Platform, CCC Information, Unifrax, Installed Building, Sterigenics, NXT, Amneal break

By Sara Rosenberg

New York, March 31 – Platform Specialty Products Corp. (MacDermid Inc.) reduced the size of its U.S. term loan B-6 in favor of a larger euro term loan C-5 and finalized the spreads on both tranches at the low end of guidance, and then it freed up for trading on Friday.

A number of other deals also broke during the session, including CCC Information Services Inc., Unifrax Corp., Installed Building Products Inc., Sterigenics-Nordion Holdings LLC, NXT Capital Inc. and Amneal Pharmaceuticals LLC.

Returning to the primary market, Ultra Resources Inc. upsized its term loan, Micro Focus International plc released structure, talk and timing on its proposed loan transaction, and Forterra Finance LLC, Sequa Corp., Air Methods Corp., Cable One Inc. and A Wireless surfaced with new deal plans.

Platform revised, trades

Platform Specialty trimmed its term loan B-6 due June 2023 to $1,231,000,000 from $1,317,000,000 and set pricing at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, according to a market source.

Additionally, the company lifted its term loan C-5 due June 2023 to €650 million from €575 million and firmed pricing at Euribor plus 275 bps, the tight side of the Euribor plus 275 bps to 300 bps talk, the source said.

As before, the term loan B-6 has a 1% Libor floor, the term loan C-5 still has a 0.75% floor, and both loans have a par issue price and 101 soft call protection for six months.

With final terms in place, the debt emerged in the secondary market on Friday, and the term loan B-6 was quoted at par 1/8 bid, par 5/8 offered, a trader added.

Credit Suisse Securities (USA) LLC is leading the term loan B-6, and HSBC is leading the term loan C-5.

Proceeds will be used to refinance an existing $1,471,000,000 term loan B-4 and an existing €432 million term loan C-3.

Platform is a West Palm Beach, Fla.-based producer of high-technology specialty chemicals and a provider of technical services.

CCC hits secondary

CCC Information Services’ credit facilities also freed up, with the $1 billion seven-year covenant-light first-lien term loan (B2/B) seen at par ¼ bid, par ¾ offered and the $375 million eight-year covenant-light second-lien term loan (Caa2/CCC) seen at par ½ bid, a market source said.

Pricing on the first-lien term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 675 bps with a 1% Libor floor, and was issued at a discount of 99.25. This tranche has hard call protection of 102 in year one and 101 in year two.

On Thursday, the first-lien term loan was upsized from $925 million, pricing was trimmed from talk of Libor plus 325 bps to 350 bps and the discount was modified from 99.5, and pricing on the second-lien term loan was reduced from talk of Libor plus 700 bps to 725 bps and the discount was revised from 99.

The company’s $1,475,000,000 senior secured deal also includes a $100 million five-year revolver (B2/B).

CCC being acquired

Proceeds from CCC Information’s credit facilities will be used to help fund its buyout by Advent International from Leonard Green Partners and Texas Pacific Group and to refinance existing debt.

Due to the recent first-lien term loan upsizing, the expected $30 million revolver at close was eliminated and the equity capital was decreased slightly.

Jefferies Finance LLC and Nomura are leading the transaction, with Jefferies left lead on the first-lien debt and Nomura left lead on the second-lien loan.

Closing on the buyout is expected early in the second quarter.

CCC Information is a Chicago-based provider of mission-critical infrastructure to the automotive insurance and claim industry through its integrated software, data, analytics and workflow management systems.

Unifrax starts trading

Another deal to break was Unifrax, with its $460 million U.S. seven-year senior secured term loan B quoted at par ½ bid, 101¼ offered, a trader remarked.

Pricing on the U.S. term loan is Libor plus 375 bps with a step-down to Libor plus 350 bps when first-lien net leverage is less than 4 times and a 1% Libor floor. The debt was sold at an original issue discount of 99.75 and includes 101 soft call protection for six months.

The company is also getting a €187 million seven-year senior secured term loan B priced at Euribor plus 400 bps with a step-down to Euribor plus 375 bps when first-lien net leverage is less than 4 times and a 0% floor. This tranche was issued at 99.75 and has 101 soft call protection for six months as well.

On Thursday, pricing on the U.S. loan was cut from Libor plus 400 bps, the step-downs were added to both term loans, the discounts on both term loans were tightened from 99.5 and the 12 month MFN sunset was removed.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, KeyBanc Capital Markets and ING are leading the deal (B2/B) that is expected to close on Tuesday and will be used to refinance existing debt.

Unifrax is a Tonawanda, N.Y.-based specialty materials platform focused on providing innovative thermal management, filtration and energy solutions for a variety of end markets and applications.

Installed Building tops OID

Installed Building Products’ credit facility broke for trading too, with the $300 million seven-year covenant-light term loan B (B1/BB) quoted at 99¾ bid, par ¾ offered on the break and then it moved up to par ¾ bid, 101¼ offered, according to a trader.

Pricing on the term loan B is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

On Wednesday, pricing on the term loan B was lowered from talk of Libor plus 325 bps to 350 bps and the discount firmed at the tight end of the 99 to 99.5 talk.

The company’s $400 million senior secured deal also includes a $100 million five-year ABL revolver.

RBC Capital Markets, UBS Investment Bank and Jefferies Finance LLC are leading the deal that will be used to refinance about $96 million of term loan borrowings and about $125 million outstanding under a delayed-draw term loan and to add cash to the balance sheet.

Net leverage is 2.1 times.

Closing is expected on April 10.

Installed Building Products is a Columbus, Ohio-based installer of insulation products.

Sterigenics frees up

Sterigenics’ $120 million incremental term loan and repriced $1,086,250,000 term loan began trading as well, with levels quoted at par bid, par ¼ offered, a market source said.

Pricing on the incremental loan and repriced loan is Libor plus 300 bps with a 1% Libor floor, and the debt includes 101 soft call protection for six months. The incremental loan was sold at an original issue discount of 99.75 and the repricing was issued at par.

The repricing was launched after syndication wrapped successfully on the incremental loan, and as a result, the incremental loan was revised to a fungible tranche.

Jefferies Finance LLC is leading the deal.

Proceeds from the incremental term loan will be used to refinance senior secured notes, and the repricing will take the existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Sterigenics is a Deerfield, Ill.-based provider of contract sterilization, gamma technologies and medical isotopes.

NXT Capital breaks

NXT Capital’s fungible $75 million add-on term loan B due November 2022 freed to trade, with levels quoted at 101 bid, 101½ offered, according to a trader.

The add-on term loan is priced at Libor plus 450 bps with a 1% Libor floor, in line with existing term loan B pricing, and was issued at par. The term loan B debt has 101 soft call protection that expires in November.

RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund a dividend.

NXT is a Chicago-based provider of structured financing solutions.

Amneal above par

Amneal Pharmaceuticals’ $250 million add-on term loan began trading too, with levels seen at par ¼ bid, par ¾ offered, a market source said.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and is was sold at an original issue discount of 99.75, after tightening during syndication from 99.509.

J.P. Morgan Securities LLC is leading the deal that will be used to fund a dividend and for general corporate purposes.

Amneal Pharmaceuticals is a Bridgewater, N.J.-based manufacturer of generic pharmaceuticals.

Ultra ups loan size

Back in the primary market, Ultra Resources increased its seven-year first-lien RBL term loan to $800 million from $600 million and the borrowing base to $1.2 billion from $1 billion, a market source remarked.

As before, the term loan is priced at Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99, and has 101 soft call protection for six months.

Credit agreement comments are due at noon ET on Monday, the source added.

Barclays, Goldman Sachs Bank USA and BMO Capital Markets are leading the deal that will be used with an up to $400 million revolver, $1.2 billion of senior notes, downsized from $1.4 billion with the term loan upsizing, and $580 million of proceeds from a rights offering for general corporate purposes and to fund the repayment of certain claims under an approved reorganization plan.

Secured leverage is 1.2 times, net secured leverage is 0.6 times, total leverage is 3 times and net total leverage is 2.4 times.

Ultra Resources is a Houston-based explorer, producer and distributor of oil and natural gas.

Micro Focus details emerge

Micro Focus scheduled a New York lender presentation for 11:30 a.m. ET on Tuesday and a London lender presentation for 12:30 p.m. UK time on Thursday to launch $5 billion-equivalent in term loans, according to people familiar with the situation.

The term loans consist of a $412 million covenant-light term loan C due November 2019 talked at Libor plus 225 bps with a 0% Libor floor and a par issue price, a $1,103,000,000 covenant-light term loan B-2 due November 2021 talked at Libor plus 250 bps with a 0% Libor floor and a par issue price, and a new $3,485,000,000-equivalent seven-year term loan B-3 talked at Libor/Euribor plus 300 bps to 325 bps with a 0% floor and an original issue discount of 99.5, people said.

Included in the term loan B-3 is a minimum tranche size of $500 million-equivalent in either U.S. dollars or euros.

Also, as part of its financing plans, the company intends to get a new $500 million revolver.

Micro Focus lead banks

J.P. Morgan Securities LLC, Barclays, HSBC, Natwest Markets and Bank of America Merrill Lynch are leading Micro Focus’ credit facilities, with JPMorgan the left lead.

Commitments are due at 5 p.m. ET on April 18, people added.

The credit facilities will be used to amend and reprice an existing term loan C and an existing term loan B-2, to fund the pre-completion cash payment of $2.5 billion for the acquisition of Hewlett Packard Enterprise’s software business segment (HPE Software), to fund the return value of between $400 million and $500 million to Micro Focus’ shareholders, and for general corporate and working capital purposes.

Micro Focus is a Newbury, U.K.-based enterprise software company. HPE Software is an infrastructure software provider.

Forterra readies deal

Forterra will hold a lender call at 9 a.m. ET on Monday to launch a $200 million incremental first-lien term loan due October 2023 and a repricing of its existing $1,047,000,000 covenant-light first-lien term loan due October 2023, a market source remarked.

The incremental term loan and repricing are talked at Libor plus 300 bps with a 1% Libor floor and 101 soft call protection for six months, the source continued, adding that the incremental loan is offered at an original issue discount of 99.5 and the repricing is offered at par.

Commitments are due at 5 p.m. ET on April 7.

Credit Suisse Securities (USA) LLC is leading the deal (B1/B+).

The incremental loan will be used to repay existing ABL facility borrowings, and the repricing will take the existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Forterra is an Irving, Texas-based manufacturer of drainage and water transmission pipe and products.

Sequa on deck

Sequa scheduled a bank meeting for noon ET on Monday to launch $1,085,000,000 in senior secured credit facilities, according to a market source.

The facilities consist of a $135 million revolver, a $600 million first-lien term loan B and a $350 million second-lien term loan, the source said.

Barclays is the left lead on the deal that will be used for a recapitalization/refinancing of existing debt.

The company is also contemplating issuing $300 million in first-lien bonds, the source added.

Sequa is a Palm Beach Gardens, Fla.-based aerospace and diversified industrial company.

Air Methods timing

Air Methods surfaced with plans to hold a bank meeting on Tuesday to launch its up to $1,475,000,000 in credit facilities, a market source remarked.

The facilities consist of a $125 million revolver and an up to $1.35 billion term loan B, the source added.

RBC Capital Markets, Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used with equity to help fund the buyout of the company by American Securities LLC for $43.00 per share in cash in a transaction with a total enterprise value of about $2.5 billion, including net debt.

Closing is expected by the end of the second quarter, subject to the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the satisfaction of a minimum tender condition.

Air Methods is an Englewood, Colo.-based provider of air medical transportation and air tourism.

Cable One coming soon

Cable One scheduled a lender call for Monday to launch its previously announced $350 million incremental seven-year term loan B (BBB-), according to a market source.

The term loan B is talked at Libor plus 250 bps to 275 bps with a 0% Libor floor and an original issue discount of 99.5, the source said.

Based on filings with the Securities and Exchange Commission, the company also plans on getting a $300 million incremental five-year term loan A (BBB-)

J.P. Morgan Securities LLC is leading the deal that will be used with $105 million in cash on hand to fund the acquisition of NewWave Communications for $735 million in cash from GTCR LLC.

Pro forma net leverage is 2.9 times before cost synergies and 2.7 times after cost synergies.

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

Cable One is a Phoenix-based cable company. NewWave is a Sikeston, Mo.-based cable operator.

A Wireless joins calendar

A Wireless set a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch new senior secured credit facilities, a market source said.

UBS Investment Bank, Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc. and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt.

A Wireless is an exclusive national authorized retailer for Verizon Wireless with corporate offices in Greenville, N.C. and Eden Prairie, Minn.

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