Mannington talk emerges; Gray Television reveals OID; more deals pile onto primary calendar

By Sara Rosenberg

New York, Sept. 8 – In the primary market on Monday, Mannington Mills released price talk on its term loan B with its launch, and Gray Television Inc. disclosed original issue discount guidance on its add-on term loan B.

Also, Ranpak Holdings Inc., Skillsoft Ltd., ProQuest LLC, Progrexion, FHC Health Systems Inc., Delachaux and Mister Car Wash joined this week’s calendar.

Mannington sets guidance

Mannington Mills held its bank meeting on Monday, launching its $275 million seven-year covenant-light term loan B with talk of Libor plus 350 basis points with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Sept. 19, the source said.

RBC Capital Markets and Societe Generale are leading the deal that will be used to refinance existing debt.

Net leverage is 2.9 times.

Mannington Mills is a Salem, N.J.-based manufacturer of residential and commercial sheet vinyl, luxury vinyl, laminate, hardwood and porcelain tile floors, as well as commercial carpet and rubber.

Gray releases offer price

Gray Television came out with original issue discount talk of 99 on its fungible $75 million add-on term loan B with original issue discount talk of 99 that launched with a call in the afternoon, a market source remarked.

As previously reported, pricing on the add-on term loan B is Libor plus 300 bps with a 0.75% Libor floor, in line with existing term loan B pricing.

Commitments are due on Thursday, the source added.

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

Pro forma for the acquisition, secured leverage will be 2.9 times and total leverage will be 6.1 times.

Gray Television, an Atlanta-based television broadcast company, expects to close on the acquisition in the third or fourth quarter, subject to receipt of regulatory and other approvals.

Ranpak on deck

In more new deal happenings, Ranpak set a bank meeting for 3 p.m. ET in New York on Tuesday to launch a $600 million-equivalent credit facility, according to a market source.

The facility consists of a $30 million five-year revolver, a $231 million seven-year first-lien covenant-light term loan with 101 soft call protection for six months, a roughly €130 million seven-year first-lien covenant-light term loan with 101 soft call protection for six months, and a $170 million eight-year second-lien covenant-light term loan with 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 and Macquarie Capital are leading the deal, which ill be used to help fund the buyout of the company by Rhone Capital LLC from Odyssey Investment Partners LLC.

Closing is expected in the third quarter, subject to customary conditions, including regulatory approvals.

Ranpak is a Concord Township, Ohio-based manufacturer of paper-based systems for protective packaging needs.

Skillsoft timing, structure

Skillsoft scheduled a bank meeting for Wednesday to launch the debt financing for its acquisition of SumTotal Systems LLC from Vista Equity Partners, which is now known to be made up of a $515 million incremental first-lien term loan and a $185 million incremental second-lien term loan, a source said.

Barclays, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the $700 million in incremental term loans, with Barclays the left lead on the first-lien loan and Morgan Stanley the left lead on the second-lien loan.

Closing is subject to various conditions, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Act.

Skillsoft is a Dublin, Ireland-based provider of cloud-based learning services. SumTotal is a Gainesville, Fla.-based provider of integrated HR services.

ProQuest deal surfaces

ProQuest will hold a bank meeting at 10:30 a.m. ET on Wednesday to launch a $435 million seven-year term loan B, according to a market source.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the loan that will be used to refinance existing debt.

ProQuest is an Ann Arbor, Mich.-based electronic publisher and microfilm publisher.

Progrexion readies loans

Progrexion emerged with plans to hold a bank meeting at 10:30 a.m. ET on Wednesday to launch $440 million in loans, divided between a $280 million six-year first-lien term loan and a $160 million seven-year second-lien term loan, a market source said.

The first-lien term loan has 101 soft call protection for one year.

Jefferies Finance LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance the company’s $430 unitranche financing provided by Prospect Capital earlier in the year.

Leverage will be 3.2 times through the first-lien and 5 times through the second-lien, the source added.

Progrexion is a provider of credit repair services.

FHC joins calendar

FHC Health Systems set a bank meeting for 2:30 p.m. ET in New York on Thursday to launch a $415 million credit facility, according to a market source.

The facility consists of a $65 million five-year revolver and a $350 million seven-year first-lien term loan talked with a 1% Libor floor and 101 soft call protection for six months, the source remarked.

UBS AG, Goldman Sachs Bank USA, GE Capital Markets and Nomura are leading the deal that will be used to help fund Beacon Health Strategies’ merger with ValueOptions Inc. to create FHC Health.

Closing is expected this fall, subject to regulatory review.

FHC Health is a Boston-based managed behavioral health care company.

Delachaux coming soon

Delachaux scheduled a bank meeting in London on Wednesday to launch a €765 million-equivalent credit facility, according to a market source.

The facility consists of a €75 million 6˝-year revolver priced at Euribor plus 375 bps with a commitment fee that is 35% of the margin, and a €690 million-equivalent seven-year covenant-light term loan B split between euro, U.S. dollar, GBP and Australian dollar tranches, the source said.

Commitments are due on Sept. 22.

Deutsche Bank Securities Inc. is the global coordinator on the deal and a bookrunner with Credit Agricole, HSBC and Natixis.

Delachaux, a French industrial company, will use the new credit facility to refinance existing debt, fund a distribution to shareholders and for general corporate purposes.

Mister Car Wash plans deal

Mister Car Wash set a bank meeting for 11 a.m. ET on Thursday to launch a $210 million credit facility that consists of a $30 million revolver and a $180 million term loan B, a source said.

Jefferies Finance LLC, Nomura and BMO Capital Markets are leading the deal.

Proceeds will be used to back the recently completed buyout of the Tucson, Ariz.-based car wash company by Leonard Green & Partners LP from Oncap.

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