Belcan breaks; Builders FirstSource, EagleView, Consolidated Aerospace, Ryan ready deals

By Sara Rosenberg

New York, July 10 – Belcan Corp.’s (Propulsion Acquisition LLC) credit facility freed up for trading on Friday afternoon, and AmeriLife Group’s first-lien term loan held steady during its second day in the secondary market.

Meanwhile, in the primary market, Builders FirstSource Inc. set a bank meeting for its credit facility, and EagleView Technology Corp., Consolidated Aerospace Manufacturing LLC and Ryan LLC surfaced with new deal plans.

Belcan frees up

Belcan’s credit facility began trading on Friday, with the $190 million six-year first-lien term loan (B3/B) quoted at 97 bid, 98 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 600 basis points with a 1% Libor floor, and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

During syndication, the spread on the term loan was increased from Libor plus 550 bps, the discount was modified from 99, the call protection was extended from six months, the excess cash flow sweep was sweetened to 75% from 50% and the maturity was shortened from seven years.

The company’s $225 million credit facility also includes a $35 million ABL revolver.

Credit Suisse Securities (USA) LLC and PNC Capital Markets are leading the term loan. PNC is sole lead on the revolver.

Proceeds will be used to fund the buyout of the company by AE Industrial Partners LLC.

Belcan is a Cincinnati-based engineering services and technical staffing provider in the aerospace, power generation and industrial markets.

AmeriLife holds firm

AmeriLife’s $177.5 million seven-year first-lien term B (B2/B+) was quoted at 99˝ bid, par offered on Friday, after breaking for trading in that same context on Thursday, a market source 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. There is 101 soft call protection for six months.

The company’s $280 million credit facility also includes a $30 million five-year revolver (B2/B+), and a $72.5 million 7.5-year second-lien term loan (Caa2/CCC+) priced at Libor plus 875 bps with a 1% Libor floor, and issued at a discount of 98. The second-lien loan has call protection of 102 in year one and 101 in year two.

During syndication, the spread on the first-lien term loan was lifted from Libor plus 425 bps, pricing on the second-lien term loan was raised from Libor plus 825 bps and the discount widened from 98.5, and the revolver was upsized from $25 million.

AmeriLife being acquired

Proceeds from AmeriLife’s credit facility will be used to help fund the buyout of the company by J.C. Flowers & Co. LLC from Reservoir Capital Group and Black Diamond Capital Partners.

SunTrust Robinson Humphrey Inc. is leading the deal.

Pro forma for the transaction, net leverage will be 3.99 times on a senior basis and 5.73 times total. The equity check is 39%.

Closing is expected in the second or third quarter, subject to regulatory approvals.

AmeriLife is a Clearwater, Fla.-based distributor of insurance services businesses focusing on health, fixed annuity and supplemental products for the senior market.

Builders timing surfaces

Over in the primary, Builders FirstSource nailed down timing on its previously announced $1.35 billion credit facility, with the deal scheduled to launch with a bank meeting at 2 p.m. ET in New York on Tuesday, a market source remarked.

The facility consists of an $800 million ABL revolver and a $550 million seven-year covenant-light term loan B.

The term loan B is talked with 101 soft call protection for six months, the source said. Price talk is not yet available.

In April, the company said in filings with the Securities and Exchange Commission that term loan B pricing is expected at Libor plus 450 bps with a 1% Libor floor and ABL revolver pricing is expected at Libor plus 150 bps.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and Keybanc Capital Markets are leading the deal.

Builders buying ProBuild

Proceeds from Builders FirstSource’s new credit facility will be used to help fund the acquisition of ProBuild Holdings LLC, a Denver-based supplier of lumber and building materials, for about $1.63 billion.

The company also plans to issue $750 million of senior notes and $100 million in new equity via a marketed follow-on offering for acquisition financing, rollover $350 million of existing Builders FirstSource senior secured notes and assume $304 million in existing lease finance obligations.

Pro forma net debt to adjusted EBITDA is 5.6 times.

Closing is expected in the second half of this year, subject to customary conditions and regulatory approvals.

Builders FirstSource is a Dallas-based supplier and manufacturer of structural and related building products for residential new construction.

EagleView coming soon

EagleView Technology set a bank meeting for 10 a.m. ET on Tuesday to launch a $360 million senior secured credit facility, according to a market source.

The facility consists of a $20 million revolver, a $240 million first-lien term loan and a $100 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc. and Nomura Securities International Inc. are leading the deal that will be used to help fund the buyout of the company by Vista Equity Partners.

EagleView is a Bothell, Wash.-based technology provider of aerial imagery, data analytics and GIS solutions.

Consolidated Aerospace on deck

Consolidated Aerospace plans to hold a bank meeting on Thursday to launch a $265 million credit facility, a market source remarked.

The facility consists of a $25 million five-year revolver, and a $240 million seven-year covenant-light term loan that has 101 soft call protection for six months, the source continued.

Citizens Bank is leading the deal.

Proceeds will be used to refinance existing debt.

Consolidated Aerospace is a manufacturer of components principally for the aerospace industry.

Ryan joins calendar

Ryan scheduled a bank meeting for 1 p.m. ET on Tuesday to launch a $300 million credit facility (B2), market sources said.

The facility consists of a $50 million revolver and a $250 million five-year term loan.

Early talk on the term loan is circulating at Libor plus 550 bps to 575 bps with a 1% Libor floor, a discount of 98.5 and 101 soft call protection for one year, sources remarked.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and add cash to the balance sheet.

Ryan is a Dallas-based provider of tax services.

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