Navios, Atrium Innovations, Aspen Dental break; Valeant term F dips; Allnex makes changes

By Sara Rosenberg

New York, March 6 – Navios Maritime Partners LP’s first-lien term loan B emerged in the secondary market on Monday above its original issue discount, and, following updates to terms, deals from Atrium Innovations Inc. and Aspen Dental (ADMI Corp.) freed up too.

In more trading happenings, Valeant Pharmaceuticals International Inc.’s term loan F weakened as the company came to market with an incremental loan.

Returning to the primary market, Allnex added a proposal for an add-on U.S. dollar and euro term loan and tweaked its repricing requests, and XPO Logistics Inc. set the spread on its term loan at the low end of talk after first launching to investors in the morning.

Furthermore, RPI Finance Trust (Royalty Pharma), Capital Automotive LP, Big Jack’s Holdings LP (Jack’s Family Restaurant), Allison Transmission Inc. and Gartner Inc. released price talk with launch, and Outfront Media Inc., Entegris Inc., HUB International Ltd. and Eldorado Resorts Inc. joined this week’s primary calendar.

Navios frees up

Navios Maritime’s $405 million 3.5-year senior secured first-lien term loan B (B3/B) began trading on Monday, with levels quoted at 98½ bid, 99½ offered, according to a trader.

Pricing on the loan is Libor plus 500 basis points with a 1% Libor floor, and it was sold at an original issue discount of 97. The debt has 102 hard call protection for six months and a 101 hard for the following nine months.

On Friday, the term loan was upsized from $400 million, pricing was raised from Libor plus 475 bps, the discount widened from 98.5, the call protection was revised from a 101 soft call for one year, the maturity was shortened from five years, and amortization was adjusted to 5% per annum from 2.5% per annum for years one and two and 5% thereafter.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, S. Goldman Advisors LLC, DVB, Credit Agricole, ABN Amro and Clarkson are leading the deal that be used to refinance existing debt.

Closing is expected on March 14.

Navios Maritime is a Monaco-based seaborne shipping and logistics company.

Atrium tweaked

Atrium Innovations changed the original issue discount on its fungible $190 million add-on first-lien term loan (B2) due Feb. 15, 2021 to 99.875 from 99.5 and left pricing at Libor plus 350 bps with a 1% Libor floor, according to a market source.

As before, in connection with this transaction, pricing on the company’s existing first-lien term loan will be lifted to Libor plus 350 bps with a 1% Libor floor from Libor plus 325 bps with a 1% Libor floor.

The debt is getting 101 soft call protection for six months.

Including the add-on, the U.S. first-lien term loan will total $530.4 million.

Recommitments were due at 1 p.m. ET on Monday, the source said.

Atrium hits secondary

After terms firmed up, Atrium’s first-lien loan broke for trading, and levels were quoted at par ¼ bid, 101 offered, a trader added.

RBC Capital Markets, Deutsche Bank Securities Inc., National Bank of Canada and TD Securities are leading the deal that will be used to repay the company’s existing euro first-lien term loan and second-lien term loan.

Existing revolver and U.S. and euro first-lien term loan lenders who consented to an amendment of the existing credit agreement were paid a 12.5bps amendment fee.

Permira is the sponsor.

Atrium is a Westmount, Quebec-based developer and manufacturer of nutritional health products.

Aspen firms price

Aspen Dental finalized the issue price on its fungible $175 million add-on term loan B due April 30, 2022 at par, the tight end of the 99.75 to par talk, and left pricing at Libor plus 375 bps with a 25 bps step-down at less than 3.15 times first-lien net leverage and a 1% Libor floor, a market source remarked.

Previously in syndication, pricing on the add-on loan was reduced from Libor plus 425 bps, and the company added a repricing request of its existing term loan B to Libor plus 375 bps with a 1% Libor floor from Libor plus 425 bps with a 1% Libor floor.

The repriced loan was offered at par and all of the term loan B debt is getting 101 soft call protection for six months.

Including the add-on, the term loan B will total $618.6 million.

Aspen starts trading

In the late afternoon, Aspen Dental’s term loan B made its way into the secondary market, and levels were quoted at par ¾ bid, 101½ offered, a trader said.

RBC Capital Markets LLC is leading the deal.

With this transaction, existing lenders were offered a 25 bps amendment fee.

East Syracuse, N.Y.-based dental support organization, Aspen Dental, an American Securities portfolio company, will use the add-on loan to fund a dividend.

Valeant term F softens

Also in trading, Valeant Pharmaceuticals’ term loan F dipped to par 3/8 bid, par 7/8 offered from par ¾ bid, 101 offered as the company held a lender call at 11 a.m. ET on Monday to launch a fungible $3.06 billion incremental series F-3 term loan B (Ba3) due April 1, 2022 talked at Libor plus 475 bps with a 0.75% Libor floor and an original issue discount of 99.75 on new money, according to a trader.

The spread and the floor on the incremental loan matches pricing on the existing series F term loan B.

Barclays and Goldman Sachs Bank USA are leading the deal that will be used to extend a portion of the series D-2 term loan B, series C-2 term loan B and series E-1 term loan B in order to create one series F tranche.

Extending D-2, C-2 and E-1 lenders are being offered a 25 bps consent fee to be paid as an original issue discount on the incremental F-3 loan, series F term loan B lenders are being offered a 25 bps consent fee and non-extending series D-2, C-2 and E-1 lenders are not being offered any consent fee, the source said.

Commitments and consents are due at 2 p.m. ET on Friday.

Valeant requests amendment

In connection with the refinancing, Valeant is seeking an amendment to its credit agreement to provide for additional covenant cushioning and improve financial flexibility, the source continued. A news release said that the amendment would remove the maintenance covenants from the term B loan, revise maintenance covenants under the revolver and modify certain other provisions.

Along with the term B extensions, the refinancing is expected to have the effect of extending the maturity date of the existing revolver, repaying all of the outstanding term loan A borrowings and repaying a portion of the outstanding 6.75% senior notes due 2018.

Other funds for the refinancing are expected to come from the issuance of new secured debt securities.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

Allnex reworked

Back in the primary market, Allnex went out to lenders with a €425 million equivalent U.S. dollar and euro add-on term loan to fund a dividend, and, as a result, revised price talk on its U.S. and euro term loan repricing proposals, a market source said.

The add-on term loan is talked at Libor/Euribor plus 325 bps to 350 bps with a 0.75% floor and an original issue discount of 99.75 for new money, the source continued.

Talk on the repricing of the company’s roughly $698 million term loan was changed to Libor plus 325 bps to 350 bps with a 0.75% Libor floor from Libor plus 300 bps to 325 bps with a 0.75% Libor floor, and talk on the repricing of the company’s roughly €730 million term loan was changed to Euribor plus 325 bps to 350 bps with a 0.75% floor from Euribor plus 325 bps to 350 bps with a 0% floor.

The repricings, which will take the U.S. and euro term loans down from Libor/Euribor plus 425 bps with a 0.75% floor, are still offered at par, and all of the debt is still getting 101 soft call protection for six months.

Recommitments are due on Thursday, the source added.

Morgan Stanley Senior Funding Inc. and ING are leading the deal for the Brussels-based supplier of resins and additives for architectural, industrial, protective, automotive and special-purpose coatings and inks.

XPO finalizes spread

XPO Logistics emerged in the morning with plans to host a lender call at 10:30 a.m. ET to launch a $1.49 billion senior secured term loan B due Oct. 30, 2021 talked at Libor plus 225 bps to 250 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Then, late in the day, pricing on the loan firmed at the low end of talk at Libor plus 225 bps, the source added.

Commitments/consents are due at noon ET on Tuesday, accelerated from 4 p.m. ET on Tuesday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance/reprice an existing term loan B that is currently priced at Libor plus 325 bps with a 1% Libor floor.

XPO Logistics is a Greenwich, Conn.-based provider of supply chain solutions.

RPI Finance reveals talk

RPI Finance Trust launched on its lender call on Monday a revised transaction that includes a $3,383,000,000 delayed-draw term loan B-6 in addition to the previously announced $1.1 billion six-year term loan B-6, and talk on the tranches emerged as Libor plus 200 bps to 225 bps with a 0% Libor floor and 101 soft call protection for six months beginning on the delayed-draw funding date, according to a market source.

The funded term loan is talked with an original issue discount of 99.75, and the delayed-draw term loan is talked with a par issue price, the source said.

Lead banks, Bank of America Merrill Lynch, Goldman Sachs Bank USA and J.P. Morgan Securities LLC, are asking for commitments by noon ET on March 13.

The funded term loan will be used to help fund the acquisition of Perrigo Co. plc’s rights to the royalty stream from the global net sales of the multiple sclerosis drug Tysabri for $2.2 billion in cash at closing and up to $650 million in potential milestone payments based upon future global net sales of Tysabri during 2018 and 2020, and the delayed-draw term loan will be used to refinance a term loan B-5 priced at Libor plus 250 bps with a 0% Libor floor. The B-5 tranche has 101 soft call protection that expires in April.

RPI is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

Capital Automotive terms

Capital Automotive came out with price talk on its $1.115 billion seven-year first-lien term loan (B1/B) and $690 million eight-year second-lien term loan (B3/CCC+) in connection with its lender call on Monday, a market source remarked.

The first-lien term loan is talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 600 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $2,005,000,000 senior secured credit facility also provides for a $200 million five-year revolver (B1/B).

Commitments are due at noon ET on March 16.

Barclays is the left bookrunner on the deal that will be used to refinance existing bank debt, fund a cash dividend to Brookfield Asset Management and its institutional partners and pay related fees and expenses.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

Big Jack’s guidance

Big Jack’s Holdings held its bank meeting in the morning, launching its $275 million seven-year term loan B at talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

The company’s $305 million senior secured credit facility (B3) also includes a $30 million five-year revolver.

Commitments are due on March 20, the source added.

RBC Capital Markets and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and fund a dividend.

Onex Partners Manager LP is the sponsor.

Big Jack’s is an Alabama-based operator of premium quick-service restaurants.

Allison seeks repricing

Allison Transmission launched without a call a repricing of its $1,188,000,000 senior secured covenant-light term loan B due September 2022 at talk of Libor plus 200 bps to 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Cashless roll commitments are due at noon ET on March 13, and new money commitments are due at noon ET on March 14, the source said.

Citigroup Global Markets Inc. is leading the deal that will reprice the existing term loan B down from Libor plus 250 bps with a 0.75% Libor floor.

Closing is expected on March 24, the source added.

Allison Transmission is an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems.

Gartner launches

Gartner held its bank meeting, launching a $400 million incremental term loan A talked at Libor plus 250 bps, subject to a leverage-grid, with a 0% Libor floor, and a $975 million term loan B talked at Libor plus 250 bps with a 0% Libor floor, a discount of 99.5 and 101 soft call protection for six months, a market source said.

J.P. Morgan Securities LLC and Goldman Sachs Bank USA are leading the $1,375,000,000 in term loans (BB+) that will be used to help fund the acquisition of CEB Inc. for $54.00 in cash and 0.2284 of a share of Gartner common stock for each share of CEB common stock they own, implying 70% cash and 30% stock consideration for the offer. The transaction has a total enterprise value of about $3.3 billion, including the assumption of about $700 million in CEB net debt.

Closing is expected in the first half of this year, subject to the approval of CEB shareholders, regulatory approvals and customary conditions.

Gartner is a Stamford, Conn.-based information technology research and advisory company. CEB is an Arlington, Va.-based best practice insight and technology company.

Outfront joins calendar

Also on the new deal front, Outfront Media set a lender call for 11 a.m. ET on Tuesday to launch a $1.1 billion senior secured credit facility (Ba1/BB+), according to a market source.

The facility consists of a $430 million revolver and a $670 million first-lien term loan B, the source said.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC and MUFG are leading the deal that will be used to amend and extend an existing revolver and term loan B, upsize the term loan B by $10 million and pay related fees and expenses.

Outfront Media is a New York-based out-of-home media company.

Entegris readies deal

Entegris scheduled a lender call for 9:45 a.m. ET on Tuesday to launch a repricing of its $234 million first-lien term loan due April 2021 talked at Libor plus 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Goldman Sachs Bank USA is leading the deal that will reprice the existing term loan down from Libor plus 275 bps with a 0.75% Libor floor.

Entegris is a Billerica, Mass.-based provider of solutions for advanced manufacturing in a variety of high technology industries, including semiconductor, microelectronics, alternative energy and life sciences.

HUB coming soon

HUB International will hold a lender call at 11 a.m. ET on Tuesday to launch a $375 million incremental first-lien term loan B, a market source said.

Morgan Stanley Senior Funding Inc., RBC Capital Markets, Macquarie Capital (USA) Inc., Bank of America Merrill Lynch and BMO Capital Markets are leading the deal that will be used to repay revolver borrowings and to refinance existing second-lien notes due 2021.

HUB is a Chicago-based insurance brokerage.

Eldorado on deck

Eldorado Resorts set a bank meeting for Tuesday to launch its previously announced $1.45 billion seven-year covenant-light term loan B, a market source remarked, adding that the loan is talked at Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Based on the commitment letter, the company is also expected to get a $300 million five-year revolver.

J.P. Morgan Securities LLC is leading the deal that will be used with an expected $375 million eight-year senior notes offering to fund the acquisition of Isle of Capri Casinos Inc. for $23.00 in cash or 1.638 shares of Eldorado common stock, at the election of each Isle of Capri shareholder, reflecting total consideration of about $1.7 billion, inclusive of $929 million of long-term debt of Isle of Capri and its subsidiaries.

Elections are subject to proration such that the outstanding shares of Isle common stock will be exchanged for aggregate consideration comprised of 58% cash and 42% Eldorado common stock.

Net leverage is expected to be 5.1 times.

Closing is anticipated in the second quarter, subject to approval of the stockholders of Eldorado Resorts and Isle of Capri, regulatory approvals and other customary conditions.

Reno, Nev.-based Eldorado and St. Louis-based Isle of Capri are gaming and entertainment companies.

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