Goodpack, United Site, Guggenheim, St. George’s, Zest break; Orion, Element deals updated

By Sara Rosenberg

New York, Aug. 5 – Goodpack Ltd. (IBC Capital) moved some funds between its first- and second-lien term loans, updated pricing and discounts and then freed up for trading on Tuesday, and United Site Services Inc. (USS Parent Holding Corp.), Guggenheim Partners Investment Management Holdings LLC, St. George’s University and Zest Holdings LLC hit the secondary too.

In more happenings, Orion Engineered Carbons SA widened talk on its term loans, Element Materials Technology set the spread and offer price on its term loan at the low end of talk, Terex Corp. moved up the commitment deadline on its credit facility and Datapipe Inc. emerged with new deal plans.

Goodpack reworked, trades

Goodpack lifted its seven-year first-lien covenant-light term loan to $550 million from $520 million, set the spread at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and moved the original issue discount to 99¼ from 99, according to market sources.

In addition, the eight-year second-lien covenant-light term loan was trimmed to $170 million from $200 million, pricing was reduced to Libor plus 700 bps from talk of Libor plus 725 bps to 750 bps and the discount was modified to 99¼ from 99, sources said.

The term loans have a ticking fee of half the spread for 30 days from Sept. 12 and the full spread thereafter, but, the expected closing date is Sept. 8, sources continued.

As before, both loans have a 1% Libor floor, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Recommitments were due at noon ET on Tuesday. In the afternoon the deal began trading with the first-lien term loan quoted at 99 5/8 bid, par 1/8 offered by one trader and at 99¾ bid, par ¼ offered by a second trader, and the second-lien term loan quoted at 99½ bid, par ¼ offered.

Goodpack getting revolver

Along with the first- and second-lien term loans, Goodpack’s $835 million senior credit facility includes a $115 million revolver.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, DBS Bank Ltd., Goldman Sachs Bank USA, KKR Capital Markets LLC, Mizuho Bank Ltd., Macquarie Capital (USA) Inc. and Natixis are leading the deal, with Morgan Stanley the left lead on the first-lien debt and Credit Suisse the left lead on the second-lien debt.

Proceeds will be used to help fund the buyout of the company by KKR.

Goodpack is a Singapore-based operator of a fleet of nestable and collapsible intermediate bulk containers.

United Site revised, breaks

United Site Services raised pricing on its $175 million term loan and $40 million delayed-draw term loan to Libor plus 475 bps from Libor plus 425 bps and added a step-down to Libor plus 450 bps at 4 times total leverage, while keeping the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for six months intact, according to a market source.

Also, the delayed-draw availability was cut to 18 months from two years and the ticking fee was lifted to the full spread from half the spread for the first 180 days and the full spread thereafter.

With final terms in place, the term loan made its way into the secondary market and levels were seen at par bid, par ½ offered, the source added.

The company’s $265 million credit facility (B1/B) also includes a $50 million revolver.

GE Capital Markets is leading the deal that will be used with subordinated debt, of which $58.25 million is funded and $15 million is delayed-draw, to fund the buyout of the company by Calera Capital.

Senior leverage is 3.9 times, and total leverage is 5.25 times.

United Site Services is a San Luis Obispo, Calif.-based provider of portable sanitation services.

Guggenheim hits secondary

Guggenheim Partners Investment Management firmed the original issue discount on its fungible $250 million add-on covenant-light term loan at 99½, the low end of the 99¼ to 99½ talk, and then began trading with levels quoted at 99½ bid, 99 7/8 offered, a market source remarked.

The add-on is priced at Libor plus 325 bps with a 1% Libor floor, in line with the existing term loan.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and Fifth Third Securities Inc. are leading the deal that will be used for general corporate purposes.

Guggenheim Partners is a financial services firm with headquarters in New York and Chicago.

St. George’s tops OID

St. George’s University’s credit facility freed up as well, with the $250 million seven-year covenant-light term loan quoted at par ¼ bid, 101 offered, according to a trader.

Pricing on the loan is Libor plus 475 bps with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

Recently, pricing on the loan was reduced from Libor plus 500 bps and the discount was changed from 99.

The company’s $275 million credit facility also includes a $25 million revolver.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will be used for a recapitalization in connection with an equity investment.

St. George’s is a Grenada, West Indies-based for-profit medical, veterinary and arts and sciences school.

Zest frees up

Zest Holdings’ $160 million first-lien term loan B due August 2020 also broke, with levels seen at par ¼ bid, par ¾ offered, a trader said.

Pricing on the loan is Libor plus 425 bps with a 1% Libor floor and it was issued at par, after tightening last week from talk of 99½ to 99¾. There is 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B from Libor plus 550 bps with a 1% Libor floor.

Zest is an Escondido, Calif.-based manufacturer and distributor of overdenture attachment systems to the dental industry.

Orion tweaks talk

Back in the primary, Orion Engineered Carbons increased price talk on its €665 million equivalent seven-year term loan to Libor/Euribor plus 375 bps to 400 bps from Libor/Euribor plus 325 bps, and left the 1% floor, discount of 99½ and 101 soft call protection for six months unchanged, a source said.

Of the total term loan amount, about €265 million equivalent is expected to be denominated in dollars and the remainder will be in euros.

The €780 million credit facility also includes a €115 million multicurrency five-year revolver.

Recommitments are due at the end of the day on Thursday, the source continued.

Goldman Sachs Bank USA and UBS AG are the joint global coordinators and joint bookrunners on the deal, Barclays, JPMorgan and Morgan Stanley are joint bookrunners, and DZ Bank AG, Fifth Third Bank, HSBC Bank and Mediobanca SpA are mandated lead arrangers.

Orion, a Frankfurt, Germany-based supplier of Carbon Black, will use the proceeds to refinance existing debt, including €284 million of 10% senior secured notes due 2018 and $280 million of 9 5/8% senior secured notes due 2018.

Element finalizes pricing

Element Materials Technology firmed pricing on its $285 million seven-year covenant-light term loan at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, and the original issue discount at 99½, the tight end of the 99 to 99½ talk, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s $325 million credit facility (B2) also includes a $40 million five-year revolver.

RBC Capital Markets, BNP Paribas Securities Corp., GE Capital Markets and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt, to fund two tuck-in acquisitions and to pay a dividend.

Element is a global network of laboratories with experts specializing in materials testing, product qualification testing and failure analysis.

Terex changes deadline

Terex accelerated the commitment deadline on its $1.1 billion credit facility (Ba1/BBB-) to 5 p.m. ET on Thursday from Friday, according to a market source.

The facility consists of a $600 million revolver, a $230 million seven-year first-lien covenant-light term loan and a €200 million seven-year first-lien covenant-light term loan.

Talk on the U.S. term loan is Libor plus 275 bpswith a 0.75% Libor floor and an original issue discount of 99½ to 99¾, and the euro term loan is talked at Euribor plus 325 bps with a 0.75% floor and a discount of 99½ to 99¾. Both tranches have 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Commerz, Goldman Sachs Bank USA and RBS Securities Inc. are leading the deal that will be used to refinance existing debt.

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

Datapipe on deck

Datapipe set a call for 11 a.m. ET on Wednesday to launch $60 million in add-on term loans, according to a market source.

The debt consists of a $30 million add-on first-lien term loan and a $30 million add-on second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc., TD Securities (USA) LLC, GE Capital Markets Inc. and Jefferies Finance LLC are leading the deal that will be used to fund an acquisition.

Datapipe is a Jersey City, N.J.-based company that offers IT services.

Southcross closes

In other news, Southcross Energy Partners LP completed its combination with TexStar Midstream Services LP, a news release said.

For the transaction, the company got a new $570 million credit facility that includes a $120 million five-year revolver and a $450 million seven-year covenant-light term loan B (B1/B).

Pricing on the 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.

During syndication, pricing on the term loan was trimmed from Libor plus 475 bps, the discoutn was changed from 99 and the call protection was shortened from one year.

Wells Fargo Securities LLC, UBS AG and Barclays led the deal.

Southcross Energy is a Dallas-based provider of natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services.

Southcross Holdings details

Along with the combination of Southcross Energy with TexStar, a newly formed company, Southcross Holdings LP, gained ownership of 100% of the general partner of Southcross and equity interests in Southcross as well as former TexStar assets. EIG Global Energy Partners, Charlesbank Capital Partners and Tailwater Capital each indirectly own around one-third of Southcross Holdings.

To repay debt at BlackBrush TexStar, Southcross Holdings Borrower LP got a new $625 million credit facility that includes a $50 million super priority revolver and a $575 million seven-year first-lien term loan (B2/B-).

Pricing on the term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 call protection for one year.

During syndication, the term loan was upsized from $525 million, pricing was cut from Libor plus 550 bps, the discount was revised from 99 and the call protection was shortened from 102 in year one and 101 in year two.

UBS AG and Barclays led the deal for the Dallas-based midstream services company.

American Energy deal

American Energy – Marcellus LLC closed on its $1.2 billion of senior secured term loans, according to a news release.

The debt consists of a $750 million six-year first-lien covenant-light term loan (Ba3/B-) priced at Libor plus 425 bps with a 1% Libor floor and sold at an original issue discount of 99½, and a $450 million seven-year second-lien covenant-light term loan (Caa1/CCC) priced at Libor plus 750 bps with a 1% Libor floor and sold at a discount of 98½.

The first-lien loan has 101 soft call protection for six months, and the second-lien loan has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was lowered from Libor plus 450 bps and the discount tightened from 99, and pricing on the second-lien loan was cut from Libor plus 800 bps and the discount was modified from 98.

American Energy buys assets

Proceeds from American Energy – Marcellus’ loans were used to fund the acquisition of about 48,000 net acres of leasehold in Doddridge, Harrison, Marion, Tyler and Wetzel Counties, W.Va., from East Resources Inc. and an unnamed private company, and $300 million of the first-lien term loan was used to fund a capital expenditures reserve account.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Jefferies Finance LLC led the deal.

American Energy – Marcellus is an American Energy Partners LP platform company. Oklahoma City-based American Energy Partners was founded by Aubrey K. McClendon in April 2013 to capitalize on opportunities available in unconventional resource plays onshore in the United States.

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