Post Holdings frees to trade; ViaWest, Coyote Logistics, National Veterinary revise deals

By Sara Rosenberg

New York, March 23 – Post Holdings Inc.’s incremental term loan B surfaced in the secondary market during Monday’s market hours with levels quoted above its original issue discount.

Meanwhile in the primary, ViaWest increased the size of its credit facility and lowered pricing on the term loan B tranche, and Coyote Logistics LLC trimmed the spread on its term loan, firmed the original issue discount at the tight end of guidance and extended the soft call protection.

Also, National Veterinary Associates (NVA Holdings Inc.) upsized its add-on term loan, Allison Transmission Inc. released price talk on its term loan B-4 with launch, and Longview Power LLC and Natel EMS joined this week’s new deal calendar.

Post Holdings breaks

Post Holdings’ fungible $700 million incremental secured term loan B (Ba2) due June 2, 2021 began trading on Monday with levels seen at 99 7/8 bid, par 1/8 offered, according to a trader.

Pricing on the incremental term loan is Libor plus 300 basis points with a 0.75% Libor floor, in line with the company’s existing $881 million term loan B, and the new debt was sold at an original issue discount of 99½. The loan has 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

During syndication, the discount on the incremental term loan tightened from 99.

Credit Suisse Securities (USA) LLC and Barclays are leading the deal.

Post buying MOM

Proceeds from Post’s incremental term loan, an already completed common stock sale and cash on hand will be used to fund the purchase of MOM Brands Co. for $1.05 billion in cash and the issuance of about 2.45 million shares of Post common stock to the current owners of MOM Brands.

Closing is expected by the third quarter, subject to customary conditions.

Post is a St. Louis-based consumer packaged goods holding company operating in the center-of-the-store, active nutrition, refrigerated and private label food categories. MOM Brands is a Lakeville, Minn.-based cereal company.

ViaWest reworks deal

Moving to the primary market, ViaWest lifted its seven-year term loan B to $395 million from $375 million and cut the spread to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, while keeping the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, a market source remarked.

Furthermore, the five-year revolver was upsized to $85 million from $75 million, the source continued.

Recommitments are due at 5 p.m. ET on Wednesday.

TD Securities (USA) LLC and RBC Capital Markets are the leading the now $480 million senior secured credit facility that will be used to refinance existing debt.

ViaWest is a Greenwood Village, Colo.-based IT Infrastructure company.

Coyote changes emerge

Coyote Logistics cut pricing on its $360 million seven-year term loan (B2/B-) to Libor plus 525 bps from Libor plus 550 bps, set the original issue discount at 99, the tight end of the 98½ to 99 talk, and pushed out the 101 soft call protection to one year from six months, according to market sources.

As before, the term still has a 1% Libor floor.

Recommitments were due at 5 p.m. ET on Monday, sources said.

Goldman Sachs Bank USA, Wells Fargo Securities LLC and ING Capital Markets are leading the deal that will be used to help refinance existing debt and fund a dividend.

Coyote Logistics is a Chicago-based freight broker.

NVA tweaks size

National Veterinary Associates increased its fungible add-on first-lien term loan to $80 million from $60 million and left pricing at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99½, a market source said.

Bank of America Merrill Lynch, Jefferies Finance LLC and Nomura are leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

National Veterinary Associates is an Agoura Hills, Calif.-based owner of independent freestanding veterinary hospitals.

Allison discloses talk

Also in the primary, Allison Transmission held its call on Monday, launching its $470 million senior secured first-lien term loan B-4 (Ba2/BB+/BB) due Aug. 23, 2019 with talk of Libor plus 275 bps to 300 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on March 30 and closing is targeted for April 7, the source said.

Citigroup Global Markets Inc., Barclays, Fifth Third Bank, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Goldman Sachs Bank USA, BMO Capital Markets, Mitsubishi UFJ and Sumitomo Mitsui are leading the deal that will be used to fund a tender offer for the company’s 7 1/8% senior notes due 2019.

The tender offer is scheduled to expire at 11:59 p.m. ET on April 14.

Allison Transmission is an Indianapolis-based automatic transmission company.

Longview readies launch

Longview Power set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $275 million first-lien credit facility, according to a market source.

The facility consists of a $25 million revolver and a $250 million term loan B, the source said.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets are leading the exit financing deal that will be used to provide for distributions under the company’s reorganization plan, to complete repairs to the Longview Power Facility and for working capital.

Longview Power is a Maidsville, W.Va.-based integrated power generation enterprise.

Natel EMS on deck

Natel EMS scheduled a bank meeting for 1 p.m. ET on Tuesday to launch a $280 million five-year term loan, a market source said.

Goldman Sachs Bank USA and GE Capital Markets are leading the deal that will be used to help fund the acquisition of OnCore Manufacturing from Charlesbank.

Leverage is 2.6 times, the source added.

Natel is a Chatsworth, Calif.-based manufacturer of electronic components. OnCore Manufacturing is a Springfield, Mass.-based provider of high-complexity electronics manufacturing services.

Wabash closes

In other news, Wabash National Corp. completed its $192.8 million senior secured term loan (Ba3/BB) due 2022, a news release said.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

During syndication, the spread on the term loan was reduced from Libor plus 350 bps.

Wells Fargo Securities LLC and Morgan Stanley Senior Funding Inc. led the deal that was used to repay an existing term loan due May 8, 2019.

Wabash is a Lafayette, Ind.-based diversified industrial manufacturer and a producer of semi-trailers and liquid transportation systems.

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