Harland breaks; Medallion revised; RCN, Everi, Trader, Visteon, Azelis, Milacron set talk

By Sara Rosenberg

New York, Oct. 31 – Harland Clarke Holdings Corp. increased the size of its term loan and reduced pricing, and then the debt freed up for trading on Tuesday, and a $227.6 million Bid Wanted In Competition was announced.

In more happenings, Medallion Midland Acquisition LLC lowered the spread on its term loan and tightened the original issue discount.

Also, RCN Grand Wave (Radiate HoldCo LLC), Everi Holdings Inc., Trader Corp., Visteon Corp., Azelis Finance SA and Milacron LLC disclosed price talk with launch, and AGRO Merchants Global LP, Utz Quality Foods LLC, Rackspace and Cole-Parmer Instrument Co. joined this week’s calendar.

Harland revised, trades

Harland Clarke lifted its six-year covenant-light first-lien term loan to $1.78 billion from $1.68 billion and reduced the spread to Libor plus 475 basis points from Libor plus 500 bps, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Tuesday and by mid-afternoon the loan broke for trading with levels quoted at par ¼ bid, par ¾ offered, another source said.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., Deutsche Bank Securities Inc., Jefferies LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used with $450 million of add-on 8 3/8% senior secured notes, downsized from $500 million, to refinance a portion of the company’s term loan B-5 and term loan B-6.

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

BWIC surfaces

Also in trading, a $227.6 million Bid Wanted In Competition emerged, with bids due at 10:30 a.m. ET on Thursday, a trader said.

Some of the names in the BWIC include Amaya Gaming, Beacon Roofing Supply, CBS Radio, Electrical Components, Flexera Software, HD Waterworks, JDA Software, Men’s Wearhouse, Pike Corp., Red Ventures, Solera, Univision Communications and Vizient.

There are about 109 issuers in the portfolio, the trader added.

Medallion flexes

Back in the primary market, Medallion Midland cut pricing on its $700 million seven-year first-lien term loan (B2//BB+) to Libor plus 325 bps from talk in the range of Libor plus 350 bps to 375 bps and moved the original issue discount to 99.75 from 99, a market source remarked.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s $725 million of credit facilities also include a $25 million super-priority revolver.

Commitments were due by noon ET on Tuesday, the source added.

Jefferies LLC is leading the deal that will be used to fund the acquisition of the company by Global Infrastructure Partners from the Energy & Minerals Group and Laredo Petroleum Inc. for $1,825,000,000 plus potential additional cash consideration, subject to customary closing adjustments.

Medallion is an Irving, Texas-based crude oil gathering and intra-basin transportation system in the Midland Basin, within the eastern half of the prolific Permian Basin.

RCN discloses talk

RCN Grand Wave held its bank meeting on Tuesday and released talk on its fungible $1,275,000,000 incremental first-lien term loan due Feb. 1, 2024 at Libor plus 300 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

In addition to the term loan, the company is getting a $150 million incremental revolver.

Commitments are due on Nov. 14, the source said.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Nomura, Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the bank debt (B1/B) that will be used to help fund the acquisition of Wave Broadband, a regional broadband fiber company, from Oak Hill Capital Partners, management and GI Partners.

Closing is expected this year, subject to customary conditions.

RCN is a cable operator.

Everi holds call

Everi Holdings had its lender call at 11 a.m. ET to launch the repricing of its $818 million term loan due 2024, which is talked at Libor plus 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Nov. 7, the source added.

Jefferies LLC is leading the deal that will reprice the existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Closing is expected in November.

Everi Payments is a Las Vegas-based provider of video and mechanical reel gaming content and solutions, integrated gaming payment solutions and compliance and efficiency software solutions.

Trader reveals guidance

Trader Corp. came out with talk of Libor plus 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $362 million first-lien term loan due September 2023 that launched with a morning call, according to a market source.

Commitments are due at noon ET on Monday.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Trader Corp. is an Etobicoke, Ont.-based digital automotive marketplace.

Visteon repricing

Visteon launched without a call a $350 million senior secured covenant-light term loan B (Ba2/BB+) due March 24, 2024 at talk of Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 225 bps with a 0% Libor floor.

Cashless roll commitments are due at 5 p.m. ET on Nov. 7, all other commitments are due at 5 p.m. ET on Nov. 8 and closing is expected during the week of Nov. 13, the source added.

Visteon is a Van Buren Township, Mich.-based designer and manufacturer of cockpit electronics products and connected car solutions for vehicle manufacturers.

Azelis comes to market

Azelis Finance launched a $259.9 million covenant-light first-lien term loan due December 2022 talked at Libor plus 375 bps to 400 bps with a 1% Libor floor and a par issue price, and a €221 million covenant-light first-lien term loan due December 2022 talked at Euribor plus 350 bps to 375 bps with a 0% floor and a par issue price, a market source said.

Consents are due at 5 p.m. ET on Thursday and allocations are expected on Friday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing U.S. term loan and an existing euro term loan.

The company is also looking to raise its incremental base amount by up to €50 million to repay revolver borrowings.

Azelis is an Antwerp, Belgium, pure-play specialty chemical distributor.

Milacron launches

Milacron launched with an afternoon call a repricing of its term loan at talk of Libor plus 275 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Bank of America Merrill Lynch is leading the deal that will reprice the existing term loan down from Libor plus 300 bps with a 0% Libor floor.

As of June 30, the company had $942.3 million outstanding under its term loan due September 2023.

Milacron is a Cincinnati-based provider of plastics processing technologies and industrial fluids.

AGRO readies loans

AGRO Merchants set a lenders’ presentation for 10:30 a.m. ET on Thursday to launch $440 million of senior secured term loans, according to a market source.

The debt is split between a $350 million first-lien term loan and a $90 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc., Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance the existing capital structure, fund an acquisition, and pay related fees and expenses.

AGRO Merchants is an Alpharetta, Ga.-based owner and operator of temperature-controlled warehouse and distribution space.

Utz joins calendar

Utz Quality Foods scheduled a bank meeting for 10 a.m. ET on Wednesday to launch $660 million in term loans, a market source said.

The debt consists of a $535 million seven-year covenant-light first-lien term loan (B2/B) and a $125 million eight-year covenant-light second-lien term loan (Caa1/CCC+), the source added.

Bank of America Merrill Lynch is the left lead on the deal that will be used to fund the acquisition of Inventure Foods Inc. for $4 per share in cash, for a total purchase price of about $165 million, including the assumption of around $75 million of debt and debt-like items, to finance the purchase of Metropoulos and Co.’s minority stake in Utz and to refinance existing debt.

Closing is expected this quarter, subject to the tender of more than 50% of the fully diluted shares of Inventure Foods common stock, the receipt of regulatory approvals and other customary conditions.

Utz is a Hanover, Pa.-based salty snack manufacturer and marketer. Inventure Foods is a Phoenix, Ariz.-based specialty food marketer and manufacturer.

Rackspace on deck

Rackspace emerged with plans to hold a bank meeting at 1:30 p.m. ET in New York on Thursday to launch a credit facility financing to existing and prospective lenders, according to a market source.

Citigroup Global Markets Inc. is the left lead bank on the deal.

In September, the company said that it received a commitment for incremental senior secured credit facilities to help fund its acquisition of Datapipe.

Closing on the acquisition is expected this quarter, subject to regulatory approvals, and, as part of the transaction, the majority owner of Datapipe, Abry Partners, will receive equity in Rackspace.

Rackspace, owned by Apollo Global Management LLC and co-investors, is a San Antonio, Texas-based multi-cloud managed services company. Datapipe is a Jersey City, N.J.-based provider of managed services across public and private clouds, managed hosting and colocation.

Cole-Parmer coming soon

Cole-Parmer set a lender call for 3 p.m. ET on Wednesday to launch a repricing of its term loan, a market source remarked.

Jefferies LLC is leading the deal.

Cole-Parmer is a Vernon Hills, Ill.-based provider of laboratory and industrial fluid handling products, instrumentation, equipment and supplies.

Resolute allocates

In other news, Resolute Investment Managers allocated its $105 million second-lien term loan, according to a market source.

Pricing on the second-lien term loan is Libor plus 750 bps with a 1% Libor floor and it was issued at par. The debt has hard call protection of 102 in year one and 101 in year two.

RBC Capital Markets LLC and Barclays are leading the deal that will be used to reprice an existing second-lien term loan down from Libor plus 875 bps with a 1% Libor floor.

Resolute Investment, formerly known as American Beacon Advisors Inc., is an Irving, Texas-based provider of investment advisory services to institutional and retail markets.

© 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.