Liberty Tire, Camin Cargo Control, OCI Beaumont free to trade; Aristotle revisions surface

By Sara Rosenberg

New York, June 30 – Liberty Tire Recycling widened the spread and original issue discount on its term loan and sweetened the call protection before the debt made its way into the secondary market on Tuesday, and Camin Cargo Control and OCI Beaumont LLC began trading as well.

Back in the primary market, Aristotle Corp. reduced pricing on its term loan, added a leverage-based step-down and tightened the original issue discount.

Liberty Tire reworked, breaks

Liberty Tire Recycling raised pricing on its $170 million five-year term loan (Caa1/B-) to Libor plus 800 bps from Libor plus 725 bps, changed the original issue discount to 96 from 98, and modified the call protection to non-callable for one year, then at 103 in year two and 101.5 in year three from 102 in year one and 101 in year two, according to a market source.

The term loan still has a 1% Libor floor.

The company’s $205 million credit facility also includes a $35 million asset-based revolver.

With final terms in place, the debt allocated and freed up for trading on Tuesday, with levels on the term loan quoted at 96 bid, 97 offered, a trader added.

Jefferies Finance LLC is leading the deal that will be used to refinance an existing credit facility and some second-lien PIK notes.

Liberty Tire is a Pittsburgh-based scrap tire collector and recycler.

Camin hits secondary

Camin Cargo Control’s $150 million six-year term loan began trading too, with levels quoted at 99 bid, 99¾ offered, a market source said.

Pricing on the loan is Libor plus 475 bps with a 1% Libor floor, and the debt was sold at an original issue discount of 99. There is 101 soft call protection for six months.

Citizens Bank is leading the deal that will be used to help fund the buyout of the company by Metalmark Capital.

Camin Cargo Control is a Linden, N.J.-based provider of inspection and laboratory testing services to the petroleum industry.

OCI tops issue price

OCI Beaumont’s fungible $50 million add-on term loan also broke, with levels quoted at 101 bid, 102 offered, according to a trader.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor, and it was issued at par after firming at the tight end of the 99.75 to par talk.

Bank of America Merrill Lynch is leading the deal that will be used for general corporate purposes.

OCI Beaumont is a Nederland, Texas-based ammonia and methanol production complex.

AlliedBarton holds steady

In more trading happenings, AlliedBarton Security Services’ term loans were relatively unchanged following news that the company is being acquired by Wendel, a source remarked.

The first-lien term loan was quoted at 99½ bid, 100¼ offered, versus 99 5/8 bid, 100¼ offered on Monday and the second-lien term loan was quoted at 99½ bid, 100½ offered, flat from prior levels, the source said.

Under the agreement, AlliedBarton is being bought from Blackstone for about $1.67 billion.

As part of the proposed acquisition, Wendel will make an equity investment of approximately $670 million for a 96% ownership in the company, alongside AlliedBarton’s management team.

Closing is expected by the end of the third quarter, subject to customary conditions and regulatory approvals.

AlliedBarton is a Conshohocken, Pa.-based security officer services company.

Aristotle reworks loan

Switching back to primary happenings, Aristotle cut pricing on its $130 million six-year term loan to Libor plus 450 bps from Libor plus 475 bps, added a step-down to Libor plus 425 bps based on leverage and moved the original issue discount to 99.5 from 99, 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 $160 million credit facility also includes a $30 million five-year revolver.

BNP Paribas Securities Corp. and GE Capital Markets are leading the deal that is being used to help fund the buyout of the company by Wasserstein & Co.

The credit facility funded and closed on Tuesday, but the deal has not yet allocated, the source said. Allocations, however, are targeted to go out in the next few days.

Aristotle is a Stamford, Conn.-based manufacturer and marketer of educational, health care, medical technology and agricultural products.

TI Automotive closes

In other news, the buyout of TI Automotive Ltd. by Bain Capital has been completed, a news release said, and for the transaction the company got a new credit facility that includes a $125 million five-year revolver (Ba3/BB), a $100 million asset-based revolver, a $965 million seven-year term loan B (Ba3/BB) and a €325 million seven-year term loan B (Ba3/BB).

Pricing on the term loan B debt is Libor/Euribor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for one year.

During syndication, the size of the U.S. term loan was revised from €620 million equivalent and the euro term loan was downsized from €450 million.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays, Mizuho Securities USA Inc., Goldman Sachs Bank USA, RBC Capital Markets LLC, UBS AG and Nomura led the deal.

TI Automotive is an Auburn Hills, Mich.-based provider of fluid storage, carrying and delivery systems to automotive manufacturers.

Lantheus Medical wraps

Lantheus Medical Imaging Inc. closed on its $365 million seven-year first-lien term loan (B3/B), according to a news release.

The term loan is priced at Libor plus 600 bps with a 1% Libor floor and was issued at a discount of 98.75. There is 101 soft call protection for six months.

During syndication, the spread was lifted from Libor plus 500 bps, the discount was moved from 99 and a total net leverage test starting at 6.25 times was added to the originally covenant-light loan.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Wells Fargo Securities LLC led the deal that was used with initial public offering proceeds and cash on hand to redeem $400 million of 9¾% senior notes due 2017 and to repay revolver borrowings.

Lantheus Medical is a North Billerica, Mass.-based developer, manufacturer, seller and distributor of diagnostic imaging agents.

Six Flags completes deal

Six Flags Entertainment Corp. closed on its $950 million credit facility (Ba2/BBB-) that includes a $700 million seven-year term loan B (Ba2/BBB-) and a $250 million five-year revolver, a news release said.

Pricing on the term loan is Libor plus 275 bps with a step-down to Libor plus 250 bps when leverage is below 3 times and a 0.75% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the step-down was added and the discount was tightened from 99.5.

Wells Fargo Securities LLC led the deal that was used to refinance an existing senior secured credit facility that includes a $200 million revolver and a $569 million term loan B, and for general corporate purposes, including share repurchases.

Six Flags is a Grand Prairie, Texas-based regional theme park company.

© 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.