LA Fitness, Floor & Decor, Commercial Vehicle break; number of primary deal updates surface

By Sara Rosenberg

New York, March 29 – LA Fitness (Fitness International LLC) firmed the size and spread on its term loan B and then freed up for trading on Wednesday, and deals from Floor & Decor Outlets of America Inc. and Commercial Vehicle Group Inc. hit the secondary market too.

In more happenings, Chemours Co. reduced the size of its U.S. term loan B, increased the size of its euro term loan B and finalized the issue prices on the loans at the tight end of guidance, and Installed Building Products Inc. trimmed the spread on its term loan B and set the original issue discount at the tight side of talk.

Also, Associated Asphalt Partners LLC upsized its term loan B, and Caesars Entertainment Operating Co. LLC and NXT Capital Inc. accelerated the commitment deadlines on their new loan deals.

Furthermore, USI Insurance Services, Playa Resorts Holding BV and First Eagle Holdings Inc. released price talk with launch, and American Builders & Contractors Supply Co. Inc. returned to market with a repricing proposal after postponing a similar transaction earlier this year.

And, Constellis Holdings LLC began circulating price talk on its first- and second-lien term loans in preparation for its upcoming bank meeting, and Talen Energy Supply LLC and Northstar Travel Group emerged with new deal plans.

LA Fitness updated, trades

LA Fitness finalized its term loan B size at $860.8 million and set pricing at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, according to a market source.

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

With final terms in plans, the term loan B made its way into the secondary market on Wednesday, and levels were quoted at par ¾ bid, 101¼ offered, a trader said.

Bank of America Merrill Lynch, Bank of the West and MUFG are leading the deal that will be used to reprice an existing term loan B down from Libor plus 500 bps with a 1% Libor floor.

As part of the repricing, the company is paying down about $100 million of the term loan B with revolver borrowings and converting about $169 million in term loan B debt to term loan A borrowings, bringing the term loan B size to $860.8 million, the market source added.

LA Fitness is an Irvine, Calif.-based non-franchised fitness club operator.

Floor & Decor frees up

Floor & Décor’s $350 million first-lien term loan due September 2024 also began trading, with levels quoted at par ¼ bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan from Libor plus 425 bps with a 1% Libor floor.

Floor & Decor is an Atlanta-based specialty retailer in the hard surface flooring market.

Commercial Vehicle breaks

Commercial Vehicle’s $175 million term loan B (B2/B) freed to trade as well, with levels quoted at 98¼ bid, 99 offered, a trader said.

Pricing on the loan is Libor plus 600 bps with a 1% Libor floor, and it was sold at an original issue discount of 98. The term loan has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from Libor plus 500 bps and the discount widened from 99.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used with about $60 million of cash on the balance sheet to refinance $235 million of 7 7/8% notes due April 2019.

The refinancing is expected to close after the redemption premium on the notes steps down to zero in April.

Commercial Vehicle Group is a New Albany, Ohio-based supplier of cab-related products and systems for the commercial vehicle market.

Chemours modifies deal

Back in the primary market, Chemours trimmed its U.S. term loan B due May 12, 2022 to $940 million from $1,022,000,000, lifted its euro term loan B due May 12, 2022 to €400 million from €325 million and set the issue price on both loans at par, the tight end of the 99.75 to par talk, a market source remarked.

The U.S. term loan is still priced at Libor plus 250 bps with a 0% Libor floor, and the euro term loan is still priced at Euribor plus 225 bps with a 0.75% floor.

Recommitments were due at noon ET on Wednesday and allocations are expected on Thursday, the source added.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used to reprice/refinance an existing term loan B due 2022 and to pay related fees and expenses.

Chemours is a Wilmington, Del.-based provider of performance chemicals.

Installed Building tweaked

Installed Building cut pricing on its $300 million seven-year covenant-light term loan B (B1/BB) to Libor plus 300 bps from talk of Libor plus 325 bps to 350 bps and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Commitments are due at noon ET on Thursday, accelerated from Friday, the source said.

The company’s $400 million senior secured credit facility also includes a $100 million five-year ABL revolver with pricing expected to range from Libor plus 125 bps to 175 bps based on excess availability, and the unused fee expected to range from 25 bps to 37.5 bps based on utilization.

RBC Capital Markets, UBS Investment Bank and Jefferies Finance LLC are leading the deal that will be used by the Columbus, Ohio-based installer of insulation products to refinance about $96 million of term loan borrowings and about $125 million outstanding under a delayed-draw term loan and to add cash to the balance sheet.

Net leverage is 2.1 times.

Closing is expected during the week of April 3.

Associated Asphalt upsizes

Associated Asphalt increased the size of its seven-year first-lien term loan B to $350 million from $325 million and left pricing at Libor plus 525 bps with a 1% Libor floor and an original issue discount of 99.5, a market source remarked.

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

Previously in syndication, the spread on the loan was lowered from talk of Libor plus 550 bps to 575 bps, and the discount was tightened from 98.5.

Recommitments are due at 10:40 a.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets LLC, SunTrust Robinson Humphrey Inc. and Capital One are leading the deal that will be used to refinance existing debt.

Associated Asphalt is a Roanoke, Va.-based operator of an asphalt terminalling, storage and distribution network.

Caesars shutting early

Caesars Entertainment moved up the commitment deadline on its $1,435,000,000 senior secured credit facility (Ba3/BB) to noon ET on Friday from 5 p.m. ET on Tuesday, according to a market source.

The facility consists of a $200 million five-year revolver and a $1,235,000,000 seven-year covenant-light term loan B.

Talk on the term loan B is Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used for exit financing, including to repay existing debt and to pay related fees and expenses.

Total opco debt is 2.8 times and net opco debt is 2.1 times. Total lease adjusted debt is 5.8 times, and net lease adjusted debt is 5.5 times.

Caesars is a Las Vegas-based casino-entertainment company.

NXT moves deadline

NXT Capital accelerated the commitment deadline on its $75 million add-on term loan B due November 2022 to noon ET on Friday from Tuesday, a market source said.

Pricing on the add-on loan is Libor plus 450 bps with a 1% Libor floor, in line with existing term loan B pricing, and the new debt is offered at par.

Included in the term loan B is 101 soft call protection that expires in November.

RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund a dividend.

With this transaction, the company is looking to amend its existing credit agreement to allow for the one-time dividend and make some other minor changes.

NXT is a Chicago-based provider of structured financing solutions.

USI discloses guidance

Also in the primary market, USI Insurance Services came out with talk of Libor plus 325 bps with a step-down to Libor plus 300 bps at 4.5 times net first-lien leverage, a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $1,795,000,000 seven-year term loan B that launched with a bank meeting on Wednesday, a market source remarked.

The company’s $1,995,000,000 senior secured credit facility (B3/B) also includes a $200 million revolver.

Commitments are due on April 5, the source added.

Bank of America Merrill Lynch, KKR Capital Markets, Citigroup Global Markets Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by KKR and Caisse de depot et placement du Quebec from Onex Corp. in a transaction that values the company at $4.3 billion.

Closing is expected by the end of the second quarter, subject to customary conditions, including regulatory approvals.

USI is a Valhalla, N.Y.-based insurance brokerage and consulting firm.

Playa reveals talk

Playa Resorts held its bank meeting in the morning, launching its $530 million seven-year covenant-light term loan B (B2/BB-) at talk of Libor plus 300 bps to 325 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.

Commitments are due at 5 p.m. ET on April 6, the source said.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Nomura are leading the deal that will be used to refinance an existing term loan and to pay down a portion of the company’s existing senior notes.

Playa Resorts is a Fairfax, Va.-based owner, operator, and developer of all-inclusive resorts.

First Eagle holds call

First Eagle hosted a lender call at 2 p.m. ET to launch a $1,485,000,000 senior secured covenant-light term loan B due Dec. 1, 2022 talked at Libor plus 325 bps to 350 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 0.75% Libor floor.

First Eagle is a New York-based independent, privately held asset management firm.

American Builders returns

American Builders approached lenders with a repricing of its $1,875,000,000 covenant-light term loan B due Oct. 31, 2023 talked at Libor plus 225 bps to 250 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due by 3 p.m. ET on Monday, the source said.

Deutsche Bank Securities Inc. is leading the deal that will reprice the existing term loan down from Libor plus 275 bps with a 0.75% Libor floor.

Closing is targeted for May 1.

In January, the company had launched a repricing of this term loan at talk of Libor plus 225 bps with a step-down to Libor plus 200 bps at net first-lien leverage of 2.5 times, a 0.75% Libor floor, a par issue price and 101 soft call protection for six months. However, shortly thereafter, the decision was made to postpone the transaction.

American Builders is a Beloit, Wis.-based building products distributor.

Constellis talk emerges

Constellis disclosed price talk on its $725 million seven-year covenant-light first-lien term loan (B+) and $215 million eight-year covenant-light second-lien term loan (B-) in advance of its bank meeting set for 10 a.m. ET in New York on Thursday, a market source remarked.

Talk on the first-lien term loan is Libor plus 475 bps to 500 bps with a 1% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 875 bps to 900 bps with a 1% Libor floor and a discount of 98.5, the source continued.

As previously reported, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $1,015,000,000 credit facility also includes a $75 million revolver (B+).

Constellis lead banks

Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Jefferies Finance LLC and Goldman Sachs Bank USA are leading Constellis’ credit facility.

Commitments are due at 5 p.m. ET on April 13.

Proceeds will be used to help fund the acquisition of Centerra Group LLC from Alvarez & Marsal Capital and to refinance the combined company’s existing debt.

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

Constellis is a Reston, Va.-based provider of operational support and risk management services to government and commercial clients. Centerra is a Palm Beach Gardens, Fla.-based government and critical infrastructure services company.

Talen readies deal

Talen Energy Supply surfaced with plans to hold a lenders’ presentation at 2 p.m. ET on Thursday to launch a new loan deal, a market source said.

Morgan Stanley Senior Funding Inc. is leading the transaction.

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

Northstar on deck

Northstar Travel Group set a lender call for Thursday to launch a $58 million incremental first-lien term loan, according to a market source.

Macquarie Capital (USA) Inc. is leading the deal that will be used to fund an acquisition.

Northstar Travel is a Secaucus, N.J.-based provider of business-to-business information, content, events, data, research, custom content and software dedicated to the global travel and meeting industries.

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