Plaskolite first lien paper prices; inflows to loan funds continue

By Paul A. Harris

Portland, Ore., April 6 – Leveraged loan market activity was muted on Friday, as New York-based participants tended to be on spring break with their families, crimping the flow of new issue news from the dealers, a trader said.

First lien term loan paper (B2/B) for $610 million from Plaskolite LLC priced and broke for trading, the trader said.

The deal, in the market via joint lead arrangers Antares Capital and KeyBanc Capital Markets, featured a $246 million incremental first-lien term loan due Nov. 3, 2022 that priced at 99.5 and a repricing of the company’s roughly $374 million first-lien term loan due Nov. 3, 2022 which priced at par.

The loans were trading at par bid, par ˝ offered in light trading early Friday afternoon, the trader said.

Both tranches came with 350 basis points spreads to Libor and 0% Libor floors.

Spreads and prices came on top of talk.

SBA allocates

SBA Communications Corp.’s upsized $2.4 billion seven-year term loan B, which was priced at 99.75 with a 200 bps spread to Libor, allocated on Friday.

The loan, increased from $2.2 billion, came at the wide end of the Libor plus 175 bps to 200 bps talk.

The deal has no Libor floor and comes with 101 soft call protection for six months.

TD Securities (USA) LLC, Mizuho, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the bookrunners on the deal.

Proceeds will be used to refinance existing credit facilities and funds from the upsizing will be used for general corporate purposes.

Mastronardi to launch Monday

Mastronardi Produce Ltd. will launch a seven-year term loan B at a bank meeting to be held on Monday.

BofA Merrill Lynch, Bank of Montreal and Rabobank are the arrangers.

The term B is part of a new senior secured credit facility that will be used to refinance the company’s existing cash flow revolver and term loan A.

EmployBridge moves up timing

EmployBridge LLC moved up timing on its $485 million seven-year covenant-light first-lien term loan B (B3/B-).

Commitments are now due at 5 p.m. ET on Monday. Previously books had been expected to remain open into Tuesday.

As reported, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets, Citizens Bank, Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are the lead arrangers on the deal.

Price talk on the term loan is Libor plus 500 basis points to 525 bps with a 1% Libor floor and an original issue discount of 99, the source said.

The term loan has 101 soft call protection for six months.

Proceeds will be used to refinance existing debt.

Positive Thursday flows

Daily cash flows for dedicated bank loan funds were positive on Thursday, the most recent session for which data was available at press time, a trader said.

The funds saw $70 million of inflows on Thursday.

The funds also net inflows of $285 million on the week to the April 4 close, the trader said.

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