Jostens, Par Pacific, Western Dental free to trade; StandardAero rises on buyout buzz

By Sara Rosenberg

New York, Dec. 17 – Jostens Inc. (Champ Acquisition Corp.) upsized its first-lien term loan, Par Pacific lifted the spread on its term loan B and widened the original issue discount, and Western Dental Services modified the issue price on its incremental term loan B, and then these deals made their way into the secondary market on Monday.

Also in trading, StandardAero Aviation Holdings Inc.’s term loan gained some ground with chatter of a potential buyout transaction.

Jostens upsizes

Jostens lifted its seven-year covenant-light first-lien term loan (B1/B) to $775 million from $750 million, and left pricing at Libor plus 550 basis points with a 0% Libor floor and an original issue discount of 97, a market source said. The tranche has 101 soft call protection for one year.

The company is still getting a $150 million eight-year covenant-light second-lien term loan (Caa1/CCC+) at Libor plus 950 bps with a 0% Libor floor, a discount of 96 and hard call protection of 102 in year one and 101 in year two.

Previously in syndication, the spread on the first-lien term loan was increased from Libor plus 475 bps and the discount was changed from 99, pricing on the second-lien term loan was raised from Libor plus 875 bps and the discount was revised from 98, and the MFN was modified to 50 bps for life from 75 bps with a sunset of six months.

Commitments were due at 4 p.m. ET on Monday.

Jostens hits secondary

Late in the day, Jostens’ bank debt broke for trading, with the first-lien term loan quoted at 97¼ bid, 98 offered, another source added.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., BMO Capital Markets, Goldman Sachs Bank USA and Stifel are leading the now $925 million of term loans that will be used to help fund the roughly $1.3 billion buyout of the company by Platinum Equity from Newell Brands.

Closing is expected this quarter, subject to customary conditions, including regulatory approval.

Jostens is a Minneapolis-based provider of yearbooks, class jewelry and other scholastic products.

Par Pacific revised, breaks

Par Pacific raised pricing on its $250 million seven-year senior secured covenant-light term loan B (B1/BB-) to Libor plus 675 bps from talk in the range of Libor plus 575 bps to 600 bps and changed the original issue discount to 96 from 99, according to a market source.

Additionally, amortization on the term loan was increased to 5% per annum from 1% and a ticking fee was outlined as half the margin from days 31 to 70 and the full margin thereafter, the source said.

As before, the loan has a 0% Libor floor and hard call protection of 102 in year one and 101 in year two.

Recommitments were due at 3 p.m. ET on Monday and, by late day, the loan freed to trade, with levels seen at 96½ bid, another source added.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to help fund the acquisition of U.S. Oil & Refining Co. for $358 million plus net working capital.

Closing is expected in January.

Par Pacific is a Houston-based owner and operator of energy and infrastructure businesses.

Western Dental updated, trades

Western Dental Services set the original issue discount on its $145 million incremental term loan B due June 30, 2023 at 95 after widening talk in the morning to a range of 95 to 96 from 99 at launch, a market source said.

Furthermore, the company added 101 soft call protection for six months to the incremental term loan and to the existing term loan B, and made the incremental loan non-fungible instead of fungible with the existing loan, the source continued.

The incremental term loan is priced at Libor plus 450 bps with a 1% Libor floor.

After terms finalized, the incremental loan broke for trading and levels were quoted at 95 bid, 97 offered, a trader added.

RBC Capital Markets, Deutsche Bank Securities Inc. and BMO Capital Markets are leading the deal that will be used to fund the acquisition of Access Dental Services and South Texas Dental.

Western Dental, a portfolio company of New Mountain Capital, is an Orange, Calif.-based dental services organization.

StandardAero strengthens

Also in the secondary market, StandardAero’s term loan headed higher on buzz that the company might be bought out by the Carlyle Group from Veritas Capital, a market source remarked.

The term loan was quoted at 99 bid, par offered, up from 98½ bid, 99 offered, the source added.

StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services.

Plaskolite closes

In other news, the buyout of Plaskolite LLC by PPC Partners from Charlesbank Capital Partners has been completed, according to a news release.

To help fund the transaction, Plaskolite got $950 million of credit facilities consisting of a $100 million revolver (B2/B), a $660 million seven-year covenant-light first-lien term loan (B2/B) and a $190 million privately placed covenant-light second-lien term loan.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for six months.

During syndication, pricing on the first-lien term loan firmed at the high end of the Libor plus 400 bps to 425 bps talk, the discount widened from 99 and some adjustments were made to documentation.

Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. led the deal.

Plaskolite is a Columbus, Ohio-based provider of transparent thermoplastic sheet products.

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