Astra changes surface; Messer Industries shelves repricing; Alkermes reveals price talk

By Sara Rosenberg

New York, Feb. 24 – In the primary market on Monday, Astra lifted the spread on its first-lien term loan, increased the Libor floor and widened the original issue discount, and Messer Industries withdrew the repricing of its U.S. and euro term loans due to unfavorable market conditions.

Furthermore, Alkermes Inc. released price talk with launch, and Capstone Logistics Acquisition Inc., Service Logic and Atlas Technical Consultants Inc. joined this week’s primary calendar.

Astra revised

Astra raised pricing on its $325 million seven-year first-lien term loan (B2/B-/BB-) to Libor plus 550 basis points from Libor plus 500 bps, lifted the Libor floor to 1% from 0% and changed the original issue discount to 98.5 from 99, according to a market source.

As before, the first-lien term loan has 101 soft call protection for six months.

Allocations are expected on Wednesday, the source said.

The company’s $475 million of credit facilities also include a $40 million revolver (B2/B-/BB-) and an already placed $110 million second-lien term loan (Caa2/CCC/CCC+).

UBS, Deutsche Bank Securities Inc. and Barclays are leading the deal that will be used to help fund the acquisition of Campus Management Acquisition Corp. and Edcentric Holdings LLC by Veritas Capital from Leeds Equity Partners LLC. Leeds will continue as an investor in the combined entity (Astra) in partnership with Veritas.

Closing is expected this quarter.

Campus Management is a provider of cloud-based student information systems, customer relationship management and enterprise resource planning solutions. Edcentric is a SaaS platform providing data-driven solutions around student and alumni engagement, retention and compliance.

Messer pulled

Messer Industries shelved the repricing of its $2.206 billion term loan B due March 2026 and €540 million term loan B due March 2026 because of market conditions, a market source remarked.

The term loans were talked at Libor/Euribor plus 225 bps with a 0% floor and 101 soft call protection for six months. The U.S. term loan was talked with an original issue discount of 99.875, and the euro term loan was talked with a step-up to Euribor plus 250 bps at more than 4.5x net leverage discount and a discount in the range of 99.875 to par.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., UBS Investment Bank, BNP Paribas Securities Corp., ING, UniCredit, Bayern LB, Deutsche Bank Securities Inc., Helaba and Mizuho were leading the deal. Goldman was the left lead on the U.S. loan, and Citigroup and UBS were the joint active leads on the euro loan.

The repricing would have taken the existing U.S. term loan down from Libor plus 250 bps and the existing euro term loan down from Euribor plus 275 bps with a step to Euribor plus 250 bps.

Messer Industries is a producer and refiner of industrial gases for customers across several industries.

Alkermes sets guidance

Alkermes held its lender call on Monday and announced talk on its $350 million five-year senior secured covenant-lite term loan B (Ba3/BB) at Libor plus 225 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on March 4, the source added.

Morgan Stanley Senior Funding Inc. and Cowen are leading the deal that will be used to refinance an existing term loan B and to fund general corporate purposes.

Alkermes is a Dublin-based biopharmaceutical company.

Capstone readies deal

Capstone Logistics set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $395 million seven-year first-lien term loan B, according to a market source.

The term loan is talked with a 0% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due at noon ET on March 6.

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

Capstone is a Peachtree Corners, Ga.-based third-party logistics company.

Service Logic on deck

Service Logic emerged with plans to hold a lender call on Wednesday afternoon to launch $140 million of incremental bank debt, a market source said.

The debt consists of a $40 million term loan and a $100 million delayed-draw term loan, the source said.

Antares Capital is leading the deal that will be used to fund acquisitions.

Service Logic, a Warburg Pincus portfolio company, is a Charlotte, N.C.-based provider of aftermarket maintenance, repair and replacement services for commercial HVAC equipment, chilled water systems and building automation and controls systems.

Atlas coming soon

Atlas Technical Consultants scheduled a bank meeting for Wednesday to launch its $321 million of credit facilities, a market source remarked.

The facilities consist of a $40 million revolver and a $281 million seven-year term loan B.

The credit agreement filed with the Securities and Exchange Commission outlines term loan B pricing at Libor plus 475 bps.

Macquarie Capital (USA) Inc. and Natixis are leading the deal that will be used to support the acquisition of Atlas Intermediate Holdings LLC by Boxwood Merger Corp., which was completed earlier this month, to fund an acquisition and to refinance existing debt.

Atlas is an Austin, Tex.-based provider of professional testing, inspection, engineering and consulting services. Boxwood is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.

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