Pharmaceutical Product, Party City, Prolamina/Ampac, Navistar, Graton Economic break

By Sara Rosenberg

New York, Aug. 6 – Pharmaceutical Product Development LLC (Jaguar Holding Co. II), Party City Holdings Inc., Prolamina Corp./Ampac Holdings LLC (Intermediate Holdco (US)), Navistar International Corp. and Graton Economic Development Authority all saw their deals free up for trading during Thursday’s market hours.

Meanwhile, in the primary market, EMI Music Publishing trimmed the spread on its term loan and set the original issue discount at the tight end of guidance, and Amaya Gaming Group Inc. increased the size of its add-on term loan, outlined U.S. and euro tranching and modified the issue price on the euro piece.

Also, HD Supply Inc. reduced the spread on its term loan, and Global Healthcare Exchange LLC firmed pricing at the low end of talk on its term loan, added a step-down and tightened the original issue discount.

In addition, Consolidated Aerospace Manufacturing LLC finalized pricing on its term loan at the high side of talk, and DTZ (DTZ U.S. Borrower LLC and DTZ Aus HoldCo Pty Ltd.) accelerated the commitment deadline on its term loan.

Furthermore, Innovative XCessories & Services LLC launched an add-on and amendment to investors, and National Veterinary Associates (NVA Holdings Inc.) released original issue discount guidance on its add-on loan.

Pharmaceutical Product frees up

Pharmaceutical Product Development’s credit facility began trading on Thursday, with the $2,575,000,000 seven-year first-lien covenant-light term loan quoted at 99½ bid, par offered, according to a trader.

Pricing on the term loan is Libor plus 325 basis points with a 25 bps step-down at 3.5 times net first-lien leverage and a 1% Libor floor. The debt has 101 soft call protection for six months and was issued at an original issue discount of 99.5.

Recently, pricing on the term loan was cut from Libor plus 350 bps and the step-down was added.

The company’s $2,875,000,000 facility (B1/B) also includes a $300 million five-year revolver.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Goldman Sachs Bank USA, UBS AG, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding and Barclays are leading the deal that will be used to refinance existing debt and fund a shareholder dividend.

Pharmaceutical Product is a Wilmington, N.C.-based contract research organization focused on clinical development and laboratory services.

Party City tops OID

Party City’s $1.34 billion seven-year covenant-light term loan B (B1/B) also freed to trade, with levels seen at 99 7/8 bid, par ¼ 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 99.75. There is 101 soft call protection for six months.

During syndication, pricing on the term loan was set at the low end of the Libor plus 325 bps to 350 bps talk, the discount changed from 99.5, and the MFN sunset was removed.

With the term loan, the company plans on getting a $540 million asset-based revolver.

Deutsche Bank Securities, Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Mizuho, Morgan Stanley Senior Funding, MUFG, Sumitomo and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt, including ABL borrowings, a $1,094,000,000 term loan and a portion of the company’s 8 7/8% notes.

Closing is expected during the week of Aug. 17.

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods.

Prolamina/Ampac starts trading

Prolamina/Ampac’s credit facility broke too, with the $428 million seven-year first-lien term loan seen at 99 3/8 bid, 99 7/8 offered and the $90 million eight-year second-lien term loan seen at 98 bid, 99 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 400 bps 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 825 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.

Recently, the first-lien term loan was upsized from $400 million, the spread firmed at the wide end of the Libor plus 375 bps to 400 bps talk, and the call protection was extended from six months. Also, the second-lien loan was downsized from $110 million, pricing was set at the high end of the Libor plus 800 bps to 825 bps talk, and the discount widened from talk of 98.5 to 99. In addition, the MFN sunset provision was removed from the transaction.

Prolamina/Ampac revolver

In addition to the first- and second-lien term loans, Prolamina/Ampac’s $568 million credit facility includes a $50 million five-year revolver.

RBC Capital Markets LLC is leading the deal.

Proceeds will be used to fund the acquisition of Ampac by Wellspring Capital Management LLC and combination with Wellspring’s portfolio company, Prolamina.

The combination will create a new flexible packaging company with 16 global manufacturing facilities serving over 4,900 customers.

Navistar breaks

Navistar’s $1.04 billion five-year senior secured term loan (Ba3/B-/B) emerged in the secondary as well, with levels quoted at 99 bid, 99½ offered, and then it moved up to 99 1/8 bid, 99 5/8 offered, a trader remarked.

The term loan is priced at Libor plus 550 bps with a 1% Libor floor and was issued at a discount of 98.5. The debt has hard call protection of 101 for two years.

Earlier this week, pricing on the loan was lifted from talk of Libor plus 475 bps to 500 bps, the discount was revised from 99, and the call protection was sweetened from a soft call of 101 for six months.

JPMorgan, Goldman Sachs Bank USA and Credit Suisse Securities are leading the deal that will be used to refinance an existing $697.5 million senior secured term loan due August 2017 and provide additional liquidity.

Navistar is a Lisle, Ill.-based manufacturer and seller of commercial and military trucks, buses, and diesel engines, and a provider of service parts for trucks and trailers.

Graton hits secondary

Another deal to free up was Graton Economic Development Authority’s $225 million seven-year term loan B (B2), with levels quoted at 99¾ bid, par ¼ offered, according to a trader.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. This tranche has 101 soft call protection for one year.

During syndication, pricing on the term loan was reduced from talk of Libor plus 400 bps to 425 bps.

Bank of America Merrill Lynch, Wells Fargo Securities, U.S. Bank NA, Capital One and Fifth Third Bank are leading the deal that will be used to fund a tender offer expiring Aug. 31 for 9 5/8% senior secured notes due Sept. 1, 2019.

Graton is a Rohnert Park, Calif., authority formed to develop, construct and operate all gaming and related businesses of the Graton Rancheria Tribe, including the Graton Resort & Casino in Sonoma County.

EMI flexes lower

Switching to the primary market, EMI Music Publishing cut pricing on its $1.12 billion seven-year first-lien term loan to Libor plus 300 bps from Libor plus 325 bps and set the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s $1.17 billion credit facility (Ba3) also includes a $50 million five-year revolver.

Commitments are due on Monday, moved up from an original deadline of Aug. 13, the source added.

UBS AG and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt, to pay a dividend and to add cash to the balance sheet for future debt repayment.

EMI Music is a New York-based music publisher.

Amaya reworks deal

Amaya Gaming lifted its add-on U.S. and euro first-lien covenant-light term loan (B1/BB-) due August 2021 to $425 million-equivalent from $400 million-equivalent and set tranching as a $325 million and €92 million split, a market source said.

In addition, the original issue discount on the euro tranche was tightened to 99.75 from 99.5, the source continued.

As before, the U.S. tranche has a discount of 99.5 and pricing of Libor plus 400 bps with a 1% Libor floor, and the euro tranche has pricing of Euribor plus 425 bps with a 1% floor. All of the add-on debt has 101 soft call protection for six months. The spread and floor on the U.S. and euro tranches matches existing term loan pricing.

Deutsche Bank Securities, Macquarie Capital, Goldman Sachs Bank USA and Barclays are leading the deal.

Amaya repaying debt

Proceeds from Amaya’s add-on term loan will be used with about $195 million in cash to repay $600 million of the company’s existing $800 million second-lien term loan. The paydown was increased from $575 million as a result of the term loan upsizing, the source added.

Recommitments from U.S. lenders were due by end of day on Thursday, and recommitments from euro accounts are due at 9 a.m. ET on Friday.

In connection with the add-on, the company is seeking an amendment to its existing first-lien term loan, and lenders are offered a 25 bps consent fee.

Amaya is a Pointe-Claire, Quebec-based provider of gaming products and services.

HD Supply trims pricing

HD Supply reduced pricing on its $850 million senior secured six-year covenant-light term loan B (B1/BB-) to Libor plus 275 bps from Libor plus 300 bps, according to a market source, who said the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months were left unchanged.

Commitments were due at 5 p.m. ET on Thursday, the source added.

Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, JPMorgan and Wells Fargo Securities are leading the deal that will be used with cash on hand and borrowings under the company’s existing revolver to refinance an existing senior secured term loan.

HD Supply is an Atlanta-based industrial distributor.

Global Healthcare updated

Global Healthcare Exchange finalized pricing on its $375 million seven-year term loan B at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, added a step-down to Libor plus 425 bps when leverage is below 4 times and changed the original issue discount to 99.5 from 99, a source remarked.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $400 million credit facility (B2/B) also includes a $25 million revolver.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt.

Net total leverage is about 4.9 times.

Global Healthcare Exchange is a Louisville, Colo.-based provider of health-care supply chain solutions.

Consolidated Aero firms spread

Consolidated Aerospace set pricing on its $240 million seven-year covenant-light term loan at Libor plus 375 bps, the wide end of the Libor plus 350 bps to 375 bps talk, while leaving the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months intact, a source remarked.

The company’s $265 million credit facility (BB-) also includes a $25 million five-year revolver.

Allocations are targeted for Monday, the source added.

Citizens Bank is leading the deal that will be used to refinance existing debt.

Consolidated Aerospace is a Fullerton, Calif.-based manufacturer of components principally for the aerospace industry.

DTZ shutting early

DTZ moved up the commitment deadline on its $1,805,000,000 first-lien term loan due Nov. 4, 2021 to Friday from Wednesday, a market source said.

The term loan is talked at Libor plus 375 bps with a 1% Libor floor and 101 soft call protection for six months.

Of the total term loan amount, $1,055,000,000 is incremental debt that will be used to fund the acquisition of Cushman & Wakefield, and the remainder will be used to reprice the company’s existing first-lien term loan from Libor plus 450 bps with a 1% Libor floor.

The incremental term loan is talked with an original issue discount of 99.5.

DTZ lead banks

UBS AG, JPMorgan, Bank of America Merrill Lynch, Credit Suisse Securities, Citigroup Global Markets Inc., Morgan Stanley Senior Funding, Credit Agricole Securities (USA) Inc., Mizuho Securities USA Inc. and HSBC Securities (USA) Inc. are leading DTZ’s financing.

Along with the term loan, the company plans to get a $175 million incremental multi-currency revolver due Nov. 4, 2019, bringing the total revolver size to $375 million.

Closing on the Cushman & Wakefield acquisition is expected by year-end, subject to customary conditions.

DTZ is a Chicago-based property services company. Cushman & Wakefield is a New York-based real estate services company. The combined company will operate under the Cushman & Wakefield brand.

Innovative Xcessories launches

Innovative XCessories’s $103 million add-on term loan priced at Libor plus 425 bps with a 1% Libor floor, in line with existing term loan pricing, and lenders will get paid 50 bps for commitments, according to a market source.

All of the term loan debt is getting 101 soft call protection for six months.

GE Capital Markets is leading the deal that will be used to fund a $55 million dividend, to repay $40 million of mezzanine and $15 million of holdco notes and to add cash to the balance sheet.

Also, the company is seeking an amendment to its existing credit facility to allow for the add-on.

Innovative XCessories is a Huntsville, Ala.-based provider of upfit services and accessories to the automotive aftermarket and original equipment manufacturers.

National Veterinary OID talk

National Veterinary Associates came out with original issue discount talk of 99.5 on its fungible $75 million add-on covenant-light term loan (B1/B) due Aug. 14, 2021 that launched with a call, a source remarked.

The debt, split between a $50 million funded tranche and a $25 million delayed-draw tranche, is priced at Libor plus 375 bps with a 1% Libor floor, in line with existing term loan pricing.

Commitments are due on Wednesday, the source added.

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

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

Duff add leads

In other news, RBC Capital Markets joined left lead Credit Suisse Securities on Duff & Phelps Corp.’s $151 million in new term loan debt, according to a market source.

The debt, which launched with a call on Wednesday, consists of a $41 million incremental first-lien term loan due April 23, 2020 and a $110 million six-year second-lien term loan.

As previously reported, talk on the incremental first-lien term loan is Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.75, and the second-lien term loan is talked at Libor plus 775 bps with a 1% Libor floor and a discount of 99.

With the incremental loan, the company is resetting the 101 soft call protection for six months on the first-lien debt, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Duff funding dividend

Proceeds from Duff & Phelp’s first- and second-lien term loans will be used to fund a dividend to shareholders.

In connection with the transaction, lenders are being offered a 25 bps amendment fee.

Commitments are due at 5 p.m. on Aug. 12, the source added.

Duff & Phelps is a New York-based financial advisory and investment banking firm.

Informatica closes

Informatica Corp. completed its $2.13 billion senior secured credit facility (B2/B) that includes a $150 million revolver, a $1.71 billion U.S. dollar seven-year covenant-light term loan B and a €250 million seven-year covenant-light term loan B, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the U.S. and euro term loan B is Libor/Euribor plus 350 bps with a 25 bps step-down at 6.25 times net total leverage and a 1% floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the U.S. term loan was upsized from a revised amount of $1,705,000,000, and before that it was lifted from $1,605,000,000 when the company’s bond offering was downsized to $650 million from $750 million. Prior to that it was downsized from $1,875,000,000 when the company added the euro term loan B to the capital structure.

Also in syndication, pricing on the U.S. and euro term loans was lowered from Libor/Euribor plus 375 bps, and the discount was tightened from 99.5.

Informatica acquired

Proceeds from Informatica’s credit facility, bonds and equity were used to fund its buyout by Permira funds and Canada Pension Plan Investment Board for $48.75 in cash per share. The transaction is valued at $5.3 billion.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities, Macquarie Capital, Morgan Stanley Senior Funding, Nomura Securities International Inc., RBC Capital Markets and Deutsche Bank Securities led the credit facility.

Informatica is a Redwood City, Calif., provider of enterprise data integration software and services.

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