Sundyne, Kissner update deal terms, free to trade; Duff & Phelps changes surface

By Sara Rosenberg

New York, March 3 – Sundyne (Star US Bidco LLC) lifted the spread on its term loan B, removed the pricing step-downs, increased the Libor floor, widened the original issue discount and extended the call protection before breaking for trading on Tuesday.

Also, Kissner Group Holdings LP (SCIH Salt Holdings Inc.) eliminated pricing step-downs from its first-lien term loan B, changed the Libor floor, finalized the original issue discount at the wide end of guidance and sweetened the call protection, and then freed up late in the day.

In more happenings, Duff & Phelps widened spread talk and original issue discounts on its U.S. and euro term loans, and modified the Libor floor on the U.S. tranche, and Tata Chemicals North America Inc. released price talk with launch.

Sundyne reworked

Sundyne raised pricing on its $535 million seven-year covenant-lite first-lien term loan B to Libor plus 425 basis points from Libor plus 375 bps, eliminated the step-downs of 25 bps at 5x net first-lien leverage and 25 bps step-down at an initial public offering, and changed the Libor floor to 1% from 0%, a market source remarked.

Additionally, the company adjusted the original issue discount on the term loan to 99 from 99.5 and pushed out the 101 soft call protection to one year from six months, the source continued.

The company’s $635 million of senior secured credit facilities (B2/B) also include a $100 million five-year revolver.

Recommitments were due at noon ET on Tuesday.

Sundyne hits secondary

Late in the day, Sundyne’s bank debt freed up for trading and the term loan B was quoted at 99½ bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc., BMO Capital Markets, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus from BC Partners Advisors LP and the Carlyle Group.

Closing is expected in mid-to-late March, subject to regulatory approval.

Sundyne is an Arvada, Colo.-based designer and manufacturer of mission critical flow control equipment.

Kissner modified

Kissner Group removed from its $900 million seven-year covenant-lite first-lien term loan B (B3/B) a 25 bps step-down at 0.5x inside closing date first-lien net leverage and a 25 bps step-down at 1x inside closing date first-lien net leverage, while leaving initial pricing at Libor plus 450 bps, a market source said.

Also, the Libor floor on the term loan was revised to 1% from 0%, the original issue discount was set at 99, the wide end of the 99 to 99.5 talk, and the 101 soft call protection was extended to one year from six months, the source continued.

Recommitments were due at noon ET on Tuesday.

The company’s $1.225 billion of senior secured credit facilities also include a $125 million five-year revolver (B3/B) and a $200 million privately placed second-lien term loan.

Kissner starts trading

Kissner’s first-lien term loan B broke for trading late in the session, with levels quoted at 99½ bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BofA Securities, Inc., BMO Capital Markets, KKR Capital Markets and Citizens Bank are leading the deal that will be used to help fund the acquisition of the company by Stone Canyon Industries Holdings LLC from Metalmark Capital Holdings LLC and Silvertree-KMC II LP.

Closing is expected on March 12.

Kissner is an Overland Park, Kan.-based pure-play producer and supplier of salt.

Duff & Phelps revised

In other news, Duff & Phelps lifted price talk on its $1.225 billion seven-year first-lien term loan and €300 million seven-year first-lien term loan to a range of Libor/Euribor plus 375 bps to 400 bps from Libor/Euribor plus 350 bps and changed the original issue discount on both loans to 99 from 99.5, according to a market source.

Furthermore, the Libor floor on the U.S. term loan was increased to 1% from 0%, the source said.

The euro term loan still has a 0% floor and both term loans still have 101 soft call protection for six months.

The company’s $1.75 billion equivalent of credit facilities (B2/B-) also include a $200 million revolver.

Commitments are due at the close of business on Wednesday, moved up from 5 p.m. ET on Thursday, the source added.

Duff & Phelps leads

Goldman Sachs Bank USA, UBS Investment Bank, BofA Securities, Inc., Morgan Stanley Senior Funding Inc., Stone Point Capital Markets, KKR Capital Markets, Capital One and Credit Suisse Securities (USA) LLC are leading Duff & Phelps’ credit facilities.

The new debt will be used to help fund the buyout of the company by Stone Point Capital and Further Global from the Permira funds for $4.2 billion. Permira will continue to hold a significant stake in the company.

Closing is expected in the second quarter.

Duff & Phelps is a New York-based independent advisor with expertise in the areas of valuation, corporate finance, disputes and investigations, compliance and regulatory matters, and other governance-related issues.

Tata Chemicals guidance

Tata Chemicals held its bank meeting on Tuesday and announced talk on its $380 million seven-year term loan (Ba3/BB) at Libor plus 375 bps with a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on March 12, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to help repay an existing term loan and a bridge loan.

Tata Chemicals North America is a Sandy, Utah-based producer of soda ash.

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