Berlin frees up; Elo updated; Pure Fishing, Callaway, Western Dental, TricorBraun float talk

By Sara Rosenberg

New York, Dec. 6 – Berlin Packaging LLC modified the original issue discount on its incremental first-lien term loan and then the debt made its way into the secondary market above that revised issue price.

In more happenings, Elo Touch Solutions widened the issue price on its first-lien term loan, sweetened the call protection and made some documentation changes.

Also, Pure Fishing, Callaway Golf Co., Western Dental Services and TricorBraun Holdings Inc. released price talk with launch.

Berlin tweaked, breaks

Berlin Packaging changed the original issue discount on its $60 million incremental first-lien term loan (B3/B-) due Nov. 7, 2025 to 96 from 98.55, according to a market source.

Like the existing loan, the incremental term loan is priced at Libor plus 300 basis points with a 0% Libor floor.

Commitments were due at 1 p.m. ET on Thursday and then the debt hit the secondary market, with levels quoted at 96¼ bid, another source said.

Jefferies LLC is leading the deal that will be used to fund the acquisition of the company by Oak Hill Fund IV, Canada Pension Plan Investment Board and other co-investors from Oak Hill Fund III. In connection with the transaction, Canada Pension Plan Investment Board will make a $500 million investment in the company.

The acquisition will be a permitted change of control under the company’s existing debt.

Closing is expected by year-end.

Berlin Packaging is a Chicago-based hybrid packaging supplier.

Elo Touch sets changes

Elo Touch Solutions modified the original issue discount on its $360 million seven-year covenant-light first-lien term loan (B2/B+) to 95 from talk in the range of 97 to 98 and changed the soft call protection to 102 in year one and 101 in year two from 101 for one year, a market source remarked.

Additionally, amortization on the term loan was revised to 5% per annum from 1% per annum and the excess cash flow sweep was increased to 75% with step-downs from 50%, the source continued.

As before, the term loan is priced at Libor plus 650 bps with a 0% Libor floor.

Commitments are due at noon ET on Friday and comments to the credit agreement were due at 5 p.m. ET on Thursday, the source added.

Goldman Sachs Bank USA, Citizens Bank and MidCap Financial are leading the deal that will be used to help fund the buyout of the company by Crestview Partners from the Gores Group.

Closing is expected this quarter, subject to customary conditions.

Elo Touch is a Milpitas, Calif.-based information and communications technology services and solutions provider.

Pure Fishing guidance

Pure Fishing held its bank meeting on Thursday and announced talk on its $435 million first-lien term loan at Libor plus 425 bps with no Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $740 million of credit facilities also include a $125 million ABL revolver that is expected to be undrawn at closing and a $180 million second-lien term loan that has been privately placed.

Commitments are due at noon ET on Dec. 19, the source said.

RBC Capital Markets is leading the deal that will be used to help fund the buyout of the company by Sycamore Partners from Newell Brands.

Gross proceeds to Newell from the Pure Fishing divestiture are expected to be $1.3 billion.

Closing is targeted for this quarter, subject to customary conditions, including regulatory approval.

Pure Fishing is a designer, marketer, and wholesaler of fishing equipment including rods, reels, combos, line and bait.

Callaway reveals talk

Callaway Golf disclosed talk of Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $480 million seven-year covenant-light term loan B (Ba3/BB-) that launched with an afternoon bank meeting, a market source said.

Commitments are due at noon ET on Dec. 14, the source added.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to fund the €418 million acquisition of Jack Wolfskin, an Idstein, Germany-based outdoor apparel, footwear and equipment brand.

Pro forma debt to EBITDA is around 2.9 times.

Closing is expected in the first quarter of 2019, subject to regulatory approvals and other customary conditions.

Callaway Golf is a Carlsbad, Calif.-based manufacturer and seller of golf clubs and golf balls, and seller of bags, accessories and apparel in the golf and lifestyle categories.

Western Dental launches

Western Dental Services launched on its afternoon call its fungible $145 million add-on term loan B due June 30, 2023 with original issue discount talk of 99, according to a market source.

The add-on term loan is priced at Libor plus 450 bps with a 1% Libor floor, in line with the existing term loan.

Commitments are due at noon ET on Dec. 14.

RBC Capital Markets, Deutsche Bank Securities Inc. and BMO Capital Markets are leading the deal that will be used to fund the acquisition of Access Dental Services and South Texas Dental.

Western Dental, a portfolio company of New Mountain Capital, is an Orange, Calif.-based dental services organization.

TricorBraun proposed terms

TricorBraun released original issue discount talk of 99.03, the lowest level consistent with fungibility, on its $67 million incremental term loan due November 2023 that launched with a call during the session, a market source remarked.

The incremental term loan is priced at Libor plus 375 bps with a 1% Libor floor, which matches pricing on the company’s existing roughly $649 million term loan.

Commitments are due on Dec. 13, the source added.

Antares Capital is leading the deal that will be used to fund a planned acquisition and pay down revolver borrowings.

TricorBraun, an AEA Investors portfolio company, is a St. Louis-based provider of rigid packaging products.

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