Cirque do Soleil, Univar, First Data, StandardAero, Lantheus, Summit, ION Trading break

By Sara Rosenberg

New York, June 25 – Cirque du Soleil tightened the original issue discount on its first-lien term loan before its credit facility surfaced in the secondary market on Thursday, and Univar Inc., First Data Corp., StandardAero, Lantheus Medical Imaging Inc., Summit Materials LLC and ION Trading Technologies Sarl freed up for trading as well.

In more happenings, Emerging Markets Communications LLC widened spreads and original issue discounts on its first-and second-lien term loans, shortened maturities and sweetened the second-lien call premiums.

Additionally, Amneal Pharmaceuticals LLC finalized pricing on its term loan B repricing at the high end of guidance, Jeld-Wen Inc. set the spread on its term loan at the wide end of talk and added a step-down, and Constantia Flexibles pulled its repricing from market.

Cirque tweaks OID

Cirque du Soleil modified the original issue discount on its $635 million seven-year first-lien covenant-light term loan (B1/B+) to 99.75 from revised talk of 99.5 and initial talk of 99, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 basis points with a step-down to Libor plus 375 bps at 4 times net total leverage and a 1% Libor floor. There is 101 soft call protection for one year.

The company’s $885 million credit facility also includes a $100 million revolver (B1/B+) and a $150 million eight-year second-lien covenant-light term loan (Caa1/CCC+) priced at Libor plus 825 bps with a 1% Libor floor and a discount of 98.5. The second-lien term loan has call protection of 102 in year one and 101 in year two.

Previously in syndication, the first-lien term loan was upsized from $615 million, pricing was reduced from Libor plus 425 bps, the step-down was added, and the call protection was extended from six months. Also, the second-lien term loan was downsized from $170 million, pricing firmed at the low end of the Libor plus 825 bps to 850 bps talk, and the discount was set at the wide end of the 98.5 to 99 talk. And, the MFN sunset on both term loans was removed.

Cirque starts trading

Recommitments for Cirque du Soleil’s credit facility were due at 11 a.m. ET on Thursday, and with final terms in place, the debt made its way into the secondary market in the afternoon, with the first-lien term loan quoted at 100¼ bid, 100¾ offered and the second-lien term loan quoted at 99¼ bid, a source remarked.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, RBC Capital Markets LLC, UBS AG, BMO Capital Markets Corp., National Bank of Canada, Scotiabank and TD Securities (USA) LLC are leading the deal, with Deutsche left lad on the first-lien and Bank of America left on the second-lien.

Proceeds will be used to help fund the buyout of the company by TPG and Fosun Capital. Caisse de depot et placement du Quebec will also acquire a minority interest in the company.

Closing is expected during the week of July 6, subject to customary conditions.

Cirque du Soleil is a Montreal-based producer of live artistic entertainment.

Univar hits secondary

Univar’s $2.05 billion seven-year covenant-light term loan broke too, with levels quoted at par bid, 100¼ offered, a trader said.

Pricing on the term loan is at Libor plus 325 bps, after firming at the low end of the Libor plus 325 bps to 350 bps talk. The debt has a 1% Libor floor and 101 soft call protection for six months, and was sold at an original issue discount of 99.5.

The company is also getting a €250 million seven-year covenant-light term loan priced at Euribor plus 325 bps with a 1% floor, an issued at 99.5. This tranche has 101 soft call protection for six months as well.

During syndication, the MFN sunset provision was removed from the term loans.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, HSBC Securities (USA) Inc., SunTrust Robinson Humphrey Inc., Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading the deal.

Univar refinancing

Proceeds from Univar’s term loans will be used to repay all amounts outstanding under the company’s term loan B due 2017, euro term loan due 2017 and ABL term loan due 2016. There is about $2.8 billion outstanding under the U.S. and euro term loans, and about $37.5 million outstanding under the ABL term loan.

Other funds for the refinancing are expected to come from a new senior secured ABL credit facility comprised of $1.3 billion in five-year revolvers in two tranches and a $100 million three-year term loan, and $400 million of senior notes.

Also, the company filed for an initial public offering of 35 million shares of common stock, and proceeds from that offering will be used to refinance $600 million of its 2017 subordinated notes and $50 million of its 2018 subordinated notes, pay the equity sponsors a roughly $26 million fee to terminate consulting agreement and, if any proceeds remain, for general corporate purposes.

Univar is a Downers Grove, Ill.-based distributor of industrial and specialty chemicals.

First Data levels emerge

First Data upsized its seven-year first-lien term loan to include a $725 million tranche and a €250 million tranche, versus an original total size of $750 million U.S. dollar and euro equivalent, and the debt then began trading on Thursday, with the U.S. loan quoted at 99 7/8 bid, par offered, sources said.

Pricing on the term loans is Libor/Euribor plus 375 bps with no floor, and they were sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., KKR Capital Markets, HSBC Securities (USA) Inc., Mizuho, PNC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance bonds. Credit Suisse Securities (USA) LLC is the administrative agent.

First Data is an Atlanta-based provider of electronic commerce and payment services.

StandardAero trades

StandardAero’s credit facility started trading during the session, with the $925 million seven-year first-lien covenant-light term loan seen at par bid, 100½ offered, a source remarked.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was lifted from Libor plus 375 bps.

The company’s $1,075,000,000 credit facility also includes a $150 million ABL revolver.

Jefferies Finance LLC, KKR Capital Markets and MCS Capital Markets are leading the deal that will be used with $485 million of notes to help fund the buyout of the company by Veritas Capital from Dubai Aerospace Enterprise Ltd.

StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services.

Lantheus Medical breaks

Lantheus Medical’s $365 million seven-year first-lien term loan (B3/B) also freed up, with levels quoted at 98¾ bid, 99¼ offered, according to a market source.

The term loan is priced at Libor plus 600 bps with a 1% Libor floor, and it was issued at a discount of 98.75. There is 101 soft call protection for six months.

During syndication, the spread was lifted from Libor plus 500 bps, the discount was moved from 99 and a total net leverage test starting at 6.25 times was added to the originally covenant-light loan.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Wells Fargo Securities LLC are leading the deal that will be used with initial public offering proceeds and cash on hand to redeem $400 million of 9¾% senior notes due 2017 and to repay revolver borrowings.

Closing on the term loan is conditioned upon the closing of the IPO of common stock.

Lantheus Medical is a North Billerica, Mass.-based developer, manufacturer, seller and distributor of diagnostic imaging agents.

Summit Materials frees up

Another deal to emerge in the secondary was Summit Materials’ $650 million seven-year covenant-light term loan B (B1/BB), and levels were quoted at 99 ¾ bid, 100¼ offered, a trader remarked.

Pricing on the loan is Libor plus 325 bps, after finalizing at the low end of the Libor plus 325 bps to 350 bps talk. The debt has a 1% Libor floor and 101 soft call protection for six months, and was issued at a discount of 99.5.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays and RBC Capital Markets LLC are leading the deal that will be used to help fund the acquisition of a 1.2 million short ton capacity cement plant in Davenport, Iowa and seven cement distribution terminals from Lafarge North America, refinance an existing term loan B due 2019 and repay senior notes due 2020.

Summit, a Denver-based construction materials company, is buying the assets is $450 million, with $370 million due at closing and $80 million due no later than Dec. 31, 2015.

Closing is expected in July, subject to regulatory approval and the Lafarge-Holcim merger closing.

ION tops OID

ION Trading’s $250 million add-on first-lien term loan due 2021 broke too, with levels quoted at 99¼ bid, 99¾ offered, according to a market source.

The loan is priced at Libor plus 325 bps with a 1% Libor floor, and was sold at an original issue discount of 99. There is 101 soft call protection for six months.

The spread and the floor on the add-on term loan match the company’s existing $150 million first-lien term loan.

UBS AG is leading the deal that will be used to refinance second-lien term loan borrowings.

ION Trading is a software provider of trading, treasury and workflow solutions.

Emerging Markets reworked

Back in the primary, Emerging Markets Communications raised pricing on its $268 million first-lien term loan B (B1/B+) to Libor plus 575 bps from talk of Libor plus 425 bps to 450 bps, moved the original issue discount to 98.5 from 99 and shortened the maturity to six years from seven years, according to a market source.

As for the $92 million second-lien term loan (Caa1/CCC+), pricing was increased to Libor plus 962.5 bps from talk of Libor plus 800 bps to 825 bps, the discount was changed to 98 from 98.5, the hard call protection was adjusted to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, and the maturity was modified to seven years from eight years, the source said.

Both term loans still have a 1% Libor floor, and the first-lien term loan still has 101 soft call protection for six months.

Emerging Markets leads

Morgan Stanley Senior Funding Inc., Citizens Bank and Macquarie Capital (USA) Inc. are leading Emerging Markets Communications’ new bank debt.

Commitments are due at noon ET on Monday, the source added.

Proceeds will be used to fund the acquisition of MTN Communications and to refinance existing debt.

Closing is subject to regulatory review and other customary conditions.

Emerging Markets Communications is a Miami-based provider of hybrid global satellite and terrestrial communications. MTN is a Miramar, Fla.-based provider of communications and content for remote locations

Amneal firms spread

Amneal Pharmaceuticals set the repricing of its $735 million term loan B-1 at Libor plus 350 bps with a 1% Libor floor, the high end of the Libor plus 325 bps to 350 bps talk, and the debt will now be fungible with an existing $200 million term loan B-2 that is already priced at Libor plus 350 bps with a 1% Libor floor, creating a $935 million term loan B tranche, a market source said.

Also, amortization on the $735 million term loan B-1 was reduced to match the 1% amortization on the $200 million tranche, the source continued.

The repricing was offered at par and the 101 soft call protection on all of the term loan B debt is being refreshed for six months.

GE Capital Markets is leading the deal that is targeted to allocate on Friday.

The repricing will take the term loan B-1 down from Libor plus 400 bps with a 1% Libor floor.

Amneal Pharmaceuticals is a Bridgewater, N.J.-based manufacturer of generic pharmaceuticals.

Jeld-Wen updates deal

Jeld-Wen finalized pricing on its non-fungible $480 million incremental seven-year covenant-light term loan (B) at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk, and added a step-down to Libor plus 375 bps if total net leverage is 4 times, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Barclays and Bank of America Merrill Lynch are leading the deal that will be used to fund a distribution to the company’s shareholders and pre-fund certain near-term bolt-on acquisitions.

Recommitments are due by 10 a.m. ET on Friday with allocations expected shortly thereafter.

With the incremental loan, the company is seeking certain amendments to its existing credit facility to effect the transaction, and lenders are offered a 12.5 bps amendment fee.

Total leverage is 4.5 times.

Jeld-Wen is a Klamath Falls, Ore.-based door and window manufacturer.

Constantia shelves repricing

Constantia Flexibles pulled its amendment and repricing proposal due to market conditions, a company spokesperson told Prospect News.

The company had been talking the repricing of its U.S. dollar and euro term loan B debt at Libor/Euribor plus 300 bps to 325 bps with a 0.75% floor and a par issue price, compared to current pricing of Libor/Euribor plus 375 bps with a 1% floor.

J.P. Morgan Securities LLC and UniCredit were the leads on the deal.

Constantia Flexibles is a Vienna-based manufacturer of flexible packaging products and labels.

Nord Anglia closes

In other news, Nord Anglia Education Inc. completed its $240 million add-on term loan that is priced at Libor plus 400 basis points with a step-down to Libor plus 375 bps if total net leverage is less than 4.5 times, and a 1% Libor floor, a news release said. The debt was sold at an original issue discount of 99.5.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. led the loan, which was upsized from $200 million during syndication.

With the add-on, pricing on the Hong Kong-based schools operator’s existing term loan was lifted from Libor plus 350 bps with a 1% Libor floor to match the add-on pricing, and lenders were offered a 25 bps amendment fee.

All of the term loan debt has 101 soft call protection for six months.

Proceeds were used to help fund the acquisition of six schools from Meritas LLC for $534 million in cash, subject to certain adjustments.

Other funds for the acquisition came from CHF200 million in senior secured notes, reduced from CHF 235 million.

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