Jacobson, Clement Pappas break; Triple Point tweaked again; Vitera Healthcare withdraws deal

By Sara Rosenberg

New York, July 9 - Jacobson Cos. (JHCI Acquisition Inc.) saw its credit facility make its way into the secondary market on Tuesday, with both the first- and second-lien term loans quoted above their original issue discount prices, and Clement Pappas and Co. Inc. began trading as well.

Over in the primary, Triple Point Group Holdings Inc. revised original issue discounts and call premiums for a second time, and Vitera Healthcare Solutions opted to remove its credit facility from the market.

In addition, Gardner Denver Inc., Oxbow Carbon LLC, True Religion Apparel Inc., Guggenheim Partners Investment Management Holdings LLC, Lions Gate Entertainment Corp. and Blackhawk Specialty Tools LLC released talk with launch.

Also, TridentUSA Health Services, Royal Adhesives and Sealants, WS Packaging Group Inc. and Larchmont Resources LLC emerged with new loan plans, and United States Infrastructure Corp. came out with timing and structure on its buyout deal.

Jacobson tops OIDs

Jacobson's credit facility started trading on Tuesday, with the $275 million first-lien term loan (B1/B-) quoted at 99 bid and the $110 million second-lien term loan (Caa1/CCC) quoted at 97½ bid, 98½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 575 basis points with a 1.25% Libor floor, and it was sold at a discount of 981/2. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 975 bps with a 1.25% Libor floor, and it was sold at 97. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

J.P. Morgan Securities LLC is the lead bank on the deal.

Jacobson repaying debt

Proceeds from Jacobson's $410 million credit facility, which also includes a $25 million revolver (B1/B-), will be used to refinance existing debt.

During syndication, the first-lien loan was upsized from $250 million, pricing firmed at the wide end of the Libor plus 550 bps to 575 bps talk and the discount firmed at the high side of the 98½ to 99 talk.

Also, the second-lien loan was downsized from $135 million, pricing was flexed up from Libor plus 950 bps, the discount moved from guidance of 98 to 98½ and the call protection was changed from 103 in year one, 102 in year two and 101 in year three.

Jacobson is a Des Moines, Iowa-based third party logistics company.

Clement frees up

Clement Pappas' $200 million term loan B due 2017 also broke for trading, with levels seen at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 991/2.

Proceeds are being used to reprice an existing term loan B from Libor plus 525 bps with a 1.25% Libor floor.

GE Capital Markets and BMO Capital Markets are leading the deal.

Clement Pappas is a Carneys Point, N.J.-based producer of store brand ready-to-drink fruit juices, drinks and sauces.

Triple Point reworked

Moving to the primary, Triple Point changed the original issue discount on its $310 million seven-year first-lien covenant-light term loan (B2) to 95½ from revised talk of 96 and initial talk of 99 and returned the 101 soft call protection to six months from revised talk of one year, according to a market source.

Also, the discount on the $125 million eight-year second-lien covenant-light term loan (Caa2) was moved to 94 from revised talk of 95 and initial talk of 981/2, and the call protection was changed back to 102 in year one and 101 in year two from revised talk of 103 in year one, 102 in year two and 101 in year three, the source said.

Pricing on the first-lien term loan is Libor plus 425 bps and pricing on the second-lien term loan is Libor plus 825 bps, with both having a 1% Libor floor.

Previously, the first-lien term loan was downsized from $320 million and pricing was lifted from talk of Libor plus 375 bps to 400 bps, and the second-lien term loan was downsized from $165 million while pricing was increased from talk of Libor plus 775 bps to 800 bps.

Triple Point allocating soon

Allocations on Triple Point's $475 million credit facility, which also provides for a $40 million revolver (B2), are expected to go out on Wednesday afternoon, the source remarked.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by Ion Investment Group.

Due to the earlier downsizing of the term loans, Ion is investing $50 million more in cash equity so the total equity check is now $416 million, which is 49% of total capitalization.

Triple Point is a Westport, Conn.-based provider of software for end-to-end commodity management.

Vitera withdrawn

Vitera Healthcare Solutions pulled its $365 million credit facility from market that was going to be used to refinance existing debt and fund the purchase of SuccessEHS, according to a market source. As a result, the acquisition will now be funded with equity.

The facility consisted of a $25 million five-year revolver (B2/B), a $255 million seven-year first-lien term loan (B2/B) talked at Libor plus 450 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and an $85 million eight-year second-lien term loan (Caa2/CCC+) talked at Libor plus 825 bps to 875 bps with a 1% Libor floor, a discount of 98½ and call protection of 102 in year one and 101 in year two.

The source said that syndication of the deal had been successful at slightly wider levels than the talk, but the company decided to wait for more favorable market conditions.

Jefferies Finance LLC and BMO Capital Markets were leading the transaction.

Vitera is a Tampa, Fla.-based provider of ambulatory electronic health records and practice management software and services.

Gardner Denver releases talk

Gardner Denver held its New York bank meeting in the morning, and in connection with the event, price talk on its U.S. and euro term loans was announced, according to a market source.

The $1.8 billion seven-year term loan is talked at Libor plus 400 bps to 425 bps and the $525 million seven-year euro term loan is talked at Euribor plus 425 bps to 450 bps, with both having a 1% floor, and original issue discount of 99 and 101 soft call protection for one year, the source said.

The company's $2,725,000,000 senior secured credit facility (B1/B), for which a bank meeting will be held in London on Thursday, also includes a $400 million five-year revolver.

Commitments are due on July 23.

Gardner being acquired

Proceeds from Gardner Denver's credit facility and $675 million of senior unsecured notes will be used to help fund its buyout by Kohlberg Kravis Roberts & Co. LP for $76 per share in cash. The transaction is valued at about $3.9 billion, including the assumption of debt.

UBS Securities LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Corporate Bank Ltd., RBC Capital Markets, Macquarie Capital And HSBC Securities (USA) Inc. are the bookrunners on the deal and the joint lead arrangers with KKR Capital Markets and Sumitomo Mitsui Banking.

Closing is expected in the third quarter, subject to shareholder approval, regulatory approvals and other customary conditions.

Gardner Denver is a Wayne, Pa.-based manufacturer of industrial compressors, blowers, pumps, loading arms and fuel systems.

Oxbow terms surface

Oxbow Carbon set talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $500 million six-year covenant-light term loan B (Ba3/BB+), sources said.

In addition, talk on the company's $350 million 61/2-year second-lien term loan (B2/BB-) emerged at Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount of 99 and call protection of 103 in year one, 102 in year two and 101 in year three, sources continued.

The term loans launched with a bank meeting in the morning.

The company's $1.7 billion credit facility also provides for a $600 million five-year revolver (Ba3/BB+) and a $250 million five-year term loan A (Ba3/BB+), both talked at Libor plus 250 bps.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Oxbow Carbon is a West Palm Beach, Fla.-based recycler of refinery and natural gas byproducts.

True Religion guidance

True Religion Apparel 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 one year on its $375 million seven-year first-lien covenant-light term loan (B1/B) that launched with a meeting in the morning, sources said.

Also, talk emerged on the $110 million eight-year second-lien covenant-light term loan (Caa1/CCC+) at Libor plus 825 bps with a 1% Libor floor, a discount of 98½ and call protection of 103 in year one, 102 in year two and 101 in year three, sources continued.

The company's $535 million senior secured credit facility also includes a $50 million asset-based revolver.

Commitments are due on July 23.

True Religion lead banks

Deutsche Bank Securities Inc., Jefferies Finance LLC, UBS Securities LLC and Macquarie Capital (USA) Inc. are leading True Religion's credit facility.

Proceeds will be used with up to $175 million in equity and cash on hand to fund the company's buyout by TowerBrook Capital Partners LP for $32 per share in cash in a transaction valued at about $835 million.

Closing is expected in the third quarter, subject to shareholder approval, regulatory approvals and other customary conditions.

True Religion is a Vernon, Calif.-based jeans and jeans-related sportswear company.

Guggenheim launches

Guggenheim Partners launched in the afternoon its $700 million seven-year covenant-light term loan B with talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to sources.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets and Fifth Third Securities Inc. are leading the loan.

Proceeds will be used to refinance existing debt, fund a distribution to parent company Guggenheim Partners LLC and for general corporate purposes.

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

Lions Gate holds call

Lions Gate Entertainment hosted a call in the afternoon to launch a $200 million seven-year second-lien term loan (Ba3/B+), and a few hours before the call began, price talk on the debt was announced, according to a market source.

The term loan is talked at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, and is non-callable for one year, then at 102 in year two and 101 in year three, the source remarked.

J.P. Morgan Securities LLC is the lead bank on the deal that is being done as the first step in the redemption of the company's 10¼% notes due 2016.

Lions Gate is a Vancouver, B.C.-based entertainment company in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution and new channel platforms.

Blackhawk pricing

Blackhawk Specialty Tools launched its $101 million credit facility with talk of Libor plus 450 bps with a 1.25% Libor floor and an original issue discount of 991/2, according to a market source.

The facility consists of a $20 million revolver and an $81 million term loan that includes 101 soft call protection for one year, the source said.

Commitments are due on July 23.

GE Capital Markets is leading the deal that will be used to help fund the company's buyout by Bain Capital.

Blackhawk is a Houston-based provider of automated top drive cement heads and related equipment and services as well as cementation products to the oil and gas industry.

TridentUSA on deck

TridentUSA Health Services set a bank meeting for 2 p.m. ET on Wednesday to launch a new credit facility, according to a market source, who said, size, structure and use of proceeds on the deal are not yet available.

Citigroup Global Markets Inc., GE Capital Markets and RBC Capital Markets are leading the transaction.

TridentUSA is a Burbank, Calif.-based provider of bedside diagnostics services offering mobile x-ray, ultrasound, teleradiology and laboratory services to skilled nursing home, assisted living, home health care, hospice and correctional markets.

Royal Adhesives emerges

Royal Adhesives and Sealants scheduled a bank meeting for 11 a.m. ET in New York on Thursday to launch a $544 million senior secured credit facility, according to a market source.

The facility consists of a $40 million revolver, a $350 million first-lien term loan and a $154 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc., Madison Capital and Jefferies Finance LLC are the joint bookrunners on the deal and joint lead arrangers with Nomura and KeyBanc Capital Markets LLC.

Proceeds will be used to fund the acquisition of ADCO Global and refinance existing bank debt.

Royal Adhesives is a South Bend, Ind.-based manufacturer and marketer of high performance adhesives, sealants, encapsulants and specialty polymers.

WS Packaging coming soon

WS Packaging will host a bank meeting on Thursday morning to launch a $276 million credit facility that is being led by GE Capital Markets, according to a market source.

The facility consists of a $40 million revolver and a $236 million first-lien term loan, the source said.

Proceeds will be used by the Green Bay, Wis.-based pressure sensitive label manufacturer to refinance existing loan and mezzanine debt.

Larchmont readies loan

Larchmont Resources is planning to hold a bank meeting at 1:30 p.m. ET in New York on Thursday to launch a $275 million senior secured first-lien term loan, according to a market source.

Barclays and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt.

Net leverage is 3.3 times, the source said.

Larchmont Resources is owned by Aubrey K. McClendon (AKM) and EIG Global Energy Partners and holds oil and gas interests that AKM purchased through his participation in the Chesapeake Energy Corp. Founders Well Participation Program.

United States Infrastructure deal

United States Infrastructure scheduled a bank meeting for Thursday, and disclosed that its credit facility will carry a total size of $670 million - split between a $75 million revolver, a $430 million covenant-light first-lien term loan and a $165 million second-lien term loan, according to a market source.

The second-lien loan has already been privately placed, the source said.

Deutsche Bank Securities Inc., General Electric Capital Corp. and RBC Capital Markets are leading the deal that will be used to help fund the purchase of the company by Leonard Green & Partners LP from OMERS Private Equity.

Closing is expected in the third quarter.

United States Infrastructure is an Indianapolis-based provider of outsourced utility locating services.

Water Pik closes

In other news, Water Pik Inc.'s buyout by MidOcean Partners LP has been completed, a news release said. For the buyout, the company got a new $335 million credit facility that includes a $25 million revolver (B2/B), a $215 million seven-year first-lien covenant-light term loan (B2/B) and a $95 million 71/2-year second-lien covenant-light term loan (Caa2/CCC+).

Pricing on the first-lien loan is Libor plus 475 bps with a 1% Libor floor and it was sold at a discount of 98, and the second-lien loan is priced at Libor plus 875 bps with a 1% floor and was sold at 961/2. There is 101 repricing protection for one year on the first-lien and the second-lien is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

During syndication, pricing on the first-lien loan was lifted from Libor plus 400 bps, the discount moved from 99 and the call protection was extended from six months, and pricing on the second-lien loan was increased from Libor plus 800 bps, the discount revised from 98½ and the call protection was sweetened from 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC, GE Antares and Macquarie Capital led the deal for the Fort Collins, Colo.-based provider of branded oral health and replacement showerhead products.

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