Avantor upsizes dollar loan; Platform Specialty finalizes terms; Time launches $764 million

By Paul A. Harris

Portland, Ore., Sept. 22 – In Friday's leveraged loan market, Avantor, Inc. upsized its dollar-denominated seven-year term loan while downsizing its concurrent multi-tranche bond deal.

Platform Specialty Products Corp. (MacDermid Inc.) set final terms on a resized $1.43 billion equivalent of term loan debt.

And Time Inc. launched an extension of $764 million of bank debt.

Avantor upsizes dollar loan

Avantor upsized its dollar-denominated seven-year term loan to $1,953,000,000 from $1,802,000,000, according to a market source.

A concurrent multi-tranche bond deal was downsized to $4.1 billion equivalent from $4.25 billion equivalent.

The euro-denominated seven-year term loan size remains unchanged at €1 billion. It had previously been upsized from €500 million.

Pricing on the U.S. term loan remained at Libor plus 400 basis points with a 1% Libor floor, and pricing on the euro term loan is still Euribor plus 425 bps with a 0% Euribor floor.

Reoffer prices on both tranches were set at 98.5, the rich end of the 98 to 98.5 revised price talk, which had cheapened from earlier talk of 99.

Both tranches come with 12 months of soft call protection at 101. Call protection was extended from six months.

The company’s credit facilities (B2/B/BB) also include a $250 million revolver.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC and Jefferies LLC are the leads on the debt.

Proceeds will be used to help fund the acquisition of VWR International LLC for $33.25 in cash per share, reflecting an enterprise value of about $6.4 billion, and fund a distribution to equity holders.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Following the closing, New Mountain Capital will be the lead shareholder of the combined company.

Platform Specialty finalizes terms

Platform Specialty (MacDermid Inc.) set final terms on a resized $1.43 billion equivalent of term loan debt (B2/BB-), according to a market source.

A downsized $680 million term loan B-7 due 2020 is priced at Libor plus 250 basis points, inside of the Libor plus 275 bps to 300 bps spread talk. The spread floats atop a 1% Libor floor. The loan priced at par. The loan was downsized from $706 million.

An upsized €630 million term loan C-6 due 2020 is priced with a 250 bps spread to Euribor atop a 0.75% Euribor floor, also at par. The spread came inside of the Euribor plus 275 bps spread talk The C-6 tranche was upsized from €611 million.

Price talk on both tranches was par.

The term loans include 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the lead bank on the term loan B-7, and HSBC is the lead bank on the term loan C-6.

Proceeds will be used to refinance a $606 million term loan B-5 due 2020 priced at Libor plus 350 bps with a 1% Libor floor and a €695 million term loan C-4 due 2020 priced at Euribor plus 325 bps with a 1% floor.

U.S. commitments are due at noon ET on Friday, and euro commitments are due at 4 a.m. ET on Friday.

Time launches extension

Time launched an extension of $764 million of bank debt (Ba2/BB-) on Friday.

The institutional tranche is a $464 million seven-year senior secured term loan B priced at Libor plus 350 basis points atop a 1% Libor floor at 99.5, with soft call protection reset at 101 for six months.

Commitments are due at noon ET on Oct. 2.

Citigroup Global Markets Inc. is the left lead arranger and administrative agent. Morgan Stanley, BofA Merrill Lynch, Barclays, BNP Paribas and JPMorgan are also joint lead arrangers.

The deal includes a $300 million five-year revolver.

There is also an incremental facility with a $350 million starter basket with additional amounts subject to a net secured leverage ratio of 2.5-times.

The term loan features a springing maturity if more than $100 million of the company's senior notes due 2022 are still outstanding 91 days prior to April 15, 2022.

There are mandatory prepayments as designated in the existing credit facility.

International Car Wash resizes

International Car Wash Group shifted $25 million of proceeds to the first-lien tranche from the second-lien tranche of its $650 million two-part term loan.

The seven-year first-lien term loan (B1/B) is upsized to $475 million from $450 million. The eight-year second-lien term loan (Caa1/CCC+) is downsized to $175 million from $200 million.

Pricing on the first-lien term loan is Libor plus 375 basis points, the tight end of the 375 bps to 400 bps spread talk. The deal priced at 99.75, rich to price talk of 99.5. The 1% Libor floor remains unchanged.

Pricing on the second-lien term loan is Libor plus 750 bps, inside of 775 to 800 bps spread talk. The reoffer price is 98.5, on top of price talk. The second lien loan retains its 1% Libor floor.

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.

A proposed margin step-down was removed from the deal.

The company’s $725 million of senior secured credit facilities also include a $75 million revolver (B1/B).

Goldman Sachs Bank USA, Jefferies LLC, Barclays and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Roark Capital Group from TDR Capital LLP.

Closing is expected in the fourth quarter.

American Addiction hikes price

American Addiction Centers increased the price of its fungible $65 million incremental first-lien term loan due June 30, 2023 (B3/B-) to 99 from 98.5.

Final commitments were due Friday.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and BMO Capital Markets are the leads on the deal.

Pricing on the deal remains Libor plus 675 basis points with a 1% Libor floor, in line with existing term loan pricing, and the new debt is talked with an original issue discount of 98.5, the source said.

The incremental term loan has a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Call protection on the incremental loan matches existing term loan call protection of non-callable until June 2018, then at 102 for a year and 101 for a year.

Proceeds will be used to help fund the acquisition of AdCare Inc. for $85 million.

Other funds for the transaction will come from cash on hand, seller financing and $5 million of restricted shares of American Addiction common stock.

Closing is expected in the first half of 2018, subject to regulatory review and customary conditions.

Expera lender call

Expera Specialty Solutions LLC plans to participate in a lender call beginning at 10 a.m. ET on Monday for a repricing of its $283 million term loan B due November 2023 (B2/BB-).

Deutsche Bank Securities Inc. is leading.

The repricing takes the spread to Libor down to 425 basis points from 475 bps.

Price talk is par.

The loan will retain its 1% Libor floor.

Six months of soft call protection will be refreshed with the repricing.

Commitments for existing lenders are due at noon ET on Sept. 28. For new lenders commitments are due at noon ET on Sept. 29.

The borrower is a provider of paper and packaging products.

Paradigm Outcomes bank meeting

Paradigm Outcomes plans to participate in a bank meeting with lenders starting at 2 p.m. ET on Monday to launch a $455 million credit facility.

The deal includes a $350 million seven-year covenant-light first-lien term loan with 101 soft call protection for six months and an $80 million eight-year covenant-light second-lien term loan with a hard call of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC is the lead.

The borrowing entity is Paradigm Acquisition Corp.

Proceeds will be used to fund an acquisition and refinance debt.

PharMerica moves up timing

PharMerica Corp. accelerated timing on its $815 million seven-year first-lien term B (B1/B) and $185 million eight-year second-lien term loan (Caa1/CCC+).

Commitments are due at 5 p.m. ET on Monday, foreshortening the previously announced timeline by one day.

As reported, talk on the first-lien term loan is Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with a 1% Libor floor and a discount of 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 $1.1 billion of secured credit facilities also include a $100 million revolver (B1/B).

Goldman Sachs Bank USA, KKR Capital Markets, Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC and Jefferies LLC are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by KKR for $29.25 in cash per share. The all-cash transaction is valued at about $1.4 billion, including the assumption or repayment of debt.

Other funds for the transaction will come from $450 million of equity and cash on hand.

As part of the buyout, Walgreens Boots Alliance Inc. will become a minority investor in the company.

Closing is expected by early 2018, subject to PharMerica shareholder approval, regulatory approvals and other customary conditions.

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