Arbor Pharmaceuticals, Give & Go break; AMC trades up; Texas Competitive, Printpack set talk

By Sara Rosenberg

New York, July 12 – Arbor Pharmaceuticals LLC finalized the original issue discount on its term loan B at the wide end of revised guidance and then the debt freed up for trading on Tuesday, and Give & Go Prepared Foods Corp.’s term loan hit the secondary as well.

Also in trading, AMC Entertainment Holdings Inc.’s term loan gained some ground after the company announced plans to acquire Odeon & UCI Cinemas Group.

Moving back to the primary market, Texas Competitive Electric Holdings Co. LLC (TCEH) and Printpack Inc. released price talk with launch, and Sterling Talent Solutions joined this week’s new issue calendar.

Arbor sets OID

Arbor Pharmaceuticals firmed the original issue discount on its $500 million seven-year covenant-light term loan B at 94, according to a market source. Revised discount talk had been 94 to 95, and initial talk was 99.

Pricing on the term loan is Libor plus 500 basis points with a 1% Libor floor, and the debt has 101 soft call protection for one year.

Previously in syndication, pricing on the term loan was lifted from talk of Libor plus 425 bps to 450 bps, the call protection was extended from six months, amortization was changed to 2.5% in years one and two and 5% thereafter, the 50 bps MFN was set for life, the accordion was revised to $150 million plus unlimited amounts subject to 3.25 times first-lien leverage, and the unlimited debt incurrence was set at up to 6 times total leverage.

Additionally, earlier in syndication, the excess cash flow sweep was changed to 75%, with step-downs to 50% at first-lien leverage of 2 times, 25% at 1.75 times first-lien leverage and 0% at 1.5 times first-lien leverage, the available amount starter basket was modified to $50 million with no grower, mandatory prepayments were revised to 100% of asset sale proceeds with no step and the reinvestment period for asset sale proceeds was reduced.

Arbor frees up

With final terms in place, Arbor Pharmaceuticals’ term loan B made its way into the secondary market on Tuesday, and levels were quoted at 94½ bid, 95½ offered, the source added.

In addition to the term loan B, the company’s $575 million credit facility (B1/BB-) includes a $75 million five-year revolver.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co., RBC Capital Markets, Mizuho and KKR Capital Markets are leading the deal that will be used to help fund the acquisition of XenoPort Inc. for $7.03 per share in cash, or a total equity value of about $467 million.

Closing is expected in the third quarter, subject to certain customary conditions.

Arbor Pharmaceuticals is an Atlanta-based pharmaceutical company currently focused on the cardiovascular, hospital and pediatric markets. XenoPort is a Santa Clara, Calif.-based biopharmaceutical company.

Give & Go hits secondary

Give & Go Prepared Foods’ $375 million seven-year first-lien covenant-light term loan (B1/B) began trading too, with levels quoted at 99¼ bid, par offered, a trader said.

Pricing on the term loan is Libor plus 550 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

Recently, pricing on the loan was lifted from talk of Libor plus 450 bps to 475 bps, the MFN sunset was removed so the deal has 50 bps MFN for life, the accordion was modified to $70 million plus unlimited amounts subject to 4 times first-lien net leverage and 5.5 times total net leverage, the asset sale step-downs were eliminated, and debt incurrence was set at 4 times first-lien net leverage and 5.5 times total net leverage.

Also during syndication, the EBITDA grower was removed from the $15 million restricted payment general basket, the EBITDA grower was eliminated from the $20 million available amount starter basket, and the available amount leverage governor was reduced to 4.75 times from 5 times.

Give & Go funding buyout

Proceeds from Give & Go’s term loan will be used to help fund its acquisition by Thomas H. Lee Partners LP from Omers Private Equity.

Deutsche Bank Securities Inc., Antares Capital, BMO Capital Markets and HSBC Securities (USA) Inc. are leading the debt.

Closing is expected at the end of July, subject to customary conditions.

Give & Go is a Toronto-based manufacturer of value-added baked goods.

AMC loan rises

In more secondary happenings, AMC Entertainment’s term loan strengthened to 101 bid, 101½ offered from 100¼ bid, 101 offered after the company revealed that it is buying Odeon & UCI Cinemas from Terra Firma, according to a trader.

The transaction is valued at about £921 million, comprised of £500 million for the equity, 75% in cash and 25% in stock consideration, subject to lock-ups, and the assumption of £407 million of net debt as of March 31 to be simultaneously refinanced at closing.

To help fund the acquisition, AMC has received from Citigroup Global Markets Inc. a commitment for a $525 million incremental term loan B under the accordion in its existing credit agreement and a $675 million subordinated bridge loan. Permanent financing for the transaction will include a term loan and bonds.

Closing is expected in the fourth quarter, subject to antitrust clearance by the European Commission and consultation with the European Works Council.

Leawood, Kan.-based AMC and London-based Odeon & UCI are theater exhibitors.

BWIC, OWIC emerge

A roughly $28 million Bid Wanted In Competition was announced, with bids due at noon ET on Wednesday, a trader said.

The BWIC includes nine issuers – Alstom Auxiliary Components, Appvion Inc., Arch Coal Inc., Autoparts Holdings, Chromaflo Technologies LLC, Fieldwood Energy LLC, Jason Inc., Ocean Rig UDW Inc. and Reddy Ice Corp.

Also, a $732 million Offers Wanted In Competition surfaced in the morning, with offers due at noon ET on Tuesday, another trader remarked.

Some of the issuers in the OWIC were Albertson’s LLC, AMC Entertainment Inc., Avago Technologies Cayman Finance Ltd., First Data Corp., MGM Growth Properties Operating Partnership LP, ON Semiconductor Corp., Prime Security Services Borrower LLC, SS&C Technologies Inc. and Wash MultiFamily Acquisitions Inc.

There were about 269 issuers in the OWIC, the trader added.

Texas Competitive launches

Returning to primary happenings, Texas Competitive Electric Holdings came out with price talk of Libor plus 450 bps with a 1% Libor floor and an original issue discount of 98.5 to 99 on its $2.85 billion seven-year covenant-light term loan B and $650 million seven-year covenant-light term loan C that launched with an afternoon bank meeting, according to a market source.

The term loans have 101 soft call protection for six months, and amortization on the term loan B is 1% per annum, while the term loan C has no amortization until the term loan B is repaid.

The company’s $4.25 billion senior secured credit facility (Baa3/BB-) also includes a $750 million five-year revolver.

Commitments are due on July 26, with closing targeted for the week of August 1.

Texas Competitive leads

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, UBS Investment Bank and Natixis are leading Texas Competitive’s credit facility.

Proceeds will be used to refinance an existing debtor-in-possession financing facility and then will convert to a permanent exit facility upon the company’s emergence from bankruptcy, which is expected before year end.

Gross leverage upon emergence from bankruptcy is anticipated to be 1.9x and net leverage is expected at 1.5x, the company said in a filing with the Securities and Exchange Commission.

Texas Competitive is a Dallas-based power generation company.

Printpack discloses talk

Printpack held its bank meeting, launching its $250 million seven-year term loan B (B2/BB) with talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due on July 18, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing first-and second-lien term loan debt.

Printpack is an Atlanta-based manufacturer of flexible and specialty rigid packaging.

Sterling Talent readies loan

Sterling Talent Solutions set a lender call for 11 a.m. ET on Wednesday to launch a $50 million add-on term loan (B), according to a market source.

Goldman Sachs & Co. and KeyBanc Capital Markets are leading the debt that will be used to repay existing revolver borrowings.

Sterling Talent Solutions is a Seattle-based provider of background screening solutions.

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