Ryan, Electrical Components break; Party City, Prolamina, 888, Navistar, Graton updated

By Sara Rosenberg

New York, Aug. 5 – Deals from Ryan LLC and Electrical Components International Inc. hit the secondary market during Wednesday’s session, and Avaya Inc.’s term loans were lower on the back of earnings being released.

Moving to the primary market, Party City Holdings Inc. set pricing on its term loan at the low end of guidance and tightened the original issue discount, and Prolamina Corp./Ampac Holdings LLC (Intermediate Holdco (US)) modified first- and second-lien term loan sizes, firmed spreads at the high side of talk and adjusted the issue price on the second-lien tranche.

Also, 888 Holdings Ltd. plc raised pricing on its U.S. dollar and euro term loan and modified original issue discount guidance, Navistar International Corp. widened the spread and issue price on its term loan while also sweetening call premiums, and the Graton Economic Development Authority cut pricing on its term loan.

Furthermore, Kissner Milling Co. Ltd., Owens-Brockway Glass Container Inc. (Owens-Illinois Inc.) and Osmose Holdings disclosed price talk with launch, and National Veterinary Associates (NVA Holdings Inc.) joined this week’s calendar.

Ryan frees up

Ryan’s credit facility also began trading, with the $250 million five-year term loan seen at 98¾ bid, 99¾ offered and then it moved up to 99 bid, par offered, a trader remarked.

Pricing on the term loan is Libor plus 575 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for one year.

During syndication, the spread on the term loan firmed at the wide end of the Libor plus 550 bps to 575 bps talk.

The company’s $300 million credit facility (B2/B) also includes a $50 million revolver.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and add cash to the balance sheet.

Ryan is a Dallas-based provider of tax services.

Electrical sets OID, breaks

Electrical Components finalized the original issue discount on its $50 million add-on term loan B due May 2021 at 99.75, the tight end of the 99.5 to 99.75 guidance, a market source said.

The add-on term loan pricing matches existing term loan B pricing at Libor plus 475 bps with a step-down to Libor plus 450 bps when total net leverage is less than 3.5 times and a 1% Libor floor.

After terms firmed up, the add-on term loan began trading, with levels quoted at par bid, 100 3/8 offered, a trader added.

Bank of America Merrill Lynch is leading the deal that will be used to fund a dividend.

Electrical Components is a St. Louis-based manufacturer of wire harnesses and value-added assembly services for consumer appliance and specialty-industrial applications.

Avaya bid softens

In more trading news, Avaya’s term loans weakened as investors continued to react to disappointing third fiscal quarter results that were announced late in the day Tuesday, according to traders.

One trader had the term loan B-3 quoted at 96½ bid, 97½ offered, down from 98 bid, 99 offered, the term loan B-6 quoted at 97¼ bid, 98¼ offered, down from 98¼ bid, 98¾ offered, and the term loan B-7 quoted at 90¾ bid, 91¾ offered, down from 92½ bid, 93½ offered.

A second trader, meanwhile, had the term loan B-3 quoted at 97 bid, 98½ offered, versus 97½ bid, 98½ offered at the end of the day on Tuesday, the term loan B-6 quoted at 97¼ bid, 98¾ offered, compared to prior levels of 97¾ bid, 98¾ offered, and the term loan B-7 quoted at 91½ bid, 93½ offered, down from 92 bid, 94 offered.

For the quarter, Avaya reported revenue of $999 million, down from $1.05 billion in the third quarter of fiscal 2014, operating income was $84 million, down from $48 million in the previous year, and adjusted EBITDA was $207 million, down from $223 million last year.

Avaya is a Santa Clara, Calif.-based provider of business collaboration and communications services.

Party City updates terms

Switching to the primary, Party City firmed pricing on its $1.34 billion seven-year covenant-light term loan B (B1/B) at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps, changed the original issue discount to 99.75 from 99.5 and removed the MFN sunset, according to a market source.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

With the term loan, the company plans on getting a $540 million asset-based revolver.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Mizuho, Morgan Stanley Senior Funding Inc., MUFG, Sumitomo and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt, including ABL borrowings, a $1,094,000,000 term loan and a portion of the company’s 8 7/8% notes.

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery.

Prolamina/Ampac restructures

Prolamina/Ampac raised its seven-year first-lien term loan to $428 million from $400 million, set pricing at Libor plus 400 bps, the wide end of the Libor plus 375 bps to 400 bps talk, and extended the 101 soft call protection to one year from six months, a market source said. This tranche still has a 1% Libor floor and an original issue discount of 99.

Regarding the eight-year second-lien term loan, it was downsized to $90 million from $110 million, the spread firmed at Libor plus 825 bps, the high end of the Libor plus 800 bps to 825 bps talk, and the discount widened to 98 from talk of 98.5 to 99, the source continued. The debt still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

In addition, the MFN sunset provision was removed from the transaction.

The company’s now $568 million credit facility also includes a $50 million five-year revolver.

RBC Capital Markets LLC is leading the deal that is targeted to allocate on Thursday.

Proceeds will be used to fund the acquisition of Ampac by Wellspring Capital Management LLC and combination with Wellspring’s portfolio company Prolamina, to create a flexible packaging company with 16 global manufacturing facilities serving over 4,900 customers.

888 revises deal

888 Holdings lifted pricing on its $600 million-equivalent U.S. dollar and euro covenant-light six-year term loan to Libor/Euribor plus 400 bps from talk of Libor/Euribor plus 325 bps to 350 bps and adjusted original issue discount talk to 99 to 99.5 from just 99.5, according to a market source.

In addition, the ticking fee on the term loan was updated to half the margin for days 16 through 45 and the full margin plus the floor thereafter, the source said.

As before, the term loan has a 1% floor and 101 soft call protection for six months, and the expectation is that the U.S. piece of the tranche will be greater than or equal to $350 million.

The company’s $650 million-equivalent credit facility (Ba3/B+) also includes a $50 million five-year multi-currency revolver.

Commitments were due by 5 p.m. ET on Wednesday, the source added.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used to help fund the £898.3 million acquisition of bwin.party digital entertainment plc, under which bwin.party shareholders will get 39.45 pence in cash and 0.404 in new 888 shares.

888 and bwin.party are Gibraltar-based online gaming companies.

Navistar changes emerge

Navistar increased pricing on its $1.04 billion five-year senior secured term loan (Ba3/B-/B) to Libor plus 550 bps from talk of Libor plus 475 bps to 500 bps, moved the original issue discount to 98.5 from 99, and revised the call protection to a hard call of 101 for two years from a soft call of 101 for six months, a market source said.

The term loan still has a 1% Libor floor.

Commitments were due at 5 p.m. ET on Wednesday, the source added.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the loan that will be used to refinance an existing $697.5 million senior secured term loan due August 2017 and provide additional liquidity.

Navistar is a Lisle, Ill.-based manufacturer and seller of commercial and military trucks, buses, and diesel engines, and a provider of service parts for trucks and trailers.

Graton cuts spread

Graton Economic Development Authority lowered pricing on its $225 million seven-year term loan B (B2) to Libor plus 375 bps from talk of Libor plus 400 bps to 425 bps, while leaving the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for one year intact, according to a market source.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, U.S. Bank NA, Capital One and Fifth Third Bank are leading the deal that will be used to fund a tender offer expiring Aug. 31 for 9 5/8% senior secured notes due Sept. 1, 2019.

Graton is a Rohnert Park, Calif., authority formed to develop, construct and operate all gaming and related businesses of the Graton Rancheria Tribe, including the Graton Resort & Casino in Sonoma County.

Kissner releases talk

Also in the primary, Kissner Milling held its bank meeting on Wednesday morning, launching its $425 million seven-year first-lien covenant-light term loan (B3/B) with talk of Libor plus 425 bps to 450 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 $475 million credit facility also includes a $50 million five-year ABL revolver.

Commitments are due on Aug. 19, the source said.

Barclays, Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal that will be used to fund the acquisition of BSC Holdings Inc., to refinance 7¼% senior secured notes due 2019 and to fund a shareholder distribution.

Net first-lien leverage and net total leverage is 3.9 times.

Kissner is an Ontario-based producer and distributor of bulk rock salt and packaged specialty deicing products.

Owens-Brockway guidance

Owens-Brockway came out with talk of Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $750 million seven-year covenant-light term loan B that launched with a morning bank meeting, a source remarked.

The company is also getting a $500 million term loan A due April 2020 talked at Libor plus 175 bps with a 25 bps upfront fee, the source continued.

Commitments are due at noon ET on Aug. 13.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Scotiabank, Barclays, Rabobank and HSBC Securities (USA) Inc. are leading the $1.25 billion in term loans (BBB) that will help fund the roughly $2.15 billion acquisition of Vitro, SAB de CV’s food and beverage glass container business.

Closing is subject to approval by Vitro’s shareholders and customary regulatory approvals.

Owens-Brockway is a Perrysburg, Ohio-based glass container manufacturer.

Osmose Holdings launches

Osmose Holdings held its morning bank meeting, and with the event, price talk on its first-and second-lien term loans was announced, according to a market source.

The $275 million seven-year first-lien covenant-light term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the $115 million eight-year second-lien covenant-light term loan is talked at Libor plus 775 bps to 800 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.

The company’s $435 million credit facility also includes a $45 million five-year revolver.

Commitments are due on Aug. 14, the source added.

Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Kohlberg & Co.

Osmose is a Tyrone, Ga.-based service provider safeguarding utility infrastructure.

National Veterinary on deck

National Veterinary Associates surfaced with plans to hold a lender call on Thursday to launch a fungible $75 million add-on covenant-light term loan (B1/B) due Aug. 14, 2021 that is split between a $50 million funded tranche and a $25 million delayed-draw tranche, a market source said.

Pricing on the add-on loan is Libor plus 375 bps with a 1% Libor floor, in line with existing term loan pricing, and an original issue discount that is still to be determined, the source continued.

Bank of America Merrill Lynch, Jefferies Finance LLC and Nomura are leading the deal.

Proceeds will be used for acquisition financing and general corporate purposes.

National Veterinary Associates is an Agoura Hills, Calif.-based owner of independent freestanding veterinary hospitals.

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