repay an existing $140 million second-lien term loan.

Sterling Talent Solutions is a Seattle-based provider of comprehensive employment and background screening services.

Klockner revises deal

Klockner Pentaplast downsized its U.S. dollar five-year covenant-light term loan B to €816 million equivalent from €855 million equivalent and raised pricing to Libor plus 425 bps from talk of Libor plus 350 bps to 375 bps, according to a market source.

Furthermore, the company downsized its euro five-year covenant-light term loan B to €692 million from €725 million and increased the spread to Euribor plus 475 bps from talk of Euribor plus 400 bps to 425 bps, the source said.

As before, the U.S. term loan B has a 1% Libor floor, the euro term loan B has a 0% floor, and both term loans have an original issue discount of 99 and 101 soft call protection for six months.

The company’s credit facilities also include a €150 million 4.5-year revolver priced at Euribor plus 300 bps with a 0% floor.

Commitments are due at noon ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC and Rabobank are leading the deal that will help refinance existing debt, fund the acquisition of Linpac Senior Holdings Ltd. and finance a distribution to the shareholders of the KP Group.

Klockner Pentaplast is a Montabaur, Germany-based manufacturer of rigid plastic film solutions.

Zayo launches repricing

Also in the primary market, Zayo Group launched with a call at 11:30 a.m. ET a $1,429,925,000 senior secured covenant-light term loan B-2 due Jan. 19, 2024 talked at Libor plus 225 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Consents/commitments are due at 5 p.m. ET on Wednesday, the source said.

Morgan Stanley Senior Funding Inc., Barclays, SunTrust Robinson Humphrey Inc., RBC Capital Markets, Citigroup Global Markets Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan B-2 due 2024 from Libor plus 250 bps with a 1% Libor floor.

Zayo is a Boulder, Colo.-based provider of communications infrastructure services.

Interface reveals talk

Interface Security Systems came out with talk of Libor plus 525 bps with a 1% Libor floor and an original issue discount of 99 on its $80 million revolver and $230 million term loan in connection with its afternoon lender meeting, a market source remarked.

The term loan has 101 soft call protection for one year and the revolver has a 50 bps unused fee, the source added.

Commitments are due on July 10.

Capital One is leading the $310 million of five-year credit facilities that will be used to refinance existing debt. The company has $225 million of notes that come due in January 2018.

Interface, a portfolio company of SunTx Capital Partners, is a St. Louis-based provider of cloud-based managed network services and security systems.

Power Products holds call

Power Products held a call at 4 p.m. ET to launch a repricing of its $269 million term loan (B1/B) talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Thursday, the source added.

RBC Capital Markets is leading the deal that will reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Power Products is a Menomonee Falls, Wis.-based manufacturer and supplier of electrical products for construction and maintenance, recreational marine and specialty vehicles, industrial power, and transportation.

NFP comes to market

NFP hosted a lender call at 11 a.m. ET on Monday, launching a fungible $240 million add-on covenant-light term loan B (B) due January 2024 talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.25, a market source said.

Commitments are due at noon ET on Wednesday, the source added.

Bank of America Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Jefferies LLC and KKR Capital Markets are leading the deal that will be used to redeem some notes and to fund acquisitions.

With the transaction, the company is seeking an amendment to its existing credit agreement for which lenders are being offered a 10 bps consent fee.

NFP is an insurance broker and consultant.

DexKo on deck

DexKo set a bank meeting for 10 a.m. ET in New York on Tuesday and for 1 p.m. GMT in London on Wednesday to launch new U.S. and euro credit facilities, according to a market source.

The facilities consist of a $150 million revolver (B2/B), a $570 million seven-year first-lien term loan (B2/B) that has 101 soft call protection for six months, a €357 million seven-year first-lien term loan (B2/B) that has 101 soft call protection for six months and a $250 million eight-year second-lien term loan (Caa1/CCC+) that has call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on July 11.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and Barclays are leading the deal that will help fund the buyout of the company by KPS Capital Partners LP. The company’s existing controlling shareholder, the Sterling Group LP, will continue to own a minority stake in the company following completion of the transaction.

Closing is expected around mid-year, subject to customary conditions and approvals.

DexKo is a Novi, Mich.-based supplier of highly engineered running gear technology, chassis assemblies and related components.

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