Top Right, Mitel Networks break; Air Medical, Concordia Healthcare, Tekni-Plex revise deals

By Sara Rosenberg

New York, April 13 – Top Right Group’s credit facility freed up for trading during Monday’s market hours, with the U.S. term loan B quoted above its original issue discount, and Mitel Networks Corp. hit the secondary as well.

Moving to the primary market, Air Medical Group Holdings Inc. upsized its term loan B, lowered pricing and revised guidance on the offer price, Concordia Healthcare Corp. reduced the size of its term loan B, tightened the spread and original issue discount and sweetened the call protection, and Tekni-Plex Inc. modified its term loan sizes while cutting pricing.

In addition, Trinseo Materials Operating S.C.A. released details on its credit facility with launch, US LBM disclosed original issue discount talk on its tack-on term loan, and 21st Century Oncology joined this week’s calendar.

Top Right tops OID

Top Right Group’s credit facility began trading on Monday, with the $323 million seven-year covenant-light term loan B quoted at 99¼ bid, par offered, according to a market source

Pricing on the U.S. term loan, as well as on a €300 million seven-year covenant-light term loan B, is Libor/Euribor plus 500 basis points with a 1% floor, and the debt was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the U.S. term loan size was tweaked from $325 million, the euro term loan size was changed from €305 million, spreads firmed at the high end of the Libor/Euribor plus 475 bps to 500 bps talk, the call protection was extended from six months, the MFN was set for life, modified from 18 months, and the borrowers were changed so that each facility will be lent to different borrower groups instead of there being co-borrowers between tranches.

Top Right getting revolver

In addition to the term loan B debt, Top Right’s new credit facility (B2) includes a £75 million six-year revolver.

Deutsche Bank Securities Inc., HSBC Securities, Lloyds Securities LLC and BNP Paribas Securities Corp. are leading the deal that will be used to refinance all existing senior and mezzanine facilities and for general corporate purposes.

Closing is expected on April 27.

Top Right is a London-based B2B media company, operating market-leading events and providing information services and subscription content.

Mitel frees up

Mitel Networks’ credit facility also broke, with the $660 million seven-year first-lien term loan B seen at 99¾ bid, par 1/8 offered, a trader said.

Pricing on the term loan B is Libor plus 400 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.

During syndication, the B loan was upsized from $650 million and the spread was reduced from talk of Libor plus 425 bps to 450 bps.

The company’s $710 million senior secured credit facility (Ba3/B+) also includes a $50 million five-year revolver.

Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the deal.

Mitel buying Mavenir

Proceeds from Mitel’s credit facility will be used with cash on hand to fund the acquisition of Mavenir Systems Inc. in a cash and stock deal valued at about $560 million and to refinance existing credit facilities at both companies.

Specifically, Mavenir stockholders are entitled to elect to receive either all-cash or all-stock consideration for each share of Mavenir common stock, subject to proration, in either case with a value of $11.08 plus 0.675 of a Mitel common share, or $17.94 based on the closing price of a Mitel common share on Feb. 27.

Closing is expected in the second quarter, subject to the tender of a majority of Mavenir’s common stock, regulatory and stock exchange approvals and other customary conditions.

Mitel is a Kanata, Ont.-based provider of cloud- and premises-based unified communications software solutions. Mavenir is a Richardson, Texas-based provider of software-based networking solutions for mobile carriers.

Air Medical revised

Over in the primary, Air Medical raised the size of its seven-year term loan B to $1.01 billion from $920 million, reduced pricing to Libor plus 350 bps from Libor plus 400 bps, added a step-down to Libor plus 325 bps at 4.25 times first-lien leverage and changed original issue discount talk to 99½ to 99¾ from 99 to 99½, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Commitments are due at noon ET on Tuesday.

The company’s now $1,185,000,000 senior credit facility also includes a $175 million ABL facility.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC, KKR Capital Markets LLC, Nomura Securities International Inc. and MCS Capital Markets LLC are leading the term loan B, and Bank of America Merrill Lynch, Morgan Stanley, Jefferies, KKR, Nomura and MCS are leading the ABL facility.

Air Medical being acquired

Proceeds from Air Medical’s credit facility will be used to help fund its buyout by KKR from Bain Capital and Brockway Moran & Partners.

As a result of the term loan upsizing, the junior capital raise for the transaction is being reduced, the source added.

Closing is expected in the second quarter, subject to customary regulatory approvals.

Air Medical is a Lewisville, Texas-based provider of air ambulance services.

Concordia reworks deal

Concordia Healthcare trimmed its term loan B to $575 million from $650 million, lowered pricing to Libor plus 375 bps from talk of Libor plus 400 bps to 425 bps, moved the original issue discount to 99½ from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the term loan has a 1% Libor floor.

The company’s now $675 million credit facility also includes a $100 million revolver.

RBC Capital Markets LLC, Morgan Stanley Senior Funding Inc., GE Capital Markets and TD Securities (USA) LLC are leading the deal that will be used to help fund the acquisition of Covis Pharma Holdings Sarl for $1.2 billion in cash and to refinance existing debt.

Concordia upsizes bonds

With the term loan B downsizing, Concordia lifted its bond offering to $735 million from $610 million, another source added.

Along with the loan and bonds, the company will use equity for the Covis acquisition.

Closing is expected in the second quarter, subject to customary conditions including receipt of required regulatory approvals.

Concordia is an Oakville, Ont.-based healthcare company focused on legacy pharmaceutical products, orphan drugs and medical devices for the diabetic population. Covis is a Zug, Switzerland-based specialty pharmaceutical company providing therapeutic solutions to patients.

Tekni-Plex changes emerge

Tekni-Plex set its U.S. dollar seven-year first-lien covenant-light term loan at $400 million and euro seven-year first-lien covenant-light term loan at €150 million, compared to initial talk of a total size of $535 million with an up to €200 million carve-out, reduced the spread to Libor/Euribor plus 350 bps from Libor/Euribor plus 400 bps and firmed the original issue discount at 99½, versus talk of 99 to 99½, a market source remarked.

Additionally, the eight-year second-lien covenant-light term loan was lifted to $160 million from $155 million, pricing was lowered to Libor plus 775 bps from Libor plus 800 bps and the discount was changed to 99¼ from 99, the source continued.

All of the term loans still have a 1% floor, the first-lien term loan still has 101 soft call protection for six months, and the second-lien term loan still has call protection of 102 in year one and 101 in year two.

Tekni-Plex lead banks

Credit Suisse Securities (USA) LLC, BMO Capital Markets, Barclays and Goldman Sachs Bank USA are leading Tekni-Plex’s term loans.

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

Proceeds will be used to refinance existing debt and fund a dividend.

Tekni-Plex is a King of Prussia, Pa.-based provider of specialty packaging solutions.

Trinseo details surface

In more primary happenings, Trinseo held its bank meeting on Monday, launching a $775 million senior secured credit facility (Ba3) that will be used with a $750 million-equivalent senior notes offering to refinance 8¾% senior secured notes due in 2019.

The facility consists of a $325 million five-year revolver, and a $450 million 6½-year covenant-light term loan B talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, a source remarked.

Commitments are due at noon ET on April 23 and closing is expected during the week of May 4.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, Goldman Sachs Bank USA, HSBC Securities, Mizuho, SMBC and Scotia Bank are leading the deal.

Trinseo is a Berwyn, Pa.-based materials company and manufacturer of plastics, latex and rubber.

US LBM reveals OID

US LBM held its lender call in the morning, launching its fungible $50 million tack-on senior secured term loan due May 2020 with original issue discount talk of 99, a market source said.

The tack-on is priced at Libor plus 700 bps with a 1% Libor floor, which matches existing term loan pricing, and all of the debt has call protection of 102 through November, then 101.5 for a year and 101 for a year.

Commitments are due on Thursday.

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

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

21st Century on deck

21st Century Oncology emerged with plans to hold a bank meeting at 2:30 p.m. ET in New York on Tuesday to launch a $695 million senior credit facility, according to a market source.

The facility consists of a $125 million revolver and a $570 million first-lien term loan, the source said.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., KeyBanc Capital Markets and HSBC Bank are leading the deal.

21st Century Oncology is a Fort Meyers, Fla.-based provider of cancer treatment services.

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