Gates Global rolls out $2.49 billion and €200 million term loans; Polymer upsizes

By Paul A. Harris

Portland, Ore., June 5 - The leveraged loan primary market saw a steady flow of news Wednesday while in the secondary the LCDX 22 index of bank loan credit default swaps was unchanged on the day, closing at 104 3/8 bid, 104 7/8 offered.

Among announcements of new financings, Gates Global LLC plans to launch $2.49 billion and €200 million of term loans at a Thursday bank meeting.

Polymer Group Inc. upsized its fungible senior secured incremental covenant-light term loan (B2/B-) due Dec. 19, 2019 to $415 million from $355 million

Gates Global bank meeting

Gates Global plans to launch $2.49 billion and €200 million of seven-year first-lien covenant-light term loans at a Thursday bank meeting, according to a market source.

Commitments are due on June 19.

Credit Suisse Securities (USA) LLC is the lead.

Proceeds will be used to help fund a buyout of the company by Blackstone from Onex Corp. and Canada Pension Plan Investment Board.

The credit facility also includes a $125 million five-year revolver and $325 million ABL.

Gates Global is a Denver-based manufacturer of power transmission belts and fluid power products.

Polymer upsizes

Polymer Group increased its fungible senior secured incremental covenant-light term loan (B2/B-) due Dec. 19, 2019 to $415 million from $355 million on Wednesday, according to a market source.

Price talk is Libor plus 425 basis points with a 1% Libor floor.

The reoffer price moved to par from the 99¾ area.

Of the total term loan amount, $105 million is a delayed-draw tranche that is available until Dec. 31. The tranche is increased from $45 million.

The delayed-draw ticking fee is half the spread from days 31 to 60 and the full spread after that.

There is an incremental allowance for $75 million plus an amount, such that, pro forma for the incurrence, senior secured leverage is 4.5 times.

Mandatory prepayments are 100% of asset sales subject to reinvestment rights, 100% of non-permitted debt incurrence subject to baskets and 50% excess cash flow with leverage-based step-downs.

The loan also has a springing maturity to 91 days prior to the maturity of the 7¾% senior secured notes due Feb. 1, 2019 if there is $150 million or more of the notes still outstanding.

Commitments were due on Wednesday.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets and HSBC Securities (USA) Inc. are the bookrunners on the deal.

Proceeds will be used to help fund the acquisition of 71.25% of the outstanding capital stock of Companhia Providencia Industria e Comercio, a Brazilian manufacturer of nonwovens used in hygiene, health-care and industrial applications. The additional proceeds are expected to be used primarily for the repayment of existing secured debt.

Other funds for the transaction are expected to come from $210 million of senior notes.

Completion of the acquisition is expected in the third or fourth quarter, subject to customary conditions, including approval by antitrust authorities.

Polymer Group is a Charlotte, N.C.-based producer of engineered materials with a focus on nonwoven products.

Ryman tightens pricing

Ryman Hospitality Properties Inc. (RHP Hotel Properties LP) tightened pricing on its $400 million covenant-light term loan B (Ba3/BB) due January 2021 on Wednesday, according to a market source.

The Libor spread was decreased to 300 basis points from 325 bps. The Libor floor was reduced to 75 bps from 100 bps. And the discount firmed at 99.5, the tight end of previous price talk for an OID of 99 to 99.5.

The 101 soft call protection was extended to one year from six months.

The deal is set to price on Thursday.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and U.S. Bank are the bookrunners on the deal.

Proceeds will be used to repay revolving credit facility borrowings and for general corporate purposes.

Ryman is a Nashville, Tenn.-based real estate investment trust specializing in group-oriented, destination hotels in urban and resort markets.

Ameriforge moves up timing

Ameriforge Group Inc. moved up timing on its $65 million add-on first-lien covenant-light term loan due Dec. 19, 2019 and $35 million add-on second-lien covenant-light term loan due Dec. 19, 2020.

The new deadline is Thursday instead of Monday, June 9.

The add-on first-lien term loan is talked at Libor plus 375 basis points with a 1.25% Libor floor and an original issue discount in the 99½ area, and the add-on second-lien term loan is talked at Libor plus 750 bps with a 1.25% Libor floor and a premium in the 101 area, the source said.

Spread and floor on both add-on term loans match the existing first- and second-lien term loans.

The company is also seeking an amendment to its credit facility for which lenders are being offered a 12.5 bps consent fee, the source added.

Amendment consents are due at 5 p.m. ET on June 5 and new money commitments are due at noon ET on June 9.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, RBC Capital Markets LLC, UBS AG and BNP Paribas Securities Corp. are the bookrunners on the $100 million deal.

Proceeds will be used to fund the acquisition of VerdErg, a United Kingdom-based supplier of diverless subsea connector systems.

Ameriforge is a Houston-based manufacturer of highly engineered products, subassemblies and integrated systems for the oil and gas, midstream, downstream, power generation, aerospace, transportation and industrial markets.

TGI Fridays sets bank meeting

TGI Fridays Restaurants set a bank meeting for Thursday afternoon to launch $620 million of term loans, according to a market source.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are the lead banks.

The deal includes a $425 million six-year first-lien term loan and a $195 million second-lien term loan, $50 million revolver, with pricing to be determined.

The $670 million credit facility also has a $50 million revolver.

The casual dining restaurant and bar chain plans to use the proceeds to help fund its acquisition by Sentinel Capital Partners and TriArtisan Capital Partners from Carlson.

Bayonnne Energy talks loan

Bayonne Energy Center LLC set pricing for its $500 million seven-year term loan B at Libor plus 375 to 400 basis points with a 1% Libor floor at 99, with a 101 soft call for one year.

Commitments are due on June 18.

The $530 million senior secured credit facility (Ba3/BB) also features a $30 million five-year revolver.

Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and Credit Agricole CIB are the leads on the deal.

Proceeds will be used to fund Arclight Capital Partners LLC's acquisition of the remaining 50% interest in Bayonne Energy that it does not currently own.

Bayonne Energy is a Bayonne, N.J., power generation facility.

World Triathlon bank meeting

World Triathlon Corp. scheduled a bank meeting on Wednesday to roll out a $220 million first-lien term loan, according to a market source.

UBS AG is the lead bank on the deal.

Apart from 1% annual amortization, pricing and other structural features remain to be determined.

Proceeds will be used to refinance existing debt and pay a dividend.

Providence Equity Partners is the sponsor.

World Triathlon is a Tampa Bay, Fla.-based owner and operator of Ironman triathlon events.

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