Nielsen Finance, Dunn Paper loans break; revisions announced on nine deals in primary market

By Sara Rosenberg

New York, Sept. 28 – Nielsen Finance LLC’s term loan B-3 made its way into the secondary market on Wednesday with levels quoted above its original issue discount, and Dunn Paper Inc.’s credit facility freed up for trading as well.

Over in the primary market, inVentiv Health Inc. increased the size of its term loan B, lowered the spread and modified the issue price, Reynolds Group Holdings Inc. upsized its incremental first-lien term loan, and Press Ganey Inc. shifted funds between its first- and second-lien term loans and tightened pricing and original issue discounts on the tranches.

Also, American Bath Group LLC upsized its first-lien term loan while raising pricing, widened the spread and issue price on its second-lien term loan and sweetened call premiums on both tranches, and Henry Co. LLC lowered pricing on its term loan B, revised the original issue discount and extended the call protection.

In addition, Multi Packaging Solutions International Ltd., SRS Distribution Inc. and US LBM Holdings LLC tightened the original issue discounts on their incremental term loans, and Affinity Gaming widened the issue price on its second-lien term loan.

Furthermore, PAE Holding Corp. came out with price talk on its term loans with launch, Hargray Communications Group, Inc. approached lenders with an incremental first-lien term loan and repricing proposal, Emerald Expositions Holding Inc. and Universal Fiber Systems LLC emerged with add-on term loans, and Hudson’s Bay Co. launched a repricing of its term loan B.

Platform Specialty Products Corp. (MacDermid Inc.), Talen Energy Corp., Tweddle Group, Alkermes Inc. and PetSmart Inc. joined this week’s calendar.

Nielsen frees up

Nielsen Finance’s $1.9 billion seven-year covenant-light term loan B-3 (Ba1) began trading on Wednesday, with levels quoted at par 3/8 bid, par 7/8 offered, according to a trader.

Pricing on the term loan B-3 is Libor plus 250 basis points with no Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the loan was upsized from a revised amount of up to $1.6 billion and an initial size of $500 million, the spread firmed at the low end of the Libor plus 250 bps to 275 bps talk and the discount was changed from 99.5.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance the company’s existing term loan B-1 and, because of the upsizings, to refinance its dollar-denominated term loan B-2 and repay revolver borrowings.

Closing is expected next week.

Nielsen Finance is a subsidiary of Nielsen Co. BV, a New York and Netherlands-based provider of information and insights into what consumers watch and buy.

Dunn Paper hits secondary

Dunn Paper’s credit facility broke as well, with the $230 million first-lien term loan B quoted at par ¼ bid, 101¼ offered and the $65 million second-lien term loan quoted at 98½ bid, according to a trader.

The first-lien term loan is priced at Libor plus 475 bps with a step-down to Libor plus 450 bps based on leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99 and includes 101 soft call protection for six months.

Pricing on the second-lien term loan is Libor plus 875 bps with a 1% Libor floor, and it was issued at a discount of 98. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $228 million and the step-down was added, the second-lien term loan was upsized from $57 million, and the MFN sunset was eliminated.

Dunn getting revolver

In addition to the first- and second-lien term loans, Dunn’s $325 million credit facility provides for a $30 million revolver.

BNP Paribas Securities Corp. and Bank of Ireland are leading the deal that will be used to back the recently completed buyout of the company by Arbor Investments from Wingate Partners.

Funds from the recent term loan upsizings are being used to reduce the equity used for the buyout.

Dunn Paper is a Port Huron, Mich.-based manufacturer of lightweight paper and tissue products.

OWIC announced

Also in the secondary market, a $306 million loan Offers Wanted In Competition emerged, with offers due by noon ET on Thursday, a trader remarked.

Some of the names in the portfolio are Acosta Holdco Inc., Ascena Retails Group Inc., Cotiviti, Hostess Brands LLC, Neiman Marcus Group Ltd. LLC, Revlon Consumer Products Corp., SeaWorld Parks & Entertainment Inc., UFC Holding LLC and Western Digital.

There are about 37 issuers in the OWIC, the trader added.

inVentiv changes emerge

Moving to the primary market, inVentiv Health lifted its seven-year senior secured term loan B to $1.73 billion from $1.68 billion, trimmed pricing to Libor plus 375 bps from talk of Libor plus 425 bps to 450 bps, moved the original issue discount to 99.5 from 99 and eliminated the MFN sunset, a market source said.

The term loan B still has a 1% Libor floor, 101 soft call protection for six months and a ticking fee of half the spread from day 31 to 60 and the full spread thereafter.

Recommitments were due at 5 p.m. ET on Wednesday, the source continued.

The company’s now $1.98 billion credit facility also includes a $250 million asset-based revolver.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Barclays and Jefferies Finance LLC are leading the deal.

inVentiv downsizes notes

In connection with the term loan B upsizing, inVentiv reduced its bond offering size to $670 million from $720 million, the source added.

Proceeds from the new debt will be used to help fund a material equity investment in the company by Advent International, which values inVentiv at $3.8 billion on a cash-free, debt-free basis subject to customary adjustments.

Advent is joining Thomas H. Lee Partners as an equal equity owner of the company.

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

inVentiv is a Burlington, Mass.-based provider of clinical, consulting and commercial services to the health care industry.

Reynolds ups size

Reynolds Group raised its fungible incremental first-lien term loan due February 2023 to $1.35 billion from $500 million, according to a market source.

Pricing on the incremental term loan is still Libor plus 325 bps, with a step-down to Libor plus 300 bps subject to a B2 corporate rating, and a 1% Libor floor, which matches existing term loan pricing, and the debt still has an original issue discount of 99.75 and 101 soft call protection through February 2017.

Recommitments were due at 5 p.m. ET on Wednesday, with allocations expected on Thursday, the source said.

Credit Suisse and HSBC Securities (USA) Inc. are leading the deal that will be used to repay 5 5/8% senior notes due 2016 and 9 7/8% senior notes due 2019 and, because of the upsizing, up to $500 million 8¼% senior notes due 2021 and up to $350 million 6 7/8% senior secured notes due 2021.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

Press Ganey restructures

Press Ganey lifted its seven-year covenant-light first-lien term loan to $760 million from $740 million, cut pricing to Libor plus 325 bps from talk of Libor plus 375 bps to 400 bps and moved the original issue discount to 99.5 from 99, while leaving the 1% Libor floor and 101 soft call protection for six months unchanged, according to a market source.

Additionally, the company reduced its eight-year covenant-light second-lien term loan to $268 million from $288 million, lowered pricing to Libor plus 725 bps from talk of Libor plus 775 bps to 800 bps, and modified the original issue discount to 99 from 98, the source said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $1,098,000,000 senior secured credit facility also includes a $70 million revolver (B2/B).

Recommitments are due at noon ET on Thursday, the source added.

Press Ganey funding buyout

Proceeds from Press Ganey’s credit facility, up to $1,368,000,000 of equity and about $66.3 million of cash on hand will be used to finance its acquisition by EQT Equity for $40.50 of cash per share, resulting in an enterprise value of about $2.35 billion.

Credit Suisse, Citigroup and Bank of America Merrill Lynch are leading the deal, with Credit Suisse the left lead on the first-lien loan and Citigroup the left lead on the second-lien loan.

Closing is expected in the fourth quarter, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, shareholder approval and other customary conditions.

Press Ganey is a Wakefield, Mass.-based provider of patient experience measurement, performance analytics and strategic advisory solutions for health-care organizations.

American Bath reworked

American Bath Group raised its seven-year covenant-light first-lien term loan to $325 million from $320 million, lifted pricing to Libor plus 575 bps from Libor plus 500 bps and extended the 101 soft call protection to one year from six months, while leaving the 1% Libor floor and original issue discount of 99 intact, a source said.

As for the $95 million eight-year covenant-light second-lien term loan, the spread was increased to Libor plus 975 bps from Libor plus 900 bps, the original issue discount was changed to 96 from 98, and the call protection was sweetened 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 1% Libor floor was unchanged.

Other revisions included eliminating the MFN sunset, reducing the incremental “freebie” and tightening the ratio prongs, and tightening restricted payments, the source continued.

The company’s now $470 million credit facility also includes a $50 million revolver.

American Bath leads

Credit Suisse and RBC Capital Markets are leading American Bath’s credit facility, for which recommitments are due at noon ET on Thursday.

Proceeds will be used to help fund the buyout of the company by Lone Star Funds, and the upsizing to the first-lien term loan will compensate for the wider original issue discount on the second-lien term loan, the source added.

American Bath Group is a Savannah, Tenn.-based designer and manufacturer of fiberglass reinforced plastic, sheet molded compound and acrylic bathtubs and showers.

Henry adjusts terms

Henry reduced pricing on its $320 million seven-year covenant-light term loan B to Libor plus 450 bps from talk of Libor plus 475 bps to 500 bps, revised the original issue discount to 99.5 from 99, extended the 101 soft call protection to one year from six months and removed the MFN sunset, a market source remarked.

The term loan still has a 1% Libor floor.

The company’s $360 million credit facility (B2/B) also includes a $40 million five-year revolver.

Recommitments are due at noon ET on Thursday, the source added.

RBC, Credit Suisse, Antares Capital and Nomura are leading the deal that will be used to help fund the buyout of the company by American Securities.

Henry is an El Segundo, Calif.-based developer and manufacturer of roofing products and other building envelope applications for the residential and commercial construction markets.

Multi Packaging revised

Multi Packaging Solutions changed the original issue discount on its $220 million non-fungible incremental covenant-light term loan D (B1/BB-) to 99.5 from 99 and left pricing at Libor plus 325 bps with a 1% Libor floor, according to a market source.

The term loan still has 101 soft call protection for six months.

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

Barclays, Bank of America Merrill Lynch, Citigroup and Credit Suisse are leading the loan that will be used to redeem the company’s $200 million 8½% senior notes due 2021 on Oct. 17.

Multi Packaging repricing

Along with the new term loan D, Multi Packaging is repricing its €132 million covenant-light term loan to Euribor plus 325 bps from Euribor plus 375 bps and its £88 million covenant-light term loan to Libor plus 400 bps from Libor plus 450 bps.

As before, the repriced term loans have a 1% floor, a par issue price and 101 soft call protection for six months.

The company is not repricing its existing U.S. term loan B.

Pro forma leverage is 3.7 times total and secured.

Multi Packaging Solutions is a New York-based provider of packaging solutions to the health-care, consumer and multi-media markets.

SRS modifies issue price

SRS Distribution tightened the original issue discount on its $100 million incremental covenant-light first-lien term loan (B) due Aug. 25, 2022 to 99.75 from 99.5, a source remarked.

As before, pricing on the incremental loan is Libor plus 425 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and the debt has 101 soft call protection until June 21, 2017.

Commitments are due at noon ET on Thursday, moved up from the close of business on Friday, the source added.

Barclays and UBS Investment Bank are leading the deal that will be used to prepay an existing ABL draw and to fund general corporate purposes, including potential acquisitions.

First-lien leverage is 4 times, total leverage is 5 times and net total leverage us 4.4 times.

SRS Distribution is a McKinney, Texas-based roofing distributor.

US LBM tweaks OID

US LBM modified the original issue discount talk on its fungible $90 million incremental first-lien term loan (B3/B+) due Aug. 8, 2022 to 99.75 from 99.5, a market source said.

As before, pricing on the incremental term loan is Libor plus 525 bps with a 1% Libor floor, in line with existing term loan pricing, and the debt has 101 soft call protection for six months.

Commitments are due at noon ET on Thursday, moved up from 3 p.m. ET on Thursday, the source added.

Credit Suisse is leading the deal that will be used to repay ABL borrowings.

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

Affinity updates deal

Affinity Gaming revised the original issue discount on its $95 million eight-year second-lien term loan (B3/CCC+) to 97 from 98.5, according to a market source, who said allocations are expected later this week.

The second-lien term loan is still priced at Libor plus 825 bps with a 1% Libor floor and has call protection of 102 in year one and 101 in year two.

In addition to the second-lien term loan, the company is getting a $30 million incremental first-lien term loan due July 1, 2023 (B1/B+) priced at Libor plus 400 bps with a 1% Libor floor, which matches existing first-lien term loan pricing, and issued at par, after tightening last week from original issue discount talk of 99.5.

All of the first-lien term loan debt is getting 101 soft call protection for six months.

Proceeds from the new debt and equity will be used to fund the buyout of the company by Z Capital Partners LLC, which currently owns about 41% of Affinity’s outstanding shares, for $17.35 per share in cash. The transaction values Affinity at about $580 million.

Affinity amending

Along with this transaction, Affinity Gaming is amending its existing $375 million first-lien term loan (B1/B+) due July 1, 2023, and that request underwent changes last week, including increasing the consent fee to 20 bps at the closing of the amendment and 20 bps at the completion of the transaction, from 10 bps at amendment closing and 10 bps at transaction closing.

Furthermore, the unlimited restricted payments incurrence ratio is increasing to 3.25 times from 3 times, instead of increasing to 3.5 times as originally proposed, and the unlimited investments incurrence ratio test in increasing to 4 times from 3.5 times, instead of increasing to 4.5 times.

Citizens Bank, Credit Suisse and Fifth Third Bank are leading the new term loans, and Credit Suisse is leading the amendment.

Closing is expected in the first quarter of 2017, subject to shareholder approval, regulatory approvals and other customary conditions.

Affinity Gaming is a Las Vegas-based diversified casino gaming company.

PAE discloses guidance

Also in the primary market, PAE Holding had its bank meeting on Wednesday, and with the event, talk on its $550 million six-year covenant-light first-lien term loan (B2/B) and $175 million seven-year covenant-light second-lien term loan (Caa2/CCC+) was announced, according to a market source.

Talk on the first-lien term loan is Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 900 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at noon ET on Oct. 7.

Bank of America Merrill Lynch, Citizens Bank, SunTrust Robinson Humphrey Inc. and Morgan Stanley are leading the $725 million of term loans that will refinance existing debt and fund a dividend.

PAE is an Arlington, Va.-based provider of support services for the U.S. government, its allied partners and international organizations.

Hargray holds call

Hargray Communications surfaced in the morning with plans to hold a lender call at 2 p.m. ET to launch a $50 million incremental first-lien term loan due June 26, 2019 and a repricing of its existing $347 million first-lien term loan due June 26, 2019, according to a market source.

The term loan debt (B2/B+) is talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99.5 on the incremental piece, a par issue price on the existing piece and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Oct. 6.

Credit Suisse and TD Securities (USA) LLC are leading the deal.

The incremental loan will be used to fund a shareholder distribution, and the repricing will take the existing term loan down from Libor plus 425 bps with a 1% Libor floor, the source added.

Hargray is a Hilton Head Island, S.C.-based provider of triple-play data, video and voice services.

Emerald seeks add-on

Emerald Expositions launched with a lender call a $200 million add-on term loan (B2/BB-) talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99.27 and 101 soft call protection for six months, a market source remarked.

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

Bank of America Merrill Lynch is leading the deal that will be used to refinance notes.

Emerald is a San Juan Capistrano, Calif.-based operator of large business-to-business tradeshows.

Universal Fiber launches

Universal Fiber Systems held a lender call to launch a $44 million incremental first-lien term loan (B+) talked at Libor plus 550 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The spread and floor on the incremental loan matches existing first-lien term loan pricing.

BNP Paribas is leading the deal that will be used to fund a dividend.

In connection with this transaction, the company is asking to amend its existing credit agreement to allow for the dividend and reset covenants, the source said.

Lenders are offered a 25 bps consent fee.

Commitments/consents are due on Oct. 13, the source added.

Universal Fiber Systems is a Bristol, Va.-based manufacturer of high-performance, specialty synthetic fibers for segments of the commercial carpet, transportation carpet and specialty textile industries.

Hudson’s Bay repricing

Hudson’s Bay held a lender call in the morning, launching a $500 million covenant-light term loan B at talk of Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Proceeds will reprice an existing term loan B from Libor plus 375 bps with a 1% Libor floor.

Commitments are due at noon ET on Oct. 5, the source added.

Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal.

Hudson’s Bay is an Ontario-based operator of department stores.

Platform joins calendar

Platform Specialty Products set a lender call for 9:30 a.m. ET on Thursday to launch a $1,962,000,000-equivalent dollar and euro seven-year term loan B, according to a market source.

Barclays, Credit Suisse and Nomura are leading the deal that will be used with balance sheet cash to refinance the company’s existing senior secured U.S. term loan B-1, U.S. term loan B-2 and euro term loan C-1.

Platform is a West Palm Beach, Fla.-based producer of high-technology specialty chemicals and a provider of technical services.

Talen sets launch

Talen Energy scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch a $600 million senior secured term loan B, according to a market source.

Goldman Sachs, RBC, Barclays, Credit Suisse, Deutsche Bank Securities Inc., Morgan Stanley and MUFG are leading the deal that will be used to help fund the acquisition of the company by Riverstone Holdings LLC for $14.00 per share in cash.

The roughly $1.8 billion consideration for the common stock in the transaction is expected to be funded by the new term loan, a conversion of Riverstone’s existing ownership of about 35% of Talen Energy common stock into shares of the surviving corporation and cash on hand.

Closing is expected by the end of the year, subject to stockholder approval, regulatory approvals and other customary conditions.

Talen Energy is an Allentown, Pa.-based competitive energy and power generation company.

Tweddle on deck

Tweddle Group set a lender call for 2 p.m. ET on Thursday to launch a $225 million term loan B (B2), a market source remarked.

Goldman Sachs is leading the deal that will be used to refinance existing debt and fund a dividend.

Tweddle is a Clinton Township, Mich.-based author, manager and deliverer of written content about automotive vehicles, delivered via both print (manuals) and electronic media.

Alkermes readies deal

Alkermes will hold a lender call at 11 a.m. ET on Thursday to launch an extension of its $288 million senior secured term loan B-1 due 2019, according to a market source.

Morgan Stanley is leading the transaction.

Alkermes is a Dublin-based biopharmaceutical company.

PetSmart plans call

PetSmart scheduled a call for 11 a.m. ET on Thursday to launch a new loan deal to existing and prospective lenders, a market source said.

Citigroup is the left lead on the transaction.

PetSmart is a Phoenix-based specialty pet retailer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.