US LBM frees to trade; KIK Custom Products modifies loan; Townsquare moves up deadline

By Sara Rosenberg

New York, Aug. 19 – US LBM Holdings LLC’s credit facility emerged in the secondary market on Wednesday, with the first- and second-lien term loans bid in line with their original issue discounts.

Moving to the primary market, KIK Custom Products Inc. raised pricing on its term loan, widened the issue price and extended the call protection, and Townsquare Media Inc. accelerated the commitment deadline on its add-on term loan.

Furthermore, Blue Bird Body Co. pulled its repricing transaction from market, and Anaren Inc. disclosed original issue discount guidance on its add-on term loan that launched during the session.

US LBM hits secondary

US LBM’s credit facility began trading on Wednesday, with the $656.5 million seven-year first-lien covenant-light term loan (B3/B+) quoted at 98 bid, 98˝ offered and the $154.5 million eight-year second-lien covenant-light term loan (Caa2/B-) quoted at 96 bid, 97 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 525 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 925 bps with a 1% Libor floor, and was issued at a discount of 96. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $650 million, pricing was increased from talk of Libor plus 450 bps to 475 bps, the discount widened from 99 and the soft call protection was extended from six months.

Also during syndication, the second-lien term loan downsized from $150 million, pricing was lifted from talk of Libor plus 850 bps to 875 bps and the discount was revised from 98.5.

US LBM getting revolver

Along with the first- and second-lien term loans, US LBM’s $986 million credit facility includes a $175 million ABL revolver.

Credit Suisse Securities (USA) LLC, RBC Capital Markets, Barclays and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Kelso & Co. BlackEagle Partners LLC and certain members of the company’s management will be investors along with Kelso.

Funds from the recent upsizings to the term loans will be used to cover the wider original issue discounts.

US LBM is a Green Bay, Wis.-based owner of building material distribution businesses.

KIK reworks deal

Switching to the primary market, KIK Custom Products raised pricing on its $850 million seven-year senior secured covenant-light term loan (B2/B-) to Libor plus 500 bps from talk of Libor plus 450 bps to 475 bps, moved the original issue discount to 97.5 from 99 and pushed out the 101 soft call protection to one year from six months, a market source said.

As before, the term loan has a 1% Libor floor.

Final commitments are due by noon ET on Thursday, the source added.

In addition to the term loan, the company’s $1,075,000,000 credit facility includes a $225 million five-year asset-based revolver.

Barclays, BMO Capital Markets Corp., Nomura Securities International Inc. and Macquarie Capital (USA) Inc. are leading the deal.

KIK being acquired

Proceeds from KIK’s credit facility and $390 million of senior unsecured notes will be used to help fund its buyout by Centerbridge Partners LP from CI Capital Partners.

Net first-lien leverage is 4.1 times, and net total leverage is 5.9 times.

Closing on the buyout is subject to customary conditions and approvals.

KIK is a Toronto-based developer and marketer of pool and spa treatment products and a manufacturer of household and personal care products.

Townsquare shutting early

Townsquare Media accelerated the commitment deadline on its fungible $45 million add-on term loan to Thursday from Tuesday, according to a market source.

Pricing on the add-on term loan is Libor plus 325 basis points with a 1% Libor floor, in line with existing term loan pricing, and it is talked with an original issue discount of 99.5 to 99.75.

RBC Capital Markets is leading the deal that will be used to help fund the acquisition of North American Midway Entertainment LLC for about $75.5 million, subject to certain working capital and other adjustments.

Townsquare Media is a Greenwich, Conn.-based diversified media and entertainment and digital marketing services company. North American Midway Entertainment is a Farmland, Ind.-based provider of rides, games and food concessions.

Blue Bird pulled

Blue Bird Body withdrew the repricing of its roughly $229 million first-lien term loan that was talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

The repricing would have taken pricing on the term loan down from Libor plus 550 bps with a 1% Libor floor.

In addition, the company shelved its amendment that would have widened leverage covenants.

Lenders were offered a 12.5 bps consent fee for the amendment.

Societe Generale, Macquarie Capital (USA) Inc. and Fifth Third Securities Inc. were leading the repricing and amendment.

Blue Bird is a Fort Valley, Ga.-based manufacturer of school buses and a provider of aftermarket parts and services.

Anaren sets OID talk

Also in the primary market, Anaren held its lender call on Wednesday, launching its fungible $30 million add-on first-lien term loan (B+) with original issue discount talk of 99, a market source said.

The add-on term loan is priced at Libor plus 450 bps with a 1% Libor floor, in line with existing term loan pricing.

Commitments are due on Friday, the source added.

Jefferies Finance LLC is leading the deal that will be used to fund an acquisition.

Anaren is a Syracuse, N.Y.-based designer, developer, manufacturer and seller of integrated microwave components, assemblies and subsystems for the wireless communications, satellite communications and defense electronics markets.

Albany Molecular closes

Albany Molecular Research Inc. completed its $230 million amended and restated credit facility (B1/B+), according to an 8-K filed with the Securities and Exchange Commission.

The facility includes a $30 million five-year revolver and a $200 million six-year term loan B.

Pricing on the term loan is Libor plus 475 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, the call protection on the term loan was extended from six months, and the free and clear incremental basket was reduced to $50 million from $60 million. Any incremental term loan will be prohibited to make a junior debt payment.

Barclays led the deal that was be used to support the company’s acquisition of Gadea Grupo Farmaceutico and to repay revolver borrowings.

Net senior secured leverage is 1.5 times, and net total leverage is 3.9 times.

Albany Molecular is an Albany, N.Y.-based drug discovery services and manufacturing company.

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