Avolon, TTM Technologies break; DigiCert, PlayCore, Chobani, iStar deal updates emerge

By Sara Rosenberg

New York, Sept. 15 – Avolon’s term loan B-2 made its way into the secondary market on Friday with levels quoted above its issue price, and TTM Technologies Inc.’s first-lien term loan began trading as well.

Moving to the primary market, DigiCert Holdings Inc. upsized its first-and second-lien term loans, lowered pricing on the tranches and tightened original issue discounts, and PlayCore set pricing on its first-lien term loans at the low end of guidance and revised the issue price.

Also, Chobani LLC finalized pricing on its term loan B at the wide end of talk, and iStar Inc. firmed pricing on its term loan at the low side of guidance.

And, Multi-Color Corp. began circulating price talk on its term loan B in preparation for its upcoming bank meeting, and Telesat Canada, Ring Container Technologies and Platform Specialty Products Corp. (MacDermid Inc.) surfaced with new deal plans.

Avolon frees up

Avolon’s $5 billion senior secured term loan B-2 (Ba1/BBB-/BB+) due April 3, 2022 broke for trading on Friday and was seen quoted at par ¼ bid, par ½ offered, according to a trader.

Pricing on the term loan B-2 is Libor plus 225 basis points with a 0.75% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Thursday, the spread on the loan firmed at the low end of the Libor plus 225 bps to 250 bps talk.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B-2 from Libor plus 275 bps with a 0.75% Libor floor.

Closing is expected on or about Oct. 4.

Avolon is an Ireland-based provider of aircraft leasing and lease management services.

TTM hits secondary

TTM Technologies’ $350 million seven-year senior secured covenant-light first-lien term loan (Ba3/BBB-) also freed to trader, with levels quoted at 99¾ bid, par ½ offered, a trader said.

Pricing on the term loan is Libor plus 250 bps with a 0% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

On Wednesday, pricing on the loan was lowered from talk of Libor plus 300 bps to 325 bps.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used with $375 million of eight-year senior notes to repay an existing term loan B and revolver borrowings.

Closing is expected on Sept. 28.

TTM Technologies is a Costa Mesa, Calif.-based printed circuit board manufacturer.

DigiCert restructures

Switching to the primary market, DigiCert Holdings increased its seven-year first-lien term loan to $1.35 billion from $900 million, trimmed pricing to Libor plus 475 bps from Libor plus 500 bps and adjusted the original issue discount to 99.5 from 99, while keeping the 1% Libor floor and 101 soft call protection for six months unchanged, a market source remarked.

Furthermore, the company upsized its eight-year second-lien term loan to $500 million from $300 million, reduced pricing to Libor plus 800 bps from Libor plus 850 bps, tightened the discount to 99.5 from 99 and shortened the hard call protection to 101 for one year from 102 in year one and 101 in year two, the source continued. This tranche still has a 1% Libor floor.

With the upsizings, the company canceled plans for a $300 million first-lien term loan B-1 due Dec. 31, 2020 that was talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and is taking out a portion of series A stock, the source added.

The company’s now $1.94 billion of senior secured credit facilities also include a $90 million revolver.

DigiCert lead banks

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Jefferies LLC, Macquarie Capital (USA) Inc. and Goldman Sachs Bank USA are leading DigiCert’s credit facilities.

Recommitments are due at 5 p.m. ET on Monday and allocations are targeted for Tuesday morning.

The new bank debt will be used to help fund the acquisition of Symantec Corp.’s Website Security and related PKI solutions.

Closing is expected in the third quarter of fiscal 2018, subject to customary conditions.

DigiCert is a Lehi, Utah-based provider of scalable security solutions.

PlayCore tweaks deal

PlayCore finalized the spread on its $370 million seven-year first-lien term loan (B2/B) and $50 million delayed-draw first-lien term loan (B2/B) at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, moved the original issue discount to 99.75 from 99.5 and removed the MFN sunset, a market source said.

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

Commitments were due at 1 p.m. ET on Friday and allocations are targeted for Monday, the source added.

The company’s $635 million of senior secured credit facilities also include a $70 million asset-based revolver and a $145 million second-lien term loan (Caa2/CCC+).

Goldman Sachs Bank USA, KeyBanc Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Court Square Capital Partners.

PlayCore is a Chattanooga, Tenn.-based designer, manufacturer and marketer of commercial playground, park, recreation and specialty equipment and related complementary products.

Chobani firms spread

Chobani set pricing on its $821 million covenant-light term loan B due October 2023 at Libor plus 350 basis points, the high end of the Libor plus 325 bps to 350 bps talk, according to a market source.

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

Commitments were due at 4 p.m. ET on Friday, the source added.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, TD Securities (USA) LLC and KeyBanc Capital Markets LLC are leading the deal that will be used to reprice an existing term loan B from Libor plus 425 bps with a 1% Libor floor.

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

iStar updates deal

iStar finalized pricing on its $400 million senior secured term loan (Ba2/BB-/BB+) due September 2021 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, a market source remarked.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

J.P. Morgan Securities LLC, Barclays and Bank of America Merrill Lynch are leading the deal that will be used with cash on hand to refinance a $473 million term loan due July 2020 that is priced at Libor plus 375 bps with a 1% Libor floor.

The company is also planning to amend its existing secured revolving credit facility to increase the commitments to $300 million from $250 million, extend the maturity to September 2020 from March 2018 and provide additional flexibility for eligible collateral.

iStar is a New York-based investor and developer of real estate and real estate related projects.

Multi-Color floats talk

In more primary happenings, Multi-Color released talk of Libor plus 250 bps with a 0% Libor floor and an original issue discount of 99.5 on its $400 million seven-year covenant-light term loan B that is slated to launch with a bank meeting on Monday, according to a market source.

Commitments are due at noon ET on Wednesday, the source said.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, BMO Capital Markets and KeyBanc Capital Markets are leading the loan.

In addition to the term loan B, the Cincinnati-based label maker’s $1.05 billion of senior secured credit facilities (Ba2/BB+) include a $400 million five-year revolver and a $250 million five-year term loan A.

Proceeds will be used with $480 million in senior notes to fund the acquisition of the labels division of Constantia Flexibles GmbH for about $1.3 billion, split between cash and 3.4 million shares of Multi-Color stock, to refinance an existing revolver and for general corporate purposes.

Pro forma leverage for the transaction will be around 5 times net debt to EBITDA.

Closing is expected in the fiscal quarter ending Dec. 31, subject to customary conditions.

Telesat joins calendar

Telesat Canada emerged with plans to hold a lender call at 11 a.m. ET on Monday to launch a repricing of its $2,411,805,375 senior secured term loan B due 2023, a market source said.

Morgan Stanley Senior Funding Inc. is leading the transaction.

Telesat is an Ottawa-based fixed satellite services operator.

Ring Container on deck

Ring Container Technologies set a bank meeting for Tuesday to launch a $475 million seven-year covenant-light term loan that includes a $30 million delayed-draw tranche, a market source remarked.

Bank of America Merrill Lynch, BMO Capital Markets and Antares Capital are leading the deal that will be used to help fund the buyout of the company by MSD Partners LP from Carl Ring and his family.

Closing is expected in the fourth quarter.

Ring Container is an Oakland, Tenn.-based blow molder of high-density polyethylene and polyethylene terephthalate plastic bottles for the food service, retail food and other end-use markets.

Platform readies loans

Platform Specialty Products scheduled a lender call for 11:30 a.m. ET on Monday to launch a U.S. term loan B-7 due 2020 and a euro term loan C-6 due 2020, according to a market source.

The term loans have 101 soft call protection for six months, the source said.

Commitments from U.S. lenders are due at noon ET on Sept. 22 and euro commitments are due at 4 a.m. ET on Sept. 22.

Credit Suisse Securities (USA) LLC is leading the term loan B-7 and HSBC is leading the term loan C-6.

The new loans will be used to refinance about $1.4 billion equivalent in term B-5 due 2020 and term C-4 due 2020 loans.

Platform is a West Palm Beach, Fla.-based producer of high-technology specialty chemicals and a provider of technical services.

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