Golden State Medical, PL Developments, Confluent free up; Vast Broadband firms terms

By Sara Rosenberg

New York, June 21 – Golden State Medical Supply raised pricing on its first-lien term loan and extended the call protection, and then broke for trading on Friday, and deals from PL Developments LLC and Confluent Health LLC freed up as well.

In more happenings, Vast Broadband finalized the spread on its first-lien term loan B at the wide end of guidance, and Talen Energy Supply LLC and St. Joseph Energy Center disclosed price talk on their term loans.

Golden State revised, trades

Golden State Medical Supply lifted pricing on its $300 million covenant-lite first-lien term loan (B2/B-) to Libor plus 475 basis points from talk in the range of Libor plus 425 bps to 450 bps and extended the 101 soft call protection to one year from six months, according to a market source.

The first-lien term loan still has a 0% Libor floor and an original issue discount of 99.

After terms finalized, the first-lien term loan made its way into the secondary market and was seen at 99 bid, par offered, the source said.

The company’s $470 million of credit facilities also include a $40 million revolver (B2/B-) and a $130 million covenant-lite second-lien term loan (Caa2/CCC).

SunTrust Robinson Humphrey Inc. and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Court Square.

Golden State Medical is a Camarillo, Calif.-based generic pharmaceutical supplier.

PL Developments breaks

PL Developments’ $312.5 million five-year senior secured first-lien term loan B (B2/B-/B+) freed up as well, with levels quoted at 98 bid, 99 offered, a market source remarked.

Pricing on the term loan is Libor plus 750 bps with a 2% Libor floor and it was sold at an original issue discount of 97.5. The loan is non-callable for one year, then at 103 in year two and 101.5 in year three, and apply to all asset sales if not reinvested.

During syndication, the term loan was upsized from $310 million, pricing was increased from Libor plus 700 bps, the floor was revised from 0%, the discount widened from 98, the call protection was changed from non-callable for one year, then at 102 in year two and 101 in year three, the maturity was shortened from six years, and modifications were made to amortization, excess cash flow sweep, baskets, capital expenditures cap, cash netting and restricted payments.

PL getting revolver

In addition to the term loan, PL Developments’ $352.5 million of credit facilities include a $40 million ABL revolver.

Jefferies LLC is leading the deal that will refinance existing debt and fund the acquisition of Teva Pharmaceutical Industries’ nicotine replacement therapy business and a basket of OTC and Abbreviated New Drug Application products.

PL Developments is a Westbury, N.Y.-based manufacturer, packager and distributor of over-the-counter pharmaceutical products and consumer health care goods.

Confluent hits secondary

Confluent Health’s $200 million seven-year covenant-lite first-lien term loan (B3/B-) began trading too with levels quoted at 99½ bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 500 bps with a 0% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan firmed at the high end of the Libor plus 475 bps to 500 bps talk, the call protection was extended from six months, and documentation changes were made, including to MFN, incremental, asset sales, indebtedness, unlimited restricted payments, restricted debt payments, available amount and investments.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc. and Bank of Ireland are leading the deal that will be used to help support a significant equity investment in the company by Partners Group on behalf of its clients alongside management. The Edgewater Funds will divest its holding in the company as part of the transaction.

Closing is expected on Monday.

Confluent Health is a Louisville, Ky.-based outpatient physical therapy provider.

SMB holds steady

Also in trading, SMB Shipping Logistics LLC’s fungible $50 million incremental term loan was quoted at 99½ bid, par offered on Friday, in line with where it broke for trading on Thursday, a market source said.

The incremental term loan is priced at Libor plus 400 bps with a 1% Libor floor and was sold at an original issue discount of 99.5.

During syndication, the incremental term loan was upsized from $25 million.

Antares Capital is leading the deal that will be used to repay revolver borrowings and provide cash for future tuck-in acquisitions.

Closing is expected on Monday.

The company’s existing term loan is sized at $490.5 million.

SMB Shipping, a portfolio company of Ridgemont Equity Partners, is a Dallas-based provider of small parcel and freight services to the small and midsize business market.

Vast Broadband updated

Back in the primary market, Vast Broadband set the spread on its $237.5 million seven-year first-lien term loan B (B2/B) at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, according to a market source.

As before, the term loan has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Allocations are expected during the week of June 24, the source said.

The company’s $387.5 million of credit facilities also include a $75 million five-year revolver (B2/B) and a $75 million privately placed second-lien term loan.

SunTrust Robinson Humphrey Inc., TD Securities (USA), CoBank and Webster Bank are leading the deal that will be used to help fund the acquisition of NTS Communications from Tower Three Partners and recapitalization of Vast by Oak Hill Capital Partners and Pamlico Capital.

Vast Broadband is a provider of broadband, video and voice services. NTS is a broadband fiber company.

Talen hosts call

Talen Energy Supply held a lender call on Friday, launching a $500 million seven-year term loan B (BB) at talk of Libor plus 375 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on June 28, the source added.

J.P. Morgan Securities LLC is leading the loan that will be used with $470 million of senior secured notes due 2028 and cash on hand to repay the company’s term loan B-1 and term loan B-2 and to pay transaction fees and expenses.

Talen Energy is a The Woodlands, Texas-based energy and power generation company.

St. Joseph sets talk

St. Joseph Energy Center launched without a lender call its fungible $21.5 million add-on term loan B (Ba3/BB-) with original issue discount guidance of 99 to 99.5, according to a market source.

The add-on term loan is priced at Libor plus 350 bps with a 1% Libor floor.

BNP Paribas Securities Corp. is leading the deal that will be used to support the company’s investment in installing diesel generator units to jump start the grid in the event of a system-wide outage.

The add-on term loan will be fungible with the existing term loan B post-upgrade of the project.

In connection with this transaction, the company is seeking an amendment to its existing credit facility to allow for the incremental term loan and is offering lenders a 15 bps amendment fee, the source said.

Commitments and consents are due at noon ET on Thursday.

St. Joseph Energy Center is a natural gas-fired combined cycle generation facility in New Carlisle, Ind.

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