Mallinckrodt, Exactech, AGS emerge in secondary; Cineworld, Paladin Brands revise deals

By Sara Rosenberg

New York, Feb. 6 – Mallinckrodt plc upsized its term loan B and Exactech Inc. firmed the spread on its term loan at the tight end of guidance, and then these deals freed to trade on Tuesday, and AGS (AP Gaming I LLC) saw its term loan hit the secondary market as well.

In more happenings, Cineworld Group plc revised sizes and pricing on its U.S. and euro term loans and dropped plans for a GBP term loan, Paladin Brands Holding Inc. (IES) modified the issue price on its incremental term loan B, and Charter NEX US Inc. postponed its call that was meant to launch a repricing of its term loan.

Furthermore, Access CIG LLC, Robertshaw US Holding Corp., Chromaflo Technologies, Steinway Musical Instruments Inc. and Strategic Partners Acquisition Corp. disclosed talk with launch, and Lineage Logistics LLC surfaced with new deal plans.

Mallinckrodt upsizes, trades

Mallinckrodt lifted its incremental term loan B (Ba1/BB+) due Feb. 24, 2025 to $600 million from $500 million, and left pricing at Libor plus 300 basis points with a 0.75% Libor floor and an original issue discount of 99.75, according to a market source.

As before, the loan has 101 soft call protection for six months.

Books closed at 1:30 p.m. ET on Tuesday and then the loan emerged in the secondary market with levels quoted at par 1/8 bid, par 5/8 offered, a trader added.

Deutsche Bank Securities Inc., Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of Sucampo Pharmaceuticals Inc. for $18.00 per share, to refinance some of Sucampo’s debt, to pay transaction costs and for general corporate purposes. The total transaction value including anticipated payments in respect of Sucampo’s debt is about $1.2 billion.

Closing is expected during the week of Feb. 12.

Mallinckrodt is a U.K.-based specialty pharmaceutical company. Sucampo is a Rockville, Md.-based biopharmaceutical company.

Exactech firms, tops OID

Exactech finalized pricing on its $235 million seven-year senior secured covenant-light term loan B at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source said.

The company’s $285 million of credit facilities (B2/B-) also include a $50 million revolver.

With final terms in place, the B loan broke for trading and levels were quoted at par bid, 101 offered, another source added.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, RBC Capital Markets, HSBC Securities (USA) Inc. and SMBC are leading the deal that will be used to help fund the buyout of the company by TPG Capital for $49.25 per share in cash.

Closing is expected this quarter, subject to customary conditions.

Exactech is a Gainesville, Fla.-based developer and producer of orthopedic implant devices and surgical instrumentation for extremities and large joints.

AGS frees up

AGS’ roughly $512.6 million senior secured first-lien term loan (B2/B) due Feb. 15, 2024 began trading too, with levels quoted at par ¾ bid, 101¼ offered, a market source remarked.

Pricing on the term loan is Libor plus 425 basis points with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 550 bps with a 1% Libor floor.

AGS is a Las Vegas-based manufacturer and operator of gaming machines.

Cineworld restructures

Back in the primary market, Cineworld Group increased the size of its U.S. seven-year covenant-light term loan B to $3,325,000,000 from $3 billion, cut pricing to Libor plus 250 bps from Libor plus 275 bps and moved the original issue discount to 99.75 from 99.5, according to a market source.

Additionally, the company lifted its euro seven-year covenant-light term loan B to $750 million equivalent from $600 million equivalent, trimmed pricing to Euribor plus 262.5 bps from Euribor plus 300 bps and changed discount talk to a range of 99.75 to par from 99.5, the source said.

Also, plans were terminated for a GBP seven-year covenant-light term loan B talked at Libor plus 350 bps with a 0% Libor floor. Prior to the bank meeting, it was said that the total amount of term loan B debt would be about $4 billion equivalent, including a carve-out of $1 billion across euro and GBP with the split to be determined.

The U.S. and euro term loans have a 25 bps step-down when net secured leverage is less than 3.5 times, a 0% floor and 101 soft call protection for six months.

The company’s $4,375,000,000 equivalent of senior secured credit facilities (B1/BB-) also include a $300 million five-year revolver.

Cineworld lead banks

Barclays and HSBC Bank plc are the global coordinators on Cineworld’s credit facilities, with Barclays left on the U.S. loan and HSBC left on the euro loan. Barclays is the administrative agent.

Commitments were due at the close of business on Tuesday, the source added.

Proceeds will be used with around $2.27 billion in equity to fund the acquisition of Regal Entertainment Group for $23.00 in cash for each share of class A and class B common stock, for a total transaction value of $5.9 billion, including the assumption of debt and net of cash acquired, and to refinance existing debt.

Closing is expected this quarter, subject to regulatory review, approval by the shareholders of Regal and Cineworld and other customary conditions.

Net leverage is expected to be around 4 times.

Cineworld is a London-based cinema operator. Regal is a Knoxville, Tenn.-based motion picture exhibitor.

Paladin tweaked

Paladin Brands changed the issue price on its fungible $61.5 million incremental term loan B due Aug. 15, 2022 to par from 99.5, according to a market source.

Like the existing loan, the incremental loan is priced at Libor plus 550 bps with a step to Libor plus 500 bps when first-lien net leverage is less than 3.25 times and a 0% Libor floor, and has 101 soft call protection through Sept. 26, 2018.

Previously in syndication, the incremental term loan was upsized from $35 million.

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

Bank of America Merrill Lynch is leading the deal that will be used with revolver borrowings to refinance all of the company’s existing subordinated second-lien term loan. Before the loan was upsized, only a portion of the second-lien debt was going to be repaid.

Paladin is a subsidiary of IES, an Oak Brook, Ill.-based manufacturer of engineered equipment with applications in the construction, demolition, recycling, mining, utility, forestry, landscaping and agriculture end-markets.

Charter NEX deferred

Charter NEX decided to temporarily put off its lender call that was supposed to take place at 1 p.m. ET on Tuesday, a market source remarked.

The call was going to be used to launch a repricing of the company’s term loan.

Jefferies LLC is the lead bank on the loan.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

Access CIG guidance

Also in the primary market, Access CIG held its bank meeting on Tuesday, and with the event, talk was announced on its $575 million seven-year first-lien term loan (B2/B), $120 million seven-year delayed-draw first-lien term loan (B2/B), $215 million eight-year second-lien term loan (Caa2/CCC+) and $40 million eight-year delayed-draw second-lien term loan (Caa2/CCC+), according to a market source.

Talk on the first-lien term debt is Libor plus 400 bps with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term debt is Libor plus 800 bps with a 0% Libor floor and a discount of 99, the source said. The delayed-draw term loans have ticking fees of half the spread from days 61 to 120 and the full spread thereafter.

Call protection on the first-lien term debt is 101 soft call protection for six months, and the second-lien term debt has hard call protection of 102 in year one and 101 in year two.

The company’s $1.01 billion senior secured deal also includes a $60 million five-year revolver (B2/B).

Commitments are due on Feb. 15, the source added.

Jefferies LLC, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used to refinance debt, and the delayed-draw loans are intended to be used for acquisitions currently under letters of intent.

Access CIG is a Livermore, Calif.-based provider of physical and digital records and information management services.

Robertshaw terms emerge

Robertshaw released price talk on its $480 million seven-year covenant-light first-lien term loan (B1/B) and $125 million eight-year covenant-light second-lien term loan (Caa1/CCC+) with its morning bank meeting, a market source remarked.

Talk on the first-lien term loan is Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 825 bps with a 1% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $655 million of credit facilities also include a $50 million ABL revolver.

Commitments are due at 5 p.m. ET on Feb. 15.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by One Rock Capital Partners LLC.

Robertshaw is an Itasca, Ill.-based designer and manufacturer of systems and controls used in residential and commercial appliances, HVAC and transportation applications.

Chromaflo releases talk

Chromaflo Technologies came out with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $356.4 million in senior secured covenant-light term loan B debt due Nov. 18, 2023 that launched with a call in the morning, a market source said.

The debt is split between a $154,935,000 term loan B-1 at the U.S. borrower and a $201,465,000 term loan B-2 at the Dutch borrower.

Commitments/consents are due at noon ET on Friday, the source added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, KeyBanc Capital Markets and Jefferies LLC are leading the deal that will be used to reprice existing term loan B debt due 2023.

Chromaflo is an Ashtabula, Ohio-based manufacturer of chemical and pigment dispersions for architectural and industrial coatings.

Steinway details surface

Steinway Musical Instruments held its call in the morning, launching a $235 million seven-year covenant-light term loan B (B3/B) talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Feb. 13, the source said.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing term loan B.

Steinway, owned by Paulson & Co., is an Astoria, N.Y.-based musical instruments company.

Strategic Partners launches

Strategic Partners launched on its call its $332 million term loan at talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due on Feb. 13, the source added.

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Strategic Partners is a Chatsworth, Calif.-based designer and manufacturer of medical apparel and footwear and school uniforms.

Lineage joins calendar

Lineage Logistics set a lender call for noon ET on Wednesday to launch a $500 million seven-year covenant-light first-lien term loan talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Feb. 15, the source said.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing debt.

Lineage Logistics is an Irvine, Calif.-based cold storage warehousing and logistics company.

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