Stetson Midstream sets guidance; multiple deals hop onto this week’s new issue calendar

By Sara Rosenberg

New York, July 9 – In the primary market on Monday, Stetson Midstream released price talk on its term loan B in connection with its bank meeting.

Also, Westinghouse Electric Co. (Brookfield WEC Holdings Inc.), Ball Metalpack, Sirva Worldwide Inc., CEVA Logistics Finance BV, PLH Group, ProFrac Services LLC and Gateway Casinos & Entertainment Ltd. joined this week’s calendar.

Stetson reveals talk

Stetson Midstream held its bank meeting on Monday, launching its $1 billion seven-year senior secured term loan B (Ba3) at talk of Libor plus 375 basis points with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on July 19, the source said.

Goldman Sachs Bank USA, Barclays, Bank of America Merrill Lynch, RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund the acquisition of equity interests in ENLK, ENLC and EnLink Midstream Manager.

Stetson Midstream is a diversified U.S. midstream platform.

Westinghouse readies launch

Westinghouse scheduled a bank meeting for 10 a.m. ET in New York on Wednesday to launch $3.08 billion in term loans, a market source said.

The debt consists of a $2.63 billion seven-year first-lien term loan (B2/B) with 101 soft call protection for six months, and a $450 million eight-year second-lien term loan (Caa1/B-) that is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, the source added.

Commitments are due at 5 p.m. ET on July 25.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., BMO Capital Markets, RBC Capital Markets, Barclays and Credit Agricole are leading the deal, with Credit Suisse left on the first-lien loan and Goldman Sachs left on the second-lien loan.

The loans will be used to help fund the acquisition of the company by Brookfield Business Partners LP for about $4.6 billion.

Closing is expected in the third quarter of 2018, subject to Bankruptcy Court approval and customary conditions, including regulatory approvals.

Westinghouse is a Cranberry Township, Pa.-based provider of technology and infrastructure services to a nuclear reactor fleet.

Ball Metalpack on deck

Ball Metalpack will hold a bank meeting at 1 p.m. ET in New York on Wednesday to launch $665 million of credit facilities, a market source remarked.

The facilities consist of a $125 million ABL revolver, a $375 million first-lien term loan due 2025 and a $165 million second-lien term loan due 2026, the source added.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Mizuho and Stifel are leading the deal, with Goldman left on the first-lien loan and Bank of America left on the second-lien.

The new debt will be used to form Ball Metalpack via a joint venture between Ball Corp. and Platinum Equity Capital Partners.

The agreement provides that which Ball will contribute its U.S. steel food and aerosol packaging manufacturing assets to the joint venture, and, in return, will receive more than $600 million in pre-tax proceeds and will retain a 49% interest in Ball Metalpack, for a total value of about $675 million.

Ball Metalpack is a manufacturer of tinplate food and aerosol cans.

Sirva coming soon

Sirva Worldwide set a bank meeting for 1:30 p.m. ET on Tuesday to launch $605 million of credit facilities, according to a market source.

The facilities consist of a $60 million five-year revolver, a $410 million seven-year first-lien term loan and a $135 million eight-year second-lien term loan, the source said.

Barclays, Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal that will be used to help fund the buyout of the company by Madison Dearborn Partners from Aurora Resurgence and Equity Group Investments and Sirva’s concurrent acquisition of Team Relocation.

Closing is expected this summer, subject to regulatory approvals.

Sirva is an Oakbrook Terrace, Ill.-based relocation and moving service provider.

CEVA joins calendar

CEVA Logistics emerged with plans to hold a bank meeting at 10 a.m. ET on Tuesday to launch a $400 million seven-year first-lien term loan (B1/BB-) that has a 0% Libor floor and 101 soft call protection for six months, a market source said.

Commitments are due on July 24, the source added.

Credit Suisse Securities (USA) LLC and HSBC are leading the deal.

The company disclosed in a news release that is also plans on getting a new $600 million senior revolving credit and ancillary facility due 2023, and an additional offering of debt, including by way of senior secured notes, contemplated in euro and in an amount of about $350 million, might follow at a later stage.

The new debt will be used with cash on hand to repay all $580 million term loans due 2021, to fund a tender offer for around $438 million of 9% first lien senior secured notes due 2020 and for general corporate purposes.

CEVA is a Switzerland-based third-party logistics company.

PLH readies deal

PLH Group will hold a lender call at 3 p.m. ET on Tuesday to launch $260 million of credit facilities, according to a market source.

The facilities consist of a $60 million 4.5-year ABL revolver and a $200 million five-year senior secured first-lien term loan (B2), the source said.

Barclays and KeyBanc Capital Markets are leading the deal that will be used to refinance substantially all of the company’s existing debt, fund a distribution to shareholders, and pay transaction fees and expenses.

PLH is an Irving, Texas-based full service specialty contractor serving the electric power and pipeline industries.

ProFrac on deck

ProFrac Services scheduled a lender call for 3 p.m. ET on Wednesday to launch a $250 million five-year senior secured term loan B, according to a market source.

Barclays is leading the deal that will be used to refinance existing debt, to partially repay perpetual preferred stock, for general corporate purposes including capital expenditures, and for fees and expenses.

ProFrac is a Fort Worth, Texas-based oil and gas services company.

Gateway plans loan

Gateway Casinos set a lender call for 11 a.m. ET on Tuesday to launch an $80 million add-on term loan B (BB-), a market source remarked.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the acquisition of the Central Bundle, which consists of two current sites, Georgian Downs and Casino Rama, and one future site, Wasaga Beach/Collingwood.

Gateway Casinos is a Burnaby, B.C.-based owner of gaming properties.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.