AgroFresh breaks above OID; Too Faced Cosmetics pricing finalizes at high end of talk

By Sara Rosenberg

New York, July 7 – AgroFresh’s credit facility hit the secondary market on Tuesday, with its term loan B quoted above its original issue discount, and General Communication Inc.’s repriced term loan held steady in its second day of trading.

Switching to the primary market, Too Faced Cosmetics firmed the spread on its term loan B at the wide end of guidance, Universal Services of America and Chelsea Petroleum Products I LLC disclosed price talk as their deals were presented to lenders during the session, and Filtration Group Corp. came out with original issue discount guidance on its add-on first-lien term loan.

AgroFresh starts trading

AgroFresh’s credit facility freed up for trading on Tuesday, and the $425 million six-year term loan B was seen at par bid, 101 offered, according to a trader.

Pricing on the term loan B is Libor plus 475 basis points, after firming during syndication at the high end of the Libor plus 450 bps to 475 bps talk. The debt has a 1% Libor floor and 101 soft call protection for six months, and was sold at an original issue discount of 99.5.

The company’s $450 million (B2/BB-) credit facility also includes a $25 million four-year revolver.

BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC and Sumitomo are leading the deal.

AgroFresh being acquired

Proceeds from AgroFresh’s credit facility will be used to help fund its purchase by Boulevard Acquisition Corp. for 18.4 million shares of Boulevard common stock and $626 million in cash from Dow Chemical Co. The total transaction value is about $810 million, assuming a valuation of $10 per Boulevard share.

Initially, Dow will hold about 40% of the shares of AgroFresh and Boulevard will hold about 60%.

Net debt to 2015 estimated EBITDA is 4.2 times.

Closing is expected late this month, subject to approval by Boulevard’s shareholders, the completion of regulatory filings and other customary conditions.

AgroFresh is a post‐harvest specialty chemical business.

General Communication above par

General Communication’s repriced $274.3 million covenant-light term loan due February 2022 was seen at 100¼ bid in the secondary market on Tuesday, in line with where it broke late Monday, a market source remarked.

The repriced loan is priced at Libor plus 325 bps with a 0.75% Libor floor and was issued at par. There is 101 soft call protection for six months.

Through this transaction, the company is taking pricing on the term loan down from Libor plus 375 bps with a 1% Libor floor.

SunTrust Robinson Humphrey Inc. is the lead on the deal.

General Communication is an Anchorage-based telecommunications provider.

Too Faced finalizes spread

Over in the primary market, Too Faced Cosmetics set pricing on its $130 million term loan B at Libor plus 500 bps, the high end of the Libor plus 475 bps to 500 bps talk and kept the 1% Libor floor and original issue discount of 99 unchanged, a source remarked.

The company’s $150 million credit facility also includes a $20 million revolver.

KeyBanc Capital Markets LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of a majority stake in the company by General Atlantic from Weston Presidio.

Closing is subject to regulatory review.

Too Faced Cosmetics is an Irvine, Calif.-based cosmetics company.

Universal Services sets talk

Universal Services came out with price talk on its first-and second-lien term loans shortly before its 10 a.m. ET bank meeting in New York on Thursday kicked off, according to a market source.

The $760 million seven-year first-lien covenant-light term loan (B2), of which $50 million is delayed-draw, is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99, and the $320 million eight-year second-lien covenant-light term loan (Caa2), of which $20 million is delayed-draw, is talked at Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 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.

Universal getting revolver

Along with the term loans, Universal Services’ $1.21 billion credit facility includes a $130 million revolver (B2).

Commitments are due at 5 p.m. ET on July 21.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to fund the acquisition of Universal Services and Guardsmark by Warburg Pincus.

Universal Services is a provider of manned guarding and related services.

Chelsea reveals guidance

Chelsea Petroleum disclosed talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $425 million seven-year term loan B that launched with a morning bank meeting, according to a market source.

The company’s $1,125,000,000 senior secured credit facility also includes a $700 million ABL revolver.

Commitments are due at noon ET on July 21, the source said.

Morgan Stanley Senior Funding Inc. and BMO Capital Markets are leading the deal, with Morgan Stanley left lead on the term loan B and BMO left lead on the ABL.

Proceeds will be used to help fund the buyout of the midstream oil and gas company by ArcLight Capital Partners from Cumberland Farms.

Filtration discloses OID

Filtration Group released original issue discount talk of 99.5 on its fungible $93 million add-on first-lien term loan that launched with a call on Tuesday, a source remarked.

Pricing on the add-on loan matches existing first-lien term loan pricing at Libor plus 325 bps with a 1% Libor floor.

Goldman Sachs Bank USA is leading the deal that will be used to fund an acquisition.

Filtration Group is a Chicago-based manufacturer and distributor of filtration products to end markets.

Telular wraps syndication

In other news, Telular Corp. completed syndication of its $55 million add-on first-lien term loan at talk of Libor plus 425 bps with a 1.25% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

SunTrust Robinson Humphrey Inc. is leading the deal that allocated on Monday.

Proceeds will be used to fund an acquisition and pay down a $37.5 million second-lien term loan.

Total leverage is 4.5 times.

Telular is a Chicago-based provider of remote monitoring and asset tracking solutions for business and residential customers.

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