International Textile, Mastronardi deal changes surface; HUB moves up commitment deadline

By Sara Rosenberg

New York, April 18 – International Textile Group Inc. on Wednesday shifted some funds between its first- and second-lien term loans, increased pricing, sweetened call premiums and shortened maturities on the tranches and widened the Libor floor and issue price on the second-lien loan.

Also, Mastronardi Produce increased the size of its term loan B while tightening the spread and original issue discount, and HUB International Ltd. moved up the commitment deadline on its credit facilities.

In addition, Albertsons Cos. Inc., Owens & Minor Inc., Perspecta Inc., KeyW Corp., Orion Engineered Carbons and Bronco Midstream Funding LLC announced price talk with launch, and Syneos Health Inc., Consolidated Energy Ltd. and Speedcast International Ltd. emerged with new deal plans.

International Textile reworked

International Textile lifted its first-lien term loan to $585 million from $575 million, raised pricing to Libor plus 500 basis points from talk in the range of Libor plus 450 bps to 475 bps, extended the 101 soft call protection to one year from six months, shortened the maturity to six years from seven years and increased amortization to 2.5% per annum from 1%, according to a market source. This tranche still has a 0% Libor floor and an original issue discount of 99.5.

Regarding the company’s second-lien term loan, it was scaled back to $125 million from $135 million, the spread was increased to Libor plus 900 bps from talk in the range of Libor plus 850 bps to 875 bps, the Libor floor was changed to 1% from 0%, the original issue discount was moved to 97 from 98.5, the call protection was modified to non-callable for one year, then a hard call of 102 in year two and 101 in year three, from hard call protection of 103 in year one, 102 in year two and 101 in year three, and the maturity was shortened to seven years from eight years, the source said.

Recommitments are due at 2 p.m. ET on Thursday. Allocations are expected thereafter.

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.

The new loans 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 Group is a Greensboro, N.C.-based manufacturer of industrial and technical threads and woven fabrics.

Mastronardi revised

Mastronardi Produce lifted its seven-year covenant-light term loan B to $350 million from $330 million, trimmed pricing 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 99.5, according to a market source.

As before, the term loan B has a 0% Libor floor and 101 soft call protection for six months.

Commitments were due at noon ET on Wednesday, the source said.

Bank of America Merrill Lynch, BMO Capital Markets Corp. and Rabobank are leading the new senior secured credit facilities that will be used to refinance the company’s existing cash flow revolver, term loan A and other debt.

Mastronardi is a grower and distributor of greenhouse-grown produce to retailers.

HUB moves deadline

HUB International accelerated the commitment deadline on its roughly $3.7 billion of senior secured credit facilities (B2/B) to noon ET on Thursday from noon ET on Friday, a market source said.

The facilities consist of a $400 million five-year revolver, a C$130 million five-year revolver, a $3.05 billion seven-year covenant-light term loan B and a C$200 million seven-year covenant-light term loan B.

Talk on the U.S. term loan B is Libor plus 300 bps to 325 bps with a 25 bps step-down at 4.25 times first-lien net leverage, a 0% Libor floor and an original issue discount of 99.5, and talk on the Canadian term loan B surfaced at CDOR plus 350 bps to 375 bps with a 0% floor and a discount of 99.5. Both term loans have 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, BMO Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading the deal that will be used to repay existing revolver and term loan B borrowings, senior unsecured OpCo notes and senior contingent cash pay notes.

HUB is a Chicago-based insurance brokerage.

Albertsons sets guidance

Also in the primary market, Albertsons held its bank meeting on Wednesday and released talk of Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $1.2 billion five-year asset-based last-out term loan (Ba2), according to a market source.

The term loan has a ticking fee of half the margin from days 46 to 75, the full margin from days 76 to 105 and the full margin plus Libor thereafter.

Commitments are due at noon ET on May 2, the source said.

Bank of America Merrill Lynch, Credit Suisse Securities, Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Barclays, Deutsche Bank Securities, RBC Capital Markets, Wells Fargo Securities LLC and MUFG are leading the deal that will be used to refinance existing debt at Rite Aid Corp. and, if applicable, fund the cash portion of the Rite Aid merger.

Albertsons is a Boise, Idaho-based food and drug retailer. Rite Aid is a Camp Hill, Pa., national drugstore chain.

Owens details emerge

Owens & Minor launched at its afternoon bank meeting a $500 million seven-year covenant-light term loan B (B1/BB) talked at Libor plus 350 bps to 375 bps with a 0% Libor floor and an original issue discount of 99, a market source remarked.

Commitments are due at noon ET on May 1, the source added.

Bank of America Merrill Lynch, Wells Fargo Securities, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with a new term loan A to fund the acquisition of the surgical and infection prevention business of Halyard Health Inc.

Owens & Minor is a Mechanicsville, Va.-based health care solutions company.

Perspecta discloses talk

Perspecta Inc. released talk of Libor plus 200 bps to 225 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $400 million term loan B that launched with a bank meeting on Wednesday, according to a market source.

Commitments for the term loan B are due at noon ET on April 27, the source said.

The company’s $3,035,000,000 of senior credit facilities (/BB/BBB-) also include a $600 million revolver, a $500 million term loan A-1 and a $1,535,000,000 term loan A-2, with initial pricing on these tranches anticipated to be Libor plus 162.5 bps to 175 bps.

MUFG, Bank of America Merrill Lynch, J.P. Morgan Securities, Mizuho and RBC Capital Markets are leading the deal that will be used to help fund the spinoff of the company from DXC Technology, to refinance existing debt and for general corporate purposes.

Perspecta will then be combined with Vencore Holding Corp. and KeyPoint Government Solutions to create a mission-enabled, end-to-end IT services and mission solutions provider to government customers.

Closing is expected by the end of May and pro forma total leverage is expected to be 3.7 times.

KeyW launches

KeyW held its bank meeting during the session and released price talk on its $215 million six-year first-lien term loan (B+) and $75 million seven-year second-lien term loan (B-), a market source said.

Talk on the first-lien term loan is Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 825 bps to 850 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $340 million of senior secured credit facilities also include a $50 million five-year revolver (B+).

Commitments are due at 5 p.m. ET on May 2.

RBC Capital Markets, Fifth Third, J.P. Morgan Securities and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance the company’s capital structure.

KeyW is a Hanover, Md.-based total solutions provider for the intelligence, cyber and counterterrorism communities.

Orion reveals guidance

Orion Engineered Carbons came out with price talk on its $288 million senior secured first-lien term loan due July 25, 2024 and €331 million senior secured first-lien term loan due July 25, 2024 in connection with its morning lender call, according to a market source.

The U.S. term loan is talked at Libor plus 200 bps with a 0% Libor floor and a par issue price, and the euro term loan is talked at Euribor plus 225 bps with a 0% floor and an original issue discount of 99.75 to par, the source said. Both tranches have 101 soft call protection for six months.

Commitments are due on April 25.

Goldman Sachs is the sole bookrunner, global coordinator and mandated lead arranger on the deal. Additional mandated lead arrangers and coordinators are Mediobanca International (Luxembourg) SA and ING Bank.

The transaction will be used to reprice existing U.S. and euro term loans down from Libor/Euribor plus 250 bps with a 0% floor.

Orion Engineered Carbons is a Frankfurt-based producer of carbon black.

Bronco seeks repricing

Bronco Midstream Funding launched in the morning a roughly $299 million senior secured term loan B due Aug. 13, 2023 talked at Libor plus 350 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 Thursday, the source added.

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.

Arclight Capital Partners is the sponsor.

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

Syneos joins calendar

Syneos Health scheduled a lender call for 10 a.m. ET on Thursday to launch a $1,525,000,000 first-lien term loan (Ba2/BB-) due Aug. 1, 2024 talked at Libor plus 200 bps with a 25 bps step-down, a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 11 a.m. ET on April 25, the source said.

Credit Suisse Securities is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 225 bps with a 0% Libor floor.

Syneos, the company formed through the combination of INC Research and inVentiv Health, is a Raleigh, N.C.-based biopharmaceutical solutions provider.

Consolidated Energy on deck

Consolidated Energy set a lender presentation for 10:30 a.m. ET on Thursday to launch $750 million of senior secured credit facilities, a market source remarked.

The facilities consist of an up to $200 million revolver and a $550 million term loan B, the source said.

Morgan Stanley Senior Funding is leading the deal that will be used to refinance existing debt.

Consolidated Energy is an acquirer and developer of companies that focus on alternative waste management and energy production.

Speedcast readies deal

Speedcast will hold a bank meeting at noon ET in New York on Thursday to launch a $425 million seven-year covenant-light first-lien term loan that includes 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 2, the source said.

Credit Suisse Securities, Citigroup Global Markets Inc., Credit Agricole, ING and Macquarie Capital are leading the deal, which will be used to refinance existing debt.

Speedcast is an Australia-based provider of telecommunications managed services.

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