ClubCorp, American Airlines bids soften with repricings; Smart & Final, Allison update deals

By Sara Rosenberg

New York, Sept. 14 – ClubCorp Club Operations Inc. and American Airlines Group Inc. saw their term loans bid a little lower in the secondary market on Wednesday after both companies approached lenders with repricing transactions.

Shifting to the primary market, Smart & Final Stores LLC lifted pricing on its extended term loan B and set the original issue discount at the wide end of guidance, and Allison Transmission Inc. trimmed the size of its term loan B, firmed the spread at the low end of talk and reduced the Libor floor.

In addition, Matrix Medical Network, Floor & Decor Outlets of America Inc., Tronair, Orion Engineered Carbons SA and Camping World Good Sam released price talk with launch.

Also, inVentiv Health Inc. and Henry Co. LLC came out with timing on the launch of their proposed loan transactions, and OrthoLite emerged with new deal plans.

ClubCorp bid dips

ClubCorp’s term loan slid on the bid side in trading on Wednesday to par ¼ bid, par ¾ offered from par ½ bid, par ¾ offered as the company held its call and lenders were told that a repricing is being sought after, according to a trader.

Specifically, the company launched a repricing of its $675 million senior secured covenant-light term loan due Dec. 15, 2022 at talk of Libor plus 300 basis points with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

By comparison, current pricing on the term loan is Libor plus 325 bps with a 1% Libor floor.

Cashless roll commitments are due at 5 p.m. ET on Sept. 20, and new money commitments are due at 5 p.m. ET on Sept. 21, the source continued, adding that closing is expected on Sept. 28.

Citigroup Global Markets Inc. is leading the transaction.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs and business, sports and alumni clubs.

American Airlines lower

American Airlines’ $742.5 million senior secured term loan B due Oct. 10, 2021 was also bid lower on repricing news, with the debt quoted at par 1/8 bid, par ½ offered, versus par ¼ bid, par ½ offered in the prior session, a trader said.

The company is talking the repriced loan at Libor plus 250 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

The repricing will take the term loan down from Libor plus 275 bps with a 0.75% Libor floor.

Cashless roll commitments are due at 3 p.m. ET on Friday, and new money commitments are due at 5 p.m. ET on Monday, the source added.

Citigroup is leading the deal that is expected to close on Sept. 22.

American Airlines is a Fort Worth, Texas-based airline company.

Smart & Final revised

Moving to the primary market, Smart & Final Stores raised pricing on its $594.9 million senior secured covenant-light term loan B due Nov. 15, 2022 to Libor plus 350 bps from Libor plus 325 bps and set the original issue discount at 99.5, the wide end of the 99.5 to 99.75 talk, according to a market source.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

Recommitments are due by 3 p.m. ET on Thursday, with allocations expected thereafter, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal, which will be used to amend and extend and existing term loan B due Nov. 15, 2019 that is priced at Libor plus 325 bps with a 0.75% Libor floor.

Smart & Final is a Commerce, Calif.-based warehouse-style, no membership fee, multi-format retailer serving households and smaller businesses.

Allison reworks loan

Allison Transmission reduced its senior secured covenant-light term loan B due September 2022 to $1.2 billion from $1.7 billion and increased its senior unsecured notes offering to $1 billion from $500 million, according to a market source.

In addition, pricing on the term loan B was set at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, and the Libor floor was cut to 0.75% from 1%, the source said.

As before, the term loan B has a 25 bps extension fee and 101 soft call protection for six months.

Recommitments are due at noon ET on Thursday, and allocations are expected on Friday, the source added.

Allison lead banks

Citigroup, Barclays, Bank of America Merrill Lynch, BMO Capital Markets, Fifth Third Bank, J.P. Morgan Securities LLC and SMBC are leading Allison Transmission’s term loan B.

Proceeds will be used to amend and extend an existing term loan B that matures in August 2019. The bonds will be used with cash on hand to repay a portion of the existing $2.39 billion term loan and pay related transaction fees and expenses.

The company is also looking to extend its $450 million revolver to 2021 from January 2019.

Closing is targeted for Sept. 23.

Allison Transmission is an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems.

Matrix terms surface

Also in the primary, Matrix Medical Network hosted its bank meeting on Wednesday, and with the event, guidance on its $238 million six-year first-lien term loan was revealed to be Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due on Sept. 27, the source added.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used with $179.7 million in equity to fund the purchase of a 60% equity interest in the company by Frazier Healthcare Partners from Providence Service Corp., with Providence retaining a 40% equity interest. The transaction values Matrix at about $537.5 million.

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

Matrix Medical is a Scottsdale, Ariz.-based provider of in-home care.

Floor & Decor details emerge

Floor & Decor launched at its bank meeting a $300 million seven-year first-lien term loan with talk of Libor plus 475 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.

Commitments are due on Sept. 28, the source said.

UBS Investment Bank, Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and pay a dividend.

Floor & Decor is an Atlanta-based specialty retailer in the hard surface flooring market.

Tronair reveals guidance

Tronair announced talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $125 million seven-year first-lien term loan B that launched with a morning bank meeting, a source said.

Commitments are due on Sept. 28, the source added.

The company’s $200 million credit facility also includes a $20 million five-year revolver and a $55 million second-lien tranche that has been placed privately already.

SG Americas Securities LLC and Golub Capital are leading the deal that will be used to help fund the buyout of the company by Golden Gate Capital from Levine Leichtman Capital Partners.

Tronair is a Holland, Ohio-based designer, manufacturer and seller of ground support equipment for business, commercial and military aircraft.

Orion releases talk

Orion Engineered Carbons disclosed talk of Libor/Euribor plus 325 bps with a 0.75% floor, a 12.5 bps consent fee for existing lenders, a 12.5 bps original issue discount for new money lenders and 101 soft call protection for six months on its $302.8 million and €347 million term loan B due July 25, 2021 that launched with a morning call, a market source said.

Commitments are due at noon ET on Sept. 21, the source added.

Goldman Sachs is leading the deal that will be used to reprice existing U.S. and euro term loan B debt from Libor/Euribor plus 375 bps with a 1% floor.

Orion Engineered Carbons is a Frankfurt, Germany-based producer of carbon black.

Camping World launches

Camping World held its lender call, launching its fungible $110 million incremental first-lien term loan B due Feb. 20, 2020 with talk of Libor plus 475 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, a market source remarked.

Amortization on the loan is 5% per annum.

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

Goldman Sachs Bank USA is leading the deal that will be used to fund a dividend and for acquisitions of dealerships.

Camping World is a Lincolnshire, Ill.-based seller of RVs and supplier of RV parts, supplies and accessories.

inVentiv sets launch

inVentiv Health nailed down timing on the launch of its previously announced $1.68 billion senior secured term loan B, with the bank meeting scheduled to take place at 10 a. m. ET in New York on Thursday, according to a market source. Prior to now, timing on the deal was described as September business.

The company’s $1.93 billion credit facility also includes a $250 million asset-based revolver.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley, Barclays and Jefferies Finance LLC are leading the deal that will help fund a material equity investment in the company by Advent International, who is joining Thomas H. Lee Partners as an equal equity owner.

The investment agreement values inVentiv at $3.8 billion on a cash-free, debt-free basis subject to customary adjustments.

inVentiv repaying debt

With the equity investment, inVentiv intends to pay off all of its outstanding credit facility debt, which, as of June 30, was about $575.3 million.

Furthermore, the company will use its reasonable best efforts to commence offers to purchase and/or consent solicitations with respect to any or all of its outstanding $625 million 9% senior secured notes due 2018, $579.8 million 10%/12% junior lien PIK notes due 2018 and $376.3 million 10% senior notes due 2018.

Along with the credit facility commitment, the company has received a commitment for a $720 million senior unsecured bridge loan.

Closing is expected in the fourth quarter, subject to regulatory approval and other customary conditions.

inVentiv is a Burlington, Mass.-based provider of clinical, consulting and commercial services to the health-care industry.

Henry on deck

Henry scheduled a bank meeting for 10 a.m. ET in New York on Sept. 21 to launch its $360 million credit facility that was previously labeled broadly as September business, according to a market source.

The facility consists of a $40 million five-year revolver and a $320 million seven-year term loan B.

RBC Capital Markets LLC, Credit Suisse, Antares Capital and Nomura are leading the deal that will be used to help fund the buyout of the company by American Securities.

Henry is an El Segundo, Calif.-based developer and manufacturer of roofing products and other building envelope applications for the residential and commercial construction markets.

OrthoLite joins calendar

OrthoLite set a bank meeting for 1 p.m. ET in New York on Monday to launch a $212 million credit facility, a market source said.

The facility consists of a $12 million revolver and a $200 million term loan B, the source added.

Goldman Sachs and Antares are leading the deal that will be used to refinance existing debt and fund a dividend.

OrthoLite is an Amherst, Mass.-based supplier and manufacturer of open-cell foam insoles to branded footwear companies.

Keter deadline surfaces

In other news, the Keter Group set a commitment deadline of Sept. 26 for its €790 million credit facility (B2/B) that launched with a bank meeting in New York on Wednesday and with a bank meeting in London this past Monday, according to a market source.

As reported earlier, the facility consists of a €100 million six-year revolver and a €690 million-equivalent seven-year dollar and euro covenant-light term loan B talked at Libor/Euribor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

JPMorgan, UBS, Nomura, RBC and Bank of America Merrill Lynch are the leads on the deal, with JPMorgan left on the U.S. piece and UBS left on the euro piece.

Proceeds will be used to help fund the buyout of the company by BC Partners and PSP Investments.

Keter Group is an Israel-based provider of furniture, storage and organization solutions.

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