Waste Industries frees up; Reynolds, Acrisure, Sterling Talent, Cast & Crew revise deals

By Sara Rosenberg

New York, July 20 – Waste Industries USA Inc. saw its repriced term loan make its way into the secondary market on Wednesday, with levels quoted above its original issue discount.

Meanwhile, in the primary market, Reynolds Group Holdings Inc. updated pricing on its U.S. and euro term loans and tightened original issue discounts, and Acrisure LLC upsized its add-on term loan and firmed the issue price at the tight side of guidance.

Also, Sterling Talent Solutions increased the size of its add-on term loan and modified the issue price, and Cast & Crew Payroll LLC made a small adjustment to the original issue discount on its add-on first-lien term loan and accelerated the commitment deadline.

In addition, Revlon Consumer Products Corp. revised the deadline on its term loan B and disclosed details on the ticking fee, and PrimeLine Utility Services LLC moved up the commitment deadline on its add-on term loan.

Furthermore, Broadcom Ltd. released price talk on its loan with launch, UFC came out with timing on the launch of its term loan B, and Safway Group Holding LLC, Vantage Specialty Chemicals and WCA Waste Corp. surfaced with new deal plans.

Waste Industries breaks

Waste Industries’ repriced $691 million term loan due February 2020 began trading on Wednesday, with levels quoted at 99 7/8 bid, 100¼ offered, a trader said.

Pricing on the loan is Libor plus 275 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

Through the repricing, the company is taking the rate on the term loan down from Libor plus 325 bps with a 1% Libor floor.

Bank of America Merrill Lynch is leading the deal.

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

Reynolds tweaked

Switching to the primary market, Reynolds Group firmed pricing on its $1,973,000,000 6.5-year term loan at Libor plus 325 bps and added a step-down if corporate ratings are B2/B or better, according to a market source. Talk on the loan at launch had been Libor plus 325 bps to 350 bps.

Also, the original issue discount on the U.S. term loan was modified to 99.75 from 99.5, the source said.

Regarding the company’s €250 million 6.5-year term loan, the spread finalized at Euribor plus 375 bps, the low end of the Euribor plus 375 bps to 400 bps talk, and the discount was changed to 99.75 from 99.

The U.S. term loan still has a 1% Libor floor, the euro term loan still has no floor, and both term loans still have 101 soft call protection for six months.

Commitments were due at 2 p.m. ET on Wednesday, the source added.

On Monday, the company had downsized its U.S. dollar term loan from $2,223,000,000 and replaced the funds with a $250 million 5 1/8% add-on senior secured notes offering that priced at 103.5 to yield 4.331%.

Reynolds lead banks

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading Reynolds Group’s term loans that will be used to refinance existing term loans.

Also, the company said in a news release last week that it is looking to resize its revolver as a single $400 million facility and extend the maturity to five years from closing.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

Acrisure upsizes

Acrisure lifted its add-on term loan to $295 million from $225 million by increasing the delayed-draw component to $215 million from $145 million and set the original issue discount at 98.5, the tight end of the 98 to 98.5 talk, according to a market source.

As before, pricing on the add-on loan is Libor plus 550 bps with a 1% Libor floor, and the debt has 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to fund acquisitions.

Acrisure is a Caledonia, Mich.-based retail insurance brokerage.

Sterling reworks add-on

Sterling Talent Solutions lifted its add-on first-lien term loan (B1/B) due June 19, 2022 to $60 million from $50 million and moved the original issue discount to 99 from the 98.5 area, according to a market source.

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

Recommitments were due at 5 p.m. ET on Wednesday, the source said.

Goldman Sachs & Co. and KeyBanc Capital Markets LLC 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.

Cast & Crew updates deal

Cast & Crew changed the original issue discount on its $80 million add-on first-lien term loan B (B2/B+) to 98.56 from 98.55 to ensure fungibility, and left pricing at Libor plus 400 bps with a 1% Libor floor, a source said.

As before, with the add-on, pricing on the company’s existing $270 million first-lien term loan B is increasing to Libor plus 400 bps with a 1% Libor floor from Libor plus 375 bps with a 1% Libor floor, and all of the debt is getting 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Wednesday, moved up from 5 p.m. ET on Thursday, the source continued. Revolver and first-lien term loan amendment signatures were also due at 5 p.m. ET on Wednesday.

RBC Capital Markets is leading the add-on loan that will be used with $50 million of privately placed second-lien notes due 2024 to fund the acquisition of CAPS Payroll from Uni-World Capital.

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. CAPS is a Culver City, Calif.-based technology-driven payroll services company serving the entertainment industry.

Revlon changes deadline

Revlon accelerated the commitment deadline on its $1.8 billion seven-year covenant-light term loan B (Ba3/B+) to 5 p.m. ET on Thursday from noon ET on Friday, a market source remarked.

Also, the ticking fee on the term loan B was outlined as half the spread from days 31 to 75 and the full spread thereafter. The ticking fee was always contemplated but the exact structure wasn’t disclosed until now, the source added.

The B loan is still talked at Libor plus 400 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $2.2 billion senior secured credit facility also includes a $400 million asset-based revolver.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc. and Barclays are leading the deal.

Revlon funding acquisition

Proceeds from Revlon’s credit facility will be used with $400 million of senior notes to finance the purchase of Elizabeth Arden Inc. for $14 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.

Assuming full realization of expected multi-year synergies and cost reductions of about $140 million, pro forma leverage is expected to be about 4.2 times net debt/adjusted EBITDA by the end of 2016.

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

Revlon is a New York-based beauty company. Elizabeth Arden is a Pembroke Pines, Fla.-based prestige beauty products.

PrimeLine shutting early

PrimeLine Utility Services accelerated the commitment deadline on its fungible $140 million add-on term loan to 5 p.m. ET on Thursday from Monday, a source said.

The add-on term loan is talked at Libor plus 550 bps with a 1% Libor floor, in line with existing term loan pricing, an original issue discount of 99 and 101 soft call protection for six months.

BNP Paribas Securities Corp. is leading the deal that will be used to fund acquisitions.

PrimeLine Utility Services is a Seattle-based provider of end-to-end infrastructure solutions to electric, gas and telecommunications customers.

Datapipe sets deadline

Datapipe Inc. launched on its afternoon call its $120 million in incremental bank debt and asked lenders for commitments by Aug. 2, according to a market source.

As previously reported, the incremental debt is split between a $5 million revolver (B1/B), a $90 million first-lien term loan (B1/B) talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and a $25 million second-lien term loan (Caa2/CCC+) talked at Libor plus 800 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

Jefferies Finance LLC is the lead on the deal that will be used to fund an acquisition.

In June, the company received lender approval on an amendment to its existing credit facility to allow for the acquisition, and, as part of the amendment, pricing on the existing first-lien term loan was lifted to Libor plus 475 bps from Libor plus 425 bps, and pricing on the existing second-lien term loan was increased to Libor plus 800 bps from Libor plus 750 bps.

Datapipe is a Jersey City, N.J.-based managed hosting and cloud services provider.

Broadcom holds call

Also in the primary market, Broadcom hosted a lender call at 2 p.m. ET on Wednesday to launch a $4.5 billion term loan B-3 due Feb. 1, 2023 talked at Libor plus 300 bps to 325 bps with no floor, a par issue price and 101 soft call protection for six months, according to a market source.

The company is also seeking an at least $2 billion add-on term loan A.

Commitments are due at noon ET on July 28, the source said.

Bank of America Merrill Lynch is leading the deal that will be used to refinance a portion of the company’s existing term loan B-1.

Broadcom, formerly Avago Technologies Ltd., is a designer, developer and supplier of a range of semiconductor devices based in San Jose, Calif., and Singapore.

UFC timing emerges

UFC released timing on the launch of its $1.3 billion seven-year covenant-light term loan B, setting a bank meeting for 10 a.m. ET in New York on Friday, a market source said.

Goldman Sachs & Co., Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and KKR Capital Markets LLC are leading the deal that will be used with $500 million of unsecured notes to fund the acquisition of the company by WME | IMG.

Silver Lake Partners and KKR will join WME | IMG as new strategic investors, along with MSD Capital LP and MSD Partners LP, which will provide preferred equity financing.

Closing is subject to customary conditions.

UFC is a Las Vegas-based sports brand and pay-per-view event provider. WME | IMG is an entertainment, sports and fashion company.

Safway readies loan

Safway Group set a bank meeting for 2 p.m. ET in New York on Thursday to launch a $775 million senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt.

Safway is a Waukesha, Wis.-based provider of access, scaffolding, insulation, fireproofing, surface preparation and coatings solutions.

Vantage on deck

Vantage Specialty Chemicals emerged with plans to hold a lender call at 2 p.m. ET on Thursday to launch $125 million in term loans, split between a fungible $85 million add-on first-lien term loan (B2) and a $40 million second-lien term loan (Caa1), a market source remarked.

RBC Capital Markets is leading the deal that will be used to fund the acquisition of Mallet and Co. Inc. from ICV Partners.

With the acquisition, Vantage is amending and extending the maturity of its existing revolver to August 2019 and first-lien term loan to February 2021, the source added.

Vantage, a portfolio company of Jordan Co., is a Chicago-based provider of naturally derived specialty chemicals for personal care, industrial, consumer products & food industries. Mallet is a Carnegie, Pa.-based provider of baking release agents.

WCA coming soon

WCA Waste scheduled a bank meeting for Friday to launch an up to $425 million credit facility, according to a market source.

The facility consists of an up to $125 million revolver and a $300 million term loan B, the source said.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing bank debt.

WCA is a Houston-based vertically integrated non-hazardous solid waste management company.

Realogy closes

In other news, Realogy Group LLC completed its $1.1 billion term loan B due 2022 and $355 million term loan A-1 due July 2021, according to a news release.

Pricing on the term loan B is Libor plus 300 bps with a 0.75% Libor floor, and it was issued at par, after tightening during syndication from talk of 99.5 to 99.75. The debt has 101 soft call protection for six months.

J.P. Morgan Securities LLC led the term loans (Ba1/BB+) that were used with $225 million of revolver borrowings and cash on hand to refinance an existing roughly $1.86 billion term loan B.

Realogy is a Madison, N.J.-based real estate company.

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