EP Minerals first- and second-lien free to trade atop OIDs; MSX International holds firm

By Sara Rosenberg

New York, Aug. 19 – EP Minerals LLC’s credit facility emerged in the secondary market on Tuesday with both the first- and second-lien term loans quoted above their original issue discounts, and MSX International’s term loan was steady from its recent break levels.

EP Minerals starts trading

EP Minerals’ credit facility freed up for trading during the session with the $180 million six-year first-lien term loan (B2/B+) seen at par bid, 101 offered on the break and then it moved up to par ¼ bid, 101¼ offered, and the $70 million seven-year second-lien term loan (Caa2/CCC+) seen at 101¼ bid, 102¼ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 basis points with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and was issued at a discount of 98½. This debt has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $175 million, the spread firmed at the tight end of revised talk of Libor plus 450 bps to 475 bps but up from initial talk of from Libor plus 425 bps, and the call protection was extended from six months, and the second-lien term loan was downsized from $75 million, pricing firmed at the wide end of the Libor plus 725 bps to 750 bps talk and the discount was revised from 99.

EP Minerals getting revolver

In addition to the first- and second-lien term loans, EP Minerals’ $275 million senior secured credit facility includes a $25 million revolver (B2/B+).

BMO Capital Markets and BNP Paribas Securities Corp. are leading the deal that will be used to refinance existing debt and fund a dividend.

EP Minerals is a Reno, Nev.-based provider of diatomaceous earth and perlite filter aids, functional additives and absorbents.

MSX steady

MSX International’s $220 million term loan B was quoted at 99¼ bid, par ¼ offered, in line with where the debt was seen upon freeing up for trading on Monday, a trader remarked.

Pricing on the term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was lifted from talk of Libor plus 425 bps to 450 bps and the call protection was extended from six months.

The company’s $255 million credit facility also includes a $35 million revolver.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

MSX International is a service and technology solutions provider helping automotive and other organizations improve retail network performance, talent acquisition and management strategies.

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