Endemol, Lonestar Generation, Cision, Multi Packaging break; Mueller accelerates deadline

By Sara Rosenberg

New York, Nov. 14 – Endemol increased the total size of its add-on term loan debt, finalized the breakdown of the U.S. and euro pieces, updated original issue discounts and then freed up for trading on Friday, and deals from Lonestar Generation LLC, Cision Inc. and Multi Packaging Solutions Inc./Chesapeake MPS Merger Ltd. emerged in the secondary as well.

In more happenings, Mueller Water Products Inc. moved up the commitment deadline on its term loan, Global Cash Access Inc. released guidance with launch, Novolex, formerly Hilex Poly, disclosed price talk on its in market deal, and Dealogic and Westmoreland Coal Co. joined the near-term calendar.

Endemol finalized, trades

Endemol increased on Friday its add-on term loan due Aug. 13, 2021 to the equivalent of about $330 million from $300 million, set the U.S. tranche size at $265 million and the euro tranche size at €50 million, firmed the original issue discount on the U.S. piece at 97, the low end of the 96 to 97 talk, and finalized the discount on the euro piece at 97, compared to initial talk in the 97 area, according to a market source.

Pricing on the U.S. portion is Libor plus 575 basis points with a 1% Libor floor, and pricing on the euro tranche is Euribor plus 600 bps with a 1% Euribor floor. Both tranches have 101 hard call protection expiring August 2015, like the company’s existing term loans.

With final terms in place, the debt hit the secondary market, with levels seen at 97½ bid, 98½ offered on the U.S. tranche, the source said.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Nomura are leading the deal.

Endemol combining

Proceeds from Endemol’s add-on term loan will help fund the 50/50 joint venture between 21st Century Fox and Apollo Global Management LLC to combine Endemol, Shine Group and CORE Media, although CORE is maintaining an independent capital structure.

Fox and Apollo will share 50%/50% of the additional proceeds from the term loan upsizing, the source added.

The combination will create a multi-platform content provider and is expected to close by year end.

Endemol is an Amsterdam-based creator, producer and distributor of multiplatform entertainment.

Lonestar frees up

Lonestar Generation’s fungible $160 million add-on senior secured covenant-light term loan B due Feb. 20, 2021 began trading too, with levels quoted at 99 1/8 bid, 99 5/8 offered, a trader remarked.

Pricing on the add-on is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

Recently, the discount on the loan firmed at the low end of the 98 to 99 talk and the MFN sunset provision was removed.

With the add-on, the company is repricing its existing $512 million senior secured covenant-light term loan B due Feb. 20, 2021 to Libor plus 425 bps with a 1% Libor floor from Libor plus 375 bps with a 1% Libor floor, and existing term loan B lenders were offered a 12.5 bps consent fee for the repricing amendment as well as 101 soft call protection for six months.

Lonestar funding acquisition

Proceeds from Lonestar Generation’s add-on loan will be used with an additional equity contribution to acquire Twin Oaks and Walnut Creek and combine them into the Lonestar portfolio.

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal.

Closing is expected this month.

Lonestar is an owner of Texas gas-fired power stations.

Cision tops OID

Cision’s fungible $170 million seven-year first-lien tack-on term loan also broke, with levels seen at 98¼ bid, 99 offered, according to a trader.

Pricing on the tack-on loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 98. The tack-on term loan, as well as the existing $325 million first-lien term loan, have 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the recently completed acquisition of Gorkana Group Ltd., a U.K.-based media intelligence and data insights service provider.

Cision is a Chicago-based provider of cloud-based PR software.

Multi Packaging breaks

Another deal to emerge in the secondary was Multi Packaging’s $135 million non-fungible incremental covenant-light term loan C due Sept. 30, 2020, with levels quoted at 98¼ bid, 99¼ offered, a trader said.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor and it was sold at an original issue discount of 98. The new loan has 101 soft call protection for six months, and the call protection will also apply to the company’s existing $330 million term loan and $122 million term loan.

Barclays is leading the deal that will be used to fund the acquisition of the North American and Asian print businesses from ASG Group.

Senior secured leverage is 4.1 times, total leverage is 4.9 times and net total leverage is 4.8 times.

Multi Packaging/Chesapeake is a New York-based provider of value-added packaging services.

Mueller revises deadline

Back in the primary, Mueller Water Products accelerated the commitment deadline on its $500 million seven-year covenant-light term loan B (B2/BB) to noon ET on Tuesday from Thursday, a source remarked.

The loan is talked at Libor plus 375 bps with a 0.75% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and MCS Capital are leading the deal that will be used to refinance existing debt.

Mueller Water is an Atlanta-based manufacturer and marketer of drinking water transmission, distribution and treatment facilities.

Global Cash guidance

Global Cash Access held its bank meeting on Friday, launching its $800 million seven-year covenant-light term loan B with price talk of Libor plus 475 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

By comparison, the commitment letter filed with the Securities and Exchange Commission has pricing on the term loan expected at Libor plus 400 bps with a 1% Libor floor.

The company’s $850 million senior secured credit facility (B1/B+) also includes a $50 million five-year revolver.

Commitments are due at noon ET on Nov. 24, the source said.

Global Cash lead banks

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading Global Cash’s credit facility that will be used with $400 million of senior unsecured notes to fund the acquisition of Multimedia Games Holding Co. Inc. for $36.50 per share, for an aggregate purchase price of about $1.2 billion in cash.

Total leverage will be around 5.5 times.

Closing is expected in early 2015, subject to customary conditions, including receipt of Multimedia Games shareholder approval and antitrust and gaming regulatory approvals

Global Cash is a Las Vegas-based provider of fully integrated cash access and related services to the gaming industry. Multimedia Games is an Austin, Texas-based developer and distributor of gaming technology.

Novolex talk emerges

Novolex revealed talk on its $840 million seven-year first-lien term loan (B1) at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and on its $275 million 7½-year second-lien term loan (Caa1) at Libor plus 825 bps to 850 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, a market source said.

The company’s $1.24 billion credit facility, which also includes a $125 million revolver (B1), launched with a bank meeting on Thursday, however, the price talk was not announced until Friday morning.

Commitments are due on Nov. 25.

GE Capital Markets, Deutsche Bank Securities Inc., BMO Capital Markets Corp. and Macquarie Capital (USA) Inc. are leading, with GE left on the first-lien debt and Deutsche left on the second-lien loan.

Proceeds will be used to help fund the acquisition of Packaging Dynamics.

First-lien leverage is 3.96 times and second-lien leverage is 5.24 times.

Novolex is a Hartsville, S.C.-based manufacturer of plastic bags and film products.

Dealogic coming soon

Dealogic set a bank meeting for Tuesday to launch a $335 million term loan that is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

J.P. Morgan Securities LLC, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by The Carlyle Group for around $700 million from company management and founders, who will re-invest equity into the transaction.

Closing is expected by year-end, subject to customary regulatory approvals.

Dealogic is a New York and London-based provider of data and analytics, market intelligence and capital markets software for financial institutions.

Westmoreland on deck

Westmoreland Coal scheduled a bank meeting for 10 a.m. ET on Wednesday to launch a new credit facility, according to a market source.

BMO Capital Markets is leading the deal that will be used to refinance existing notes.

The refinancing is being done in connection with the company’s combination with Oxford Resource Partners LP, through which Oxford’s name will be changed to Westmoreland Resource Partners LP.

Under the agreement, Westmoreland is buying Oxford for $30 million plus an additional $3.5 million if a specified coal acquisition is completed within one year of the purchase agreement.

Closing is expected in the fourth quarter.

Englewood, Colo.-based Westmoreland and Columbus, Ohio-based Oxford are coal companies.

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