CSP Technologies, American Tire launch to lenders; New Media Investment downsizes term loan

By Sara Rosenberg

New York, Jan. 9 – CSP Technologies North America LLC released price talk on its term loan in connection with its bank meeting on Friday, and American Tire Distributors Inc. came out with original issue discount guidance on its term loan.

Also, New Media Investment Group Inc. reduced the size of its incremental term loan and added an incremental revolver to its capital structure, Digital River Inc. and Alliant Holdings firmed the launch dates for their new deals, and Dynacast International is readying the bank meeting for its term loans.

CSP discloses talk

CSP Technologies held its bank meeting on Friday morning, launching its $170 million first-lien term loan with talk of Libor plus 525 basis points to 550 bps with a 1% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year, according to a market source.

The company’s $195 million credit facility also includes a $25 million revolver.

Commitments are due on Jan. 23, the source said.

Barclays is leading the deal that will be used with about $190 million in equity to fund the roughly $360 million acquisition of the company by Wendel Group.

Total leverage is 5.1 times.

Closing is expected in the first quarter, following customary consultation with the company’s French Workers Council and after receiving necessary approvals from the antitrust authorities.

CSP Technologies is an Auburn, Ala.-based designer and producer of desiccant plastic vials for the diabetes test strip market.

American Tire reveals OID

American Tire released original issue discount talk of 98 on its $140 million non-fungible covenant-light secured term loan due June 1, 2018 that launched with a morning call, a market source remarked.

Price talk on the term loan came out prior to launch at Libor plus 475 bps with a step-down to Libor plus 450 bps at total net leverage of 4 times and a 1% Libor floor.

The new term loan has 101 hard call protection until March 28, 2015, which matches the existing term loan.

Bank of America Merrill Lynch is leading the deal that will be used with funds from an initial public offering of common stock to redeem 11½% senior subordinated notes due 2018 and for general corporate purposes.

American Tire amending

In connection with the new term loan, American Tire is seeking amendment to its existing term loan to change the pricing step-down to Libor plus 450 bps so that it would take effect at total net leverage of 4 times instead of at 4.5 times.

The current pricing on the existing term of Libor plus 475 bps will be unchanged with the amendment.

Additionally, the amendment will revise the secured debt incurrence test to 4.5 times net secured leverage from 4 times.

Existing lenders are being offered a 25 bps amendment fee.

On Friday, the company’s existing term loan was flat in trading at 99½ bid, par ¼ offered, a trader added.

American Tire is a Huntersville, N.C.-based replacement tire distributor.

New Media tweaks deal

New Media Investment Group reduced its incremental term loan due June 2020 to $102 million from $170 million and added a $50 million incremental revolver to its financing plans, according to a market source.

In addition, the term loan, which launched with a bank meeting in early December but didn’t end up syndicating, is expected to relaunch later this month for a formal syndication, the source said.

Pricing on the term loan is Libor plus 625 bps with a 1% Libor floor.

Initial talk on the loan last month was Libor plus 550 bps to 575 bps with a 1% Libor floor and an original issue discount of 99.

Citizens Financial Group is leading the deal (B2/B+) that is being used with cash on the balance sheet to fund the $280 million acquisition of Halifax Media Group, a Daytona Beach, Fla.-based newspaper publisher.

New Media is a New York-based publisher of locally based print and online media.

Digital River timing emerges

Digital River set a bank meeting for Jan. 21 to launch its $345 million senior secured credit facility, a market source said. The deal was previously described as expected mid-January business.

The facility consists of a $10 million revolver, a $255 million first-lien term loan, and an $80 million second-lien term loan that was pre-sold.

Macquarie Capital (USA) Inc. is leading the deal that will be used with up to $328.9 million in equity to fund the buyout of the company by Siris Capital Group LLC for $26.00 per share in cash, or about $840 million.

Closing is expected this quarter, subject to customary conditions, including the receipt of shareholder approval and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

Digital River is a Minneapolis-based provider of commerce as a service.

Alliant schedules call

Alliant Holdings nailed down timing on the launch of its $360 million add-on first-lien term loan with a conference call slated to take place on Wednesday, according to a market source. When first announced the other day, the deal was labeled as expected to come during the week of Jan. 12.

Macquarie Capital (USA) Inc. and KKR Capital Markets LLC are leading the loan that will be used to fund acquisitions.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Dynacast on deck

Dynacast plans to hold a bank meeting at 11 a.m. ET on Monday to launch $700 million of new term loans, according to a market source.

The debt consists of a $530 million seven-year first-lien term loan and a $170 million eight-year second-lien term loan, the source said.

J.P. Morgan Securities LLC, Barclays and Macquarie Capital are leading the deal that will be used to help fund the buyout of the company by Partners Group in a transaction with an overall enterprise value of $1.1 billion.

Partners Group is buying Dynacast from existing financial investors and is joined in the acquisition by Kenner & Co., an existing shareholder, and the company’s management team, which will both roll over significant equity stakes into the new transaction.

Closing is expected in February, subject to regulatory approvals and customary conditions.

Dynacast is a Charlotte, N.C.-based manufacturer of small, highly complex metal components.

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