Newport, AMC free up; Tank Holding tweaked again; Addison, LegalShield, Lyons float talk

By Sara Rosenberg

New York, March 20 – Newport Group added call protection to its add-on first-lien term loan and then the debt broke for trading on Wednesday afternoon above its original issue discount price, and AMC Entertainment Holdings Inc.’s term loan emerged in the secondary market as well.

In more happenings, Tank Holding Corp. shifted some funds between its first- and second-lien term loans and added a pricing step-down to the first-lien tranche.

Additionally, Addison Group, LegalShield and Lyons Magnus Inc. announced price talk with launch, and Cook & Boardman Group joined this week’s primary calendar.

Newport tweaked, breaks

Newport Group added 101 soft call protection for six months to its fungible $63.5 million add-on first-lien term loan due Sept. 13, 2025, according to a market source.

Pricing on the add-on term loan matches existing term loan pricing at Libor plus 375 basis points with a 0% Libor floor.

The original issue discount on the add-on term loan firmed in line with talk at 99.

Commitments were due at noon ET on Wednesday, and the debt freed to trade in the afternoon, with levels quoted at 99 1/8 bid, 99 5/8 offered, a trader added.

RBC Capital Markets is leading the deal that will be used for an acquisition.

Including the add-on, the first-lien term loan size will total about $303 million.

Newport Group, a Kelso & Co. portfolio company, is a Walnut Creek, Calif.-based provider of retirement services and consulting services related to retirement plans.

AMC hits secondary

AMC Entertainment’s $2 billion seven-year covenant-lite term loan B began trading too, with levels quoted at 99 5/8 bid, par offered, a market source remarked.

Pricing on the term loan B is Libor plus 300 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the loan firmed at the high end of the Libor plus 275 bps to 300 bps talk, the discount was modified from 99 and some documentation changes were made.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance existing credit facilities and redeem 5.875% senior subordinated notes due 2022 and 6% senior secured notes due 2023.

Closing is expected in mid-April.

AMC is a Leawood, Kan.-based movie exhibitor.

Tank Holding reworked

Back in the primary market, Tank Holding raised its seven-year covenant-lite first-lien term loan B to $500 million from $480 million and added a 25 bps pricing step-down at 0.5 times inside closing net first-lien leverage, a market source said.

As before, pricing on the first-lien term loan is Libor plus 400 bps with a 0% Libor floor and an original issue discount of 99.5, and the debt has 101 soft call protection for six months.

Previously in syndication, the spread on the first-lien term loan was trimmed from talk in the range of Libor plus 425 bps to 450 bps and the discount was revised from 99.

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

With the first-lien term loan upsizing, the company scaled back its privately placed second-lien term loan to $150 million from $170 million, the source continued.

Tank getting revolver

In addition to the first-and second-lien term loans, Tank Holding’s $710 million of senior secured credit facilities include a $60 million five-year revolver.

Morgan Stanley Senior Funding Inc., Antares Capital and Carlyle Global Credit Investment Management LLC are leading the deal.

The new debt will be used to help fund the buyout of the company by Olympus Partners.

Tank Holding is a manufacturer of rotationally molded poly and welded steel bulk storage and material handling products. The company has headquarters in St. Bonifacius, Minn., and Lincoln, Neb.

Addison reveals talk

Addison Group held its bank meeting on Wednesday and announced talk on its $310 million seven-year covenant-lite term loan B (B2/B) at Libor plus 475 bps to 500 bps with a 0% Libor floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due on April 3, the source added.

KKR Capital Markets is leading the deal that will be used to refinance existing debt.

Addison Group is a Chicago-based staffing agency.

LegalShield guidance

LegalShield released original issue discount talk of 98.75 on its fungible $175 million add-on first-lien term loan that launched with a morning call, according to a market source.

Like the existing loan, the add-on first-lien term loan is priced at Libor plus 325 bps with a 0% Libor floor.

The add-on first-lien term loan and the existing first-lien term loan are getting 101 soft call protection for six months, the source said.

Commitments are due at noon ET on March 27.

The company’s fungible $30 million add-on second-lien term loan has been placed with one account. This tranche is priced at Libor plus 750 bps with a 0% Libor floor.

RBC Capital Markets, SunTrust Robinson Humphrey Inc., BMO Capital Markets and KKR Capital Markets are leading the debt that will be used to fund a shareholder distribution.

LegalShield, a Stone Point Capital LLC portfolio company, is an Ada, Okla.-based provider of legal plans and identity theft solutions.

Lyons Magnus launches

Lyons Magnus held its call in the afternoon and launched its fungible $75 million add-on term loan at talk of Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, a market source said.

Commitments and consents are due at noon ET on April 2, the source added.

RBC Capital Markets is leading the deal that will be used to fund an acquisition.

With this transaction, pricing on the company’s existing term loan is being increased to Libor plus 400 bps from Libor plus 375 bps.

Paine Schwartz Partners is the sponsor.

Lyons Magnus is a developer, manufacturer and marketer of fruit and flavor solutions for the foodservice, health care and industrial dairy channels.

Cook & Boardman on deck

Cook & Boardman set a lender call for 2 p.m. ET on Thursday to launch a fungible $35 million add-on term loan, according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used to fund acquisitions.

Pro forma for the add-on, the term loan will total $247 million.

Cook & Boardman, a Littlejohn & Co. portfolio company, is a Winston-Salem, N.C., distributor of commercial door entry solutions.

Clover Libor floor

In other news, Clover Technologies Group (4L Technologies Inc.) is talking its $595 million 3.5-year covenant-lite first-lien term loan with a 0% Libor floor, a market source remarked.

As previously reported, talk on the term loan is Libor plus 550 bps to 600 bps with an original issue discount of 98.5 and soft call protection of 102 in year one and 101 in year two.

The company’s $640 million of credit facilities also include a $45 million revolver.

Commitments are due on April 2.

UBS Investment Bank, Bank of America Merrill Lynch and Antares Capital are leading the deal that will be used to refinance existing debt.

Clover is a Hoffman Estates, Ill.-based collector and recycler of imaging supplies.

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