Frontera, Consolidated Precision, Airxcel, Avast Software, NAI Entertainment, Syneos free up

By Sara Rosenberg

New York, April 25 – Frontera Generation Holdings LLC increased the size of its term loan, trimmed the spread and tightened the original issue discount, and Consolidated Precision Products Corp. (WP CPP Holdings LLC) shifted some funds between its first-and second-lien term loans, and added a step-down and modified the issue price on the first-lien tranche, and then both of these deals made their way into the secondary market on Wednesday.

Also, Airxcel Inc. (AirX Holdings Inc.) revised its first-and second-lien term loan sizes, spreads, original issue discounts and call premiums before freeing up for trading, and deals from Avast Software, NAI Entertainment Holdings LLC and Syneos Health Inc. broke too.

In more happenings, Highline Aftermarket Acquisition LLC set pricing on its term loan at the low end of guidance, added a step-down and updated issue prices for new and old money.

Furthermore, EnergySolutions LLC announced price talk on its term loan B in connection with its presentation, and WireCo and Greenway Health LLC surfaced with repricing plans.

Frontera reworked, trades

Frontera Generation Holdings raised its seven-year covenant-light term loan B to $700 million from $675 million, cut pricing to Libor plus 425 basis points from Libor plus 450 bps and moved the original issue discount to 99.5 from 99, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s now $735 million senior secured deal also includes a $35 million five-year revolver.

Recommitments were due at 11 a.m. ET on Wednesday and the debt freed up in the afternoon, with the term loan B quoted at par ¾ bid, 101½ offered before moving up to 101 bid, 101¾ offered, traders added.

Morgan Stanley Senior Funding Inc. and MUFG are leading the deal that will be used to refinance the existing Lonestar Generation LLC credit facilities and, due to the upsizing, to fund working capital at Lonestar.

Closing is expected late in the week of April 30.

Frontera is a 526 MW combined cycle gas turbine power generation facility located in Mission, Texas. The plant holds a presidential permit and export authorization from the U.S. Department of Energy permitting the export of 100% of the plant’s generation into Mexico on its own dedicated transmission line.

Consolidated Precision revised

Consolidated Precision Products lifted its seven-year covenant-light first-lien term loan to $640 million from $625 million, added a 25 bps pricing step-down at 0.5 times inside closing first-lien net leverage and adjusted the original issue discount to 99.75 from 99.5, a market source remarked.

The first-lien term loan is still priced at Libor plus 375 bps with a 0% Libor floor and has 101 soft call protection for six months.

With the first-lien upsizing, the company scaled back its eight-year covenant-light second-lien term loan to $110 million from $125 million, the source continued.

As before, the second-lien loan is priced at Libor plus 775 bps with a 0% Libor floor and a discount of 99, and has hard call protection of 102 in year one and 101 in year two.

The company’s $875 million of senior secured credit facilities also include a $125 million five-year revolver priced at Libor plus 375 bps with a 0% Libor floor.

Consolidated Precision breaks

Recommitments for Consolidated Precision Products’ credit facilities were due at noon ET on Wednesday, and by late day the debt had emerged in the secondary market, with the first-lien term loan quoted at par ¼ bid, 101 offered and the second-lien term loan quoted at par bid, 101 offered, a trader added.

Morgan Stanley Senior Funding Inc., Antares Capital, ING Capital LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt.

Closing is expected during the week of April 30.

Consolidated Precision Products is a Cleveland-based manufacturer of engineered components and subassemblies primarily for the commercial aerospace, defense and industrial gas turbine markets.

Airxcel sets changes

Airxcel upsized its seven-year senior secured first-lien term loan to $370 million from $360 million, increased pricing to Libor plus 450 bps from Libor plus 400 bps, widened the original issue discount to 99 from 99.5 and extended the 101 soft call protection to one year from six months, according to a market source.

Also, the company downsized its eight-year senior secured second-lien term loan to $110 million from $120 million, raised pricing to Libor plus 875 bps from Libor plus 800 bps, removed the IPO step-down, changed the discount to 96.5 from 99, and adjusted the hard call protection to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said.

In addition, various other lender-friendly documentation changes were made to the transaction.

Both term loans still have a 0% Libor floor, and the first-lien term loan still has a 25 bps IPO based step-down.

The company’s $540 million of credit facilities also include a $60 million five-year ABL revolver.

Airxcel hits secondary

Recommitments for Airxcel’s credit facilities were due at noon ET on Wednesday and by mid-afternoon the debt began trading, with the first-lien term loan quoted by one trader at par bid, 101 offered and by a second trader at par ½ bid, 101¼ offered, and the second-lien term loan quoted at 97 bid, 98 offered.

Jefferies LLC, Morgan Stanley and Citizens are leading the deal, with Jefferies left on the first-lien and Morgan Stanley left on the second-lien.

The credit facilities will be used to help fund the buyout of the company by L Catterton from One Rock Capital Partners LLC.

Closing is expected on Friday.

Airxcel is a Wichita, Kan.-based producer and distributor of heating, ventilating, air conditioning, appliance and a variety of composite and soft good products serving specialty markets.

Avast starts trading

Avast Software’s bank debt freed to trade too, with the $1,214,000,000 covenant-light term loan B (BB-) due September 2023 quoted at par 3/8 bid, par 7/8 offered and then it moved to par ½ bid, par 7/8 offered, market sources said.

The U.S. loan is priced at Libor plus 250 bps with a 1% Libor floor and was issued at par. The debt has 101 soft call protection for six months.

The company is also getting a €502 million covenant-light term loan B (BB-) due September 2023 priced at Euribor plus 275 bps with a 0% floor and issued at par. This tranche has 101 soft call protection for six months as well.

Credit Suisse is the left lead on the deal that will be used to reprice an existing U.S. term loan down from Libor plus 275 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 300 bps with a 0% floor.

Lenders were offered a 12.5 bps amendment fee.

Avast is a Prague-based maker of security software.

NAI tops par

NAI Entertainment’s $300 million seven-year covenant-light term loan B (B1/BB) also broke, with levels seen at par ¼ bid, par ¾ offered, a market source remarked.

Pricing on the term loan is Libor plus 250 bps with a 1% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk in the range of Libor plus 275 bps to 300 bps and the discount was revised from 99.5.

Wells Fargo Securities LLC is leading the deal that will be used to refinance $300 million of senior secured notes due 2018.

NAI is a motion picture company with a diversified portfolio of theatre and other real estate assets in the United States, United Kingdom, Brazil and Argentina as well as equity interests in Viacom Inc. and CBS Corp.

Syneos frees up

Syneos Health’s $1,525,000,000 first-lien term loan (Ba2/BB-) due Aug. 1, 2024 began trading as well, with levels quoted at par ¼ bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 200 bps with a 25 bps step-down and a 0% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 225 bps with a 0% Libor floor.

Syneos, the company formed through the combination of INC Research and inVentiv Health, is a Raleigh, N.C.-based biopharmaceutical solutions provider.

Highline tweaks deal

Back in the primary market, Highline Aftermarket firmed pricing on its $368 million seven-year term loan at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, added a step-down to Libor plus 325 bps based on leverage, and modified the original issue discount for new money to 99.75 from 99.5 and the issue price for old money to par from 99.75, a market source said.

The term loan continues to include a 1% Libor floor and 101 soft call protection for six months.

The company’s $408 million of senior secured credit facilities (B2/B) also provide for a $40 million five-year revolver.

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

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing bank debt and mezzanine debt and to fund the acquisition of South/Win.

Highline Aftermarket is a Memphis-based manufacturer and distributor of packaged automotive chemicals, lubricants and parts. South/Win is a Greensboro, N.C.-based manufacturer of automotive fluids.

EnergySolutions guidance

EnergySolutions held its lender presentation on Wednesday, launching its $575 million seven-year covenant-light term loan B at talk of Libor plus 400 bps to 425 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.

The company’s $725 million of senior secured credit facilities (B2/B) also include a $150 million five-year revolver.

Commitments are due on May 8, the source said.

Morgan Stanley Senior Funding Inc., Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt, pay a dividend to shareholders and provide liquidity for working capital.

EnergySolutions is a Salt Lake City-based nuclear services company.

WireCo joins calendar

WireCo emerged with plans to hold a lender call at 11 a.m. ET on Friday to launch a repricing of its $453 million senior secured first-lien term loan, a market source remarked.

Goldman Sachs Bank USA is leading the deal.

WireCo is a Prairie Village, Kan.-based manufacturer and distributor of wires and synthetic ropes.

Greenway on deck

Greenway Health scheduled a lender call for 11 a.m. ET on Thursday to launch a loan repricing transaction, a market source said.

Jefferies LLC is leading the deal.

Greenway Health is a Carrollton, Ga.-based provider of clinical, financial, connectivity and information software products and services to physician practices.

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