Industrial Container, Harland, Cooper-Standard, NCI Building, FLY, Alvogen, Deluxe break

By Sara Rosenberg

New York, April 27 – Industrial Container Services LLC set the spread on its first-lien term loan at the low end of guidance and Harland Clarke Holdings Corp. upsized its incremental term loan B-6, and then these loans made their way into the secondary market on Thursday.

Also, Cooper-Standard Automotive Inc. finalized the spread on its term loan B at the tight side of talk and NCI Building Systems Inc. firmed pricing on first-lien term loan at the high end of talk and then both of these loans freed to trade. Deals from FLY Leasing, Alvogen Pharma US Inc. and Deluxe Entertainment Services Group Inc. broke as well.

In more happenings, Misys Ltd. moved some funds between its U.S. and euro first-lien term loan and set the issue price on the tranches at the tight side of guidance, and trimmed pricing on its euro second-lien term loan while finalizing the original issue discount at the tight end of revised talk.

Additionally, Garda World Security Corp. revised the sizes of its term loan B and revolver, increased term loan pricing and set the original issue discount at the wide side of talk, and Orion Engineered Carbons lowered spreads on its U.S. and euro term loans and firmed the issue price on the tranches at the wide end of guidance.

Furthermore, TierPoint LLC finalized pricing on its second-lien term loan at the low end of talk, and Jacobs Douwe Egberts added a pricing step-down to its U.S. add-on term loan B and repricing of its existing U.S. term loan B.

And, Digicel International Finance Ltd., Consolidated Container Co., Boyd Corp., Caesars Entertainment Resort Properties LLC, Equian LLC, Transcendia, Kronos Inc. and Coronado Coal LLC released price talk with launch, Market Track came out with timing on the bank meeting for its credit facilities, and Mortgage Contracting Services surfaced with new deal plans.

Industrial Container firms, trades

Industrial Container Services finalized pricing on its $425 million seven-year first-lien term loan at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, a market source said.

As before, the term loan, of which $360 million is funded and $65 million is delayed-draw, has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $465 million in credit facilities (B2/B) also include a $40 million revolver.

By Thursday afternoon, the term loan began trading and levels were seen at 99¾ bid, par ½ offered, the source added. The funded and delayed-draw tranches trade as a strip.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company by Centerbridge.

Industrial Container is a Maitland, Fla.-based provider of steel industrial container reconditioning services.

Harland tweaked, frees up

Harland Clarke raised its incremental covenant-light first-lien term loan B-6 (B1/BB-) due February 2022 to $400 million from $360 million and left the original issue discount at 99.5, according to a market source.

The incremental term loan B-6 is priced at Libor plus 550 bps with a 1% Libor floor and has 101 soft call protection through August, all of which is in line with existing B-6 loan terms.

Recommitments were due at noon ET on Thursday and by late afternoon the loan began trading, with levels quoted at par bid, par ½ offered, the source said.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal that will be used for acquisition financing.

As a result of the incremental loan upsizing, the closing ABL facility draw will be decreased by a corresponding amount.

Harland Clarke is a San Antonio-based provider of media delivery, payment solutions and marketing services.

Cooper updated, tops par

Cooper-Standard Automotive firmed pricing on its $339 million covenant-light term loan B due November 2023 at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, according to a market source.

The loan still has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

After terms finalized, the term loan B began trading, with levels quoted at par ¼ bid, par ¾ offered, a trader remarked.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B from Libor plus 275 bps with a 0.75% Libor floor.

Closing is targeted for May 2.

Cooper-Standard is a Novi, Mich.-based supplier of systems and components for the automotive industry.

NCI sets spread, breaks

NCI Building Systems finalized pricing on its $144 million covenant-light first-lien term loan (Ba3/BBB-) due June 2022 at Libor plus 300 bps, the wide end of the Libor plus 275 bps to 300 bps talk, and kept the 1% Libor floor, original issue discount of 99.875 and 101 soft call protection for six months unchanged, a market source said.

With terms firmed up, the loan freed to trade during the session and levels were quoted at par ¼ bid, par ¾ offered, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing term loan due 2021 that is priced at Libor plus 325 bps with a 1% Libor floor.

NCI is a Houston-based manufacturer and marketer of metal products for nonresidential construction.

FLY hits secondary

FLY Leasing’s $448 million term loan B due February 2023 broke for trading as well, with levels seen at par bid, par ¼ offered, according to a trader.

Pricing on the loan is Libor plus 225 bps with no Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication the loan was upsized from $398 million.

RBC Capital Markets is leading the deal that will be used to extend an existing term loan from February 2022 and reprice the debt from Libor plus 275 bps with a 0.75% Libor floor, and, due to the recent upsizing, to purchase additional aircraft, making the upsizing leverage neutral.

FLY is a Dublin-based aircraft lessor.

Alvogen starts trading

Alvogen’s fungible $350 million incremental term loan (B3/B) due April 2, 2022 also freed up, with levels quoted at 99¼ bid, par offered, a market source said.

Pricing on the loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 99.126. The debt has 101 soft call protection for six months.

Jefferies Finance LLC is leading the deal that will be used to pay down ABL revolver borrowings and to fund a distribution to the parent company, Alvogen Group Inc.

Alvogen is a Pine Brook, N.J.-based developer and manufacturer of generic drugs and provider of contract manufacturing, development and research services to large branded pharma companies.

Deluxe frees to trade

Deluxe Entertainment’s fungible $200 million tack-on first lien term loan (B2/B-) due Feb. 28, 2020 emerged in the secondary market, with levels quoted at 99¾ bid, par ¼ offered, a trader remarked.

The tack-on loan is priced at Libor plus 550 bps with a 1% Libor floor, in line with the existing first-lien term loan, and it was sold at an original issue discount of 99.53. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance existing debt.

Deluxe is a Los Angeles-based provider of digital asset creation, management and distribution services.

Misys modified again

Back in the primary market, Misys increased its U.S. seven-year covenant-light first-lien term loan B to $3,582,000,000 from a revised size of $3.42 billion and an initial amount of $3.12 billion, downsized its euro seven-year covenant-light first-lien term loan B to €850 million from €1 billion, and set the original issue discount on the two tranches at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

Pricing on the U.S. first-lien term loan is Libor plus 350 bps with a 1% Libor floor, pricing on the euro first-lien loan is Euribor plus 325 bps with a 1% floor, and both loans have 101 soft call protection for six months.

The company also trimmed pricing on its €250 million eight-year covenant-light second-lien term loan to Euribor plus 700 bps from revised talk of Euribor plus 725 bps and initial talk in the range of Euribor plus 725 bps to 750 bps, and firmed the original issue discount at 99, the tight end of revised talk of 98.5 to 99 and tighter than initial talk of just 98.5, the source said. This tranche still has 1% floor.

The company’s credit facilities also include a $400 million five-year multi-currency revolver priced at Libor plus 350 bps with a 0% Libor floor, and a $980 million eight-year covenant-light second-lien term loan priced at Libor plus 725 bps with a 1% Libor floor and an original issue discount of 99.

Included in the second-lien loans is hard call protection of 102 in year one and 101 in year two.

Misys ticking fee

Misys’ term loans have a ticking fee of half the spread from days 31 to 60 and the full spread after that.

Previously in syndication, the U.S. second-lien term loan was upsized from $850 million and the euro second-lien term loan was downsized from €280 million.

The upsizing to the credit facilities were used to eliminate a planned super holdco term loan.

Other changes made previously to the deal were that pricing on the revolver and U.S. first-lien term loan was set at the low end of the Libor plus 350 bps to 375 bps talk, pricing on the euro first-lien term loan was cut from talk of Euribor plus 400 bps to 425 bps and the floor was increased from 0%, and pricing on the U.S. second-lien term loan was lowered from talk of Libor plus 775 bps to 800 bps and the discount was modified from 98.5.

Misys lead banks

Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading Misys’ credit facilities, with Morgan Stanley left lead on the U.S. term loan B, Citi left lead on the euro term loan B and Barclays left lead on the second-lien debt.

Proceeds will be used with preferred equity and equity to fund the acquisition of DH Corp. for C$25.50 per share in cash, including the assumption of all debt obligations including the issued convertible debentures, for a total enterprise value of about C$4.8 billion, and to refinance existing debt.

Closing is expected before the end of the third quarter, subject to court approval, the approval of DH’s shareholders and other customary conditions.

Misys, a Vista Equity Partners portfolio company, is a London-based provider of financial services software. DH is a Toronto-based financial technology provider.

Garda restructures

Garda World Security upsized its seven-year senior secured covenant-light term loan B to $1.08 billion equivalent from $980 million equivalent, with the debt split between a $1,006,000,000 tranche and a C$100 million tranche, according to a market source.

Also, pricing on the U.S. term loan was lifted to Libor plus 400 bps from Libor plus 350 bps, pricing on the Canadian term loan was raised to CDOR plus 475 bps from CDOR plus 425 bps and the original issue discount on both tranches was set at 99, the wide end of the 99 to 99.5 talk, the source said.

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

Subject to any of the existing senior notes declining an outstanding 101 change of control offer in connection with Rhône Capital’s acquisition of a majority equity interest in Garda, the new term loan B may be reduced by $330 million and term loan lenders will retain the difference between the original issue discount and par on any reduced amounts.

Garda trims revolver

Along with the changes to the term loan B, Garda downsized its revolver to $230 million from $240 million, the source continued.

Final commitments for the transaction are due at noon ET on Friday, the source added.

Barclays, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., TD Securities (USA) LLC and Societe Generale are leading the deal that will be used to help fund a refinancing and recapitalization.

Additional funds for the transaction will come from $500 million of senior notes, which were downsized from $630 million.

Garda is a Montreal-based provider of cash logistics and security solutions.

Orion trims pricing

Orion Engineered Carbons cut pricing on its $291 million first-lien senior secured term loan B due July 2021 to Libor plus 250 bps from Libor plus 275 bps and on its €334 million first-lien senior secured term loan B due July 2021 to Euribor plus 275 bps from Euribor plus 300 bps, and set the original issue discount on both loans at 99.875, the wide end of the 99.875 to par talk, a market source remarked.

The term loans still have a 0% floor and 101 soft call protection for six months.

Recommitments for the U.S. loan were due by the close of business on Thursday and recommitments for the euro loan are due at 11 a.m. UK times on Friday, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to reprice existing U.S. and euro term loan B debt from Libor/Euribor plus 300 bps with a 0.75% floor.

Orion Engineered Carbons is a Frankfurt-based producer of carbon black.

TierPoint second-lien firms

TierPoint set the spread on its $220 million eight-year covenant-light second-lien loan (Caa2/CCC+/B-) at Libor plus 725 bps, the low end of the Libor plus 725 bps to 750 bps talk, a market source said.

The second-lien term loan still has a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two, with the ability to redeem all of the debt with proceeds from a bond offering at 101 in the first year.

The company’s $1,095,000,000 in credit facilities also include a $175 million five-year revolver and a $700 million seven-year covenant-light first-lien term loan (B2/B+/BB) priced at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99.5. The first-lien term loan has 101 soft call protection for six months.

On Wednesday, pricing on the first-lien term loan was raised from talk of Libor plus 325 bps to 350 bps.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Fifth Third, ING, Barclays, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal, with RBC left on the first-lien and Credit Suisse left on the second-lien.

Proceeds will be used by the St. Louis-based provider of hybrid IT solutions to refinance existing term loans and a revolver.

Jacobs Douwe revised

Jacobs Douwe Egberts added a step-down to Libor plus 200 bps at less than 4 times leverage to its $350 million add-on term loan B and repricing of its existing $575 million term loan B, according to a market source.

Initial pricing on the add-on and repricing firmed in line with talk at Libor plus 225 bps with a 0% Libor floor and a par issue price.

The company is also getting a €200 million add-on term loan and repricing its existing €301 million term loan at Euribor plus 200 bps with a 0% floor and a par issue price, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used for acquisition financing and to reprice the existing U.S. term loan down from Libor plus 250 bps with a 0.75% Libor floor and the existing euro term loan down from Euribor plus 225 bps with a 0.75% floor.

Jacobs Douwe is a Netherlands-based coffee company.

Digicel reveals talk

Also on the new deals front, Digicel held its bank meeting on Thursday, launching its $635 million seven-year covenant-light term loan B at talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 9, the source said.

The company’s $1,035,000,000 in new credit facilities (Ba2/NA/B+) also include a $100 million revolver and a $300 million term loan A.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint lead arrangers on the deal and joint bookrunners with Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.

Proceeds will be used to refinance existing senior secured credit facilities.

Closing is targeted for late May, the source added.

Digicel is a Hamilton, Bermuda-based provider of communication services in the Caribbean and South Pacific regions.

Consolidated Container launches

Consolidated Container released talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $605 million seven-year senior secured covenant-light first-lien term loan B (B+) in connection with its bank meeting, a market source remarked.

The company’s $730 million in credit facilities also include a $125 million ABL revolver.

Commitments are due at 1 p.m. ET on May 10, the source added.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the acquisition of the company by Loews Corp. from Bain Capital Private Equity for about $1.2 billion, subject to customary purchase price adjustments.

Closing is expected this quarter, subject to customary conditions.

Consolidated Container is an Atlanta-based rigid plastic packaging manufacturer. Post-closing, the company will be a part of a newly created segment called Loews Packaging Group.

Boyd holds meeting

Boyd hosted its bank meeting and, in connection with the event, price talk on its $730 million first-lien term loan and $285 million second-lien term loan was announced, according to a market source.

The first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 1% 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 800 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $1.09 billion in credit facilities also include a $75 million revolver.

Commitments are due on May 11, the source added.

Antares Capital, Societe Generale and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the acquisition of Aavid Thermalloy.

Boyd, a Genstar Capital portfolio company, is a Modesto, Calif.-based designer and manufacturer of highly engineered, specialty material-based thermal management and environmental sealing solutions. Aavid is a Laconia, N.H.-based design engineering and manufacturing corporation focused on thermal management solutions.

Caesars Entertainment details

Caesars Entertainment Resort Properties launched on its call a $2,419,000,000 senior secured first-lien term loan (B1/CCC+) due October 2020 talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments from existing lenders are due at 5 p.m. ET on May 4 and from new lenders are due at 5 p.m. ET on May 5, the source added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan from Libor plus 600 bps with a 1% Libor floor.

Caesars Entertainment Resort, a wholly owned subsidiary of Caesars Entertainment Corp., is a Las Vegas-based owner of casinos.

Equian terms surface

Equian had its lenders’ presentation and released price talk on its $355 million in senior secured credit facilities, according to a market source.

Talk on the $30 million five-year revolver is Libor plus 375 bps to 400 bps with a 0% Libor floor, and talk on the $325 million seven-year covenant-light first-lien term loan B is Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, the source said.

Commitments are due on May 11.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc. and UBS Investment Bank are leading the deal that will be used to refinance existing debt and to fund general corporate purposes.

Equian is an Indianapolis-based payment integrity platform.

Transcendia first-lien talk

Transcendia launched at its bank meeting its $280 million seven-year first-lien term loan B at talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due on May 9, the source added.

The company’s $455 million in senior secured credit facilities also include a $50 million five-year revolver and a pre-placed $125 million eight-year second-lien term loan.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., KeyBanc Capital Markets, Bank of Ireland and Societe Generale are leading the deal that will be used to help fund the buyout of the company by GS Merchant Bank.

Transcendia is a Franklin Park, Ill.-based provider of custom engineered specialty films materials across a broad range of end-markets.

Kronos repricing

Kronos held a call, launching a $2,294,000,000 term loan B at talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 3, the source added.

Nomura, Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice an existing term loan B from Libor plus 400 bps with a 1% Libor floor.

Kronos is a Chelmsford, Mass.-based provider of workforce management software.

Coronado guidance emerges

Coronado Coal disclosed talk of Libor plus 650 bps to 700 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year on its $200 million covenant-light term loan B (B) that launched with a lender meeting in the morning, according to a market source.

Commitments are due on May 10, the source said.

Bank of America Merrill Lynch is leading the deal that will be used to fund a dividend.

Coronado Coal is a Beckley, W.Va.-based producer of high-quality metallurgical coal.

Market Track timing

Market Track set a bank meeting in New York for the morning of May 4 to launch its $255 million in first-lien credit facilities, a market source said.

As previously reported, the debt includes a $30 million revolver and a $225 million first-lien covenant-light term loan.

Along with the first-lien facilities, the company is getting a $95 million second-lien term loan that has been privately placed.

Antares Capital and Golub Capital are leading the deal that will be used to help fund the buyout of the company by Vista Equity Partners.

Chicago-based Market Track is a subscription-based provider of promotional and brand advertising data, analysis and insight services to advertising agencies, retailers and consumer product companies.

Mortgage Contracting on deck

Mortgage Contracting Services will hold a bank meeting at 1 p.m. ET in New York on Tuesday to launch a $390 million first-lien senior secured term loan, according to a market source.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company.

Mortgage Contracting Services is a Lewisville, Texas-based provider of critical specialized services to mortgage servicers and originators.

NBG closes

In other news, the buyout of NBG Acquisition Inc. by Sycamore Partners from Kohlberg & Co. has been completed, according to a news release.

To help fund the transaction, NBG got a new $260 million seven-year covenant-light first-lien term loan (B1/B) that is priced at Libor plus 550 bps with a 1% Libor floor, and was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

During syndication, the term loan was downsized from $265 million, pricing was increased from Libor plus 500 bps, the discount widened from 99 and the call protection was extended from six months.

Deutsche Bank Securities Inc. and KKR Capital Markets led the deal.

NBG Home is a supplier of affordable home decor products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.