IPC second-lien loan frees up; Energy Transfer reworks loan; Ineos, Headwaters float talk

By Sara Rosenberg

New York, March 3 – IPC Corp.’s second-lien term loan made its way into the secondary market on Tuesday with the debt quoted above its original issue discount, and its first-lien term loan was a little stronger in trading.

Over in the primary, Energy Transfer Equity LP upsized its term loan, reduced pricing and shortened the call protection, Ineos Finance plc and Headwaters Inc. released price talk with launch, Coinmach (CSC Serviceworks) came out with original issue discount guidance on its add-on term loan, and Wabash National Corp. and Freif NAP I Holdings III LLC joined this week’s calendar.

IPC second-lien breaks

IPC’s $305 million seven-year second-lien covenant-light term loan (B-) freed up for trading on Tuesday with levels seen at 92½ bid, 93½ offered, according to a trader.

Pricing on the second-lien loan is Libor plus 950 basis points with a 1% Libor floor, and it was sold at an original issue discount of 92. The debt is non-callable for one year, then at 103 in year two and 101 in year three.

During syndication, the second-lien term loan was downsized from $345 million, pricing was raised from Libor plus 850 bps, the discount widened from revised talk of 95½ and initial talk of 98½, the call protection was modified from 102 in year one and 101 in year two, and the maturity was shortened from eight years.

Barclays and Credit Suisse Securities (USA) LLC led the deal for the Jersey City, N.J.-based provider of mission-critical network services and trading communication technology to the financial markets community.

IPC first-lien higher

IPC’s $595 million 6½-year first-lien term loan (B) was quoted at par ¼ bid, 101 offered in the secondary market on Tuesday, up from par 1/8 bid, par 5/8 offered on Monday, the trader said. This tranche broke for trading in early February.

The first-lien term loan is priced at Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

During syndication, the first-lien loan was upsized from $555 million, pricing was flexed from Libor plus 475 bps, the discount widened from 99, the call protection was extended from six months, the maturity was cut from seven years and a net first-lien maintenance covenant was added to the originally covenant-light tranche.

The company’s $925 million credit facility also includes a $25 million five-year revolver (B1/B).

Proceeds were used to help fund the roughly $1.2 billion buyout of the company by Centerbridge Partners LP from Silver Lake Partners, which was completed last month.

Energy Transfer tweaks deal

Energy Transfer Equity increased its first-lien term loan (Ba2/BB/BB+) due Dec. 2, 2019 to $850 million from $500 million, cut the spread to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps, and trimmed the 101 soft call protection to six months from one year, according to a market source.

As before, the term loan has a 0.75% Libor floor and an original issue discount of 99.

Recommitments were due at noon ET on Tuesday, the source said.

Due to the upsizing, the Dallas-based midstream oil and gas company will use a portion of the proceeds from the new term loan to pay down revolver borrowings, the source added.

Energy Transfer leads

Credit Suisse Securities (USA) LLC, Bank of Tokyo-Mitsubishi, BBVA Compass, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., DNB Bank, Mizuho Securities USA Inc., Sumitomo Mitsui Banking Corp., Intesa Sanpaolo, Natixis Securities North America Inc., ING Capital LLC, ABN Amro Inc., SunTrust Robinson Humphrey Inc., PNC Capital Markets LLC and HSBC Securities (USA) Inc. are leading Energy Transfer’s term loan.

Along with the revolver paydown, proceeds from the loan will be used to help fund the transfer of 30.8 million Energy Transfer Partners LP common units, Energy Transfer Equity’s 45% interest in the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline (the Bakken pipeline project) and $879 million in cash (less amounts funded prior to closing for capital expenditures for the Bakken pipeline project) in exchange for 30.8 million newly issued class H units of Energy Transfer Partners.

Closing is expected this month.

Ineos talk emerges

Also in the primary, Ineos held its lender call on Tuesday, launching its €750 million equivalent seven-year senior secured covenant-light term loan B with talk of Libor/Euribor plus 350 bps with a 1% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on March 11 for the term loan B, the source said, which is split between U.S. dollar and euro tranches, with a minimum size of $250 million and a minimum size of €250 million.

Barclays and J.P. Morgan Securities LLC are the lead bookrunners and joint global coordinators on the deal, and other bookrunners are Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc.

Proceeds will be used to refinance existing €500 million floating-rate notes due 2019 and $300 million of the $1 billion senior secured notes due 2019, with the redemption set to take place on April 1.

Ineos is a London-based manufacturer of petrochemicals, specialty chemicals and oil products.

Headwaters releases guidance

Headwaters came out with talk in the Libor plus 400 bps area with a 1% Libor floor and an original issue discount of 99 on its $425 million seven-year covenant-light term loan B (B1/BB-) in connection with its morning bank meeting, according to a market source. The debt has 101 soft call protection.

Commitments are due on March 12, the source continued.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance 7 5/8% senior secured notes.

Closing is expected this month.

Headwaters is a South Jordan, Utah-based manufacturer of light building products and heavy construction materials.

Coinmach discloses OID

Coinmach set original issue discount talk of 99.03 on its $125 million add-on first-lien covenant-light term loan (B2) due November 2019 that launched with a call in the afternoon, a market source said.

Pricing on the add-on term loan is Libor plus 325 bps with a 1% Libor floor, which matches existing first-lien term loan pricing.

Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to pay down revolver borrowings and for general corporate purposes, including potential tuck-in acquisitions.

In connection with this transaction, the laundry equipment service provider is amending its existing credit facility and lenders are being offered a 12.5 bps amendment fee.

Commitments and amendment consents are due on Friday, the source added.

Wabash readies loan

Wabash National surfaced with plans to hold a lender call on Thursday to launch a $192.8 million senior secured term loan due 2022, sources said.

Wells Fargo Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to repay an existing term loan due May 8, 2019.

Wabash is a Lafayette, Ind.-based diversified industrial manufacturer and a producer of semi-trailers and liquid transportation systems.

Freif on deck

Freif NAP scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch $295 million of seven-year term loans (Ba3), split between a $250 million term loan B and a $45 million term loan C, according to a market source.

The term loans have 101 soft call protection for one year, the source remarked.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing debt and fund the acquisition of power facilities.

Freif is an owner of power generation assets.

Healogics closes

In other news, Healogics Inc. completed its acquisition of Accelecare Wound Centers Inc., a news release said.

To help fund the transaction, Healogics got a $125 million add-on first-lien term loan priced at Libor plus 425 bps with a 1% Libor floor, in line with the existing first-lien term loan, and sold at an original issue discount of 98.56.

During syndication, the discount on the add-on loan was revised from 98.5, making the new debt fungible with the existing term loan.

J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC led the deal.

Healogics is a Jacksonville, Fla.-based provider of advanced wound-care services. Accelecare is a Bellevue, Wash.-based wound care and disease management company.

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