Citgo, Emerald Performance, iParadigms, Dave & Buster’s, Osmose break; Gemini tweaks deal

By Sara Rosenberg

New York, July 23 – Citgo Petroleum Corp. finalized pricing on its term loan B at the low end of guidance and then freed up for trading on Wednesday, and Emerald Performance Materials LLC, iParadigms Holdings LLC, Dave & Buster’s Inc. and Osmose Holdings Inc. broke as well.

In more happenings, Gemini HDPE LLC modified the original issue discount price on its term loan, and Capsugel FinanceCo SCA moved up the commitment deadline on its term loan.

Additionally, Expro Oilfield Services plc, Portillo’s Holdings LLC, MSX International and Regent Energy Group Ltd. disclosed price talk with launch.

Furthermore, International Market Centers (IMC OP LP), United Air Lines Inc. (United Continental Holdings) and NGB Home joined this week’s calendar.

Citgo firms spread, trades

Citgo Petroleum set pricing on its $650 million senior secured term loan B (B1/NA/BB+) at Libor plus 350 basis points, the tight end of the Libor plus 350 bps to 375 bps talk, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year unchanged, according to a market source.

With final terms in place, the loan made its way into the secondary market in the afternoon, with levels quoted at par bid, par ¾ offered, a trader remarked.

Deutsche Bank Securities Inc., ABN Amro Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Mizuho Securities USA Inc., Natixis and SMBC are leading the deal that will be used with $650 million of senior secured notes to refinance existing debt and fund a distribution to parent company Petroleos de Venezuela SA.

Citgo is a Houston-based refiner and marketer of transportation fuels, lubricants, petrochemicals and other industrial products.

Emerald Performance tops OIDs

Emerald Performance Materials’ credit facility also broke, with the $550 million seven-year first-lien covenant-light term loan (B1/B) quoted at par bid, par ½ offered and the $230 million eight-year second-lien covenant-light term loan (Caa1/CCC+) quoted at par bid, 101 offered, according to a trader.

The first-lien term loan is priced at Libor plus 350 bps with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

Pricing on the second-lien loan is Libor plus 675 bps with a 1% Libor floor and it was issued at a discount of 99½. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $525 million and the spread firmed at the low end of the Libor plus 350 bps to 375 bps talk, and pricing the on the second-lien loan finalized at the tight end of the Libor plus 675 bps to 700 bps talk and the discount was revised from 99.

Emerald funding buyout

Proceeds from Emerald Performance’s $855 million credit facility, which also includes $75 million revolver (B1/B), will be used to help fund its buyout by American Securities LLC from Sun Capital Partners Inc.

As a result of the recent first-lien term loan upsizing, the amount of equity being used for the buyout was downsized.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, Keybanc Capital Markets and RBC Capital Markets are leading the deal.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Emerald Performance is Cuyahoga Falls, Ohio-based manufacturer and marketer of specialty chemicals.

iParadigms hits secondary

iParadigms’ credit facility freed up for trading as well, with the $240 million seven-year first-lien covenant-light term loan (B1/B-) seen at par bid, par ½ offered and the $120 million eight-year second-lien covenant-light term loan (Caa2/CCC) seen at par bid, 101 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor and was sold at a discount of 99. This debt has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $225 million and the discount was modified from 99, and the second-lien term loan was increased from $115 million and the spread was cut from Libor plus 750 bps.

iParadigms getting revolver

In addition to the first- and second-lien term loans, iParadigm’s $376 million credit facility includes a $16 million revolver.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by Insight Venture Partners and GIC for $752 million.

iParadigms is an Oakland, Calif.-based provider of anti-plagiarism and online grading software.

Dave & Buster’s frees up

Dave & Buster’s credit facility began trading too, with the $530 million six-year covenant-light term loan B quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the B loan is Libor plus 350 bps with a step-down to Libor plus 325 bps when net leverage is 2.75 times. There is a 1% Libor floor and 101 soft call protection for six months, and it was sold at an original issue discount of 99¾.

Recently, pricing on the term loan was reduced from talk of Libor plus 375 bps to 400 bps, the step-down was added, the discount changed from 99½ and the MFN sunset provision was eliminated.

The company’s $580 million credit facility (B2/B) also includes a $50 million five-year revolver.

Jefferies Finance LLC and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt.

Dave & Buster’s is a Dallas-based owner and operator of dining and entertainment venues.

Osmose breaks

Another deal to free up was Osmose Holdings’ credit facility, with the $245 million seven-year first-lien covenant-light term loan quoted at par bid, par ½ offered, a source remarked.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at a discount of 99¾. There is 101 soft call protection for six months.

During syndication, the term loan was increased from $235 million, pricing was reduced from Libor plus 400 bps and the original issue discount was changed from 99.

The company’s $270 million credit facility (B2/B) also includes a $25 million revolver.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

Osmose is a Buffalo, N.Y.-based provider of wood preservation technology as well as utility and railroad asset management.

BWIC emerges

Also in trading, a $422 million loan and bond Bid Wanted In Competition was announced on Wednesday morning, and market players are being asked to place their bids by 11 a.m. ET on Monday, a trader said.

Some of the larger pieces of debt in the portfolio include Biomet Inc.’s term loan B-2, Chrysler Group LLC’s term loan B, Dell Inc.’s term loan C, Dunkin’ Brands Inc.’s term loan C, Evertec Inc.’s term loan A, HCA Inc.’s term loan B-5, Hologic Inc.’s 2013 tranche A term loan, Las Vegas Sands LLC’s new term loan B, Regal Cinemas’ term loans, Sinclair Television Group Inc.’s new tranche A term loan, Spectrum Brands Inc.’s tranche A term loan, US Airways Inc.’s tem loan B-2 and Vantiv’s term loan A-2.

There are about 70 issuers in the portfolio, the trader added.

Gemini HDPE tweaks OID

Back in the primary, Gemini HDPE tightened the discount on its $420 million seven-year senior secured term loan B (Ba2/B+) to 99½ from 99, while keeping pricing at Libor plus 375 bps with a 1% Libor floor and leaving the 101 soft call protection for one year intact, according to a market source.

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

Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to fund the construction and operation of a world scale, high-density polyethylene plant at the existing Ineos Battleground Manufacturing Complex in La Porte, Texas, to provide debt service during construction, and to pay related fees and expenses.

Gemini HDPE, a bimodal HDPE facility, is a 50/50 joint venture between Ineos Gemini HDPE Holding Co. LLC and Sasol Chemicals North America.

Capsugel revises deadline

Capsugel accelerated the commitment deadline on its €355 million seven-year term loan (B+) to 5 p.m. ET on Thursday from Monday, a source remarked.

The loan is talked at Euribor plus 300 bps with a 1% floor, an original issue discount of 99¾ and 101 soft call protection for six months.

UBS AG, Citigroup Global Markets Inc., KKR Capital Markets, Barclays, Deutsche Bank Securities Inc. and Mizuho Securities are leading the deal that will be used to redeem 9 7/8% senior notes due 2019 and fund a dividend.

In addition, with the term loan, the company is looking to increase its revolving credit facility to $175 million from $150 million and extend the maturity by three years, with a springing maturity to the date that is six months prior to the existing term loan maturity date to the extent the existing term loans are not repaid, refinanced or extended as of such time.

Capsugel is a Morristown, N.J.-based manufacturer of hard capsules and drug-delivery systems.

Expro sets talk

Expro Oilfield Services held its bank meeting on Wednesday morning, and with the event, price talk on its term loans that are being sold as a strip was announced, according to a market source.

The $1.16 billion covenant-light term loan B and $360 million covenant-light delayed-draw term loan are talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

The delayed-draw loan has a ticking of half the spread from days 31 to 60 and the full spread thereafter.

In addition to the term loans, the company’s $1.77 billion credit facility (Ba3/B) includes a $250 million revolver.

Expro lead banks

Goldman Sachs Bank USA, Barclays, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are leading Expro’s credit facility.

Commitments are due on Aug. 5, the source added.

Proceeds from the funded term loan will be used to refinance 8½% secured notes due 2016, an proceeds from the delayed-draw loan and from an initial public offering of American depositary shares will be used to refinance mezzanine debt.

Expro is a U.K.-based provider of well flow management services to the oil and gas industry.

Portillo’s discloses guidance

Portillo’s came out with talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $315 million seven-year first-lien term loan (B-) that launched with a call during the session, according to a market source.

Also, talk on the $100 million eight-year second-lien term loan (CCC) emerged at Libor plus 725 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

Commitments for the company’s $445 million credit facility, which also includes a $30 million revolver (B-), are due on Aug. 1.

UBS AG and Jefferies Finance LLC are leading the deal.

Portillo’s being acquired

Proceeds from Portillo’s credit facility, $100 million of holdco preferred equity owned solely by Goldman Sachs and $370 million of common equity will be used to fund its buyout by Berkshire Partners.

Originally, the second-lien term loan was expected to be sized at $140 million, but was reduced prior to launch due to the common equity provided by Berkshire.

Opco leverage is 4.6 times through the first-lien and 6 times through the second-lien.

Portillo’s is a Chicago-based restaurant chain.

MSX holds meeting

MSX International held its meeting in the morning, launching its $220 million term loan B with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor and an original issue discount of 99, a market source said.

The company’s $255 million credit facility also includes a $35 million revolver.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

MSX International is a service and technology solutions provider helping automotive and other organizations improve retail network performance, talent acquisition and management strategies.

Regent Energy pricing

Regent Energy Group launched in the afternoon its C$325 million U.S. dollar equivalent covenant-light first-lien term loan with talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, a source remarked.

As for the C$140 million U.S. dollar equivalent covenant-light second-lien term loan, talk surfaced at Libor plus 725 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source continued.

The company’s new credit facility also includes a $75 million revolver.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are leading the deal, for which commitments are due on Aug. 6, with Goldman left lead on the first-lien loan and Deutsche left lead on the second-lien loan.

Proceeds will help fund the buyout of the Nisku, Alberta-based oil recovery company by Advent International.

International Market readies

Also on the new deal front, International Market Centers scheduled a bank meeting for 10 a.m. ET on Thursday to launch a $580 million credit facility, according to market sources.

The debt consists of a $50 million revolver, a $405 million six-year first-lien term loan talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, and a $125 million seven-year second-lien term loan talked at Libor plus 675 bps to 700 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two with a special IPO equity claw for 100% of the tranche at 101 in year one, sources said.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the deal, with JPMorgan left lead on the first-lien and Deutsche Bank left lead on the second-lien.

Proceeds will be used to refinance existing mortgage debt and for general corporate purposes.

International Market Centers is an owner and operator of showroom space for the home furniture, home decor and gift industries.

United Air Lines on deck

United Air Lines set a call for 2:30 p.m. ET on Thursday to launch a $500 million seven-year term loan B, according to a market source.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt.

United is a Chicago-based airline operator.

NGB Home coming soon

NGB Home plans to hold a bank meeting on Thursday morning to launch a $315 million credit facility, according to a market source.

The facility consists of a $25 million revolver, a $200 million first-lien term loan and a $90 million second-lien term loan, the source said.

GE Capital Markets and Jefferies Finance LLC are leading the deal that will be used to help fund Nielsen Bainbridge Inc.’s acquisition of The Home Decor Cos., with the combined company renamed NGB Home.

Nielsen Bainbridge, a Kohlberg & Co. portfolio company, is an Austin, Texas-based designer, manufacturer and marketer of products for the custom and ready-made framing market.

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