MKS Instruments, Precyse, Micron set deal revisions; PQ, Russell, SiteOne, AmWINS launch

By Sara Rosenberg

New York, April 14 – In the primary market on Thursday, MKS Instruments Inc. reduced the size of its term loan B, lowered pricing and revised the issue price, and Precyse Acquisition Corp. tightened the spread and original issue discount on its first-lien term loan while also extending the call protection.

Also, Micron Technology Inc. increased the size of its term loan B and accelerated the commitment deadline, and PQ Corp. released details on its new loan financing in connection with its New York bank meeting.

Additionally, Russell Investments and SiteOne Landscape Supply disclosed price talk on their term loans, AmWINS Group Inc. came to market with an add-on transaction, and NBTY Inc. emerged with new deal plans.

MKS reworks deal

MKS Instruments trimmed its seven-year covenant-light term loan B to $780 million from $800 million, cut pricing to Libor plus 400 basis points from Libor plus 450 bps and moved the original issue discount to 99 from 98, a market source remarked.

The loan still has a 0.75% Libor floor and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Thursday, the source continued.

The company’s now $830 million senior secured credit facility also includes a $50 million five-year ABL revolver.

Barclays and Deutsche Bank Securities Inc. are leading the deal, with Barclays the left lead on the term loan and Deutsche Bank the left lead on the revolver.

MKS buying Newport

Proceeds from MKS’ credit facility will be used to help fund the acquisition of Newport Corp. for $23.00 per share, or about $980 million.

The company chose to downsize the term loan B because it had cash on the balance sheet to use for the acquisition, the source added.

Closing is expected in the second quarter, subject to regulatory approval and approval by Newport’s shareholders.

Total leverage is 2.5 times, and net leverage is 1 times.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes. Newport is an Irvine, Calif.-based supplier of advanced-technology products and systems to customers in the scientific research, microelectronics, life and health sciences, industrial manufacturing and defense/security markets.

Precyse changes emergec

Precyse Acquisition lowered pricing on its $460 million 6.5-year first-lien covenant-light term loan (B2/B) to Libor plus 550 bps from talk of Libor plus 575 bps to 600 bps, tightened the original issue discount to 98.5 from 98, extended the 101 soft call protection to one year from six months and removed the 12 month MFN sunset, according to a market source.

As before, the first-lien term loan has a 1% Libor floor.

Commitments were due at 5 p.m. ET on Thursday, the source added.

The company’s $700 million credit facility also includes a $50 million five-year revolver (B2/B) and a privately placed $190 million seven-year second-lien term loan (Caa2/CCC).

Barclays, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Jefferies Finance LLC are leading the deal that will capitalize the merger of the MedAssets Revenue Cycle Management business and Precyse.

First-lien leverage is 4.3 times, and total leverage is 6 times.

Precyse, a Pamplona Capital Management portfolio company, is a provider of end-to-end revenue cycle services, technology and education solutions in the healthcare sector.

Micron ups size

Micron Technology lifted its six-year senior secured covenant-light term loan B to $750 million from $500 million and moved up the commitment deadline to noon ET on Friday from Wednesday, a market source said.

As previously reported, the term loan is talked at Libor plus 600 bps to 625 bps with a 0.75% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., HSBC Holdings plc and J.P. Morgan Securities LLC are leading the loan that will be used with $1.25 billion of senior secured notes, upsized from $1 billion, for general corporate purposes, including working capital and capital expenditures, and to pay related fees and expenses.

Closing is subject to, among other things, successful syndication, negotiation, execution and delivery of definitive loan documentation and various customary conditions.

Micron is a Boise, Idaho-based semiconductor company.

PQ details surface

PQ Corp. held its bank meeting in New York on Thursday morning, at which time the company launched a $900 million 6.5-year senior secured covenant-light term loan talked at Libor plus 550 bps with a 1% Libor floor, an original issue discount of 97.5 to 98 and 101 soft call protection for one year, according to a market source.

Commitments are due at 5 p.m. ET on April 28, the source said.

The company also plans on launching a roughly $300 million equivalent euro-denominated senior secured covenant-light term loan to European investors with a bank meeting in London on Friday.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Jefferies Finance LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and Keybanc Capital Markets are leading the debt (B2) that will be used to refinance credit facilities at PQ and Eco Services and PQ’s second-lien notes concurrent with the merger of the two companies.

Closing is expected in early May.

PQ is a Malvern, Pa.-based producer of specialty inorganic performance chemicals and catalysts. Eco Services is a The Woodlands, Texas-based producer of sulfuric acid.

Russell sets talk

Russell Investments came out with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months on its $650 million seven-year covenant-light term loan B that launched with a bank meeting during the session, a source remarked.

The company’s $700 million credit facility (Ba2/BB/BB) also includes a $50 million five-year revolver.

Commitments are due at 5 p.m. ET on April 28, the source added.

Barclays, Macquarie Capital (USA) Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by TA Associates and Reverence Capital Partners from London Stock Exchange Group plc in a transaction valued at $1.15 billion, subject to customary closing adjustments.

Closing is expected in the first half of this year, conditioned on regulatory and other required approvals.

Net leverage is 3.9 times.

Russell Investments is a Seattle-based asset manager.

SiteOne reveals guidance

SiteOne Landscape Supply held its bank meeting in the afternoon, launching its $250 million six-year first-lien term loan with talk of Libor plus 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 on April 26, the source said.

UBS Investment Bank is leading the deal that will be used to refinance existing debt and fund a dividend.

Clayton Dubilier & Rice is the sponsor.

SiteOne is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

AmWINS seeks add-on

AmWINS launched, without a call, a fungible $30 million add-on first-lien term loan talked at Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund acquisitions.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

NBTY on deck

NBTY set a bank meeting in London for Friday and a bank meeting in New York for Monday to launch new term loan B debt, a market source remarked.

Bank of America Merrill Lynch and Barclays are leading the loan that will be used with new senior notes to refinance existing debt.

NBTY is a Ronkonkoma, N.Y.-based manufacturer, marketer, distributor and retailer of vitamins and nutritional supplements.

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