Air Methods upsizes, as dealers make way for busy post-Easter week

By Paul A. Harris

Portland, Ore., April 13 – In the loan market Air Methods Corp. upsized its seven-year term loan B (B1/B+) to $1.13 billion from $1.07 billion as it shifted $60 million of proceeds to the loan from its concurrent high yield bond deal.

Meanwhile dealers set bank meetings for the early part of the week ahead, promising another active week in the leveraged loan market.

Air Methods upsizes

Air Methods Corp. upsized its seven-year term loan B (B1/B+) to $1.13 billion from $1.07 billion as it shifted $60 million of proceeds to the loan from its concurrent high-yield bond deal, according to a market source.

The shift sees a downsizing of the eight-year senior notes (Caa1/CCC+) to $500 million from $560 million.

Term loan commitments were due at 11 a.m. ET on Thursday.

The bonds, which come with three years of call protection, are talked to yield 7½% to 7¾% and are expected to price today following the mid-morning wrap up of the roadshow on the West Coast of the United States.

The term loan is talked at Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99 and comes with 101 soft call protection for six months.

The company’s credit facility, now sized at $1.255 billion (from $1.195 billion), also includes a $125 million five-year revolver.

Morgan Stanley & Co. LLC, RBC Capital Markets, Barclays, Jefferies LLC and Citigroup Global Markets Inc. are managing the bond sale.

RBC Capital Markets, Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets and Jefferies Finance LLC are the lead banks on the credit facility.

NBG finalizes pricing

NBG Acquisition Inc. finalized pricing on its $265 million seven-year covenant-light first-lien term loan (B1/B) on Friday, according to a market source.

The deal is priced with a 550 basis points spread to Libor atop a 1% Libor floor at 98.

The spread comes wide of the Libor plus 500 bps spread talk. The offer price is cheap to price talk of 99.

The term loan includes 101 soft call protection for six months.

It is expected to close during the last week of April.

Deutsche Bank Securities Inc. and KKR Capital Markets are the bookrunners on the deal.

Commitments are due at noon ET on April 11, the source said.

Proceeds will be used to help fund the buyout of the company by Sycamore from Kohlberg & Co.

NBG Home is a supplier of affordable home decor products.

Zest finalizes terms

Zest Holdings LLC set final terms on its $268 million term loan B due August 2023 (B3/B) at a 425 basis points spread to Libor atop a 1% Libor floor at 99.75, according to a market source.

The spread comes at the wide end of the Libor plus 400 to 425 bps spread talk. The reoffer price comes on top of price talk.

The term loan B has 101 soft call protection for six months and a secured net leverage covenant.

The deal is set to close during the week ahead, the source said, adding that Tuesday is the targeted closing date.

Deutsche Bank Securities Inc., Citizens Bank and Fifth Third are the bookrunners on the deal.

Proceeds will be used to merge an existing $218 million term loan B due August 2020 with a $50 million incremental term loan B into one fungible tranche.

Everi Payments talk

Everi Payments Inc. talked its $820 million seven-year senior secured first-lien term loan with a 450 basis points to 475 bps spread to Libor atop a 1% Libor floor at 99, according to a market source.

Included in the term loan is 101 soft call protection for six months and a maximum secured net leverage covenant.

Commitments are due April 27.

Jefferies Finance LLC is the bookrunner on the deal.

The $855 million credit facility also includes a $35 million five-year revolver.

Proceeds will be used to refinance a roughly $462.3 million first-lien term loan due 2020 and $335 million of senior secured notes due 2021.

The company said in a news release that it expects the proposed refinancing transaction to lower its annual cash interest expense, enhance its financial flexibility and extend its maturity schedule.

MHS sets talk

Material Handling Systems Inc. (MHS) talked its $240 million term loan B with a 500 basis points spread to Libor atop a 1% Libor floor at 99, according to a market source.

Commitments are due April 26. The deal is set to fund and close on May 1.

RBC Capital Markets is the lead arranger and bookrunner on the transaction.

The $265 million credit facility (B2/B) also includes a $25 million revolver.

TH Lee is acquiring MHS, a Louisville, Ky.-based provider of advanced parcel sortation systems, engineering, software controls, and equipment manufacturing for many of the top logistics and e-Commerce companies in the world.

TeleGuam sets final pricing

GTA TeleGuam set final pricing on $170 million of credit facilities, according to a market source.

The deal allocated on Thursday.

It includes a $15 million five-year revolver (B1/BB-) that priced at Libor plus 500 basis points with a 0% Libor floor. The revolver, which includes a 100 bps upfront fee, priced at par, on top of final spread talk; earlier talk was Libor plus 450 bps to 475 bps.

A $130 million six-year term loan (B1/BB-) priced at Libor plus 500 bps atop a 1% Libor floor. The term loan, which priced at 98.5, came on top of final price and spread talk; earlier spread talk was Libor plus 450 bps to 475 bps. Earlier price talk was 99.

In addition, a $25 million seven-year second-lien term loan (Caa1/B-) priced at Libor plus 850 bps atop a 1% Libor floor. The second-lien piece, which priced at 98, also came on top of final spread talk. Earlier talk was Libor plus 800 bps to 825 bps.

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

The credit agreement has a total net leverage covenant.

BNP Paribas Securities Corp. was the lead bank on the $170 million credit facility.

Proceeds will be used to help fund the buyout of the company by Huntsman Family Investments from Advantage Partners.

TeleGuam is a Tamuning, Guam-based provider of telecommunications services.

Misys lender meeting

Misys Ltd. plans to participate in lender presentations on Tuesday in London and on Friday, April 21 in New York City, according to a market source.

The transaction at hand includes $4.6 billion of senior secured credit facilities featuring a $400 million revolver and $4.2 billion of term loan debt.

Morgan Stanley Senior Funding, Inc., Citigroup Global Markets Limited, Barclays, Macquarie Capital (USA) Inc., and Nomura Securities International, Inc. are the leads.

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

FLY Leasing for Monday

FLY Leasing plans to meet with lenders on Monday, according to a market source.

The Dublin-based aircraft lessor is seeking to reprice about $398 million of its term loan B due 2022, which was previously repriced in October and November of 2016.

RBC Capital Markets LLC is leading the effort.

Nautilus Power $575 million term B

Nautilus Power, LLC plans to commence an effort to syndicate a $575 million first-lien term loan B at a lender meeting scheduled for Tuesday, according to a market source.

Morgan Stanley Senior Funding, Inc. is the arranger.

The $650 million senior secured credit facility also includes a $75 million revolver.

Proceeds will be used to recapitalize the business in connection with Carlyle Power Partners’ acquisition, including the refinancing of existing debt.

Alvogen Pharma meets Tuesday

Alvogen Pharma US Inc. plans to roll out a $350 million incremental term loan due April 2, 2022 at a 1:30 p.m. ET lender meeting on Tuesday, according to a market source.

Jefferies Finance LLC is the lead on the deal.

The deal will come with six months of soft call protection at 101.

Commitments will be due at 5 p.m. ET on April 26.

Proceeds will be used to pay down ABL revolver borrowings and fund general corporate purposes, including a restricted payment, the source said.

TierPoint sets bank meeting

Arrangers set a Tuesday bank meeting for TierPoint, LLC's $920 million of credit facilities, according to a market source.

The deal includes a $700 million first-lien loan via left bookrunner RBC Capital Markets LLC, and a $220 million second-lien loan via left bookrunner Credit Suisse Securities (USA) LLC.

The data center services provider plans to use the proceeds to refinance its existing credit facilities.

APC Aftermarket meeting Tuesday

APC Aftermarket plans to participate in a bank meeting on Tuesday, according to a market source.

Left arranger Jefferies LLC and joint arranger Goldman Sachs & Co. are leading an effort to syndicate a $315 million seven-year first-lien term loan, which comes with six months of call protection, at 101.

The $515 million facility also includes a $75 million asset-based revolver.

There is also a $125 million second-lien term loan that will be privately placed.

Proceeds will be used to fund the acquisition and merger of AP Exhaust Products, Inc. and CWD, LLC, to create APC Aftermarket, an emissions supplier in the automotive, heavy-duty, and performance aftermarkets as well as a leading full-line distributor and supplier of aftermarket brake and chassis components.

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