Cornerstone Building, Tekni-Plex price guidance surfaces; Atlantic Aviation readies deal

By Sara Rosenberg

New York, July 13 – In the primary market on Wednesday, Cornerstone Building Brands Inc. released price talk on its first-lien term loan with launch, and Tekni-Plex Inc. (Trident TPI Holdings Inc.) approached lenders with an incremental first-lien term loan.

Furthermore, Atlantic Aviation (KKR Apple Bidco LLC) surfaced with plans to bring an incremental first-lien term loan to market this week.

Cornerstone talk

Cornerstone Building held its call in the afternoon and announced price talk on its $410 million six-year covenant-lite first-lien term loan (B2/B) at SOFR plus 562.5 basis points with a 0.5% floor and an original issue discount of 93, according to a market source.

The term loan is non-callable for two years, then at 75% of the coupon in year three and 37.5% of the coupon in year four.

Commitments are due at 10 a.m. ET on Tuesday.

Deutsche Bank Securities Inc., UBS Investment Bank, Barclays, BNP Paribas Securities Corp., RBC Capital Markets, Societe Generale, Goldman Sachs Bank USA, Natixis and Jefferies LLC are leading the deal. Deutsche Bank and UBS are the co-left leads.

The loan will be used with $600 million of additional secured debt and $464 million of PIK HoldCo debt to fund the acquisition of 51% of shares outstanding in the company by Clayton, Dubilier & Rice, who currently owns about 49% of the company, for $24.65 per share. The transaction has an enterprise value of about $5.8 billion.

Cornerstone is a Cary, N.C.-based manufacturer of exterior building products.

Tekni-Plex holds call

Tekni-Plex emerged in the morning with plans to hold a lender call at 1 p.m. ET to launch a non-fungible $125 million incremental first-lien term loan (B2/B-) due Sept. 17, 2028 talked at SOFR plus 525 bps with a 0.5% floor, an original issue discount of 92 and 101 soft call protection for six months, a market source said.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a tuck-in acquisition.

Tekni-Plex is a Wayne, Pa.-based provider of specialty packaging solutions.

Atlantic Aviation on deck

Atlantic Aviation set a lender call for 10 a.m. ET on Thursday to launch a non-fungible $325 million incremental first-lien term loan (B1/B+) due Sept. 23, 2028, a market source remarked.

The incremental term loan has 101 soft call protection for six months, the source added.

Jefferies LLC, KKR Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc., Mizuho, BNP Paribas Securities Corp., ING, Societe Generale, SMBC, Wells Fargo Securities LLC and U.S. Bank are leading the deal that will be used to refinance existing revolver borrowings and for general corporate purposes.

Atlantic Aviation is an operator of fixed base operations, providing a full suite of critical services to the private aviation sector.

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