Penn Products, Nortek break; CPM, Advantage Sales updates deals; Natel EMS shutting early

By Sara Rosenberg

New York, April 1 – Penn Products Terminals LLC’s credit facility made its way into the secondary market on Wednesday, with levels on its term loan B quoted above its original issue discount, and Nortek Inc. began trading as well.

Over in the primary market, CPM Holdings Inc. increased the size of its term loan B and added a leverage-based pricing step-down, Advantage Sales & Marketing LLC firmed the offer price on its add-on term loan, and Natel EMS accelerated the commitment deadline on its term loan.

Furthermore, Air Medical Group Holdings Inc. and Polymer Group Inc. released price talk with launch, USIC Holdings Inc. approached lenders with an add-on term loan B, Staples Inc. and NEP/NCP Holdco Inc. came out with timing on the launch of their new deals, and Nellson Nutraceutical LLC joined this week’s calendar.

Penn Products tops OID

Penn Products Terminals’ credit facility broke for trading on Wednesday, with the $600 million seven-year term loan B quoted at 100¼ bid, 101 offered on the open, according to a trader. By late afternoon, a second trader was quoting the loan at 100½ bid, 101¼ offered.

Pricing on the term loan B is Libor plus 375 basis points with a 1% Libor floor, and the debt has 101 soft call protection for one year. The loan was issued at a discount of 99½, after firming at the tight end of revised talk of 99 to 99½, and tight of initial talk of 99, a source remarked.

The company’s $750 million senior secured credit facility (Ba2/BB) also includes a $150 million five-year revolver priced at Libor plus 375 bps with an original issue discount of 99½.

Previously, in syndication, the term loan was upsized from $575 million, the revolver was upsized from $125 million, and pricing on both tranches was trimmed from talk of Libor plus 425 bps to 450 bps.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used with equity, the amount of which was reduced with the term loan upsizing, to fund the buyout of the company by ArcLight Capital Partners.

Penn Products is a refined product terminal storage business in Pennsylvania.

Nortek starts trading

Nortek’s fungible $265 million add-on term loan B (Ba3/BB-) also freed up for trading, with levels seen at 99¼ bid, 99¾ offered, according to a trader.

Pricing on the add-on loan matches existing term loan pricing at Libor plus 275 bps with a 0.75% Libor floor. The spread stepped down last week from Libor plus 300 bps as a result of an existing pricing grid that called for the change when Moody’s Investors Service upgraded Nortek’s corporate family rating to B2 from B3.

The add-on was sold at an original issue discount of 98.8, and all of the term loan B debt is getting 101 soft call protection for six months.

Separate trading will take in the place in the add-on term loan and the existing term loan until the new debt funds, a source added.

Nortek refinancing

Proceeds from Nortek’s add-on term loan will be used to refinance 10% notes, and due to a recent upsizing from $250 million, to fund the call premium on the notes.

Also during syndication, the discount on the add-on loan was tightened from 98¼.

Wells Fargo Securities LLC, RBC Capital Markets LLC, UBS AG and Jefferies Finance LLC are leading the deal.

Nortek is a Providence, R.I.-based manufacturer of air management and technology-driven products and services for residential and commercial applications.

CPM revises deal

Switching to the primary market, CPM Holdings raised its seven-year term loan B to $315 million from $295 million, added a step-down to Libor plus 475 bps at 2.5 times net secured leverage, and moved up the commitment deadline to 5 p.m. ET on Wednesday from Thursday, according to a market source. Allocations are expected on Thursday morning.

Initial pricing on the term loan was unchanged at Libor plus 500 bps, and the debt still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s now $345 million senior secured credit facility also includes a $30 million revolver.

CPM leads

Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are the joint bookrunners on CPM’s credit facility and joint lead arrangers with Rabobank and ING.

Proceeds will be used with a privately placed second-lien term loan to refinance existing debt and pay a distribution to shareholders. Of the term loan upsizing amount, $15 million will add cash to the balance sheet and $5 million will be applied to the dividend, the source added.

CPM is a Waterloo, Iowa-based supplier of process equipment used for oilseed processing and animal feed production.

Advantage Sales sets OID

Advantage Sales & Marketing finalized the original issue discount on its fungible $150 million add-on term loan (B) at 99½, the tight end of the 99 to 99½ talk, according to a market source.

The add-on term loan is priced at Libor plus 325 basis points with a 1% Libor floor, in line with the existing term loan, and all of the debt is getting 101 soft call protection for six months.

Commitments are due at noon ET on Thursday, with allocations expected early next week, the source added.

Jefferies Finance LLC is leading the deal that will be used for acquisition financing.

Advantage Sales & Marketing is an Irvine, Calif.-based sales and marketing agency.

Natel moves deadline

Natel EMS accelerated the commitment deadline on its $280 million five-year term loan (B1/BB-) to Thursday from Tuesday, a market source said.

The loan is talked at Libor plus 575 bps with a 1% Libor floor, an original issue discount of 99 and soft call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA and GE Capital Markets are leading the deal that will be used to help fund the acquisition of OnCore Manufacturing from Charlesbank.

Leverage is 2.6 times.

Natel is a Chatsworth, Calif.-based manufacturer of electronic components. OnCore Manufacturing is a Springfield, Mass.-based provider of high-complexity electronics manufacturing services.

Air Medical reveals talk

Also in the primary, Air Medical held its bank meeting on Wednesday, launching its $920 million seven-year term loan B (B2) with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, according to a market source.

Commitments are due on April 15, the source said.

The company’s $1,095,000,000 senior credit facility also includes a $175 million ABL facility, and there is a commitment for a $460 million unsecured bridge loan as well.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC, KKR Capital Markets LLC, Nomura Securities International Inc. and MCS Capital Markets LLC are leading the term loan B, and Bank of America Merrill Lynch, Morgan Stanley, Jefferies, KKR, Nomura and MCS are leading the ABL facility.

Proceeds will be used to help fund the buyout of the Lewisville, Texas-based provider of air ambulance services by KKR from Bain Capital and Brockway Moran & Partners.

Closing is expected in the second quarter, subject to customary regulatory approvals.

Polymer guidance emerges

Polymer Group came out with talk of Libor plus 425 bps with a 1% Libor floor and an original issue discount in the 99½ area on its $70 million add-on term loan that launched with a call during the session, a source remarked.

The spread and floor on the add-on term loan matches the existing term loan, and all of the term loan debt will get 101 soft call protection for six months, the source said.

Commitments are due on Thursday.

Jefferies Finance LLC is leading the deal that will be used to fund the acquisition of Dounor SAS.

Closing is expected in the second quarter, subject to customary terms and conditions.

Polymer Group is a Charlotte, N.C.-based developer, producer and marketer of specialty materials used in infection prevention, personal care and high-performance solutions. Dounor is a Neuville en Ferrain, France-based manufacturer of materials used in hygiene, health care and industrial applications.

USIC holds call

USIC emerged in the morning with plans to hold a lender call at 2:30 p.m. ET to launch a $40 million add-on term loan B due July 2020 talked at Libor plus 300 bps with a 1% Libor floor and an original issue discount in the 99 area, a market source said.

Closing and funding is targeted for April 8, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to fund the recently completed acquisition of Premier Utility Services from Willbros Group Inc.

USIC is an Indianapolis-based underground utility locating and damage prevention company.

Staples timing surfaces

Staples set a bank meeting for 11 a.m. ET on Tuesday to launch its previously announced $5.75 billion credit facility, a market source said.

The facility consists of a $3 billion asset-based five-year revolver and a $2.75 billion six-year senior secured term loan B, with official price talk not yet available.

In February, the company said in an 8-K filed with the Securities and Exchange Commission that revolver pricing is expected at Libor plus 150 bps to 200 bps based on average excess availability, and the term loan B is expected at Libor plus 375 bps with a 0.75% Libor floor and 101 soft call protection for six months.

Barclays, Bank of America Merrill Lynch, Wells Fargo Securities LLC and HSBC Securities (USA) Inc. are leading the deal.

Staples funding acquisition

Proceeds from Staples’ credit facility, stock and cash on hand will finance the $6.3 billion acquisition of Office Depot Inc. and refinance some debt at both companies.

Specifically, Office Depot shareholders will receive, for each Office Depot share, $7.25 in cash and 0.2188 of a share in Staples stock at closing.

Closing is expected by year-end, subject to customary conditions, including antitrust regulatory approval and Office Depot shareholder approval.

Staples is a Framingham, Mass.-based retailer of office supplies. Office Depot is a Boca Raton, Fla.-based provider of products, services, and solutions for the workplace.

NEP on deck

NEP/NCP Holdco scheduled a lender call for 10 a.m. ET on Tuesday to launch a $75 million incremental second-lien term loan (Caa1/B-) due July 22, 2020, according to a market source.

Barclays is leading the deal that will be used with equity to fund the acquisition of Mediatec Group, fund a separate bolt-on acquisition and repay some revolver borrowings.

Previously it was known that the company was planning on using incremental debt for the Mediatec transaction, but timing and structure were unavailable.

NEP is a Pittsburgh-based provider of outsourced teleproduction services critical to the delivery of live sports and entertainment events. Mediatec is a Sweden-based provider of integrated technical solutions for event and television productions.

Nellson readies add-on

Nellson Nutraceutical surfaced with plans to hold a call on Thursday to launch a $50 million add-on term loan talked at Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99, a market source remarked.

The spread and floor on the add-on loan match the existing term loan.

GE Capital Markets is leading the deal that will be used to help fund the acquisition of certain production assets from NBTY Inc.

Nellson Nutraceutical, a Kohlberg & Co. LLC portfolio company, is an Irwindale, Calif.-based nutritional diet protein energy diabetic medical bar and powder manufacturer.

ServiceMaster closes

In other news, ServiceMaster Co. LLC completed its $175 million incremental term loan due 2021, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the incremental term loan is Libor plus 325 bps with a 1% Libor floor, in line with existing term loan pricing, and it was sold at an original issue discount of 99¾, after tightening during syndication from 99½.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Jefferies Finance LLC, Natixis and RBC Capital Markets LLC led the deal that was used to help fund the redemption of $200 million 8% senior notes due 2020.

ServiceMaster is a Memphis-based provider of maintenance services to residential and commercial customers.

Valeant wraps

Valeant Pharmaceuticals International Inc., a Laval, Quebec-based specialty pharmaceutical company, closed on its acquisition of Salix Pharmaceuticals Ltd., a Raleigh, N.C.-based pharmaceutical and medical devices company, a news release said.

To help fund the transaction, Valeant got $5.15 billion of incremental term loan debt (Ba1/BB), comprised of a $1 billion incremental five-year term loan A, a $2.35 billion seven-year senior secured first-lien term loan F-1 and a $1.8 billion seven-year senior secured first-lien delayed-draw term loan F-2.

Pricing on F loans is Libor plus 325 bps with a step to Libor plus 300 bps at 1.75 times net senior secured leverage and a 0.75% Libor floor. The debt was issued at 99½ and has 101 soft call protection for six months.

During syndication, the total amount of term F debt was reduced to $4.15 billion from $4.55 billion as the company’s bond offering was increased to $10 billion equivalent from $9.6 billion, pricing was trimmed from Libor plus 350 bps and the discount was tightened from 99.

Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., the Bank of Tokyo-Mitsubishi UFJ Ltd., DNB Markets Inc., SunTrust Robinson Humphrey Inc., Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets and Citigroup Global Markets Inc. led the deal.

Townsquare completed

Townsquare Media Inc. closed on its $325 million senior secured credit facility (Ba2/BB-) that includes a $50 million five-year revolver and a $275 million seven-year term loan B, a news release said.

Pricing on the B loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

During syndication, the term loan B was upsized from $255 million in connection with the company’s bond offering being reduced to $300 million from $320 million, pricing was cut from Libor plus 375 bps, the call protection was extended from six months and the MFN sunset was eliminated.

Proceeds were used to refinance an existing senior secured credit facility and 9% senior notes due 2019.

RBC Capital Markets LLC, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., Macquarie Capital (USA) Inc. and Jefferies Finance LLC led the deal.

Townsquare Media is a Greenwich, Conn.-based diversified media and entertainment and digital marketing services company.

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