Envision accelerates timing on $5.5 billion; Messer Industries narrows talk

By Paul A. Harris

Portland, Ore., Sept. 25 – In Tuesday's leveraged loan market Envision Healthcare Corp. moved up timing on its $5.05 billion seven-year covenant-light first-lien term loan B (B1/B+) to Wednesday from Monday, Oct. 1.

The market had been anticipating that move.

And Messer Industries tightened price talk for its $2.85 billion equivalent of seven-year first-lien term loans (B1/BB-).

Meanwhile, with the loan market bid above par and hordes of cash to put to work in the senior secured floating-rate asset class, the market is rife for a new wave of repricings, an investor said.

Once the soft call date expires, the wait for the repricing documents will not be long, the source lamented.

As for the cash picture, the dedicated bank loan funds saw $75 million of inflows on Monday, the most recent session for which daily cash flow information was available at press time, the investor said.

Envision accelerates timing

Envision Healthcare moved up timing on its $5.05 billion seven-year covenant-light first-lien term loan B (B1/B+), a move the market was anticipating.

Commitments are due 5 p.m. ET Wednesday, accelerated from Oct. 1.

The deal is in the market with price talk of Libor plus 400 basis points with a 0% Libor floor and an original issue discount of 99 to 99.5.

Proceeds will be used to help fund the buyout of the company by KKR for $46.00 per share in cash, or about $9.9 billion including the assumption or repayment of debt.

Messer Industries narrows talk

Messer Industries tightened price talk for its $2.85 billion equivalent of seven-year first-lien term loans (B1/BB-).

The company’s $2,225,000,000 dollar tranche is now talked at Libor plus 275 basis points to 300 bps, down from Libor plus 325 bps to 350 bps originally.

The 0% Libor floor and 99.5 original issue discount were left unchanged.

Messer’s $625 million equivalent euro-denominated tranche is now talked at Euribor plus 300 bps to 325 bps, down from Euribor plus 350 bps to 375 bps.

As with the dollar tranche, the 0% Euribor floor and 99.5 original issue discount are unchanged.

In addition, Messer moved up the commitment deadline to 12 p.m. ET on Sept. 27 from Oct. 1 previously.

Proceeds will be used to fund the acquisition by Messer Group and CVC Capital Partners of Linde AG’s gases business in North and South America for $3.3 billion.

NorthRiver tightens further

NorthRiver Midstream Finance LP again tightened pricing on its $1 billion seven-year senior secured covenant-light term loan B (Ba3/BB+), narrowing the original issue discount to 99.75 from 99.5.

On Monday the issuer reduced the coupon to Libor plus 325 basis points from talk of Libor plus 375 bps.

Recommitments were due at 2 p.m. ET on Tuesday.

In other changes on Monday, the MFN sunset was extended to 18 months from six months, and the threshold of 3.5 times total net leverage included in the requirement for mandatory prepayments after asset sales has been removed.

Proceeds will be used to help fund the acquisition of Enbridge Inc.’s Western Canadian midstream business by Brookfield Infrastructure.

Contura widens, extends timing

Contura Energy Inc. increased the coupon on its $600 million seven-year senior secured first-lien term loan (B3/B) to Libor plus 475 basis points to 500 bps from Libor plus 400 bps originally.

The deadline for commitments was pushed back to 4 p.m. ET on Sept. 28 from Sept. 25.

Proceeds will be used to refinance the combined entity’s balance sheet in connection with the closing of the announced merger with Alpha Natural Resources Holdings Inc.

GoodRx sets talk

GoodRx set talk on its $520 million seven-year term loan (B1/B+) with the launch of its new credit facility at Libor plus 350 basis points to 375 bps with a 0% Libor floor and an original issue discount of 99.5.

Commitments are due on Oct. 9.

Proceeds will be used to help fund the acquisition of a significant minority stake in the company by Silver Lake Partners from existing owners Francisco Partners, Spectrum Equity and management.

Moda Midstream tightens

Moda Midstream reduced the coupon and narrowed the original issue discount on its $300 million seven-year term loan B (B1/BB+).

The loan now pays interest at Libor plus 325 basis points, down from talk of Libor plus 375 bps to 400 bps, and is offered at a price of 99.75, tightened from 99.5 previously.

Final commitments were due on Tuesday.

Proceeds will be used to support the acquisition of Ingleside Energy Center and certain crude oil and LPG infrastructure from Occidental Petroleum Corp.

Idera upsizes, narrows discount

Idera Inc. increased its incremental first-lien term loan due June 2024 to $95 million from $65 million previously and tightened the original issue discount to 99.75 from 99.5.

The additional proceeds will be used to repay $30 million of the company’s existing second-lien term loan.

Recommitments were due by 2:30 p.m. ET on Tuesday.

As previously, the loan has a coupon of Libor plus 450 basis points with a 1% Libor floor.

In addition to the loan repayment from the upsizing, proceeds will be used to fund three strategic acquisitions and for general corporate purposes.

Men's Wearhouse repricing

Men's Wearhouse Inc. is seeking to reprice $895,500,000 of its first lien term loan B due April 2025 (existing ratings Ba3/BB-), according to a market source.

The deal is talked with a 300 basis points to 325 bps spread to Libor, versus the original 350 bps spread. It features a 1% Libor floor and 101 soft call protection for six months.

Commitments are due Oct. 2.

Vantage Specialty repricing talk

Vantage Specialty Chemicals, Inc. launched a repricing of $517,575,000 of its senior secured term loan B due Oct. 28, 2024 (B3/B-) with a 350 basis points to 375 bps spread to Libor atop a 1% Libor floor at par on Tuesday, according to a market source.

Commitments are due at noon ET on Oct. 3.

AGS talks repricing

AGS (AP Gaming I LLC) announced details of the repricing of its $510 million first-lien term loan repricing following a lender call on Tuesday.

The repricing will cut the coupon by 75 basis points and will have a step down upon a rating upgrade.

Commitments are due by 11 a.m. ET on Oct. 2.

Coinmach talks add-on

CSC ServiceWorks, the parent of Coinmach, talked a $150 million add-on to term loan B due Nov. 14, 2022 (current ratings B2/B) with a 325 basis points spread to Libor atop a 1% Libor floor at 99.5, according to a market source.

The deal comes with six months of soft call protection at 101.

The add-on is being marketed in conjunction with a proposed amendment to the existing term loan. There is a 12.5 bps amendment fee on the existing loan.

Commitments and consents are due at 5 p.m. ET on Monday.

The Plainview, N.Y.-based laundry equipment service provider plans to use the proceeds to fund acquisitions, repay revolver borrowings, general corporate purposes.

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