Filtration Group frees up; CGG revised; Alliant, AlixPartners, Quality Distribution set talk

By Sara Rosenberg

New York, July 15 – Filtration Group Corp.’s add-on first-lien term loan made its way into the secondary market on Wednesday, with levels quoted above its original issue discount.

Moving to the primary market, CGG Holding (U.S.) Inc. widened the spread and original issue discount on its term loan, while also adding a financial covenant and a springing maturity, and Alliant Insurance Services Inc. (Alliant Holdings I LP), AlixPartners LLP and Quality Distribution Inc. came out with price talk in connection with their bank meetings.

Also, Sitel Worldwide Corp., Invenergy Thermal Operating I LLC, Cast & Crew Entertainment Services, Prolamina Corp./Ampac Holdings LLC (Intermediate Holdco (US)) and V. Group joined the near-term new issue calendar.

Filtration Group breaks

Filtration Group’s fungible $93 million add-on first-lien term loan began trading on Wednesday, with levels seen at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the add-on term loan matches the existing term loan at Libor plus 325 basis points with a 1% Libor floor, and the debt was sold at an original issue discount of 99.75, after tightening during syndication from 99.5.

Goldman Sachs Bank USA is leading the deal that will be used to fund an acquisition.

Filtration Group is a Chicago-based manufacturer and distributor of filtration products to end markets.

CGG reworks loan

Switching to the primary market, CGG raised pricing on its $350 million six-year senior secured term loan (Ba1/B+) to Libor plus 750 bps from Libor plus 650 bps and moved the original issue discount to 95 from 98.5, according to a market source.

Furthermore, a 4.5 times total net leverage test was added to the previously covenant-light loan, and a springing maturity was added to three months inside any bond maturing after the company’s 2017 notes, the source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for one year.

Commitments for the revised deal are due at 10 a.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp. and RBC Capital Markets are leading the deal that will be used to repay revolving credit facility borrowings and for general corporate purposes.

CGG is a Paris-based manufacturer of seismic equipment and a provider of geoscience services.

Alliant reveals talk

Alliant Insurance Services held its bank meeting on Wednesday morning, and with the event, price talk on its $1.54 billion senior secured credit facility (B2/B) was announced, according to a market source.

The $200 million five-year revolver is talked at Libor plus 375 bps with leverage-based step-downs and no Libor floor, and the $1.34 billion seven-year covenant-light term loan B is talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call for six months, the source said.

Morgan Stanley Senior Funding Inc., UBS AG, Jefferies Finance LLC, KKR Capital Markets LLC, MCS Capital Markets LLC, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading the deal.

Commitments are due on July 29, the source added.

Alliant being acquired

Proceeds from Alliant Insurance’s credit facility and bonds backed by a $495 million opco bridge loan and a $175 million holdco bridge loan will be used to help fund the purchase of a significant equity interest in the company by Stone Point Capital LLC.

At closing, funds managed by Stone Point will be Alliant Insurance’s largest institutional shareholders, and the company’s existing shareholders, who include management and producers as well as funds affiliated with KKR, will remain significant shareholders in the business.

Closing is expected in early to mid August.

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

AlixPartners holds meeting

AlixPartners hosted its bank meeting during the session, launching its $1.1 billion seven-year covenant-light term loan B (B2/B+) with talk of Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99.5, a market source remarked.

The term loan has 101 soft call protection for six months.

Commitments are due on July 22, the source added.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC and UBS AG are leading the deal that will be used to refinance the company’s existing first- and second-lien term loans and fund a distribution to shareholders.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

Quality Distribution guidance

Quality Distribution disclosed price talk on its first- and second-lien term loans as the debt launched with a morning bank meeting, a source said.

The $400 million first-lien term loan (B1/B-) is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $135 million second-lien term loan (Caa1/CCC) is talked at Libor plus 825 bps to 850 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source continued.

The company’s $635 million senior secured credit facility also includes a $100 million asset-based revolver.

Commitments are due on July 28, the source added.

Quality Distribution lead banks

Deutsche Bank Securities, Bank of America Merrill Lynch, Jefferies Finance, Macquarie Capital, SunTrust Robinson Humphrey Inc. and Credit Suisse Securities are leading Quality Distribution’s credit facility, with Deutsche left on the first-lien and Bank of America left on the second-lien.

Proceeds will be used with up to $322 million in equity to fund the buyout of the company by Apax Partners for about $800 million, including the assumption of debt, or $16.00 per share in cash.

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

Quality Distribution is a Tampa, Fla.-based logistics and transportation provider.

Sitel coming soon

In more primary happenings, Sitel Worldwide set a bank meeting for July 29 to launch a $545 million credit facility, a market source said.

The facility consists of a $60 million revolver, a $365 million first-lien term loan and a $120 million second-lien term loan, the source continued.

Societe Generale and BNP Paribas Securities are leading the deal, with Societe Generale left on the first-lien and BNP left on the second-lien.

Proceeds will be used to help fund the buyout of the company by Groupe Acticall from Onex Corp. Acticall’s primary partner shareholder is Creadev.

Sitel is a Nashville-based provider of customer care outsourcing services.

Invenergy joins calendar

Invenergy Thermal Operating will hold a bank meeting at 10:30 a.m. ET in New York on Friday to launch a $607 million senior secured credit facility, according to a market source.

The facility consists of a $70 million revolver and a $537 million term loan B, the source remarked.

Morgan Stanley Senior Funding is leading the deal that will be used to refinance existing debt.

Invenergy is a power producer consisting of six gas fired power plants.

Cast & Crew readies deal

Cast & Crew Entertainment Services scheduled a bank meeting for 10 a.m. ET on Tuesday to launch a $430 million credit facility, according to a market source.

The facility consists of a $65 million five-year revolver, a $270 million seven-year first-lien term loan and a $95 million eight-year second-lien term loan, the source said.

RBC Capital Markets, Credit Suisse Securities, Deutsche Bank Securities and Societe Generale are leading the deal that will be used to help fund the buyout of the company by Silver Lake from ZM Capital.

First-lien leverage is 4.4 times, and total leverage is around 6 times, the source added.

Closing on the buyout is subject to customary conditions.

Cast & Crew is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry.

Prolamina/Ampac on deck

Prolamina/Ampac emerged with plans to hold a bank meeting at 10 a.m. ET in New York on July 23 to launch a $560 million credit facility, a market source remarked.

The facility consists of a $50 million five-year revolver, a $400 million seven-year first-lien term loan with a 1% Libor floor and 101 soft call protection for six months, and a $110 million eight-year second-lien term loan with a 1% Libor floor and call protection of 102 in year one and 101 in year two, the source said.

RBC Capital Markets is leading the deal that will be used to fund the acquisition of Ampac by Wellspring Capital Management LLC and combination with Wellspring’s portfolio company Prolamina.

The combination will create a new flexible packaging company.

V. Group plans loan

V. Group scheduled a call for Thursday to launch a fungible $90 million add-on first-lien term loan, according to a market source.

Commitments are due on July 22, the source said.

Goldman Sachs Bank USA is leading the deal that will be used to help repay the company’s second-lien term loan.

The company’s existing first-lien term loan is priced at Libor plus 400 bps with a 1% Libor floor.

V. Group is a supplier of a broad range of specialist outsourcing services to asset owners and operators in the shipping, offshore, leisure and defense sectors.

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