Capital Automotive, Greektown, Advanced Integration break; Spectrum, Ventia updates emerge

By Sara Rosenberg

New York, March 21 – Capital Automotive LP’s credit facility hit the secondary market on Tuesday, with the first- and second-lien term loans quoted above their original issue discounts, and Greektown Holdings LLC and Advanced Integration Technology LP started trading too.

Moving to the primary market, Spectrum Brands Inc. set the spread on its term loan B at the low end of guidance, and Ventia Finco Pty Ltd. finalized pricing on its U.S. term loan at the tight side of talk.

Also, Caesars Entertainment Operating Co. LLC, Eastern Power LLC, Unifrax, Crestwood Holdings LLC, Installed Building Products Inc., Floor & Decor Outlets of America Inc., LA Fitness (Fitness International LLC) and Chobani LLC disclosed price talk with launch.

Furthermore, DigiCert Inc. and Sterigenics-Nordion Holdings LLC surfaced with new deal plans.

Capital Automotive frees up

Capital Automotive’s credit facility began trading on Tuesday, with the $1,115,000,000 seven-year first-lien term loan (B1/B) quoted at 99¾ bid, par ¾ offered and the $690 million eight-year second-lien term loan (B3/CCC+) quoted at 99¼ bid, par ¼ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 300 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 600 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was reduced from Libor plus 350 bps.

The company’s $2,005,000,000 senior secured credit facility also includes a $200 million five-year revolver (B1/B).

Barclays is the left bookrunner on the deal that will be used to refinance existing bank debt, to fund a cash dividend to Brookfield Asset Management and its institutional partners and to pay related fees and expenses.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

Greektown hits secondary

Also breaking for trading was Greektown Holdings’ $400 million seven-year covenant-light first-lien term loan B (B), with levels seen at par bid, par ½ offered, a market source remarked.

Pricing on the loan is Libor plus 300 bps with a 25 bps step-down at 0.5 times deleveraging and a 0.75% Libor floor. The loan was sold at an original issue discount of 99.75 and includes 101 soft call protection for six months.

On Monday, the term loan was upsized from $375 million, the spread was lowered from Libor plus 325 bps, the step-down was added and the discount was changed from 99.5.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies Finance LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Greektown is a gaming, hotel, dining and entertainment facility in Detroit.

Advanced Integration breaks

Advanced Integration Technology’s $107 million six-year incremental first-lien term loan (B1/BB-) made its way into the secondary market too, with levels quoted at par ¼ bid, 101 offered, a market source said.

Pricing on the loan is Libor plus 550 bps with a step-down to Libor plus 475 bps on July 23 and a 1% Libor floor. The debt was issued at par and includes 101 soft call protection for six months.

UBS Investment Bank, Citigroup Global Markets Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund an acquisition.

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

BWIC announced

Also in trading, a $219 million Bid Wanted In Competition surfaced, with bids due at 10:30 a.m. ET on Wednesday, a trader remarked.

Some of the names in the portfolio are Aramark Corp., Berry Plastics Corp., Deluxe Entertainment Services Group Inc., Federal-Mogul Corp., First Data Corp., Las Vegas Sands LLC, RGIS Services LLC, Sprint, TransDigm Inc. and Wilsonart LLC.

There are about 97 loan issuers in the BWIC, the trader added.

Spectrum updates pricing

Switching to the primary market, Spectrum Brands finalized pricing on its $1,003,000,000 term loan B due June 23, 2022 at Libor plus 200 bps, the tight end of the Libor plus 200 bps to 225 bps talk, and moved up the signatures/commitments deadline to 5 p.m. ET on Thursday from 5 p.m. ET on Friday, according to a market source.

The term loan still has no floor and 101 soft call protection for six months.

RBC Capital Markets LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing U.S. term loan B from Libor plus 250 bps with a 0.75% Libor floor.

With the repricing, the company is asking to amend its credit agreement to synchronize the dates in the equity builder portions of the “Available Amount” with the dates used under the borrower’s senior notes due 2024, 2025 and 2026, the source said.

Closing is expected in April.

Spectrum Brands is a Middleton, Wis.-based consumer products company.

Ventia firms spread

Ventia set pricing on its roughly $362.4 million covenant-light term loan B due May 21, 2022 at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and allocations went out on Tuesday, a market source said.

As before, the term loan has a 1% Libor floor and an original issue discount of 99.5 on new money.

Barclays, ANZ, Goldman Sachs, Credit Suisse and JPMorgan are leading the loan that will be used with an Australian dollar covenant-light term loan B due May 21, 2022 to reprice an existing A$707 million term loan B, to pay a distribution to shareholders and to put cash on the balance sheet for future acquisitions.

Existing lenders were offered a 25 bps amendment fee.

Ventia is an Australian-based infrastructure services company.

Caesars discloses talk

Caesars Entertainment held its bank meeting on Tuesday, launching its $1,235,000,000 seven-year covenant-light term loan B at talk of Libor plus 275 bps to 300 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan B has 101 soft call protection for six months.

The Las Vegas-based casino-entertainment company’s $1,435,000,000 senior secured credit facility (Ba3/BB) also includes a $200 million five-year revolver.

Commitments are due at 5 p.m. ET on April 4.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used for exit financing, including to repay existing debt and to pay related fees and expenses.

Total opco debt is 2.8 times and net opco debt is 2.1 times. Total lease adjusted debt is 5.8 times and net lease adjusted debt is 5.5 times.

Eastern Power terms surface

Eastern Power released talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection through June 9 on its $1,646,912,314 senior secured term loan B due Oct. 2, 2023 that launched with an afternoon call, a market source said.

Morgan Stanley Senior Funding Inc. is leading the deal.

Proceeds will be used to amend and extend the company’s existing term loan B by two years.

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

Consenting lenders are being offered a 25 bps amendment fee.

Eastern Power is an owner of gas-fired electric generating stations.

Unifrax reveals guidance

Unifrax announced price talk on its $460 million U.S. seven-year senior secured term loan B and a $200 million-equivalent euro seven-year senior secured term loan B in connection with its lender call, a market source remarked.

The term loans are talked at Libor/Euribor plus 400 bps with an original issue discount of 99.5 and 101 soft call protection for six months, the source continued. The U.S. loan has a 1% Libor floor and the euro loan has a 0% floor.

Commitments are due on March 29, the source added.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, KeyBanc Capital Markets and ING are leading the deal (B2/B) that will be used to refinance existing debt.

Unifrax is a Tonawanda, N.Y.-based specialty materials platform focused on providing innovative thermal management, filtration and energy solutions for a variety of end markets and applications.

Crestwood holds call

Crestwood Holdings had its call in the afternoon, at which time lenders were presented with a $350 million senior secured term loan B due Dec. 31, 2022 that is talked at Libor plus 650 bps with a 1% Libor floor, an original issue discount of 98.5 and call protection of 102 in year one and 101 in year two for voluntary prepayments, according to a market source.

Commitments are due at 5 p.m. ET on April 4, the source said.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance the company’s existing term loans.

Closing is expected in early April.

Crestwood is a Houston-based company focused on natural gas storage.

Installed Building launches

Installed Building Products came out with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor and an original issue discount of 99 to 99.5 on its $300 million seven-year covenant-light term loan B (B1/BB) that launched with a morning bank meeting, according to a market source.

The term loan B has 101 soft call protection for six months.

The company’s $400 million senior secured credit facility also includes a $100 million five-year ABL revolver that is expected to have pricing ranging from Libor plus 125 bps to 175 bps based on excess availability, and an unused fee ranging from 25 bps to 37.5 bps based on utilization.

Commitments are due on March 31.

RBC Capital Markets, UBS Investment Bank and Jefferies Finance LLC are leading the deal that will be used by the Columbus, Ohio-based installer of insulation products to refinance about $96 million of term loan borrowings and about $125 million outstanding under a delayed-draw term loan and to add cash to the balance sheet.

Net leverage is 2.1 times.

Closing is expected during the week of April 3.

Floor & Decor sets talk

Floor & Decor launched with a call its $350 million first-lien term loan due September 2024 at talk of Libor plus 350 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 March 28, the source added.

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan from Libor plus 425 bps with a 1% Libor floor.

Floor & Decor is an Atlanta-based specialty retailer in the hard surface flooring market.

LA Fitness details emerge

LA Fitness held a lender call during the session to launch a repricing of its term loan B talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

In connection with the repricing, the company intends to pay down $100 million of the term loan B debt with revolver borrowings, bringing the term loan B size to about $1.03 billion.

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

Bank of America Merrill Lynch and MUFG are leading the deal that will reprice the existing term loan B down from Libor plus 500 bps with a 1% Libor floor.

LA Fitness is an Irvine, Calif.-based non-franchised fitness club operator.

Chobani seeks add-on

Chobani hosted a lender call to launch a $175 million add-on first-lien term loan (B1) talked at Libor plus 425 bps with a 1% Libor floor and a par issue price, according to market sources.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, TD Securities (USA) LLC and KeyBanc Capital Markets are leading the deal that will be used to help refinance an existing second-lien term loan.

Chobani is a Norwich, N.Y.-based producer of Greek yogurt.

DigiCert on deck

DigiCert set a bank meeting for 10:30 a.m. ET in New York on Thursday to launch a $260 million seven-year senior secured first-lien term loan that includes 101 soft call protection for six months, a market source remarked.

Jefferies Finance LLC is leading the deal.

The new term loan will be used to refinance the company’s existing capital structure, the source added.

DigiCert is a Lehi, Utah-based provider of Secure Sockets Layer certificates and managed Public Key Infrastructure solutions with emphasis on authentication and encryption.

Sterigenics readies loan

Sterigenics-Nordion scheduled a lender call for 10 a.m. ET on Wednesday to launch a $120 million incremental term loan due March 15, 2022, according to a market source.

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

Jefferies Finance LLC is leading the deal that will be used to refinance senior secured notes.

Sterigenics is a Deerfield, Ill.-based provider of contract sterilization, gamma technologies and medical isotopes.

Cologix closes

In other news, the purchase of a majority interest in Cologix Holdings Inc., a Denver-based data center and interconnection solutions provider, by Stonepeak Infrastructure Partners has been completed, a news release said.

To help fund the transaction, Cologix got a new $570 million senior secured credit facility that consists of a $75 million revolver (B2/B+), a $300 million seven-year covenant-light first-lien term loan (B2/B+), a $60 million 4.75-year delayed-draw for six months first-lien term loan (B2/B+) and a $135 million eight-year covenant-light second-lien term loan (Caa2/B-),

Pricing on the first-lien term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5, the delayed-draw term loan is priced at Libor plus 300 bps with a 0% Libor floor and a ticking fee of the full spread, and it was sold at a discount of 99.5, and the second-lien term loan is priced at Libor plus 700 bps with a 1% Libor floor, and it was issued at a discount of 99.

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

During syndication, pricing on the first-lien and delayed-draw loans was cut from talk of Libor plus 350 bps to 375 bps, and pricing on the second-lien term loan was trimmed from talk of Libor plus 750 bps to 775 bps.

Barclays, TD Securities (USA) LLC and Jefferies Finance LLC led the deal.

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