DYK Automotive breaks; Pinnacle Entertainment updates talk; MKS, AssuredPartners launch

By Sara Rosenberg

New York, April 4 – DYK Automotive/AAHC’s credit facility made its way into the secondary market on Monday, with levels on the term loan quoted above its original issue discount.

Meanwhile, in the primary market, Pinnacle Entertainment Inc. modified spread guidance on its term loan B and reduced the Libor floor.

Also, MKS Instruments Inc. released price talk on its term loan B with launch, AssuredPartners Inc. set original issue discount guidance on its incremental term loan, and Brocade emerged with new deal plans.

DYK hits secondary

DYK Automotive’s credit facility began trading on Monday, with the $134 million term loan seen at par bid, 101 offered, according to a trader.

Pricing on the term loan is Libor plus 475 basis points with a step-down to Libor plus 450 bps at less than 3 times net secured leverage and a 1% Libor floor. The debt has 101 soft call protection for six months and was sold at an original issue discount of 99.

During syndication, pricing on the term loan was reduced from Libor plus 550 bps, the step-down was added the discount was tightened from talk of 98 to 98.5.

The company’s $164 million credit facility also includes a $30 million revolver.

BNP Paribas Securities Corp. is leading the debt that will be used to help fund the buyout and merger of DYK and Automotive Aftermarket Holding Co. by The Sterling Group.

DYK Automotive is an automotive aftermarket distributor.

TK Enterprises steady

Also in the secondary market, TK Enterprises’s (Top Knobs) $195 million first-lien term loan was quoted at 99Ľ bid, in line with where the paper was bid upon breaking for trading on Friday, according to a trader.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor, and it was sold at an original issue discount of 98.5. The loan has 101 soft call protection for six months.

Proceeds were used to help fund the buyout of the company by Jordan Co.

Along with the first-lien term loan, the company got a $29 million revolver, and a $75 million second-lien term loan that placed directly by the sponsor.

Antares Capital, Bank of Ireland and Carlyle led the deal that closed on Monday, a source added.

TK Enterprises is a New Jersey-based manufacturer of decorative kitchen and bath hardware.

BWICs announced

A $174 million Bid Wanted In Competition surfaced, with bids due at 11 a.m. ET on Tuesday, a $91 million cash loan BWIC was announced, with bids due at 10 a.m. ET on Tuesday, and an $80.8 million second-lien BWIC emerged too, with bids due at 11 a.m. ET on Wednesday, traders said.

The $174 million BWIC has about 80 issuers, including Advantage Sales & Marketing Inc., Epicor Software Corp., Mattress Holding Corp., Party City Holdings Inc., Protection One Inc., Southern Graphics Inc., Travelport LLC and US Renal Care.

Some of the debt in the $91 million BWIC is Astoria Energy LLC’s term loan B, Avaya Inc.’s term loan B-7 and replacement term loan B-6, Bioplan USA Inc.’s first-lien term loan, Payless Inc.’s first-and second-lien term loan, SRAM LLC’s first-lien term loan and Toys R Us-Delaware Inc.’s term loan B-4. There are 15 issuers in the portfolio.

The $80.8 million BWIC has 24 issuers, including Capital Automotive LP, Fullbeauty Brands Holdings Corp., Global Tel Link Corp., Oxbow Carbon LLC, Sterling Infosystems and William Morris Endeavor Entertainment LLC, traders added.

Pinnacle tweaks deal

Moving to the primary market, Pinnacle Entertainment updated price talk on its $350 million seven-year covenant-light term loan B (Ba2/BB+) to Libor plus 350 bps to 375 bps, from just Libor plus 375 bps, and cut the Libor floor to 0.75% from 1%, according to a market source.

As before, the term loan B has an original issue discount of 99 and 101 soft call protection for six months.

Commitments continue to be due on April 13.

The company also plans to get a $400 million five-year revolver and a $185 million five-year term loan A.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Fifth Third Bank, U.S. Bank, Credit Agricole CIB, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and for general corporate purposes.

The credit facility and the sale of $300 million of senior notes are being done in connection with the spin off of the operating business and the real property of Belterra Park Gaming & Entertainment into a public company (Pinnacle) and the sale of the remaining real estate assets (PropCo.) to Gaming and Leisure Properties Inc.

Closing is expected on April 28, subject to customary conditions and regulatory approvals.

Pinnacle is a Las Vegas-based owner and operator of gaming entertainment properties.

MKS discloses talk

MKS Instruments held its bank meeting on Monday, launching its $800 million seven-year covenant-light term loan B (Ba2/BB) with talk of Libor plus 450 bps with a 0.75% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, a market source remarked.

The spread, floor and call protection on the term loan B match what was outlined by the company in earlier filings with the Securities and Exchange Commission.

Commitments are due by 5 p.m. ET on April 15, the source continued.

The company’s $850 million senior secured credit facility also includes a $50 million five-year ABL revolver.

Barclays and Deutsche Bank Securities Inc. are leading the deal, with Barclays the left lead on the term loan and Deutsche Bank the left lead on the revolver.

MKS buying Newport

Proceeds from MKS Instruments’ credit facility will be used to help fund the acquisition of Newport Corp. for $23.00 per share. The all-cash transaction is valued at about $980 million.

Total leverage is 2.5 times, and net leverage is 1 times, the source added.

Closing is expected in the second quarter, subject to regulatory approval and approval by Newport’s shareholders.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes. Newport is an Irvine, Calif.-based supplier of advanced-technology products and systems to customers in the scientific research, microelectronics, life and health sciences, industrial manufacturing and defense/security markets.

AssuredPartners floats OID

AssuredPartners came out with original issue discount talk of 98.5 on its $110 million incremental first-lien term loan that launched with a call during the session, according to a market source.

Pricing on the incremental term loan is Libor plus 475 bps with a 1% Libor floor.

Commitments are due at 4 p.m. ET on Wednesday, the source said.

Bank of America Merrill Lynch, Macquarie Capital (USA) Inc., Barclay, RBC Capital Markets LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to pay down revolver borrowings, to fund acquisitions and for general corporate purposes.

AssuredPartners is a Lake Mary, Fla.-based provider of property and casualty and employee benefits insurance brokerage services.

Brocade readying launch

Brocade is expected to hold a bank meeting during the week of April 11 to launch a $900 million five-year senior secured credit facility, a market source said, adding that the specific date for the meeting is not yet available.

According to an 8-K filed with the Securities and Exchange Commission, the facility consists of a $100 million revolver and an $800 million term loan A, both expected with initial pricing of Libor plus 150 bps.

Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with cash on hand to fund the acquisition of Ruckus Wireless Inc.

Ruckus is being bought for $6.45 in cash and 0.75 shares of Brocade common stock for each share of Ruckus common stock, in a transaction valued at about $1.5 billion.

Closing is expected in Brocade’s third fiscal quarter of 2016, subject to customary conditions, including reviews by U.S. and international antitrust regulators and the tender of a majority of the outstanding shares of Ruckus’ common stock.

Brocade is a San Jose, Calif.-based provider of networking solutions. Ruckus is a Sunnyvale, Calif.-based manufacturer of wireless networking equipment.

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