Contura, Aveanna, Resolute break; Cyxtera, GEO, Cole-Parmer, Kenan, Camping World revised

By Sara Rosenberg

New York, March 13 – Contura Energy Inc.’s first-lien term loan made its way into the secondary market on Monday, and deals from Aveanna (Epic Health Services/PSA Healthcare) and Resolute Investment Managers also began trading.

Moving to the primary market, Cyxtera Technologies Inc. (Colorado Buyer Inc.) lowered spreads on its first- and second-lien term loans, and GEO Group Inc. increased the size of its term loan B and trimmed the spread as a result of massive oversubscription.

Also, Cole-Parmer Instrument Co. modified the original issue discount on its first-lien term loan, Kenan Advantage Group Inc. tightened the issue price on its add-on term loan, and Camping World Good Sam upsized its add-on term loan.

In addition, RGIS Services LLC revised the date of its bank meeting due to the expected snow storm in New York, and Infogroup Inc., BWAY Holding Co., Nexeo Solutions Holdings LLC and NN Inc. launched their new deals to investors.

Furthermore, Hargray Communications Group Inc., American Teleconferencing Services Ltd. (Premiere Global Services), Commercial Vehicle Group Inc. and Horizon Pharma Inc. joined this week’s primary calendar.

Contura starts trading

Contura Energy’s $400 million seven-year covenant-light first-lien term loan (B2/B) freed to trade on Monday, with levels seen at 99 bid, par offered, a market source said.

Pricing on the term loan is Libor plus 500 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. The loan has 101 soft call protection for one year.

Jefferies Finance LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and UBS Investment Bank are leading the deal that will be used to refinance predominantly post-emergence debt as well as various other smaller debt facilities, and for general corporate purposes.

Contura is a Bristol, Tenn.-based company with mining operations across multiple coal basins in Pennsylvania, Virginia, West Virginia and Wyoming.

Aveanna frees up

Aveanna’s credit facility began trading too, with the $240 million eight-year second-lien term loan (Caa2/CCC+) quoted at 99 bid, par offered, according to a trader.

Also, the $585 million seven-year first-lien term loan (B2/B) was quoted at 99¾ bid, par ¼ offered, another source said.

Pricing on the second-lien term loan is Libor plus 800 bps with a 1% Libor floor, and it was issued at a discount of 98.5. This tranche has call protection of 102 in year one and 101 in year two.

The first-lien term loan is priced at Libor plus 425 bps with a 1% Libor floor and was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The company’s $900 million senior secured credit facility also provides for a $75 million five-year revolver (B2/B).

Secured leverage is 4.3 times, and total leverage is 6 times.

Aveanna lead banks

Barclays, RBC Capital Markets LLC, BMO and Goldman Sachs Bank USA are leading Aveanna’s credit facility, with Barclays left lead on the first-lien debt and RBC left lead on the second-lien debt.

Proceeds will be used to help fund the buyout of Epic Health by Bain Capital Private Equity from Webster Capital, the buyout of PSA by Bain Capital, and the merger or Epic Health and PSA. As part of the transaction, the current equity holders of PSA, including its senior management team, and J.H. Whitney Capital Partners, its current majority owner, have agreed to roll over their current ownership interests into the newly combined company.

Closing is expected on Thursday.

Epic Health is a Dallas-based provider of home health-care services to medically fragile children and adults. PSA is an Atlanta-based provider of pediatric and adult home health-care services.

Resolute hits secondary

Resolute Investment Managers’ fungible $75 million add-on first-lien term loan (Ba2/BB-) due April 30, 2022 also broke for trading, with levels seen at par 7/8 bid, 101 3/8 offered, a trader remarked.

Pricing on the add-on loan is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.875, after tightening on Friday from 99.5. The add-on and the existing first-lien term loan are getting 101 soft call protection for six months.

RBC and Barclays are leading the deal that will be used to help fund the acquisition of a controlling interest of Shapiro Capital Management LLC.

As part of this transaction, existing lenders who consented to an amendment of the credit agreement will be paid a 25 bps fee at closings.

Resolute Investment, formerly known as American Beacon Advisors Inc., is an Irving, Texas-based provider of investment advisory services to institutional and retail markets. Shapiro is an Atlanta-based investment adviser.

Cyxtera flexes lower

Switching to the primary market, Cyxtera Technologies cut pricing on its $815 million seven-year covenant-light first-lien term loan (Ba3/B+) to Libor plus 300 bps from talk of Libor plus 350 bps to 375 bps and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months intact, a market source said.

Regarding the company’s $310 million eight-year covenant-light second-lien term loan (B3/CCC+), pricing was reduced to Libor plus 725 bps from talk of Libor plus 750 bps to 775 bps, the source continued. This tranche still has a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two but is callable at 101 in the first year in the event the U.S. tax code eliminates tax deductibility of interest for federal income tax.

There is a ticking fee of 50% of the drawn spread from days 46 to 60 and the full spread plus the greater of Libor and the floor thereafter.

The company’s $1,275,000,000 credit facility also includes a $150 million five-year revolver (Ba3/B+).

Cyxtera buying data centers

Proceeds from Cyxtera’s credit facility will be used to help fund the acquisition of 57 data centers from CenturyLink Inc. by a joint venture being formed by BC Partners and Medina Capital, along with Longview Asset Management, and combination of the data centers with Medina Capital’s security and data analytics portfolio.

The CenturyLink data centers are being purchased for $2.15 billion in cash, subject to offsets for capital lease obligations and various working capital and other adjustments, and CenturyLink will receive a minority stake to be valued at $150 million in the consortium’s newly formed global secure infrastructure company.

Citigroup, J.P. Morgan Securities LLC, Barclays, Credit Suisse, Jefferies, HSBC Securities (USA) Inc., Macquarie Capital (USA) Inc. and Citizens are leading the deal, with Citi the left lead on the first-lien debt and JPMorgan the left lead on the second-lien debt.

Commitments continue to be due at 5 p.m. ET on Tuesday, the source added.

Closing on the data centers acquisition is expected early in the second quarter, subject to regulatory approvals and other customary conditions.

GEO changes surface

GEO Group raised its seven-year term loan B to $800 million from $700 million and cut pricing to Libor plus 225 bps from talk of Libor plus 250 bps to 275 bps, while leaving the 0.75% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

Recommitments were due at 5 p.m. ET on Monday, the source said.

BNP Paribas Securities Corp. is leading the deal that will be used to repay an existing term loan B and to fund the acquisition of Community Education Centers for $360 million in an all-cash transaction, excluding transaction-related expenses, and, due to the upsizing, for general corporate purposes.

Closing on the acquisition is expected in the second quarter, subject to customary conditions.

GEO is a Boca Raton, Fla.-based real estate investment trust specializing in the design, financing, development and operation of correctional, detention and community re-entry facilities. Community Education Centers is a West Caldwell, N.J.-based provider of rehabilitative services for offenders in re-entry and in-prison treatment facilities as well as management services for correctional and detention facilities.

Cole-Parmer tweaks loan

Cole-Parmer Instrument tightened the original issue discount on its $410 million covenant-light first-lien term loan (B2) to 99.5 from 99, a market source remarked.

As before, pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor, and the debt has 101 soft call protection for six months.

Commitments are due at 3 p.m. ET on Tuesday, moved up from Wednesday, the source added.

The company’s $630 million credit facility also includes a $40 million revolver (B2) and a $180 million pre-placed second-lien term loan (Caa2).

Jefferies, Antares Capital and Golub are leading the deal that will be used to help fund the buyout of the company by Golden Gate Capital from GTCR.

Closing is expected this quarter.

Cole-Parmer is a Vernon Hills, Ill.-based provider of laboratory and industrial fluid handling products, instrumentation, equipment and supplies.

Kenan updates OID

Kenan Advantage Group tightened the original issue discount on its fungible add-on term loan due July 2022 (B+) to 99.75 from 99.5, according to a market source.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor.

KeyBanc Capital Markets LLC is leading the deal that will be used for general corporate purposes.

Allocations went out on Monday, the source added.

Kenan Advantage is a North Canton, Ohio-based provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets.

Camping World upsizes

Camping World increased the size of its fungible add-on first-lien term loan due November 2023 to $95 million from $80 million, according to a market source.

Pricing on the add-on term loan is Libor plus 375 bps with a 0.75% Libor floor, in line with existing first-lien term loan pricing, and the debt is still being offered at an original issue discount of 99.75.

Recommitments were due at 5 p.m. ET on Monday, the source said.

Goldman Sachs is leading the deal that will be used to fund acquisitions.

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

RGIS modifies timing

RGIS Services pushed off the bank meeting for its $495 million credit facility (B3/CCC+) to 10 a.m. ET in New York on Thursday from 10 a.m. ET in New York on Tuesday purely as a result of the expected blizzard, a market source said.

The facility consists of a $35 million five-year revolver and a $460 million six-year first-lien term loan.

Goldman Sachs, JPMorgan and Natixis are leading the deal that will be used to refinance existing debt.

RGIS is an Auburn Hills, Mich.-based provider of inventory services, data collection, insight, merchandising and optimization solutions.

Infogroup details emerge

Also on the new deal front, Infogroup held its bank meeting on Monday, launching a $250 million six-year first-lien senior secured term loan at talk of Libor plus 500 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.

The company’s $280 million credit facility (B1/B+) also includes a $30 million five-year revolver.

Commitments are due on March 27, the source said.

Goldman Sachs and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Court Square Capital Partners.

Infogroup is a Papillion, Neb.-based provider of data and data-driven marketing services.

BWAY launches loan

BWAY Holding approached lenders on its lender call with a $1.5 billion term loan (B2/B-) that is talked at Libor plus 325 bps to 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due on March 22, the source added.

Bank of America Merrill Lynch, Goldman Sachs, BMO and Citigroup are leading the deal that will be used to help fund the acquisition by BWAY’s parent company, Stone Canyon Industries LLC, of Mauser Group NV for $2.3 billion from Clayton, Dubilier & Rice.

BWAY is an Atlanta-based manufacturer of rigid metal and plastic containers. Mauser is an Oosterhout, the Netherlands-based supplier of rigid packaging products and services for industrial use.

Nexeo seeks repricing

Nexeo Solutions launched on its lender call a repricing of its $652 million covenant-light term loan B talked at Libor plus 375 bps to 400 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Thursday, the source said.

Bank of America Merrill Lynch is leading the deal that will reprice the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Nexeo is a Houston-based distributor of chemicals and plastics and provider of environmental services.

NN holds call

NN hosted a lender call, launching a $300 million four-year incremental term loan talked at Libor plus 375 bps with a 0% Libor floor and an original issue discount of 99.5, a market source remarked.

SunTrust Robinson Humphrey is leading the deal that will be used to refinance notes.

NN is a Johnson City, Tenn.-based manufacturer and supplier of high precision metal bearing components, industrial plastic and rubber products and precision metal components.

Hargray readies deal

Hargray set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $480 million credit facility, according to a market source.

The facility consists of a $30 million revolver and a $450 million seven-year covenant-light term loan B that includes a 1% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on March 24.

Credit Suisse, SunTrust Robinson Humphrey and Antares Holdings are leading the deal that will be used to fund the acquisition of the company by Tom Pritzker Family Business Interests, Redwood Capital Investments, Stephens Capital Partners and management.

Closing on the acquisition is expected in the third quarter.

Hargray is a Hilton Head Island, S.C.-based broadband communications and entertainment provider.

American Teleconferencing call

American Teleconferencing Services scheduled a lender call for 10:30 a.m. ET on Wednesday to launch $210 million of add-on term loans via an amendment, according to a market source.

The debt consists of a $140 million add-on first-lien term loan due December 2021 priced at Libor plus 650 bps with a 1% Libor floor and a $70 million add-on second-lien term loan due June 2022 priced at Libor plus 950 bps with a 1% Libor floor, both in line with existing term debt pricing, the source said. Original issue discount talk on the add-on term loans is not yet available.

Included in the first-lien term loan is 101 soft call protection for six months, and the add-on second-lien term loan will have the same call protection as the existing loan, which is 102, stepping down to 101 in November.

Commitments are due at noon ET on March 22, the source added.

Deutsche Bank Securities Inc., Barclays, Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey are leading the first-lien loan, and Eaglehill is leading the second-lien loan.

Proceeds will be used to repay a revolver draw and seller note and to fund a dividend to shareholders.

American Teleconferencing is an Atlanta-based provider of audio conferencing, web and video collaboration solutions for businesses.

Commercial Vehicle plans loan

Commercial Vehicle Group will hold a lender meeting at 10 a.m. ET on Thursday to launch a $175 million term loan B (B2/B), a market source remarked.

Bank of America Merrill Lynch is leading the deal that will be used with about $60 million of cash from the balance sheet to refinance $235 million of 7 7/8% notes due April 2019.

Closing is expected after the redemption premium on the notes steps down to zero in April.

Along with the new term loan, the company plans to upsize its ABL facility to $65 million, a news release added.

Commercial Vehicle Group is a New Albany, Ohio-based supplier of cab-related products and systems for the commercial vehicle market.

Horizon Pharma on deck

Horizon Pharma scheduled a lender call for 11 a.m. ET on Tuesday to launch a new loan deal to current and prospective lenders, a market source said.

Citigroup is leading the transaction.

Horizon Pharma is a Dublin-based biopharmaceutical company.

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