Duravant hits secondary; Cabinetworks tweaked; Ensono, Columbus, Sound Physicians set talk

By Sara Rosenberg

New York, May 6 – Duravant LLC (Engineered Machinery Holdings Inc.) firmed the spread on its second-lien term loan at the low side of adjusted talk and set the original issue discount on its euro first-lien term loan at the tight end of revised guidance before breaking for trading on Thursday.

In more happenings, Cabinetworks Group lifted pricing on its term loan B, finalized the issue price at the wide end of talk and extended the call protection.

Also, Ensono Holdings LLC, Columbus McKinnon Corp. and Sound Physicians released price talk with launch, and Generate Life Sciences emerged with new deal plans.

Duravant updated

Duravant firmed pricing on its $175 million eight-year incremental second-lien term loan (Caa2/CCC+) at Libor plus 650 basis points, the low end of revised talk of Libor plus 650 bps to 675 bps and down from initial talk of Libor plus 725 bps, according to a market source.

Also, the company finalized the original issue discount on its $570 million equivalent euro seven-year incremental first-lien term loan (B2/B-) at 99.75, the tight end of revised guidance of 99.5 to 99.75 and tighter than initial talk of 99.5, the source said.

The second-lien term loan still has a 0.75% Libor floor, an original issue discount of 99.5 and hard call protection of 102 in year one and 101 in year two.

Pricing on the euro first-lien term loan is Euribor plus 375 bps with two 25 bps leverage-based step-downs and a 0% floor, and the debt has 101 soft call protection for six months.

Previously in syndication, the discount on the second-lien term loan was modified from 99, and pricing on the euro term loan was set at the low end of revised talk of Euribor plus 375 bps to 400 bps and down from initial talk in the range of Euribor plus 400 bps to 425 bps.

Duravant frees up

On Thursday, Duravant’s bank debt began trading, with the second-lien term loan quoted at 99¾ bid, par ¾ offered, another source added.

Jefferies LLC, Credit Suisse, Societe Generale, Citigroup Global Markets Inc., KeyBanc Capital Markets, MUFG and Antares Capital are leading the deal, with Jefferies the left lead on the second-lien term loan and Credit Suisse listed left on the first-lien term loan. Jefferies is the agent.

Along with the term loans, the company is getting a $235 million five-year revolver (B2/B-).

The new credit facilities will be used to fund the acquisition of Foodmate, a manufacturer of poultry processing equipment dual-headquartered in Numansdorp, the Netherlands, and Ball Ground, Ga., for working capital, to add cash to the balance sheet and for other general corporate purposes.

Duravant is a Downers Grove, Ill.-based engineered equipment and automation solutions provider to the food processing, packaging and material handling sectors.

Cabinetworks revised

Cabinetworks raised pricing on its $1.4 billion seven-year term loan B (B1/B-) to Libor plus 425 bps from talk in the range of Libor plus 375 bps to 400 bps, set the original issue discount at 99, the wide end of the 99 to 99.5 talk, and extended the 101 soft call protection to one year from six months, a market source remarked.

The term loan still has a 0.5% Libor floor.

Recommitments were due at 3:30 p.m. ET on Thursday, the source added.

BofA Securities Inc., Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, KKR Capital Markets, BMO Capital Markets, Jefferies LLC and RBC Capital Markets are leading the deal that will be used with $550 million of senior notes and equity to fund the buyout of the company by Platinum Equity from American Industrial Partners, GIC and other equity holders.

Closing is expected this quarter, subject to customary conditions.

Cabinetworks is an Ann Arbor, Mich.-based manufacturer and distributor of kitchen and bath cabinets.

Ensono guidance

Ensono held its call on Thursday afternoon and announced talk on its $723 million seven-year covenant-lite first-lien term loan B (B2/B) at Libor plus 400 bps to 425 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 20, the source added.

The company’s $1.073 billion of credit facilities also include a $100 million revolver (B2/B) and a $250 million privately placed second-lien term loan (Caa2/CCC).

Morgan Stanley Senior Funding Inc., UBS Investment Bank, KKR Capital Markets, Barclays, Mizuho, MUFG, RBC Capital Markets and Societe Generale are leading the deal that will be used to help fund the buyout of the company by KKR from Charlesbank Capital Partners and M/C Partners, refinance existing debt and pay fees and expenses related to the transaction.

Leverage is expected to be 6x.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

Ensono is a Chicago-based hybrid IT services provider.

Columbus proposed terms

Columbus McKinnon launched on its call its $450 million seven-year senior secured first-lien term loan B (Ba2/B+) at talk of Libor plus 275 bps to 300 bps with a 0.5% Libor floor and an original issue discount of 99.5, a market source said.

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

Commitments are due at noon ET on May 13.

JPMorgan Chase Bank, Wells Fargo Securities LLC and PNC Bank are leading the deal that will be used to help refinance existing debt and support the recently completed acquisition of Dorner Manufacturing Corp. from EQT for $485 million.

Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of intelligent motion solutions that efficiently and ergonomically move, lift, position, and secure materials. Dorner is a Hartland, Wis.-based manufacturer of high-precision, specialty conveyor systems.

Sound Physicians talk

Sound Physicians came out with talk of Libor plus 325 bps with a 0.5% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months on its $150 million add-on term loan B (Ba3/B) due June 2025 that launched with a call in the afternoon, a market source remarked.

Commitments are due on May 13, the source added.

Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal, which will be used to fund acquisitions and other general corporate purposes.

Sound Physicians is a Tacoma, Wash.-based provider of physician staffing services to hospitals.

Generate joins calendar

Generate Life Sciences set a lender call for 11:30 a.m. ET on Friday to launch a fungible $130 million incremental covenant-lite first-lien term loan due Aug. 6, 2025, according to a market source.

Pricing on the incremental term loan is Libor plus 400 bps with a 0% Libor floor, which matches existing term loan pricing, the source said.

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

Generate Life Sciences, formerly known as California Cryobank, is a Los Angeles-based life sciences company helping to grow and protect families through reproductive, newborn stem cell, genetic screening, medical device, and healthcare technology services.

HelpSystems use of proceeds

In other news, HelpSystems revealed that its fungible $170 million incremental first-lien term loan (B2/B-) and non-fungible $130 million incremental second-lien term loan will be used to fund two tuck-in acquisitions and a minority recapitalization, a market source said.

As previously reported, the debt launched with a call on Monday with the incremental first-lien term loan talked at Libor plus 475 bps with a 1% Libor floor, a par issue price and 101 soft call protection through June 22, and the incremental second-lien term loan talked at Libor plus 675 bps with a 0.75% Libor floor, a discount of 99.5 and call protection of 102 in year one and 101 in year two.

Commitments are due at 4 p.m. ET on Monday.

Golub Capital is leading the deal.

The incremental first-lien loan is fungible with the company’s existing $1.13 billion first-lien term loan and the incremental second-lien loan is coterminous with the existing $290 million second-lien term loan.

HelpSystems, a portfolio company of TA Associates, HGGC and Charlesbank, is an Eden Prairie, Minn.-based provider of cybersecurity and automation software.

© 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.