Tekni-Plex, Sovos, Pilot Travel, Allen Media, Alvogen break; Hyperion Materials updated

By Sara Rosenberg

New York, July 29 – Tekni-Plex Inc. (Trident TPI Holdings Inc.) added a delayed-draw first-lien term loan to its transaction and a leverage-based pricing step-down, trimmed the Libor floor and tightened the original issue discount, before freeing up for trading on Thursday.

Other deals to make their way into the secondary market on Thursday included Sovos Compliance LLC, Pilot Travel Centers LLC, Allen Media LLC and Alvogen Pharma US Inc.

In more happenings, Hyperion Materials & Technologies upsized its first-lien term loan, lowered the spread and modified the issue price.

Also, Duravant LLC (Engineered Machinery Holdings Inc.), Western Dental (Premier Dental Services Inc.), Sotheby’s and Mariner Wealth Advisors released price talk with launch, and Vistage International Inc. surfaced with new deal plans.

Tekni-Plex revised, trades

Tekni-Plex lifted its seven-year incremental first-lien term loan to $805 million from $705 million through the addition of a $100 million delayed-draw tranche, added a 25 basis points pricing step-down at 4.5x first-lien net leverage, reduced the Libor floor to 0.5% from 0.75% and changed the original issue discount to 99.75 from 99.5, a market source remarked.

Initial pricing on the term loan remained at Libor plus 400 bps and the debt still has 101 soft call protection for six months.

The ticking fee on the delayed-draw term loan is half the margin for days 46 to 90 and the full margin thereafter, the source continued.

Recommitments were due at 10 a.m. ET on Thursday and the incremental term loan began trading later in the day, with levels quoted at par bid, par 3/8 offered, another source added.

Credit Suisse Securities (USA) LLC, BMO Capital Markets and Jefferies LLC are leading the deal that will be used to fund the acquisition of Grupo Phoenix, a manufacturer of rigid packaging, and other tuck-in acquisitions.

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

Sovos frees up

Sovos Compliance’s $1.46 billion seven-year first-lien term loan (B3/B-), of which $215 million is delayed-draw, broke for trading, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 450 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for one year and a ticking of half the margin from days 61 to 90 and the full margin thereafter.

During syndication, pricing on the term loan was lowered from Libor plus 475 bps, the floor was reduced from 0.75% and the discount was revised from talk in the range of 99 to 99.5.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Mizuho, TD Securities (USA) LLC, Fifth Third and Nomura are leading the deal that will be used to refinance existing debt, finance acquisition activity and fund a shareholder distribution.

Sovos Compliance is a provider of indirect tax and regulatory compliance software.

Pilot tops OID

Pilot Travel Centers’ $3.5 billion seven-year covenant-lite term loan B (Ba1/BB+) also began trading, with levels quoted at 99 5/8 bid, 99 7/8 offered, a market source said.

Pricing on the term loan is Libor plus 200 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.

Wells Fargo Securities LLC, BofA Securities Inc., Truist and US Bank are leading the deal that will be used to fund the redemption of the outstanding $2.3 billion in preferred equity interests in the company held by the Haslam/Call families, repay a revolver due 2024 and repay a portion of an existing term loan A due 2024.

Berkshire Hathaway is the sponsor.

Pilot Travel is a Knoxville, Tenn.-based operator of travel centers and retailer of diesel fuel to the over-the-road market.

Allen Media breaks

Allen Media’s fungible $210 million add-on term loan B, of which $100 million is a delayed-draw tranche, freed up as well, with levels quoted at 99 1/8 bid, 99½ offered, according to a market source.

Pricing on the add-on term loan B is Libor plus 550 bps with a 0% Libor floor, in line with existing term loan B pricing, and the debt was sold at an original issue discount of 99.

RBC Capital Markets is leading the deal that will be used to help fund the acquisition of certain television stations owned by Quincy Media Inc. for $380 million.

Closing is expected on the third quarter.

Allen Media is a Los Angeles-based media, content and technology company.

Alvogen hits secondary

Alvogen’s fungible $160 million senior secured incremental first-lien term loan (B3/B-) due Dec. 31, 2023 began trading too, with levels quoted at 96½ bid, 97½ offered, a market source remarked.

Pricing on the incremental term loan is Libor plus 525 bps with a 1% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 96.25.

During syndication, the incremental term loan was upsized from $135 million.

Jefferies LLC is leading the deal that will be used to refinance an existing term loan B due 2022 priced at Libor plus 475 bps with a 1% Libor floor and, due to the recent upsizing, to add cash to the balance sheet.

Pro forma for the transaction, the first-lien term loan will total about $961,438,000.

Alvogen is a Pine Brook, N.J., pharmaceutical company that specializes in developing, licensing, manufacturing, marketing and distributing niche, complex generic and branded products.

Hyperion reworked

Back in the primary market, Hyperion Materials & Technologies raised its first-lien term loan to $405 million from $390 million, trimmed pricing to Libor plus 450 bps from Libor plus 475 bps and adjusted the original issue discount to 99.5 from 99, a market source said.

As before, the term loan has a 0.5% Libor floor and 101 soft call protection for six months.

The company’s now $480 million of credit facilities, also include a $75 million revolver.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to refinance existing debt and, due to the upsizing, to fund additional cash to the balance sheet.

Hyperion Materials, a portfolio company of KKR, is a Worthington, Ohio-based solutions provider of effective applications for hard and super-hard materials.

Duravant guidance

Duravant held its call at 11:30 a.m. ET on Thursday and, a few hours before the call began, price talk was announced on its $1.135 billion incremental first-lien term loan due May 21, 2028 and fungible $375 million incremental second-lien term loan due May 21, 2029, according to a market source.

Talk on the first-lien term loan is Libor plus 375 bps with two 25 bps step-downs at first-lien net leverage of 4.75x and 4.25x and one 25 bps initial public offering-based step-down, a 0.75% Libor floor and an original issue discount of 99.5, the source said. The debt has 101 soft call protection for six months.

The incremental second-lien loan is priced at Libor plus 650 bps with a 0.75% Libor floor and is talked with a par issue price. This tranche has the same 102, 101 hard call protection as the existing second-lien loan.

Commitments are due at 2 p.m. ET on Aug. 5, the source added.

Jefferies LLC is the left lead on the deal that will be used to refinance existing near-term maturities and fund a shareholder distribution.

Duravant is a Downers Grove, Ill.-based automation solutions company.

Western Dental launches

Western Dental came out with talk of Libor plus 475 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $490 million seven-year term loan B (B3/B-) that launched with a call in the afternoon, a market source remarked.

Commitments are due at noon ET on Aug. 12.

KKR Capital Markets is the left lead on the deal, which will be used to refinance existing term loans.

Western Dental is an Orange, Calif.-based dental services organization.

Sotheby’s proposed terms

Sotheby’s launched on its morning call its $458 million covenant-lite term loan B due Jan. 15, 2027 at talk of Libor plus 400 bps to 425 bps with a 0.5% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

BNP Paribas Securities Corp. is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 0.75% Libor floor.

Sotheby’s is a New York-based auction house.

Mariner Wealth talk

Mariner Wealth Advisors held its call in the morning, launching its $400 million term loan (B1/B), of which $100 million is delayed-draw, at talk of Libor plus 325 bps to 350 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Aug. 11, the source added.

BMO Capital Markets, RBC Capital Markets and UBS Investment Bank are leading the deal that will be used to refinance existing debt and for acquisition financing.

Mariner Wealth Advisors is an investment adviser.

Vistage joins calendar

Vistage set a lender call for noon ET on Tuesday to launch a fungible $90 million add-on term loan, according to a market source.

Macquarie Capital (USA) Inc. is leading the deal that will be used to repay revolver borrowings and to fund a dividend.

Vistage is a San Diego-based for-profit membership organization of CEOs.

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