Consolidated Precision breaks; Consolidated Aerospace updated; GPS tables refinancing

By Sara Rosenberg

New York, July 30 – Consolidated Precision Products Corp. (WP CPP Holdings LLC) modified the original issue discount on its incremental first-lien term loan B, and then the debt began trading above that revised price.

In more happenings, Consolidated Aerospace Manufacturing LLC tightened the issue price on its add-on term loan, and GPS Hospitality withdrew its credit facilities from market.

Also, SI Group and Herbalife Nutrition Ltd. released price talk with launch, and Verscend Technologies Inc., SunSource Holdings Inc. and Compuware Corp. joined this week’s primary calendar.

Consolidated Precision tweaked, trades

Consolidated Precision Products tightened the original issue discount on its $273 million incremental covenant-light first-lien term loan B (B2/B) due April 2025 to 99.75 from 99.5, and left pricing at Libor plus 375 basis points with a 1% Libor floor, according to a market source.

The company is also getting a $166 million incremental covenant-light second-lien term loan (Caa2/CCC+) due April 2026 priced in line with talk at Libor plus 775 bps with a 1% Libor floor and a discount of 99.

Commitments were due at noon ET on Monday and the debt freed to trade in the afternoon, with the first-lien term loan quoted at par ¼ bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., Antares Capital, ING Capital LLC and HSBC Securities (USA) Inc. are leading the $439 million of incremental senior secured term loans that will fund the acquisition of Selmet Inc., a manufacturer of complex, titanium castings and machined components for the aerospace and defense industries.

Closing is expected on Aug. 6.

Consolidated Precision Products is a Cleveland-based manufacturer of engineered components and subassemblies primarily for the commercial aerospace, defense and industrial gas turbine markets.

Consolidated Aerospace tightens

Consolidated Aerospace Manufacturing moved the original issue discount on its $125 million add-on term loan (B+) to 99.75 from 99.5, a market source remarked.

Pricing on the add-on term loan is Libor plus 375 bps with a 1% Libor floor, in line with the existing term loan, and the add-on loan has 101 soft call protection for six months.

Allocations are expected on Tuesday, the source added.

Citizens Bank is leading the deal that will be used to help fund the acquisition of an engine component manufacturer.

Consolidated Aerospace is a manufacturer of components principally for the aerospace industry.

GPS shelves deal

GPS Hospitality withdrew its $395 million of credit facilities as a result of market conditions, a market source said.

The facilities consisted of a $55 million revolver, and a $340 million seven-year first-lien term loan (B3/B-) talked at Libor plus 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

During the syndication attempt, the revolver was downsized from $65 million. Also, pricing on the term loan was lifted from initial talk of Libor plus 475 bps, the discount widened from 99.5 and the call protection was extended from six months.

UBS Investment Bank was the left lead on the deal that was going to be used to refinance existing debt.

GPS Hospitality is an Atlanta-based Burger King and Popeyes Louisiana Kitchen franchisee.

SI Group guidance

Also in the primary market, SI Group hosted its bank meeting on Monday and announced price talk on its $1,425,000,000 seven-year first-lien term loan (B/BB-) and $250 million eight-year second-lien term loan (B-/CCC+), according to a market source.

Talk on the first-lien term loan is Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 800 bps with a 0% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $1,925,000,000 of credit facilities also include a $250 million five-year revolver (B/BB-).

Commitments are due at noon ET on Aug. 10, the source added.

J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal, with JPMorgan left on the first-lien and HSBC left on the second-lien.

The new debt will help fund the buyout of the company by SK Capital Partners from descendants of W. Howard Wright and combination with SK Capital’s current portfolio company Addivant, a Danbury, Conn.-based supplier of additives used to improve the production and performance properties of polymers, plastics and rubbers.

Closing is expected in the second half of this year.

SI is a Schenectady, N.Y.-based developer and manufacturer of performance additives and intermediates.

Herbalife discloses talk

Herbalife Nutrition came out with talk of Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $600 million seven-year senior secured first-lien term loan (Ba1/BB) shortly before its afternoon bank meeting kicked off, a market source said.

Commitments are due at noon ET on Aug. 9, the source added.

Jefferies LLC and Rabobank are leading the deal that will be used with an impending unsecured debt offering to refinance an existing credit facility.

Herbalife is a Los Angeles-based nutrition and weight management company.

Verscend on deck

Verscend is set to hold a bank meeting at 11 a.m. ET on Tuesday to launch a $3,165,000,000 seven-year term loan B talked at Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 4 p.m. ET on Aug. 9, the source said.

J.P. Morgan Securities LLC is the left lead on the deal that will be used with up to $790 million of equity and up to $575 million of preferred equity to fund the acquisition of Cotiviti Holdings Inc. for $44.75 in cash per share of common stock and assuming outstanding debt, resulting in an enterprise value of about $4.9 billion.

Closing is expected in the fourth quarter, subject to the approval of Cotiviti shareholders, regulatory approvals and other customary conditions.

Verscend, a portfolio company of Veritas Capital, is a provider of data-driven healthcare solutions. Cotiviti is an Atlanta-based provider of payment accuracy and analytics-driven solutions.

SunSource timing emerges

SunSource will hold a lender call at 1 p.m. ET on Tuesday to launch its previously announced $295 million incremental 6.5-year first-lien term loan, a market source remarked.

Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Natixis, ING and UBS Investment Bank are leading the deal that will be used to help fund the acquisition of United Distribution Group Inc. and refinance United Distribution’s existing debt.

Other funds for the transaction are expected to come from a $75 million incremental ABL revolver and $85 million of incremental equity from Clayton, Dubilier & Rice.

Closing is expected in August.

SunSource is an Addison, Ill.-based distributor of fluid power and fluid process components and systems. United Distribution is a Bristol, Tenn.-based distributor of industrial supplies and services.

Compuware sets meeting

Compuware scheduled a bank meeting for 1:30 p.m. ET on Wednesday to launch $535 million of credit facilities, according to a market source.

The facilities consist of a $60 million five-year revolver and a $475 million seven-year first-lien term loan, the source said.

Jefferies LLC, J.P. Morgan Securities LLC and Goldman Sachs Bank USA are leading the deal that will be used to repay the company’s existing HoldCo debt in connection with the spin-off of Dynatrace from the existing business.

Compuware is a Detroit-based technology performance company.

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