MKS Instruments changes emerge; Fleetpride, Revere Power, Perforce, US Salt release talk

By Sara Rosenberg

New York, Jan. 17 – In the primary market on Thursday, MKS Instruments Inc. lowered the spread on its incremental first-lien term loan and tightened the original issue discount.

Also, Fleetpride (Fastlane Parent Co. Inc.), Revere Power LLC, Perforce Software Inc. and US Salt LLC revealed price talk with launch.

MKS reworks loan

MKS Instruments flexed pricing on its $650 million seven-year incremental first-lien term loan B (Ba1/BB+) to Libor plus 225 basis points from Libor plus 250 bps and adjusted the original issue discount to 99 from talk in the range of 98 to 98.5, according to a market source.

The incremental term loan still has a 0% Libor floor and 101 soft call protection for six months.

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

The company’s $750 million of credit facilities also include a $100 million five-year ABL revolver.

Barclays and HSBC Securities (USA) Inc. are leading the deal that will be used with cash on hand to fund the acquisition of Electro Scientific Industries Inc. for $30.00 per share in cash, or about $1 billion.

Closing is expected this quarter.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions to improve performance and productivity of advanced manufacturing processes. Electro Scientific is a Portland, Ore.-based supplier of photonic and laser systems to microelectronics customers.

Fleetpride sets guidance

Fleetpride held its lender call on Thursday, launching its $620 million seven-year first-lien term loan (B-) at talk of Libor plus 450 bps with a 0% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Jan. 25, the source added.

The company’s $1.07 billion of credit facilities also include a $225 million five-year ABL revolver and a $225 million privately placed eight-year second-lien term loan (CCC).

Barclays, RBC Capital Markets, Jefferies LLC, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by American Securities from TPG Capital.

Total leverage will be about 6.3 times on pro forma adjusted Oct. 31 EBITDA of $136 million.

Fleetpride is an Irving, Texas-based distributor of aftermarket heavy-duty truck and trailer parts.

Revere reveals talk

Revere Power announced talk of Libor plus 425 bps with a 0% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months on its $445 million seven-year term loan B and $86 million seven-year term loan C with its morning bank meeting, according to a market source.

The company’s $586 million of credit facilities also include a $55 million five-year revolver.

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

Jefferies LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund Carlyle Group’s acquisition of three natural gas-fired generation facilities, known as Bridgeport Energy, Tiverton Power and Rumford Power, for $590 million from Emera Inc. The term loan C will be used to put cash on the balance sheet for various maintenance contracts.

Closing is expected this quarter, subject to regulatory approvals.

Perforce Software launches

Perforce Software held its lender meeting in the morning and disclosed talk of Libor plus 475 bps with a 1% Libor floor and an original issue discount of 99 on its $375 million incremental first-lien term loan, a market source said.

In connection with this transaction, the spread on the company’s existing roughly $330 million first-lien term loan is being lifted to Libor plus 475 bps from Libor plus 425 bps.

The incremental term loan and existing term loan will get 101 soft call protection for six months.

Commitments are due on Jan. 31, the source added.

The company is also getting an $85 million privately placed incremental second-lien term loan.

Antares Capital, Ares Capital Management, Varagon Capital Partners and AB Private Credit Investors are leading the deal that will be used to fund the acquisition of Rogue Wave Software.

First-lien leverage is expected to be 4.75 times and total net leverage is expected to be 5.75 times off of about $150 million of LTM EBITDA.

Perforce, a Clearlake Capital Group LP portfolio company, is a Minneapolis-based provider of software solutions for enterprise software development operations teams.

US Salt proposed terms

US Salt revealed talk on its $285 million seven-year covenant-light first-lien term loan of Libor plus 475 bps with a 0% Libor floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months with its afternoon bank meeting, according to a market source.

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

The company’s $437.5 million of credit facilities also include a $25 million five-year revolver and a $127.5 million privately placed second-lien term loan.

Citizens Bank is leading the deal that will be used to fund an acquisition and refinance existing debt.

US Salt is an Overland Park, Kan.-based producer of salt.

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