Sensata breaks; Advanced Drainage, Cumulus, CoAdvantage, Vigor/MHI updates emerge

By Sara Rosenberg

New York, Sept. 18 – Sensata Technologies Inc.’s amended and extended term loan B freed up for trading on Wednesday, and the debt was quoted above par.

Moving to the primary market, Advanced Drainage Systems Inc. lowered the spread and tightened the original issue discount on its first-lien term loan, and Cumulus Media Inc. reduced pricing and modified the issue price on its term loan B.

Also, CoAdvantage (AQ Carver Buyer Inc.) widened spreads and original issue discounts on its first- and second-lien term loans, and made a number of documentation changes, Vigor Industrial/MHI Holdings raised pricing on its term loan B, and Medical Solutions came out with price talk on its incremental term loans with launch.

Sensata hits secondary

Sensata Technologies’ $463,041,097 seven-year covenant-lite senior secured term loan B (Baa3/BBB-) began trading, with levels quoted at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the term loan is Libor plus 175 basis points with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Tuesday, the issue price on the term loan was tightened from talk in the range of 99.5 to 99.75.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Barclays, BofA Securities, Inc., Mizuho Bank and RBC Capital Markets are leading the deal that will amend and extend an existing term loan B due Oct. 14, 2021 that is priced at Libor plus 175 bps with a 0% Libor floor.

The term loan B is currently sized at roughly $913 million but is being paid down to about $463 million with proceeds from a recently priced $450 million senior note offering.

Closing is expected on Friday.

Sensata is a producer of sensors and controls for manufacturers in the automotive, appliance, aircraft, industrial and HVAC markets.

Advanced Drainage revised

Switching to the primary market, Advanced Drainage trimmed pricing on its $700 million seven-year first-lien term loan to Libor plus 225 bps from talk in the range of Libor plus 275 bps to 300 bps and changed the original issue discount to 99.75 from 99, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

The company’s $1.05 billion of credit facilities (Ba1/BB) also includes a $350 million five-year revolver.

Recommitments were due at noon ET on Wednesday, the source said.

Barclays, Morgan Stanley Senior Funding Inc., BofA Securities, Inc., PNC Capital Markets, BMO Capital Markets, Fifth Third Bank and HSBC Securities (USA) Inc. are leading the deal.

Advanced Drainage acquisition

Advanced Drainage will use the new credit facilities, along with proceeds from $350 million of senior notes and a recently completed equity offering, to support the acquisition of Infiltrator Water Technologies Ultimate Holdings Inc. and to pay related fees and expenses.

Infiltrator Water, an Old Saybrook, Conn.-based on-site septic wastewater treatment company, was bought on July 31 for about $1.08 billion from Ontario Teachers’ Pension Plan and other stockholders.

Advanced Drainage is a Hilliard, Ohio-based manufacturer of water management products and drainage solutions for use in the construction and infrastructure marketplace.

Cumulus flexes

Cumulus Media cut the spread on its $525 million term loan B (B2/B) to Libor plus 375 bps from Libor plus 400 bps and adjusted the original issue discount to 99.5 from 99, a market source said.

The term loan still has 101 soft call protection for six months.

BofA Securities, Inc. is leading the deal that will be used to repay an existing term loan.

Cumulus Media is an Atlanta-based radio broadcaster.

CoAdvantage reworked

CoAdvantage lifted pricing on its $325 million seven-year covenant-lite first-lien term loan (B2/B) to Libor plus 500 bps from Libor plus 450 bps and moved the original issue discount to 99 from 99.5, according to a market source.

Additionally, the company raised pricing on its $130 million eight-year covenant-lite second-lien term loan (Caa2/CCC) to Libor plus 900 bps from Libor plus 850 bps and changed the discount to 98 from 99, the source said.

Also, MFN was modified to 50 bps for life from 75 bps for six months and the MFN carve-outs were eliminated, and the incremental was revised to the greater of $48.75 million and 75% of LTM EBITDA from the greater of $65 million and 100% of LTM EBITDA, the unlimited ratio was modified to 4.75x net first-lien leverage from 5x, and the $50 million inside maturity carve-out was eliminated.

Furthermore, the asset sale step-downs were eliminated from mandatory prepayments, the unlimited investments ratio was reduced to 0.75x inside closing total net leverage from 0.25x inside closing total net leverage, the unlimited junior debt prepayments ratio was reduced to 1x inside closing total net leverage from 0.75x inside closing total net leverage, the available amount was revised to $16.25 million with no grower component from the greater of $32.5 million and 50% of LTM EBITDA, and a 25% cap was added under EBITDA.

The term loans still have a 0% Libor floor.

CoAdvantage getting revolver

Along with the first- and second-lien term loans, CoAdvantage’s $500 million of credit facilities include a $45 million revolver (B2/B).

Commitments are due at noon ET on Friday, extended from noon ET on Thursday, the source added.

Deutsche Bank Securities Inc., Antares Capital and Madison Capital are leading the deal that will be used to help fund the buyout of the company by Aquiline Capital Partners from investment funds managed by Morgan Stanley Capital Partners.

Closing is subject to customary conditions, including regulatory approvals.

CoAdvantage is a Tampa, Fla.-based professional employer organization and a provider of strategic human resource solutions.

Vigor tweaks loan

Vigor Industrial/MHI Holdings flexed pricing on its $500 million seven-year term loan B (B2/B) to Libor plus 500 bps from Libor plus 475 bps, according to a market source.

The term loan still has a 0% Libor floor and an original issue discount of 99.

BofA Securities, Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Citizens Bank and Mizuho are leading the deal that will be used to help fund the buyout and merger of Vigor Industrial and MHI by the Carlyle Group and Stellex Capital Management.

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

Vigor Industrial, majority-owned by chief executive officer Frank Foti, is a provider of complex fabrication and ship repair services. MHI, owned by Stellex Capital, is a provider of full-range ship maintenance, repair and modernization services.

Wells Enterprises accelerated

Wells Enterprises Inc. moved up the commitment deadline for its $185 million add-on term loan B (BB-) to 5 p.m. ET on Thursday from 5 p.m. ET on Tuesday, a market source remarked.

Talk on the term loan is Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

BMO Capital Markets is leading the deal that will be used to fund the acquisition of the Halo Top ice cream brand from Eden Creamery LLC.

Closing is expected this month, subject to customary conditions.

The add-on term loan is expected to be fungible with the company’s existing $273 million term loan B due March 2025 that is currently priced at Libor plus 275 bps with a 0% Libor floor.

Wells Enterprises is a Le Mars, Iowa-based ice cream and frozen treat manufacturer.

Medical Solutions guidance

Medical Solutions held its bank meeting on Wednesday and announced price talk on its fungible $270 million incremental first-lien term loan (B1) and non-fungible $100 million incremental second-lien term loan (Caa1), according to a market source.

Talk on the incremental first-lien term loan is Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the incremental second-lien term loan is Libor plus 875 bps with a 1% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two, the source said.

The company also plans to upsize its revolver by $20 million.

Commitments are due on Oct. 2.

Medical Solutions leads

UBS Investment Bank is leading Medical Solutions’ bank debt. ING and Madison Capital Funding are joint bookrunners on the revolver and first-lien term loan.

The new loans will be used to fund the acquisition of C&A Industries Inc.

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

In connection with this transaction, pricing on the company’s existing first-lien term loan will increase from Libor plus 375 bps with a 1% Libor floor to match the incremental term loan pricing, and pricing on the existing second-lien term loan will be unchanged at Libor plus 825 bps with a 1% Libor floor, the source added.

Medical Solutions is an Omaha-based health care staffing company. C&A is an Omaha-based staffing and recruitment firm.

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