DTZ, Kellermeyer Bergensons update deals; Media General, Novetta Solutions reveal price talk

By Sara Rosenberg

New York, Oct. 24 – DTZ (DTZ U.S. Borrower LLC and DTZ Aus HoldCo Pty Ltd.) on Friday set the original issue discount on its second-lien term loan at the wide end of revised talk, and Kellermeyer Bergensons Services LLC upsized its first-lien term loan as its second-lien term loan was downsized, and widened spreads and the original issue discounts on both tranches.

Also, Media General Inc. and Novetta Solutions came out with price talk on their deals with launch., and Southeast PowerGen LLC, Express Energy Services LLC and Abaco Energy Technologies LLC surfaced with new deal plans.

DTZ second-lien OID

DTZ finalized on Friday the original issue discount on its $210 million eight-year second-lien term loan (B3/B-) at 98, the high end of revised talk of 98 to 98˝ and wide of initial talk of 99, according to a market source.

The second-lien term loan is priced at Libor plus 825 basis points, after flexing the other day from talk of Libor plus 725 bps to 750 bps, with a 1% Libor floor, and there is call protection of 102 in year one and 101 in year two.

The company’s $1.11 billion credit facility also includes a $150 million revolver (B1/B+), a $470 million seven-year first-lien term loan (B1/B+) and a $280 million delayed-draw term loan (B1/B+).

Pricing on the first-lien term loan and delayed-draw term loans is Libor plus 450 bps, after increasing the other day from talk of Libor plus 400 bps to 425 bps, with a 1% Libor floor and an original issue discount of 98˝, which widened recently from 99. The debt has 101 soft call protection for one year and the delayed-draw term loan will pay the full spread after 30 days, the source said.

DTZ lead banks

UBS AG, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Mizuho Securities USA Inc. and HSBC Securities (USA) Inc. are leading DTZ’s credit facility.

Proceeds will be used to help fund the buyout of DTZ from UGL Ltd. and the buyout of Cassidy Turley by TPG Capital, PAG Asia Capital and Ontario Teachers’ Pension Plan.

DTZ, a Chicago-based property services company, and Cassidy Turley, a commercial real estate services provider, will be combined to create a full-service commercial real estate services company.

Kellermeyer reworks deal

Kellermeyer Bergensons increased its first-lien term loan to $158 million from $148 million, raised pricing to Libor plus 500 bps from talk in the Libor plus 450 bps area and modified the original issue discount to 99 from 99˝, while keeping the 1% Libor floor and 101 soft call protection for six months intact, according to a source.

Additionally, the company trimmed its second-lien term loan to $55 million from $65 million, lifted pricing to Libor plus 850 bps from talk in the Libor plus 775 bps area and revised the offer price to 98 from 99, the source continued. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Recommitments for the company’s $243 million credit facility, which also includes a $30 million revolver, are due by midday on Monday, the source added.

BNP Paribas Securities Corp. and CIT are leading the deal that will be used to help fund the buyout of the company by GI Partners from Kohlberg & Co. LLC.

Closing is expected in the fourth quarter, subject to regulatory approvals and customary conditions.

Kellermeyer is a provider of integrated facilities management services to retail and grocery chains with headquarters in Oceanside, Calif., and Maumee, Ohio.

Media General talk emerges

Also in the primary, Media General held its call on Friday morning, and with the event, price talk on its $1,015,000,000 in new bank debt was disclosed, according to a market source.

The incremental $90 million revolver and $600 million five-year term loan A are talked at Libor plus 250 bps with a 50 bps upfront fee, and the $325 million term loan B due July 2020 is talked at Libor plus 325 bps with a 1% Libor floor, an original issue discount of 98˝ and 101 soft call protection for six months, the source said.

Commitments are due on Nov. 5, the source added.

RBC Capital Markets, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bank and Capital One are leading the deal.

Media General funding merger

Proceeds from Media General’s bank debt and $300 million of senior unsecured notes will be used to support the company’s merger with LIN Media LLC.

Under the agreement, shareholders of LIN Media will receive $25.97 in cash or 1.4714 shares of the new holding company, subject to proration. The maximum cash amount that will be paid to the LIN Media shareholders is $763 million. Media General shareholders will receive one share of the new holding company for each share of Media General that they own upon closing.

Closing is subject to customary closing conditions, including the approval of the Federal Communications Commission, clearance under the Hart-Scott-Rodino Antitrust Improvements Act and certain third-party consents.

Media General is a Richmond, Va.-based local television broadcasting and digital media company. LIN Media is an Austin, Texas-based local multimedia company.

Novetta reveals guidance

Novetta Solutions came out with talk of Libor plus 475 bps to 500 bps with a 1% Libor floor and an original issue discount of 99 on its $140 million first-lien term loan that launched with a bank meeting during the session, a source remarked.

The company’s $165 million credit facility also provides for a $25 million revolver.

Commitments are due on Nov. 7, the source added.

Societe Generale is leading the deal that will be used to refinance existing debt and to fund two tuck-in acquisitions.

Senior and total leverage is about 3.75 times.

Novetta Solutions is a McLean, Va.-based advanced analytics technology company.

Southeast PowerGen plans deal

Southeast PowerGen emerged with a new $550.5 million senior secured credit facility that will launch with a bank meeting at 10 a.m. ET in New York on Tuesday, according to a market source.

The facility consists of a $70.5 million revolver and a $480 million term loan B, the source said.

Morgan Stanley Senior Funding Inc., MUFG Union Bank and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition by the Carlyle Group of 75.05% of the outstanding interests and operational control of Southeast PowerGen from ArcLight Capital Partners and GIC.

Southeast PowerGen is a portfolio of six natural gas-fired power plants in Georgia.

Express Energy on deck

Express Energy Services scheduled a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch a $280 million credit facility, a market source said.

The facility consists of a $60 million five-year ABL revolver, and a $220 million seven-year term loan B with a 1% Libor floor, the source continued.

UBS AG and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by Apollo Global Management LLC.

Express Energy is a Houston-based oilfield services company.

Abaco readies launch

Abaco Energy is set to hold a bank meeting at 2 p.m. ET in New York on Monday to launch a $200 million credit facility, according to a market source.

The facility consists of a $25 million revolver and a $175 million seven-year term loan B, the source said.

Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are leading the deal that will be used to help fund the acquisition of Basin Tools Inc., a Houston-based manufacturer, renter and seller of drilling motors and power sections for oil and gas drilling operations.

Abaco Energy, owned by Riverstone Holdings LLC, is a Houston-based oil field services company.

Toys ‘R’ Us closes

In other news, Toys ‘R’ Us – Delaware Inc., a wholly owned subsidiary of Toys ‘R’ Us Inc., completed its $1,305,000,000 billion of secured loans, according to an 8-K filed with the Securities and Exchange Commission.

The debt consists of $1.025 billion 5˝-year term loan B-4 (B2/B/CCC+) priced at Libor plus 875 bps with a 1% Libor floor and sold at an original issue discount of 97, and a $280 million first-in, last-out asset-based loan (Ba3/B+/B) priced at Libor plus 725 bps with a 1% Libor floor and issued at 97.

The Wayne, N.J.-based toy retailer’s term loan B-4 is non-callable for 18 months, then at 102 for a year and 101 for the following year, and the first-in, last-out loan has 101 call protection for one year.

During syndication, pricing on the term loan B-4 was increased from talk of Libor plus 800 bps to 825 bps, pricing on the asset-based loan was lifted from talk of Libor plus 550 bps to 575 bps as the tranche was downsized from $350 million, and the discount on both tranches widened from 99.

Goldman Sachs Bank USA and Bank of America Merrill Lynch led the deal that was used to refinance existing debt, with Goldman left on the term B-4 and Bank of America left on the asset-based loan.

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