Creganna-Tactx, Navex break; B/E Aerospace, Parq, Tecomet, Camping World, Abaco update deals

By Sara Rosenberg

New York, Nov. 20 – Creganna-Tactx Medical’s credit facility emerged in the secondary market during Thursday’s session with the first-lien term loan quoted above its issue price, and Navex Global started trading as well.

Switching to the primary, B/E Aerospace Inc. and Parq Resort & Casino (Parq Ltd. Holdings Partnership) tightened the spreads and original issue discounts on their term loans, and Tecomet Inc. sweetened spreads, issue prices and call protection on its first- and second-lien term loans.

Also, Camping World Inc. firmed the original issue discount on its add-on term loan at the tight end of talk, and Abaco Energy Technologies LLC reduced the size of its term loan.

Furthermore, Compuware Corp., Varsity Brands and Catalent Pharma Solutions Inc. launched new loans, and First Advantage and Distribution International Inc. surfaced with deal plans.

Creganna frees up

Creganna-Tactx’s credit facility broke for trading on Thursday with the $185 million first-lien term loan (B1/B) quoted at 99 7/8 bid, par ¼ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 425 basis points with a 1% Libor floor and it was sold at an original issue discount of 99¼. There is 101 soft call protection for six months.

The company’s $300 million credit facility also includes a $25 million revolver (B1/B) and a $90 million second-lien term loan (Caa1/CCC+).

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was issued at 99. This tranche has call protection of 102 in year one and 101 in year two.

Recently, pricing on the first-lien term loan was lowered from talk of Libor plus 450 bps to 475 bps and the discount was revised from 99, and pricing on the second-lien term loan was cut from Libor plus 825 bps to 850 bps while the discount was tightened from 98½.

Creganna funding acquisition

Proceeds from Creganna-Tactx’s credit facility will be used to finance the purchase of Precision Wire Components LLC from the Riverside Co. The combined company will be known as Creganna Medical.

RBC Capital Markets, Morgan Stanley Senior Funding Inc., Bank of Ireland and Societe Generale are leading the deal.

First-lien leverage is 3.4 times, total leverage is 5.1 times and equity is more than 40% of the capitalization.

Closing is expected in early December, subject to regulatory approvals and other customary conditions.

Creganna-Tactx is a Galway, Ireland-based provider of medical device outsourcing services. Precision Wire is a Tualatin, Ore.-based producer of medical wires.

Navex hits secondary

Navex Global’s credit facility also began trading, with the $200 million seven-year first-lien covenant-light term loan (B2/B-) quoted at 99 1/8 bid, 99 5/8 offered, according to a trader.

The first-lien term loan is priced at Libor plus 475 bps with a 1% Libor floor and was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The company’s $310 million credit facility also includes a $20 million five-year revolver (B2/B-), and a $90 million eight-year second-lien covenant-light term loan (Caa2/CCC) priced at Libor plus 875 bps with a 1% Libor floor and issued at 98. The second-line loan has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan firmed at the wide end of the Libor plus 450 bps to 475 bps talk and the soft call was extended from six months, and pricing on the second-lien term loan was lifted from Libor plus 825 bps and the discount widened from 98½.

GE Capital Markets and Golub Capital are leading the deal that will be used with equity to fund the buyout of the company by Vista Equity Partners from the Riverside Co.

Navex is a Lake Oswego, Ore.-based provider of ethics and compliance software, content and services.

B/E Aerospace flexes

Over in the primary, B/E Aerospace trimmed pricing on its $2.2 billion seven-year term loan B to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps and moved the original issue discount to 99½ from 99, according to a market source. The debt has a 0.75% Libor floor and 101 soft call protection for one year.

The company’s $2.8 billion credit facility (Ba2/BB+) also includes a $600 million five-year revolver.

Recommitments were due at 5 p.m. ET on Thursday, the source said.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt.

B/E Aerospace is a Wellington, Fla.-based manufacturer of aircraft cabin interior products and a provider of aerospace fasteners, consumables and logistics services.

Parq reworks pricing

Parq Resort & Casino reduced pricing on its $175 million in six-year senior secured term loan debt (Ba3/B+) to Libor plus 675 bps from talk of Libor plus 700 bps to 750 bps and tightened the original issue discount to 98½ from 98, a market source remarked.

The debt, which consists of a $130 million funded term loan and a $45 million delayed-draw term loan that are being sold as a strip, still has a 1% Libor floor and are non-callable for 2½ years, then at 101 for a year, and the delayed-draw tranche still has a ticking fee of half the spread.

Commitments were due at 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC and Dundee Securities are leading the deal that will be used with $200 million of notes to fund the construction of the Parq resort and casino in Vancouver.

Tecomet revisions emerge

Tecomet raised pricing on its $520 million seven-year first-lien covenant-light term loan (B2/B) to Libor plus 475 bps from Libor plus 450 bps, changed the original issue discount to 97 from 99 and extended the 101 soft call protection to one year from six months, while keeping the 1% Libor floor unchanged, a market source said.

Additionally, pricing on the $190 million eight-year second-lien covenant-light term loan (Caa2/CCC+) was lifted to Libor plus 850 bps from Libor plus 825 bps, the discount was moved to 94 from 98½, and the call protection was adjusted to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source remarked. This tranche still has a 1% Libor floor.

The company’s $770 million credit facility also includes a $60 million five-year revolver (B2/B).

Allocations are expected on Monday, the source added.

Tecomet lead banks

Credit Suisse Securities (USA) LLC, GE Capital Markets and Goldman Sachs Bank USA are leading Tecomet’s credit facility.

Proceeds, along with equity from Genstar Capital Partners, Tecomet’s current sponsor, will be used to help fund the acquisition of Symmetry Medical Inc.’s OEM Solutions business for $450 million in cash, or $7.50 per share after fees and elimination of outstanding debt.

Closing is expected by the end of the year, subject to receipt of regulatory approvals, registration and listing of Symmetry Surgical’s common stock and shareholder approval.

Tecomet is a Wilmington, Mass.-based contract manufacturing, engineering and metal fabrication technology company.

Camping World sets OID

Camping World firmed the original issue discount on its fungible $117 million add-on term loan at 99½, the low end of the 99 to 99½ talk, a market source said.

The loan is priced at Libor plus 475 bps with a 1% Libor floor and has 101 soft call protection for six months.

Goldman Sachs Bank USA is leading the deal that will be used to fund RV dealerships.

Camping World is a supplier of RV parts, supplies and accessories.

Abaco downsizes

Abaco Energy cut the size of its six-year term loan B (B3/B) to $170 million from $175 million and updated call protection to non-callable for one year, then a 101 hard call for one year, from 101 soft call protection for one year, according to a market source.

Pricing on the B loan is Libor plus 700 bps with a 1% Libor floor and it was sold at an original issue discount of 94.

Earlier in syndication, pricing on the term loan B was increased from Libor plus 575 bps, the discount was revised from 99 and the maturity was shortened from seven years.

The company’s $195 million credit facility also includes a $25 million revolver.

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.

Abaco Energy is a Houston-based oil field services company. Basin Tools is a Houston-based manufacturer, renter and seller of drilling motors and power sections for oil and gas drilling operations.

Compuware releases guidance

Also in the primary, Compuware, a Detroit-based technology performance company, held its bank meeting on Thursday, and with the event, price talk on its term loans was announced, according to a market source.

The $300 million five-year first-lien term loan B-1 (B2) is talked at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, the $950 million seven-year first-lien term loan B-2 (B2) is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor and a discount of 98½, the $105 million one-year asset sale bridge loan (B1) is talked at Libor plus 450 bps with a 1% Libor floor and a discount of 99½, and the $550 million eight-year second-lien term loan (Caa2) is talked at Libor plus 800 bps with a 1% Libor floor and a discount of 98, the source said.

The company’s $2,005,000,000 senior secured credit facility also includes a $100 million revolver (B2).

Jefferies Finance LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used with up to $675 million in equity and cash on hand to fund the buyout of the company by Thoma Bravo LLC for about $10.92 per share in a transaction valued at around $2.5 billion.

Closing is expected by early 2015, subject to shareholder and regulatory approvals.

Varsity discloses talk

Varsity Brands came out with talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $755 million term loan B that launched with a morning bank meeting, according to a market source.

Goldman Sachs Bank USA, Barclays and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company by Charlesbank Capital Partners. Varsity Brands’ senior leadership will invest in the company alongside Charlesbank.

The company previously said in a news release that Ares Capital Corp. and Crescent Mezzanine would be providing some debt financing as well.

Closing is expected in December, subject to customary conditions.

Varsity Brands is a Memphis, Tenn.-based portfolio of brands that promote student participation while celebrating academic and athletic achievement.

Catalent seeks add-on

Catalent Pharma Solutions approached lenders with a fungible $180 million equivalent add-on U.S. and euro term loan B due May 19, 2021 that is talked at Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection until May 19, 2015, according to a market source.

The spread, floor and call protection on the add-on match the existing term loan.

Commitments are due by noon ET on Monday, the source said.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to repay existing revolver borrowings and senior unsecured term loan debt.

Catalent is a Somerset, N.J.-based provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

First Advantage on deck

First Advantage set a conference call for Monday to launch $655 million in term loans, according to a market source.

The debt consists of a $485 million seven-year covenant-light first-lien term loan and a $170 million eight-year covenant-light second-lien term loan, the source said.

Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt and fund a dividend.

First Advantage is a St. Petersburg, Fla.-based provider of talent acquisition services, including background screening, recruiting, skills assessment and skills-related tax services.

Distribution International loan

Distribution International scheduled a bank meeting for Monday to launch a $215.5 million seven-year covenant-light term loan B (B3), market sources remarked.

Bank of America Merrill Lynch, RBC Capital Markets and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by Advent International Inc. from Audax Private Equity.

Distribution International is a Houston-based distributor of insulation, related specialty fabricated products, and safety supplies.

ARC Document closes

In other news, ARC Document Solutions Inc. closed on its $205 million five-year senior secured credit facility that is priced at Libor plus 250 bps, a new release said.

The facility consists of a $30 million revolver and a $175 million term loan A.

Wells Fargo Securities LLC, GE Capital Markets and J.P. Morgan Securities LLC are leading the deal that was used to refinance an existing credit facility.

ARC Document is a Walnut Creek, Calif.-based provider of technology and document-related services.

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