Wesco shelves term loan plans; Cambrex, Alterra Mountain release price guidance

By Sara Rosenberg

New York, Nov. 4 – In the primary market on Monday, Wesco Aircraft Holdings Inc. withdrew its term loan B as the company opted to pursue a larger notes offering.

Also, Cambrex Corp. announced price talk on its first-and second-lien term loan in connection with its bank meeting, Alterra Mountain Co. came to market with an add-on and repricing transaction, and SBA Communications Corp. emerged with new deal plans.

Wesco pulled

Wesco Aircraft removed its $600 million seven-year covenant-lite term loan B (B3/B) from the primary market and upsized its senior secured notes offering to $1.6 billion from $1 billion, according to a market source.

Talk on the term loan B was Libor plus 525 basis points with an original issue discount of 98 and 101 soft call protection for six months.

Deutsche Bank Securities Inc., BofA Securities, Inc., Jefferies LLC, Barclays, BNP Paribas Securities Corp., Goldman Sachs Bank USA and HSBC Securities (USA) Inc. were leading the deal.

Proceeds were going to help fund the buyout of the company by Platinum Equity for $11.05 per share in cash, or about $1.9 billion, and combination with Platinum Equity portfolio company Pattonair, a U.K.-based provider of supply chain management services for the aerospace and defense industries.

The company is still getting $575 million of senior unsecured notes for the buyout.

Closing is expected by year-end, subject to Wesco shareholder approval, regulatory clearances and other customary conditions.

Wesco is a Valencia, Calif.-based distributor and provider of supply chain management services to the aerospace industry.

Cambrex sets talk

Cambrex held its bank meeting in the morning and revealed price talk on its $875 million seven-year covenant-lite first-lien term loan (B2) and $250 million eight-year covenant-lite second-lien term loan (Caa2), a market source remarked.

The first-lien term loan is talked at Libor plus 450 bps to 475 bps with an original issue discount of 99 and 101 soft call protection, and the second-lien term loan is talked at Libor plus 850 bps to 875 bps with a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $1.26 billion of senior secured credit facilities also include a $135 million revolver (B2).

Commitments are due at 5 p.m. ET on Nov. 19.

Cambrex lead banks

RBC Capital Markets, Barclays, Societe Generale, UBS Investment Bank and Mizuho are leading Cambrex’s credit facilities.

The new debt will be used with about $1.382 billion equivalent of equity to fund the buyout of the company by Permira for $60.00 in cash. The transaction is valued at about $2.4 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including receipt of approval by Cambrex’s shareholders and regulatory approvals.

Cambrex is an East Rutherford, N.J.-based small molecule company providing drug substance, drug product and analytical services.

Alterra holds call

Alterra Mountain hosted a lender call on Monday to launch a $50 million add-on term loan B due July 2024 and a repricing of its existing $1.686 billion term loan B due July 2024, a market source said.

Talk on the add-on term loan is Libor plus 275 bps with a 0% Libor floor and an original issue discount of 99.875 to par, and the repricing would take the existing loan spread down to Libor plus 275 bps from Libor plus 300 bps.

All of the term loan B debt is getting 101 soft call protection for six months.

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

J.P. Morgan Securities LLC is leading the deal.

Alterra is a Denver-based mountain resort and adventure company.

SBA readies loan

SBA Communications set a lender call for 10 a.m. ET on Wednesday to launch a $2.37 billion term loan B due April 2025 that is talked at Libor plus 175 bps with a 0% Libor floor and a par issue price, according to a market source.

TD Securities (USA) LLC is leading the deal, which will be used to reprice an existing term loan B down from Libor plus 200 bps.

SBA is a Boca Raton, Fla.-based owner and operator of wireless communications infrastructure.

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