Gopher breaks; Sedgwick up on buyout announcement; Ensono, American Airlines update deals

By Sara Rosenberg

New York, Sept. 12 – Gopher Resource LLC’s incremental first-lien term loan freed up for trading on Wednesday above its issue price, and Sedgwick’s first-lien term loan B inched higher with news of a buyout by the Carlyle Group.

Moving to the primary market, Ensono LP came to market with an add-on term loan and then increased the size of the transaction, American Airlines Inc. modified the original issue discount on its add-on term loan, and Refinitiv accelerated the commitment deadline on it credit facilities.

Also, Contura Energy Inc., Restaurant Technologies Inc., Lotus Midstream, Flexera Software LLC and PCI Pharma Services (Packaging Coordinators Midco Inc.) released price talk with launch, and Blount International surfaced with new deal plans.

Gopher hits secondary

Gopher Resource’s $35 million incremental first-lien term loan due March 2025 began trading on Wednesday, with levels quoted at par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the incremental loan is Libor plus 325 basis points with a 25 bps step-down at first-lien net leverage of less than 4.5 times and a 1% Libor floor, which matches existing term loan pricing. The incremental loan was issued at par.

On Monday, the issue price on the incremental term loan was tightened from 99.75.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a shareholder distribution.

Gopher is a recycler of lead-acid batteries.

Sedgwick gains ground

Also in trading, Sedgwick’s first-lien term loan B rose to par bid, par ½ offered from 99 7/8 bid, par ¼ offered following news that the company will be acquired by Carlyle Group from KKR, a trader said.

The company plans on getting new debt and equity to fund the transaction, which is valued at about $6.7 billion.

Bank of America Merrill Lynch, Morgan Stanley and KKR Capital Markets are expected to provide the debt financing.

Closing is expected later this year, subject to customary conditions, including regulatory approvals.

Stone Point Capital LLC, Caisse de dépôt et placement du Québec and Sedgwick management will remain minority investors in the company.

Sedgwick is a Memphis, Tenn.-based provider of technology-enabled risk, benefits and integrated business solutions.

Ensono ups loan

Switching to the primary market, Ensono upsized its fungible add-on covenant-light term loan B due June 27, 2025 to $32.5 million in the afternoon after launching the deal with a size of $25 million in the morning, according to a market source.

The add-on term loan is priced at Libor plus 525 bps with a 0% Libor floor and an original issue discount of 99.75.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repay some revolver borrowings and to pay transaction-related fees and expenses.

Closing is expected next week.

Ensono is a Chicago-based hybrid IT services provider.

American Airlines tweaked

American Airlines changed the original issue discount on its fungible $300 million add-on term loan (//BB+) due 2021 to 99.75 from 99.5, according to a market source.

The add-on term loan is still priced at Libor plus 200 bps with a 0% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes. Citigroup Global Markets Inc. is the administrative agent.

American Airlines is a Fort Worth, Texas-based airline company.

Refinitiv moves deadline

Refinitiv accelerated the commitment deadline on its $8.75 billion equivalent of credit facilities (B2/B/BB+) to 5 p.m. ET on Friday from 5 p.m. ET on Monday, a market source remarked.

The facilities consist of a $750 million revolver, a $5.5 billion U.S. seven-year covenant-light term loan B and a $2.5 billion equivalent euro seven-year covenant-light term loan B.

Talk on the U.S. term loan is Libor plus 400 bps to 425 bps with no floor and an original issue discount of 99 to 99.5, and talk on the euro term loan is Euribor plus 425 bps with a 0% floor and a discount of 99 to 99.5. Both loans are talked with 101 soft call protection for six months.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, UBS Investment Bank, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc., Barclays, RBC Capital Markets and Sumitomo are the lead arrangers on the deal.

Refinitiv being acquired

Proceeds from the credit facilities will be used to help fund the acquisition of a 55% stake in Thomson Reuters’ Financial & Risk business, which will be renamed Refinitiv, by Blackstone, Canada Pension Plan Investment Board and GIC.

Other funds for the transaction will come from $5.5 billion equivalent in notes.

Thomson Reuters will receive about $17 billion in gross proceeds when the transaction closes, subject to purchase price adjustments, and will retain a 45% equity stake in the company.

Closing is expected on Oct. 1.

Refinitiv is a data and financial technology platform.

Contura discloses talk

In more primary happenings, Contura Energy held its bank meeting on Wednesday and launched its $600 million seven-year senior secured first-lien term loan (B3) at talk of Libor plus 400 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

Commitments are due on Sept. 25, the source said.

Jefferies LLC, Barclays, Citigroup Global Markets Inc. and BMO Capital Markets Corp. are leading the deal that will be used to refinance the combined entity’s balance sheet in connection with the closing of the announced merger with Alpha Natural Resources Holdings Inc.

Under the agreement, Alpha shareholders will receive 0.4071 of a Contura common share for each ANR Inc. class C-1 share and each Alpha Natural Resources Holdings Inc. common share they own, representing about 46.5% ownership in the merged entity.

Closing is expected this quarter, subject to Alpha shareholder approval and other customary conditions.

Contura is a Bristol, Tenn.-based coal supplier with affiliate mining operations. Alpha is a Bristol, Tenn.-based coal miner. The combined entity will retain the Contura Energy name.

Restaurant Technologies launches

Restaurant Technologies announced price talk on its $375 million seven-year covenant-light first-lien term loan (B1/B-) and $125 million eight-year covenant-light second-lien term loan (Caa1/CCC) with its afternoon bank meeting, a market source remarked.

The first-lien term loan is talked at Libor plus 350 bps to 375 bps with a 0% Libor floor, a discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 700 bps to 725 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $560 million of credit facilities also include a $60 million five-year revolver (B1/B-).

Commitments are due at noon ET on Sept. 21, the source added.

Goldman Sachs Bank USA, RBC Capital, Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Goldman Sachs Merchant Banking from Aurora Capital Partners. RBC is the administrative agent.

Restaurant Technologies is a Minneapolis-based provider of fresh oil delivery, used oil removal and efficiency monitoring solutions.

Lotus sets guidance

Lotus Midstream came out with talk of Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $350 million seven-year term loan B (BB+/BB+) that launched with a lender call during the session, a market source said.

Commitments are due at noon ET on Sept. 25, the source added.

Barclays is leading the deal that will be used to support the acquisition of the Centurion pipeline system and a Southeast New Mexico crude oil gathering system from Occidental Petroleum Corp.

Closing is expected in the third quarter, subject to customary conditions.

EnCap Flatrock Midstream is the sponsor.

Lotus is a Sugar Land, Texas-based energy company focused on the organic development of midstream infrastructure and services necessary to transport crude oil and condensate from the wellhead to the market.

Flexera floats OID

Flexera Software held its call, launching its fungible $85 million senior secured add-on first-lien term loan due February 2025 with original issue discount talk of 99.5 to 99.75, according to a market source.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor.

Commitments are due at noon ET on Monday, the source said.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Flexera is an Itasca, Ill.-based provider of software and services that enable software publishers and device makers to install, enforce and deploy software licenses.

PCI holds call

PCI Pharma Services released original issue discount talk of 99.5 on its fungible $50 million incremental first-lien term loan due July 1, 2023 in connection with its lender call, a market source remarked.

Like the existing loan, the incremental first-lien term loan is priced at Libor plus 400 bps with a 1% Libor floor, and the debt is getting 101 soft call protection for six months, the source added.

Commitments and amendment responses are due on Sept. 20.

Lenders are offered a 10 bps amendment fee.

Jefferies LLC is leading the deal that will be used with a pre placed $25 million incremental second-lien term loan to fund the acquisition of Sherpa Clinical Packaging.

PCI is a Philadelphia-based pharmaceutical services provider. Sherpa is a San Diego-based provider of clinical trial material management services for clinical studies phases I-IV.

Blount readies deal

Blount International set a lender call for 2 p.m. ET on Thursday to launch a $627 million term loan B due April 2023, a market source said.

Also, the company will launch an amendment to fund a one-time dividend distribution to existing shareholders with cash from the balance sheet, the source added.

Barclays is leading the deal.

The term loan will be used to reprice an existing term loan B due 2024.

Blount is a Portland, Ore.-based manufacturer and marketer of outdoor power equipment.

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