Blount, Riverstone Utopia break; Charah sets changes; Consol structure, price talk emerge

By Sara Rosenberg

New York, Oct. 16 – Blount International Inc.’s term loan B made its way into the secondary market on Monday and was seen quoted above its original issue discount, and Riverstone Utopia Member LLC (Utopia Pipeline) freed to trade too.

Switching to the primary market, Charah LLC lifted the spread on its term loan, widened the original issue discount and extended the call protection, and Consol Mining Corp. (to be renamed Consol Energy Inc.) released price talk with launch.

Furthermore, Unitymedia, Lumos Networks Corp., Young Innovations Inc., Orion Engineered Carbons and Sterigenics-Nordion Holdings LLC joined this week’s primary calendar.

Blount hits secondary

Blount International’s $630 million term loan B (B1/B) due April 2023 began trading on Monday, with levels quoted at par bid, 101 offered, a market source said.

Pricing on the term loan B is Libor plus 425 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the term loan B was upsized from $615 million, pricing firmed at the low end of the Libor plus 425 bps to 450 bps talk and the discount tightened from 99.5.

Barclays, KeyBanc Capital Markets, ING and Sumitomo are leading the deal that will be used to refinance existing debt and to fund a dividend, the amount of which was increased with the recent term loan B upsizing.

The sponsors are American Securities and P2 Capital.

Closing is expected on Wednesday.

Blount is a Portland, Ore.-based manufacturer and marketer of outdoor power equipment.

Riverstone Utopia frees up

Riverstone Utopia Member’s $225 million seven-year term loan B (Ba3/BB) broke as well, with levels seen at 99¾ bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 425 bps, after firming during syndication at the high end of the Libor plus 400 bps to 425 bps talk. The loan has a 1% Libor floor and 101 soft call protection for six months, and was sold at an original issue discount of 99.5.

Barclays and Riverstone Capital Services LLC are leading the deal that will be used to fund future growth capital expenditure needs, to fund related reserve accounts, to provide an initial reimbursement to Riverstone and to pay related fees and expenses.

Closing is expected on Tuesday.

Riverstone Utopia Member is owned 100% by Riverstone Holdings LLC and is the direct owner of 50% of the equity interests in Kinder Morgan Utopia Holdco LLC, which in turn owns 100% of the operating assets of the Utopia Pipeline.

The Utopia Pipeline will transport ethane and ethane-propane mixtures from the core of the Utica and Marcellus shale to petrochemical companies operating in Ontario, Canada.

Charah reworks loan

Moving to the primary market, Charah raised pricing on its $250 million seven-year first-lien term loan (B2/B+) to Libor plus 625 bps from talk of Libor plus 550 bps to 575 bps, moved the original issue discount to 98 from 99, pushed out the 101 soft call protection to 24 months from six months and increased the amortization to 7.5% per annum from 5% per annum, a market source said.

As before, the term loan has a 1% Libor floor.

Recommitments are due at noon ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC, Jefferies LLC and Regions Bank are leading the deal that will be used to refinance existing debt and fund a dividend.

Charah is a Louisville, Ky.-based service provider to the regulated utility industry.

Consol details surface

Consol Mining held its bank meeting on Monday at which point details on its $800 million of new credit facilities (Ba3/B+) were announced, according to a market source.

The facilities consist of a $300 million four-year revolver, a $100 million four-year term loan A, and a $400 million five-year covenant-light term loan B talked at Libor plus 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source said.

Commitments are due at 5 p.m. ET on Oct. 26.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, PNC Capital Markets and Bank of America Merrill Lynch are leading the deal that will be used to help fund the separation of Consol Mining from Consol Energy Inc.

Closing is expected in mid-to-late November, the source added.

Consol Mining is a Canonsburg, Pa.-based coal company.

Unitymedia coming soon

Unitymedia scheduled a call for 10 a.m. ET on Tuesday to launch a $750 million covenant-light term loan B due January 2026 and a €500 million covenant-light term loan B due January 2027, a market source remarked.

Talk on the U.S. loan is Libor plus 225 bps with a 0% Libor floor and an original issue discount of 99.5, and talk on the euro loan is Euribor plus 275 bps with a 0% floor and a discount of 99.75 to par. Both tranches have 101 soft call protection for six months.

The U.S. loan has a ticking fee of half the margin from days 46 to 75 and the full margin thereafter, and the euro loan has a ticking fee of half the margin from days 61 to 90 and the full margin thereafter, the source continued.

Commitments are due at noon ET on Thursday.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., Barclays, MB, ING and RBC are the bookrunners on the U.S. loan being borrowed by Unitymedia Finance LLC. Bank of America, Deutsche Bank, Barclays, Goldman Sachs, Morgan Stanley, Credit Agricole, ING, RBS and RBC are the bookrunners on the euro loan being borrowed by Unitymedia Hessen GmbH & Co. KG.

Proceeds will be used to partially redeem 2023 notes that have an earliest first call date of Jan. 15, 2018.

Unitymedia is a Germany-based cable TV and broadband company.

Lumos readies deal

Lumos Networks set a lenders’ presentation for 10:30 a.m. ET on Tuesday to launch $550 million of senior secured credit facilities (B2), according to a market source.

The facilities consist of a $65 million revolver and a $485 million first-lien term loan B, the source said.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by EQT Infrastructure for $18.00 per share, resulting in an enterprise value of about $950 million.

Lumos is a Waynesboro, Va.-based fiber-based service provider in the Mid-Atlantic region.

Young Innovations on deck

Young Innovations Inc. will hold a bank meeting in New York on Thursday to launch $420 million of first-lien credit facilities, a market source remarked.

The facilities consist of a $50 million revolver, a $270 million seven-year first-lien term loan and a $100 million seven-year first-lien delayed-draw term loan, the source added.

The company is also getting a $120 million eight-year second-lien term loan that has been pre-placed.

Jefferies LLC, Antares Capital, Madison Capital and Neuberger Berman are leading the deal that will be used to help fund the buyout of the company by The Jordan Co.

Young Innovations is an Algonquin, Ill.-based developer and manufacturer of consumable dental products.

Orion joins calendar

Orion Engineered Carbons emerged with plans to hold a call at 10 a.m. ET on Tuesday to launch a $289 million first-lien senior secured term loan B and a €331 million first-lien senior secured term loan B, a market source said.

Goldman Sachs Bank USA is the sole bookrunner on the deal and mandated lead arrangers are Citizens Bank, Goldman Sachs, ING Bank and Mediobanca International (Luxembourg) S.A.

The new debt will be used to refinance existing term loans.

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

Sterigenics plans add-on

Sterigenics set a lender call for 10 a.m. ET on Tuesday to launch an add-on loan, according to a market source.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Sterigenics is a Deerfield, Ill.-based provider of contract sterilization, gamma technologies and medical isotopes.

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