Consol Mining, Office Depot, Industrial Container plan deals

New York, Oct. 12 – Several new deals were announced during Thursday’s session in the leveraged loan market, and several issuers already marketing loans tightened the terms.

Among the prominent announcements, Consol Energy Inc.’s coal mining spin off, Consol Mining Corp., set a meeting for lenders to launch a new bank loan via Citigroup.

Office Depot, Inc. disclosed plans for a $750 million senior secured term loan B to be launched at a bank meeting on Oct. 18.

Goldman Sachs is the left lead on the deal, which the office supplies company will use to fund an acquisition.

Industrial Container Services LLC will present a repricing of its $425 million first-lien senior secured term loan B to lenders on a call scheduled for Friday.

Among deals already in the market, UPC Financing Partnership and UPC Broadband Holding BV upsized their dollar-denominated term loan AR due Jan. 15, 2026 to $1,975,000,000 from $1.6 billion and tightened the discounts on both the dollar loan and the companion €500 million term loan AS due Oct. 15, 2026.

Also tightening terms, Sirius Computer Solutions Inc. squeezed the original issue discount on its fungible $337 million incremental first-lien term loan due Oct. 30, 2022 (B1/B) to 99.75 from 99.5.

And Inovyn Finance plc reduced the coupon on its €829 million covenant-light term loan B and set pricing at par, at the tight end of talk.

Consol Mining plans loan

Consol Mining did not disclose details of its planned financing.

The company will be created by the split of Consol Energy Inc. into two parts. Consol Mining will be responsible for the coal assets, including a Pennsylvania mining complex, Consol’s interest in CNX Coal Resources LP, a marine terminal at Baltimore and coal reserves in the Northern Appalachian, Central Appalachian and Illinois basins. The other company will own the oil and gas exploration and production assets.

Consol Energy is based in Canonsburg, Pa., and Consol Mining will continue to be headquartered there.

Office Depot sets meeting

Office Depot’s new $750 million senior secured term loan B will be used to fund the acquisition of CompuCom, according to a market source.

The company is a Boca Raton, Fla.-based provider of office supplies and business products and services.

Industrial Container to reprice

Industrial Container Services’ repriced $425 million first-lien senior secured term loan B will consist of a $380 million funded tranche that will continue to have an April 2024 maturity and a $45 million delayed-draw portion that will be extended to April 2018 from October 2017 as part of the repricing.

Goldman Sachs is the left lead on the transaction, a market source said.

ICS Parent, Inc. is the borrower.

Industrial Container is a Maitland, Fla.-based provider of steel industrial container reconditioning services.

Nellson to reprice, add on

Also among Thursday’s announcements, Nellson Nutraceutical LLC plans to launch an $82 million incremental term loan and a repricing of its approximately $292 million term loan during a call on Monday, a market source disclosed.

The incremental loan will be fungible with the existing term loan.

Antares Capital is the lead on the deal.

Proceeds from the add-on will be used to finance an acquisition.

Nellson Nutraceutical is an Irwindale, Calif.-based manufacturer of protein bars and functional powders.

Fairmount gives talk

Thursday also saw several new deals launch at meetings or on lender calls.

Fairmount Santrol, Inc. kicked off syndication of a $700 million seven-year first-lien term loan (B3/B-), according to a market source.

The covenant-light loan is talked at Libor plus 475 basis points with an original issue discount of 99.5 and a Libor floor of 1%.

Barclays is the lead arranger.

Proceeds will be used to refinance existing term loans.

The launch comes on the heels of an upgrade earlier in the week to the company’s secured loan rating to B3 from Caa1by Moody’s Investors Service.

Fairmount Santrol is a Chesterfield, Ohio, provider of high-performance sand and sand-based products used by oil and gas exploration and production companies to enhance the productivity of their wells.

Jack’s talks repricing

Jack’s Family Restaurants and Big Jack Holdings LP set talk for their $267 million term loan B (B3/B) due April 5, 2024 at Libor plus 375 bps to Libor plus 400 bps, a market source told Prospect News.

The transaction is a repricing and those levels will take the borrowing cost down from Libor plus 425 bps currently.

The new loan is offered at par and will leave the Libor floor unchanged at 1%.

RBC, Bank of America Merrill Lynch and Morgan Stanley are joint bookrunners with RBC also acting as administrative agent.

Jack’s is a Homewood, Ala.-based quick-service restaurant operator.

PLZ Aeroscience sets price

Also Thursday, PLZ Aeroscience priced its $160 million fungible incremental term loan at 99.5.

The add-on will increase the loan to $663.8 million.

PLZ launched the financing with a lender call on Wednesday.

Antares Capital and BMO Financial Corp. are joint lead arrangers.

Proceeds will be used to fund an acquisition.

PLZ Aeroscience is a Downers Grove, Ill.-based provider of custom aerosol packaging for various consumer and institutional products.

ICP levels emerge

Also announced Thursday after a meeting on Wednesday, ICP Group set talk for its $290 million of first-lien financing at Libor plus 400 bps with a 1% floor for Libor, a market source said.

The facility is made up of a $40 million revolver, a $205 million term loan and a $45 million delayed-draw term loan that is available for two years.

The term loan portion of the financing has an original issue discount of 99.5 and 101 soft call protection for six months.

Antares Capital is the lead. BMO Capital Markets is the joint lead arranger.

Proceeds, along with proceeds from $105 million of second-lien financing that is being raised separately, will be used to refinance debt.

ICP is an Andover, Mass.-based producer of specialty coatings, adhesives and sealants. It is owned by Audax Private Equity.

UPC upsizes

In one of the bigger deals in the market, UPC Financing Partnership and UPC Broadband Holding BV increased their dollar-denominated term loan AR due Jan. 15, 2026 to $1,975,000,000 from $1.6 billion at launch, according to a market source.

The issuers also trimmed the discounts on the in-market facility, to 99.875 from 99.75 for the dollar loan and to par from 99.75 for a €500 million term loan AS due Oct. 15, 2026.

UPC’s dollar loan continues to be priced at Libor plus 250 bps with a 0% floor while the euro tranche remains at Euribor plus 275 bps with a 0% floor.

Credit Suisse is left lead for the dollar portion while JPMorgan is on the left for the euro piece. Additional lead arrangers are Citigroup, Deutsche Bank, Goldman Sachs, HSBC, Scotia and Societe Generale.

UPC, a subsidiary of Liberty Global, a television and broadband company, is a Schiphol-Rijk, Netherlands-based provider of video, broadband internet and fixed-line telephone services in Switzerland and Austria, and in the central and eastern European countries of Poland, Hungary, Romania, Czech Republic and Slovakia.

Sirius narrows OID

Also making pricing less generous to investors, Sirius Computer Solutions reduced the original issue discount on its fungible $337 million incremental first-lien term loan due Oct. 30, 2022 (B1/B) to 99.75 from 99.5, a market source said.

Pricing on the incremental term loan is Libor plus 425 bps with a 1% Libor floor, in line with existing term loan pricing.

Credit Suisse Securities (USA) LLC, Barclays and Citigroup Global Markets Inc. are the bookrunners on the deal.

Proceeds will be used to fund the acquisition of Forsythe Technology Inc.

Sirius is a San Antonio-based provider of data center-focused technology integration services. Forsythe is a Skokie, Ill.-based enterprise IT solutions provider.

Inovyn tightens terms

Among European issuers, Inovyn Finance plc also achieved better terms, reducing the interest rate on its €829 million covenant-light term loan B to Euribor plus 225 bps from Euribor plus 250 bps and setting the price at par, the tight end of the 99.875 to par talk, according to a market source.

As before, the floor is 0.75% for Euribor.

Earlier in syndication the loan term B was upsized from €689 million.

The facility also includes a €101 million amortizing term loan A due 2021 priced at Euribor plus 275 bps with a 0% Euribor floor.

HSBC and JPMorgan are the global coordinators and physical bookrunners.

Proceeds will be used to reprice the company’s existing senior secured facilities and to redeem its 6¼% senior secured notes due 2021.

Inovyn is a polyvinylchloride producer based in London.

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