Reynolds, Grifols break; Atotech, Samsonite, Milacron update deals; V.Group revises deadline

By Sara Rosenberg

New York, Jan. 24 – Reynolds Group Holdings Inc. finalized the spread on its U.S. term loan repricing at the wide end of guidance and then freed up for trading on Tuesday, and Grifols made its way into the secondary market as well.

In more happenings, Atotech BV tightened the spread and original issue discount on its term loan B debt, Samsonite International SA set pricing on its term loan B at the low end of talk, Milacron LLC firmed pricing on its term loan at the low end of talk and revised the issue price, and V.Group accelerated the commitment deadline on its term loan B.

Also, JBS USA Lux SA, Apple Leisure Group, Hyland Software Inc., RadNet Management Inc., KinderCare Education LLC (Kuehg Corp.), UFC Holdings LLC, Ascensus Inc., Victory Capital Operating LLC, Booz Allen Hamilton Inc. and Printpack Inc. revealed talk with launch.

In addition, Change Healthcare, Milk Specialties, Harland Clarke Holdings Corp., National Vision Inc. and Infor joined this week’s calendar.

Reynolds updated, trades

Reynolds Group set pricing on its $3,315,000,000 first-lien term loan due February 2023 at Libor plus 300 basis points, the high end of the Libor plus 275 bps to 300 bps talk, and left pricing on its €249 million first-lien term loan due February 2023 in line with talk at Euribor plus 350 bps, according to a market source.

Both tranches still have a 25 bps step-down at B2/B corporate ratings, no floor, a par issue price and 101 soft call protection for six months.

With final terms in place, the U.S. term loan broke for trading on Tuesday, and levels were quoted at par ¼ bid, par ½ offered, a trader added.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal (B2/B+) that will be used to reprice an existing U.S. term loan down from Libor plus 325 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 375 bps with no floor.

Reynolds Group, an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products, expects to close on the repricing in February.

Grifols tops OID

Grifols’ $3 billion eight-year term loan B also began trading, with levels quoted at par bid, par ½ offered on the break and then it moved up to par 5/8 bid, par 7/8 offered, a trader said.

Pricing on the term loan B is Libor plus 225 bps with no Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan B was reduced from Libor plus 250 bps, and the 18-month MFN sunset was removed.

The company’s $6.3 billion credit facility (Ba2) also includes a $300 million six-year revolver and a $3 billion six-year term loan A, both talked at Libor plus 150 bps to 175 bps. A $650 million euro-equivalent carve-out was added to the term loan A during syndication.

Grifols lead banks

Nomura, Bank of America Merrill Lynch, Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are leading Grifols’ credit facility, with Nomura left on the term loan B and Bank of America left on the revolver and term loan A.

Proceeds will be used with cash on the balance sheet to fund the acquisition of the Nucleic Acid Testing donor screening unit from Hologic for $1.85 billion and to refinance existing debt.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Grifols is a Sant Cugat del Valles, Barcelona-based health care company.

Atotech flexes lower

Over in the primary market, Atotech trimmed pricing on its $1.4 billion in senior secured covenant-light term loan debt to Libor plus 300 bps from Libor plus 350 bps and moved the original issue discount to 99.75 from 99, a market source said.

The term debt, split between a $900 million term loan B-1 and a $500 million term loan B-2 to be allocated to Bank of China, still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $1.65 billion credit facility (B+) also includes a $250 million revolver.

Recommitments were due at 12:30 p.m. ET on Tuesday, the source added.

Barclays, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Nomura, RBC Capital Markets LLC and Bank of China are leading the deal that will be used with equity to fund the buyout of the company by the Carlyle Group from Total for $3.2 billion.

Net secured leverage is 4.4 times and net total leverage is 5.8 times.

Atotech is a manufacturer of specialty plating chemicals and equipment.

Samsonite firms spread

Samsonite finalized pricing on its $673,312,500 term loan B (Ba2/BBB-) due Aug. 1, 2023 at Libor plus 225 basis points, the low end of the Libor plus 225 bps to 250 bps talk, a market source said.

As before, the term loan has no Libor floor, a par issue price and 101 soft call protection for six months.

Consents/commitments were due at 2 p.m. ET on Tuesday, the source added.

Morgan Stanley Senior Funding Inc., HSBC Bank USA, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and MUFG are leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 0.75% Libor floor.

Samsonite is a Hong Kong-based manufacturer of bags and luggage.

Milacron reworked

Milacron set pricing on its $947 million upsized and extended term loan B (B2/B) at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, outlined a step-down to Libor plus 275 bps when leverage is less than 3.5 times, and changed the original issue discount on the new money portion to 99.625 from 99.5, according to a market source.

The term loan still has no Libor floor and 101 soft call protection for six months.

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

Bank of America Merrill Lynch is the left lead bank on the deal.

Proceeds from the upsize will be used with cash on hand to repay all or a portion of the company’s $465 million 7¾% senior notes due 2021 and to pay fees and expenses associated with the refinancing transactions.

As of Sept. 30, the company had $482 million outstanding under its term loan due September 2020.

Milacron is a Cincinnati-based provider of plastics processing technologies and industrial fluids.

V.Group moves deadline

V.Group accelerated the commitment deadline on its $495 million seven-year senior secured term loan B to the close of business on Thursday from Jan. 31, a market source remarked.

The term loan is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $552.5 million credit facility (B1/B) also includes a $57.5 million revolver.

Goldman Sachs Bank USA, HSBC Securities (USA) Inc., Citigroup Global Markets Inc., RBS and RBC Capital Markets LLC are leading the deal that will be used to help fund the acquisition of a controlling stake in the company by Advent International from Omers Private Equity.

V.Group is a London-based marine and offshore vessel management and support services provider.

JBS discloses talk

Also in the primary market, JBS USA held its lender call at 10 a.m. ET on Tuesday, launching a $2.09 billion term loan B due Oct. 30, 2022 at talk of Libor plus 275 bps with a 0.75% 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 Friday, the source said.

Barclays is leading the deal that will be used to refinance existing term loan B debt due in 2018, 2020 and 2022 into one term loan B tranche.

Secured leverage is 1.8 times and total leverage is 4.4 times.

JBS is a Greeley, Colo.-based animal protein products processing company.

Apple Leisure floats terms

Apple Leisure Group, a Philadelphia-based hospitality company, disclosed price talk on its $600 million seven-year covenant-light first-lien term loan (B2) and $225 million eight-year covenant-light second-lien term loan (Caa2) in connection with its bank meeting, according to a market source.

The first-lien term loan is talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 850 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $950 million credit facility also includes a $125 million revolver (B2).

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

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by KKR and KSL Capital Partners from Bain Capital Private Equity.

Closing is expected this quarter, subject to customary regulatory approvals.

Hyland details emerge

Hyland Software held its lender call in the afternoon, and a few hours before the event kicked off, it was disclosed that the company would be launching to lenders a $155 million incremental first-lien term loan due July 2022 and a repricing of its existing $616 million covenant-light first-lien term loan due July 2022, according to a market source.

The term debt is talked at Libor plus 325 bps to 350 bps with a 25 bps step-down at 3.5 times first-lien leverage, a 0.75% Libor floor and 101 soft call protection for six months, the source said.

Original issue discount talk on the incremental loan is 99.5, and the repricing is offered at par.

Commitments are due at 5 p.m. ET on Monday, the source added.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal.

The incremental loan will be used to repay an existing second-lien term loan, and the repricing will take the existing first-lien term loan down from Libor plus 375 bps with a 1% Libor floor.

Hyland is a Westlake, Ohio-based enterprise content-management software developer.

RadNet guidance

RadNet Management launched on its call the repricing of its existing $479 million term loan B due June 30, 2023 at talk of Libor plus 325 bps with a 1% 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 Friday, the source said.

Barclays is leading the deal that will reprice the existing term loan down from Libor plus 375 bps with a 1% Libor floor.

RadNet is a Los Angeles-based owner and operator of outpatient diagnostic imaging centers.

KinderCare seeks tack-on

KinderCare Education held a lender call at 3 p.m. ET to launch a fungible $200 million tack-on first-lien term loan due Aug. 13, 2022 talked with an original issue discount of 99.5, according to a market source.

Pricing on the tack-on term loan is Libor plus 425 bps with a 1% Libor floor, and the debt has 101 soft call protection through April 18, 2017, which all matches the existing term loan, the source said.

Commitments are due at 5 p.m. ET on Feb. 1.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay an existing second-lien term loan at 102.

Lenders are being offered a 5 bps amendment consent fee, the source added.

KinderCare, formerly known as Knowledge Universe, is a Portland, Ore.-based provider of early childhood care and education services.

UFC repricing

UFC Holdings came out with talk of Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its first-lien term loan repricing that launched with a call during the session, a market source remarked.

Commitments are due on Friday, the source added.

KKR Capital Markets LLC is leading the deal that will reprice the existing first-lien term loan down from Libor plus 400 bps with a 1% Libor floor.

At closing last year, the first-lien term loan was sized at $1,375,000,000.

UFC is a Las Vegas-based sports brand and pay-per-view event provider.

Ascensus holds call

Ascensus surfaced in the morning with plans to host a lender call at 3:30 p.m. ET on Tuesday to launch a repricing of its $421 million first-lien term loan due December 2022 that is talked at plus 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Jan. 31, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will reprice the existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Ascensus is a Dresher, Pa.-based service provider of retirement and college savings plans.

Victory comes to market

Victory Capital held a lender call on Tuesday to launch a $100 million add-on term loan that is talked at Libor plus 750 bps with a 1% Libor floor and an original issue discount of 99.75 to par, a market source remarked.

RBC Capital Markets is leading the deal, which will be used to fund a dividend.

The company will need to amend its existing credit facility to allow for the one-time dividend, and lenders are being offered a 25 bps amendment fee, the source added.

Consents to the amendment are due on Jan. 31, and commitments to the add-on term loan are due on Feb. 2.

Including the add-on, the company’s term loan will total $539 million.

Victory Capital is a Brooklyn, Ohio-based asset management firm.

Booz Allen talk

Booz Allen released talk of Libor plus 225 bps with no Libor floor and 101 soft call protection for six months on its term loan B repricing that launched with an afternoon call, according to a market source.

Commitments are due at 5 p.m. ET on Jan. 31, the source said.

Bank of America Merrill Lynch is leading the deal that will reprice the existing term loan down from Libor plus 275 bps with no Libor floor.

Booz Allen Hamilton is a McLean, Va.-based provider of management and technology consulting services, and engineering services to governments, corporations and not-for-profit organizations.

Printpack launches

Printpack held a lender call, launching a repricing of its $274.3 million term loan B due 2023 at talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

J.P. Morgan Securities LLC is leading the deal that will reprice the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Printpack is an Atlanta-based manufacturer of flexible and specialty rigid packaging.

Change Healthcare coming soon

Change Healthcare scheduled a bank meeting for 10 a.m. ET on Wednesday to launch a $4,865,000,000 seven-year covenant-light term loan B (B+), according to a market source.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and to help fund the creation of the company through the merger of Change Healthcare Holdings Inc. and the majority of McKesson Technology Solutions.

Closing on the merger is expected in the first half of this year, subject to customary conditions.

Change Healthcare is a healthcare information technology company.

Milk Specialties on deck

Milk Specialties will hold a lender call at 10 a.m. ET on Wednesday to launch a $475 million covenant-light first-lien term loan due Aug. 16, 2023 talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Feb. 2, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 500 bps with a 1% Libor floor.

Milk Specialties is an Eden Prairie, Minn.-based human and animal nutrition company.

Harland readies loan

Harland Clarke set a bank meeting for 12:30 p.m. ET on Wednesday to launch a $370 million five-year covenant-light first-lien term loan (B1/BB-), according to a market source.

Talk on the term loan is Libor plus 600 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Feb. 2.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan. Other parties involved include Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Wells Fargo Securities LLC, Jefferies Finance LLC, Macquarie Capital (USA) Inc. and Eagle Hill.

Harland Clarke is a San Antonio-based provider of media delivery, payment solutions and marketing services.

National Vision plans deal

National Vision set a lender call for Wednesday to launch an incremental term loan, a market source remarked.

KKR Capital Markets is leading the deal.

National Vision is a Duluth, Ga.-based optical retailer.

Infor joins calendar

Infor surfaced with plans to hold a loan lender call at 11 a.m. ET on Wednesday, according to a market source.

Bank of America Merrill Lynch is leading the deal.

Infor is a New York-based enterprise software provider.

iStar sets deadline

In other news, iStar Inc. disclosed in an 8-K filed with the Securities and Exchange Commission that the commitment deadline for its $450 million senior secured term loan due July 2020 is Thursday, and closing is targeted for Jan. 31.

As previously reported, the term loan, which launched with a lender call on Tuesday, is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months.

J.P. Morgan Securities LLC, Barclays and Bank of America Merrill Lynch are leading the deal that will be used to help refinance an existing $497 million senior secured term loan priced at Libor plus 450 bps with a 1% Libor floor.

iStar is a New York-based investor and developer of real estate and real estate related projects.

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