Belcan restructures deal; Peacock Engineering, Precyse Solutions, Recorded Books set talk

By Sara Rosenberg

New York, July 9 – In the primary loan market on Thursday, Belcan Corp. (Propulsion Acquisition LLC) widened the spread and original issue discount on its term loan, sweetened the call protection and the excess cash flow sweep, and shortened the maturity.

Additionally, Peacock Engineering, Precyse Solutions LLC and Recorded Books came out with price talk on their loans with launch, Ascena Retail Group Inc. and C.H.I. Overhead Doors revealed bank meeting timing, and MediaOcean LLC and PLZ Aeroscience Corp. joined next week’s calendar.

Belcan reworks loan

Belcan raised pricing on its $190 million first-lien term loan (B3/B) to Libor plus 600 basis points from Libor plus 550 bps, changed the original issue discount to 97 from 99, extended the 101 soft call protection to one year from six months, increased the opening excess cash flow sweep to 75% from 50% and shortened the maturity to six years from seven years, according to a market source.

The 1% Libor floor on the term loan was unchanged.

The company’s $225 million credit facility also includes a $35 million ABL revolver.

Commitments were due at 5 p.m. ET on Thursday, the source said.

Credit Suisse Securities (USA) LLC and PNC Capital Markets are leading the term loan, with Credit Suisse the left lead and PNC the sole lead on the revolver.

Proceeds will be used to fund the buyout of the company by AE Industrial Partners LLC, which is expected to close by the third quarter.

Belcan is a Cincinnati-based engineering services and technical staffing provider in the aerospace, power generation and industrial markets.

Peacock discloses talk

Peacock Engineering held its bank meeting on Thursday, launching its $320 million senior credit facility with price talk of Libor plus 425 bps, a market source said.

The facility includes a $35 million five-year revolver (B2/B+) that has no Libor floor and an original issue discount of 99.5, and a $285 million seven-year term loan (B2/B+) that has a 1% Libor floor, a discount of 99 and 101 soft call protection for six months, the source continued.

Commitments are due on July 23, and closing is targeted for July 29.

The company is also getting a $55 million second-lien term loan (Caa1/CCC+) that has been privately placed.

GE Capital Markets, RBC Capital Markets and BMO Capital Markets are leading the deal that will be used to help fund an acquisition and recapitalization. The company is buying L&L Foods, an Anaheim, Calif.-based provider of turnkey procurement and packaging services.

Peacock is a Geneva, Ill.-based contract packager servicing blue-chip consumer packaged goods companies.

Precyse reveals guidance

Precyse Solutions came out with talk of Libor plus 475 bps on its $130 million credit facility that consists of a $20 million five-year revolver and a $110 million seven-year term loan, a source said.

The revolver has no Libor floor and an original issue discount of 99, and the term loan has a 1% Libor floor and a discount of 99, the source continued.

Commitments are due on July 22, and closing is targeted for July 28.

GE Capital Markets is leading the deal that will be used to help fund the buyout of the company by Pamplona Capital Management.

Precyse is a Wayne, Pa.-based health information management solutions provider.

Recorded Books launches

Recorded Books launched with a morning bank meeting a $107.5 million six-year first-lien term loan talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a source remarked.

Commitments are due on July 23.

The company’s $160 million credit facility also includes a $20 million five-year revolver, and a $32.5 million seven-year second-lien term loan that was pre-placed and is priced at Libor plus 850 bps with a 1% Libor floor, the source added.

BNP Paribas Securities Corp. is leading the deal, which will help fund the buyout of the company by Shamrock Capital from Wasserstein & Co.

Recorded Books is a Prince Frederick, Md.-based publisher of unabridged audiobooks and provider of digital content to the library, school and retail markets.

Ascena on deck

Also on the primary front, Ascena Retail Group scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch its previously announced $1.8 billion seven-year senior secured term loan B (Ba2/BB+), according to a market source.

Official price talk on the loan is not yet available, but past filings with the Securities and Exchange Commission said the term B was expected at Libor plus 350 bps if corporate ratings are Ba3/BB- and Libor plus 375 bps if corporate ratings are lower than Ba3/BB-, with a 1% Libor floor and 101 soft call protection for six months.

In addition to the term loan, the company will have an asset-based revolver led by J.P. Morgan Securities LLC, the source remarked.

Ascena term B leads

Goldman Sachs Bank USA and Guggenheim Securities LLC are leading Ascena’s term loan B that will be used to help fund the acquisition of ANN Inc. and refinance some existing debt.

ANN is being bought for $37.34 in cash and 0.68 of a share of Ascena common stock per ANN common stock share. The transaction gives ANN an enterprise value of about $2 billion.

Pro forma debt to last-12-months adjusted EBITDA excluding synergies will be 2.6 times.

Closing is expected in the second half of this year, subject to customary conditions, including the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and ANN shareholder approval.

Ascena is a Mahwah, N.J.-based specialty retailer offering clothing, shoes and accessories for missy and plus-size women. ANN is a New York-based women’s specialty retail fashion company.

C.H.I. sets meeting

C.H.I. Overhead emerged with plans to hold a bank meeting at 10:30 a.m. ET in New York on Tuesday to launch its $475 million credit facility, a market source said. The deal had previously been labeled as July business, with specific timing to be determined.

As previously reported, the facility consists of a $40 million revolver, a $300 million seven-year first-lien term loan and a $135 million eight-year second-lien term loan.

Newly announced was that both term loans have a 1% Libor floor, the source continued.

UBS AG and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by KKR from Friedman Fleischer & Lowe LLC.

C.H.I. Overhead is an Arthur, Ill.-based manufacturer and marketer of overhead garage doors.

MediaOcean readies launch

MediaOcean set a bank meeting for Tuesday to launch a $335 million credit facility, according to a market source.

The facility consists of a $20 million five-year revolver (B2), a $225 million seven-year first-lien covenant-light term loan (B2) and a $90 million eight-year second-lien term loan (Caa2) that was pre-placed, the source said.

Macquarie Capital (USA) Inc. is leading the deal that will be used to help fund the buyout of the company by Vista Equity Partners.

Closing is expected in the third quarter.

MediaOcean is a New York-based software company for the advertising sector.

PLZ joins calendar

PLZ Aeroscience scheduled a bank meeting for Monday to launch a $345 million senior credit facility, a market source remarked.

The facility consists of a $30 million revolver and a $315 million term loan, the source said.

GE Capital Markets is leading the deal that will be used to help fund the acquisition of the company by the Pritzker Group.

PLZ is an Addison, Ill.-based manufacturer of specialty aerosol products.

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