Nexeo Solutions term loan gains on acquisition news; Global Payments reveals guidance

By Sara Rosenberg

New York, March 21 – Nexeo Solutions Holdings LLC’s term loan B headed higher in the secondary market on Monday following news that the company is being acquired by WL Ross Holdings Corp.

Moving to the primary market, Global Payments Inc. released price talk with launch, Atlantic Power LP (APLP Holdings LP) joined this week’s new issue calendar, and Travel Leaders Group LLC wrapped syndication on its add-on term loan in line with talk.

Nexeo rises

Nexeo’s term loan B strengthened in trading on Monday after it was announced that WL Ross Holdings is purchasing the company from TPG for up to 35 million shares of WL Ross Holdings common stock plus $1,296,000,000 in cash and assumed net debt for a total consideration of $1,646,000,000, assuming a $10.00 per share valuation for the shares of common stock, according to traders.

The term loan B was quoted at 99 5/8 bid, 100 1/8 offered, versus levels last week of 98¾ bid, 99¼ offered, traders said.

To help fund the transaction, Nexeo has received a commitment for a $1,205,000,000 credit facility, split between a $630 million term loan and a $575 million ABL facility. About $75 million will be drawn under the ABL facility at closing.

Nexeo lead banks

Bank of America Merrill Lynch, Jefferies Finance LLC and Deutsche Bank Securities Inc. are leading Nexeo’s proposed credit facility.

Pro forma leverage is 3.8 times.

Closing on the acquisition is expected in early June, subject to regulatory approvals and WL Ross Holdings stockholder approval.

With closing, WL Ross Holdings will change its name to Nexeo Solutions Inc.

Also, TPG will roll over a substantial portion of its existing equity and retain about 35% ownership.

Nexeo is a Houston-based distributor of chemicals and plastics and provider of environmental services.

Global Payments sets talk

In more happenings, Global Payments held its bank meeting on Monday, launching its $1,045,000,000 seven-year term loan B (Ba2/BBB-) with talk of Libor plus 350 basis points with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Bank of America Merrill Lynch is the left lead on the deal that will be used to help fund the acquisition of Heartland Payment Systems Inc. in a cash-and-stock transaction for $100 per share, representing a transaction value of about $4.3 billion. Consideration for the transaction will consist of 0.6687 of a share of Global Payments stock and $53.28 for each share of Heartland stock at closing.

Closing is expected in Global Payments’ fiscal 2016 fourth quarter, subject to regulatory approval and customary conditions, as well as approval by Heartland’s shareholders.

Global Payments is an Atlanta-based provider of payment technology services. Heartland is a Princeton, N.J.-based payment processor.

Atlantic Power readies deal

Atlantic Power emerged with plans to hold a bank meeting at 10 a.m. ET on Wednesday to launch a $910 million senior secured credit facility, according to a market source.

The facility consists of a $700 million seven-year term loan B that includes 101 soft call protection for one year, and a $210 million five-year revolver, the source remarked.

Goldman Sachs Lending Partners LLC and Bank of America Merrill Lynch are the joint bookrunners on the deal and joint lead arrangers with RBC Capital Markets, MUFG and Wells Fargo Securities LLC.

Proceeds will be used to refinance an existing roughly $473 million term loan and $210 million revolver, to redeem C$67.3 million 6.25% convertible debentures due in March 2017 and C$75.8 million 5.6% convertible debentures due in June 2017, to fund other potential initiatives to reshape the company’s capital structure and for general corporate purposes.

Closing is subject to syndication and other customary conditions.

Atlantic Power is a Dedham, Mass.-based owner and operator of power generation assets.

Travel Leaders syndicates

Travel Leaders Group completed syndication of its fungible $25 million add-on term loan (B+) at the original issue discount talk of 98.75, a market source said.

The add-on term loan is priced at Libor plus 600 bps with a 1% Libor floor, in line with existing term loan pricing.

UBS AG is leading the debt that will be used to add liquidity for potential acquisitions.

In addition to the add-on term loan, the company sought technical amendments to its credit facility, for which lenders were offered a 12.5-bps consent fee.

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

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