Justrite, Red Ventures, Consolidated Container, Mirion, Nuvei, Talen break; Heritage revised

By Sara Rosenberg

New York, June 28 – Justrite Safety Group set the spread on its first-lien term loans at the high end of guidance and Red Ventures LLC modified the original issue discount on its add-on term loan, and then both of these deals began trading on Friday.

Also, before breaking for trading, Consolidated Container Co. LLC finalized pricing on its incremental term loan at the wide side of talk and Mirion Technologies Inc. firmed the original issue discount on its add-on term loan B at the tight end of guidance.

Some other deals made their way into the secondary market during the session as well, including Nuvei Technologies Corp. and Talen Energy Supply LLC.

In other happenings, Heritage Power LLC reduced the size of its term loan B, and widened spread and original issue discount on the B tranche as well as on a term loan C.

Additionally, Nestle Skin Health joined the near-term primary calendar, and timing emerged for SnapAV’s incremental term loan.

Justrite firms, frees up

Justrite Safety Group set pricing on its $410 million seven-year first-lien term loan B (B2/B) and $50 million delayed-draw first-lien term loan B (B2/B) with two-year availability at Libor plus 450 basis points, the wide end of the Libor plus 425 bps to 450 bps talk, according to a market source.

The first-lien term loan debt still has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The funded and delayed-draw first-lien term loans were sold as a strip.

The company’s $622.5 million of credit facilities also include a $35 million revolver (B2/B) and a $127.5 million privately placed second-lien term loan.

On Friday, the strip of first-lien term loan debt broke for trading, with levels quoted at 99½ bid, par ¼ offered, another source added.

Citizens Bank and Golub are leading the deal that will be used to refinance existing debt.

Justrite is a Des Plaines, Ill.-based manufacturer and supplier of non-personal protective equipment solutions for industrial and compliance-oriented end markets. The company was acquired by Audax Group in 2015.

Red Ventures tweaked, trades

Red Ventures changed the original issue discount on its fungible $425 million covenant-lite add-on term loan due November 2024 to 99.5 from the 99.25 area, a market source said.

The add-on term loan is priced at Libor plus 300 bps with a 0% Libor floor.

On Friday, the add-on term loan freed up and levels were seen at 99¾ bid, par 1/8 offered, a trader added.

Bank of America Merrill Lynch, Fifth Third, PNC, MUFG, Regions, Capital One, Citigroup Global Markets Inc., Barclays and Citizens are leading the deal that will be used to repay revolver borrowings.

Red Ventures is a Fort Mill, S.C.-based technology-enabled customer acquisition platform.

Consolidated updated, breaks

Consolidated Container firmed pricing on its $250 million seven-year senior secured covenant-lite incremental term loan (B2/B+) at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, a market source remarked.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

During the afternoon, the incremental term loan began trading, with levels quoted at 99½ bid, par offered, another source added.

Citigroup, Wells Fargo Securities LLC, MUFG, Barclays and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund the acquisition of Tri State Distribution Inc., a Sparta, Tenn.-based retail pharmaceutical packaging solutions provider.

Closing is expected during the week of July 8.

Consolidated Container is an Atlanta-based rigid plastic packaging manufacturer.

Mirion sets OID, trades

Mirion Technologies finalized the original issue discount on its fungible $34 million covenant-lite add-on term loan B due March 6, 2026 at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

The add-on term loan is priced at Libor plus 400 bps with a 0% Libor floor and has 101 soft call protection through September.

In the afternoon, the add-on term loan B freed up and levels were quoted at par bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund tuck-in acquisitions and pay related fees and expenses.

Closing is expected during the week of July 8.

Mirion Technologies is a provider of radiation detection, measurement, analysis and monitoring products to nuclear power, medical, military, and homeland security markets.

Nuvei hits secondary

Nuvei Technologies’ bank debt also broke, with the $619 million first-lien term loan (B2/B-) quoted at 98½ bid, 99 offered and the $225 million second-lien term loan (Caa2/CCC) quoted at 98 bid, 99 offered, a trader said.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 98.5. The tranche has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 900 bps with a 1% Libor floor and was issued at a discount of 98. This loan has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was increased from talk in the range of Libor plus 425 bps to 450 bps, the discount was revised from 99 and the call protection was extended from six months, and pricing on the second-lien loan was lifted from Libor plus 850 bps. Additionally, the Libor floor on both term loans was changed from 0%.

The company’s $894 million of credit facilities also include a $50 million revolver.

BMO Capital Markets, Antares Capital and Capital One are leading the deal that will be used to fund the acquisition of SafeCharge International Group Ltd. for $5.55 per ordinary share, or about $889 million.

Nuvei is a Montreal-based payment technology company. SafeCharge is a Guernsey-based provider of omni-channel payments services.

Talen tops issue price

Talen Energy Supply’s $500 million seven-year term loan B (BB) hit the secondary market as well, with levels quoted at 99 3/8 bid, 99 7/8 offered, a trader remarked.

Pricing on the term loan is Libor plus 375 bps with a 0% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

J.P. Morgan Securities LLC, Citigroup, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding, MUFG and Natixis are leading the deal that will be used to help repay the company’s term loan B-1 and term loan B-2 and to pay transaction fees and expenses.

Other funds for the transaction will come from $470 million of senior secured notes due 2028 and cash on hand.

Talen Energy is a The Woodlands, Tex.-based energy and power generation company.

Heritage Power reworked

Back in the primary market, Heritage Power trimmed its seven-year term loan B to $520 million from $550 million, raised pricing on the term loan B and on a $61.1 million seven-year term loan C to Libor plus 600 bps from Libor plus 475 bps, and changed the original issue discount on both term loans to 98 from 98.5, according to a market source.

As before, the term loans, which are being sold as a strip, have a 0% Libor floor and 101 soft call protection for six months.

The company’s now $626.1 million of credit facilities also include a $45 million five-year revolver.

Commitments are due at 4 p.m. ET on Tuesday, extended from 4 p.m. ET on Friday, the source said.

Jefferies LLC and Morgan Stanley Senior Funding are leading the deal that will be used to fund commercial letters of credit, to repay existing debt, for general corporate purposes at the parent company, GenOn Holdings LLC, and to pay transaction related expenses. The dividend component was removed from the use of proceeds with the term loan B downsizing, the source added.

Heritage is an owner of natural gas and oil-fueled power generation facilities.

Nestle Skin on deck

Nestle Skin Health set a bank meeting in London for Monday and a bank meeting at 10 a.m. ET in New York for Tuesday to launch a CHF 2.47 billion U.S. equivalent (about $2.53 billion) seven-year covenant-lite first-lien term loan and a CHF 1,075,000,000 euro equivalent (about €970 million) seven-year covenant-lite first-lien term loan, according to a market source.

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

Commitments are due at 5 p.m. ET on July 16.

The company is also getting CHF 500 million revolver, a pre-placed CHF 945 million U.S. equivalent second-lien term loan and a pre-placed CHF 405 million euro equivalent second-lien term loan.

Credit Suisse, Deutsche Bank, Goldman Sachs, Barclays, Bank of America Merrill Lynch, RBC Capital Markets, Mizuho, Credit Agricole, Jefferies LLC and UBS Investment Bank are leading the deal, with Credit Suisse left on the U.S. loan and Deutsche left on the euro loan.

The new debt will be used to help fund the buyout of the company by a consortium led by EQT and ADIA from Nestle SA for an enterprise value of CHF 10.2 billion.

Nestle Skin Health is a Lausanne, Switzerland-based skincare company.

SnapAV timing surfaces

SnapAV scheduled a bank meeting for 12:30 p.m. ET in New York on July 10 to launch its previously announced $390 million incremental first-lien term loan (B3/B), a market source remarked.

UBS Investment Bank, SunTrust Robinson Humphrey Inc. and BMO Capital Markets are leading the loan that will be used to help fund the acquisition of Control4 Corp. for $23.91 per share in cash, representing an aggregate value of about $680 million.

Private equity investment firm Hellman & Friedman, SnapAV’s majority shareholder since 2017, will invest additional equity as part of the transaction and be the majority shareholder of the combined company.

Closing is expected in the second half of 2019, subject to customary conditions, including regulatory approvals and approval by Control4 shareholders.

SnapAV is a Charlotte, N.C.-based manufacturer and primary source of A/V, surveillance, networking and remote management products for professional integrators. Control4 is a Salt Lake City-based provider of smart home solutions.

© 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.