Pomeroy breaks; MSHC tweaks deal; WireCo, Sterling Talent, Waste Industries launch deals

By Sara Rosenberg

New York, July 13 – Pomeroy Group’s credit facility made its way into the secondary market on Wednesday afternoon, with the first-lien term loan bid right around its original issue discount.

Meanwhile, in the primary market, MSHC Inc. (Service Logic) added a leverage-based pricing step-down to its term loan debt, and WireCo WorldGroup Inc., Sterling Talent Solutions and Waste Industries USA Inc. disclosed price talk with launch.

Additionally, Revlon Consumer Products Corp. came out with timing on the launch of its credit facility and Zayo Group LLC surfaced with repricing plans.

Pomeroy starts trading

Pomeroy Group’s credit facility freed to trade on Wednesday, with the $240 million 5.5-year first-lien term loan quoted at 97 bid, 97½ offered, according to a market source.

Pricing on the term loan is Libor plus 600 basis points with a 1% Libor floor, and it was sold at an original issue discount of 97. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan was increased from Libor plus 550 bps, and the discount firmed at the wide end of the 97 to 98 talk.

The company’s $280 million credit facility (B2/B) also includes a $40 million revolver.

Natixis is leading the deal that is being used with a privately placed $75 million second-lien term loan to fund the merger of Pomeroy and Tolt Solutions. As part of the transaction, Clearlake Capital Group LP agreed to acquire Pomeroy and simultaneously back the combination of the two companies.

First-lien leverage is 3.7 times and total leverage is 4.8 times.

Pomeroy Group is a provider of IT infrastructure solutions and managed services.

MSHC add step

Switching to the primary market, MSHC added to its $103.4 million term loan and $51.4 million delayed-draw term loan a step-down in pricing to Libor plus 475 bps when first-lien leverage falls below 3.5x, a market source remarked.

Initial pricing on the term loans was left in line with earlier talk at Libor plus 500 bps with a 1% Libor floor, and, as before, the debt has an original issue discount of 99 and 101 soft call protection for six months.

The delayed-draw term loan is still available for 18 months, with a 1.5% unused fee during that time.

The company’s $164.8 million five-year senior credit facility also includes a $10 million revolver.

Antares Capital is leading the deal that will be used with about $15 million of pre-placed mezzanine financing to refinance existing debt and fund add-on acquisitions.

Allocations are expected on Monday and closing is targeted for Tuesday, the source added.

MSHC, a portfolio company of Sterling Investment Partners, is a Denver-based heating, ventilation and air conditioning service provider.

WireCo releases talk

WireCo held its bank meeting on Wednesday morning, launching its $410 million senior secured seven-year term loan B (B2/B+) with talk of Libor plus 575 bps to 600 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on July 22, the source said.

The company’s $510 million credit facility also includes a $100 million ABL revolver.

Goldman Sachs & Co. and Scotiabank are leading the deal that will refinance the company’s capital structure and extend its debt maturities in connection with Onex Corp.’s purchase of a majority interest in WireCo.

Closing is expected later this year, subject to regulatory approval and customary conditions.

Funds managed by Paine & Partners LLC, which acquired WireCo in 2007, will maintain a significant minority stake.

WireCo is a Prairie Village, Kan.-based manufacturer of wire rope, synthetic rope, electromechanical cable and highly engineered cable structures.

Sterling guidance emerges

Sterling Talent Solutions released original issue discount talk in the 98.5 area, plus or minus 0.25, on its $50 million add-on first-lien term loan (B1/B) due June 19, 2022 that launched with a lender call in the morning, a market source said.

Pricing on the add-on term loan is Libor plus 475 bps with a 1% Libor floor, and the debt has 101 soft call protection for six months.

Commitments are due at noon ET on Tuesday, the source added.

Goldman Sachs & Co. and KeyBanc Capital Markets are leading the deal that will be used to repay existing revolver borrowings.

Sterling Talent Solutions is a Seattle-based provider of background screening solutions.

Waste Industries holds call

Waste Industries hosted a lender call on Wednesday, launching a repricing of its $691 million term loan due February 2020 with talk of Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Tuesday, the source said.

Bank of America Merrill Lynch is leading the deal.

The term loan was originally done last year at pricing of Libor plus 325 bps with a 1% Libor floor.

Waste Industries is a Raleigh, N.C.-based solid waste management company.

Cast & Crew sets deadline

Cast & Crew Entertainment Services launched its fungible $80 million add-on first-lien term loan with an afternoon call, and lenders were asked to get commitments in by July 21, a market source remarked.

Price talk on the add-on term loan is not yet available, the source added.

RBC Capital Markets is leading the deal that will be used to help fund the acquisition of CAPS Payroll, a Culver City, Calif.-based technology-driven payroll services company serving film and TV studios, commercial production companies, as well as venues, music tours and live events, from Uni-World Capital.

Other funds for the transaction will come from $50 million of privately placed second-lien notes due 2024.

Cast & Crew, a Silver Lake portfolio company, is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry.

Revlon on deck

Revlon set a bank meeting for 10 a.m. ET in New York on Thursday to launch its previously announced $2.2 billion senior secured credit facility that is split between a $1.8 billion term loan B and a $400 million asset-based revolver, according to a market source.

Citigroup Global Markets Inc. and Bank of America Merrill Lynch are leading the deal.

Proceeds will be used to help fund the acquisition of Elizabeth Arden Inc. for $14.00 per share in cash, representing an enterprise value of around $870 million, to refinance Elizabeth Arden’s existing debt and to refinance Revlon’s existing term loan and revolver.

Other funds for the transaction are expected to come from a private placement of $400 million of senior unsecured notes, which is backed by a commitment for an up to $400 million senior unsecured bridge loan.

Closing is expected by year-end, subject to approval by Elizabeth Arden’s shareholders, regulatory clearances and customary conditions.

New York-based Revlon and Pembroke Pines, Fla.-based Elizabeth Arden are beauty companies.

Zayo readies repricing

Zayo Group scheduled a lender call for Thursday to launch a repricing of its existing $361 million term loan B-2 from Libor plus 350 bps with a 1% Libor floor, a market source said.

Barclays is the bookrunner on the deal, and Morgan Stanley Senior Funding Inc. is the administrative agent.

Zayo is a Boulder, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

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