Terex, KIK Custom Products, Alvogen break; Arby's, CSC ServiceWorks revisions emerge

By Sara Rosenberg

New York, Nov. 8 - Terex Corp.'s term debt surfaced in the secondary market on Friday, KIK Custom Products Inc.'s incremental loans broke and Alvogen Pharma U.S. Inc.'s add-on began trading after an upsizing earlier in the day.

In more happenings, Arby's (ARG IH Corp.) lowered the spread on its term loan, added a leverage-based step-down, tightened the discount and shortened the call protection, and CSC ServiceWorks Inc. (Coinmach) modified the original issue discount on its incremental term loan.

Also, Internap Network Services Corp., Nice-Pak Products and Progressive Waste Solutions Ltd. disclosed talk with launch, and Brand Energy & Infrastructure Services Inc., Tallgrass Operations LLC, Grosvenor Capital Management Holdings LLLP and Vantage Drilling Co. are getting ready to bring new deals to market.

Terex starts trading

Terex's $343,221,505 term loan due April 2017 freed up for trading on Friday, with levels seen at par bid, par ¾ offered, according to a trader.

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

The company is also getting a €113,474,156 term loan due April 2017 that is priced at Euribor plus 325 bps with a 0.75% floor and was issued at par. This debt has 101 soft call protection for one year as well.

During syndication, the spread on the U.S. term loan was reduced from Libor plus 300 bps and the spread on the euro term loan was lowered from Euribor plus 350 bps.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing U.S. term loan that is priced at Libor plus 350 bps with a 1% Libor floor and an existing euro term loan that is priced at Euribor plus 400 bps with a 1% floor.

Terex is a Westport, Conn.-based equipment manufacturer.

KIK frees up

KIK Custom Products' add-on term loans also broke, with the fungible $225 million add-on first-lien term loan (B2/B-) due May 23, 2019 quoted at 98 bid, 99 offered and the fungible $50 million add-on second-lien term loan (Caa2/CCC) due Nov. 23, 2019 quoted at 99½ bid, par ½ offered, according to a trader.

Pricing on the add-on first-lien term loan is Libor plus 425 bps with a 1.25% Libor floor, in line with the company's existing first-lien term loan, and it was sold at a discount of 971/2, after firming recently at the high end of the 97½ to 98 talk. There is 101 soft call protection through May 2014.

The add-on second-lien loan is priced at Libor plus 825 bps with a 1.25% Libor floor, in line with the existing second-lien loan, and it was sold at a discount of 981/2, following a recent tightening from talk of 97½ to 98. This tranche has call protection of 103 through May 2014, then 102 for a year and 101 for a year.

Included in the add-on loans is a ticking fee of half the spread from days 31 to 75 and the full spread thereafter.

KIK funding acquisition

Proceeds from KIK's $275 million of add-on term loans and $75 million of new cash equity will be used to fund the acquisition of BioLab, which is Chemtura Corp.'s consumer products business, for $315 million.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are leading the deal.

Pro forma leverage is 3.8 times through the first-lien debt and 5.5 times total.

Closing is targeted for Dec. 31, subject to customary conditions and regulatory approvals.

KIK is a Toronto-based contract and private label manufacturer of consumer, institutional and industrial products.

Alvogen upsizes, breaks

Alvogen Pharma increased its covenant-light add-on term loan B due May 2018 to $70 million from $60 million, while keeping pricing at Libor plus 575 bps with a 1.25% Libor floor and an original issue discount of 981/2, according to a market source. The debt is non-callable until May 2014 and then has 101 hard call protection until May 2015.

With final terms in place, the deal emerged in the secondary market with levels quoted at 99 bid, 99¾ offered, a source remarked.

Pricing on the add-on matches existing term loan B pricing, and the discount firmed the other day at the tight end of the 98 to 98½ talk.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the acquisition of Naprelan and Furadantin.

Alvogen is a Pine Brook, N.J.-based pharmaceuticals company.

Arby's reworked

Back on the new deal front, Arby's cut pricing on its $335 million seven-year first-lien term loan to Libor plus 400 bps from Libor plus 425 bps, added a step-down to Libor plus 375 bps at 3.5 times net total leverage or B2/B corporate ratings, revised the original issue discount to 99¾ from 99 and shortened the 101 soft call protection to six months from one year, according to a market source. The 1% Libor floor was unchanged.

The company's $370 million credit facility (B3/B) also includes a $35 million five-year revolver.

Recommitments were due at 2 p.m. ET on Friday, the source remarked.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the well received deal that will be used to fund a dividend to shareholders.

Arby's, owned by Roark Capital, is an Atlanta-based quick-service restaurant chain.

CSC tweaks discount

CSC ServiceWorks tightened the original issue discount on its $460 million incremental term loan B (B) to 99½ from the 99 area, according to a market source.

The loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with existing term loan B pricing, and has 101 soft call protection for six months from funding.

Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to help fund the acquisition of Mac-Gray Corp. for $21.25 per share, or about $524 million.

Closing is expected in the first half of 2014, subject to the adoption of the acquisition agreement by Mac-Gray's stockholders, regulatory approval and other customary conditions.

CSC is a Plainview, N.Y.-based provider of multi-family housing and commercial laundry solutions and air vending services. Mac-Gray is a Waltham, Mass.-based provider of laundry facilities management services.

Internap pricing

Internap Network Services held its bank meeting on Friday, launching its $300 million six-year term loan with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

By comparison, filings with the Securities and Exchange Commission had expected pricing on the term loan at Libor plus 425 bps with a 1% Libor floor, and the 101 soft call for one year.

The company's $350 million senior secured credit facility also includes a $50 million five-year revolver.

Leads, Jefferies Finance LLC and PNC Capital Markets LLC, are seeking commitments by Nov. 20, the source continued.

Proceeds will be used to fund the acquisition of iWeb, a Montreal-based hosting and cloud provider, for about$145 million, to refinance existing debt, and for working capital and general corporate purposes.

Closing is expected in December, subject to customary conditions.

Internap is an Atlanta-based provider of IT infrastructure services.

Nice-Pak guidance

Nice-Pak Products launched in the morning its $170 million six-year term loan B with talk of Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

In addition, the company's $60 million five-year asset-based revolver is being talked with a grid of Libor plus 150 bps to 200 bps based on availability and a 37.5 bps unused fee, the source said.

Commitments are due on Nov. 21.

RBC Capital Markets is leading the $230 million senior secured credit facility that will be used to refinance existing debt.

Nice-Pak is an Orangeburg, N.Y.-based manufacturer of wet wipes for baby and health care applications.

Progressive Waste talk

Progressive Waste Solutions launched with its call a repricing of its term loan that is talked at Libor plus 225 bps with a 0.75% Libor floor, an offer price of 99 7/8 to par and 101 soft call protection for six months, sources said.

By comparison, current pricing on the loan is Libor plus 275 bps with a 0.75% Libor floor.

Bank of America Merrill Lynch is leading the deal.

Progressive Waste is a Vaughan, Ont.-based full-service, vertically integrated waste management company.

Brand Energy on deck

Brand Energy & Infrastructure Services set a bank meeting for 10:30 a.m. ET on Tuesday to launch a $1,525,000,000 senior secured credit facility that consists of a $300 million revolver and a $1,225,000,000 term loan B, according to a market source.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs Bank USA, UBS Securities LLC, HSBC Bank USA, ING Capital LLC, Natixis, RBS Securities Inc., Société Générale, and SunTrust Robinson Humphrey Inc. are leading the deal.

Proceeds will be used to help fund the buyout of the company by Clayton, Dubilier & Rice from First Reserve, and merger with an infrastructure business that is being bought from Harsco Corp. for about $300 million plus Harsco will receive a 29% equity stake in the combined company.

Closing is expected by year-end, subject to customary conditions and regulatory approvals, as well as satisfactory conclusion of the relevant works council/trade union consultation procedures.

Brand Energy is an Atlanta-based provider of specialized industrial services to the energy and infrastructure sectors.

Tallgrass readies call

Tallgrass Operations will hold a call at 1:30 p.m. ET on Tuesday to launch a $618.4 million senior secured term loan B due Nov. 13, 2018, according to a market source.

Proceeds will be used to reprice the company's existing $468.4 million term loan from Libor plus 400 bps with a 1.25% Libor floor.

Also, the $150 million of incremental debt raised will be used to provide additional liquidity for the company's Pony Express project, for general corporate purposes and to fund other growth projects, the source said.

Barclays is leading the deal.

Tallgrass is an Overland Park, Kan.-based owner, operator, acquirer and developer of midstream energy assets.

Grsvenor joins calendar

Grosvenor Capital Management set a bank meeting for 1:30 p.m. ET in New York on Tuesday to launch a $485 million credit facility, according to a market source.

The facility consists of a $50 million five-year revolver and a $435 million seven-year first-lien covenant-light term loan, the source said.

Commitments are due on Nov. 21.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BMO Capital Markets and J.P. Morgan Securities LLC are leading the deal that will be used to fund the acquisition of the Customized Fund Investment Group, a private equity infrastructure and real estate investment management company, from Credit Suisse Group AG.

Grosvenor is a Chicago-based private equity and alternate investments fund-of-funds manager.

Vantage coming soon

Vantage Drilling scheduled a call for 11:30 a.m. ET on Tuesday to launch a new loan deal to existing and prospective lenders, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

No further details on the transaction are available, the source added.

Vantage Drilling is a Houston-based offshore drilling contractor.

Garda closes

In other news, Garda World Security Corp. completed its roughly $825 million senior secured credit facility (Ba3/B+) that includes a $150 million five-year revolver, a $540 million U.S. seven-year term loan and a C$135 million seven-year term loan B, a news release said.

Pricing on the U.S. term B is Libor plus 300 bps and pricing on the Canadian loan is BA plus 375 bps, with both having a 1% floor and sold at an original issue discount of 991/2. There is 101 soft call protection for one year on the term loans.

During syndication, the U.S. term loan was decreased from a revised amount of $600 million but increased from an initial amount of $525 million, and pricing was reduced from modified talk of Libor plus 375 bps and initial talk of Libor plus 325 bps. In addition, the Canadian loan was downsized from C$150 million, pricing on the Canadian tranche was lowered from revised talk of BA plus 425 bps but ended up in line with talk at launch, and the call protection on both term loans was extended from six months.

RBC Capital Markets LLC, Bank of America Merrill Lynch, TD Securities (USA) LLC and Mizuho Securities USA Inc. led the deal that is being used to refinance existing credit facility debt and senior unsecured notes due 2017 and fund the C$110 million acquisition of G4S Cash Solutions.

Garda is a Montreal-based provider of business and security services. G4S Cash is a provider of risk management and secure transit of valuables such as currency, diamonds, jewelry and more.

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