Warner Music, Bombardier, L&W, Aramark, SRS Distribution break; Zekelman launches repricing

By Sara Rosenberg

New York, May 18 – Warner Music Group (WMG Acquisition Corp.) widened pricing on its term loan and, Bombardier Recreational Products Inc. increased the size of its term loan B and finalized the spread at the low end of guidance, and then both of these deals freed up for trading on Friday.

Also, L&W Inc. (Autokiniton US Holdings Inc.) changed the original issue discount on its term loan before making its way into the secondary market, and deals from Aramark Services Inc. and SRS Distribution Inc. broke too.

In more happenings, Zekelman Industries came to market with a repricing transaction, and Unitymedia Finance LLC surfaced with new deal plans.

Warner revised, trades

Warner Music Group raised pricing on its $1,326,000,000 covenant-light first-lien term loan due November 2023 to Libor plus 212.5 basis points from Libor plus 200 bps, and left the 0% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

After terms finalized, the term loan emerged in the secondary market on Friday morning and levels were quoted at par bid, par ¼ offered, the source said.

Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Nomura and UBS Investment Bank are leading the deal that will be used to reprice an existing term loan down from Libor plus 225 bps with a 0% Libor floor.

Warner Music is a New York-based music company.

Bombardier tweaked, breaks

Bombardier Recreational Products lifted its seven-year covenant-light term loan B to $900 million from $800 million and firmed pricing at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, a market source remarked.

As before, the term loan has a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

During the session, the term loan B freed up for trading and levels were seen par 1/8 bid, par 3/8 offered before moving to par ¼ bid, par 3/8 offered, a trader added.

TD Securities (USA) LLC, BMO Capital Markets, RBC Capital Markets and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt.

Bombardier Recreational is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

L&W modified, frees up

L&W changed the original issue discount on its $450 million seven-year first-lien term loan (B2/B+) to 99.5 from 99, according to a market source.

Pricing on the term loan remained at Libor plus 400 bps with a 0% Libor floor and the loan still has 101 soft call protection for six months.

The company’s $525 million of credit facilities also include a $75 million asset-based revolver.

By late day, the term loan broke for trading and levels were quoted at 99¾ bid, par ¾ offered, another source added.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, RBC Capital Markets and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by KPS Capital Partners LP.

L&W is a New Boston, Mich.-based automotive supplier specializing in hot and cold metal stampings and welded assemblies.

Aramark tops par

Aramark Services’ $1,411,000,000 covenant-light first-lien term loan due March 2024 began trading too, with levels quoted at par 1/8 bid, par ½ offered, a market source said.

Pricing on the term loan is Libor plus 175 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a leverage-based step-down to Libor plus 175 bps and a 0% Libor floor.

Aramark is a Philadelphia-based professional services company that provides food, hospitality and facility management services as well as uniform and work apparel.

SRS hits secondary

SRS Distribution’s $1.33 billion seven-year covenant-light term loan B (B3/B) broke as well, with the debt seen at par bid, according to a market source.

Pricing on the term loan is Libor plus 325 bps with a 25 bps pricing step-down at 0.5 times inside closing net first-lien leverage and a 0% Libor floor. The loan was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1.3 billion, pricing was set at the low end of the Libor plus 325 bps to 350 bps talk and the discount firmed at the tight end of the 99.5 to 99.75 talk.

The company’s $1.73 billion of credit facilities also include a $400 million asset-based revolver.

Bank of America Merrill Lynch, Barclays, UBS Investment Bank, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Nomura and RBC Capital Markets are leading the deal that will be used with $350 million of unsecured notes, which were downsized from $380 million with the recent term loan upsizing, to help fund the buyout of the company by Leonard Green & Partners LP from Berkshire Partners.

In connection with the transaction, Berkshire Partners and members of management will be rolling part of their equity investment in SRS.

SRS Distribution is a McKinney, Texas-based roofing products distributor.

Zekelman repricing

Back in the primary market, Zekelman Industries launched on Friday morning a $909 million senior secured term loan (B1/BB-) due June 2021 at talk of Libor plus 200 bps to 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Wednesday, the source said.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 1% Libor floor.

Zekelman Industries is a Chicago-based manufacturer of industrial steel pipe and tubular products.

Unitymedia on deck

Unitymedia set a lender call for 11 a.m. ET on Monday to launch a $600 million five-year covenant-light term loan B talked at Libor plus 200 bps with a 25 bps step-up after two years, a 0% Libor floor, an original issue discount of 99.75 to 99.875 and 101 soft call protection for six months, a market source said.

Commitments are due at 11 a.m. ET on Thursday, the source added.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to refinance €245 million 5 5/8% senior secured note due 2023 and for general corporate purposes.

Unitymedia is a Germany-based provider of cable television, internet, fixed-line telephony and mobile services.

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