CPM Holdings credit facility is latest casualty of unfavorable primary market conditions

By Sara Rosenberg

New York, Dec. 19 – CPM Holdings Inc. has opted to withdraw its credit facility from the primary market due to poor conditions. The leads, however, are hoping to be able to bring the deal back in the New Year, according to sources.

The facility $445 million senior secured consisted of a $30 million revolver (B1/B+), a $315 million seven-year first-lien term B (B1/B+) and a $100 million eight-year second-lien term loan (Caa1/B).

Talk on the first-lien term loan was Libor plus 500 basis points to 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan was Libor plus 900 bps to 925 bps with a 1% Libor floor, a discount of 98½, and hard call protection of 102 in year one and 101 in year two.

Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC were the joint bookrunners on the deal and joint lead arrangers with Rabobank.

Proceeds were going to be used to refinance existing debt and pay a distribution to shareholders.

CPM is a Waterloo, Iowa-based supplier of process equipment used for oilseed processing and animal feed production.

Media General closes

In other news, Media General Inc. completed its merger with LIN Media LLC, a news release said, and to fund a cash payment to LIN shareholders and refinance certain LIN debt, Media General got $915 million in new senior secured bank debt (Ba3/BB+).

The debt consists of a $90 million revolver and an $825 million term loan B-2 due July 2020.

Pricing on the term loan B-2 is Libor plus 325 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98¾. There is 101 soft call protection for six months.

Secured leverage is 3.6 times and total leverage is 5 times.

Media General leads

RBC Capital Markets LLC, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bank and Capital One led Media General’s debt.

During syndication, the term loan B-2 was upsized from $325 million, the discount was modified from 98½ and the maximum total net leverage covenant was removed, making the tranche covenant-light.

As a result of the term loan B-2 upsizing and an increase in the company’s bond offering to $400 million from $300 million, plans for a $600 million five-year term loan A that was talked at Libor plus 250 bps with a 50 bps upfront fee were terminated.

Media General is a Richmond, Va.-based local television broadcasting and digital media company. LIN Media is an Austin, Texas-based local multimedia company.

Cengage wraps loan

Cengage Learning Acquisitions Inc. closed on its fungible $300 million tack-on covenant-light senior secured term loan due March 31, 2020, according to a news release.

Pricing on the tack-on term loan is Libor plus 600 bps with a 1% Libor floor, which matches the existing term loan, and it was sold at an original issue discount of 99. The tack-on loan and the existing $1,741,000,000 term loan got 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC led the deal that is being used to fund a dividend to shareholders.

As part of the transaction, existing lenders were paid a 25 bps amendment fee. This fee was added during syndication.

Cengage is a Stamford, Conn.-based provider of teaching, learning and research services for the academic, professional and library markets.

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