GMS, Waste Industries, U.S. Lumber free up; Northstar, Evans Network adjust deal terms

By Sara Rosenberg

New York, May 22 – A couple of deals hit the secondary market on Tuesday, including GMS Inc. (GYP Holdings III Corp.), Waste Industries USA LLC (Wrangler Buyer LLC) and U.S. Lumber Group LLC.

Switching to the primary market, NorthStar Financial Services Group LLC finalized spreads on its first-and second-lien term loans at the low end of guidance and tightened the issue price on the second-lien tranche.

Also, Evans Network of Cos. modified the original issue discount on its term loan debt and added a pricing step-down, Tecomet came to market with an add-on term loan, and PODS LLC surfaced with new deal plans.

GMS starts trading

GMS’ $998 million seven-year first-lien term loan B (B2/BB-) freed to trade on Tuesday, with levels quoted at par bid, par ¼ offered, a market source remarked.

Pricing on the term loan is Libor plus 275 basis points with a 0% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

During syndication, the issue price on the term loan was tightened from 99.75 and the fee for lenders who rolled was revised to 0 bps from 25 bps.

Barclays and Credit Suisse Securities (USA) LLC are leading the deal. Credit Suisse is the administrative agent.

Proceeds will be used to extend the maturity and reprice an existing $573 million first-lien term loan B that is priced at Libor plus 300 bps with a 0% Libor floor, and the $425 million of incremental term loan B debt will be used to help fund the acquisition of WSB Titan, a Toronto-based gypsum specialty dealer, from current management and TorQuest Partners for about $627 million.

Closing is expected late in the second quarter, subject to the expiration or termination of the applicable waiting periods under the Canadian Competition Act and other customary conditions.

GMS is a Tucker, Ga.-based distributor of wallboard and suspended ceilings systems.

Waste Industries tops par

Waste Industries’ fungible $170 million incremental term loan B (B1/B) due Sept. 28, 2024 and repriced $888 million term loan B (B1/B) due Sept. 28, 2024 emerged in the secondary as well, with levels quoted at par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the term loan debt is Libor plus 275 bps with a step-down to Libor plus 250 bps at first-lien net leverage of 4 times and a 0% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

Barclays is the left lead on the deal.

Proceeds from the incremental loan will be used to fund acquisitions and/or to repay revolver borrowings related to acquisitions, and the repricing will take the existing term loan down from Libor plus 300 bps with a 25 bps step-down and a 0% Libor floor.

Closing is expected on Thursday.

HPS Investment Partners LLC and Equity Group Investments are the sponsors.

Waste Industries is a Raleigh, N.C.-based provider of non-hazardous solid waste collection, transfer, recycling and disposal services.

U.S. Lumber breaks

U.S. Lumber Group’s $44.5 million add-on term loan began trading too, with levels quoted at par ¾ bid, 101¼ offered, a market source said.

Pricing on the term loan is Libor plus 600 bps with a 1% Libor floor and it was issued at par.

SunTrust Robinson Humphrey Inc. and Bank of America Merrill Lynch are leading the deal that will be used to fund an acquisition.

U.S. Lumber is an Atlanta-based two-step distributor of specialty building products.

Northstar tweaks deal

Moving to the primary market, NorthStar Financial Services set pricing on its $290 million seven-year covenant-light first-lien term loan (B2/B+) at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and left the 0.75% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

Regarding the $115 million eight-year second-lien term loan (Caa2/CCC+), pricing firmed at Libor plus 750 bps, the low end of the Libor plus 750 bps to 775 bps talk, and the discount was adjusted to 99.5 from 99, the source said. This tranche still has a 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two.

Allocations are expected in the next day or two, the source added.

Antares Capital, Macquarie Capital (USA) Inc. and Citizens Bank are leading the $405 million in term loans that will be used to fund the acquisition of FTJ FundChoice LLC, a turnkey asset management firm, from Seaport Capital.

Closing is expected in the second quarter, subject to customary conditions.

NorthStar, a portfolio company of TA Associates, is a financial services company.

Evans sets changes

Evans Network of Cos. moved the original issue discount on its $238.5 million seven-year covenant-light term loan and $24 million delayed-draw term loan to 99.75 from 99.5 and added a pricing step-down to Libor plus 400 bps when total net leverage is less than 4 times, a market source remarked.

As before, initial pricing on the term loan debt is Libor plus 425 bps with a 0% Libor floor, the delayed-draw loan has a two year drawdown period and an undrawn fee of 1% in year one and 1.5% in year two, and the term loans are being sold pro rata.

Recommitments were due by the end of the day on Tuesday and allocations are expected on Thursday, the source added.

Antares Capital is leading the $262.5 million of first-lien term loans (B3/B) that will be used to refinance existing debt and fund a distribution to existing shareholders.

Closing is anticipated to occur on May 30.

Evans Network, a Calera Capital portfolio company, is a Schuylkill Haven, Pa.-based asset-light, tech-enabled service provider to operators in the logistics industry.

Tecomet seeks add-on

Tecomet held an earnings call on Tuesday and launched a $21 million add-on term loan talked with an original issue discount of 99.75, according to a market source.

Like the existing term loan, the add-on term loan is priced at Libor plus 350 bps with a step-down to Libor plus 325 bps at 4 times net first-lien leverage and a 1% Libor floor.

Commitments are due at noon ET on May 30, the source said.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Tecomet is a Wilmington, Mass.-based provider of high precision manufacturing solutions serving global medical device and aerospace and defense original equipment manufacturers.

PODS readies deal

PODS set a lender call for 11 a.m. ET on Thursday to launch a $60 million incremental senior secured term loan B and a repricing of its existing $781,075,000 senior secured term loan B, a market source said.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal.

The incremental loan will be used to support franchise acquisitions, repay revolver borrowings and pay related fees and expenses.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

MRC wraps

In other news, MRC Global Inc. announced in a news release on Tuesday that it repriced its $399 million term loan to Libor plus 300 bps with a 0% Libor floor from Libor plus 350 bps with a 1% Libor floor.

During syndication, pricing on the loan firmed at the high end of the Libor plus 275 bps to 300 bps talk.

J.P. Morgan Securities LLC is the lead bank on the deal.

MRC is a Houston-based distributor of pipe, valve, fittings and related products and services to the energy industry.

© 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.