Berry Plastics sets terms on repricings; Bombardier Recreational Products sets lender call

By Paul A. Harris

Portland, Ore., June 13 – Bank loans were unchanged on Monday, according to a loan trader based on the East Coast.

An anticipated wave of repricings are staying the hands of investors from chasing loan paper in the secondary market, the trader said.

The cash flows of the dedicated bank loan funds were negative on Friday, with the funds seeing $10 million of outflows on the day, the trader said.

In the primary market Berry Plastics Corp. completed $2,809,125,000 of repriced term loans.

And Bombardier Recreational Products Inc. plans to launch a $700 million seven-year term loan B on a lender call scheduled for Tuesday.

Berry Plastics repricings

Berry Plastics priced $2,809,125,000 of repriced term loans (Ba3/BB) on Monday, according to a market source.

The debt includes an $814,375,000 term loan G due January 2021, which priced at par with a 250 basis points spread to Libor atop a 1% Libor floor.

In addition the company priced a $1,994,750,000 term loan H due October 2022 at par with a 275-bps spread to Libor atop a 1% Libor floor. The spread on the term loan H steps down to 250 bps when net first-lien leverage is less than 3 times.

Both loans come with 101 soft call protection for six months.

Citigroup was the left joint lead arranger. BofA Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank, Goldman Sachs & Co. and Well Fargo Securities were also joint lead arrangers. Credit Suisse was the administrative agent.

The loans are expected to close late this week.

Berry Plastics is an Evansville, Ind.-based manufacturer and marketer of value-added plastic consumer packaging and engineered materials.

Bombardier Recreational call

Bombardier Recreational Products plans to launch a $700 million seven-year term loan B on a lender call scheduled for Tuesday, according to a market source.

RBC Capital Markets, BMO Capital Markets, Citigroup Global Markets and TD Securities are the arrangers.

The Valcourt, Canada-based company also plans to put in place a C$425 million amended and restated five-year revolver.

The company plans to use proceeds, along with cash on hand, to replace its existing C$350 million revolver due in 2018 and its $792 million term loan B due 2019.

The transaction will be effected by amending and restating the existing credit agreements in their entirety on substantially the same terms.

Pro forma for the transaction, the borrower will have total net leverage of 1.9 times.

Bombardier Recreational Products, a wholly owned subsidiary of BRP Inc., designs, develops, manufactures, distributes and markets powersports vehicles and propulsion systems.

CIBT sets talk

CIBT Holdings Inc. tightened spread talk and shifted proceeds in its $327 million multi-tranche senior credit facility, according to a market source.

The shift of proceeds sees $10 million equivalent shifted to the sterling-denominated tranche from the dollar-denominated tranche.

The sterling-denominated six-year term loan is upsized to $30 million equivalent from $20 million equivalent.

The dollar-denominated six-year term loan is downsized to $217 million from $227 million.

The sizes of the $20 million five-year revolver, the $20 million equivalent euro six-year term loan and the $40 million 18-month delayed-draw six-year final maturity term loan were left unchanged.

Spread talk on the term loans was decreased to Libor plus 525 basis points from 550 bps. Left unchanged were the 1% Libor floors and an original issue discounts of 99.

Antares Capital is the lead on the deal.

Included in the term loans is 101 soft call protection for six months.

The delayed-draw term loan has a 1% unused fee during the delayed-draw period.

Commitments are due at 5 p.m. ET on Tuesday.

The deal is expected to close and fund on Friday.

Proceeds will be used to refinance existing debt and fund add-on acquisitions.

CIBT, an ABRY Partners portfolio company, is a McLean, Va.-based provider of travel document processing services.

Arbor Pharmaceuticals meeting

Arbor Pharmaceuticals LLC set a Wednesday bank meeting for its $500 million seven-year covenant-light term loan, according to a market source.

Deutsche Bank Securities Inc. is the left bookrunner. Barclays, Citigroup, Goldman Sachs, RBC, Mizuho and KKR Capital Markets are the joint bookrunners.

Formal pricing remains to be announced.

As reported, the term loan is expected to be priced at Libor plus 400 bps with a step-down to Libor plus 350 bps at 2 times first-lien leverage and a 1% Libor floor. Included in the term loan is 101 soft call protection for six months and amortization of 1% per annum.

The facility consists of a $75 million five-year revolver expected initially at Libor plus 400 basis points with a 50-bps commitment fee. The spread can step-down to Libor plus 350 bps and to Libor plus 325 bps, and the commitment fee can step-down to 37.5 bps, based on first-lien leverage.

Proceeds will be used to help fund its acquisition of XenoPort Inc., which is being acquired for $7.03 per share in cash, or a total equity value of about $467 million.

Closing is expected in the third quarter, subject to certain customary conditions, including the tender of more than 50% of all outstanding shares of XenoPort and review by the U.S. Government under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act.

Arbor Pharmaceuticals is an Atlanta-based pharmaceutical company currently focused on the cardiovascular, hospital and pediatric markets. XenoPort is a Santa Clara, Calif.-based biopharmaceutical company.

Advanced Integration meeting

Advanced Integration Technology set a Wednesday bank meeting to launch a senior secured credit facility to investors, according to a market source.

UBS, Citibank, and SunTrust are the arrangers.

The borrower is a Plano, Texas-based industrial technology company.

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