Secondary starts 2018 with firm bids; Woodford, Henry, Tacala, MaxLinear join calendar

By Sara Rosenberg

New York, Jan. 2 – The first trading day of the New Year in the leveraged loan market went well with a good amount of activity and a good number of buyers.

“Guys have cash and there’s no new issue right now. Market feels good. Feels pretty bid. No real theme,” a trader told Prospect News.

Meanwhile, in the primary market, Woodford Express LLC, Henry Co. LLC, Tacala Cos. and MaxLinear Inc. joined the near-term new issue calendar.

Woodford on deck

Woodford Express set a lenders’ presentation for 10:30 a.m. ET on Thursday to launch $389 million of senior secured credit facilities, according to a market source.

The facilities consist of a $25 million revolver and a $364 million term loan B, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repay the balance on the company’s revolver, fund a distribution, fund certain reserve accounts, and pay transaction-related fees and expenses.

Woodford Express, a portfolio company of Quantum Energy Partners, is a natural gas gathering and processing system in the core of the SCOOP play of South Oklahoma’s Woodford Shale and Springer Shale.

Henry readies deal

Henry scheduled a lender call for 3 p.m. ET on Monday to launch a fungible $115 million add-on term loan B and a repricing of its existing $316.8 million term loan B due October 2023, a market source remarked.

RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Antares Capital and Nomura are leading the deal.

The add-on loan will be used to fund the acquisition of Fortifiber LLC.

Henry, an American Securities portfolio company, is an El Segundo, Calif.-based developer and manufacturer of roofing products and other building envelope applications. Fortifiber is a Fernley, Nev.-based manufacturer of weather-resistive moisture management systems, including housewrap, building paper and flashing tapes.

Tacala coming soon

Tacala emerged with plans to hold a bank meeting on Jan. 18 to launch $480 million of credit facilities, according to a market source.

The facilities consist of a $30 million revolver, a $335 million first-lien term loan and a $115 million second-lien term loan, the source said.

KKR Capital Markets and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and fund a dividend.

Tacala is a Vestavia Hills, Ala.-based franchise operator of Taco Bell restaurants.

MaxLinear joins calendar

MaxLinear set a lender call for Wednesday to launch a $355 million term loan due May 2024 talked at Libor plus 225 basis points with a 0.75% Libor floor, an original issue discount of 99.875 to par and 101 soft call protection for six months, a market source said.

Commitments are due on Jan. 9, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 250 bps with a 0.75% Libor floor.

MaxLinear is a Carlsbad, Calif.-based provider of integrated radio frequency and mixed-signal integrated circuits for the connected home and wired and wireless infrastructure markets.

Beacon Roofing closes

In other news, Beacon Roofing Supply Inc. completed its acquisition of Allied Building Products Corp. from CRH plc, according to a news release.

To help fund the transaction and refinance an existing $440 million term loan B, Beacon Roofing got $2.27 billion of senior secured credit facilities consisting of a $1.3 billion asset-based revolver and a $970 million seven-year senior secured covenant-light term loan B (B1).

Pricing on the term loan B is Libor plus 225 bps with a 0% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the spread on the loan was lowered from Libor plus 250 bps to 275 bps.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. led the deal, with Citi the left lead on the term loan B and Wells Fargo the left lead on the revolver.

Other funds for the transaction came from $1.3 billion of senior unsecured notes and a $400 million investment from Clayton, Dubilier & Rice.

Beacon Roofing is a Herndon, Va.-based distributor of residential and commercial roofing materials and complementary building products. Allied Building is an East Rutherford, N.J.-based distributor of exterior and interior building products.

ABC buyout wraps

The acquisition of ABC Financial Inc. by Thoma Bravo LLC has been completed, a news release said.

To help fund the buyout, ABC Financial got $400 million of senior secured credit facilities that include a $25 million five-year revolver (B2/B), a $260 million seven-year first-lien term loan (B2/B) and a $115 million privately placed eight-year second-lien term loan.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, pricing on the first-lien term loan firmed at the high end of the Libor plus 400 bps to 425 bps talk.

The second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Jefferies LLC, Macquarie Capital and Antares Capital led the deal.

ABC Financial is a Little Rock, Ark.-based software and payment processing company.

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