U.S. Renal first-lien term loan weakens with incremental debt launch; DPx sets price talk

By Sara Rosenberg

New York, Sept. 5 – U.S. Renal Care Inc.’s first-lien term loan was a bit softer in the secondary market on Friday as the company launched and released original issue discount talk on its incremental first-lien term loan.

In more happenings, DPx Holdings BV disclosed pricing guidance on its term loan, and TriMark USA Corp. (TMK Hawk Parent Corp.), Crowne Group LLC and Gray Television Inc. joined the near-term calendar.

U.S. Renal dips

U.S. Renal’s existing first-lien term loan was seen at 99¾ bid, par ¼ offered in trading on Friday, down from 99 7/8 bid, par 3/8 offered, according to a trader.

In the morning, the company held the call to launch its fungible $75 million incremental covenant-light first-lien term loan (Ba3), and in connection with the call, original issue discount guidance on the new debt came out at 99 to 99½, a source remarked.

As previously reported, pricing on the incremental term loan matches the existing first-lien term loan at Libor plus 325 basis points with a 1% Libor floor.

Commitments are due on Sept. 12, the source added.

Barclays, Goldman Sachs Bank USA, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with balance sheet cash to fund two acquisitions for about $98.3 million.

U.S. Renal is a Plano, Texas-based provider of dialysis services.

BWIC surfaces

Also in trading, a $276 million Bid Wanted In Competition was announced with market players being asked to get their bids in by noon ET on Monday, a trader remarked.

Some of the larger pieces of debt in the portfolio include Acosta’s term loan, Party City’s term loan, Caelus Energy Alaska 03’s second-lien term loan, Hub International Ltd.’s term loan B, MD America Energy LLC’s second-lien term loan, Multiplan’s term loan B, Quintiles Transnational’s term loan B-3, Univar’s incremental term loan B, Wall Street Systems Inc.’s term loan, Axalta’s term loan and National Financial Partners Corp.’s incremental term loan B.

There are about 82 issuers in the portfolio, the trader added.

OWIC announced

An Offer Wanted In Competition emerged in the morning, and the deadline for offers is 11:30 a.m. ET on Tuesday, according to a trader.

Some of the debt in the portfolio includes 24 Hour Fitness Worldwide Inc.’s term loan, Douglas Dynamics LLC’s term loan, Hologic Inc.’s term loan B, and Windstream Corp.’s term loan B-4 and term loan B-5.

There are 19 issuers in the portfolio, the trader said.

DPx sets talk

Over in the primary, DPx Holdings held its bank meeting on Friday afternoon, launching its $250 million seven-year first-lien term loan with talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 98 to 98¼ and 101 soft call protection for six months, according to a market source.

Commitments are due on Sept. 12, the source said.

UBS Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and KeyBank are leading the deal that will be used to fund the acquisition of Gallus BioPharmaceuticals LLC from Ridgemont Equity Partners.

Closing is expected in the fourth quarter, subject to receipt of regulatory approvals.

DPx, owned by JLL Partners and Royal DSM, is a Durham, N.C.-based provider of CDMO services, pharmaceutical products and products for other industries. Gallus is a St. Louis-based contract manufacturing company specializing in biologics.

TriMark on deck

TriMark set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $455 million credit facility, according to a market source.

The facility consists of a $100 million ABL revolver, a $250 million seven-year first-lien covenant-light term loan that has 101 soft call protection for six months, and a $105 million eight-year second-lien covenant-light term loan that has call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Sept. 23.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, RBS Citizens, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal, which will be used to back the recently completed buyout of the company by Warburg Pincus from Audax Group.

TriMark is a South Attleboro, Mass.-based provider of equipment, supplies and design services to the foodservice industry.

Crowne readies deal

Crowne Group scheduled a bank meeting for 2 p.m. ET on Tuesday to launch a $455 million credit facility that is being led by Jefferies Finance LLC, a market source said.

The facility consists of a $75 million asset-based revolver, a $290 million six-year first-lien covenant-light term loan that has 101 soft call protection for six months, and a $90 million seven-year second-lien covenant-light term loan that has call protection of 102 in year one and 101 in year two, the source continued.

Proceeds will be used to fund the acquisition of Trico Products Corp., a Rochester Hills, Mich.-based manufacturer, marketer and distributor of windshield wiper blades, systems and components, from Kohlberg & Co. LLC and to refinance existing debt.

Closing is subject to customary regulatory approvals.

Leverage is about 2.6 times through the first-lien and 3.4 times total, based on pro forma combined annual EBITDA of $113 million, the source added.

Crowne is a Cleveland-based manufacturer and distributor of aftermarket and OEM component parts for the automotive and other industrial equipment markets.

Gray Television coming soon

Gray Television surfaced with plans to hold a call at 1 p.m. ET on Monday to launch a fungible $75 million add-on term loan B, according to a market source.

The add-on term loan B is talked at Libor plus 300 bps with a 0.75% Libor floor and an original issue discount that is still to be determined, the source said.

The spread and floor on the add-on match the existing term loan B.

Wells Fargo Securities LLC is leading the deal that will be used to help fund the roughly $128 million acquisition of WJRT-TV and WTVG-TV from SJL Holdings LLC.

Closing is expected in the third or fourth quarter, subject to receipt of regulatory and other approvals.

Gray Television is an Atlanta-based television broadcast company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.