Texas Competitive frees up; Gulf Finance, Leslie’s Poolmart, Aristocrat, Air Medical launch

By Sara Rosenberg

New York, July 27 – Texas Competitive Electric Holdings Co. LLC’s credit facility surfaced in the secondary market on Wednesday afternoon, and the term loan B and term loan C debt were trading as a strip above their original issue discount.

Meanwhile, in the primary market, Gulf Finance LLC, Leslie’s Poolmart Inc., Aristocrat Leisure Ltd. and Air Medical Group Holdings Inc. released price talk on their deals, and ION Trading Technologies, PolyOne Corp. and Infiltrator Water Technologies LLC joined this week’s new issue calendar.

Texas Competitive breaks

Texas Competitive Electric Holdings’ credit facility began trading on Wednesday, with strip of $2.85 billion seven-year covenant-light term loan B and $650 million seven-year covenant-light term loan C debt quoted at par bid, 100½ offered, according to a trader.

Pricing on the term loans is Libor plus 400 basis points with a 1% Libor floor, and they were sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

Amortization on the term loan B is 1% per annum, and the term loan C has no amortization until the term loan B is repaid.

On Tuesday, pricing on the term loans was lowered from Libor plus 450 bps, the discount finalized at the tight end of the 98.5 to 99 talk, and the MFN sunset was eliminated.

In addition to the term loans, the company’s $4.25 billion senior secured credit facility (Baa3/BB-) includes a $750 million five-year revolver.

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 1.9 times, and net leverage is expected at 1.5 times.

Texas Competitive is a Dallas-based power generation company.

Gulf Finance sets talk

Over in the primary market, Gulf Finance presented its $1.2 billion seven-year senior secured term loan B (BB-) to lenders on Wednesday morning, and with the event, talk emerged at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, a market source said.

Commitments are due on Aug. 10, the source added.

Morgan Stanley Senior Funding Inc., Barclays and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt at Penn Products Terminals LLC and Chelsea Petroleum Products I LLC, to make a distribution to the sponsor and for general corporate purposes.

Leslie’s releases guidance

Leslie’s Poolmart came out with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $780 million seven-year covenant-light term loan B (B1) that launched with a lender call during the session, a source remarked.

Commitments are due by the close of business on Aug. 8, the source added.

Nomura is leading the deal that will be used with $420 million of privately placed unsecured notes and cash on hand to refinance existing debt and fund a dividend.

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

Aristocrat details emerge

Aristocrat Leisure held its lender call in the morning, launching a $1.07 billion first-lien term loan due October 2021 with talk of Libor plus 300 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

The deal is repricing the company’s existing first-lien term loan from Libor plus 375 bps with a 1% Libor floor.

Commitments are due at noon ET on Aug. 3, the source said.

UBS Investment Bank and Goldman Sachs & Co. are leading the loan.

Aristocrat Leisure is a Sydney, Australia-based provider of gaming services.

Air Medical launches

Air Medical Group released talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months on its $175 million senior secured incremental first-lien covenant-light term loan B-1 (B2/B) due April 28, 2022 that launched with an afternoon call, a source said.

Commitments are due on Tuesday, the source added.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets LLC are leading the deal that will be used with cash on hand to fund the acquisition of Calstar, fund a one-time pro rata share repurchase among equity holders and pay related fees and expenses.

Air Medical is a Lewisville, Texas-based provider of air ambulance services. Calstar is a McClellan, Calif.-based regional air ambulance service.

ION Trading readies deal

Also on the new deal front, ION Trading set a lender call for 9 a.m. ET on Thursday to launch €240 million equivalent in senior secured bank debt, split between a €40 million revolver and a €200 million equivalent add-on term loan with the currency still to be determined, a market source remarked.

Furthermore, the company is looking to extend its existing loan maturities by two years, the source added.

UBS Investment Bank is leading the deal that will be used to repay existing debt and to fund a dividend.

ION Trading is a software provider of trading, treasury and workflow solutions.

PolyOne on deck

PolyOne emerged with plans to hold a call for existing lenders at 10 a.m. ET on Thursday to launch a new loan, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

The company said in a 10-Q filed with the Securities and Exchange Commission on Wednesday that it plans to get a $100 million add-on term loan to repay borrowings under its senior secured revolving credit facility that were used to fund the acquisitions of Gordon Composites and Polystrand for an aggregate purchase price of $85.5 million.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials, services and solutions.

Infiltrator plans call

Infiltrator Water Technologies set a lender call for 2 p.m. ET on Thursday to launch a $243 million first-lien term loan due May 27, 2022 talked at Libor plus 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Aug. 3, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice the company’s existing first-lien term loan.

Infiltrator Water is an Old Saybrook, Conn.-based provider of engineered plastic chambers, synthetic aggregate leach fields, tanks and accessories for the onsite wastewater and stormwater industries.

ExamWorks closes

In other news, the buyout of ExamWorks Group Inc. by Leonard Green & Partners LP for $35.05 per share in cash, for a total transaction value of about $2.2 billion, has been completed, a news release said.

To help fund the transaction, ExamWorks got a new $920 million credit facility (B1/B) that includes a $150 million five-year revolver and a $770 million seven-year first-lien covenant-light term loan.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk of Libor plus 400 bps to 425 bps and the discount firmed at the tight end of the 99 to 99.5 talk.

Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey Inc. led the deal.

ExamWorks is an Atlanta-based provider of independent medical examinations, peer reviews, bill reviews, Medicare compliance services and IME-related services.

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