Flint sets structure for €1.7 billion dual-currency facilities; Technicolor details repricing

By Paul A. Harris

Portland, Ore., April 15 - Cash loans were basically unchanged on the Tuesday session, according to a trader, who added that a lot of market participants were away from their desks in order to observe Passover.

The LCDX20 index of bank loan credit default swaps was unchanged at 103 7/8 bid, 104 3/8 offered, according to a hedge fund manager.

Among recently priced cash loans, the Twin River Management Group Inc. Libor plus 425 bps covenant-light term loan B, which priced at 99, was 99¼ bid, 99¾ offered on Tuesday. The deal eased from 99½ bid, par offered on Friday.

The loan priced at 99 on Friday, sized at $480 million.

Return is trumping credit ratings, the trader remarked, noting that higher beta credits are currently attracting the firmer bids in the bank loan market.

In primary market news, Flint Group revealed tranche sizes and structure for its €1.7 billion of dual-currency credit facilities.

And Technicolor (Tech Finance & Co. SCA) released pricing details on the roughly $1.26 billion-equivalent repricing of its term loan

Flint tranches, structure

Flint's seven-year first-lien term loan (expected ratings B1/B+) is expected to come in tranches sized at €625 million and $860 million. The first-lien tranches feature a 1% Libor floor and a 101 soft call for six months.

An eight-year second-lien term loan (expected ratings Caa1/B-) is expected to come in tranches sized at €150 million and $205 million. The second-lien tranches feature a 1% Libor floor and hard calls at 102 and 101.

The deal kicks off at lender meetings set for April 21 in London and April 22 in New York.

Administrative agent and joint bookrunner Deutsche Bank is the left lead on the first-lien tranche.

Joint bookrunner Morgan Stanley & Co. is the left lead on the second-lien tranche.

Barclays and Goldman Sachs are also joint bookrunners joint bookrunners.

Proceeds will be used to help fund the acquisition of Flint Group by Goldman Sachs Merchant Banking Division and Koch Equity Development LLC from CVC Capital Partners.

The facilities also include a €150 million revolver, proceeds of which will be used for general corporate purposes.

Flint is a Luxembourg-based supplier of inks and other print consumables.

Technicolor pricing details

Technicolor's repricing of its term loan due July 10, 2020 (B2/B+) came with tranches sized at $844 million and €321 million talked at 400 basis points to 425 bps spreads to Libor with 1% Libor floors at par, according to a market source.

The existing dollar-denominated loan was priced with a 600 bps spread and a 1.25% Libor floor.

New money accounts are being offered a 50-cent discount.

A trader calculated that factoring in the call premium for the existing loan, the spreads, Libor floors and reoffer prices, all lenders - new and existing - would be getting into the repricing deal at approximately equal prices.

Both tranches have 101 soft call protection for six months.

Commitments are due on April 23. The deal is expected to close on April 30.

Morgan Stanley Senior Funding Inc. is the sole bookrunner.

Technicolor is a technology company focused on the media and entertainment sector.

Bennu Oil upsizes

Bennu Oil & Gas LLC upsized the repricing of its second-lien term loan due November 2018 to $487 million from $392 million with the addition of a $95 million tack-on tranche, a market source said on Tuesday.

Meanwhile, revised price talk hikes the proposed original issue discount by 25 cents, taking it to 99.5 from 99.75 for new money accounts.

Existing lenders were already at 99.5 with the blend of the 99.75 OID and the 25 bps amendment fee, according to a market source.

Commitments are due on April 22.

Other terms remained unchanged. Price talk is Libor plus 750 basis points with a 1.25% Libor floor.

The loan is non-callable for 1½ years, then at 102 for a year and 101 for a year.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Covenants include maximum leverage and minimum PV-10 requirements.

Proceeds will be used to refinance an existing term loan priced at Libor plus 900 bps with a 1.25% Libor floor.

Existing lenders will be repaid at par and are being offered a 25 bps amendment fee, the source added.

Bennu is an oil and gas exploration and production company in the Gulf of Mexico.

Totes price talk

Totes Isotoner talked its $245 million seven-year first-lien covenant-light term loan (B2/B) with a Libor spread of 425 to 450 basis points at 99, a market source said on Tuesday.

The loan features a 1% Libor floor and a 101 soft call for six months.

Commitments are due on April 28.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Golub Capital are the leads on the deal.

The company is also getting a $100 million ABL revolver led by Wells Fargo Securities LLC and an $80 million second-lien term loan that has already been placed, the source added.

Proceeds will be used to help fund the buyout of the company by Freeman Spogli & Co. and Investcorp from MidOcean Partners.

Totes is a designer, distributor and retailer of branded accessories.

Zebra debt financing

Zebra Technologies Corp. plans to issue bonds and syndicate bank debt in its effort to raise $3.25 billion of financing backing its $3.45 billion acquisition of Motorola Solutions, Inc.'s Enterprise business.

Morgan Stanley & Co. will be the left bookrunner, a market source said on Tuesday.

The companies announced a definitive agreement on Tuesday.

However details on the debt are not expected to surface before late April or early May, the source said.

Zebra expects to have a leverage ratio of about five times debt to adjusted EBITDA at closing, which is anticipated to occur by year-end.

Lincolnshire, Ill.-based Zebra provides marking and printing technologies. Motorola is a communications technology company based in Schaumburg, Ill.

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