Gates, NPC, Chemours, Associated Asphalt free up; Unifrax, CCC, Chobani, Radio One revised

By Sara Rosenberg

New York, March 30 – Gates Global LLC reworked its U.S. and euro term loan sizes, added a pricing step-down to the U.S. tranche and firmed the issue price on the euro tranche at the tight end of guidance, and then the debt broke for trading on Thursday.

Also, NPC International Inc. modified the original issue discounts on its first-and second-lien term loans before freeing up, and deals from Chemours Co. and Associated Asphalt Partners LLC began trading as well.

In more happenings, Unifrax trimmed the spread on its U.S. term loan, added pricing step-downs to its U.S. and euro term loans and tightened original issue discounts on the tranches, and CCC Information Services Inc. upsized its first-lien term loan and tightened spreads and original issue discounts on its first-and second-lien loan tranches.

In addition, Chobani LLC revised the issue price on its add-on first-lien term loan, and Radio One Inc. lowered the spread on its term loan and firmed the issue price at the wide end of guidance.

Furthermore, Talen Energy Supply LLC, Nielsen Finance LLC and Northstar Travel Group released price talk with launch, and MaxLinear Inc. came out with timing and pricing guidance on its term loan B.

Gates restructured

Gates Global cut its amended and extended U.S. term loan B due March 2024 to $1,749,000,000 from $1,949,000,000 and left pricing at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 99.875, but added a step-down to Libor plus 300 bps at 2.85 times net leverage, a market source remarked.

Also, the company lifted its euro add-on first-lien term loan B due March 2024 to $500 million-equivalent from $300 million-equivalent, increased its amended and extended euro term loan B due March 2024 to €660 million from €193 million and finalized the issue price on these tranches at par, the tight end of the 99.875 to par talk, the source continued.

Pricing on the add-on euro term loan and the amended and extended euro term loan is still Euribor plus 350 bps with a 0% floor, and all of the term loans are still getting 101 soft call protection for six months.

Credit Suisse, Citigroup, Macquarie and Morgan Stanley are leading the deal (B2/B+).

Gates frees up

Recommitments for Gates’ term loans were due at noon ET on Thursday, and then the debt began trading, with the U.S. term loan seen at par bid, par ½ offered, another source added.

The amended and extended term loans are extending by two years and eight months existing U.S. and euro term loans that are priced at Libor/Euribor plus 325 bps with a 1% floor, and the add-on loan will be used to partially repay the existing first-lien term loan.

As of Dec. 31, the existing U.S. term loan B totaled $2,398,700,000.

Gates is a Denver-based aftermarket-focused manufacturer of power transmission belts and fluid power products.

NPC tweaked, trades

NPC International changed the original issue discount on its $580 million first-lien term B (B1/B) to 99.875 from 99.5 and on its $160 million second-lien term loan (Caa1/CCC) to 99.5 from 99, according to a market source.

As before, the first-lien term loan is priced at Libor plus 350 bps with a 1% Libor floor and has 101 soft call protection for six months, and the second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and has hard call protection of 102 in year one and 101 in year two.

Recommitments were due at noon ET on Thursday, the source said.

By late day, the debt had made its way into the secondary market, with the first-lien term loan quoted at par ½ bid, another source added.

KKR Capital Markets and Antares Capital are leading the $740 million of new term loans that will be used to refinance existing bank debt and 10.5% senior notes due 2020 and to fund acquisitions.

NPC is an Overland Park, Kan.-based consolidator and developer of restaurant brands.

Chemours starts trading

Chemours’ $940 million term loan B due May 12, 2022 also broke, with levels quoted at par 5/8 bid, 101 offered, a trader said.

Pricing on the term loan B is Libor plus 250 bps with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

The company is also getting a €400 million term loan B due May 12, 2022 priced at Euribor plus 225 bps with a 0.75% floor and issued at par. This tranche has 110 soft call protection for six months as well.

During syndication, the U.S. loan was downsized from $1,022,000,000, the euro loan was upsized from €325 million and the issue price on both term loans firmed at the tight end of the 99.75 to par talk.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used to reprice/refinance an existing term loan B due 2022 and to pay related fees and expenses.

Closing is expected on April 3.

Chemours is a Wilmington, Del.-based provider of performance chemicals.

Associated Asphalt breaks

Associated Asphalt’s $350 million seven-year first-lien term loan B emerged in the secondary market too, with levels quoted at par ½ bid, 101 offered, according to a market source.

Pricing on the term loan B is Libor plus 525 bps 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.

During syndication, the term loan was upsized from $325 million, the spread was lowered from talk of Libor plus 550 bps to 575 bps and the discount was tightened from 98.5.

Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets LLC, SunTrust Robinson Humphrey Inc. and Capital One are leading the deal that will be used to refinance existing debt.

Associated Asphalt is a Roanoke, Va.-based operator of an asphalt terminalling, storage and distribution network.

CCC changes surface

Back in the primary market, CCC Information Services raised its seven-year covenant-light first-lien term loan (B2/B) to $1 billion from $925 million, trimmed pricing to Libor plus 300 bps from talk of Libor plus 325 bps to 350 bps and modified the original issue discount to 99.75 from 99.5, while leaving the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

Furthermore, pricing on the company’s $375 million eight-year covenant-light second-lien term loan (Caa2/CCC) was reduced to Libor plus 675 bps from talk of Libor plus 700 bps to 725 bps and the discount was revised to 99.25 from 99, the source said. This tranche still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s now $1,475,000,000 senior secured credit facility also includes a $100 million five-year revolver (B2/B).

Jefferies Finance LLC and Nomura are leading the deal, with Jefferies left lead on the first-lien debt and Nomura left lead on the second-lien loan.

CCC being acquired

Proceeds from CCC Information’s credit facility will be used to help fund its buyout by Advent International from Leonard Green Partners and Texas Pacific Group and to refinance existing debt.

As a result of the first-lien term loan upsizing, the expected $30 million revolver at close is being eliminated and the equity capital is decreasing slightly, the source added.

Recommitments were due by 5 p.m. ET on Thursday.

Closing is expected early in the second quarter.

CCC Information is a Chicago-based provider of mission-critical infrastructure to the automotive insurance and claim industry through its integrated software, data, analytics and workflow management systems.

Unifrax revised

Unifrax lowered pricing on its $460 million U.S. seven-year senior secured term loan B to Libor plus 375 basis points from Libor plus 400 bps and added a step-down to Libor plus 350 bps when first-lien net leverage is less than 4 times, according to a market source.

Regarding the company’s $200 million-equivalent euro seven-year senior secured term loan B, a step-down was added to Euribor plus 375 bps when first-lien net leverage is less than 4 times, but initial pricing was left unchanged at Euribor plus 400 bps, the source said.

Other changes included moving the original issue discounts on the U.S. and euro term loans to 99.75 from 99.5 and removing the 12 month MFN sunset.

As before, the U.S. term loan has a 1% Libor floor, the euro term loan has a 0% floor, and both term loans have 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Thursday

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.

Chobani updated

Chobani tightened the issue price on its $175 million add-on first-lien term loan (B1/B) to 100.25 from 100, and left pricing at Libor plus 425 bps with a 1% Libor floor, a market source said.

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.

Radio One modifies loan

Radio One trimmed pricing on its $350 million six-year term loan B (B2/B) to Libor plus 400 bps from Libor plus 425 bps and set the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source remarked.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Guggenheim Securities LLC is leading the deal that will be used to refinance an existing roughly $345 million term loan due December 2018.

Secured net debt is 4.81 times and total net debt is 7.21 times.

Closing is expected on April 18.

Radio One is a Silver Spring, Md.-based urban-oriented, multimedia company.

Talen details emerge

Also in the primary market, Talen Energy Supply had its lenders’ presentation on Thursday, at which the company presented to lenders a new $400 million secured covenant-light term loan B-2 due April 2024 and a $600 million covenant-light term loan B-1 due July 2023, according to a market source.

The term loan B-2 is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, and the term loan B-1 is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor and a par issue price, the source said, adding that both loans have 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., MUFG, Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the term loan B-2, with Morgan Stanley the administrative agent. Morgan Stanley, Goldman Sachs, Deutsche Bank, MUFG and Credit Suisse are leading the term loan B-1, with Goldman the administrative agent.

Talen refinancing

Proceeds from Talen Energy’s term loan B-2 will be used with $500 million in new senior notes to refinance some existing debt, including 6.5% senior notes due 2018, 4.625% senior notes due 2019 and 4.6% senior notes due 2021, and to pay transaction fees and expenses.

Meanwhile, proceeds from the term loan B-1 will be used to amend and reprice an existing term loan B down from Libor plus 500 bps with a 1% Libor floor and revise the maturity from December 2023.

Consents/commitments for the term loans (Ba1/BB) are due at noon ET on April 6.

Talen Energy is an Allentown, Pa.-based competitive energy and power generation company.

Nielsen seeks repricing

Nielsen Finance launched during the session a $1,895,000,000 covenant-light term loan B-4 due Oct. 4, 2023 talked at Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B-3 from Libor plus 250 bps with no Libor floor and to pay related fees and expenses.

Existing lender commitments are due at 5 p.m. ET on Wednesday, and new lender commitments are due at 5 p.m. ET on April 6, the source added.

Closing is expected during the week of April 10.

Nielsen Finance is a New York and Netherlands-based provider of information and insights into what consumers watch and buy.

Northstar sets talk

Northstar Travel Group released original issue discount talk of 99 on its fungible $58 million add-on first-lien term loan that launched with a call on Thursday, a market source remarked.

The add-on loan is priced at Libor plus 625 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and all of the first-lien term loan debt is getting 101 soft call protection for six months, the source added.

Macquarie Capital (USA) Inc. is leading the deal that will be used to fund an acquisition.

Northstar Travel is a Secaucus, N.J.-based provider of business-to-business information, content, events, data, research, custom content and software dedicated to the global travel and meeting industries.

MaxLinear on deck

MaxLinear set a bank meeting for Friday to launch its previously announced $425 million secured covenant-light seven-year term loan B (Ba3/BB-), according to a market source.

Talk on the term loan B is Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source said.

Commitments are due on April 12.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used with cash on hand to fund the acquisition of Exar Corp. for $13.00 per share in cash. The total value is about $700 million, or $472 million net of Exar’s cash acquired.

Closing is expected in the second quarter, subject to regulatory approvals, a minimum tender requirement and customary conditions.

Projected last-12-months gross debt to EBITDA is 2.8 times without synergies.

MaxLinear is a Carlsbad, Calif.-based provider of integrated radio frequency and mixed-signal integrated circuits. Exar is a Fremont, Calif.-based designer and developer of high performance analog mixed-signal ICs and sub-system solutions.

Lantheus closes

In other news, Lantheus Medical Imaging Inc. closed on its $350 million credit facility (B2/B), split between a $275 million term loan due June 2022 and a $75 million five-year revolver, a news release said.

Pricing on the term loan is Libor plus 450 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, the discount on the term loan finalized at the tight end of the 99.5 to 99.75 talk.

The revolver is priced at Libor plus 350 bps with a 37.5 bps unused fee.

J.P. Morgan Securities LLC, Citizens Bank and Wells Fargo Securities LLC led the deal that was used to refinance existing debt.

Lantheus Medical is a North Billerica, Mass.-based developer, manufacturer, seller and distributor of diagnostic imaging agents.

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