Mitel revisions surface; Westinghouse, Ball Metalpack, ProFrac, Bomgar release price talk

By Sara Rosenberg

New York, July 11 – Mitel Networks Corp. on Wednesday increased the size of its first-lien term loan, and decreased the size, widened the original issue discount and sweetened the call protection on its second-lien term loan.

In more happenings, Westinghouse Electric Co. (Brookfield WEC Holdings Inc.), Ball Metalpack, ProFrac Services LLC and Bomgar revealed price talk with launch, and Navistar Financial Corp., Nautilus Power LLC and Parts Town (PT Holdings LLC) joined this week’s calendar.

Mitel restructures

Mitel Networks lifted its seven-year first-lien term loan to $1.12 billion from $1.02 billion and left price talk at Libor plus 450 basis points to 475 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

Also unchanged on the first-lien term loan was the 101 soft call protection for six months.

Regarding the eight-year second-lien term loan, it was trimmed to $260 million from $360 million, the discount was modified to 98 from 99 and the hard call protection was revised 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.

Spread talk on the second-lien term loan remained at Libor plus 850 bps to 875 bps with a 0% Libor floor.

The company’s $1.48 billion of senior secured credit facilities also include a $100 million revolver.

Mitel funding buyout

Mitel’s credit facilities will be used with up to $700 million of equity to fund its acquisition by Searchlight Capital Partners LP for $11.15 per common share in cash. The all-cash transaction is valued at about $2 billion, including net debt.

Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and TD Securities (USA) LLC are leading the debt.

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

Closing on the buyout is expected during the second half of this year, subject to customary conditions, including receipt of shareholder, regulatory and court approvals.

Mitel is an Ottawa-based provider of communications software solutions.

Westinghouse sets talk

Westinghouse Electric held its bank meeting on Wednesday and announced price talk on its $2.63 billion seven-year first-lien term loan (B2/B) and $450 million eight-year second-lien term loan (Caa1/B-), a market source remarked.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 0.75% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 750 bps with a 0.75% Libor floor and a discount of 98.5, the source added.

As previously reported, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

Commitments are due at 5 p.m. ET on July 25.

Westinghouse being acquired

Westinghouse’s term loans will be used to help fund its acquisition by Brookfield Business Partners LP for about $4.6 billion.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., BMO Capital Markets, RBC Capital Markets, Barclays and Credit Agricole are leading the $3.08 billion in term loans, with Credit Suisse the left lead on the first-lien loan and Goldman Sachs the left lead on the second-lien loan.

Closing is expected in the third quarter of 2018, subject to bankruptcy court approval and customary conditions, including regulatory approvals.

Westinghouse is a Cranberry Township, Pa.-based provider of technology and infrastructure services to a nuclear reactor fleet.

Ball Metalpack guidance

Ball Metalpack came out with talk on its $375 million seven-year first-lien term loan (B1/B) and $165 million eight-year second-lien term loan (B3/CCC+) shortly before its afternoon bank meeting kicked off, according to a market source.

The first-lien term loan is talked at Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 850 bps to 875 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 said.

The company’s $665 million of credit facilities also include a $125 million five-year ABL revolver.

Commitments are due at 5 p.m. ET on July 24, the source added.

Ball Metalpack leads

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Mizuho and Stifel are leading Ball Metalpack’s credit facilities, with Goldman the left lead on the first-lien loan and Bank of America the left lead on the second-lien.

The new debt will be used to form Ball Metalpack via a joint venture between Ball Corp. and Platinum Equity Capital Partners.

As part of the joint venture agreement agreement, Ball will contribute its U.S. steel food and aerosol packaging manufacturing assets to the company, and in return will receive more than $600 million in pre-tax proceeds and will retain a 49% interest in Ball Metalpack, for a total value of about $675 million.

Ball Metalpack is a manufacturer of tinplate food and aerosol cans.

ProFrac proposed terms

ProFrac Services launched on its afternoon call its $250 million five-year senior secured term loan B (B3/B) at talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year, a market source said.

The term loan has step-ups to Libor plus 475 bps at 2 times total net leverage and to Libor plus 500 bps at 2.5 times net leverage, and step-downs to Libor plus 425 bps at less than 1.5 times total net leverage and to Libor plus 400 bps at less than 1 times total net leverage.

Commitments are due at 5 p.m. ET on July 25, the source added.

Barclays is leading the deal that will be used to refinance existing debt, to partially repay perpetual preferred stock, for general corporate purposes including capital expenditures, and for fees and expenses.

ProFrac is a Fort Worth, Texas-based oil and gas services company.

Bomgar floats OID

Bomgar held its call in the afternoon, launching its $105 million incremental first-lien term loan (B2/B-) with original issue discount talk of 99.5, according to a market source.

The incremental term loan is priced at Libor plus 400 bps with a 0% Libor floor.

Commitments from existing lenders are due at 4 p.m. ET on Monday and commitments from new lenders are due at 4 p.m. ET on July 18, the source added.

Jefferies LLC is leading the deal that will be used to help fund the acquisition of Avecto, a provider of endpoint privilege management.

Closing is expected on July 31.

Bomgar is a provider of remote support and privileged access management solutions to enterprise customers.

Navistar on deck

Also in the primary market, Navistar Financial scheduled a lender call for Thursday to launch a $400 million seven-year term loan B (B-/B+) talked at Libor plus 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on July 25, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes and to fund a distribution to shareholders.

Navistar is a Lisle, Ill.-based manufacturer and seller of commercial and military trucks, buses and diesel engines and a provider of service parts for trucks and trailers.

Nautilus joins calendar

Nautilus Power will hold a lender call at 11 a.m. ET on Thursday to launch a fungible $85 million incremental term loan B, a market source said.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used with new cash equity from sponsor Carlyle Power Partners to fund the $115 million acquisition of Rock Springs units 1 & 2 from Old Dominion Electric Cooperative.

Carlyle currently owns Rock Springs units 3 & 4 and operates units 1 & 2 on behalf of Old Dominion.

Nautilus is a Massachusetts-based wholesale power generation and marketing company.

Parts Town plans call

Parts Town set a call for 11:30 a.m. ET on Thursday for loan lenders, according to a market source.

Jefferies LLC is leading the deal.

Parts Town is an Addison, Ill.-based OEM parts distributor and service provider to the foodservice equipment market.

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