Chromaflo, Linden, Vantage Drilling, Blue Buffalo, American Beacon, TransUnion break

By Sara Rosenberg

New York, Nov. 20 - Chromaflo Technologies, Linden Cogeneration Power Complex (EFS Cogen Holdings I LLC), Vantage Drilling Co., Blue Buffalo Co. Ltd., American Beacon Advisors Inc. and TransUnion Corp. all saw their deals free up for trading on Wednesday.

Moving to the primary, Tribune Co. reverse flexed pricing on its term loan B, modified the original issue discount and reduced the call protection, One Call Care Management raised pricing on its first-lien loan, and Maxim Crane Works Holdings Inc. increased the spread on its second-lien loan and adjusted the call protection.

Also, Travel Leaders Group LLC raised the spread on its term loan, revised the original issue discount, shortened the tenor and increased amortization, and Gateway Casinos & Entertainment Ltd. upsized its term loan A and downsized its B loan, while firming the spread at the low end of guidance.

In addition, E.W. Scripps Co. tightened pricing and discount on its term loan B, Glencoe Principal Holdings lifted the coupon on its first-lien term loan and adjusted the maturity, and Western Refining Inc. accelerated the commitment deadline on its term loan.

Furthermore, Continental Building Products LLC released talk as its add-on loans were presented to lenders during the session, Hostway Corp. revealed original issue discount guidance, and Windstream Corp., Ancestry.com and Crown Holdings Inc. launched new deals.

And, Manitowoc Co. Inc. joined this week's calendar, and DSM Pharmaceutical Products/Patheon Inc. came out with expected timing and structure on its proposed credit facility.

Chromaflo starts trading

Chromaflo's new loans made their way into the secondary market on Wednesday, with the $330 million six-year covenant-light first-lien term loan B (B2) quoted at par ¼ bid, par ¾ offered and the $115 million 61/2-year covenant-light second-lien term loan (Caa2) quoted at 101 bid, 102 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 350 basis points with a 1% Libor floor and it was sold at an original issue discount of 993/4. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor and was sold at a discount of 991/2. This debt has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $310 million, pricing firmed at the tight end of the modified Libor plus 350 bps to 375 bps talk and down from original talk of Libor plus 400 bps, and the original issue discount was tightened from revised talk of 99½ and initial talk of 99.

Also during syndication, MFN sunsets were eliminated, and the second-lien loan was downsized from $130 million, pricing came at the low end of revised talk of Libor plus 725 bps to 750 bps and down from initial talk of Libor plus 775 bps, and the discount was moved from revised talk of 99 and initial talk of 981/2.

Chromaflo recapitalizing

Proceeds from Chromaflo's $445 million in loans will be used to refinance existing debt and fund a dividend that was increased to about $165 million as a result of the small upsizing to the total amount of term borrowings and lower net debt refinanced at closing.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Madison Capital and KeyBanc Capital Markets LLC are leading the deal.

Pro forma first-lien leverage is 4.3 times and pro forma total leverage 5.8 times.

Chromaflo is an Ashtabula, Ohio-based supplier of chemical and pigment dispersions to the thermoset composites and architectural & industrial paint and coatings industries.

Linden frees up

Linden Cogeneration's credit facility broke too, with the $825 million seven-year term loan B quoted at 99¾ bid, par ¾ offered, according to a market source.

Pricing on the B loan is Libor plus 275 bps with a 1% Libor floor and it was sold at a discount of 99. There is 101 soft call protection for one year.

Earlier in the week, pricing on the term loan B was reduced from talk of Libor plus 325 bps to 350 bps and the discount firmed at the wide end of the 99 to 99½ guidance.

The company's $925 million senior secured credit facility (Ba1/BB+) also includes a $100 million five-year revolver.

Barclays, Citigroup Global Markets Inc. and Bank of Tokyo-Mitsubishi are leading the deal that will be used to refinance existing debt, to make a distribution to GE in connection with the acquisition of a 50% interest in the borrower by Highstar, to support project-level letter-of-credit requirements, to fund the debt service reserve account and to pay related fees and expenses.

Closing is targeted for Dec. 17.

Total leverage is 4 times.

Linden is a 942MW cogeneration facility located in Linden, N.J.

Vantage hits secondary

Vantage Drilling's $475 million covenant-light senior secured term loan B due Oct. 25, 2017 also freed up, with levels quoted at par ¼ bid, par ¾ offered, a market source said.

Pricing on the term loan B is Libor plus 400 bps, after firming recently at the low end of the Libor plus 400 bps to 425 bps talk. There is 1% Libor floor and 101 soft call protection for six months, and the debt was issued at par.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan from Libor plus 450 bps with a 1.25% Libor floor.

Vantage Drilling is a Houston-based offshore drilling contractor.

Blue Buffalo breaks

Another deal to start trading was Blue Buffalo's $396 million senior secured term loan B due Aug. 8, 2019, with levels seen at par 7/8 bid, 101 3/8 offered, according to a source.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor and it was issued at par. The tranche has a 25 bps step-down in pricing when consolidated total leverage is below 2 times and 101 soft call protection for six months.

Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 375 bps with a 1% Libor floor.

Blue Buffalo is a Wilton, Conn.-based pet food company.

American Beacon levels emerge

American Beacon Advisors' $170 million six-year term loan (Ba2/BB-) broke as well, with levels quoted at 99 ½ bid, par ¼ offered, according to a trader.

Pricing on the loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection.

During syndication, the spread on the loan firmed at the low end of the Libor plus 375 bps to 400 bps talk.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

American Beacon Advisors is a Fort Worth, Texas-based provider of investment advisory services to institutional and retail markets.

TransUnion tops issue price

TransUnion's $65 million add-on term loan hit the secondary too, with levels quoted at par ½ bid, 101 offered, according to a market source.

Pricing on the loan is Libor plus 300 bps with a 1.25% Libor floor, in line with the existing term loan, and it was sold at par ¼ after tightening the other day from par.

Deutsche Bank Securities Inc. is leading the deal that will be used to repay revolver borrowings.

TransUnion is a Chicago-based provider of information management and risk management services.

Tribune updates pricing

In the primary, Tribune cut pricing on its $3.8 billion seven-year term loan B to Libor plus 300 bps from Libor plus 350 bps, tightened the discount to 99¾ from 99 and shortened the 101 soft call protection to six months from one year, according to a source, who said the 1% Libor floor was unchanged.

The company's $4.1 billion senior secured credit facility (Ba3/BB+) also includes a $300 million five-year revolver.

Recommitments were due on Wednesday, the source remarked.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with cash on hand to fund the acquisition of Local TV Holdings LLC from Oak Hill Capital Partners for $2,725,000,000 and refinance existing debt.

Closing is expected by the end of the year, subject to antitrust and Federal Communications Commission approvals and other customary conditions.

Tribune is a Chicago-based multimedia company. Local TV is a Newport, Ky.-based owner and operator of television stations.

One Call revised

One Call Care Management raised pricing on its $825 million seven-year covenant-light first-lien term loan to Libor plus 400 bps from talk of Libor plus 350 bps to 375 bps, while keeping the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, a source said.

In addition, the company is getting a $420 million eight-year covenant-light second-lien term loan that continues to be talked at Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and 101 hard call protection until April 30, 2014, then 103 until the first anniversary of closing, 102 for a year and 101 for the following year.

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

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., RBC Capital Markets, Morgan Stanley Senior Funding Inc. and Guggenheim are leading the $1,245,000,000 deal that will be used to fund the buyout of the company by Apax Partners from Odyssey Investment Partners.

Closing is expected this quarter.

One Call is a Parsippany, N.J.-based provider of specialized cost containment services to the workers' compensation industry.

Maxim Crane reworked

Maxim Crane Works lifted the spread on its $325 million second-lien term loan (B/Caa2) to Libor plus 925 bps from Libor plus 775 bps, and modified the call protection to non-callable for six months, then at 103 for six months, 102 for a year and 101 for the following year, from non-callable for six months, then at 102 for 18 months and at 101 for a year, according to a market source.

The loan still has a 1% Libor floor and an original issue discount of 981/2.

Recommitments were due on Wednesday, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

Maxim Crane is a Pittsburgh-based full-service crane rental and sales company.

Travel Leaders tweaks deal

Travel Leaders' lifted pricing on its $170 million term loan B to Libor plus 550 bps from talk of Libor plus 450 bps to 475 bps, changed the original issue discount to 98½ from 99, modified the maturity to five years from six years and sweetened amortization to 5% per annum from 1% per annum, according to a market source.

As before, the term loan has a 1% Libor floor.

The term loan also includes 101 soft call protection for one year, the source remarked.

UBS Securities LLC and Jefferies Finance LLC are leading the $185 million credit facility (B1/BB-), which provides for a $15 million revolver as well.

Commitments were due on Wednesday.

Proceeds will be used to fund the acquisition of the Plymouth, Minn.-based travel agency company.

Gateway restructures

Gateway Casinos increased its five-year term loan A to C$190 million from C$145 million, and kept pricing on the tranche, as well as on a C$50 million five-year revolver, at BA plus 375 bps with a 100 bps upfront fee, according to a market source.

Also, the six-year term loan B was reduced to C$120 million from C$145 million and the spread finalized at BA plus 425 bps, the tight end of the BA plus 425 bps to 450 bps talk, the source said.

The B loan still has a 1% floor, an original issue discount of 99¼ and 101 soft call protection for one year.

TD Securities is leading the now C$360 million credit facility (Ba3/BB) that will be used to help refinance existing debt, including C$170 million of 8 7/8% second-priority senior secured notes due 2017, and fund a dividend.

As part of the transaction, the company is also issuing C$200 million of second-lien notes, reduced from C$220 million with the term loan A upsizing, the source added.

Gateway is a Burnaby, B.C.-based owner of gaming properties.

E.W. Scripps flexes

E.W. Scripps lowered pricing on its $200 million covenant-light seven-year term loan B to Libor plus 250 bps from Libor plus 275 bps and moved the original issue discount to 99¾ from 991/2, according to a market source.

As before, the B loan has a 0.75% Libor floor and 101 soft call protection for six months.

The company's $275 million senior secured credit facility (Ba2/BB+) also includes a $75 million five-year revolver.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used by the Cincinnati-based media company to refinance existing debt.

Senior and total pro forma leverage is expected to be 1.9 times.

Glencoe changes surface

Glencoe Principal lifted pricing on its $130 million first-lien term loan (B2/B+) to Libor plus 650 bps from talk of Libor plus 525 bps to 550 bps, shortened the maturity to five years from six years, revise the original issue discount to still to be determined from 99, and raised the cash flow sweep to 75% from 50%, a market source said. The 1% Libor floor and 101 soft call protection for one year were unchanged.

The company's $200 million facility also includes a $25 million five-year revolver (B2/B+), and a $45 million seven-year second-lien term loan (Caa2/CCC+) that continues to be talked at Libor plus 900 bps with a 1% Libor floor, a discount of 981/2, and call protection of 102 in year one and 101 in year two.

Recommitments are due on Friday, the source added.

Macquarie Capital is leading the deal that will be used to refinance existing subsidiary debt, acquire certain outstanding equity interests held by third parties other than Glencoe Principal Holdings and management, and fund a distribution to sponsor Glencoe Capital.

Co-borrowers under the credit facility are subsidiaries Dixie Chemical, a Pasadena, Texas-based manufacturer of high-purity chemicals, complex compounds and chemical intermediates, Child Development Schools, a Columbus, Ga.-based for-profit preschool education and early care provider, and Polyair Corp., a Toronto-based manufacturer and marketer of protective packaging products.

Western Refining moves deadline

Western Refining revised the commitment deadline on its $550 million seven-year senior secured term loan B (B1/BB-) to noon ET on Thursday from Friday, according to a market source.

The B loan is talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Bank of America Merrill Lynch and UBS Securities LLC are leading the deal that is being used with $245 million in cash on hand to fund the already completed acquisition of ACON Investments' and TPG's ownership interests in Northern Tier Energy LP for $775 million.

Western Refining is an El Paso, Texas-based refining and marketing company. Northern Tier Energy is a Ridgefield, Conn.-based downstream energy company.

Continental discloses talk

Also in the primary, Continental Building Products revealed talk of Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99½ on its fungible $95 million add-on first-lien covenant-light term loan (B2) due Aug. 28, 2020, and pricing on its existing first-lien term loan will bump up to Libor plus 375 bps from Libor plus 350 to match the new debt, according to a market source.

Also, talk on the $35 million add-on second-lien covenant-light term loan (Caa2) due Feb. 26, 2021 came out at Libor plus 775 bps with a 1% Libor floor and a discount of 99, and pricing on the existing second-lien term loan will increase by 25 bps from Libor plus 750 bps, the source said.

The existing step-downs on the term loans will apply to the add-ons, and the tranches are also getting a new 25 bps step-down if ratings are upgraded to B2/B, the source continued.

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

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that launched with a call in the afternoon and has a Monday commitment deadline.

Continental Building, a supplier of drywall for residential and commercial construction industries, will use the new term loans to fund a dividend to shareholders.

Hostway floats OID

Hostway launched with a bank meeting its $77.5 million six-year first-lien term loan, and original issue discount talk was announced at 99, according to a market source.

Price talk on the first-lien term loan came out earlier at Libor plus 475 bps with a 1.25% Libor floor.

The company's $117.5 million credit facility also includes a $15 million five-year revolver talked at Libor plus 475 bps, and a $25 million seven-year second-lien term loan that is being placed separately and is priced at Libor plus 875 bps with a 1.25% Libor floor.

Commitments are due on Dec. 6, the source said.

Societe Generale is leading the deal that will be used with 37% equity to fund the buyout of the company by Littlejohn & Co.

Senior leverage is 3.3 times and total leverage is 4.3 times, the source added.

Hostway is a Chicago-based provider of hosting services for over 570,000 RGUs.

Windstream comes to market

Windstream hosted a call at 2 p.m. ET to launch a $590 million 51/2-year term loan B-3 with talk of Libor plus 250 bps to 275 bps with a 0.75% Libor floor, an original issue discount of 99½ to 99¾ and 101 soft call protection for six months, according to sources.

Proceeds will be used to refinance an existing term loan B-3 due August 2019 priced at Libor plus 300 bps with a 1% Libor floor.

J.P. Morgan Securities LLC is leading the deal.

Windstream is a Little Rock, Ark.-based provider of advanced network communications, including cloud computing and managed services, to businesses.

Ancestry.com holds call

Ancestry.com held a lender call at 1 p.m. ET on Wednesday to launch a repricing of its $622,104,188 in senior secured term loans, according to a market source.

The company is talking the repricing of its $487,104,188 term loan B-1 due Dec. 28, 2018 at Libor plus 325 bps to 350 bps and its $135 million term loan B-2 due May 15, 2018 at Libor plus 275 bps to 300 bps, with both having a 1% Libor floor, a par offer price and 101 soft call protection for six months, the source said.

With this transaction, term loan B-1 pricing will be coming down from Libor plus 400 bps with a 1.25% Libor floor and term loan B-2 pricing will be coming down from Libor plus 325 bps with a 1% Libor floor.

Commitments are due on Monday and closing is targeted for Dec. 30, the source added.

Morgan Stanley Senior Funding Inc. is the sole lead arranger on the deal, and a joint bookrunner with Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, Goldman Sachs Bank USA and HSBC Securities (USA) Inc.

Ancestry.com is a Provo, Utah-based online family history resource.

Crown launches

Crown Holdings held a bank meeting on Wednesday to launch a $2.3 billion U.S. credit facility and a €400 million five-year term loan A talked at Euribor plus 175 bps, a market source said.

The U.S. facility consists of a $1.2 billion five-year revolver talked at Libor plus 175 bps, an $800 million five-year term loan A talked at Libor plus 175 bps and a $300 million six-year term loan (Farm Credit tranche) talked at Libor plus 200 bps, the source continued.

Citigroup Global Markets Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Bank of America Merrill Lynch, RBS Securities Inc., Santander and Wells Fargo Securities LLC are leading the deal (Baa1) for which commitments are due during the first week of December.

Proceeds will be used to help fund the acquisition of Mivisa Envases SAU for €1.2 billion from the Blackstone Group LP, N+1 Mercapital and management.

Closing is expected in 2014, subject European Commission review and other competition authorities.

Crown is a Philadelphia-based manufacturer of packaging products for consumer marketing companies. Mivisa Envases is a Murcia, Spain-based manufacturer of two- and three-piece food cans and ends.

Manitowoc on deck

Manitowoc set a bank meeting for Thursday to launch a $200 million seven-year term loan, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing bank debt and for general corporate purposes.

Manitowoc is a Manitowoc, Wis.-based manufacturer and seller of cranes and related products and foodservice equipment.

DSM Pharma/Patheon details

The new company (Newco) being formed through the combination of DSM Pharmaceutical Products with Patheon is anticipating holding a bank meeting during the first week of January to launch a $1.35 billion credit facility, according to a market source.

The facility consists of a $200 million five-year revolver, and a $1.15 billion seven-year term loan B that has a 1% Libor floor and 101 soft call protection, the source said.

UBS Securities LLC, J.P. Morgan Securities LLC, Jefferies Finance LLC, KeyBanc Capital Markets and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with $772 million of equity to fund the formation of the new contract development and manufacturing company for the pharmaceutical industry.

Under the agreement, JLL Partners and Royal DSM will acquire Patheon for $9.32 per share, implying an equity value of about $1.4 billion and a total enterprise value of $1.95 billion. Patheon will then be merged with DSM Pharmaceutical Products, and the combined company will be 51% owned by JLL and 49% by DSM.

Closing is expected in the first half of 2014, subject to customary conditions.

© 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.