Hilton, MW Industries, Clean Harbors, WCA Waste break; LA Fitness, LegalShield revise deals

By Sara Rosenberg

New York, April 12 – Deals from Hilton Worldwide Finance LLC, MW Industries (Helix Acquisition Holdings Inc.) and Clean Harbors Inc. all made their way into the secondary market on Thursday, and WCA Waste Corp. freed to trade after modifying the issue price on its add-on term loan.

In more happenings, LA Fitness (Fitness International LLC) reduced the size of its term loan B while increasing the size of its term loan A and tightened the original issue discount on the B loan, and LegalShield cut the spread on its first-lien term loan.

Furthermore, Consolidated Precision Products Corp. (WP CPP Holdings LLC), Ensono LP, Samsonite International SA, USI Inc. and Press Ganey Holdings Inc. disclosed price talk with launch.

Hilton starts trading

Hilton Worldwide’s $3,419,000,000 covenant-light term loan B (Baa3/BBB-) due Oct. 25, 2023 freed up for trading on Thursday, with levels quoted at par ¾ bid, 101 offered, according to a trader.

Pricing on the term loan is Libor plus 175 basis points with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Wednesday, the loan was downsized from $3,919,000,000 due to plans to paydown $500 million of the term loan B from incremental bond proceeds being raised through a senior notes offering that was recently upsized to $1.5 billion from $500 million.

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor.

Closing is expected on April 19.

Hilton is a McLean, Va.-based hospitality company.

MW hits secondary

MW Industries’ fungible $75 million add-on first-lien term loan (B) and repriced $383 million first-lien term loan (B) began trading as well, with levels quoted at par 3/8 bid, par 7/8 offered, a trader said.

Pricing on the term loan debt is Libor plus 350 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the issue price on the add-on term loan was tightened from 99.75.

RBC Capital Markets is leading the deal.

The add-on will be used to fund an acquisition and the repricing will take the existing term loan down from Libor plus 400 bps with a 0% Libor floor.

MW Industries is a Rosemont, Ind.-based designer and manufacturer of springs and other specialty engineered metal components for diverse end markets.

Clean Harbors frees up

Clean Harbors’ $397 million senior secured first-lien term loan (Baa3/BBB-) due June 2024 also broke, with levels seen at par ¼ bid, par 5/8 offered, a market source remarked.

Pricing on the term loan is Libor plus 175 bps with a 0% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor.

Closing is expected during the week of April 16.

Clean Harbors is a Norwell, Mass.-based provider of environmental, energy and industrial services.

WCA tweaked, breaks

WCA Waste tightened the issue price on its fungible $100 million add-on term loan (B+) to par from 99.75, according to a market source.

Pricing on the add-on term loan and repricing of the company’s existing $295 million term loan (B+) is still Libor plus 250 bps with no Libor floor, the repriced loan still has a par issue price and all of the debt is still getting 101 soft call protection for six months.

After terms finalized, the term loan debt hit the secondary market and levels were quoted at par 3/8 bid, par 7/8 offered, the source said.

SunTrust Robinson Humphrey Inc. is leading the deal.

The add-on loan will be used to pay down revolver borrowings and add cash to the balance sheet, and the repricing will take the existing term loan down from Libor plus 275 bps with no Libor floor.

WCA is a Houston-based vertically integrated non-hazardous solid waste management company.

LA Fitness revised

In other news, LA Fitness cut its seven-year covenant-light term loan B (B1/BB-) to $675 million from $700 million and m oved the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan B is priced at Libor plus 325 bps with a 0% Libor floor and has 101 soft call protection for six months.

Allocations are targeted for Friday, the source said.

Bank of America Merrill Lynch, MUFG, Bank of the West and Fifth Third Bank are leading the deal that will be used with new pro rata facilities to refinance existing credit facilities and to fully redeem the outstanding $337 million of 6% preferred equity held by Seidler Institutional and Madison Dearborn Partners.

Due to the term loan B downsizing, the term loan A is being upsized by $25 million, the source added.

LA Fitness is an Irvine, Calif.-based non-franchised fitness club operator.

LegalShield trims spread

LegalShield reduced pricing on its $550 million seven-year covenant-light first-lien term loan (B1/B) to Libor plus 325 bps from Libor plus 350 bps, and left the 25 bps step-down 0.5 times inside closing first-lien net leverage, 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source said.

The company’s $750 million of senior secured credit facilities also include a $50 million revolver (B1/B) and a $150 million eight-year covenant-light second-lien term loan (Caa1/B-).

The second-lien term loan is still priced at Libor plus 750 bps with a 0% Libor floor and a discount of 99, and has call protection of 102 in year one and 101 in year two.

Commitments are due at 11 a.m. ET on Friday, the source added.

RBC Capital Markets, SunTrust Robinson Humphrey Inc., KKR Capital Markets, Capital One and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by Stone Point Capital LLC from MidOcean Partners.

Closing is expected in the second quarter.

LegalShield is an Ada, Okla.-based provider of legal plans and identity theft solutions.

Consolidated Precision talk

Consolidated Precision Products held its lender presentation on Thursday and released price talk on its $875 million of senior secured credit facilities, according to a market source.

The $125 million five-year revolver (B) is talked at Libor plus 375 bps with a 0% Libor floor, the $625 million seven-year covenant-light first-lien term loan (B) is talked at Libor plus 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the $125 million eight-year covenant-light second-lien term loan (CCC+) is talked at Libor plus 775 bps with a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on April 24.

Morgan Stanley Senior Funding Inc., Antares Capital, ING Capital LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt.

Consolidated Precision Products is a Cleveland-based manufacturer of engineered components and subassemblies primarily for the commercial aerospace, defense and industrial gas turbine markets.

Ensono proposed terms

Ensono announced price talk on its $643 million of senior secured credit facilities with its morning lender presentation, a market source remarked.

Talk on the $60 million five-year revolver (B2/B) is Libor plus 500 bps to 525 bps with a 0% Libor floor, talk on the $460 million seven-year covenant-light first-lien term loan (B2/B) is Libor plus 500 bps to 525 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the $123 million eight-year covenant-light second-lien term loan (Caa2/CCC) is Libor plus 900 bps to 925 bps with a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source added.

Commitments are due on April 25.

Morgan Stanley Senior Funding Inc., Barclays, RBC Capital Markets and TD Securities (USA) LLC are leading the deal that will be used to fund the acquisition of Wipro Ltd.’s hosted data center services business for $405 million.

Closing is expected in the quarter ending June, subject to customary conditions and regulatory approvals.

Ensono is a Chicago-based hybrid IT services provider.

Samsonite launches

Samsonite launched on its morning call its $665 million seven-year covenant-light term loan B (Ba1/BBB-) at talk of Libor plus 175 bps to 200 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

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

Bank of America Merrill Lynch, HSBC Bank USA, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance an existing term loan B.

Samsonite is a Hong Kong-based manufacturer of bags and luggage.

USI floats guidance

USI came out with talk of Libor plus 300 bps with a 0% Libor floor and an original issue discount of 99.75 to par on its fungible $200 million incremental covenant-light term loan B due May 16, 2024 before its morning lender call kicked off, a market source said.

Commitments are due at 1 p.m. ET on Friday. The deadline was accelerated shortly after the lender call took place from noon ET on Monday, the source added.

Bank of America Merrill Lynch, KKR Capital Markets, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund the acquisition of Key Insurance & Benefits Services Inc. and for general corporate purposes.

USI is a Valhalla, N.Y.-based insurance brokerage and consulting firm.

Press Ganey OID talk

Press Ganey launched on its call its $90 million incremental first-lien term loan (B2) due October 2023 with original issue discount talk of 99.75, according to a market source.

The incremental term loan is priced at Libor plus 300 bps with a 1% Libor floor and has 101 soft call protection through April 23, 2018.

Commitments are due at 5 p.m. ET on Wednesday.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay revolver borrowings and second-lien debt.

Press Ganey is a Wakefield, Mass.-based provider of patient experience measurement, performance analytics and strategic advisory solutions for health care organizations.

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