Crosby, Northeast Wind, Active Network break; primary busy with deal changes and launches

By Sara Rosenberg

New York, Nov. 7 - Crosby Worldwide Ltd. reduced pricing on its second-lien term loan, tightened original issue discounts on its first- and second-lien loans and then made its way into the secondary market on Thursday, and Northeast Wind Capital II LLC and Active Network Inc. freed up too.

In more happenings, Fortescue Resources trimmed the spread on its term loan and extended the maturity, Norcraft Cos. Inc. lowered the coupon and modified the original issue discount on its term loan, and KIK Custom Products Inc. updated discounts on its add-on debt.

In addition, Alvogen Pharma U.S. Inc. firmed the issue price on its loan while moving up the commitment deadline, and Blackboard Inc. increased its term loan B-3 size, set the Libor floor at the low end of guidance and tightened the discount.

Also, TNT Crane & Rigging Inc. (North American Lifting Services Holdings Inc.), Murray Energy Corp., Templar Energy LLC, Del Monte Foods Consumer Products Inc. and Leslie's Poolmart Inc. came out with talk as their deals were presented to lenders during the session, and E.W. Scripps joined the forward calendar.

Crosby revised again

Crosby cut pricing on its $90 million eight-year second-lien term loan (Caa1/CCC+) to Libor plus 600 basis points from adjusted talk of Libor plus 650 bps and initial talk of Libor plus 700 bps and moved the original issue discount to 99 7/8 from revised talk of 99½ and initial talk of 99, according to a market source.

The second-lien term loan continues to have a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

In addition, the company added a step-down to its $560 million seven-year first-lien term loan (B1/B) to Libor plus 275 bps at 4.5 times net leverage and tightened the discount to 99 7/8 from revised talk of 99¾ and initial guidance of 991/2, the source said.

The first-lien term loan is still priced at Libor plus 300 bps with a 1% Libor floor and has 101 soft call protection for six months.

Earlier in syndication, pricing on the first-lien term loan reduced from from Libor plus 325 bps and the tranche was upsized from $530 million as the second-lien loan was downsized from $120 million.

Crosby hits secondary

With final terms in place, Crosby's loans broke for trading late Thursday, with the first-lien term loan seen at par bid, par ½ offered and the second-lien term loan seen at 101½ bid, 102½ offered, a trader remarked/

Along with the term loans, Crosby's $715 million senior secured credit facility includes a $65 million five-year revolver (B1/B).

Morgan Stanley Senior Funding Inc., UBS Securities LLC, KKR Capital Markets, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to fund the buyout of the Crosby Group and Acco Material Handling Solutions by KKR from Melrose Industries plc for about $1 billion.

Closing is expected this quarter, subject to customary regulatory approvals.

Crosby is a Tulsa, Okla.-based provider of highly engineered products for lifting and rigging applications across the oil and gas, construction, mining and industrial sectors. Acco is a York, Pa.-based provider of custom-built specialty material handling equipment, including a full line of hoists, industrial cranes, monorails, carts and trailers.

Northeast Wind starts trading

Northeast Wind Capital $320 million seven-year senior secured term loan B freed up in the morning, with levels quoted at 99½ bid, par ½ offered, a market source said.

Pricing on the loan is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

Prior to breaking, it was revealed that the loan size was increased from $315 million, pricing firmed at the low end of the Libor plus 400 bps to 425 bps talk, and the call protection was revised from non-callable for one year, then at 102 in year two, another source remarked.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BNP Paribas Securities Corp., KeyBanc Capital Markets LLC, Union Bank, CIT Group and ICBC are leading the deal that will be used to refinance existing debt.

Closing is expected mid-next week.

Northeast Wind Capital, the owner of a portfolio of wind projects, is a joint venture between First Wind Holdings and Emera Inc. First Wind owns 51% of the portfolio, and Emera owns the remaining 49%.

Active Network frees up

Active Network's credit facility began trading as well, with the $342.5 million seven-year covenant-light first-lien term loan (B1/B+) quoted at par bid, par ½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

The company's $580 million credit facility also provides for a $45 million five-year revolver (B1/B+) and a $192.5 million eight-year covenant-light second-lien term loan (Caa1/CCC+).

The second-lien term loan is priced at Libor plus 850 bps with a 1% Libor floor, was sold at 99½ and has call protection of 103 in year one, 102 in year two and 101 in year three.

Recently, pricing on the first-lien term loan firmed at the low end of the Libor plus 450 bps to 475 bps talk, the second-lien term loan was upsized from $172.5 million, and the discounts on both tranches were changed from 99.

Active being acquired

Proceeds from Active Network's credit facility will be used to help fund its buyout by Vista Equity Partners for $14.50 per share in cash, or about $1.05 billion.

Other funds for the transaction will come from equity, the amount of which was reduced by $20 million due to the earlier second-lien term loan upsizing.

Bank of America Merrill Lynch, RBC Capital Markets LLC and BMO Capital Markets Corp. are leading the deal.

Closing is expected by the end of this quarter, subject to satisfaction of a minimum tender condition, expiration or termination of any waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, receipt of financing and other customary conditions.

Active Network is a San Diego-based provider of cloud-based activity and participant management services.

Mohegan inches up

Also in trading, Mohegan Tribal Gaming Authority's $730 million six-year term loan B was seen at par ½ bid, 101 offered, up from the par ¼ bid, par ¾ offered levels that were seen when the deal broke late Wednesday, a trader remarked.

The term B is priced at Libor plus 450 bps with a 1% Libor floor and was sold at a discount of 99. There is hard call protection of 102 in year one and 101 in year two.

During syndication, the B loan was upsized from $465 million, the spread was set at the tight end of the Libor plus 450 bps to 475 bps guidance and the Libor floor was reduced from 1.25%.

The company's $955 million credit facility also includes a $100 million five-year revolver, and a $125 million five-year term loan A that was downsized during syndication from $150 million.

RBS Securities Inc., Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc., Credit Agricole and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt, including, as a result of the term loan B upsizing, second-lien notes.

Mohegan is an Uncasville, Conn.-based operator of gaming and entertainment enterprises.

Fortescue flexes

Back in the primary, Fortescue Resources reduced pricing on its $4.95 billion senior secured covenant-light term loan (Ba1/BBB-) to Libor plus 325 bps, subject to a leverage-based grid, from Libor plus 375 bps, and pushed out the maturity to June 30, 2019 from five years, a market source said.

As before, the term loan has a 1% Libor floor, an original issue discount of 99¾ and 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Thursday, the source remarked.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing term loan due October 2017 that is priced at Libor plus 425 bps with a 1% Libor floor.

Fortescue is an East Perth, Australia-based iron ore producer.

Norcraft trims pricing

Norcraft lowered the spread on its $150 million seven-year covenant-light term loan (B2/BB-) to Libor plus 425 bps from Libor plus 450 bps and moved the original issue discount to 99½ from 99, according to a market source.

The 1% Libor floor and 101 soft call protection for six months on the term loan were left unchanged.

RBC Capital Markets LLC and KeyBanc Capital Markets LLC are leading the $175 million credit facility, which also includes a $25 million asset-based revolver

Proceeds from the credit facility and an initial public offering of common stock will be used to redeem 10½% senior secured second-lien notes due 2015 on or shortly after Dec. 15, 2013 and purchase at least a nominal interest in Norcraft Cos. LLC following the closing of the offering.

Norcraft is an Eagan, Minn.-based manufacturer of kitchen and bathroom cabinetry.

KIK finalizes OID's

KIK Custom Products set the original issue discount on its fungible $225 million add-on first-lien term loan (B2/B-) due May 23, 2019 at 971/2, the high end of the 97½ to 98 talk, according to a market source. The debt is priced at Libor plus 425 bps with a 1.25% Libor floor and has 101 soft call protection through May 2014, in line with the company's existing first-lien term loan.

Meanwhile, the discount on the fungible $50 million add-on second-lien term loan (Caa2/CCC) due Nov. 23, 2019 was changed to 98½ from talk of 97½ to 98, the source said. Like the existing second-lien loan, this add-on debt is priced at Libor plus 825 bps with a 1.25% Libor floor and has call protection of 103 through May 2014, then 102 for a year and 101 for a year.

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

Commitments were due at 5 p.m. ET on Thursday.

KIK buying BioLab

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 firms discount

Alvogen Pharma finalized the original issue discount on its $60 million add-on term loan B due May 2018 at 981/2, the tight end of the 98 to 98½ talk, and accelerated the commitment deadline to noon ET on Friday from noon ET on Nov. 15, a market source said.

Pricing on the add-on is Libor plus 575 bps with a 1.25% Libor floor, in line with existing term loan B pricing, and the debt is non-callable until May 2014 and then has 101 hard call protection until May 2015.

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

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

Blackboard changes come out

Blackboard lifted its term loan B-3 to $872 million from $867.2 million, set the Libor floor at 1%, the low end of the 1% to 1.25% talk, and revised the original issue discount to 99 7/8 from 993/4, according to a market source.

Unchanged was pricing of Libor plus 375 bps and the 101 soft call protection for six months.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to reprice the company's existing term loan B-2 from Libor plus 475 bps with a 1.5% Libor floor.

Blackboard is a Washington, D.C.-based provider of enterprise software applications and related services to the education industry.

TNT Crane releases talk

TNT Crane held its bank meeting on Thursday morning, launching its $400 million seven-year first-lien term loan B (B1) with talk of Libor plus 375 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.

Regarding the $170 million eight-year second-lien term loan (Caa1), it was launched with talk of Libor plus 775 bps with a 1% Libor floor, a discount of 98½ to 99 and call protection of 102 in year one and 101 in year two, the source said.

The company's $645 million credit facility also includes a $75 million five-year revolver (B1).

Commitments are due on Nov. 21, the source added.

Goldman Sachs Bank USA, Macquarie Capital, RBC Capital Markets and Stifel are leading the deal that will be used to help fund the buyout of the company by First Reserve and management from Odyssey Investment Partners.

Closing is expected by year-end, subject to certain regulatory approvals.

TNT is a Houston-based provider of lifting services and equipment to customers in the energy and industrial infrastructure end markets.

Murray Energy guidance

Murray Energy disclosed talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $1.02 billion six-year first-lien term loan B that launched to investors, according to a market source.

Commitments are due on Nov. 19, the source said.

The company's $1.62 billion credit facility also includes a $200 million ABL revolver, and a $400 million seven-year second-lien term loan that has already been placed and is priced at Libor plus 850 bps with a 1% Libor floor.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal, which will be used to help fund the acquisition of Consolidation Coal Co. from Consol Energy Inc. for $3.5 billion, including $2.4 billion of Consol balance sheet liabilities.

Closing is expected by year-end, subject to expiration of the Hart Scott Rodino Antitrust Improvements Act waiting period and other customary conditions. There is no financing condition.

Murray Energy is a St. Clairsville, Ohio-based coal company.

Templar details surface

Templar Energy launched its new term loan, which surfaced as a $700 million seven-year covenant-light senior secured second-lien tranche (B3) talked at Libor plus 700 bps with a 1% Libor floor, an original issue discount of 98 and call protection of 102 in year one and 101 in year two, according to a market source.

The company's $1 billion credit facility also includes a $300 million reserve-based revolver, the source said.

Commitments for the term loan are due on Nov. 19 and allocations are expected on Nov. 21.

Proceeds will be used to help fund the $1 billion acquisition of oil and gas assets located in the Texas Panhandle Area from Forest Oil Corp., which is expected to close on Nov. 25.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, Morgan Stanley Senior Funding Inc. and Natixis are leading the deal.

Templar Energy is an Oklahoma City-based exploration and production company.

Del Monte reveals terms

Del Monte Foods Consumer Products disclosed structure and price talk on its credit facility with its bank meeting, and is asking for commitments by Nov. 18, according to a market source.

The $1.28 billion deal consists of a $350 million ABL revolver, a $650 million seven-year covenant-light first-lien term loan talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, and a $280 million 71/2-year covenant-light second-lien term loan talked at Libor plus 775 bps with a 1% Libor floor, a discount of 98 to 98½ and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc. and KKR Capital Markets LLC are leading the facility, with Citi left on the first-lien and Morgan Stanley left on the second-lien loan.

Proceeds will help fund the $1.68 billion acquisition of Del Monte Foods' consumer food business by Del Monte Pacific Ltd., which is expected to close no later than the first quarter of 2014, subject to regulatory approvals and customary conditions.

Del Monte Foods Consumer is a packaged goods and fruit and vegetable company. Singapore-based Del Monte Pacific is a group of companies focused on healthy food and beverage products.

Leslie's repricing

Leslie's Poolmart launched with a call the repricing of its $610.5 million term loan to Libor plus 325 bps with a 1% Libor floor from Libor plus 400 bps with a 1.25% Libor floor, according to a market source.

The repriced loan is being offered at par and has 101 soft call protection for six months, the source said.

Bank of America Merrill Lynch is leading the deal.

Early in the year, the company approached lenders with a term loan repricing that was talked at Libor plus 300 bps to 325 bps with a 1% Libor floor and a par offer price, but that deal was pulled in February.

Leslie's Poolmart is a Phoenix-based retailer of swimming pool supplies and related products.

Energy Transfer leads emerge

In other news, a list of leads on Energy Transfer Equity LP's $900 million six-year first-lien term loan came out, with Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs Banks USA joining left lead Credit Suisse Securities (USA) LLC as joint global coordinators and joint lead arrangers, according to a market source.

Other joint lead arrangers on the deal are Bank of America Merrill Lynch, Bank of Tokyo-Mitsubishi, Barclays, Mizuho Securities USA Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets, RBS Securities Inc. and UBS Securities LLC.

As previously reported, the term loan, which launched with a call in the afternoon, is talked at Libor plus 300 bps with a 0.75% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months.

Commitments are due on Nov. 13.

Energy Transfer refinancing

Proceeds from Energy Transfer Equity's term loan will be used to help refinance an existing $900 million senior secured term loan due March 2017 and for general partnership purposes, including possibly funding some or all of the company's previously announced tender offer for up to $400 million of its $1.8 billion 7½% senior notes due 2020.

The tender offer will expire on Nov. 27.

Closing is expected to occur in the first week of December.

With the new term loan, the company is finalizing a new up to $600 million five-year revolver.

Energy Transfer Equity is a Dallas-based master limited partnership that owns natural gas, natural gas liquids, refined products and crude oil pipelines.

GlobalLogic sets deadline

GlobalLogic launched its $185 million senior secured credit facility with a bank meeting in the morning and asked investors to get their commitments in by Nov. 21, according to a market source.

The facility consists of a $25 million five-year revolver and a $160 million 51/2-year term loan B.

Price talk on the deal is not yet available as the company is waiting on ratings, the source said.

RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading the transaction that will be used to help fund the buyout of the company by ODSA Topco Ltd., a company backed by Apax Partners.

Equity will be 65% of the capitalization and net leverage is 3.0 times based on last-12-months Sept. 30 EBITDA.

Closing is expected by year-end, subject to customary conditions.

GlobalLogic is a McLean, Va.-based full-lifecycle product development services company.

E.W. Scripps readies refi

E.W. Scripps set a bank meeting for 9:30 a.m. ET on Tuesday to launch a $275 million senior secured credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $75 million five-year revolver, and a $200 million covenant-light seven-year term loan B talked at Libor plus 275 bps with a 0.75% Libor floor and 101 soft call protection for six months, the source said.

Original issue discount talk on the B loan is still to be determined but is expected to come out around 991/2, the source continued.

SunTrust Robinson Humphrey Inc. is leading the deal for the Cincinnati-based media company.

Ratings are expected in the mid-to-low double B's.

Senior and total pro forma leverage is expected to be 1.9 times, the source added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.