Chart Industries cuts term loan spread; AxleTech gets orders; Primedia, RailAmerica add-on break

By Sara Rosenberg

New York, Sept. 29 - Chart Industries Inc. reverse flexed pricing on its oversubscribed term loan B by a whopping 75 basis points on Thursday. And, AxleTech International started to get some orders in from investors following its Thursday morning meeting even though the deal was launched without the release of price talk.

In secondary doings, Primedia Inc.'s term loan allocated and freed up for trading, with the paper seeing activity in the low-101 context. And, RailAmerica Inc.'s term loan add-on started to trade right around the mid-101 area.

Chart Industries lowered pricing on its $180 million term loan B to Libor plus 200 basis points from original price talk at launch of Libor plus 275 basis points, as the deal, like so many others in today's market, was met with strong investor demand, according to a market source.

Pricing on the $60 million revolver was left unchanged at Libor plus 250 basis points, the source added.

Citigroup and Morgan Stanley are the lead banks on the $240 million credit facility (B1/B+), with Citi the left lead.

Proceeds will be used to help fund First Reserve Corp.'s leveraged buyout of Chart for a cash purchase price of $65.74 per share, and a total transaction value of about $460 million, including the repayment of Chart's debt.

The transaction is expected to close by the end of October, assuming satisfaction of customary closing conditions.

Chart is a Garfield Heights, Ohio, supplier of products and systems for low-temperature and cryogenic applications.

AxleTech sees demand

AxleTech had already received some early commitments from investors before the end of the day despite the fact that the syndicate decided not to release price talk at the Thursday bank meeting because they are still waiting on ratings from Moody's Investors Service, according to a market source.

Standard & Poor's, however, has already released its ratings on the deal, with the first-lien bank debt assigned a B+ rating and the second-lien bank debt assigned a B- rating.

The $265 million credit facility consists of a $50 million six-year revolver, a $130 million seven-year first-lien term loan B and an $85 million 71/2-year second-lien term loan.

Merrill Lynch, JPMorgan and CIBC are the lead banks on the deal, with Merrill the left lead.

Proceeds will be used to help fund The Carlyle Group's leveraged buyout of the company from Wynnchurch Capital and other minority shareholders.

AxleTech is a Troy, Mich., supplier of axles, brakes and other drivetrain components for off-highway and specialty vehicles to the commercial and military markets.

Capella nets orders

Capella Healthcare Inc.'s $195 million credit facility had already gotten some early commitments in by Thursday morning, according to a market source, after what appears to have been a successful Wednesday afternoon launch for the deal.

The facility consists of a $40 million revolver (B3/B) talked at Libor plus 325 basis points, a $97 million term loan B (B3/B) talked at Libor plus 325 basis points and a $58 million second-lien term loan C (Caa2/CCC+) talked at Libor plus 600 basis points, the source said.

Both term loans are being offered to investors at par.

Citigroup and Bank of America are the lead banks on the deal, with Citi the left lead.

Proceeds will be used to help fund the acquisition of some hospitals from HCA Inc.

Brentwood, Tenn.-based Capella was formed earlier this year by GTCR Golder Rauner LLC, Daniel Slipkovich and Thomas Anderson for the purpose of acquiring and building acute care hospitals within the United States. Slipkovich is chief executive officer of the company, and Anderson is president.

Primedia hits the 101s

Primedia's $400 million term loan B freed up for trading during Thursday's market hours, with levels quoted at 101 bid, 101½ offered steadily from the break until the close, according to a trader.

The term loan is priced with an interest rate of Libor plus 225 basis points and contains a step down to Libor plus 200 basis points when leverage falls below 5x. Originally, the deal was launched with price talk of Libor plus 250 basis points but was recently reverse flexed with the addition of the step down.

JPMorgan is the left lead bank on the deal that will be used to refinance existing debt.

Expected ratings on the credit facility are B2 from Moody's Investors Service and B from Standard & Poor's.

Primedia is a New York-based targeted media company.

RailAmerica add-on breaks

RailAmerica's $75 million add-on to its term loan (BB) also allocated and freed up for trading on Thursday, with levels quoted at 101 3/8 bid, 101 5/8 offered, according to a trader.

The add-on was rolled right into the existing deal and the context into which it broke for trading was pretty much where the existing term loan had previously been quoted, the trader added.

UBS is the lead bank on the deal that will be used to fund the acquisition of four short line railroads serving Alcoa Inc. aluminum manufacturing operations in Texas and New York and a former specialty chemicals facility in Arkansas.

RailAmerica is a Boca Raton, Fla., owner and operator of short line freight railroad and regional rail service.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.