Higginbotham frees to trade; Azelis restructures; Truck Hero withdraws loan from primary

By Sara Rosenberg

New York, Nov. 25 – Higginbotham increased the size of its privately placed second-lien term loan and then allocated its credit facility on Wednesday, with the first-lien term loan breaking for trading above its original issue discount.

Also in the loan market, Azelis Group carved out a euro term loan from its U.S. first-lien term loan and modified spread and original issue discount on the U.S. tranche.

Furthermore, Truck Hero Inc. decided to pull its refinancing term loan B from market as a result of poor primary conditions, and Konecranes Terex plc surfaced with timing on the launch of its U.S. and euro term loan B.

Higginbotham upsizes, breaks

Higginbotham lifted its pre-placed 6.5-year second-lien term loan to $51.5 million from $50 million, according to a market source.

As before, the company is also getting a $40 million revolver (B2/B) and a $190 million six-year first-lien term loan B (B2/B) priced at Libor plus 525 basis points with a 1% Libor floor and an original issue discount of 99.

The first-lien term loan has 101 soft call protection for one year.

With final terms in place, the credit facility freed up for trading on Wednesday, with the first-lien term loan quoted at 99˝ bid, the source added.

SunTrust Robinson Humphrey Inc. is leading the now $281.5 million credit facility that will be used to refinance existing debt and to provide a distribution to allow employees to purchase additional equity interests in the business.

Higginbotham is a Fort Worth-based insurance brokerage firm.

Azelis reworks loan

In more happenings, Azelis downsized its $460 million seven-year first-lien covenant-light term loan (B+) to $325 million, raised pricing to Libor plus 550 bps from talk of Libor plus 450 bps to 475 bps and changed the original issue discount to 98 from 99, according to a market source.

As before, the U.S. first-lien term loan still has a 1% Libor floor and 101 soft call protection for one year.

With the downsizing of the U.S. first-lien term loan, a $135 million equivalent euro seven-year first-lien covenant-light term loan (B+) was added to the capital structure, the source said.

Talk on the euro loan is Euribor plus 525 bps to 550 bps with a 1% floor, a discount of 98 and 101 soft call protection for one year.

Commitments from U.S. investors were due at 2 p.m. ET on Wednesday and commitments from European investors are due at 5 p.m. GMT on Thursday, the source continued, adding that allocations are targeted for Monday.

Azelis second-lien

In addition to the first-lien debt, Azelis is getting a euro-denominated $215 million (€190 million equivalent) eight-year covenant-light second-lien term loan (CCC+).

Barclays, Morgan Stanley Senior Funding Inc. and ING are leading the $675 million in new term loan debt, with Barclays the left lead on the first-lien loan and Morgan Stanley the left lead on the second-lien loan.

Proceeds will be used to fund the acquisition of KODA Distribution Group, which is expected to close by year-end, subject to regulatory clearances, refinance Azelis’ existing debt and place cash on the balance sheet.

The borrowers on the loans are Azelis Finance SA and Azelis US Holding Inc.

Net first-lien leverage is 4.2 times, and net total leverage is 6.3 times.

Azelis is an Antwerp, Belgium-based pure-play specialty chemical distributor. KODA is a Stamford, Conn.-based specialty chemical company.

Truck Hero shelved

Truck Hero withdrew its $390 million seven-year term loan B (B1/B) from the primary because of unfavorable market conditions, a market source said.

The loan had been talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

J.P. Morgan Securities LLC was leading the deal that was going to be used to help refinance the company’s existing first- and second-lien credit facility.

Truck Hero is an Ann Arbor, Mich.-based designer, manufacturer and marketer of branded consumer accessories for pickup trucks.

Konecranes Terex timing

Konecranes Terex emerged with plans to hold a bank meeting in New York at 12:30 p.m. ET on Monday and a bank meeting in Europe at 12:30 p.m. GMT on Tuesday to launch its previously announced $900 million-equivalent U.S. dollar and euro seven-year term loan B, according to a market source.

The euro piece of the term loan B can be sized at up to €400 million, the source said.

Included in the term loan B is a 0.75% floor and 101 soft call protection for six months. Official spread and original issue discount talk are not yet available.

By comparison, a recent filing with the Securities and Exchange Commission had the euro piece of the term loan B sized at up to €450 million and expected pricing outlined at Libor plus 300 bps with a 0.75% floor.

Commitments are due Dec. 10, the source added.

The company’s $1.6 billion credit facility also includes a $700 million multi-currency revolver.

Konecranes Terex leads

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Commerzbank, Credit Agricole and Nordea Bank are leading Konecranes Terex’s term loan B.

Proceeds will be used to help fund the merger of Terex Corp. and Konecranes plc and to refinance existing bank facilities at both companies as needed. The combined company will be named Konecranes Terex plc.

At closing, Terex shareholders will own about 60% of the combined company and Konecranes shareholders will own around 40%.

Closing is expected in the first half of 2016, subject to approval by Terex and Konecranes shareholders, regulatory approvals and customary conditions.

Konecranes is a Hyvinkaa, Finland-based provider of lifting solutions as well as services for lifting equipment and machine tools of all makes. Terex is a Westport, Conn.-based diversified equipment manufacturer.

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