UTEX, American Rock Salt, Anchor Glass, Zayo break; Neff, Vocus, Jason, Printpack modified

By Sara Rosenberg

New York, May 16 - UTEX Industries Inc.'s credit facility surfaced in the secondary market on Friday with levels on its first- and second-lien term loans seen above their original issue discounts, and American Rock Salt, Anchor Glass Container Corp. and Zayo Group LLC began trading too.

Moving to the primary, Neff Rental LLC increased the size of its second-lien term loan and tightened the spread and original issue discount, and Vocus Inc. lifted pricing on its first- and second-lien term loans, and widened the discount and extended the call protection on its first-lien tranche.

In addition, Jason Inc. moved funds between its term loans and revised the offer price on its second-lien tranche, and Printpack Holdings Inc. reduced the size of its first-lien term loan while sweetening pricing, discount and call premiums, and added a second-lien term loan to its capital structure.

Furthermore, Connacher Oil & Gas Ltd. moved up the commitment deadline on its term loan, ION Trading Technologies Sarl released price talk on its first- and second-lien term loans, and Henniges Automotive Holdings Inc. and Tallgrass Operations LLC emerged with new deal plans.

UTEX starts trading

UTEX Industries' credit facility freed up for trading on Friday, with the $475 million seven-year covenant-light first-lien term loan B (B2/B) quoted at par bid, par ½ offered and the $200 million eight-year covenant-light second-lien term loan (Caa2/CCC+) quoted at par ½ bid, 101½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 400 basis points with a step-down to Libor plus 375 bps when net leverage is 5.5 times and the corporate rating is B3 with a stable outlook. The loan has a 1% Libor floor and 101 soft call protection for one year, and was sold at an original issue discount of 991/2.

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

During syndication, pricing on the first-lien term loan was reduced from Libor plus 425 bps, the discount was tightened from 99 and the call protection as extended from six months. Also, the spread on the second-lien loan was cut from Libor plus 750 bps and the discount was revised from 99.

UTEX getting revolver

Along with the term loans, UTEX's $725 million senior secured facility includes a $50 million five-year revolver (B2/B).

Bank of America Merrill Lynch, BNP Paribas Securities Corp., Societe Generale and UBS AG are leading the deal that will be used to refinance existing debt and fund a dividend.

UTEX is a Houston-based manufacturer of engineered sealing and other specialty products used in oil and gas drilling and production, power, mining, water treatment and other industrial sectors.

American Rock frees up

American Rock Salt's term loans also broke, with the $350 million first-lien covenant-light tranche (B3/B) quoted at par 1/8 bid, par ½ offered and the $120 million second-lien covenant-light tranche (Caa1/CCC) quoted at par 3/8 bid, par 7/8 offered, a source remarked.

Pricing on the first-lien term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 700 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the spread on the first-lien term loan was raised from Libor plus 350 bps and the call protection was extended from six months, and pricing on the second-lien loan was lifted from Libor plus 675 bps.

RBS Citizens (left on first-lien) and RBC Capital Markets (left on second-lien) are leading the deal that will be used by the Retsof, N.Y.-based salt mine operator to refinance an existing term loan B and second-lien notes.

Anchor Glass breaks

Another deal to hit the secondary was Anchor Glass, with its $335 million seven-year first-lien term loan (B3/BB-) seen at par 1/8 bid, par 5/8 offered on the open and then it got as high as par 3/8 bid, par ¾ offered, according to a market source.

Pricing on the term loan is Libor plus 325 bps 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.

During syndication, pricing on the loan was reduced from revised talk of Libor plus 350 bps and initial talk of Libor plus 375 bps to 400 bps, and the discount was tightened from 991/2.

The company's $435 million credit facility also includes a $100 million five-year ABL revolver.

UBS Securities LLC and RBC Capital Markets are leading the deal that will be used to help fund KPS Capital Partners LP's buyout of the company from Ardagh Holdings USA Inc.

Closing is expected this quarter or next quarter, subject to customary conditions and regulatory approvals.

Anchor Glass is a Tampa, Fla.-based manufacturer of glass packaging products.

Zayo tops OID

Zayo Group's fungible $275 million incremental term loan B due July 2, 2019 began trading as well, with levels quoted at 99¾ bid, par ¼ offered, a trader said.

Pricing on the incremental loan matches the company's existing roughly $1.74 billion term loan B at Libor plus 300 bps with a 1% Libor floor, and there is 101 soft call protection that expires on May 26. The incremental debt was sold at a discount of 991/2, after firming at the tight end of the 99¼ to 99½ talk.

Barclays, RBC Capital Markets and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund the acquisition of Neo Telecoms, a Paris-based bandwidth infrastructure company, and for general corporate purposes.

Zayo is a Boulder, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

SI Organization trades

Also in trading, The SI Organization Inc.'s $378 million51/2-year first-lien term loan (Ba3/B+) was quoted par bid, par ½ offered after breaking late Thursday at 99¾ bid, par ¾ offered, and the $115 million six-year second-lien term loan (B3/CCC+) was quoted at 99¾ bid, par ¾ offered in line with its break levels, a market source said.

The first-lien term loan is priced at Libor plus 475 bps with a 1% Libor floor and was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Pricing on the second-lien loan is Libor plus 800 bps with a 1% Libor floor and it was sold at a discount of 99. This debt has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was increased from a revised amount of $350 million, but still ended up smaller than its initially planned $490 million size, pricing was cut to from Libor plus 500 bps and the maturity was shortened from six year. Additionally, the second-lien term loan was added to the capital structure and then downsized from $140 million and the spread was trimmed from Libor plus 850 bps.

SI revolver, delayed-draw

SI Organization's $593 million credit facility also includes a $50 million five-year revolver (Ba3/B+) and a $50 million 51/2-year final maturity delayed-draw first-lien term loan (Ba3/B+).

The delayed-draw term loan, which also saw it maturity shortened from six years during syndication, has a ticking fee of 75 bps payable on the undrawn portion from closing until day 90, 475 bps from day 91 through 180, and thereafter it will be fully funded in an escrow account through July 2015, the source continued.

UBS Securities LLC and RBC Capital Markets are leading the deal that will be used to help fund the purchase of QinetiQ North America Services and Solutions Group and refinance existing bank debt.

Closing is expected this quarter, subject to customary conditions, including regulatory approvals.

SI is a Chantilly, Va.-based provider of analytical and technical information services for the U.S. government. QinetiQ is a Reston, Va.-based provider of technology and responsive services focusing on the U.S. government.

Neff reworks loan

Switching to the primary, Neff Rental lifted its seven-year second-lien covenant-light term loan (Caa1/CCC+) to $575 million from $525 million, cut the spread to Libor plus 625 bps from Libor plus 650 bps and modified the original issue discount to 99½ from 99, according to a market source.

As before, the loan has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

Recommitments were due at 4 p.m. ET on Friday, the source remarked.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the deal that will be used to refinance existing secured notes and to pay a dividend.

Neff is a Miami-based construction equipment rental company.

Vocus changes emerge

Vocus increased pricing on its $325 million first-lien term loan (B+) due 2021 to Libor plus 500 bps from Libor plus 450 bps, widened the original issue discount to 99 from 99½ and extended the 101 soft call protection to one year from six months, according to a market source.

Furthermore, pricing on the $115 million 71/2-year second-lien term loan (CCC+) was raised to Libor plus 850 bps from Libor plus 800 bps, the source said.

Additionally, the MFN sunset provision was eliminated and the excess cash flow sweep was lifted to 75% with step-downs from 50%.

As before, both term loans have a 1% Libor floor, and the second-lien term loan has a discount of 99 and call protection of 102 in year one and 101 in year two.

Vocus readies allocations

Allocations on Vocus' $465 million credit facility, which also includes a $25 million revolver (B+), are expected during the week of May 19, the source added.

Jefferies Finance LLC, Deutsche Bank Securities Inc., BMO Capital Markets and AllyCommercial Finance are leading the deal that will be used with equity to fund the buyout of the company by GTCR LLC for $18.00 per share, or about $446.5 million, and merger with Cision.

Total leverage is 4.5 times.

Closing is expected by the end of this quarter, subject a minimum tender condition, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, receipt of financing and other customary conditions.

Beltsville, Md.-based Vocus and Cision are providers of cloud-based marketing and public relations software.

Jason revises deal

Jason lifted the size of its seven-year covenant-light first-lien loan (B1/B) to $310 million from $300 million, while keeping pricing at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, and leaving the 101 soft call protection for one year intact, a market source said.

Meanwhile, the eight-year covenant-light second-lien loan (Caa1/CCC+) was trimmed to $110 million from $120 million and the offer price widened to 97 from 99, the source remarked. This debt is still priced at Libor plus 800 bps with a 1% Libor floor and has call protection of 103 in year one, 102 in year two and 101 in year three.

Earlier in the syndication process, pricing on the first-lien term loan was raised from Libor plus 375 bps, the discount was set at the wide end of the 99 to 99½ talk and the call protection was extended from six months, and pricing on the second-lien term loan was increased from Libor plus 725 bps and the call protection was changed from 102 in year one and 101 in year two.

Jason adjusts incremental

Another change made to the Jason deal was that the incremental allowance was modified to $80 million plus an unlimited amount subject to 3.75 times first-lien net leverage for first-lien incurrence and 4.5 times, versus 5.25 times previously, net secured leverage for second-lien incurrence, the source continued.

Recommitments for the $460 million credit facility, which also includes a $40 million revolver (B1/B), were due at 1 p.m. ET on Friday.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used with equity and proceeds from Quinpario Acquisition Corp.'s initial public offering that was completed in August to fund the buyout of the company by Quinpario from Saw Mill Capital LLC, Falcon Investment Advisors LLC and other investors for $538.65 million.

Closing is expected this quarter, subject to regulatory and shareholder approval and customary conditions.

Jason is a Milwaukee-based manufacturer of items within the seating, finishing, components and automotive acoustics markets. Quinpario is a St. Louis-based special purpose acquisition company.

Printpack restructures

Printpack cuts its first-lien term loan B to $225 million from $350 million, lifted pricing to Libor plus 500 bps from talk of Libor plus 375 bps to 400 bps. moved the original issue discount to 99 from 991/2, sweetened the call protection to a hard call of 102 in year one and 101 in year two from a 101 soft call for six months, shortened the maturity to six years from seven years and added a total leverage test to the previously covenant-light tranche, a market source remarked. The 1% Libor floor was unchanged.

Also, a $75 million seven-year second-lien term loan was added to the capital structure, with talk coming out at Libor plus 875 bps with a 1% Libor floor, an original issue discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

The company's now $480 million credit facility also includes a $180 million five-year asset-based revolver.

Printpack lead banks

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are leading Printpack's term loans, and Wells Fargo and Bank of America are leading the revolver.

Recommitments are due at 5 p.m. ET on Monday, the source added.

Proceeds will be used by the Atlanta-based converter of flexible and specialty rigid packaging to refinance existing debt and for general corporate purposes.

Connacher shutting early

Connacher Oil & Gas accelerated the commitment deadline on its C$140 million U.S. equivalent (about $128 million) four-year first-lien second-out term loan to 5 p.m. ET on Tuesday from Thursday, according to a market source.

The loan is talked at Libor plus 600 bps with a 1% Libor floor and an original issue discount of 99, and is non-callable for one year then at 101 in year two.

Credit Suisse Securities (USA) LLC is leading the deal that will be used for general corporate purposes and to refinance existing debt.

In addition, the company intends to amend its existing senior secured revolver and reduce the size to C$30 million from C$95 million.

Connacher is a Calgary, Alta.-based in-situ oil sands developer, producer and marketer of bitumen.

ION reveals talk

In more primary news, ION Trading held its bank meeting on Friday in London, and in connection with the event, talk on its first- and second-lien term loans surfaced, according to a market source.

The $400 million six-year first-lien term loan is talked at Libor plus 325 bps with a 1% Libor floor, a par offer price and 101 soft call protection for one year, the €300 million six-year first-lien term loan is talked at Euribor plus 350 bps with a 1% floor, an original issue discount of 99¾ and 101 soft call protection for one year, and the $300 million seven-year second-lien term loan is talked at Libor plus 675 bps with a 1% Libor floor, a par offer price, and call protection of 102 in year one and 101 in year two, the source said.

The roughly $1.15 billion credit facility also includes a $40 million five-year revolver.

The deal will launch to U.S. investors with a call at 12:30 p.m. ET on Tuesday.

UBS AG is leading the credit facility that will be used by the trading software provider to refinance existing debt.

Henniges on deck

Henniges Automotive set a bank meeting for 10:30 a.m. ET on Tuesday to launch a $335 million credit facility, according to a market source.

The facility consists of a $50 million five-year ABL revolver and a $285 million seven-year term loan B, the source said.

Barclays, Bank of America Merrill Lynch and UBS AG are leading the deal that will be used to refinance existing debt and fund a one-time distribution to equity holders.

Net leverage is 3.8 times and total leverage is 3.9 times, the source added.

Henniges is an Auburn Hills, Mich.-based supplier of highly-engineered automotive sealing and anti-vibration systems for automotive applications.

Tallgrass coming soon

Tallgrass Operations scheduled a call for 11:30 a.m. ET on Monday to launch a repricing of its $1,124,400,000 credit facility, according to a market source.

The facility currently consists of a $200 million revolver due Nov. 13, 2017 priced at Libor plus 400 bps, a $718.4 million term loan B due Nov. 13, 2018 priced at Libor plus 325 bps with a 1% Libor floor and a $206 million delayed-draw term loan due Nov. 13, 2017 priced at Libor plus 400 bps with a 0.75% Libor floor.

Barclays is the leading the deal.

Along with the repricing, the company will be launching some amendments to its credit facility, the source added.

Tallgrass is an Overland Park, Kan.-based owner, operator, acquirer and developer of midstream energy assets.

© 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.