Tronox breaks; WellSky, Corel updates emerge; Alkermes, Canada Goose, Ahlstrom release talk

By Sara Rosenberg

New York, March 2 – Tronox Finance LLC’s bank debt made its way into the secondary market on Tuesday morning, with the term loan B quoted above its original issue discount.

Meanwhile, in the primary market, WellSky trimmed the spread on its first-lien term loan B, Corel Corp. increased the size of its add-on first-lien term loan, and Alkermes Inc., Canada Goose Inc. and Ahlstrom-Munksjö disclosed price talk with launch.

Also, EyeSouth Partners (SCP Eye Care Services LLC), Flow Control Group (Flow Merger Sub Inc.), Vertex Aerospace Services Corp., Cowen Inc. and Kenan Advantage Group Inc. joined this week’s new issue calendar.

Tronox hits secondary

Tronox’s $1.3 billion seven-year term loan B began trading on Tuesday, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan B is Libor plus 250 basis points with a 25 bps step-down at 1.75x net secured leverage and a 0% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from Libor plus 275 bps, the step-down was added and the discount firmed at the tight end of the 99.5 to 99.75 talk.

The company’s $1.65 billion of credit facilities (Ba3/BB-) also include a $350 million five-year revolver.

HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., BofA Securities Inc., Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal. HSBC is the agent.

Proceeds will be used with cash on hand and $1.075 billion of senior notes, to refinance existing ABL facility and term loan B borrowings, to refinance senior notes due 2025 and 2026, and to pay fees and expenses.

Tronox is a Stamford, Conn.-based producer of titanium dioxide and inorganic chemicals.

WellSky flexes

Moving to the primary market, WellSky reduced pricing on its $1.125 billion seven-year first-lien term loan B (B) to Libor plus 325 bps from Libor plus 375 bps, a market source said.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

BofA Securities Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., BMO Capital Markets, RBC Capital Markets, Nomura and TPG are leading the deal that will be used to help refinance existing first-and second-lien term loans.

WellSky is an Overland Park, Kan.-based provider of healthcare enterprise software and related services.

Corel upsizes

Corel lifted its fungible add-on first-lien term loan to $100 million from $75 million and left the original issue discount at 99, a market source remarked.

Like the existing term loan, the incremental term loan is priced at Libor plus 500 bps with a 0% Libor floor.

Commitments were due at 3 p.m. ET on Tuesday, accelerated from 5 p.m. ET on Tuesday, the source added.

KKR Capital Markets, Citigroup Global Markets Inc. and Barclays are leading the deal that will be used to repay some second-lien term loan borrowings.

Corel is an Ottawa-based software company.

Alkermes guidance

Alkermes held its call at 2 p.m. ET on Tuesday and, a few hours before the call began, talk on its $300 million five-year covenant-lite first-lien term loan B was announced at Libor plus 250 bps to 275 bps with a 0.5% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on March 9, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance an existing term loan B due March 2023.

Alkermes is a Dublin-based biopharmaceutical company.

Canada Goose repricing

Canada Goose emerged in the morning with plans to hold a lender call at 11 a.m. ET to launch a $300 million covenant-lite first-lien term loan due October 2027 talked at Libor plus 350 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on March 9, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 0.75% Libor floor.

Canada Goose is a Toronto-based maker of performance luxury apparel.

Ahlstrom talk

Ahlstrom-Munksjö revealed price talk on its €450 million equivalent U.S. dollar seven-year first-lien term loan B (B2/B) and its €550 million seven-year first-lien term loan B (B2/B), a market source said.

Talk on the U.S. term loan is Libor plus 400 bps to 425 bps with a 0.75% Libor floor and an original issue discount of 99, and talk on the euro term loan is Euribor plus 400 bps to 425 bps with a 0% floor and a discount of 99.5, the source said. Both term loans have 101 soft call protection for six months.

Commitments are due at 2 p.m. ET on March 11, the source added.

Goldman Sachs International is the physical bookrunner on the U.S. loan. Goldman Sachs and Nordea Bank ABP are the physical bookrunners on the euro loan. Joint bookrunners include BNP Paribas Fortis SA/NV, Morgan Stanley Bank AG, Danske Bank A/S, DNB Bank ASA, ING Bank NV, OP Corporate Bank plc and Skandinaviska Enskilda Banken AB.

The new debt will be used to help fund the acquisition of an equity stake of more than 90% in the company by Bain Capital, Viknum and Belgrano Inversiones.

Ahlstrom-Munksjö is a Finland-based provider of fiber-based materials.

EyeSouth readies deal

EyeSouth set a bank meeting for 2 p.m. ET on Wednesday to launch $455 million of credit facilities, consisting of a $15 million five-year revolver, a $375 million seven-year senior secured first-lien term loan and a $65 million 18-month commitment period delayed-draw first-lien term loan, according to a market source.

The funded and delayed-draw term loans will be sold as a strip.

The term loan has 101 soft call protection for six months and the delayed-draw ticking fee is half the margin from days 46 to 90 and the full margin thereafter, the source said.

Jefferies LLC is leading the deal that will be used to refinance existing debt and finance near-term acquisitions.

EyeSouth is an Atlanta-based provider of practice management services to a network of affiliated ophthalmology practices, specializing in essential treatments for eye health conditions.

Flow Control on deck

Flow Control Group scheduled a lender call for 11 a.m. ET on Wednesday to launch $735 million of term loans, a market source remarked.

The debt is split between a $625 million seven-year covenant-lite first-lien term loan, including a $100 million delayed-draw tranche, and a $110 million eight-year covenant-lite second-lien term loan.

The first-lien term loan has 101 soft call protection for six months, the delayed-draw term loan has a ticking fee of 0.75% after 61 days and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on March 16, the source added.

Credit Suisse Securities (USA) LLC, UBS Investment Bank and KKR Capital Markets are leading the deal, with Credit Suisse the left lead on the first-lien loan and UBS the left lead on the second-lien loan.

The credit facilities will be used to help fund the buyout of the company by KKR from Bertram Capital and to finance deals under letters of intent.

Flow Control is a Charlotte, N.C.-based distributor and technical advisor for mission critical flow control and industrial automation products and related services.

Vertex joins calendar

Vertex Aerospace will hold a lender call at 11 a.m. ET on Wednesday to launch a $321,750,000 covenant-lite first-lien term loan B due June 2027 talked at Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on March 10, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to extend by two years and reprice an existing term loan B.

Vertex Aerospace is a Madison, Miss.-based defense aerospace company.

Cowen coming soon

Cowen surfaced with plans to hold a lender call at 10 a.m. ET on Wednesday to launch a $300 million first-lien term loan B, a market source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt and pay related fees, expenses and original issue discount.

Cowen is a New York-based investment bank and financial services company.

Kenan plans call

Kenan Advantage Group set a lender call for 2 p.m. ET on Wednesday to launch a $1 billion five-year covenant-lite term loan B, according to a market source.

KeyBanc Capital Markets LLC is leading the deal that will be used to refinance an existing term loan due 2022.

Kenan Advantage is a North Canton, Ohio-based tank truck transporter and logistics provider.

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