Starwood, Orion Advisor break; Pike, Loparex, Clearwater, Mannington, SnapAV, Glass set talk

By Sara Rosenberg

New York, July 10 – Starwood Property Mortgage increased the size of its term loan B, firmed the spread at the low end of guidance and tightened the original issue discount before freeing up for trading on Wednesday, and Orion Advisor Solutions’ incremental term loan emerged in the secondary market as well.

In more happenings, Pike Corp., Loparex International Holding BV, Clearwater Paper Corp., Mannington Mills, SnapAV and Glass Mountain Pipeline Holdings LLC disclosed price talk with launch, and Grocery Outlet Inc. joined this week’s primary calendar.

Starwood reworked, trades

Starwood Property Mortgage raised its seven-year term loan B to $400 million from $350 million, finalized pricing at Libor plus 250 basis points, the low end of the Libor plus 250 bps to 275 bps talk, and moved the original issue discount to 99.75 from 99.5, a market source remarked.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Books closed at 11 a.m. ET on Wednesday and, later in the day, the term loan broke for trading, with levels quoted at par bid, par ˝ offered, a trader added.

J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to retire an existing $300 million term loan A, to repay $50 million of secured financing agreements and, as a result of the upsizing, for general corporate purposes.

Starwood Property Mortgage is a finance company.

Orion hits secondary

Orion Advisor Solutions’ $45 million incremental term loan due May 25, 2024 began trading too, with levels quoted at 99 bid, 99˝ offered, according to a market source.

Pricing on the incremental term loan is Libor plus 375 bps with a 0.75% Libor floor and an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the incremental term loan was revised to a stand-alone tranche from a fungible add-on to the company’s existing roughly $228 million term loan.

The existing term loan due May 25, 2024 is priced at Libor plus 350 bps with a 0.75% Libor floor.

Antares Capital is leading the deal, which will be used to fund an acquisition.

Closing was scheduled for Wednesday.

Orion Advisor Solutions, formerly known as NorthStar Financial Services Group LLC and a portfolio company of TA Associates, is a provider of SaaS-based platforms focused on accounting, reconciling, reporting and other back-office and administrative functions for asset managers.

Pike sets talk

Back in the primary market, Pike launched at its lenders’ presentation on Wednesday its $1.02 billion seven-year covenant-lite first-lien term loan B (B) at talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on July 19, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt, fund an acquisition and pay related fees and expenses.

Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.

Loparex launches

Loparex held its bank meeting in the morning and announced price talk on its $390 million seven-year first-lien term loan (B2) and $160 million eight-year second-lien term loan (Caa2), according to a market source.

Talk on the first-lien term loan is Libor plus 425 bps to 450 bps with a 0% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 850 bps with a 0% Libor floor and a discount of 98 to 98.5, the source said.

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

The company’s $600 million of senior secured credit facilities also include a $50 million five-year revolver (B2).

Commitments are due at 3 p.m. ET on July 22, the source added.

Jefferies LLC, Barclays and Nomura are leading the deal that will be used to help fund the buyout of the company by Pamplona Capital Management from Intermediate Capital Group.

Loparex is a manufacturer of silicone release liners for customers in a diverse range of technically demanding end markets, including medical, industrial, tapes, graphics, hygiene, label and composites.

Clearwater reveals guidance

Clearwater Paper came out with talk of Libor plus 325 bps to 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $300 million seven-year term loan B (Ba1/BB+) that launched with a lender call in the morning, a market source remarked.

Commitments are due on July 24.

J.P. Morgan Securities LLC is leading the deal, which will be used to refinance borrowings under an existing revolver.

The company is also putting in place a new $250 million asset-based revolver for working capital and liquidity needs.

Clearwater Paper is a Spokane, Wash.-based pulp and paper product manufacturer.

Mannington proposed terms

Mannington Mills launched at its bank meeting its $300 million seven-year term loan B (B1/BB-) at talk of Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

Commitments are due on July 24, the source said.

The company’s $425 million of credit facilities, which will be used to refinance existing debt, also include a $125 million asset-based revolver.

RBC Capital Markets and SunTrust Robinson Humphrey are leading the term loan, and BofA Securities Inc. is the left lead on the revolver.

Pro forma net leverage is 3.2x.

Closing is expected during the week of July 22.

Mannington is a Salem, N.J.-based manufacturer of flooring solutions to the commercial and residential construction markets.

SnapAV shops incremental

SnapAV held its bank meeting in the afternoon and released talk on its non-fungible $390 million incremental first-lien term loan (B3/B) at Libor plus 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due on July 24, the source added.

UBS Investment Bank, SunTrust Robinson Humphrey Inc. and BMO Capital Markets are leading the deal that will be used to help fund the acquisition of Control4 Corp., a Salt Lake City-based provider of smart home solutions, for $23.91 per share in cash, representing an aggregate value of about $680 million.

Hellman & Friedman, SnapAV’s majority shareholder since 2017, will invest about $247 million of additional new cash 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.

Glass Mountain talk

Glass Mountain Pipeline released talk of Libor plus 550 bps with a 1% Libor floor and an original issue discount of 98 on its roughly $129 million incremental term loan B (B-) due December 2024 that launched with a lender call during the session, a market source remarked.

With this transaction, pricing on the existing roughly $296 million term loan will be changed to Libor plus 550 bps with the same 1% Libor floor that it currently carries, and the incremental and existing term debt will get 101 soft call protection for one year, the source added.

Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used for general corporate purposes and to pay related fees and expenses.

The company is also seeking an amendment to its existing credit agreement to allow for the one-time incurrence of the incremental loan and to increase the capital expenditures basket to permit the use of projected internally generated cash flow, and lenders are being offered a 25 bps consent fee.

Commitments and consents are due at 5 p.m. ET on July 17, the source added.

Glass Mountain Pipeline, a Blackrock Global Energy & Power Infrastructure Fund portfolio company, is a multi-play crude oil transportation system located in the Stack/Merge, Granite Wash and Mississippi Lime plays.

Grocery on deck

Grocery Outlet set a lender call for 1 p.m. ET on Thursday to launch a repricing of its existing $475,187,500 first-lien term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal.

Grocery Outlet is an Emeryville, Calif.-based grocery store operator.

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