LanguageLine breaks; KIK first-lien bid dips with buyout; Hamilton Lane amends issue price

By Sara Rosenberg

New York, July 1 – LanguageLine Solutions’ (Language Line LLC) credit facility hit the secondary market on Wednesday, and KIK Custom Products Inc.’s first-lien term loan was bid a little lower following news of an upcoming change to the company’s ownership.

Meanwhile, in the primary market, Hamilton Lane Advisors LLC tightened the original issue discount on its term loan, and Chelsea Petroleum Products I LLC joined next week’s primary calendar.

LanguageLine frees up

LanguageLine’s credit facility broke for trading on Wednesday, with the $480 million six-year first-lien term loan (B1/B) quoted at 99½ bid, 100½ offered and the $160 million seven-year second-lien term loan (Caa1/CCC+) quoted at 98¾ bid, 99¾ offered, a source said.

Pricing on the first-lien term loan is Libor plus 550 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 975 bps with a 1% Libor floor, and it was issued at a discount of 98.5. This debt has call protection of 102 in year one and 101 in year two.

The company’s $690 million credit facility also includes a $50 million revolver (B1/B).

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to repay existing debt.

LanguageLine is a Monterey, Calif.-based provider of interpretation and translation services.

KIK bid softens

KIK Custom Products’ first-lien term loan experienced a weakening on the bid side in the secondary market after it was announced that Centerbridge Partners LP is buying the company from CI Capital Partners, according to a market source.

The first-lien term loan was quoted at par bid, 100¾ offered, versus levels of 100¼ bid, 100¾ offered on Tuesday, the source said.

As for the company’s second-lien term loan, levels were unchanged at par bid, 101 offered.

Closing on the buyout is subject to customary conditions and approvals.

To help fund the transaction, the company plans on getting new debt financing led by Barclays and BMO Capital Markets.

KIK is a Toronto-based developer and marketer of pool and spa treatment products and a manufacturer of household and personal care products.

Hamilton Lane tweaks OID

Switching to the primary market, Hamilton Lane Advisors changed the original issue discount on its $260 million seven-year senior secured term loan B to 99.75 from talk of 99 to 99.5, while keeping pricing at Libor plus 350 bps with a 0.75% Libor floor, a source remarked.

As before, the term loan has 101 soft call protection for six months.

Recommitments were due as soon as possible and the debt is expected to allocate on Thursday.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the buyback of equity interests, to refinance existing debt, to fund a distribution to equity holders and for general corporate purposes.

Closing is expected on July 9.

Hamilton Lane is a financial institution that provides discretionary and non-discretionary private equity asset management services.

Chelsea on deck

Chelsea Petroleum set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $1,125,000,000 senior secured credit facility, according to a market source.

Included in the facility is a $700 million ABL revolver and a $425 million term loan B, the source said.

Morgan Stanley Senior Funding Inc. and BMO Capital Markets are leading the deal, with Morgan Stanley the left lead arranger on the term loan B and BMO the left lead arranger on the revolver.

Proceeds will be used to help fund the buyout of the midstream oil and gas company by ArcLight Capital Partners from Cumberland Farms.

Protection 1 closes

In other news, the buyout of Protection 1 (Apollo Security Services Borrower LLC) by Apollo Global Management LLC and combination with ASG Security, which was also purchased by Apollo, has been completed, a news release said.

For the transaction, Protection 1 got a new $1.45 billion credit facility that includes a $95 million revolver (B1/B), a $1,095,000,000 six-year first-lien covenant-light term loan (B1/B) and a $260 million seven-year second-lien covenant-light term loan (Caa1/CCC+).

Pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 875 bps with a 1% Libor floor, and was issued at 98.5. This loan has call protection of 102 in year one and 101 in year two.

Protection 1 lead banks

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities, Jefferies Finance LLC, RBC Capital Markets and Goldman Sachs Bank USA led Protection 1’s credit facility.

During syndication, the first-lien term loan was upsized from $1,055,000,000 and the discount was moved from 99, and the second-lien loan was downsized from $300 million and the discount was tightened from 98.

Protection 1 is an Illinois-based business and home security company. ASG Security is a Beltsville, Md.-based electronic security and monitoring company.

Univar completes deal

Univar Inc. closed on its $2.05 billion seven-year covenant-light term loan and €250 million seven-year covenant-light term loan, according to a news release.

Pricing on the term loan debt is Libor/Euribor plus 325 bps with a 1% floor, and the debt was issued at a discount of 99.5. There is 101 soft call protection for six months.

During syndication, pricing on the U.S. term loan firmed at the low end of the Libor plus 325 bps to 350 bps talk, and the MFN sunset provision was removed.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, HSBC Securities (USA) Inc., SunTrust Robinson Humphrey Inc., Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC led the deal that was used to refinance existing bank debt.

Univar is a Downers Grove, Ill.-based distributor of industrial and specialty chemicals.

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