Klockner, Oasis, ProQuest, Ascend, PDC, Canam, Zayo, MKS, Horseshoe, Constellis break

By Sara Rosenberg

New York, June 29 – Klockner Pentaplast updated the size of its U.S. and euro term loan B tranches and extended the call protection, Oasis Outsourcing Holdings Inc. firmed pricing on its first-lien term loan at the low end of talk and ProQuest LLC finalized pricing on its term loan at the high end of talk while adjusting the Libor floor and call protection, and then all of these deals freed up for trading on Thursday.

Other deals to emerge in the secondary market during the session included Ascend Learning LLC, PDC Brands (Parfums Holding Co. Inc.), Canam Steel Corp. (Canaveral Holdings B Inc.), Zayo Group LLC, MKS Instruments Inc., Horseshoe Baltimore (CBAC Gaming LLC) and Constellis Holdings LLC.

Returning to the primary market, Exela Technologies lifted pricing on its term loan B for a second time, Genesys widened spreads on its U.S. and euro term loans, Venator Materials plc upsized its term loan, set pricing at the low end of guidance and tightened the issue price, and Jo-Ann Stores Inc. increased the size of its add-on term loan while firming the original issue discount at the wide side of talk.

Klockner tweaked

Klockner Pentaplast cut its dollar five-year covenant-light term loan B to $835 million from a revised amount of €816 million equivalent and an initial size of €855 million equivalent and set its euro five-year covenant-light term loan B size at €725 million, up from a revised amount of €692 million but in line with the initial size of €725 million, according to a market source.

Furthermore, the 101 soft call protection on the term loans was extended to one year from six months.

The U.S. term loan is priced at Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, and the euro term loan is priced at Euribor plus 475 bps with a 0% floor and a discount of 99.

On Monday, pricing on the U.S. term loan was increased from talk of Libor plus 350 bps to 375 bps and pricing on the euro term loan was raised from talk of Euribor plus 400 bps to 425 bps.

Klockner frees up

With final terms in place, Klockner Pentaplast’s U.S. term loan broke for trading and levels were quoted at 99 bid, 99½ offered, another market source added.

In addition to the term loans, the company’s credit facilities include a €150 million 4.5-year revolver priced at Euribor plus 300 bps with a 0% floor.

Credit Suisse Securities (USA) LLC and Rabobank are leading the deal that will be used to 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.

Oasis updated, trades

Oasis Outsourcing set the spread on its $325 million six-year first-lien term loan (B1/B) at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source said.

After pricing finalized, the first-lien term loan emerged in the secondary market and levels were quoted at par 1/8 bid, par 5/8 offered, a trader added.

RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and fund a small acquisition.

The company is also getting an $85 million seven-year second-lien term loan (Caa1/CCC+) placed by Stone Point Capital.

With the debt transaction, Oasis will be getting a substantial equity investment from Kelso & Co., who will be joining Stone Point Capital and management as investors in the company.

Oasis is a West Palm Beach, Fla.-based provider of comprehensive and cost-effective HR outsourcing services to small- and medium-sized businesses.

ProQuest modified, breaks

ProQuest set pricing on its $716 million first-lien term loan (B2/B) due October 2021 at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, changed the Libor floor to 1% from 0% and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan still has a par issue price.

Pro forma for a June 30 amortization payment the term loan will be sized at $714 million.

By late day, the loan began trading and levels were quoted at par ¼ bid, par ¾ offered, another source added.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan from Libor plus 425 bps with a 1% Libor floor.

Closing is expected on Aug. 1.

ProQuest is an Ann Arbor, Mich.-based provider of digital content and software as a service solutions primarily for the academic community.

Ascend tops OID

Another deal to hit the secondary market was Ascend Learning. Its $700 million seven-year covenant-light term loan was quoted at 99 7/8 bid, par 3/8 offered, according to a trader.

The term loan is priced at Libor plus 325 bps with a step-down to Libor plus 300 bps when consolidated first-lien net leverage is 3.6 times and a 1% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

On Wednesday, pricing on the term loan firmed at the low end of the Libor plus 325 bps to 350 bps talk and the step-down was added.

Ascend’s $825 million of credit facilities (B2/B+) also include a $125 million five-year revolver.

Barclays, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will help fund the buyout of the company by Blackstone and Canada Pension Plan Investment Board from Providence Equity Partners and Ontario Teachers’ Pension Plan.

Closing is expected on July 12, subject to customary conditions and regulatory approvals.

Ascend is a provider of educational content, software and analytics solutions.

PDC Brands breaks

PDC Brands’ credit facilities started trading, with the $540 million seven-year first-lien term loan B quoted at 99¼ bid, par offered and the $220 million eight-year second-lien term loan quoted at 97½ bid, 98½ offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 475 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

The second-lien loan is priced at Libor plus 875 bps with a 1% Libor floor and was issued at a discount of 97. This loan has hard call protection of 103 in year one, 102 in year two and 101 in year three.

On Wednesday, the first-lien term loan was upsized from $530 million, pricing was lifted from talk of Libor plus 425 bps to 450 bps, the discount was set at the wide end of the 99 to 99.5 talk and the call protection was extended from six months. Also, pricing on the second-lien term loan was raised from talk of Libor plus 800 bps to 825 bps, the discount was changed from 98.5 and the call protection was revised from 102 in year one and 101 in year two.

Other changes made to the deal included setting the MFN to 50 bps for life with no carve-outs from 75 bps for 12 months with certain carve-outs, adjusting the accordion and increasing the excess cash flow sweep.

PDC being acquired

Proceeds from PDC’s credit facilities will be used to help fund its buyout by CVC Capital Partners from Yellow Wood Partners and to refinance existing debt. Funds from the recent first-lien term loan upsizing will cover the wider original issue discount.

Nomura, Jefferies LLC and Macquarie Capital (USA) Inc. are leading the $825 million of credit facilities, which also include a $65 million five-year revolver. Nomura is left lead on the revolver and term loan B while Jefferies is left lead on the second-lien loan.

Closing is subject to approval by the relevant competition authorities.

PDC is a Stamford, Conn.-based beauty and personal care products company.

Canam starts trading

Canam Steel’s $320 million seven-year covenant-light first-lien term loan B (B3/B) freed to trade too, with levels quoted at 97½ bid, 98½ offered, according to a trader.

Pricing on the term loan is Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 97. The term loan has hard call protection of 102 in year one and 101 in year two.

On Wednesday, the term loan was upsized from $310 million, the spread widened from Libor plus 525 bps, the discount was changed from 98.5, the call protection was modified from a 101 soft call for six months, the excess cash flow sweep was increased to 75% with step-downs from 50%, the incremental basket was reduced to $65 million and the grower was removed, and under EBITDA add backs the run-rate cost savings were capped at 20% of consolidated EBITDA from uncapped previously.

Morgan Stanley Senior Funding Inc. and BMO Capital Markets Corp. are leading the deal that will fund the acquisition of Canam by American Industrial Partners, members of the Dutil family, Caisse de depot et placement du Quebec and Fonds de solidarite FTQ for a cash consideration of $12.30 per share, and due to the upsizing, cover the wider original issue discount.

Canam, a Quebec-based fabricator of steel components, expects to close on the loan on Friday.

Zayo levels surface

Zayo’s $1,429,925,000 senior secured covenant-light term loan B-2 due Jan. 19, 2024 broke as well, with levels quoted at par 1/8 bid, par 3/8 offered, a trader said.

Pricing on the loan is Libor plus 225 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

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 down from Libor plus 250 bps with a 1% Libor floor.

Closing is expected on July 20.

The company announced on Thursday that it plans to repay a portion of the term loan B-2 with proceeds from a $300 million add-on senior notes offering. Post paydown, the repriced term loan B-2 will be sized at $1,119,275,000.

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

MKS above par

MKS Instruments’ $575 million covenant-light term loan B due April 29, 2023 also freed to trade, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 225 bps with a step-down to Libor plus 200 bps when total leverage is less than 1.25 times and a 0.75% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

Barclays is leading the deal that will be used to reprice an existing term loan B from Libor plus 275 bps with a 0.75% Libor floor.

Closing is expected on July 6.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes.

Horseshoe frees to trade

Horseshoe Baltimore’s $300 million seven-year covenant-light term loan B was quoted at 99½ bid, par offered upon breaking for trading during the session, a market source said.

Pricing on the loan is Libor plus 400 bps with a step-down to Libor plus 375 bps at corporate ratings of B2/B with a stable outlook and a 0% Libor floor. The loan was sold at an original issue discount of 99 and has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from Libor plus 350 bps, the step-down was added, the call protection was extended from six months and MFN sunset was removed.

The company’s $315 million of senior secured credit facilities (B3/B) also include a $15 million five-year revolver.

Wells Fargo Securities LLC, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will refinance an existing credit facility and an existing furniture, fixtures and equipment financing facility.

CBAC, a joint venture between Caesars Growth Partners LLC and several other third parties, is the owner and operator of the Horseshoe Baltimore Casino in Baltimore.

Constellis hits secondary

Constellis Holdings’ $27.5 million incremental first-lien term loan (B2/B+) due April 2024 began trading, with levels seen at 99 bid, 99½ offered, a trader remarked.

The incremental term loan is priced at Libor plus 500 bps with a 1% Libor floor and has 101 soft call protection through April 2018, all of which matches the existing term loan.

On Wednesday, the discount on the incremental loan was tightened from talk in the range of 98 to 98.5.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a tuck-in acquisition.

Constellis is a Reston, Va.-based provider of operational support and risk management services to government and commercial clients.

Exela flexes again

Back in the primary market, Exela raised pricing on its $350 million six-year term loan B to Libor plus 750 bps from revised talk of Libor plus 700 bps and initial talk of Libor plus 550 bps, increased amortization to 2.5% in years one and two and 5% per annum thereafter from 1% per annum, and removed the MFN sunset, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year.

On Tuesday, the term loan was downsized from $525 million, the discount widened from 99 and the call protection was extended from six months.

The company’s $450 million of senior secured credit facilities (B3/B) also include a $100 million revolver.

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

Exela lead banks

RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Natixis Securities Americas LLC and KKR Capital Markets LLC are leading Exela’s credit facilities.

Proceeds will be used with $1 billion of secured notes due 2023, cash from Quinpario Acquisition Corp. 2, rollover equity and cash on hand at closing to help fund the creation of the company through the merger of Quinpario, SourceHOV LLC and Novitex Holdings Inc. in a transaction valued at about $2.8 billion.

Upon downsizing the term loan B, the company upsized its secured notes offering from $525 million and eliminated plans to issue $300 million in unsecured notes.

Closing is expected this quarter, subject to customary conditions, regulatory approvals, receipt of approvals from Quinpario stockholders and receipt of proceeds from debt and equity financing.

Quinpario is a St. Louis-based special purpose acquisition company. SourceHOV, majority owned by HandsOn Global Management LLC, is an Irving, Texas-based provider of Transaction Processing Solutions and Enterprise Information Management solutions. Novitex is a West Stamford, Conn.-based provider of technology-driven managed services that is owned by Apollo Global Management LLC.

Genesys revises deal

Genesys increased pricing on its $1,573,000,000 term loan B and its €528 million term loan B to Libor/Euribor plus 375 bps from talk of Libor/Euribor plus 325 bps to 350 bps, and left the 0% floor, par issue price and 101 soft call protection for six months intact, a market source remarked.

Commitments from U.S. lenders were due at 4 p.m. ET on Thursday and commitments from European investors are due at 7 a.m. ET on Friday, the source added.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Citigroup Global Markets Inc. and RBC Capital Markets LLC are leading the deal that will be used to reprice existing U.S. and euro term loans down from Libor/Euribor plus 400 bps with a 1% floor.

Genesys is a Daly City, Calif.-based provider of omnichannel customer experience and contact center solutions.

Venator reworked

Venator Materials raised its term loan B to $375 million from $350 million, firmed pricing at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and moved the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the spinoff of the company from Huntsman Corp.

The company is also getting $375 million of bonds for the transaction. This offering was upsized from $350 million as well.

Venator is a manufacturer and marketer of chemical products comprising a range of pigments and additives to color and protect buildings and reduce energy consumption.

Jo-Ann sets changes

Jo-Ann Stores upsized its fungible add-on term loan due October 2023 to $180 million from $100 million and firmed the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source said.

The add-on term loan is priced at Libor plus 500 bps with a 1% Libor floor, in line with existing term loan pricing.

Bank of America Merrill Lynch is leading the deal that will be used to repay opco notes.

Jo-Ann Stores is a Hudson, Ohio-based specialty retailer of fabrics and crafts.

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