Gardner Denver, Cox Media free to trade; PQ tweaked; American Airlines cancels loan plans

By Sara Rosenberg

New York, June 24 – Gardner Denver Inc. (Ingersoll-Rand) tightened the original issue discount on its term loan B, and then the debt broke for trading on Wednesday, and Cox Media Group’s add-on term loan made its way into the secondary market as well.

In more happenings, PQ Corp. increased the size of its term loan B and set the original issue discount at the tight end of guidance, and American Airlines Inc. cancelled plans for a term loan B as the decision was made to upsize its bond offering.

Gardner revised, breaks

Gardner Denver changed the original issue discount on its $400 million senior secured covenant-lite term loan B (Ba2/BB+) due February 2027 to 98.5 from 98, according to a market source.

As before, the term loan is priced at Libor plus 275 basis points with a 0% Libor floor and has 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday and the term loan began trading in the afternoon, with levels quoted at 98¾ bid, 99¼ offered, another source added.

Citigroup Global Markets Inc., KKR Capital Markets, Goldman Sachs Bank USA, PNC and Credit Agricole are leading the deal that will be used to for general corporate purposes.

Closing is expected on Monday.

Gardner Denver is a provider of mission-critical flow control and compression equipment and associated aftermarket parts, consumables and services.

Cox frees up

Cox Media’s $150 million add-on term loan also broke for trading, with levels quoted at 97½ bid, 98 offered, a trader remarked.

Pricing on the add-on term loan is Libor plus 425 bps with a 0% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 97.5. The add-on term loan has 101 soft call protection for six months.

RBC Capital Markets is the left lead on the deal that will be used for general corporate purposes.

Cox Media is an Atlanta-based broadcasting, publishing, direct marketing and digital media company.

PQ updated

Back in the primary market, PQ lifted its non-fungible senior secured covenant-lite term loan B due Feb. 7, 2027 to $650 million from $450 million and firmed the original issue discount at 98, the tight end of the 97 to 98 talk, a market source said.

Pricing on the term loan is still Libor plus 300 bps with a 1% Libor floor, and the debt still has 101 soft call protection for one year.

Commitments are due at noon ET on Thursday, accelerated from 5 p.m. ET on Thursday, with pricing and allocations thereafter, the source added.

PQ lead banks

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Jefferies LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., KeyBanc Capital Markets, BofA Securities, Inc. and SunTrust Robinson Humphrey Inc. are leading PQ’s term loan. Credit Suisse is the administrative agent.

The term loan will be used to refinance the company’s existing $625 million 6¾% senior secured notes due 2022 at the current call price. Plans for $200 million of other unsecured debt for the refinancing were terminated with the loan upsizing.

PQ is a Malvern, Pa.-based producer of specialty inorganic performance chemicals and catalysts.

American pulls loan

American Airlines withdrew its $500 million four-year senior secured term loan B from market due to the decision to increase its senior secured notes offering size to $2 billion from $1.5 billion, a market source remarked. The notes were then upsized again, to $2.5 billion from $2 billion.

Talk on the term loan was Libor plus 950 bps with a 1% Libor floor, an original issue discount of 95 to 96, and call protection of non-callable for one year, with a make whole call at Treasuries plus 50 bps, and then callable at 102 in year two.

Citigroup Global Markets Inc., Goldman Sachs Bank USA, BofA Securities, Inc. and J.P. Morgan Securities LLC were leading the deal.

The term loan was going to be used with the notes for general corporate purposes, including increasing liquidity and the repayment of a 364-day delayed-draw term loan.

American Airlines is a Fort Worth-based airline company.

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