Six Flags breaks; Direct ChassisLink, Trade Me, Hexion make changes; Momentive accelerated

By Sara Rosenberg

New York, April 11 – Six Flags Theme Parks Inc.’s credit facilities surfaced in the secondary market on Thursday, and the term loan B was seen quoted above its original issue discount price.

Moving to the primary market, Direct ChassisLink Inc. widened the original issue discount on its term loan, and Trade Me Group Ltd. (Titan Acquisitionco New Zealand) increased the size of its first-lien term loan, reduced pricing and tightened the issue price.

Additional, Hexion International Holdings BV set the spread on its debtor-in-possession term loan at the low end of guidance and revised the original issue discount, Momentive Performance Materials Inc. (MPM Holdings Inc.) moved up the commitment deadline for its first-lien term loan B, and Kestra Financial Inc. released price talk on its term loan with launch.

Six Flags hits secondary

Six Flags Theme Parks’ credit facilities freed up for trading on Thursday, with the $800 million seven-year term loan B quoted at par bid, according to a market source.

Pricing on the term loan is Libor plus 200 basis points with a 0% 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, the discount on the term loan was tightened from 99.

The company’s $1.15 billion of credit facilities (Ba1/BBB-) also include a $350 million revolver.

Wells Fargo Securities LLC, Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing revolver and term loan B.

Six Flags is a Grand Prairie, Tex.-based regional theme park company.

Direct ChassisLink tweaked

Switching to the primary market, Direct ChassisLink changed the original issue discount on its $825 million seven-year covenant-lite term loan to 95 from revised talk in the range of 96 to 97 and initial talk of 99, a market source said.

Also, the excess cash flow sweep saw the addition of a 50% sweep when availability under the ABL facility exceeds the greater of $250 million and 30% of maximum availability, an event of default blocker was added to the release of guarantors, and reclassification ability was deleted from reclassification of investments under general, unrestricted subsidiaries, joint venture and similar business baskets to the intercompany basket upon the entity in which the investment was made becoming a subsidiary, the source continued.

The term loan is priced at Libor plus 825 bps with a 0% Libor floor, and is non-callable for one year, then at 102 in year two and 101 in year three.

Previously in syndication, the term loan was downsized from $850 million, pricing was lifted from talk in the range of Libor plus 725 bps to 750 bps, the hard call protection was modified from 102 in year one and 101 in year two, and some documentation changes were made.

Direct ChassisLink leads

Citigroup Global Markets Inc., Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and MUFG are leading Direct ChassisLink’s term loan.

Allocations are expected on Friday morning, the source added.

The new debt will be used to help fund the buyout of the company by Apollo Global Management LLC from EQT Infrastructure, who will retain a 20% minority stake.

Direct ChassisLink is a Charlotte, N.C.-based provider of domestic and marine chassis to the intermodal supply chain.

Trade Me reworked

Trade Me Group lifted its seven-year covenant-lite first-lien term loan (B1/B) to $605 million from $575 million, cut pricing to Libor plus 425 bps from talk in the range of Libor plus 450 bps to 475 bps and changed the original issue discount to 99.5 from 99, a market source remarked.

The first-lien term loan still has a 0% Libor floor and 101 soft call protection for six months.

Recommitments are due at 11 a.m. ET on Friday, the source continued.

Credit Suisse Securities (USA), Nomura, UBS Investment Bank, Macquarie Capital (USA) Inc. and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Apax Partners for NZ$6.45 per share.

The company is also getting a NZ$276 million privately placed second-lien loan, which was downsized from NZ$320 million, the source added.

Closing is expected in the second quarter, subject to shareholder and court approval.

Trade Me is an operator of online classified marketplaces for motor vehicles, property and jobs in New Zealand.

Hexion changes emerge

Hexion finalized pricing on its $350 million 18-month debtor-in-possession term loan (Ba2/BB+) at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, and adjusted the original issue discount to 99.75 from 99.5, according to a market source.

As before, the DIP term loan has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Thursday, the source said, compared to an original commitment deadline of April 17.

Credit Suisse Securities (USA) and J.P. Morgan Securities are leading the loan, which will be used to repay outstanding ABL borrowings and for general corporate purposes.

Hexion is a Columbus, Ohio-based producer of thermoset resins and related technologies and specialty products.

Momentive revises deadline

Momentive Performance Materials accelerated the commitment deadline for its $839 million five-year covenant-lite term loan B (B1/B+) to noon ET on Monday from 5 p.m. ET on Tuesday, a market source remarked.

The term loan is talked at Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

BNP Paribas Securities Corp. and Citigroup Global Markets are leading the deal that will be used with cash to fund the acquisition of the company by SJL Partners LLC, KCC Corp. and Wonik QnC Corp. for $32.50 per share. The transaction is valued at about $3.1 billion, including the assumption of net debt, pension and OPEB liabilities.

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

Momentive is a Waterford, N.Y.-based silicones and advanced materials company. KCC is a Seoul, South Korea-based chemicals manufacturer. Wonik is a Gumi, South Korea-based manufacturer and seller of quartz and ceramic wares used in the production of semiconductor wafers.

Kestra reveals talk

Kestra Financial held its bank meeting on Thursday afternoon and announced talk on its $410 million seven-year term loan at Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $485 million of credit facilities (B3/B+) also include a $75 million five-year revolver.

Commitments are due on April 25, the source said.

UBS Investment Bank, Credit Suisse Securities (USA), Bank of America Merrill Lynch, Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus LLC. Stone Point Capital LLC, Kestra Financial’s current majority owner, will maintain a minority stake in the company.

Closing is expected this quarter or early in the third quarter, subject to customary regulatory approvals.

Kestra Financial is an Austin, Texas-based provider of an advisor platform to financial professionals.

RadNet allocates

In other news, RadNet Management Inc. allocated its fungible $100 million incremental term loan B (B1/B) due June 30, 2023, a market source said.

Pricing on the incremental term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99.5. The spread can step-up to Libor plus 450 bps, and step-down to Libor plus 350 bps and Libor plus 325 bps, based on first-lien leverage.

On Wednesday, the discount on the incremental term loan was revised from 99.15.

Barclays, SunTrust Robinson Humphrey Inc., Capital One, J.P. Morgan Securities, Credit Suisse Securities (USA) and RBC Capital Markets are leading the deal that will be used to repay revolver borrowings, fund cash to the balance sheet for potential future acquisitions and pay related fees and expenses.

Closing is expected on April 18.

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

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