Platform Specialty breaks; Albertson’s, Endemol, St. George’s University revisions surface

By Sara Rosenberg

New York, Aug. 4 – Platform Specialty Products Corp.’s (MacDermid Inc.) bank debt made its way into the secondary market on Monday with the add-on U.S. term loan B bid right around its original issue discount.

Over in the primary, Albertson’s Holdings LLC (Safeway Acquisition Merger Sub Inc.) widened price talk on its term loans and modified the offer price on the B-3 tranche, and Endemol Holdings NewCo modified pricing and the original issue discounts on all of its term loans for a second time.

Also, St. George’s University lowered the spread on its term loan and tightened the original issue discount, and Travelport LuxCo, Acosta Sales & Marketing and Bioplan/Arcade Marketing disclosed price talk with launch.

Platform frees up

Platform Specialty Products’ bank debt broke for trading on Monday, with the $130 million add-on U.S. term loan B quoted at 99½ bid, par offered, according to a trader.

Pricing on the U.S. loan is Libor plus 300 basis points with a 1% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 90 and the full spread thereafter.

The company is also getting a €205 million term loan B priced at Euribor plus 325 bps with a 1% floor and issued at 99½. This tranche also has 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 90 and the full spread thereafter.

Last week, the offer price on the incremental U.S. and euro senior secured covenant-light first-lien term loan B debt due June 7, 2020 firmed at the low end of the 99 to 99½ talk.

Barclays is leading the deal.

Platform funding acquisition

Proceeds from Platform Specialty’s incremental first-lien term loan will be used with cash on hand to fund the acquisition of Chemtura AgroSolutions from Chemtura Corp. for about $1 billion, consisting of $950 million in cash, subject to working capital and other adjustments, plus 2 million shares of Platform’s common stock.

With the incremental first-lien term loan, Platform Specialty Products sought an amendment to its existing credit facility to account for the scale and corporate strategy of the pro forma company.

Existing lenders were offered a 25 bps consent fee for the amendment.

Closing is expected in the second half of this year, subject to customary conditions and regulatory approvals.

Pro forma net senior secured and total leverage is 3.8 times.

Platform is a Miami-based producer of high-technology specialty chemical products and provider of technical services. Chemtura AgroSolutions is a provider of agrochemicals and seed treatment products.

MD America holds steady

Also in trading, MD America Energy LLC’s $525 million five-year second-lien term loan (Caa2/CCC+) was seen at 95¼ bid, 96¼ offered, in line with where the debt freed up on Friday, a trader said.

Pricing on the term loan is Libor plus 850 bps with a 1% Libor floor, and it was sold at an original issue discount of 95, after widening the other day from 98. The debt is non-callable for one year, then at 103 in year two and 101 in year three.

Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt.

MD America is an upstream oil and gas company.

Albertson’s revises deal

Moving to the primary, Albertson’s increased price talk on its $1,519,000,000 five-year first-lien covenant-light term loan B-3 to Libor plus 375 bps to 400 bps from Libor plus 325 bps and widened the original issue discount to 99 from 99½, according to a market source.

Also, price talk on the $3.04 billion seven-year first-lien covenant-light term loan B-4 was lifted to Libor plus 425 bps to 450 bps from Libor plus 375 bps, the source said.

As before, both term loans have a 1% Libor floor and 101 soft call protection for six months, and the term B-4 has an offer price of 99.

With the flex, the ticking fee on the loans, which was described as to be determined at launch, was disclosed as the full spread starting on day 31, the source added.

Commitments continue to be due on Thursday.

Albertson’s lead banks

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc., PNC Capital Markets LLC, US Bank and SunTrust Robinson Humphrey Inc. are leading Albertson’s $4,559,000,000 of term loans (Ba3/BB-).

Proceeds will be used to fund the acquisition of Safeway Inc., a Pleasanton, Calif.-based food and drug retailer.

Closing is subject to customary conditions, including approval by Safeway shareholders and regulatory approvals.

Albertson’s is a Spokane, Wash.-based supermarket chain.

Endemol reworked

Endemol increased pricing on its $610 million first-lien term loan to Libor plus 575 bps from revised talk of Libor plus 525 bps and initial talk of Libor plus 475 bps, on its €185 million first-lien term loan to Euribor plus 600 bps from revised talk of Euribor plus 525 bps and initial talk of Euribor plus 475 bps, and on its £50 million first-lien term loan to Libor plus 675 bps from revised talk of Libor plus 575 bps and initial talk of Libor plus 525 bps, according to a market source.

Furthermore, the original issue discount on the U.S. and euro first-lien term loans moved to 97 from modified talk of 98 and initial talk of 99, the discount on the GBP term loan widened to 95½ from revised talk of 98 and initial talk of 99, and the call protection on all of the tranches was sweetened to a 101 hard call for one year from a 101 soft call for six months, the source said.

Also, the U.S. first-lien term loan could upsize slightly to cover the change in offer price.

All of the first-lien term loans (B1/B) still have a 1% floor.

Documentation changes included 75% cash flow sweep and tighter debt incurrence and restricted payments flexibility.

Endemol flexes second-lien

Regarding Endemol’s €335 million equivalent second-lien term loan (Caa1/CCC+), the spread was lifted to Libor/Euribor plus 900 bps from revised talk of Libor/Euribor plus 875 bps and initial talk of Libor/Euribor plus 825 bps, and the original issue discount was modified to 92 from revised talk of 97½ to 98 and initial talk of 99, the source continued.

As before, the second-lien loan term loan has a 1% floor and call protection of 103 in year one, 102 in year two and 101 in year three.

Allocations on the now oversubscribed deal are targeted for Wednesday, the source added.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Credit Suisse and Nomura are leading the term loans, with Deutsche left lead on the first-lien and JPMorgan left on the second-lien loan.

Proceeds will be used to help fund the recapitalization of the company by Apollo Global Management.

Endemol is an Amsterdam-based creator, producer and distributor of multiplatform entertainment.

St. George’s cuts pricing

St. George’s University lowered pricing on its $250 million seven-year covenant-light term loan to Libor plus 475 bps from Libor plus 500 bps and moved the original issue discount to 99½ from 99, a market source said, adding that the 1% Libor floor and 101 soft call protection for one year were unchanged.

The company’s $275 million credit facility also includes a $25 million revolver.

Recommitments were due at 5 p.m. ET on Monday, the source remarked.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will be used for a recapitalization in connection with an equity investment.

St. George’s is a Grenada, West Indies-based for-profit medical, veterinary and arts and sciences school.

Travelport discloses talk

Also on the new deal front, Travelport came out with talk of Libor plus 400 bps with a 50 bps step-down upon completion of a qualified initial public offering, a 1% Libor floor and an original issue discount of 99 on its $2.3 billion seven-year term loan B that launched with a bank meeting on Monday, according to a market source.

As previously reported, the loan has 101 soft call protection for six months.

The company’s $2.4 billion credit facility (B3/B-) also includes a $100 million five-year revolver.

Commitments are due on Aug. 13 and closing is expected on Sept. 2, the source said.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with a $500 million senior unsecured bridge loan or bonds to refinance the company’s existing capital structure, including term loans and notes.

Travelport Ltd. is an Atlanta-based provider of transaction processing services to the travel industry.

Acosta reveals guidance

Acosta Sales & Marketing launched with a call its $2,065,000,000 seven-year term loan with talk of Libor plus 350 bps to 375 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.

The company’s $2.29 billion credit facility also includes a $225 million five-year revolver.

J.P. Morgan Securities LLC, Goldman Sachs and Morgan Stanley are leading the deal that will be used to help fund the buyout of the company by the Carlyle Group from Thomas H. Lee Partners LP. GIC, an investor in Acosta, will re-invest in the company.

Closing is expected in the third quarter.

Acosta is a Jacksonville, Fla.-based full-service sales and marketing agency in the consumer goods industry.

Bioplan/Arcade launches

Bioplan/Arcade Marketing held its bank meeting, launching its $375 million seven-year first-lien covenant-light term loan with talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

And, the $145 million eight-year second-lien covenant-light term loan was launched at Libor plus 750 bps to 775 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source continued.

The company’s $585 million credit facility also includes a $65 million revolver.

Commitments are due on Aug. 13.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. are leading the deal, with Goldman left lead on the first-lien loan and Credit Suisse left lead on the second-lien loan.

Bioplan, Arcade merging

Proceeds from the Bioplan/Arcade Marketing credit facility will be used to fund the merger of the two companies.

Bioplan is owned by Ileos, which is owned by Oaktree Capital Management LP, and Arcade Marketing is owned by Visant Corp., which is controlled by KKR and DLJ Merchant Banking. With the merger, Oaktree would retain a 75% ownership interest and KKR/DLJ Merchant would retain a 25% ownership interest in the combined company.

Closing is expected by the beginning of the fourth quarter, subject to customary conditions and regulatory reviews.

Bioplan is a provider of unit-dose sampling and promotional turnkey products. Arcade Marketing is a New York-based provider of sampling products for the fragrance, cosmetics and skincare segments.

BWAY floats unofficial talk

In other news, BWAY Holding Co. is heard to be unofficially indicating talk of Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99½ on its $1.1 billion six-year term loan B (B2/B-) that launched with a call on Friday, a market source remarked.

Official talk on the loan is not yet out, another source added.

Bank of America Merrill Lynch is leading the deal that will be used with $770 million of senior notes to repay an existing term loan, redeem opco notes, parent company notes and intermediate notes, and pay a special $200 million dividend to shareholders.

In addition, the company plans to amend its existing asset-based revolving credit facility to facilitate the transactions.

BWAY is an Atlanta-based supplier of general line rigid containers.

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