Inmar, Edgewood Partners free to trade; US Salt modifies loan; ACProducts, Brooks float talk

By Sara Rosenberg

New York, Jan. 31 – Inmar Inc. widened the issue price on its incremental first-lien term loan, and Edgewood Partners Holdings LLC (EPIC) increased the size of its first-lien delayed-draw term loan and adjusted the draw-down period, and then these deals made their way into the secondary market on Thursday.

In more happenings, US Salt LLC changed the original issue discount on its first-lien term loan and added a pricing step-down, ACProducts Inc. and Brooks Automation Inc. released price talk with launch, and Getty Images Inc. joined the near-term primary calendar.

Inmar revises OID, breaks

Inmar modified the original issue discount on its fungible $415 million incremental covenant-light first-lien term loan (B1/B) due May 1, 2024 to 97 from 98, and left pricing at Libor plus 400 basis points with a 1% Libor floor, a market source remarked.

The term loan debt is getting 101 soft call protection for six months.

Recommitments were due at 4 p.m. ET on Thursday and the loan freed to trade shortly thereafter, with levels quoted at 97 bid, 97½ offered, another source added.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the acquisition of You Technology, a Brisbane, Calif.-based digital coupon and digital rebate publishing unit owned by Kroger.

In connection with this transaction, the company will reprice its existing $571 million term loan to Libor plus 400 bps from Libor plus 350 bps for fungibility.

Inmar is a Winston-Salem, N.C.-based provider of technology-enabled promotion, processing and inventory logistics services.

Edgewood tweaks deal

Edgewood Partners lifted its first-lien delayed-draw term loan to $115 million from $50 million and revised the draw-down period to six months from two years, according to a market source.

The company is still getting a fungible $295 million incremental first-lien term loan.

As before, the new first-lien term loan debt is priced at Libor plus 425 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and is being issued at original issue discount of 99. The new debt, as well as the company’s existing $514 million first-lien term loan, will get 101 soft call protection for six months.

Antares Capital and Golub Capital are leading the first-lien deal.

Edgewood hits secondary

In the morning, Edgewood’s first-lien term loan began trading and levels were seen at 99 bid, 99½ offered, the source said.

Proceeds will be used with a $325 million privately placed second-lien term loan and a $50 million delayed-draw second-lien term loan to fund an acquisition, repay revolver drawings, refinance an existing $195 million second-lien term loan and pay acquisition-related fees and expenses.

Both the first-lien and second-lien facilities are governed by a total net leverage maintenance covenant.

Closing and funding was expected on Thursday, the source added.

Edgewood Partners, a portfolio company of Oak Hill Capital Partners, is a San Francisco-based insurance, risk management and employee benefits brokerage and consulting firm.

US Salt changes emerge

US Salt changed the original issue discount on its $285 million seven-year covenant-light first-lien term loan (B2) to 99 from talk in the range of 98 to 98.5 and added a 25 bps pricing step-down to the tranche, according to a market source.

Initial pricing on the first-lien term loan is still Libor plus 475 bps with a 0% Libor floor.

The first-lien term loan has 101 soft call protection for six months.

Recommitments are due at noon ET on Friday and allocations may go out on Monday, the source added.

The company’s $437.5 million of credit facilities also include a $25 million five-year revolver (B2) and a $127.5 million privately placed second-lien term loan.

Citizens Bank is leading the deal that will be used to fund an acquisition and refinance existing debt.

US Salt is an Overland Park, Kan.-based producer of salt.

ACProducts sets talk

ACProducts held its bank meeting on Thursday and announced talk on its $400 million five-year first-lien term loan (B3/B+) at Libor plus 550 bps with a 0% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for one year, a market source said.

Commitments are due at noon ET on Feb. 14, the source added.

The company’s $578 million of credit facilities also include a $75 million undrawn 4.75-year ABL revolver and a $103 million 5.5-year privately placed second-lien term loan (Caa2/CCC+).

Barclays is leading the deal that will be used to fund the acquisition of Elkay Wood Products Co. and to refinance existing debt.

Closing is expected by the end of this quarter, subject to customary conditions.

ACProducts, an American Industrial Partners portfolio company, is a Colony, Texas-based manufacturer and distributor of cabinets. Elkay is an Oak Brook, Ill.-based manufacturer of kitchen and bath cabinetry.

Brooks reveals guidance

Brooks Automation came out with talk of Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months on its $349,125,000 million senior secured covenant-light term loan B due Oct. 4, 2024 that launched with a lenders’ presentation in the morning, a market source remarked.

Commitments are due on Feb. 12, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used for general corporate purposes, including the previous acquisition of Genewiz Group, and to refinancing existing debt.

Brooks is a Chelmsford, Mass.-based provider of automation and cryogenic solutions. Genewiz is a South Plainfield, N.J.-based genomics service provider.

Getty coming soon

Getty Images scheduled a bank meeting in New York for Friday and a bank meeting in London for Monday to launch $1,445,000,000 of term loans (B2), according to a market source.

The debt is split between a $1,085,000,000 seven-year covenant-light term loan B talked at Libor plus 450 bps to 475 bps with a 1% Libor floor and an original issue discount of 98, and a $360 million equivalent euro seven-year covenant-light term loan B talked at Euribor plus 500 bps to 525 bps with a 0% floor and a discount of 98, the source said.

Commitments are due at 5 p.m. ET on Feb. 13.

J.P. Morgan Securities LLC is leading the deal that will be used to help refinance the company’s balance sheet in connection with its acquisition by the Getty family from the Carlyle Group.

The refinancing will also be funded with a $100 million common equity investment from the Getty family and Koch Equity Development LLC, and a $500 million preferred equity investment from Koch Equity.

Getty Images is a visual communications company.

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