Ducommun, Crown Paper free up; Avantor update emerges; Algoma, Ta Chen table loans

By Sara Rosenberg

New York, Nov. 19 – Ducommun Inc. raised pricing on its term loan B, added a step-down and extended the call protection before breaking for trading on Monday, and Crown Paper Group’s term loan hit the secondary market as well.

In more happenings, Avantor increased the spread on its U.S. term loan, Algoma and Ta Chen International opted to pull their term loans from market, and Cambium Learning Group Inc. joined the near-term primary calendar.

Ducommun revised, trades

Ducommun lifted the spread on its $240 million seven-year covenant-light term loan B to Libor plus 400 basis points from talk in the range of Libor plus 350 bps to 375 bps, added a step-down to Libor plus 375 bps at 2.5 times consolidated total net adjusted leverage, and extended the 101 soft call protection to one year from six months, according to a market source.

In addition, the 50 bps MFN was set for the life of the loan from having a 12-month sunset, the source said.

As before, the term loan has a 0% Libor floor and an original issue discount of 99.5.

The company’s $340 million of credit facilities (B2/B+) also include a $100 million revolver.

After terms firmed up on Monday, the B loan made its way into the secondary market and levels were quoted at 99 5/8 bid, par 1/8 offered, another source added.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and RBC Capital Markets are leading the deal that will be used to refinance the company’s existing revolver and term loan A.

Ducommun is a Santa Ana, Calif.-based provider of engineering and manufacturing services to aerospace, defense, and diverse technology-driven markets.

Crown Paper breaks

Crown Paper Group’s $94 million term loan freed to trade, with levels seen at 99 bid, 99¾ offered, a market source said.

Pricing on the term loan is Libor plus 475 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

Citizens Bank is leading the deal that will be used to fund a dividend.

Crown Paper is a paper and packaging company.

Avantor lifts pricing

Back in the primary market, Avantor raised pricing on its $1,938,000,000 term loan B (B2/B/BB) due November 2024 to Libor plus 375 bps from Libor plus 350 bps, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source remarked.

Pricing on the company’s €993 million term loan B (B2/B/BB) due November 2024 remained at Euribor plus 375 bps with a 0% floor and a par issue price. This tranche also has 101 soft call protection for six months.

Commitments were due at the end of the day on Monday and allocations are expected on Tuesday, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing U.S. term loan down from Libor plus 400 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 425 bps with a 0% floor.

Avantor is a Radnor, Pa.-based provider of integrated, tailored solutions for the life sciences and advanced technology industries.

Algoma withdrawn

Algoma decided to pull its $300 million seven-year covenant-light first-lien term loan B (B3/B-) because of current market conditions, and will fund its exit from Companies’ Creditors Arrangement Act by the end of November with a $250 million asset-based revolver and a draw under a previously disclosed backstop facility provided by consenting creditors, according to a market source.

The term loan had been talked at Libor plus 475 bps to 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Goldman Sachs Bank USA, Barclays and BMO Capital Markets were leading the deal.

Algoma is a Sault Ste. Marie, Ont.-based steel producer.

Ta Chen pulls loan

Ta Chen International withdrew its $250 million five-year term loan B (B3/B) from the primary market, a market source said.

The term loan was talked at Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

J.P. Morgan Securities LLC was leading the deal that was going to be used to help fund the acquisition of Arconic’s Texarkana, Texas, rolling mill for about $300 million in cash, plus additional contingent consideration of up to $50 million.

Ta Chen is a Long Beach, Calif.-based distributor of stainless, aluminum and nickel alloy coils, sheets, plates, long products, tubes and PVFs.

Cambium on deck

Cambium Learning set a bank meeting for 2 p.m. ET on Nov. 28 to launch $500 million of credit facilities, according to a market source.

The facilities consist of a $50 million revolver, a $320 million first-lien term loan and a $130 million second-lien term loan, the source said.

Commitments are due at noon ET on Dec. 11.

RBC Capital Markets, Deutsche Bank Securities Inc., Barclays and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by Veritas Capital for $14.50 in cash per share.

Closing is expected this quarter or in the first quarter of 2019, subject to customary conditions and regulatory approvals.

Cambium is a Dallas-based educational technology solutions company.

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