Genesee & Wyoming updated; eResearch, Terrapure, Polyconcept guidance surfaces

By Sara Rosenberg

New York, Nov. 5 – Genesee & Wyoming Inc. on Tuesday lowered the spread on its first-lien term loan and allocations are expected to go out on Wednesday.

In more happenings, eResearchTechnology Inc., Terrapure Environmental (Terra Bidco B.C. Ltd.) and Polyconcept released price talk on the loan deals with launch.

Also, Outfront Media Inc., Univar Inc., DRW Holdings LLC and EPIC Y-Grade Services LP joined the near-term primary calendar.

Genesee tweaked

Genesee & Wyoming trimmed pricing on its $2.55 billion seven-year covenant-lite first-lien term loan to Libor plus 200 basis points from talk in the range of Libor plus 250 bps to 275 bps, according to a market source.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $3.15 billion of senior secured credit facilities (Ba2/BB+) also include a $600 million revolver.

Recommitments were due at 2 p.m. ET on Tuesday, the source said.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, RBC Capital Markets, Citigroup Global Markets Inc., BMO Capital Markets, Bank of Nova Scotia, TD Securities (USA) LLC, Barclays and MUFG are leading the deal, with Credit Suisse and Wells Fargo the joint left leads.

Genesee being acquired

Genesee & Wyoming will use the new credit facilities with about $5.53 billion of equity to fund its acquisition by Brookfield Infrastructure and GIC for $112 per share in cash. The transaction is valued at about $8.4 billion, including debt.

Closing is expected by year-end, subject to customary closing conditions, such as approval by Genesee & Wyoming stockholders, required regulatory approvals, and some competition and antitrust approvals.

Genesee & Wyoming is a Darien, Conn.-based owner of short line railroads.

eResearch guidance

eResearchTechnology held its bank meeting on Tuesday and announced talk on its $1.155 billion seven-year first-lien term loan B (B2) at Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Nov. 19, the source said.

The company’s $1.85 billion of credit facilities also include a $200 million revolver (B2), a $395 million privately placed second-lien term loan and a $100 million privately placed delayed-draw second-lien term loan.

Goldman Sachs Bank USA, Jefferies LLC, Nomura and BofA Securities Inc. are leading the deal, which will be used for a recapitalization concurrent with an investment by Astorg to acquire a significant stake in the company alongside existing majority owner Nordic Capital.

eResearchTechnology is a Philadelphia-based provider of software-enabled clinical research solutions to pharmaceutical, biopharmaceutical and contract research organizations.

Terrapure sets talk

Terrapure Environmental came out with talk of Libor plus 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its C$580 million U.S. dollar equivalent seven-year first-lien term loan (B) that launched with an afternoon bank meeting in New York, a market source said.

There will be a bank meeting at 4 p.m. ET in Toronto on Wednesday for the transaction as well.

Commitments are due on Nov. 19, the source added.

The company’s C$715 million U.S. dollar equivalent senior secured credit facilities also include a C$60 million U.S. dollar equivalent five-year revolver (B) and a C$75 million U.S. dollar equivalent privately placed eight-year senior secured second-lien term loan.

Jefferies LLC, Deutsche Bank Securities Inc., Barclays and Credit Suisse Securities (USA) LLC are leading the deal, which will be used to help fund the buyout of the company by Pamplona Capital Management.

Terrapure is a Burlington, Ont.-based provider of environmental and industrial waste management services in Canada.

Polyconcept proposed terms

Polyconcept launched at its morning bank meeting its fungible $183 million incremental first-lien term loan due August 2023 at talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Goldman Sachs Bank USA, KKR Capital Markets and RBC Capital Markets are leading the deal that will be used for mergers and acquisitions.

In connection with this transaction, pricing on the company’s existing first-lien term loan will be lifted from Libor plus 375 bps with a 1% Libor floor to match the incremental loan pricing.

Amendment consents are due at 5 p.m. ET on Friday and commitments are due at 5 p.m. ET on Nov. 15, the source added.

Polyconcept is a New Kensington, Pa.-based supplier of promotional products.

Outfront readies loan

Outfront Media emerged with plans to hold a lender call at 11 a.m. ET on Wednesday to launch a $600 million senior secured term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to help refinance an existing $620 million term loan B.

Outfront Media is a New York-based outdoor media company.

Univar coming soon

Univar will hold a lender call at 2 p.m. ET on Wednesday to launch a $400 million first-lien term loan B-5, according to a market source.

Goldman Sachs Bank USA, BofA Securities, Inc., Deutsche Bank Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., US Bank, HSBC Securities (USA) Inc. and BMO Capital Markets are leading the deal that will be used to refinance an existing euro term loan due 2023.

Univar is a Downers Grove, Ill.-based chemical and ingredients distributor and provider of value-added services including specialty product blending, automated tank monitoring and refill, chemical waste management and digitally enabled marketing and sales.

DRW joins calendar

DRW Holdings set a bank meeting for 11 a.m. ET on Thursday to launch a $300 million seven-year first-lien term loan (B1/BB-), a market source said.

The term loan has 101 soft call protection for one year, the source added.

Jefferies LLC is leading the deal that will be used for general corporate purposes, including the expansion of trading capital.

DRW is a Chicago-based principle trading company across a diverse spectrum of asset classes and financial instruments on venues across the world.

EPIC Y-Grade on deck

EPIC Y-Grade Services scheduled a lender call for Wednesday to launch a $150 million incremental first-lien term loan, according to a market source.

UBS Investment Bank is leading the transaction.

EPIC Y-Grade is a transporter of natural gas liquids.

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