Dynacast, Paris Presents free to trade; Charter NEX, Altice, Heartland Dental changes emerge

By Sara Rosenberg

New York, Jan. 29 – Dynacast International’s term loans made their way into the secondary market on Thursday with both the first- and second-lien debt quoted above their original issue discounts, and Paris Presents Inc. began trading as well.

Moving to the primary, Charter NEX US Holdings Inc. trimmed spreads on all tranches under its credit facility and extended the call protection on its first-lien term loan, and Altice International reverse flexed pricing on its term loan B debt and modified the call premium.

Furthermore, Heartland Dental Care LLC widened the original issue discount on its add-on term loan, and Targa Resources Corp. and AssuredPartners Capital Inc. released talk with launch.

Dynacast starts trading

Dynacast’s new term loans freed up for trading on Thursday with the $530 million seven-year first-lien tranche (Ba3/B) quoted at 99½ bid, par offered before it moved up to 99¾ bid, par ¼ offered, and the $170 million eight-year second-lien tranche (Caa1/B-) quoted at 99½ bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 425 basis points 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.

The second-lien term loan is priced at Libor plus 850 bps with a 1% Libor floor and was issued at a discount of 98. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the spread on the first-lien term loan was reduced from talk of Libor plus 450 bps to 475 bps and the call protection was extended from six months, and the discount on the second-lien loan firmed at the wide end of the 98 to 98½ talk.

J.P. Morgan Securities LLC, Barclays and Macquarie Capital are leading the debt.

Dynacast being acquired

Proceeds from Dynacast’s term loans will be used to help fund its buyout by Partners Group in a transaction with an overall enterprise value of $1.1 billion.

Partners Group is buying Dynacast from existing financial investors and is joined in the acquisition by Kenner & Co., an existing shareholder, and the company’s management team, which will both roll over significant equity stakes into the new transaction.

Closing is expected in February, subject to regulatory approvals and customary conditions.

Dynacast is a Charlotte, N.C.-based manufacturer of small, highly complex metal components.

Paris Presents tops OID

Paris Presents’ credit facility hit the secondary too, with the $92 million six-year first-lien term loan seen at par bid, a trader remarked.

The first-lien term loan is priced at Libor plus 450 bps with a 1% Libor floor and was issued at a discount of 99. The debt has 101 soft call protection for six months.

The company’s $137 million credit facility also includes a $15 million five-year revolver priced at Libor plus 450 bps with a 1% Libor floor, and a $30 million seven-year second-lien term loan priced at Libor plus 825 bps with a 1% Libor floor and issued at 98. The second-lien loan has call protection of 102 in year one and 101 in year two.

Recently, pricing on the revolver and first-lien term loan was reduced from Libor plus 500 bps, and pricing on the second-lien term loan was cut from Libor plus 850 bps.

Paris Presents funding buyout

Proceeds from Paris Presents’ credit facility are being used to finance its recently completed purchase by Wasserstein & Co. LP from Mason Wells. Ontario Pension Board and Northwestern Mutual co-invested in the transaction alongside Wasserstein.

BNP Paribas Securities Corp. is leading the credit facility.

Paris Presents is a Gurnee, Ill.-based provider of branded cosmetic and bath accessories to mass merchants, drug stores, specialty beauty stores and online retailers.

Charter NEX flexes

Switching to the primary, Charter NEX cut pricing on its $50 million five-year revolver (B1/B+) to Libor plus 425 bps from Libor plus 450 bps, according to a market source, who said the tranche still has no Libor floor and an original issue discount of 99.

As for the $270 million seven-year first-lien covenant-light term loan B (B1/B+), pricing was lowered to Libor plus 425 bps from Libor plus 475 bps and the 101 soft call protection was extended to one year from six months, the source remarked. This debt still has a 1% Libor floor and a discount of 99.

In addition, the spread on the company’s $110 million eight-year second-lien covenant-light term loan (Caa1/CCC+) was reduced to Libor plus 825 bps from Libor plus 875 bps, while the 1% Libor floor, discount of 98½ and hard call protection of 102 in year one and 101 in year two were unchanged.

There is no MFN sunset provision in the deal, the source continued.

Charter NEX allocations

Commitments from Charter NEX’s $430 million senior secured credit facility were due at 5 p.m. ET on Thursday and allocations are targeted for Friday, the source added.

Morgan Stanley Senior Funding Inc. and Guggenheim Corporate Funding LLC are leading the deal.

Proceeds will be used to help fund the buyout of the company by Pamplona Capital Management LLP, which is expected to close in early February.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

Altice reworks deal

Altice International cut price talk on its $500 million seven-year first-lien term loan B to Libor plus 425 bps to 450 bps from Libor plus 500 bps to 525 bps, according to a market source.

In addition, price talk on the €400 million seven-year first-lien term loan B was reduced to Euribor plus 425 bps to 450 bps from Euribor plus 475 bps to 500 bps, the source said.

And, the soft call protection on both term loans was revised to 101 for one year from 102 in year one and 101 in year two.

The U.S. term loan has a 1% Libor floor and an original issue discount of 99, and the euro term loan has a 1% floor and a discount of 99½.

Commitments for the U.S. loan were due at 1 p.m. ET on Thursday and commitments on the euro loan were due at 3:30 p.m. GMT on Thursday, the source added.

Altice buying Portugal Telecom

Proceeds from the total €825 million equivalent of the term loan debt, $2.06 billion and €500 million of senior secured notes at Altice Financing SA, and $385 million of senior notes at Altice Finco SA will be used to fund the acquisition of the Portuguese assets of Portugal Telecom from Grupo OI SA.

The transaction values Portugal Telecom at an enterprise value of €7.4 billion on a cash and debt-free free basis which includes a €500 million consideration related to the future revenue generation of Portugal Telecom.

Goldman Sachs, J.P. Morgan Securities LLC, Credit Suisse, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Credit Agricole, Banca IMI, Citigroup Global Markets Inc., HSBC Securities, Nomura Securities, RBC Capital Markets, Societe Generale and UniCredit Group are leading the loans.

Altice is a Luxembourg-based telecommunications and cable company.

Heartland tweaks OID

Heartland Dental Care changed the original issue discount on its fungible $75 million add-on term loan (B) to 98½ from 99¼, a market source said.

The add-on is still priced at Libor plus 450 bps with a 1% Libor floor, which matches existing term loan pricing.

With the revision to the offer price, the commitment deadline was pushed out to Wednesday from Jan. 29, the source added.

RBC Capital Markets is leading the deal that will be used to repay all of the company’s outstanding revolver borrowings.

Heartland Dental is an Effingham, Ill.-based provider of office support services to dental offices.

Targa reveals guidance

Also in the primary, Targa Resources held its bank meeting on Thursday, launching its $430 million seven-year senior secured term loan with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year, according to a market source.

The Houston-based midstream energy company’s $1.1 billion credit facility (B+) also includes a $670 million revolver.

Commitments are due on Feb. 10, the source said.

Bank of America Merrill Lynch, RBS Securities Inc., Wells Fargo Securities LLC, ING, MUFG and Union Bank are leading the deal that will be used to help fund the acquisition of Atlas Energy LP following the spinoff of its non-midstream assets, to pay related fees and expenses, and to refinance existing debt.

Atlas Energy is being bought for $1,869,000,000, including 10.35 million shares valued at $1,259,000,000 based on the closing price of the company’s common stock on Oct. 10, 2014, and $610 million in cash.

Closing is expected this quarter, subject to the spinoff of the non-midstream assets and other conditions.

AssuredPartners sets talk

AssuredPartners came out with talk of Libor plus 362.5 bps with a 1% Libor floor and an original issue discount of 97½ on its $125 million incremental first-lien covenant-light term loan (B) due April 1, 2021 that launched with an afternoon lender call, a source remarked.

The incremental loan is not expected to be fungible with the company’s existing first-lien term loan.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, BMO Capital Markets, RBC Capital Markets and Madison Capital are leading the deal that will be used to pay down revolver borrowings, to fund acquisitions and to add cash to the balance sheet.

AssuredPartners is a Lake Mary, Fla.-based investor in property and casualty and employee benefits brokerage firms.

© 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.