Nord Anglia sets lender call; Anchor Glass firms tight-to-talk pricing; loans see inflows

By Paul A. Harris

Portland, Ore., Nov. 21 – Cash flows into the dedicated bank loan accounts continue to be robust as investors seek exposure to secured floating-rate debt, a trader said on Monday.

Against a backdrop of substantial daily and weekly outflows from fixed-rate high-yield bonds, loan funds saw $384 million of daily inflows on Friday. By comparison, the high-yield funds saw $497 of outflows on the day.

In the bank loan primary market Nord Anglia Education Inc. scheduled a lender call for 11 a.m. ET on Nov. 29 for an $888 million repricing of its term loan.

And Anchor Glass Container Corp. firmed tight-to-talk pricing on $800 million of term loans.

Nord Anglia repricing

Nord Anglia Education scheduled a lender call for 11 a.m. ET on Nov. 29 for an $888 million repricing of its term loan B (B1/B), according to a market source.

The repricing is guided at Libor plus 325 basis points with a 1% Libor floor at 99.875.

The loan comes with six months of soft call protection at 101.

Goldman Sachs & Co. is the lead left bookrunner. JP Morgan Securities LLC and HSBC Bank are the joint bookrunners.

Nord Anglia Education is a Hong Kong-based operator of schools.

Anchor Glass firms tight-to-talk

Anchor Glass Container firmed tight-to-talk pricing on $800 million of term loans, a market source said on Monday.

A $650 million seven-year first-lien term loan (B1/B) firmed at Libor plus 325 bps with no step down, with a 1% Libor floor, at 99.5. Price talk was Libor plus 375 bps at 99.

A $150 million eight-year second-lien term loan (Caa1/CCC+) firmed at Libor plus 775 bps atop a 1% Libor floor at 99. Price talk was Libor plus 825 bps at 98.5.

Commitments are due at noon ET on Tuesday.

There were no changes to call protection. The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $920 million credit facility also provides for a $120 million ABL revolver.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and UBS Investment Bank are the leads on the deal.

Proceeds will be used to help fund the over $1 billion acquisition of the company by CVC Capital Partners and BA Glass BV from KPS Capital Partners LP.

Closing is expected in the fourth quarter, subject to customary conditions.

Packers sets final pricing

Packers Holdings LLC set final pricing on its $398,787,500 senior secured covenant-light term loan B due Dec. 2, 2021 (B2/B) at Libor plus 375 bps with a 25 bps step-down at 3.75 times net first-lien leverage and a 1% Libor floor, according to a market source.

The reoffer price is 99.50. Existing lenders are being offered a 25-bps amendment fee

Both the reoffer price and spread come on top of talk.

Included in the term loan is 101 soft call protection for six months and amortization of 1% per annum.

There are no financial covenants.

The deal is expected to close during the Nov. 28 week.

Morgan Stanley Senior Funding Inc. is bookrunner.

Proceeds from the incremental loan will be used to fund a distribution to shareholders.

Consents/commitments are due at noon ET on Friday, the source added.

Vestcom schedules meeting

Vestcom International Inc. scheduled a meeting with lenders on the morning of Nov. 29 in New York for its $375 million credit facility, according to a market source.

As reported Antares Capital, Credit Suisse Securities (USA) LLC, RBC Capital Markets and Barclays are the joint lead arrangers on the deal.

The facility consists of a $40 million revolver and a $335 million covenant-light term loan, the source said.

In addition, a $158 million second-lien term loan has been privately placed.

Proceeds will be used to help fund the buyout of the company by Charlesbank Capital Partners from Court Square Capital Partners.

Vestcom is a Little Rock, Ark.-based provider of outsourced shelf-edge information and media solutions.

CHG firms pricing

CHG Healthcare Services Inc. firmed pricing on its $140 million add-on first-lien term loan at 99.5, according to a market source.

The deal, which is coming with a 375 bps spread to Libor atop a 1% Libor floor, had been talked with an original issue discount of 99 to 99.5.

Timing has been moved ahead. Commitments are due on Wednesday, whereas previous timing left the book open until Nov. 29.

The add-on loan has 101 soft call protection until June 2017, the source said.

The spread, floor and call protection on the add-on term loan match the existing first-lien term loan.

Jefferies Finance LLC is the lead bank on the deal.

Proceeds will be used to fund a dividend.

With this transaction, the company is seeking an amendment to its existing bank debt to allow for the incremental loan and the dividend payment and to keep the $100 million incremental basket intact, the source added.

Lenders are being offered a 12.5-bps amendment fee.

Warner increases term loan

Warner Music Group Corp. subsidiary WMG Acquisition Corp. increased its term loan by $27.5 million to $1,006,000,000 and extended its maturity on Monday, according to an 8-K filing with the Securities and Exchange Commission.

The maturity date was extended to Nov. 1, 2023, subject, in certain circumstances, to a springing maturity inside the maturity date of some of the borrower’s other outstanding debt.

Credit Suisse AG is the administrative agent.

Also on Monday, WMG redeemed $27.5 million of its 5 5/8% senior secured notes due 2022 at 103% of par plus accrued interest, leaving $247.5 million of the notes outstanding.

Prime Healthcare closes

Prime Healthcare Foundation, Inc. closed a $160 million senior secured credit facility led by BBVA Compass, according to a Monday news release.

The facility includes a $50 million accordion feature for potential future expansion and will be used to fund acquisitions and support operations, Prime Healthcare said.

“This financing will strengthen our position and allow for continued growth,” Kavitha Reddy Bhatia, chair of Prime Healthcare Foundation, said in the release.

The public charity aims to provide quality healthcare for all and serve communities through various charitable and educational initiatives. It is based in Ontario, Calif.

Angela McDaniels and Wendy Van Sickle contributed to this story.

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