Templar details structure; Capital Automotive sets lender call; trader sees price improvement

By Paul A. Harris

Portland, Ore., Sept. 3 – The leveraged loan market was flat to up 1/8 of a point on Wednesday, a trader said.

Prices are a little stronger over the past week and have certainly improved from the weakness seen in mid-August, the trader said.

The H.J. Heinz Co. term loan B1 was heading out par 1/8 bid on Wednesday, the trader said. That's up from 99¾ bid on Aug. 20 and 99½ bid on Aug. 15.

Meanwhile, the calendar has yet to show a lot of post-Labor Day momentum, the trader said, adding that August was massive in the new issue market.

In the primary market, Templar Energy LLC detailed the structure of its $550 million second-lien term loan.

And Capital Automotive LP set a Thursday lender call for its $100 million incremental second-lien term loan.

Templar Energy structure

Templar Energy’s $550 million seven-year senior secured second-lien term loan (B3/B-) was talked at a Wednesday bank meeting with a Libor plus 750 to 775 basis points spread with a 1% Libor floor at 98, according to a market source.

The loan features hard calls at 102 and 101 in years one and two, respectively.

There is an accordion feature of $100 million, plus the amount of any voluntary prepayments of the term loans plus additional amounts up to 3.75-times secured net leverage, subject to a 50 basis points most favored nation provision with an 18-month sunset.

Commitments are due at 2 p.m. ET on Sept. 12, and the deal is expected to close on Sept. 19.

Administrative agent Citigroup Global Markets is the left lead arranger. Barclays, Goldman Sachs & Co., Morgan Stanley & Co. and Natixis are joint lead arrangers.

The Oklahoma City-based exploration and production company plans to use the proceeds to fund a portion of the company's acquisition of Newfield's Anadarko Basin Granite Wash assets.

ABRA sets pricing

ABRA Auto Body & Glass set pricing for $405 million of term loans on Wednesday, according to a market source.

A $275 million seven-year first-lien covenant-light term loan is talked with a 400 to 425 basis points spread to Libor and a 1% Libor floor to priced at 99 to 99.5.

A $130 million eight-year second-lien covenant-light term loan is talk with a Libor spread of 750 bps and a 1% Libor floor at 99.

Bank of America Merrill Lynch, GE Capital Markets, Deutsche Bank Securities Inc. and Nomura are the leads on the deal.

The facility $475 million credit facility also has a $70 million revolver.

Proceeds will be used to help fund the company’s recent buyout by Hellman & Friedman LLC and senior management from Palladium Equity Partners LLC.

ABRA is a Brooklyn Park, Minn.-based provider of vehicle damage repair services.

Capital Automotive lender call

Capital Automotive set a lender call at 11 a.m. ET on Thursday for a $100 million incremental second-lien term loan (B1/B-), according to a market source.

Barclays is the joint lead arranger and joint bookrunner.

Proceeds will be used to help fund the acquisition of the company by Brookfield Property Partners from DRA Advisors LLC.

Other funds for the acquisition will come from $300 million of ABS debt, the source said.

In connection with the transaction, Capital Automotive will seek an amendment to its existing Barclays-led credit facility to allow for the change-of-control, the source added.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

Hardware Holdings price talk

Hardware Holdings LLC talked a $155 million seven-year term loan B (expected ratings Caa2/B-) at a 575 to 600 basis points spread to Libor with a 1% Libor floor at 99 on Wednesday, according to a market source.

Commitments are due on Sept. 17.

Barclays and MCS Capital are the joint bookrunners.

Proceeds will be used to fund the acquisition of Jones Stephens and to refinance existing debt.

Senior secured and total leverage is 5.7 times, the source added.

The borrowers on the loan are HBC Holding LLC, Handy Holdings LLC and Plumbing Holdings Corp.

Littlejohn & Co. is the sponsor.

Hardware Holdings is a Cranbury, N.J.-based distributor of hardware, plumbing and houseware products.

Club Corp lender call

An investor call is set to take place at 11 a.m. ET on Thursday on behalf of ClubCorp, according to a market source.

Citigroup is the arranger.

As reported, ClubCorp plans on getting up to $250 million of additional senior secured term loan borrowings to help fund its acquisition of Sequoia Golf.

Other funds for the $265 million acquisition will come from existing liquidity.

Closing is expected by Oct. 17, subject to the amendment of the company’s credit facility to provide the new term loan debt and customary conditions.

With this transaction, leverage is expected to be around 4.5 times, versus 3.7 times currently, company officials remarked in a conference call.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs, business, sports and alumni clubs. Sequoia is an Atlanta-based golf course ownership and management company.

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