PLZ Aeroscience, Orion Engineered break; Fairmount changes surface; Cypress accelerated

By Sara Rosenberg

New York, Oct. 24 – PLZ Aeroscience modified the original issue discount on its add-on term loan and Orion Engineered Carbons set the issue price on its euro term loan B at the tight end of revised guidance, and then both of these deals freed up for trading on Tuesday.

In other news, Fairmount Santrol Inc. widened spread and original issue discount talk on its term loan, sweetened the call protection and shortened the maturity, and Cypress Performance Group revised the commitment deadline on its term loans.

Also, Davis Vision-Superior Vision, Big Ass Solutions (Big Ass Fans LLC) and Truck Hero Inc. disclosed price talk with launch, and Intralinks Holdings Inc., Edelman Financial Center LLC, TerraForm Power Operating LLC, Unifrax and Sage Automotive Holdings Inc. joined this week’s calendar.

PLZ revised, trades

PLZ Aeroscience tightened the original issue discount on its fungible $160 million incremental term loan to 99.875 from 99.5, according to a market source.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and all of the term loan debt is getting 101 soft call protection for six months.

Including the incremental piece, the term loan will total $663.8 million.

With terms finalized, the incremental loan emerged in the secondary market and levels were quoted at par ¼ bid, par ¾ offered, the source added.

Antares Capital and BMO Financial Corp. are leading the deal that will be used to fund an acquisition.

PLZ Aeroscience, a portfolio company of the Pritzker Group, is a Downers Grove, Ill.-based provider of custom aerosol packaging for various consumer and institutional products.

Orion updated

Orion Engineered Carbons firmed the original issue discount on its €331 million first-lien senior secured term loan B due July 25, 2024 at 99.875, the tight end of revised talk of 99.75 to 99.875, and tight of initial talk of just 99.75, a market source remarked.

Pricing on the euro loan is Euribor plus 250 bps with a 0% floor, and the debt has 101 soft call protection for six months.

The company is also getting a $289 million first-lien senior secured term loan B due July 25, 2024 priced at Libor plus 250 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Previously in syndication, pricing on the euro term loan was cut from Euribor plus 275 bps and the issue price on the U.S. term loan was tightened from 99.75.

Orion hits secondary

Following the release of final terms, Orion Engineered Carbons’ term debt began trading, with the U.S. loan quoted at par bid, par ¾ offered and the euro loan quoted at par 1/8 bid, par ½ offered, another source added.

Goldman Sachs Bank USA is the bookrunner on the deal, and mandated lead arrangers are Citizens Bank, Goldman Sachs, ING Bank and Mediobanca International (Luxembourg) SA.

Proceeds will be used to refinance an existing U.S. term loan due July 2021 priced at Libor plus 250 bps with a 0% Libor floor and an existing euro term loan due July 2021 priced at Euribor plus 275 bps with a 0% floor.

Closing is expected during the week of Nov. 6, the source added.

Orion Engineered Carbons is a Frankfurt-based producer of carbon black.

Fairmount reworks deal

Back in the primary market, Fairmount Santrol raised price talk on its $700 million covenant-light first-lien term loan (B3/B-) to a range of Libor plus 575 bps to 600 bps from Libor plus 475 bps, revised original issue discount talk to a range of 98 to 98.5 from 99.5, changed the soft call protection to 102 in year one and 101 in year two from 101 for one year, and shortened the maturity to five years from seven years, according to a market source.

The term loan still has a 1% Libor floor.

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

Barclays is leading the deal that will be used to refinance existing term loans.

Fairmount Santrol is a Chesterfield, Ohio, provider of high-performance sand and sand-based products used by oil and gas exploration and production companies to enhance the productivity of their wells.

Cypress moves deadline

Cypress Performance Group accelerated the commitment deadline on its $460 million seven-year covenant-light first-lien term loan (B1/B) and $150 million eight-year covenant-light second-lien term loan (Caa1/CCC+) to 5 p.m. ET on Thursday from 5 p.m. ET on Nov. 1, a market source said.

The first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

The company’s $695 million of credit facilities also provide for an $85 million revolver (B1/B).

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Jefferies LLC, Deutsche Bank Securities Inc. and M&T Bank are leading the deal that will be used to fund the combination of Encapsys LLC and IPS Corp.

Cypress Performance is an advanced materials and diversified products provider.

Davis Vision guidance

Davis Vision-Superior Vision, a managed vision care company, held its bank meeting on Tuesday and announced price talk on its $660 million seven-year first-lien term loan (B) and $250 million eight-year second-lien term loan (CCC+), according to a market source.

Talk on the first-lien term loan is Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $985 million of senior secured credit facilities also provide for a $75 million revolver (B).

Commitments are due on Nov. 2, the source added.

Goldman Sachs Bank USA, Barclays, Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and BMO Capital Markets are leading the deal that will be used to help fund the acquisition of Davis Vision Inc. by Centerbridge Partners LP from Highmark Inc. and combination with Centerbridge’s existing portfolio company Superior Vision. Highmark will acquire a minority ownership interest in the combined company.

Closing is expected in the fourth quarter, subject to regulatory approval.

Big Ass sets talk

Big Ass Solutions came out with talk of Libor plus 475 bps to 500 bps with a 1% Libor floor and an original issue discount of 99.5 on its $250 million 6.5-year covenant-light first-lien term loan that launched with a bank meeting on Tuesday, a market source remarked.

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

The company’s $290 million of credit facilities (B2/B) also include a $40 million revolver.

Commitments are due on Nov. 8.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Lindsay Goldberg.

Big Ass Solutions is a Lexington, Ky.-based producer of high volume, low speed and connected fans.

Truck Hero floats OID

Truck Hero launched on its call its fungible $190 million add-on first-lien term loan (B) with original issue discount talk of 99.5, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor and the debt is getting 101 soft call protection for six months.

Commitments are due on Oct. 31, the source said.

Jefferies is leading the deal that will be used with a $45 million add-on second-lien term loan (CCC+) that was pre-placed at a discount of 99 to fund the acquisition of Omix-ADA Inc.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor.

Closing on the acquisition is expected by the end of October.

Truck Hero is an Ann Arbor, Mich.-based provider of truck bed covers and other truck and Jeep accessories. Omix-ADA is a Suwanee, Ga.-based developer and supplier of Jeep and off-road parts, accessories and floor liners.

Intralinks on deck

Also on the new deal front, Intralinks set a bank meeting for noon ET in New York on Thursday to launch $650 million of senior secured credit facilities, according to a market source.

The facilities consist of a $50 million five-year revolver, a $450 million seven-year first-lien term loan and a $150 million eight-year second-lien term loan, the source said.

RBC Capital Markets, Golub Capital and Macquarie Capital are leading the deal that will be used to help fund the roughly $1 billion buyout of the company by Siris Capital Group LLC from Synchronoss Technologies Inc.

Closing is expected in mid-November, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other foreign antitrust regulatory approvals.

Intralinks is a provider of cloud-based virtual data room and highly secure team collaboration solutions to financial institutions and enterprises.

Edelman joins calendar

Edelman Financial scheduled a lenders’ presentation for 11 a.m. ET on Wednesday to launch a $460 million senior secured term loan B, a market source said.

Morgan Stanley Senior Funding Inc., UBS Investment Bank, BMO Capital Markets Corp. and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt, fund a distribution to equity holders, and pay related fees and expenses.

Edelman Financial is an independent financial planning firm.

TerraForm readies loan

TerraForm Power Operating LLC will hold a bank meeting at 9:30 a.m. ET in New York on Thursday to launch a $300 million five-year covenant-light term loan B, a market source remarked.

RBC Capital Markets, The Bank of Nova Scotia, BMO Capital Markets, HSBC Securities (USA) Inc., Natixis and SMBC are leading the deal that will be used with cash on hand to repay a non-recourse portfolio term loan that was entered into in December 2015.

TerraForm Power, sponsored by Brookfield Asset Management, is a Bethesda, Md.-based owner and operator of a renewable power portfolio of solar and wind assets.

Unifrax coming soon

Unifrax emerged with plans to hold a lender call at 1 p.m. ET on Thursday to launch a $57 million add-on first-lien term loan and a new $100 million second-lien term loan, according to a market source.

Goldman Sachs Bank USA, KeyBanc Capital Markets and ING are leading the deal that will be used to fund a dividend recapitalization.

Also, the company will be amending its existing credit facility.

Unifrax is a Tonawanda, N.Y.-based specialty materials platform focused on providing innovative thermal management, filtration and energy solutions for end markets and applications.

Sage plans call

Sage Automotive set a call for Wednesday for credit facility lenders to launch a loan deal, according to a market source.

UBS Investment Bank is leading the transaction.

Sage Automotive is a Greenville, S.C.-based supplier of specialty designed, high-performance textiles and premium fabrics to the automotive industry.

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