C&J Energy, Royal Adhesives start trading; Freif changes emerge; ViaWest revises deadline

By Sara Rosenberg

New York, March 19 – C&J Energy Services Inc. finalized original issue discounts on its term loan B-1 and term loan B-2 at the wide end of revised talk and then the debt freed up for trading above those prices on Thursday.

In more happenings, Royal Adhesives & Sealants increased the size of its add-on term loan B, tightened the offer price and emerged in the secondary market, Freif NAP I Holdings III LLC modified the original issue discount on its term debt, and ViaWest moved up the commitment deadline on its credit facility.

Also, Penn Products Terminals LLC disclosed price talk with launch, Travel Leaders Group LLC and National Veterinary Associates (NVA Holdings Inc.) came out with original issue discount guidance, Allison Transmission Inc. revealed timing on its proposed term loan, and American Tire Distributors Inc. surfaced with new deal plans.

C&J firms OIDs

C&J Energy Services set the original issue discount on its $575 million five-year term loan B-1 at 86 versus revised talk of 86 to 87 and initial talk of 90, kept pricing at Libor plus 550 basis points with a 1% Libor floor and left the call protection of 104 in year one and par thereafter intact, according to a market source.

As for the discount on the $485 million seven-year covenant-light term loan B-2, it firmed at 84, compared to revised talk of 84 to 85 and initial talk of 88, the source said. This tranche is still priced at Libor plus 625 bps with a 1% Libor floor and has call protection of 105 in years one and two, and par thereafter.

Earlier in syndication, the term loan B-1 was upsized from $510 million, the term loan B-2 was downsized from $550 million, the call protection on the B-2 tranche was revised from 105 in year one and 103 in year two, an excess cash flow sweep of 50% when leverage exceeds 3.25 times was established, and MFN protection was described as any amendment or modification that increases pricing on the term loan B-1 cannot increase the yield differential between the term loan B-1 and the term loan B-2 by more than 50 bps unless the yield differential above 50 bps is also added to the term loan B-2.

C&J hits secondary

With final details in place, C&J Energy’s term loans broke for trading on Thursday with the B-1 tranche quoted at 87 bid, 89 offered and the B-2 tranche quoted at 85 bid, 87 offered, a trader remarked.

Along with the term loans, the company’s $1.66 billion senior secured credit facility (Ba3/BB+) includes a $600 million revolver.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to finance the proposed combination with Nabors Industries’ completion and production services business.

Closing and funding is expected on March 23.

C&J Energy is a Houston-based provider of hydraulic fracturing, coiled tubing, cased-hole wireline, pumpdown and other oilfield services.

Royal Adhesives breaks

Royal Adhesives & Sealants’ $40 million fungible add-on senior secured first-lien term loan B (B) due July 31, 2018 also freed up, with levels quoted at par ½ bid, 101 offered, a trader said.

The add-on term loan, which was upsized from $35 million, is priced at Libor plus 425 bps with a 1.25% Libor floor and was issued at par, after tightening from 99¾, a market source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to help fund the acquisition of Chemical Innovations Ltd. As result of the debt upsizing, balance sheet cash consideration is being reduced.

Closing is expected on April 2.

Royal Adhesives is a South Bend, Ind.-based manufacturer and marketer of high performance adhesives, sealants, encapsulants and specialty polymers. Chemical Innovations is a U.K.-based manufacturer of high-performance bonding agents for industrial applications.

Freif tightens OID

Back in the primary, Freif NAP I Holdings moved the original issue discount on its $295 million of seven-year term loans (Ba3/BB-) to 99½ from 99, according to a market source.

The debt, which consists of a $250 million term loan B and a $45 million term loan C, is still talked in the Libor plus 375 bps area with a 1% Libor floor, and still has 101 soft call protection for one year.

Commitments were due at the close of business on Thursday, 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.

ViaWest shutting early

ViaWest accelerated the commitment deadline on its $450 million senior secured credit facility (B2/B+) to 5 p.m. ET on Friday from March 25, according to a market source.

The facility includes a $75 million five-year revolver and a $375 million seven-year term loan B.

Talk on the term loan B is Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

TD Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to refinance existing debt.

ViaWest is a Greenwood Village, Colo.-based IT Infrastructure services company.

Penn Products reveals talk

Penn Products Terminals held its bank meeting on Thursday, launching its $700 million first-lien credit facility (BB) with talk of Libor plus 425 bps to 450 bps, a source remarked.

The deal is split between a $125 million five-year revolver and a $575 million seven-year term loan B.

Included in the term B is a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source continued.

Commitments are due on April 1.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to help fund the buyout of the company by ArcLight Capital Partners.

Penn Products, previously known as Petroleum Products Corp., is a refined product terminal storage business in Pennsylvania.

Travel Leaders discloses OID

Travel Leaders Group released original issue discount talk of 99½ on its $78.5 million add-on first-lien term loan due Dec, 5, 2020 that launched with a call in the morning, according to a market source.

As previously reported, pricing on the add-on loan is Libor plus 600 bps with a 1% Libor floor.

Commitments are due on March 27, the source added.

UBS AG is leading the debt that will be used to fund a dividend.

Travel Leaders is a Plymouth, Minn.-based travel agency company.

National Veterinary launches

National Veterinary Associates approached investors with a fungible $60 million add-on first-lien term loan that is talked at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99½, a market source said.

Commitments are due on Monday, the source added.

Bank of America Merrill Lynch, Jefferies Finance LLC and Nomura are leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

National Veterinary Associates is an Agoura Hills, Calif.-based owner of independent freestanding veterinary hospitals.

Allison timing surfaces

Allison Transmission set a conference call for 1 p.m. ET on Monday to launch its new loan, according to a market source.

The company disclosed in an 8-K filed with the Securities and Exchange Commission on Wednesday that it intends to get a $470 million senior secured first-lien term loan.

Citigroup Global Markets Inc. is leading the deal that will be used to fund a tender offer expiring at 11:59 p.m. ET on April 14f or the company’s 7 1/8% senior notes due 2019.

Allison Transmission is an Indianapolis-based automatic transmission company.

American Tire coming soon

American Tire Distributors set a lender call for Friday to launch a $720 million 6½-year covenant-light term loan, a market source said.

Bank of America Merrill Lynch is leading the deal that will be used to refinance existing term loan debt.

American Tire is a Huntersville, N.C.-based replacement tire distributor.

© 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.