International Textile, Ferro, BCP Renaissance break; NAI, ProAmpac, Apergy tweak deals

By Sara Rosenberg

New York, April 20 – Deals from International Textile Group Inc. and Ferro Corp. freed to trade on Friday, and BCP Renaissance Parent LLC’s (Blackstone) term loan emerged in the secondary market after an upsizing and pricing finalizing at the high end of guidance.

Also, NAI Entertainment Holdings LLC trimmed the spread on its term loan B and tightened the original issue discount, ProAmpac modified the issue price on its add-on term loan, and Apergy Corp. increased the size of its term loan B, lowered the spread and revised the original issue discount.

Furthermore, Frontera Generation Holdings LLC moved up the commitment deadline on its credit facilities, and Alliant Holdings Intermediate LLC and Jo-Ann Stores LLC joined the near-term primary calendar.

International Textile frees up

International Textile’s term loans began trading on Friday, with the $585 million six-year first-lien term loan quoted by one trader at par bid, 100½ offered and by a second trader at 99¾ bid, 100¼ offered, and the $125 million seven-year second-lien term loan quoted by both traders at 97 bid, 98 offered.

Pricing on the first-lien term loan is Libor plus 500 basis points 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 one year.

The second-lien term loan is priced at Libor plus 900 bps with a 1% Libor floor and was issued at a discount of 97. This tranche is non-callable for one year, then has a hard call of 102 in year two and 101 in year three.

Proceeds will be used to finance the acquisition of American & Efird, a Mt. Holly, N.C.-based manufacturer of sewing thread, embroidery thread and technical textiles, and to refinance existing debt.

International Textile leads

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies LLC and HSBC Securities (USA) Inc. are leading International Textile’s $710 million of term loans.

During syndication, the first-lien term loan was upsized from $575 million, pricing was raised from talk in the range of Libor plus 450 bps to 475 bps, the call protection was extended from six months, the maturity was shortened from seven years, and amortization was increased to 2.5% per annum from 1%.

Also during syndication, the second-lien term loan was downsized from $135 million, the spread was lifted from talk in the range of Libor plus 850 bps to 875 bps, the Libor floor was changed from 0%, the discount widened from 98.5, the call protection was modified from a hard call of 103 in year one, 102 in year two and 101 in year three, and the maturity was shortened from eight years.

International Textile Group is a Greensboro, N.C.-based manufacturer of industrial and technical threads and woven fabrics.

Ferro begins trading

Ferro’s term loans emerged in the secondary market too, with the $355 million covenant-light term loan B-1 due February 2024, $235 million covenant-light term loan B-2 due February 2024 and $230 million covenant-light term loan B-3 due February 2024 all quoted at 100¼ bid, 100¾ offered, according to a trader.

Pricing on the term loans is Libor plus 225 bps with a 0% Libor floor and they were issued at par. The loans include 101 soft call protection for six months.

On Thursday, the issue price on the term loans B-2 and B-3 was tightened from 99.75.

Deutsche Bank Securities and PNC Bank are the bookrunners on the $820 million of term loans (Ba3/BB-) that will be used to reprice an existing term loan B-1 down from Libor plus 250 bps with a 0.75% Libor floor, refinance the existing euro term loan and add cash to the balance sheet.

Closing is expected on Wednesday.

Ferro is a Mayfield Heights, Ohio-based functional coatings and color solutions provider that offers a portfolio of technology-based performance materials.

BCP updated, breaks

BCP Renaissance lifted its senior secured term loan B (B1/B+/BB-) due Oct. 31, 2024 to $1,255,000,000 from $1.25 billion and finalized the spread at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months.

After terms finalized, the loan freed to trade and levels were quoted at 100¼ bid, 100 5/8 offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 1% Libor floor, and the $5 million in additional proceeds being raised will be used for fees and expenses.

Closing is expected during the week of April 30.

BCP Renaissance is the owner of Blackstone’s interest in Rover Pipeline LLC, which transports natural gas from the Marcellus and Utica Shale production areas.

NAI changes emerge

In more happenings, NAI Entertainment cut pricing on its $300 million seven-year covenant-light term loan B (B1/BB) to Libor plus 250 bps from talk in the range of Libor plus 275 bps to 300 bps and moved the original issue discount to 99.75 from 99.5, according to a market source.

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

Commitments are due at noon ET on Monday, moved up from noon ET on Tuesday, the source said.

Wells Fargo Securities LLC is leading the deal that will be used to refinance $300 million of senior secured notes due 2018.

NAI is a motion picture company, with a diversified portfolio of theatre and other real estate assets in the United States, United Kingdom, Brazil and Argentina as well as equity interests in Viacom Inc. and CBS Corp.

ProAmpac revises price

ProAmpac adjusted the issue price on its fungible $225 million add-on term loan (B3/B) to par from 99.5, a market source remarked.

The add-on loan is priced at Libor plus 350 bps with a step-down to Libor plus 325 bps at 4.25 times net first-lien leverage and a 1% Libor floor, in line with existing term loan pricing.

Commitments were due on Friday and allocations are expected on Monday, the source added.

Antares Capital and RBC Capital Markets are leading the deal that will be used to make two near-term acquisitions.

ProAmpac is a Cincinnati-based flexible packaging manufacturer.

Apergy reworked

Apergy raised its term loan B to $415 million from $365 million, trimmed pricing to Libor plus 250 bps from talk in the range of Libor plus 275 bps to 300 bps and revised the original issue discount to 99.75 from 99.5, according to a market source.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

The company’s now $665 million of credit facilities also include a $250 million revolver.

J.P. Morgan Securities LLC is the left lead on the deal that will be used with $300 million in notes to fund the company’s spinoff from Dover Corp.

Apergy is a The Woodlands, Texas-based provider of highly engineered technologies that help companies drill for and produce oil and gas efficiently and safely.

Frontera moves deadline

Frontera Generation Holdings accelerated the commitment deadline on its $710 million of senior secured credit facilities (BB) to 5 p.m. ET on Tuesday from Thursday, a market source said.

The facilities consist of a $35 million five-year revolver and a $675 million seven-year covenant-light term loan B talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Morgan Stanley Senior Funding and MUFG are leading the deal that will be used to refinance the existing Lonestar Generation LLC credit facilities.

Frontera is a 526 MW combined cycle gas turbine power generation facility located in Mission, Texas. The plant holds a presidential permit and export authorization from the U.S. Department of Energy permitting the export of 100% of the plant’s generation into Mexico on its own dedicated transmission line.

Alliant readies deal

Alliant Holdings is set to hold a lender call at 1 p.m. ET on Monday to launch $2,286,217,951 of senior secured credit facilities, according to a market source.

The facilities consist of an extension of the existing $200 million revolver and $1,776,217,951 term loan B and a new $310 million incremental term loan B, the source said.

Morgan Stanley Senior Funding is leading the deal.

The incremental loan will be used to fund pending acquisitions.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Jo-Ann on deck

Jo-Ann Stores scheduled a lender call for Monday to launch a $225 million six-year covenant-light second-lien term loan (CCC+), a market source remarked.

Bank of America Merrill Lynch is leading the deal that will be used with a $58 million draw on the company’s existing $400 million ABL facilities to refinance $274 million HoldCo senior PIK toggle notes.

Jo-Ann Stores is a Hudson, Ohio-based specialty retailer of fabrics and crafts.

Bronco allocates

Bronco Midstream Funding LLC allocated on Friday its $298,963,710 senior secured term loan B (Ba2/BB-) due Aug. 13, 2023, according to a market source.

Pricing on the term loan B is Libor plus 350 bps with a 0% Libor floor, and it was issued at par. The loan has 101 soft call protection for six months.

Barclays is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 0% Libor floor and extend the maturity by three years from 2020.

Closing is expected on Wednesday.

Arclight Capital Partners is the sponsor.

Bronco is a holding company which indirectly owns 43.2 million LP units of Enable Midstream Partners, a publicly listed investment grade MLP.

© 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.