American Airlines, Boyd, Amneal, FLY, Sinclair, US LBM break; World Kitchen trades up

By Sara Rosenberg

New York, April 17 – American Airlines Inc., Boyd Corp., Amneal Pharmaceuticals LLC, FLY Leasing, Sinclair Television Group Inc. and US LBM freed up for trading during Friday’s market hours, and World Kitchen LLC’s term loan B was stronger with the release of financial results.

Over in the primary, TGI Friday’s Inc. tightened pricing and original issue discount on its tack-on term loan and cancelled its repricing proposal, and Element Materials Technology lowered the spread on its add-on term loan B while adjusting offer price guidance, and opted to pursue a repricing of its existing term loan B debt.

Also, DJO Finance LLC began circulating price talk on its term loans ahead of its launch, PrimeSource Building Products (PriSo Acquisition Corp.), WASH Multifamily Laundry Systems, eResearchTechnology Inc., Chemours Co., Bioplan/Arcade Marketing, Acosta Sales & Marketing, Intrawest Resorts Holdings Inc. and Talbots Inc. joined the near-term calendar.

American Airlines tops par

American Airlines’ $750 million senior secured term loan B due Oct. 10, 2021 hit the secondary market on Friday, with levels seen at 100 1/8 bid, 100½ offered and then it moved up to 100¼ bid, 100 5/8 offered, according to a trader.

Pricing on the Fort Worth-based airline company’s loan is Libor plus 300 basis points, after firming the other day at the low end of the Libor plus 300 bps to 325 bps talk. The debt has a 0.75% Libor floor and 101 soft call protection for six months and was issued at par.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp. and Credit Agricole CIB are leading the deal that will be used to repay an existing senior secured term loan B.

Closing is expected on Monday.

Boyd frees up

Boyd’s credit facility also began trading, with the $365 million seven-year first-lien covenant-light term loan (B2/B) quoted at 99 7/8 bid, 100 3/8 offered before moving up to 100 3/8 bid, 100 7/8 offered, and the $142 million eight-year second-lien term loan (Caa2/B-) quoted at 98 bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 925 bps with a 1% Libor floor, and was issued at a discount of 97½. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, pricing on the first-lien term loan was reduced from Libor plus 500 bps, the discount was tightened from 99, and the call protection was shortened from one year, and pricing on the second-lien loan was increased from Libor plus 875 bps, the discount widened from 98, and the call protection was sweetened from 102 in year one and 101 in year two.

Boyd getting revolver

In addition to the first-and second-lien term loans, Boyd’s $557 million credit facility includes a $50 million five-year revolver (B2/B).

UBS AG, RBC Capital Markets and BMO Capital Markets are leading the deal.

Proceeds will be used to help fund Genstar Capital’s buyout of the company.

Boyd is a Modesto, Calif.-based manufacturer and supplier of custom fabricated sealing and energy management components for OEMs.

Amneal starts trading

Amneal Pharmaceuticals’ $200 million covenant-light incremental term loan (B+) due November 2019 broke too, with levels seen at 100¼ bid, 100¾ offered, a trader remarked.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

GE Capital Markets is leading the deal that will be used to fund a dividend.

The new loan is not fungible with the company’s existing term loan that is priced at Libor plus 400 bps with a 1% Libor floor.

Existing lenders were offered a 5 bps amendment fee to allow for the new loan.

Amneal Pharmaceuticals is a Bridgewater, N.J.-based manufacturer of generic pharmaceuticals.

FLY Leasing above par

FLY Leasing’s $445.6 million term loan due August 2019 also freed to trade, with levels quoted at 100 1/8 bid, 100 5/8 offered, a trader said.

Pricing on the loan is Libor plus 275 bps with a 0.75% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

RBC Capital Markets is leading the deal that will reprice an existing term loan from Libor plus 350 bps with a 1% Libor floor.

Initially, the company was planning on paying down the term loan to $426.4 million with the repricing, but the paydown was cancelled as a result of strong demand during syndication.

FLY Leasing is a Dublin-based aircraft lessor.

Sinclair hits secondary

Sinclair Television Group’s $350 million incremental term loan B started trading as well, with levels quoted at par bid, 100½ offered, according to a trader.

Pricing on the term loan is Libor plus 275 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99 7/8, after tightening the other day from talk of 99 to 99½. There is 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

US LBM breaks

Another deal to emerge in the secondary was US LBM’s fungible $50 million tack-on senior secured term loan due May 2020, with levels seen at 99½ bid, 100½ offered, a trader said.

Pricing on the tack-on is Libor plus 700 bps with a 1% Libor floor, in line with the existing term loan, and it was sold at an original issue discount of 99½, after tightening recently from 99. The tack-on loan and the existing debt have call protection of 102 through November, then 101.5 for a year and 101 for a year.

Credit Suisse Securities (USA) LLC is leading the deal that will be used for acquisitions.

US LBM is a Green Bay, Wis.-based owner of building material distribution businesses.

World Kitchen rises

Also in trading, World Kitchen’s term loan B moved up to 100 3/8 bid, 101¼ offered from par bid after earnings results were disclosed to lenders, according to a trader.

The financials were not released publicly, the trader added.

World Kitchen is a Rosemont, Ill.-based manufacturer and marketer of bakeware, dinnerware, kitchen and household tools, rangetop cookware and cutlery products.

TGI Friday’s discloses changes

Moving to the primary market, TGI Friday’s reduced pricing on its fungible $207 million tack-on first-lien term loan (B2) due July 15, 2020 to Libor plus 425 bps from Libor plus 450 bps and moved the original issue discount to 99¾ from 99, a market source remarked.

Furthermore, the company will no longer reprice its existing $118 million first-lien term loan to Libor plus 450 bps from Libor plus 425 bps, the source continued.

As before, the term loan debt has a 1% Libor floor and 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, Goldman Sachs Bank USA and GE Capital Markets are leading the deal for which recommitments were due at 3 p.m. ET on Friday.

The casual dining restaurant and bar chain is still seeking an amendment to its existing first-lien term loan that will reset maximum total net leverage ratio levels, and existing lenders are still offered a 25 bps amendment fee.

Proceeds from the tack-on will be used to refinance second-lien term loan debt and seller preferred paper.

Element reworks loan

Element Materials Technology trimmed pricing on its fungible $70 million add-on term loan B due Aug. 8, 2021 to Libor plus 400 bps from Libor plus 425 bps, and is now asking to reprice its existing roughly $283.6 million term loan B due Aug. 8, 2021 to Libor plus 400 bps from Libor plus 425 bps, according to a market source.

Additionally, the offer price talk on the add-on term loan was changed to 99¾ to par from 99½, and 101 soft call protection for six months was added to all of the term loan B debt. The repricing is offered at par.

The 1% Libor floor on the add-on and existing term loan B was unchanged.

Commitments for the revised deal are due at 5 p.m. ET on Monday, the source added.

Proceeds from the add-on will be used to fund an acquisition.

RBC Capital Markets is leading the deal for Element, a global network of laboratories with experts specializing in materials testing, product qualification testing and failure analysis.

DJO releases talk

DJO Finance came out with price talk of Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99½ on its $1,005,000,000 first-lien term loan and $20 million delayed-draw term loan in preparation for its Monday bank meeting, a market source said. The funded and delayed-draw term loan will likely be a strip.

The company’s $1,175,000,000 credit facility also includes a $150 million asset-based revolver.

Allocations are targeted for late in the week of April 20.

Macquarie Capital (USA) Inc. is leading the deal that will be used with $1,045,000,000 of second-lien senior notes to refinance existing debt. The company is also offering to exchange its existing $300 million of senior subordinated notes for $300 million of new third-lien senior notes.

DJO, a Blackstone portfolio company, is a Vista, Calif.-based provider of medical device solutions for musculoskeletal health, vascular health and pain management.

PrimeSource readies deal

In more primary news, PrimeSource Building Products set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $625 million credit facility, a market source said.

The facility consists of a $300 million ABL revolver, and a $325 million seven-year covenant-light term loan B that has 101 soft call protection for six months, the source said.

Deutsche Bank Securities Inc., BMO Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Nomura are leading the deal.

Proceeds will be used with $230 million of senior notes to help fund the buyout of the company by Platinum Equity LLC from Itochu.

PrimeSource is a Dallas-based two step building products distributor.

WASH sets launch

WASH Multifamily will hold a bank meeting at 10:30 am ET in New York on Tuesday to launch a $685 million senior secured credit facility that will be used to fund its recently announced buyout by EQT Infrastructure II Fund from CHS Capital LLC, according to a market source.

The facility consists of a $60 million revolver, a $475 million first-lien term loan B and a $150 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Natixis Securities North America Inc. are leading the deal.

WASH is an El Segundo, Calif.-based provider of common room laundry services to multifamily apartments and universities.

eResearch coming soon

eResearchTechnology emerged with plans to hold a bank meeting on Wednesday to launch a $510 million credit facility that will be used to fund its previously announced acquisition of PHT Corp., according to a market source.

The facility consists of a $45 million revolver and a $465 million term loan B, the source said.

Jefferies Finance LLC and Citizens Capital Markets are leading the deal.

eResearchTechnology is a Philadelphia-based provider of patient-centric endpoint data collection solutions for use in clinical drug development. PHT is a Boston-based collector and reporter of secure real-time patient data from mobile apps.

Chemours plans meeting

Chemours scheduled a bank meeting for Wednesday to launch a $2.5 billion senior secured credit facility, a market source remarked.

The facility consists of a $1 billion revolver and a $1.5 billion term loan B, the source added.

J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the company’s spinoff from EI DuPont de Nemours & Co.

Chemours businesses include titanium technologies based around the white pigment titanium dioxide, fluoroproducts, and chemical solutions aimed at the gold production, oil refining, agriculture, industrial polymers and other industries.

Bioplan/Arcade on deck

Bioplan/Arcade Marketing set a roadshow for Monday through Thursday and a lender call for April 24 to launch the selldown of about $388.1 million in term loan debt, according to a market source.

The debt includes a $283.1 million first-lien term loan due September 2021 priced at Libor plus 475 bps with a 1% Libor floor, and a $105 million second-lien term loan due September 2022 priced at Libor plus 825 bps with a 1% Libor floor.

The loans funded in 2014 as Bioplan and Arcade Marketing merged, but struggled in syndication as a result of poor market conditions.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. are leading the deal, with Goldman left lead on the first-lien and Credit Suisse left lead on the second-lien.

Bioplan/Arcade Marketing is a provider of sampling and packaging solutions for the fragrance, cosmetics and skincare segments.

Acosta repricing

Acosta Sales & Marketing will hold a call on Monday to launch a repricing of its roughly $2.06 billion covenant-light term loan that is talked at Libor plus 325 bps with a 1% Libor floor, an offer price of 99¾ to par and 101 soft call protection for one year, a market source said.

The term loan is being repriced from Libor plus 400 bps with a 1% Libor floor, and lenders will get paid out at 101 due to existing call protection.

Commitments are due at noon ET on April 24, the source added.

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

Acosta is a Jacksonville, Fla.-based full-service sales and marketing agency in the consumer goods industry.

Intrawest joins calendar

Intrawest Resorts set a call for Monday for credit facility lenders, according to a market source, who said details on the purpose of the call are not yet available.

Bank of America Merrill Lynch is leading the deal.

Intrawest is a Denver-based mountain resort and adventure company.

Talbots schedules call

Talbots is planning on holding a conference call on Monday for credit facility lenders, a market source, adding that details on the transaction have not yet surfaced.

Bank of America Merrill Lynch is leading the deal.

Talbots is a Hingham, Mass.-based specialty retailer and direct marketer of women's apparel, shoes and accessories.

Polymer closes

In other happenings, Polymer Group Inc. completed its $283 million add-on covenant-light term loan due December 2019, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the loan is Libor plus 425 bps with a 1% Libor floor, in line with the existing term loan, and it was sold at an original issue discount of 99¾. There is 101 soft call protection for six months.

During syndication, the add-on term loan was upsized from $70 million and the discount tightened from the 99½ area.

Jefferies Finance LLC was the lead on the deal that is being used to fund the acquisition of Dounor SAS, redeem $200 million of 7¾% senior secured notes due 2019 and for general corporate purposes.

Polymer Group is a Charlotte, N.C.-based developer, producer and marketer of specialty materials used in infection prevention, personal care and high-performance solutions. Dounor is a Neuville en Ferrain, France-based manufacturer of materials used in hygiene, health care and industrial applications.

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