Diamond Resorts, US LBM break; Pinnacle Foods term loan softens; Swissport revisions surface

By Sara Rosenberg

New York, Nov. 24 – Diamond Resorts Corp. and US LBM Holdings LLC saw their tack-on first-lien term loans free up for trading on Tuesday, and Pinnacle Foods Inc.’s term loan G was a little lower after the company revealed that it would be taking on additional debt for an acquisition.

Meanwhile, in the primary market, Swissport Group restructured its transaction, cancelling a U.S. term loan B, expanding a euro term loan B and adding a notes offering.

Additionally, TierPoint nailed down timing on the launch of its incremental bank debt, and Apco Holdings Inc., MB Aerospace, PLZ Aeroscience Corp. and ProQuest are getting ready to bring new deals to market.

Diamond tops OID

Diamond Resorts’ $150 million tack-on first-lien term loan (B+) due May 2021 began trading on Monday, with the debt quoted at 98½ bid, 99½ offered on the open and then levels tightened to 98½ bid, 99 offered, according to a trader.

Pricing on the tack-on loan is Libor plus 450 basis points with a 1% Libor floor, in line with existing first-lien term loan pricing, and the debt was sold at an original issue discount of 98, after firming at the wide end of the 98 to 98.5 talk, a market source said. All of the first-lien term loan debt is getting 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used for general corporate purposes.

Diamond Resorts is a Las Vegas-based hospitality and vacation ownership company.

US LBM trims size, trades

US LBM cut its tack-on first-lien term loan due Aug. 20, 2022 to $40 million from $50 million, according to a market source.

As before, pricing on the tack-on loan is Libor plus 525 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and the debt has an original issue discount of 96.

All of the first-lien term loan debt is still getting 101 soft call protection for one year.

Recommitments were due at 2 p.m. ET on Tuesday and, with final terms in place, the debt made its way into the secondary market in the afternoon with levels seen at 96 bid, 97 offered, a trader added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay ABL borrowings related to acquisitions.

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

Pinnacle Foods dips

Also in trading, Pinnacle Foods’ term loan G fell to 99 bid, 99½ offered from 99¼ bid, 99¾ offered following news that the company is buying Boulder Brands Inc. and will use new debt and cash on hand to fund the transaction, a trader remarked.

The debt commitment is for an up to $900 million incremental term loan led by Bank of America Merrill Lynch.

As a result of the transaction, Pinnacle Foods’ net leverage will increase to about 5 times, which in turn, will cause pricing on its existing term loan to step-up by 25 bps, company officials disclosed in a conference call.

Boulder Brands is being bought for $11.00 per share, in a transaction valued at about $975 million, including around $265 million of net debt.

Closing is expected in the first quarter of 2016, subject to customary conditions.

Pinnacle Foods is a Parsippany, N.J.-based producer, marketer and distributor of branded food products. Boulder Brands is a Boulder, Colo.-based manufacturer of a portfolio of health and wellness brands.

Swissport reworks deal

Moving to the primary market, Swissport Group eliminated plans for a U.S. six-year covenant-lite term loan B that was supposed to be part of a CHF 1,145,000,000-equivalent term financing, according to a market source.

As a result, the euro tranche included in the six-year covenant-lite term loan B was upsized and the company is now planning on issuing euro-denominated senior secured notes, the source said.

The total secured debt financing amount is unchanged at CHF 1,145,000,000, with final tranching and pricing to be determined.

Talk on the euro term loan B as launched is Euribor plus 500 bps to 525 bps with a 1% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months.

The eliminated U.S. term loan B was talked in line with the euro term loan B, but over Libor.

Recommitments for the term loan B are due at 5 p.m. GMT on Dec. 2, the source added.

Swissport being acquired

Proceeds from Swissport’s debt financing and equity will be used to help fund the acquisition of the company by HNA Group Co. Ltd. from PAI Partners SAS for CHF 2.73 billion and to refinance existing debt.

Barclays and J.P. Morgan Securities LLC are leading the debt, with Barclays left lead on the euro term loan B. JPMorgan had been the left lead on the U.S. term loan B.

Closing on the traNSACITON is expected by year-end, subject to customary regulatory and anti-trust approvals.

Swissport is a Switzerland-based provider of ground and cargo handling services to the aviation industry.

TierPoint timing emerges

In more primary happenings, TierPoint revealed timing on the launch of its $340 million in incremental debt, scheduling a bank meeting for Dec. 1, according to a market source. Previously, timing was labeled as late November, early December business.

The debt consists of a $30 million add-on revolver, a $220 million incremental first-lien term loan and a $90 million incremental second-lien term loan, the source said.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, TD Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with equity to fund the $575 million acquisition of Windstream’s data center business.

TierPoint is a St. Louis-based provider of cloud, colocation and managed services designed to help organizations improve business performance and manage risk.

Apco coming soon

Apco Holdings set a bank meeting for Dec. 2 to launch a $210 million credit facility, a market source remarked.

The facility consists of a $20 million five-year revolver, and a $190 million seven-year term loan unofficially whispered at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source continued.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to help fund the buyout of the company by Ontario Teachers’ Pension Plan. Some of Apco’s shareholders, including the company’s senior management and funds managed by Stone Point Capital LLC, will remain shareholders in the business.

Closing is expected in December, subject to customary conditions.

Leverage is around 4.65 times, the source added.

Apco is a Norcross, Ga.-based marketer and administrator of vehicle service contracts sold by franchised and independent auto dealers.

MB Aerospace on deck

MB Aerospace emerged with plans to hold a bank meeting on Dec. 1 to launch a $185 million credit facility, according to a market source.

The facility consists of a $35 million revolver and a $150 million first-lien term loan, the source said.

Price talk on the credit facility is not yet available.

SG Americas Securities LLC is leading the deal that will be used with equity to fund the buyout of the company by Blackstone from Arlington Capital Partners.

Equity will be greater than 50% of total pro forma capitalization, the source added.

Closing is expected this year, subject to customary regulatory approvals.

MB Aerospace is a Motherwell, U.K.-based Tier I engine component manufacturer and repair business.

PLZ readies financing

PLZ Aeroscience scheduled a lender call for Dec. 1 to launch $155 million in incremental debt financing, a market source said.

Antares Capital is leading the debt that will be used with equity from the company’s sponsor, Pritzker Group, to fund the acquisition of Apollo Technologies Inc. and one other strategic acquisition.

PLZ is an Addison, Ill.-based manufacturer of specialty aerosol products. Apollo Technologies is a Smyrna, Ga.-based manufacturer and custom filler of specialty aerosol products.

ProQuest plans loan

ProQuest will hold a bank meeting on Dec. 1 to launch a $275 million first-lien term loan, a market source remarked.

Goldman Sachs Bank USA, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the loan that will be used to help fund the acquisition of Ex Libris Group, a provider of library automation solutions.

ProQuest is an Ann Arbor, Mich.-based information solutions provider.

Access CIG allocates

In other news, Access CIG LLC allocated its $60 million add-on first-lien covenant-light term loan due October 2021, according to a market source.

Pricing on the loan is Libor plus 500 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 six months.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used for acquisition financing.

Access CIG is a Livermore, Calif.-based provider of records and information management services.

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