Fairmount Minerals term loans hit secondary market; $41 million BWIC delayed to next week

By Sara Rosenberg

New York, Aug. 21 - Fairmount Minerals Ltd.'s credit facility freed up for trading on Wednesday, with the term loan B-1 and the term loans B-2 quoted above their original issue discount prices.

Also in the secondary, a small Bid-Wanted-In-Competition for which bids were supposed to be due in the morning was pushed off to next week because of reasons related to the fund.

Fairmount begins trading

Fairmount Minerals' credit facility emerged in the secondary market on Wednesday, with the both the $325 million first-lien term loan B-1 due March 15, 2017 and the $885 million six-year first-lien term loan B-2 quoted at 99¾ bid, par ¼ offered on the open, according to a market source.

Shortly after the break, however, the term loan B-2 moved up to par 1/8 bid, par 5/8 offered, while the B-1 remained at its initial levels, the source said.

Pricing on the B-1 loan is Libor plus 400 basis points with no Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

Meanwhile, the B-2 loan is priced at Libor plus 400 bps with a 1% Libor floor and it was sold at 991/2. This tranche also has 101 soft call protection for six months.

The company is also getting a $75 million five-year revolver priced at Libor plus 400 bps with no Libor floor that was sold at an original issue discount of 991/2.

Fairmount funding acquisition

Proceeds from Fairmount's $1,285,000,000 senior secured credit facility (B1/BB-) will be used to help finance the purchase of nearly all of FTS International's sand mining operations, resin-coating plants and distribution terminals and to refinance an existing senior secured credit facility.

Barclays, KeyBanc Capital Markets LLC, PNC Capital Markets LLC and Wells Fargo Securities LLC are lead banks on the credit facility that underwent some changes during the syndication process.

The revisions included upsizing the term B-1 from $250 million while downsizing the term B-2 from $960 million, firming pricing on both term loans and the revolver at the tight end of the Libor plus 400 bps to 425 bps talk, tightening the discount on the B-2 loan from 99 and shortening the call protection on the B-2 loan was from one year.

Closing on the facility is expected to occur on Sept. 3.

Senior secured leverage is 3.5 times and total leverage is 3.6 times.

Fairmount Minerals is a Chesterland, Ohio-based producer of industrial sand.

BWIC postponed

In other secondary news, the $41 million Bid-Wanted-In-Competition that was announced on Tuesday has been postponed to Monday from a bid deadline of 11 a.m. ET on Wednesday, according to a trader.

The trader said the delay is because of fund specific reasons.

As previously reported, there are six issuers in the portfolio, some of which have more than one tranche of debt on offer.

The issuers include Bashas Inc., Dark Castle Holdings, El Pollo Loco, Medical Card System, Pods Fund and U.S. Shipping Corp.

RBS closes

Moving to the new deal front, RBS Global Inc. (Rexnord) completed its $1.95 billion seven-year first-lien covenant-light term loan (B2/B+) that is priced at Libor plus 300 bps with a 1% Libor floor, a news release said. The loan has 101 soft call protection for six months and was sold at an original issue discount of 99.

During syndication, the spread on the loan firmed at the low end of the Libor plus 300 bps to 325 bps talk.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Bank of America Merrill Lynch, BMO Capital Markets, Barclays, SMBC and Mizuho Securities USA Inc. led the deal that was used to refinance existing 8½% senior notes and a term loan.

RBS is a Milwaukee-based multi-platform industrial company.

Toys 'R' Us wraps

Toys 'R' Us Property Co. I LLC closed on its $985 million six-year covenant-light unsecured term loan (B3/B+/BB-) that is priced at Libor plus 500 bps with a 1% Libor floor, according to an 8-K filed with the Securities and Exchange Commission. The loan has call protection of 102 in year one and 101 in year two and was sold at a discount of 99.

During syndication, pricing on the loan finalized at the tight end of the Libor plus 500 bps to 525 bps talk.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC led the deal that was used to refinance the company's 10¾% notes.

Toys 'R' Us is a Wayne, N.J.-based toy retailer.

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