Buckeye, Arnott break; Merlin, Hard Rock, Cooper’s Hawk, Infoblox loan updates surface

By Sara Rosenberg

New York, Oct. 16 – Buckeye Partners LP lowered pricing on its term loan before freeing up for trading on Wednesday above its original issue discount, and Arnott’s (Snacking Investments BidCo Pty Ltd.) term loan emerged in the secondary market too.

In more happenings, Merlin Entertainments plc firmed spreads on its U.S. and euro term loans at the low end of guidance and tightened the original issue discount on the debt, and Hard Rock Northern Indiana (Spectacle Gary Holdings LLC) upsized its term loan and sweetened the spread, Libor floor, issue price and call protection.

Also, Cooper’s Hawk downsized its term loan and widened the spread and issue price, and Infoblox Inc. set the original issue discount on its add-on first-lien term loan at the tight end of talk.

Additionally, Cole-Parmer Instrument Co. (Curie Merger Sub LLC) and MediaOcean LLC released price talk with launch, and National Mentor, Service Properties Trust (Highway Ventures Borrower LLC), Ascensus Inc. and Compassus LLC joined this week’s primary calendar.

Buckeye flexes

Buckeye Partners timed the spread on its $2.25 billion seven-year covenant-lite first-lien term loan to Libor plus 275 basis points from talk in the range of Libor plus 300 bps to 325 bps, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

Previously in syndication, the term loan was upsized from $1.75 billion as plans for a $500 million secured notes offering were terminated.

The company’s $2.85 billion of senior secured credit facilities also include a $600 million revolver.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BofA Securities, Inc., CIBC, MUFG, National Australia Bank, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are leading the deal.

Buckeye frees up

Commitments for Buckeye’s term loan were due at noon ET on Wednesday. The loan broke for trading later in the day at 99¾ bid, par ¼ offered and then moved up to par bid, par ¾ offered, a trader added.

Proceeds will be used with $4.255 billion of equity to fund the acquisition of the company by IFM Investors for $41.50 per common unit. The all-cash transaction is valued at a $10.3 billion enterprise value and a $6.5 billion equity value.

Closing is expected in the fourth quarter, subject to approval of a majority of the Buckeye unitholders, regulatory approvals and other customary conditions.

Buckeye is a Houston-based owner and operator of integrated midstream assets.

Arnott hits secondary

Arnott’s $400 million term loan began trading as well, with levels quoted by traders at 99½ bid, par offered.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has and 101 soft call protection for six months.

During syndication, the term loan was downsized from $500 million, the spread finalized at the low end of the Libor plus 400 bps to 425 bps talk and the Libor floor was revised from 0%.

The company’s credit facilities (B) also include a $100 million revolver, an A$450 million term loan, which was upsized from A$300 million with the U.S. term loan downsizing, and an A$90 million delayed-draw term loan.

KKR Capital Markets, Jefferies LLC and Barclays are leading the deal, with KKR left on the U.S. loan and Jefferies left on the Australian loan.

The credit facilities will be used to help fund the buyout of the Sydney, Australia-based food company by KKR from Campbell Soup Co. for $2.2 billion in cash.

Merlin tweaked

Back in the primary market, Merlin Entertainments set pricing on its £941 million equivalent U.S. seven-year covenant-lite term loan B at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, and on its £1,252,000,000 equivalent euro seven-year covenant-lite term loan B at Euribor plus 300 bps, the low end of the Euribor plus 300 bps to 325 bps talk, and changed the original issue discount on both tranches to 99.75 from 99.5, a market source said.

As before, the term loans have a 0% floor and 101 soft call protection for six months.

The company is also getting a $172.5 million delayed-draw term loan.

BofA Securities Inc., Deutsche Bank Securities Inc., Barclays, HSBC, Mizuho, UniCredit, SMBC, Bank of China and Santander are leading the deal, with BofA left on the U.S. loan and Deutsche left on the euro loan.

The term loans will be used with £635 million equivalent of notes to help fund the buyout of the company by Kirkbi, Blackstone and Canada Pension Plan Investment Board.

Merlin is a Poole, England-based operator of hotels and holiday attractions.

Hard Rock reworked

Hard Rock Northern Indiana raised its six-year first-lien term loan (B3/B-) to $370 million from $350 million, lifted pricing to Libor plus 900 bps from talk in the range of Libor plus 800 bps to 825 bps, revised the Libor floor to 2% from 1% and adjusted the original issue discount to 97 from 98, a market source remarked.

Furthermore, the call protection was modified to non-callable for 18 months, then at 109, 106 and 103 from non-callable for 18 months, then at 102 and 101.

As before, $25 million of the term loan is delayed-draw.

Recommitments are due at noon ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to fund the construction of the Hard Rock Northern Indiana, a land-based casino in Gary, Ind.

Cooper’s Hawk revised

Cooper’s Hawk trimmed its term loan to $200 million from $225 million, increased pricing to Libor plus 650 bps from talk in the range of Libor plus 575 bps to 600 bps and modified the original issue discount to 96 from 99, according to a market source.

The term loan still has a 0% Libor floor.

BofA Securities, Inc., Jefferies LLC and RBC Capital Markets are leading the deal that will be used to help refinance a bridge note.

Cooper’s Hawk, an Ares Management portfolio company, is an experiential restaurant concept and wine club.

Infoblox firms

Infoblox finalized the original issue discount on its $175 million add-on first-lien term loan (B2//B+) at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

The add-on term loan is priced at Libor plus 450 bps with a 0% Libor floor.

BofA Securities Inc., RBC Capital Markets, Barclays, Deutsche Bank Securities Inc. and Macquarie Capital are leading the deal that will be used to refinance an existing second-lien term loan.

Infoblox is a Santa Clara, Calif.-based provider of Actionable Network Intelligence to enterprise, government and service provider customers.

Cole-Parmer guidance

Cole-Parmer Instrument held its bank meeting on Wednesday and announced talk on its $770 million seven-year first-lien term loan (B2/B) at Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Oct. 29, the source said.

The company’s $1.09 billion equivalent of credit facilities also include a $75 million revolver (B2/B) and a $245 million equivalent privately placed eight-year second-lien term loan.

Jefferies LLC is the left lead on the deal that will be used to help fund the acquisition of a majority stake in Cole-Parmer by GTCR. Golden Gate Capital and management will retain a significant minority stake in the company.

Closing is expected in the fourth quarter.

Cole-Parmer is a Vernon Hills, Ill.-based provider of fluid handling, test & measurement, environmental and biosciences instrumentation and associated consumables.

MediaOcean sets talk

MediaOcean came out with talk of Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $693 million term loan that launched with an afternoon bank meeting, a market source said.

The company’s $743 million of senior secured credit facilities (B2/B) also include a $50 million revolver.

Commitments are due on Oct. 29, the source added.

Macquarie Capital (USA) Inc., BNP Paribas Securities Corp., Golub Capital and Jefferies LLC are leading the deal, which will be used to refinance existing debt and pay a dividend to the company’s sponsor.

MediaOcean is a New York-based software company for the advertising sector.

National Mentor on deck

National Mentor set a lender call for 11 a.m. ET on Thursday to launch a fungible $100 million incremental first-lien term loan, a market source remarked.

Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used to fund a distribution to existing equity holders.

National Mentor, formerly known as Civitas Solutions Inc., is a Boston-based provider of home- and community-based health and human services for individuals with intellectual, developmental, physical or behavioral disabilities and other special needs.

Service Properties plans loan

Service Properties Trust scheduled a lender call for 1 p.m. ET on Thursday to launch a new loan transaction, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

Service Properties Trust is a Newton, Mass.-based real estate investment trust that owns a portfolio of hotels and net lease service and necessity-based retail properties.

Ascensus joins calendar

Ascensus emerged with plans to hold a lender call at 1 p.m. ET on Thursday to launch a loan transaction, a market source said.

Credit Suisse Securities (USA) LLC is leading the deal.

Ascensus is a Dresher, Pa.-based service provider of retirement and college savings plans.

Compassus coming soon

Compassus set a bank meeting for Thursday to launch a $400 million term loan B (B3), according to a market source.

BofA Securities Inc. is the left lead on the deal that will be used with equity to fund the acquisition of the company by TowerBrook Capital Partners and Ascension.

Compassus is a Nashville, Tenn.-based post-acute care company.

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