Advanced Integration Technology, Plaskolite free to trade; Burlington on deck with repricing

By Sara Rosenberg

New York, July 15 – Advanced Integration Technology LP’s credit facility made its way into the secondary market on Friday, with levels on the term loan quoted above its original issue discount, and Plaskolite LLC’s add-on first-lien term loan broke too.

Meanwhile, in the primary market, Burlington Stores Inc. is getting ready to bring a term loan repricing transaction to market, and talk is that WireCo WorldGroup Inc.’s recently launched credit facility has already seen strong interest from investors.

Advanced Integration breaks

Advanced Integration Technology’s credit facility began trading on Friday, with the $225 million five-year first-lien term loan quoted at 99¼ bid, 99¾ offered, according to a market source.

Pricing on the term loan is Libor plus 550 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

Earlier this month, the term loan was downsized from $315 million, pricing was increased from Libor plus 500 bps, the call protection was extended from six months, the maturity was shortened from seven years, and the MFN sunset was removed.

The company’s $285 million credit facility (B1/BB-) also includes a $60 million revolver.

UBS Investments Bank, Citigroup Global Markets Inc. and SunTrust Robinson Humphrey Inc. are leading the debt that will be used for a recapitalization.

Advanced Integration is a Plano, Texas-based industrial automation and tooling company delivering turnkey factory integration to the aerospace industry.

Plaskolite starts trading

Plaskolite’s fungible $70 million add-on first-lien term loan (B) freed up for trading as well, with levels seen at 99 7/8 bid, 100 3/8 offered, a trader remarked.

Prior to the add-on loan breaking, the existing term loan was quoted in the morning at those same 99 7/8 bid, 100 3/8 offered levels, the trader added.

Based on an existing leverage-based grid, pricing on the pro forma $381.6 million first-lien term loan is Libor plus 475 bps with a 1% Libor floor, due to leverage being 5 times or higher. When leverage is less than 5 times, which was the case prior to this transaction, pricing is Libor plus 450 bps.

The add-on was sold at an original issue discount of 99.75.

On Thursday, it was announced that the discount on the add-on loan was tightened from talk of 99 to 99.5.

Plaskolite funds distribution

Proceeds from Plaskolite’s add-on first-lien term loan will be used with a privately placed $15 million add-on to an existing $105 million second-lien term loan to fund a distribution to shareholders and pay transaction-related fees and expenses.

Antares Capital and KeyBanc Capital Markets LLC are leading the deal.

Closing is expected on Tuesday.

Plaskolite, a Columbus, Ohio-based manufacturer of acrylics and other plastic products, was acquired by Charlesbank Capital Partners and management in November 2015.

BWIC emerges

Also in trading, a $46 million Bid Wanted In Competition surfaced in the morning, with the bid deadline set for a few hours later at noon ET, a trader said.

Some of the names in the portfolio included Community Health Systems Inc., Federal-Mogul Holdings Corp., Husky Injection Molding Systems Ltd., JBS USA LLC, Tropicana Entertainment Inc. and West Corp.

There were 15 issuers in the BWIC, the trader added.

Burlington coming soon

Switching to the primary market, Burlington Stores scheduled a lender call for 10 a.m. ET on Monday to launch a repricing of its $1,115,000,000 term loan due 2021 that is talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

The repricing will take the term loan down from Libor plus 325 bps with a 1% Libor floor.

J.P. Morgan Securities LLC and Goldman Sachs & Co. are leading the deal.

Burlington Stores is a Burlington, N.J.-based discount retailer.

WireCo well met

WireCo’s $410 million senior secured seven-year term loan B (B2/B+), which launched with a bank meeting on Wednesday, is heard to already be oversubscribed well ahead of its commitment deadline at noon ET on July 22, according to a market source.

The term loan is talked at Libor plus 575 bps to 600 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

The company’s $510 million credit facility also includes a $100 million ABL revolver.

Goldman Sachs & Co. and Scotiabank are leading the deal that will refinance the company’s capital structure and extend its debt maturities in connection with the purchase of a majority interest by Onex Corp.

Closing is expected later this year, subject to regulatory approval and customary conditions.

Funds managed by Paine & Partners LLC, which acquired WireCo in 2007, will maintain a significant minority stake.

WireCo is a Prairie Village, Kan.-based manufacturer of wire rope, synthetic rope, electromechanical cable and highly engineered cable structures.

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