IP&S, Allison, Smart & Final, HD, NXP, Acadia, Dollar Tree, Beacon, Horizon, Surgery break

By Sara Rosenberg

New York, Sept. 16 – A number of deals freed up for trading on Friday, including Intellectual Property & Science (IP&S) (Camelot Finance LP), Allison Transmission Inc., Smart & Final Stores LLC, HD Supply Inc., NXP BV, Acadia Healthcare Co. Inc., Dollar Tree Inc., Beacon Roofing Supply Inc., Horizon Global Corp. and Surgery Center Holdings Inc. (Surgery Partners Inc.).

Also in the secondary market, Concordia International Corp.’s term loan dropped by a few points on the back of the introduction of a new bill in the House of Commons in the United Kingdom that would help manage the cost of medicines.

Meanwhile, in the primary market, Avantor Performance Materials increased the size of its incremental first-lien term loan, and Landry’s Inc. accelerated the commitment deadline on its credit facility.

Additionally, G-III Apparel Group Ltd. released price talk with launch, and Harbortouch LLC, Multi Packaging Solutions International Ltd., Misys, 84 Lumber Co. and Zest Holdings LLC surfaced with new deal plans.

IP&S hits secondary

Intellectual Property & Science’s credit facility broke for trading on Friday, with the $1.55 billion seven-year covenant-light first-lien term loan quoted at par bid, 100½ offered, according to a market source.

Pricing on the term loan is Libor plus 375 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt includes 101 soft call protection for six months.

On Thursday, the term loan was upsized from $1.45 billion as the company’s bond offering was downsized, pricing was reduced from talk of Libor plus 425 bps to 450 bps and the MFN sunset was eliminated.

The company’s $1,725,000,000 credit facility also includes a $175 million revolver.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, RBC Capital Markets LLC, Citigroup Global Markets Inc., Barclays, Goldman Sachs Bank USA and Guggenheim are leading the deal.

IP&S funding buyout

Proceeds from Intellectual Property & Science’s credit facility will be used with its bonds and equity to fund its acquisition by Onex Corp. and Baring Private Equity Asia from Thomson Reuters for $3.55 billion in cash.

Closing is expected in the next few months, subject to regulatory approval and customary conditions. The transaction is not subject to financing.

Intellectual Property & Science is a Philadelphia-based provider of comprehensive intellectual property and scientific information, decision support tools and services.

Allison starts trading

Allison Transmission’s $1,191,000,000 senior secured covenant-light term loan B due September 2022 also freed up, with levels seen at 100½ bid, 101 offered, a trader remarked.

Pricing on the term loan B is Libor plus 250 bps with a 0.75% Libor floor. The debt has a 25 bps extension fee and 101 soft call protection for six months.

On Wednesday, the term loan B was downsized from $1.7 billion as the company’s senior unsecured notes offering was upsized to $1 billion from $500 million, the spread firmed at the low end of the Libor plus 250 bps to 275 bps talk and the Libor floor was reduced from 1%.

Citigroup, Barclays, Bank of America Merrill Lynch, BMO Capital Markets, Fifth Third Bank, J.P. Morgan Securities LLC and SMBC are leading the deal.

Allison refinancing

Proceeds from Allison Transmission’s term loan B will be used to amend and extend a portion of an existing term loan B that matures in August 2019. The bonds will be used with cash on hand to repay the remainder of the existing $2.39 billion term loan and to pay related transaction fees and expenses.

The company is also planning to extend its $450 million revolver to 2021 from January 2019.

Closing is targeted for Sept. 23.

Allison Transmission is an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems.

Smart & Final breaks

Another deal to make its way into the secondary market was Smart & Final’s $625 million senior secured covenant-light term loan B due Nov. 15, 2022, with levels quoted at par bid, 100 3/8 offered, a trader said.

Pricing on the loan is Libor plus 350 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. The debt includes 101 soft call protection for six months.

During syndication, the term loan was upsized from $594.9 million, pricing was increased from Libor plus 325 bps, and the discount firmed at the wide end of the 99.5 to 99.75 talk.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to amend and extend an existing term loan B due Nov. 15, 2019 priced at Libor plus 325 bps with a 0.75% Libor floor, and, because of the recent upsizing, to pay down ABL borrowings.

Closing is expected during the week of Sept. 19.

Smart & Final is a Commerce, Calif.-based warehouse-style, no membership fee, multi-format retailer.

HD Supply frees up

HD Supply’s $550 million seven-year incremental covenant-light term loan B started trading as well, with levels quoted at 99¾ bid, 100¼ offered, according to a trader.

Pricing on the loan is Libor plus 275 bps with a step-down to Libor plus 250 bps when total net leverage is 3 times. The debt has no Libor floor and 101 soft call protection for six months and was sold at an original issue discount of 99.5.

On Thursday, the pricing step-down was added to the term loan.

Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal.

HD Supply amending

With the new loan, HD Supply is amending its existing $843.6 million covenant-light term loan due August 2021 to eliminate the 1% Libor floor while the spread will remain at Libor plus 275 bps, waive the 3.25 times restricted payments ratio since this transaction will result in 3.4 times net secured leverage, and reset the excess cash flow sweep to apply to fiscal year 2017.

Lenders were offered a 10-bps consent fee.

Proceeds from the company’s incremental term loan will be used with a $600 million ABL revolver draw and $228 million in cash on hand to redeem its $1,275,000,000 of 7½% senior notes due 2020.

HD Supply, an Atlanta-based industrial distributor, expects to close on the deal in the week of Oct. 17.

NXP begins trading

NXP’s $1.44 billion term loan F due Dec, 7, 2020 freed up, with levels quoted at 100 3/8 bid, 100 5/8 offered, a market source remarked.

Pricing on the loan is Libor plus 250 bps with no floor, and it was issued at par. The debt has 101 soft call protection for six months.

Deutsche Bank Securities Inc. is the bookrunner on the deal. Credit Suisse Securities (USA) LLC is the administrative agent.

Proceeds will be used to reprice an existing term loan B down from Libor plus 300 bps with a 0.75% Libor floor.

Closing is expected during the week of Sept. 19.

NXP is an Eindhoven, Netherlands-based maker of semiconductors.

Acadia surfaces in secondary

Acadia Healthcare’s $950.2 million covenant-light term loan B-2 due February 2023 also began trading, with levels quoted at 100 1/8 bid, 100 7/8 offered, according to a trader.

Pricing on the loan is Libor plus 300 bps with a 0.75% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will be used to reprice the existing term loan B-2 down from Libor plus 375 bps with a 0.75% Libor floor.

Acadia is a Franklin, Tenn.-based provider of inpatient and outpatient behavioral health care services.

Dollar Tree frees to trade

Dollar Tree was yet another deal to make its way into the secondary, with its $750 million term loan B (BBB) due July 2022 seen at 100¼ bid, 100¾ offered, a market source said.

The loan is priced at Libor plus 250 bps and was issued at par. Included in the debt is 101 soft call protection for one year.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan B.

Dollar Tree is a Chesapeake, Va.-based discount retailer.

Beacon levels emerge

Beacon Roofing Supply’s $446.6 million covenant-light term loan B due October 2022 broke too, with levels seen at par bid, 100¼ offered, according to a market source.

Pricing on the loan is Libor plus 275 bps with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Wells Fargo Securities LLC and Citigroup Global Markets Inc. are leading the deal that is repricing an existing term loan down from Libor plus 300 bps with a 1% Libor floor.

Beacon Roofing Supply is a Herndon, Va.-based distributor of roofing materials and complementary building products.

Horizon tops par

Horizon Global’s $152 million add-on term loan B hit the secondary, with the debt quoted at 100¼ bid, according to a market source.

Pricing on the add-on term loan B is Libor plus 600 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5, after firming during syndication at the tight end of the 99 to 99.5 talk.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition of Westfalia Group from DPE Deutsche Private Equity, which will become a shareholder of Horizon Global as part of the transaction, for about €89 million cash and assumed net debt of €42 million that will be refinanced.

Horizon Global will also issue €36 million in common stock to the sellers as part of the transaction.

Closing is expected in the fourth quarter, subject to the satisfaction of customary conditions.

Horizon Global is a Troy, Mich.-based manufacturer of branded towing and trailering equipment. Westfalia is a Rheda-Wiedenbrueck, Germany-based towing company.

Surgery Center breaks

Surgery Center Holdings’ $937 million first-lien term loan was quoted at par bid, 100¼ offered upon freeing up for trading during the session, a market source said.

Pricing on the loan is Libor plus 375 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for one year, after being extended during syndication from six months.

Jefferies Finance LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 1% Libor floor, and includes the folding in of an $80 million non-fungible term loan tranche that was completed in March.

Closing is expected during the week of Sept. 19.

Surgery Center is a Nashville, Tenn.-based health care services company.

Concordia weakens

In more trading news, Concordia’s term loan fell in reaction to a new bill that was introduced into the House of Commons on Thursday regarding drug costs, traders remarked.

One trader had the term loan quoted at to 90 bid, 92 offered, down from 94 bid, 95 offered. A second trader had the loan at 90¾ bid, 92½ offered, down from 94 bid, 94¾ offered, and said, prior to rebounding partially, the debt had fallen as low as 83 bid, 88 offered on Friday.

The bill would allow the U.K. government to require companies to make payments to control the cost of health service medicines, to require companies to reduce the price of an unbranded generic medicine or to impose other controls on that company’s unbranded medicine and to make regulations to obtain information on sales and purchases of health service medicines, medical supplies and other related products from all parts of the supply chain.

In response to the bill, Concordia’s chairman and chief executive officer, Mark Thompson, said in a news release that the company expects growth from its international segment going forward to primarily come from new product launches, and that the bill is being monitored to determine the impact, if any, on the company.

Concordia is an Oakville, Ont.-based international pharmaceutical company.

Avantor upsizes

Switching to the primary market, Avantor Performance Materials raised its incremental first-lien term loan due 2022 to $665 million from $400 million, according to a market source.

Pricing on the incremental term loan, and on a $170 million delayed-draw first-lien term loan due 2022, is still Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99.5. The debt has 101 soft call protection through June 21, 2017, and the delayed-draw term loan includes a ticking fee of the full spread starting on day 31. Spread, floor and call protection on the new term loans is in line with the existing first-lien term loan.

The new term loans will trade as a strip.

In addition to the term loans, the company is getting a $25 million revolver.

Commitments were due at 5 p.m. ET on Friday, the source said.

Avantor lead banks

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and KeyBanc Capital Markets LLC are leading Avantor’s new bank debt.

Proceeds will be used to fund the merger of Center Valley, Pa.-based Avantor Performance Materials and Carpinteria, Calif.-based NuSil Technology LLC, both portfolio companies of New Mountain Capital LLC, and to fund a future acquisition. Also, as a result of the upsizing, the new debt will be used to refinance a second-lien term loan and pay a shareholder distribution, the source added.

Closing on the merger is expected late this month, subject to customary conditions.

The combined company, to be named Avantor, will provide performance materials and solutions for the life sciences and advanced technology markets.

Landry’s revises deadline

Landry’s moved up the commitment deadline on its $1.5 billion senior secured credit facility (Ba3/B+) to 5 p.m. ET on Monday from Thursday, a market source said.

The facility consists of a $200 million five-year revolver, and a $1.3 billion seven-year first-lien term loan with talked at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Allocations are targeted to go out on Tuesday, the source added.

Jefferies Finance LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Rabobank are leading the deal that will be used with $575 million of senior notes due 2024 to refinance existing debt, including 9 3/8% senior unsecured notes due 2020 and an existing senior secured credit facility, and to make a distribution to its indirect parent to redeem all of its outstanding 10¼% senior unsecured notes due 2018.

Landry’s is a Houston-based diversified restaurant, hospitality and entertainment company.

G-III releases guidance

Also in the primary, G-III Apparel Group came out with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $350 million six-year term loan B (B1/BB+) that launched with a bank meeting on Friday, a source remarked.

The company’s $1 billion senior secured credit facility also includes a $650 million five-year ABL revolver, that, based on a recent filing with the Securities and Exchange Commission, is expected to have initial pricing of Libor plus 150 bps.

Barclays and J.P. Morgan Securities LLC are the joint lead arrangers on the term loan, and Barclays, JPMorgan and Bank of America Merrill Lynch are the joint lead arrangers on the revolver.

Commitments are due at noon ET on Sept. 30.

G-III buying Donna Karan

Proceeds from G-III Apparel’s credit facility will be used to help fund the acquisition of Donna Karan International Inc. from LVMH Moet Hennessy Louis Vuitton for $650 million, subject to customary adjustments at closing, and to replace an existing $450 million ABL revolver.

The company also plans to use $75 million of newly issued G-III common stock to LVMH and a $75 million 6.5-year seller note to fund the transaction.

Total net leverage will be 3.1 times, based on LTM second quarter pro forma adjusted EBITDA.

Closing is expected late this year or early next year, subject to certain conditions.

G-III Apparel is a New York-based designer, manufacturer and marketer of branded apparel and accessories.

Harbortouch readies deal

Harbortouch scheduled a bank meeting for 2:30 p.m. ET in New York on Monday to launch a $370 million credit facility, according to a market source.

The facility consists of a $20 million revolver, a $250 million seven-year first-lien term loan and a $100 million eight-year second-lien term loan, the source said.

Talk on the first-lien term loan is Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 925 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source added.

Commitments are due at 5 p.m. ET on Oct. 3.

Credit Suisse Securities (USA) LLC and Citizens Bank are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Harbortouch is an Allentown, Pa.-based independent merchant acquirer and payment solutions provider.

Multi Packaging on deck

Multi Packaging Solutions surfaced with plans to hold a lender call at 1 p.m. ET on Monday to launch a $220 million non-fungible term loan, a market source said.

Barclays is leading the deal that will be used to redeem the company’s $200 million 8½% senior notes due 2021 on Oct. 17.

Furthermore, the company intends to reprice its existing euro and sterling term loan B debt, and to upsize its revolver to $70 million from $50 million, a news release added. The company is not proposing to reprice its existing U.S. term loan B.

Multi Packaging Solutions is a New York-based provider of packaging solutions to the healthcare, consumer and multi-media markets.

Misys joins calendar

Misys set a bank meeting in London for Monday to launch a $1.5 billion-equivalent credit facility, a market source remarked.

The facility consists of a $200 million revolver, a $300 million term loan A, and a $1 billion-equivalent term loan B that is split between a $700 million euro-equivalent tranche and a $300 million U.S. dollar tranche, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to refinance the company’s existing loans.

Misys is a London-based provider of financial services software.

84 Lumber plans meeting

84 Lumber will hold a bank meeting on Wednesday to launch a $350 million seven-year covenant-light term loan B that includes 101 soft call protection for one year, according to a market source.

Wells Fargo Securities LLC and PNC Capital Markets are leading the deal.

Proceeds will be used to refinance existing debt.

84 Lumber is an Eighty Four, Pa.-based supplier of building materials, manufactured components and services for single and multi-family residences and commercial buildings.

Zest coming soon

Zest Holdings intends to hold a lender call at 11 a.m. ET on Tuesday to launch a $70 million add-on first-lien term loan B due August 2020, according to a market source.

With the add-on, the company’s first-lien term loan B size will total $218 million, the source said.

Deutsche Bank Securities Inc. and Citizens Bank are leading the deal that will be used to refinance an existing second-lien term loan.

Zest is a Carlsbad, Calif.-based developer, manufacturer and supplier of solutions to treat natural teeth and implant supported restorations.

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