Mondrian, Omnova break; Sutherland, SunGard, Schaeffler, Fox, Total Safety, Monarch reworked

By Sara Rosenberg

New York, March 5 - Mondrian Investment Partners Ltd. revised pricing on its term loan B and then freed up for trading on Tuesday with levels seen above its issue price, and Omnova Solutions Inc. began being quoted as well.

In more happenings, Sutherland Global Services Inc. raised pricing on its term loan for a second time and modified the accordion feature, and SunGard Data Systems Inc. lifted its term loan size while firming the discount price at the low end of talk.

Also, Schaeffler AG (INA Beteiligungs GmbH) upsized its U.S. and euro term loans, and Fox Acquisition Sub LLC firmed the spread and discount on its add-on at the tight end of talk and trimmed the Libor floor.

In addition, Total Safety increased its first-lien term loan size and decreased coupons and discounts on its term debt, and Monarch (AI Chem Intermediate Sarl) upsized its first-lien debt, downsized its second-lien loan and trimmed pricing.

Furthermore, McGraw-Hill Global Education Holdings LLC, EMI Music Publishing and AWAS Finance Luxembourg SA revealed price talk as their deals were presented to lenders during the session, the Container Store Inc. disclosed original issue discount guidance, and the Sun Products Corp., Protection One Inc., California Pizza Kitchen Inc. and Del Taco LLC announced new loan plans.

Mondrian starts trading

Mondrian's $305 million senior secured term loan B (Ba2/BB) due March 2020 emerged in the secondary market on Tuesday morning, with levels quoted at par 5/8 bid, 101 1/8 offered on the break and then it moved to par ¾ bid, 101 offered, according to a market source.

Pricing on the loan, which includes $83 million of add-on debt, is Libor plus 300 basis points with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

During syndication, the spread was raised from Libor plus 275 bps and the offer price on the add-on firmed at the tight end of the 99¾ to par talk, the source said.

Proceeds from the add-on will be used for seed capital and to fund distributions to retirees and employee funders of the 2004 management buyout, and the remainder will reprice an existing $222 million term loan from Libor plus 425 bps with a 1.25% Libor floor and extend the maturity from July 2018.

Existing lenders are getting a 10 bps consent fee on rolled money.

Morgan Stanley Senior Funding Inc. is leading the deal that is expected to close on Thursday.

Mondrian is a money manager with offices in London and Philadelphia.

Omnova levels surface

Omnova Solutions' $196 million term loan also freed up, with the debt quoted at par 5/8 bid, a market source said.

Pricing on the loan is Libor plus 300 bps, after firming a the low end of talk of Libor plus 300 bps to 325 bps. There is a 1.25% Libor floor and 101 soft call protection for six months, and the debt was issued at par.

Deutsche Bank Securities Inc. is leading the deal that is being used to refinance existing debt.

Omnova is a Fairlawn, Ohio-based provider of emulsion polymers, specialty chemicals, and decorative and functional surfaces for commercial, industrial and residential end uses.

Sutherland flexes again

Over in the primary, Sutherland lifted the spread on its $225 million six-year term loan to Libor plus 600 bps from revised talk of Libor plus 575 bps and initial talk of Libor plus 500 bps, according to a market source.

Also, the accordion was changed to $50 million subject to a 2.75 times pro forma total leverage ratio, plus an additional $80 million subject to a 2.5 times pro forma total leverage ratio, from $30 million, plus $100 million subject to a 3 times total leverage ratio, the source said.

The loan has a 1.25% Libor floor, an original issue discount of 98 and call protection of 103 in year one, 101½ in year two and par ½ in year three on all voluntary prepayments.

Earlier in syndication, the discount was revised from 99 and the call protection was sweetened from just 101 repricing protection for one year.

The company's $255 million credit facility also includes a $30 million five-year revolver.

Sutherland lead banks

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading Sutherland's credit facility, for which recommitments were due at 5 p.m. ET on Tuesday.

The deal is expected to allocate and close on Wednesday, the source added.

Proceeds will be used to help fund the acquisition of Apollo Health Street Ltd., a provider of health care business services and Health Information Technology-based services, and to refinance existing debt.

Sutherland is a Rochester, N.Y.-based provider of business process and technology management services.

SunGard updates deal

SunGard upsized its seven-year term loan (Ba3/BB) to $2.2 billion from $2 billion and finalized the original issue discount at 993/4, the tight end of the 99½ to 99¾ talk, according to a market source, who said recommitments were due at 5 p.m. ET on Tuesday.

As before, the loan is priced at Libor plus 300 bps with a 1% Libor floor, and has 101 soft call protection for one year.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to refinance the existing term loan B due 2016 and a portion of the term loan C due 2017. The incremental funds raised through the upsizing will pay down more of the term loan C debt, resulting in a pro forma tranche C size of around $427 million, the source continued.

SunGard is a Wayne, Pa.-based software and technology services company.

Schaeffler upsizes

Schaeffler increased its U.S. term loan B2 due January 2017 to$1.7 billion from $1.5 billion and its euro term loan B2 due January 2017 to €625 million from €525 million, according to a market source.

The U.S. loan is still priced at Libor plus 325 basis points and the euro loan is still priced at Euribor plus 375 bps, with both having a 1% floor, an original issue discount of 99½ and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Tuesday.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance the company's existing €1.6 billion equivalent term loan B2, comprised of €500 million and $1.5 billion, and, as a result of the upsizing, to pay down the €2,446,000,000 term loan A due January 2015 to €2,195,000,000, the source said.

Schaeffler is a Herzogenaurach, Germany-based manufacturer of bearings for autos & industrial OEMs.

Fox revises add-on

Fox Acquisition firmed pricing on its $237 million add-on term loan (B2/B) due July 2017 at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 993/4, versus initial talk of Libor plus 450 bps to 475 bps talk with a 1.25% floor and a discount of 99½ to 993/4, according to a market source.

The add-on has 101 soft call protection through September 2013, which is the same as the existing term loan that is priced at Libor plus 450 bps with a 1% Libor floor.

Deutsche Bank Securities Inc. is leading the deal that will fund a dividend to Oakhill Capital.

Also, the company is seeking the amendment to allow for the new debt and the dividend, to provide for a pro forma accordion of $125 million subject to 5.5 times secured leverage and 50 bps MFN and to allow for unlimited asset sales subject to mandatory prepayments.

Lenders are being offered a 10 bps consent fee.

Fox, a Fort Wright, Ky.-based owner and operator of television stations, expects to close on the transaction next week.

Total Safety tweaks deal

Total Safety upsized its seven-year first-lien term loan (B1/B-) to $290 million from $270 million, reduced pricing to Libor plus 450 bps from Libor plus 475 bps and tightened the discount to 99½ from 99, according to a market source. The 1.25% Libor floor and 101 soft call protection for six months were unchanged.

Meanwhile, pricing on the $115 million 71/2-year second-lien term loan (Caa1/CCC) was trimmed to Libor plus 800 bps from Libor plus 850 bps, the discount was revised to 99 from 98 and the call protection was changed to 103 for six months, then 102 for a year and 101 for a year, from 103 in year one, 102 in year two and 101 in year three, the source said. The 1.25% Libor floor was left intact.

The company's now $465 million facility also includes a $60 million five-year revolver (B1/B-).

Recommitments are due on Wednesday.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will be used to refinance existing debt and fund a dividend.

Total Safety is a Houston-based outsourced provider of integrated safety and compliance services and the products necessary to support them.

Monarch restructures

Monarch upsized its first-lien term loan (Ba3/B+) to $655 million from $565 million and the loan now includes an up to €200 million tranche, according to a market source, who said the second-lien term loan (B3/B-) was downsized to $150 million from $200 million.

Pricing on the U.S. portion of the loan is Libor plus 325 bps, reduced from Libor plus 350 bps, the source continued. The 1.25% Libor floor, original issue discount of 99½ and 101 soft call protection for one year were unchanged.

Pricing on the euro loan is talked at Euribor plus 350 bps with a 1.25% floor and a discount of 99, the source continued.

As for the second-lien loan, pricing was reduced to Libor plus 700 bps from Libor plus 750 bps and the original issue discount talk was revised to 99 to 99½ from just 99, the source continued. The 1.25% Libor floor was left intact.

Monarch getting revolver

Monarch's now $925 million credit facility, which is being led by Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Nomura Securities International Inc., also includes a $120 million revolver (Ba3/B+).

Proceeds will be used to help fund Advent International's acquisition of Cytec Industries Inc.'s Brussels-based coating resins business for about $1.15 billion.

Other funds for the transaction will come from equity, the amount of which was reduced by $40 million due to the first-lien term loan upsizing, the source added.

Closing is expected this quarter, subject to the satisfaction of regulatory requirements and other customary conditions.

McGraw-Hill releases talk

In more primary news, McGraw-Hill Global Education held a bank meeting on Tuesday morning to launch its credit facility, and shortly before the event kicked off, price talk on the $560 million six-year covenant-light term loan was released, according to a market source.

The term loan is talked at Libor plus 650 bps to 700 bps with a 1.25% Libor floor and an original issue discount of 98, and has 101 soft call protection for one year, the source said.

The company's $800 million senior secured credit facility also includes a $240 million five-year revolver.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Jefferies & Co., UBS Investment Bank, Nomura and BMO Capital Markets Corp. are leading the deal.

McGraw-Hill buyout

Proceeds from McGraw-Hill Global Education's credit facility will be used to help fund the purchase of the company by Apollo Global Management LLC from McGraw-Hill Cos. for $2.5 billion, subject to certain closing adjustments.

And, the transaction was recently revised so that McGraw-Hill will receive an additional $150 million in cash at closing from the investment funds affiliated with Apollo Global Management, instead of being issued $250 million of unsecured notes by a holding company of McGraw-Hill Education.

Pricing on the notes was going to be 8.5% until five years from closing, and then it would have increased to 11% per annum.

Closing is subject to regulatory approval and customary conditions.

McGraw-Hill Education is a New York-based digital learning company.

EMI launches refi

EMI Music Publishing told investors on its morning call that it is looking to get a $1,144,250,000 term loan B that is talked at Libor plus 300 bps to 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

Proceeds will be used to refinance an existing term loan that is priced at Libor plus 425 bps with a 1.25% Libor floor.

Lead banks, UBS Securities LLC and Bank of America Merrill Lynch, are seeking commitments by March 12, the source remarked.

EMI Music is a music publisher.

AWAS holds call

AWAS Finance Luxembourg hosted a call in the afternoon to launch a roughly $411 million term loan B due October 2017 that is talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for one year, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to repay an existing term loan B due June 2016.

AWAS is a Dublin-based aircraft leasing company.

Container Store reveals OID

Container Store also held a call during the session, launching its roughly $362 million term loan B (B3) due 2019 with original issue discount talk of 99¾ and 101 soft call protection for six months, according to a market source.

Price talk on the loan had come out prior to launch at Libor plus 425 bps to 450 bps with a 1.25% Libor floor.

J.P. Morgan Securities LLC, Barclays, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance a roughly $272 million term loan B and redeem some of the company's outstanding cumulative preferred stock.

Container Store is a Coppell, Texas-based retailer of organization and storage products.

Sun Products readies deal

Also in the primary, Sun Products set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $1.18 billion credit facility that consists of a $100 million five-year revolver and a $1.08 billion seven-year term loan B, according to a market source.

J.P. Morgan Securities LLC is leading the deal.

Proceeds will be used to refinance existing debt.

Sun Products is a Wilton, Conn.-based manufacturer of branded and retailer brand fabric care and dish care products.

Protection One joins calendar

Protection One will be hosting a call at 1 p.m. ET on Wednesday to launch a $631 million credit facility that is being led by J.P. Morgan Securities LLC, according to a market source.

The facility consists of a $40 million revolver due March 2017, and a $591 million term loan B due March 2019 that is talked at Libor plus 350 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, the source continued.

Proceeds will be used to refinance an existing $25 million revolver and $541 million term loan B and add cash to the balance sheet.

Protection One is a Romeoville, Ill.-based alarm and security services provider.

California Pizza on deck

California Pizza Kitchen scheduled a bank meeting for Friday morning to launch a $350 million credit facility that is being led by GE Capital Markets and Jefferies Finance LLC, according to a market source.

The facility consists of a $30 million revolver and a $320 million term loan, both talked at Libor plus 450 bps to 475 bps with a 1.25% Libor floor, the source said. The term loan has 101 soft call protection for six months.

Proceeds will be used to refinance existing first- and second-lien debt.

California Pizza Kitchen is a Playa Vista, Calif.-based casual dining chain and a distributor of frozen food products.

Del Taco coming soon

Del Taco will hold a bank meeting on Thursday to launch a $215 million credit facility that will be used to refinance existing debt, including a portion of junior debt, according to a market source.

GE Capital Markets is leading the deal.

The facility consists of a $40 million five-year revolver and a $175 million 51/2-year term loan, with both tranches talked at Libor plus 500 bps with a 1.25% Libor floor, the source said. The term loan has 101 soft call protection for six months.

Del Taco is a Lake Forest, Calif.-based operator and franchiser of restaurants.

Realogy closes

In other news, Realogy Group LLC completed its 2,395,000,000 credit facility (B1/BB-) that includes a $475 million revolver due 2018 and a $1.92 billion term loan B due 2020, according to a news release.

Pricing on the term loan B is Libor plus 350 bps with a 1% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $1.82 billion, the spread was increased from talk of Libor plus 300 bps to 325 bps, the offer price firmed at the high end of revised talk of 99 to 99½ and wide of initial talk of par, and the call protection was extended from six months. Also, the revolver size was revised from talk of up to $600 million.

J.P. Morgan Securities LLC led the deal that was used to refinance an existing $363 million revolver due April 2016 and a $1.82 billion term loan due October 2016.

Realogy is a Parsippany, N.J.-based provider of real estate brokerage, relocation and settlement services.

Remy wraps

Remy International Inc. closed on its $300 million seven-year term loan B (B1/B+), according to a news release.

Pricing on the loan is Libor plus 300 bps with a 1.25% Libor floor, and it was sold at a discount of 993/4. There is 101 soft call protection for six months.

Pricing on the loan came at the tight end of talk of Libor plus 300 bps to 325 bps with a discount of 99½ to 993/4.

Bank of America Merrill Lynch, UBS Securities LLC, Wells Fargo Securities LLC and Deutsche Bank Securities Inc. led the deal that was used to refinance an existing term loan B priced at Libor plus 450 bps with a 1.75% Libor floor, add cash to the balance sheet and for general corporate purposes.

Remy is a Pendleton, Ind.-based manufacturer, remanufacturer and distributor of starters and alternators for light vehicle and commercial vehicle applications, locomotive products and hybrid electric motors.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.