Tank Holding discloses talk; Consol Energy loan details emerge; Quick Base joins calendar

By Sara Rosenberg

New York, March 11 – In the primary market on Monday, Tank Holding Corp. released price talk on its first-lien term loan with launch, and Consol Energy Inc. came out with details on its proposed loan transaction in connection with its lender call.

Furthermore, Quick Base surfaced with plans to bring a new first-lien transaction to market later this week to support its buyout by Vista Equity Partners.

Tank reveals guidance

Tank Holding held its lenders’ presentation on Monday and announced talk on its $480 million seven-year covenant-lite first-lien term loan (B2/B) at Libor plus 425 basis points to 450 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $710 million of senior secured credit facilities also include a $60 million five-year revolver (B2/B) and a $170 million privately placed second-lien term loan.

Commitments are due at noon ET on March 22, the source said.

Morgan Stanley Senior Funding Inc., Antares Capital and Carlyle Global Credit Investment Management LLC are leading the deal that will be used to help fund the buyout of the company by Olympus Partners.

Tank Holding is a manufacturer of rotationally molded poly and welded steel bulk storage and material handling products. The company has headquarters in St. Bonifacius, Minn., and Lincoln, Neb.

Consol seeks term B

Consol Energy launched on its afternoon call a $300 million 5.5-year covenant-lite term loan B talked at Libor plus 400 bps to 425 bps with a 0% Libor floor, a par issue price and 101 soft call protection for one year, a market source remarked.

Commitments are due at 5 p.m. ET on March 20, the source added.

Citigroup Global Markets Inc., PNC Capital Markets, Huntington Bank, Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith, Inc. are leading the deal that will be used to amend and extend an existing term loan B priced at Libor plus 600 bps with a 1% Libor floor.

Closing is expected during the week of March 25.

Consol is a Canonsburg, Pa.-based producer and exporter of high-Btu bituminous thermal and crossover metallurgical coal.

Quick Base on deck

Quick Base set a lender meeting for Thursday to launch $315 million of first-lien credit facilities, split between a $40 million revolver and a $275 million covenant-lite first-lien term loan, according to a market source.

The company is also getting a $140 million covenant-lite second-lien term loan that has been privately placed.

Golub Capital and Neuberger Berman are the joint lead arrangers and joint bookrunners on the deal, with Golub the left lead. Carlyle Global Credit is serving as a joint lead arranger and administrative agent on the second-lien term loan.

The new debt will be used to help fund the buyout of the company by Vista Equity Partners. Quick Base’s current investor, Welsh, Carson, Anderson & Stowe, is reinvesting in the company as part of the transaction.

Quick Base is a Cambridge, Mass.-based provider of platform-as-a-service application development tools that allow non-technical users to develop and deploy their own highly configurable apps that streamline a variety of day-to-day functions.

Tallgrass closes

In other news, the acquisition of a controlling interest in Tallgrass Energy LP by Blackstone Infrastructure Partners has been completed, a news release said.

To help fund the transaction, Tallgrass got a new $1,155,000,000 seven-year first-lien term loan (B1/B+/BB-) that is priced at Libor plus 475 bps with a 25 bps step-down at 3.5 times total net leverage and a 0% Libor floor. The loan was sold at an original issue discount of 99.25 and includes 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from Libor plus 525 bps, the step-down was added, the discount was tightened from 98.5, and the call protection was shortened from one year.

Credit Suisse Securities, Citigroup Global Markets, Jefferies LLC, MUFG and Blackstone led the debt.

Tallgrass Energy is a Leawood, Kan.-based growth-oriented midstream energy infrastructure company.

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