Alvogen, Monitronics, CPM, Men’s Wearhouse break; Natel EMS, Pet Supplies updates emerge

By Sara Rosenberg

New York, April 2 – Alvogen’s upsized term loan freed up for trading on Thursday, with levels quoted above its original issue discount, and Monitronics International Inc., CPM Holdings Inc. and Men’s Wearhouse Inc. hit the secondary as well.

Switching to the primary, Natel EMS upsized its term loan and reworked the call protection, Pet Supplies Plus firmed the offer price on its term debt at the wide end of guidance, Longview Power LLC moved up the commitment deadline on its credit facility, and Leighton Services (LS Deco LLC) surfaced with new deal plans.

Alvogen tops OID

Alvogen’s $700 million seven-year senior secured term loan (B3/B) emerged in the secondary market on Thursday, with levels seen at par bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 500 basis points with a 1% Libor floor, and the debt was sold at an original issue discount of 99½. Included in the loan is 101 soft call protection for six months.

During syndication, the term loan was upsized from $675 million, and the discount tightened from 99.

Jefferies Finance LLC, Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Alvogen is a pharmaceutical company that produces generic drugs.

Monitronics frees up

Monitronics’ $550 million incremental seven-year term loan (Ba3/B) began trading too, with levels quoted at par bid, par 3/8 offered, a trader remarked.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading the loan, which was upsized recently from $350 million.

Proceeds will be used to repay revolver debt and some of the company’s term loan due in 2018. The amount of the term loan paydown was increased with the incremental term loan upsizing.

Monitronics is a Dallas-based home security alarm monitoring company.

CPM starts trading

CPM Holdings’ credit facility also broke, with levels on the $315 million seven-year term loan B quoted at 99½ bid, a trader said.

Pricing on the term loan B is Libor plus 500 bps with a step-down to Libor plus 475 bps at 2.5 times net first-lien leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for six months.

Recently, the term loan B was upsized from $295 million, and the step-down was added.

The company’s $345 million senior secured credit facility also includes a $30 million revolver.

Morgan Stanley Senior Funding Inc., Rabobank and Jefferies Finance are the joint lead arrangers on the deal, and joint bookrunners with ING Capital.

CPM recapitalizing

Proceeds from CPM’s first-lien credit facility will be used with a privately placed second-lien term loan to refinance existing debt and pay a distribution to shareholders.

Of the total term loan B upsizing amount, $15 million will add cash to the balance sheet, and $5 million will be applied to the dividend.

Closing is targeted for Tuesday.

CPM is a Waterloo, Iowa-based supplier of process equipment used for oilseed processing and animal feed production.

Men’s Wearhouse breaks

Another deal to free up was Men’s Wearhouse’s $400 million fixed-rate term loan due June 18, 2021, with levels seen at par ½ bid, according to a trader.

The loan is priced at 5%, was issued at par and is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the term loan was upsized from $300 million, pricing firmed at the low end of the 5% to 5¼% talk, and the offer price was tightened from 99¾.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance some of the term loan debt that was used last year for the acquisition of JoS. A Bank Clothiers Inc.

Men’s Wearhouse is a Houston-based specialty retailer of men’s apparel.

Natel modifies loan

Moving to the primary, Natel EMS raised its term loan to $300 million from $280 million and changed the soft call protection to 101 for one year from 102 in year one and 101 in year two, according to a market source.

As before, the loan is priced at Libor plus 575 bps with a 1% Libor floor and an original issue discount of 99.

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.

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

Pet Supplies updated

Pet Supplies Plus set the original issue discount on its $125 million six-year term loan B and $25 million delayed-draw term loan at 99, the wide end of the 99 to 99½ talk, and kept pricing at Libor plus 475 bps with a 1% Libor floor, a source said. The term loan B has 101 soft call protection for six months, and the delayed-draw term loan has a ticking fee of 1%.

The company’s $170 million credit facility, which allocated on Thursday, also includes a $20 million revolver.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing debt. The delayed-draw term loan, which has a two-year availability, is primarily for acquisitions.

Pet Supplies Plus is a Livonia, Mich.-based pet supplies store chain.

Longview tweaks deadline

Longview Power accelerated the commitment deadline on its $275 million senior secured credit facility (B2/BB-) to 2 p.m. ET on Monday from Wednesday, a market source said.

The facility consists of a $25 million five-year revolver and a $250 million six-year term loan B.

Talk on the term loan B is Libor plus 625 bps to 650 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year.

Morgan Stanley Senior Funding and KKR Capital Markets are leading the deal that will be used as exit financing 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.

Leighton coming soon

Leighton Services set bank meetings for 10 a.m. ET in New York on Wednesday, in Sydney, Australia, on April 13 and in Melbourne, Australia, on April 15 to launch a A$900 million-equivalent senior secured credit facility (Ba2), according to a market source.

The facility consists of a A$100 million five-year revolver and a A$800 million-equivalent seven-year covenant-light term loan B that includes U.S. and Australian dollar pieces, the source said.

Barclays, Credit Agricole, ANZ and Goldman Sachs are leading the deal.

Proceeds are being used to fund the recently completed formation of Leighton Services, a 50:50 investment partnership with Leighton Holdings and Apollo Global Management LLC for Leighton’s merged operations and maintenance services businesses, and to fund a letter-of-credit cash collateral facility.

Leighton Services, a provider of industrial and civil services to clients in Australia and New Zealand across telecom, roads, water, power, utilities and environmental sectors, has net first-lien and total leverage of 2 times, the source added.

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