Ascensus, Azelis break; ClubCorp up with refinancing plans; Multiple deals launch in primary

By Sara Rosenberg

New York, Dec. 1 – Ascensus Inc. (JCF Ascensus Holdings Inc.) and Azelis Group saw their term debt free up for trading on Tuesday, and ClubCorp Club Operations Inc.’s term loan was higher as the company launched new debt transactions to, among other things, refinance existing loans.

Switching to the primary market, Kraton Polymers LLC, Albertsons Cos. LLC, TierPoint, Edelman Financial Center LLC, MB Aerospace, PLZ Aeroscience Corp. and ProQuest LLC released price talk with launch, and ProAmpac surfaced with new deal plans.

Ascensus starts trading

Ascensus’ $425 million in seven-year first-lien term debt hit the secondary market on Tuesday, with levels quoted at 94½ bid, 95½ offered, according to a market source.

The debt, which includes a $25 million delayed-draw term loan, is priced at Libor plus 450 basis points with a 1% Libor floor and was sold at an original issue discount of 94, after widening during syndication from 98.5, the source said. There is 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc. and RBC Capital Markets LLC are leading the deal that will be used to help fund the buyout of the company by Genstar Capital and Aquiline Capital Partners from J.C. Flowers & Co.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

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

Azelis frees up

Azelis’ bank debt also broke for trading, with the $325 million seven-year first-lien covenant-light term loan quoted at 98¼ bid, 99¼ offered, a trader remarked.

Pricing on the U.S. first-lien term loan is Libor plus 550 bps with a 1% floor, and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

The company is also getting a €130 million seven-year first-lien covenant-light term loan, a $110 million eight-year second-lien covenant-light term loan and a €92.2 million eight-year second-lien covenant-light term loan.

The euro first-lien term loan is priced at Euribor plus 550 bps with a 1% floor, and it too was issued at 98. This tranche has 101 soft call protection for one year as well.

Barclays, Morgan Stanley Senior Funding Inc. and ING are the bookrunners on the $675 million in new term loan debt, with Barclays the left lead on the first-lien loan (B2/B+) and Morgan Stanley the left lead on the second-lien loan (Caa2/CCC+).

Azelis buying KODA

Proceeds from Azelis’ term loans will be used to fund the acquisition of KODA Distribution Group, refinance Azelis’ existing debt and place cash on the balance sheet.

During syndication, the deal was revised from a $460 million all U.S. dollar seven-year first-lien term loan into a $325 million U.S. tranche and a $135 million equivalent euro tranche, before final sizes were announced, and the second-lien term loan was updated from an initially euro-denominated $215 million (€190 million equivalent) loan.

Also, pricing on the U.S. first-lien term loan was lifted during syndication from talk of Libor plus 450 bps to 475 bps and the discount widened from 99, and pricing on the euro first-lien term loan firmed at the high end of the Euribor plus 525 bps to 550 bps talk.

Closing is expected by year-end, subject to regulatory clearances.

Azelis is an Antwerp, Belgium-based pure-play specialty chemical distributor. KODA is a Stamford, Conn.-based specialty chemical company.

ClubCorp trades up

In more trading news, ClubCorp’s term loan rose to 99 5/8 bid, 100 1/8 offered from 99½ bid, 99 7/8 offered once word emerged that the company is planning on getting a new term loan and notes to replace its existing credit facility and for general corporate purposes, including the execution of its growth strategy, a trader said.

The proposed $625 million seven-year senior secured non-amortizing covenant-light term loan B (Ba3/BB-) was launched with a morning call to investors and is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

And a roadshow for the proposed $400 million of senior unsecured notes will take place through Friday, with pricing anticipated thereafter.

ClubCorp lead banks

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading ClubCorp’s term loan.

Commitments are due on Monday and closing is expected on Dec. 15, the source added.

Along with the term loan B, the company intends to increase its revolving credit facility to $175 million from $135 million and extend the maturity to five years from closing on the increase, according to an 8-K filed with the Securities and Exchange Commission.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs and business, sports and alumni clubs.

Kraton reveals talk

Over in the primary market, Kraton Polymers held its bank meeting on Tuesday, and shortly before the event kicked off, price talk on its $1.35 billion six-year senior secured term loan B (Ba3/B+) was announced as Libor plus 475 bps to 500 bps with a 1% Libor floor and an original issue discount of 98, according to a market source.

As previously reported, the loan has 101 soft call protection for one year.

Commitments are due on Dec. 11.

Credit Suisse Securities (USA) LLC, Nomura Securities International Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the $1.37 billion acquisition of Arizona Chemical Holdings Corp. from American Securities LLC and to refinance existing debt.

Closing is expected in late 2015 or early 2016.

Kraton is a Houston-based producer of engineered polymers and styrenic block copolymers. Arizona Chemical is a biorefiner of pine chemicals with executive offices in Jacksonville, Fla., and Almere, the Netherlands.

Albertsons details surface

Albertsons Cos.’ lender call took place in the morning, at which time the company launched a $1,145,000,000 seven-year senior secured covenant-light term loan B (Ba3) with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a source remarked.

Commitments are due at 5 p.m. ET on Dec. 9 and closing is expected on Dec. 17, the source added.

Citigroup Global Markets Inc. and Bank of America Merrill Lynch are leading the deal that will be used to refinance an existing term loan at New Albertson’s Inc.

Albertsons is a Boise, Idaho-based food and drug retailer.

TierPoint guidance

TierPoint released price talk on its incremental first- and second-lien term loans with its bank meeting, a market source said.

The $220 million incremental first-lien term loan is talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $90 million incremental second-lien term loan is talked at Libor plus 875 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source continued.

The company’s $340 million in incremental bank debt also includes a $30 million add-on revolver.

Commitments are due on Dec. 11, the source added.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, TD Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with equity to fund the acquisition of Windstream’s data center business for $575 million.

TierPoint is a St. Louis-based provider of cloud, colocation and managed services.

Edelman releases pricing

Edelman Financial Center launched its $260 million senior secured credit facility (B+) with price talk of Libor plus 500 bps, according to a market source.

The facility is split between a $30 million five-year revolver that has no Libor floor, and a $230 million seven-year covenant-light term loan B that is talked with a 1% Libor floor, an original issue discount of 98 to 99 and 101 soft call protection for six months, the source said.

Commitments are due on Dec. 15.

Morgan Stanley Senior Funding Inc. and UBS AG are leading the deal that will be used to help fund the buyout of the company by Hellman & Friedman LLC.

Edelman Financial is an independent financial planning firm.

MB Aerospace discloses terms

MB Aerospace held its bank meeting, launching its $150 million first-lien term loan with talk of Libor plus 550 bps to 575 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $185 million credit facility also includes a $35 million revolver.

Commitments are due on Dec. 11, the source said.

SG Americas Securities LLC and ING Capital are leading the deal that will be used to help fund the buyout of the company by Blackstone from Arlington Capital Partners.

Equity will be greater than 50% of total pro forma capitalization.

Closing is expected this year, subject to customary regulatory approvals.

MB Aerospace is a Motherwell, Scotland-based tier I engine component manufacturer and repair business.

PLZ guidance emerges

PLZ Aeroscience released talk of Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99 on its fungible $155 million add-on term loan (B) that launched with a call during the session, a market source said.

The spread and floor on the add-on matches existing term loan pricing, and all of the term loan debt will get 101 soft call protection for six months, the source continued.

Commitments are due on Dec. 10 and closing is expected on Dec. 15, the source added.

Antares Capital, NewStar Financial and BMO Capital Markets are leading the loan that will be used with new equity from the company’s sponsor, Pritzker Group, to fund the acquisition of Apollo Technologies Inc. and one other strategic acquisition.

PLZ is an Addison, Ill.-based manufacturer of specialty aerosol products. Apollo Technologies is a Smyrna, Ga.-based manufacturer and custom filler of specialty aerosol products.

ProQuest launches

ProQuest launched its $275 million incremental first-lien term loan (B2) with talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Goldman Sachs Bank USA, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the deal that will be used with a $125 million pre-placed second-lien term loan (Caa1) and equity to fund the acquisition of Ex Libris Group, a provider of library automation solutions.

ProQuest is an Ann Arbor, Mich.-based information solutions provider.

ProAmpac on deck

ProAmpac set a call for Wednesday to launch a $245 million add-on first-lien term loan, a market source remarked.

RBC Capital Markets LLC is leading the deal that will be used to fund an acquisition.

ProAmpac, which was formed earlier this year through the combination of Prolamina Corp. and Ampac Holdings LLC, is a Cincinnati-based flexible packaging company.

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