Advanced Disposal, American Casino, Morsco, JDE, Harsco, Safway, Azelis, Cooper break

By Sara Rosenberg

New York, Oct. 28 – Advanced Disposal Services Inc.’s credit facility freed up for trading on Friday, with its term loan B quoted above its original issue discount, and Morsco Inc., American Casino & Entertainment Properties LLC and Jacobs Douwe Egberts (JDE) also hit the secondary market.

Furthermore, Harsco Corp. lowered pricing on its term loan B, added a step-down and revised the original issue discount, and Safway Group Holding LLC firmed the original issue discount on its incremental term loan at the tight side of talk, and then these deal freed up for trading too.

In addition, Azelis Finance SA downsized its U.S. term loan B, upsized its euro term loan B, firmed pricing on the loans at the high end of guidance and extended the call protection, and Cooper-Standard Holdings Inc. added a pricing step-down to its term loan B, and then both of these transactions broke into the secondary as well.

In more happenings, Sirius Computer Solutions Inc. increased the size of its first-lien term loan, set the spread at the low end of guidance and tightened the original issue discount on the incremental piece, AMC Entertainment Holdings Inc. eliminated the Libor floor from its term loans and revised the issue price on its new term loan B, and Asurion LLC upsized its term loan B-5, lowered pricing and set the original issue discount at the tight end of guidance.

And, DTZ (DTZ U.S. Borrower LLC and DTZ AUS Holdco Pty Ltd.) released original issue discount talk on its add-on first-lien term loan, and Constellation Brands Canada Inc. and Zep Inc. joined the near-term new issue calendar.

Advanced Disposal tops OID

Advanced Disposal Services’ credit facility emerged in the secondary on Friday, with the $1.5 billion seven-year covenant-light term loan B seen at 100 1/8 bid, 100½ offered, according to a market source.

The term loan B is priced at Libor plus 275 basis points with a 0.75% Libor floor, and was issued at a discount of 99.75. The debt has 101 soft call protection for six months.

On Thursday, the term loan B was downsized from $1.54 billion because of proceeds raised from the underwriters’ recent decision to exercise their option to purchase additional shares of Advanced Disposal’s common stock at the initial public offering price of $18.00 per share, and the discount was revised from 99.5.

The company’s $1.8 billion credit facility (B1/BB) also includes a $300 million revolver.

Advanced Disposal refinancing

Proceeds from Advanced Disposal’s credit facility will be used with $425 million of senior unsecured notes to refinance an existing term loan B, revolver and 8¼% senior notes due 2020.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, UBS Investment Bank and Macquarie Capital (USA) Inc. are leading the bank debt.

Closing is expected on Nov. 10.

Advanced Disposal is a Ponte Vedra, Fla.-based provider of non-hazardous solid waste services.

Morsco starts trading

Morsco’s credit facility freed to trade as well, with the $300 million seven-year senior secured covenant-light term loan (B3/B) quoted at 98 bid, 99 offered, a trader remarked.

Pricing on the term loan is Libor plus 700 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98. The loan has hard call protection of 102 in year one and 101 in year two.

The company’s $600 million credit facility also includes a $300 million asset-based revolver due Jan. 14, 2020.

During syndication, pricing on the term loan was raised from Libor plus 600 bps, the discount widened from 99, the call protection was sweetened from 101 soft call for one year, the 12-month MFN sunset was eliminated, the incremental free and clear was reduced to $50 million from $75 million and 75% of EBITDA, and the initial excess cash flow sweep was increased to 75% from 50%. Also, the revolver was downsized from $350 million.

Morsco buying Fortiline

Proceeds from Morsco’s credit facility will be used to fund the acquisition of Fortiline Waterworks.

Barclays, Citigroup Global Markets Inc., RBC Capital Markets and Jefferies Finance LLC are leading the debt financing.

Total net leverage is 5.3 times.

Morsco, an Advent International portfolio company, is a Fort Worth, Texas-based distributor of commercial and residential plumbing and HVAC products.

American Casino frees up

American Casino’s $226 million term loan B (BB) due July 2022 began trading too, with levels quoted at 100¼ bid, 101 offered, according to a market source.

Pricing on the term loan B is Libor plus 325 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing $256 million term loan B from Libor plus 375 bps with a 1% Libor floor, and, with the repricing, the company is paying down $30 million of the term loan B debt.

American Casino is a Las Vegas-based owner and operator of gaming and entertainment properties.

Jacobs Douwe breaks

Jacobs Douwe Egberts’ $572.6 million term loan B due July 2022 freed to trade, with levels seen at 100¼ bid, 100½ offered, a trader remarked.

Pricing on the loan is Libor plus 250 bps with a 0.75% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan B was reduced from Libor plus 275 bps and the issue price was changed from 99.875.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and HSBC are leading the deal that will be used to refinance/reprice existing term loan debt.

Jacobs Douwe is a Netherlands-based coffee company.

Harsco flexes lower

Harsco cut pricing on its $550 million seven-year term loan B to Libor plus 500 bps from Libor plus 550 bps, added a step-down to Libor plus 475 bps at net total leverage of less than 2 times and changed the original issue discount to 99 from 98, a market source remarked.

The term loan B still has a 1% Libor floor and 101 soft call protection for one year.

The company’s $950 million senior secured credit facility (Ba1/BB/BB+) also includes a $400 million five-year revolver.

Along with the term loan B pricing revision, the company set the excess cash flow sweep as 50% with step-downs to 25% and 0% at 2 times and 1.5 times senior secured net leverage respectively, increased the revolver size basket to $425 million from $400 million, lifted the non-credit parties debt to $75 million from $50 million, raised the capital lease basket to $35 million from $25 million and increased the asset sale reinvestment carve-out to $150 million from $100 million, the source continued.

Harsco hits secondary

Recommitments for Harsco’s credit facility were due at noon ET on Friday, and with final terms in place, the term loan B broke for trading in the afternoon with levels quoted at 100¼ bid, 101¼ offered, the source added.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Bank of America Merrill Lynch, RBC Capital Markets, US Bank and KeyBanc Capital Markets are leading the deal that will be used to amend and extend an existing credit facility and redeem 5¾% senior notes due 2018.

Closing is expected during the week of Oct. 31.

Harsco is a Camp Hill, Pa.-based diversified engineered products and services company.

Safway sets OID, trades

Safway Group firmed the original issue discount on its fungible $160 million senior secured incremental covenant-light first-lien term B (B3/B+) due Aug. 19, 2023 at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

The incremental term loan is priced at Libor plus 475 bps with a 1% Libor floor, and has 101 soft call protection until August 2017.

By mid-afternoon, the incremental loan broke for trading, with levels quoted at par bid, 100½ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used with an ABL draw to fund the acquisition of SafeWorks and pay related fees and expenses.

Closing is expected on Nov. 7.

Safway is a Waukesha, Wis.-based provider of access, scaffolding, insulation, fireproofing, surface preparation and coatings solutions.

Azelis revised, breaks

Azelis Finance trimmed its U.S. senior secured covenant-light term B due Dec. 17, 2022 to $262,562,500 from $322,562,500 and set pricing at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, according to a market source.

In addition, the company lifted its euro senior secured covenant-light term B due Dec. 17, 2022 to €223,187,660 from €168,227,506 and firmed the spread at Euribor plus 400 bps, the wide end of the Euribor plus 375 bps to 400 bps talk, the source said.

Also, the 101 soft call protection on the term loans was extended to one year from six months.

As before, the term loans have a 1% floor and a par issue price.

By late day, the U.S. term loan B began trading, with levels quoted at par bid, 100½ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used by the Antwerp, Belgium, pure-play specialty chemical distributor to reprice existing term loan B debt due 2022, and is expected to close on Nov. 2.

Cooper tweaked, frees up

Cooper-Standard added a step-down in pricing to its $340 million seven-year covenant-light term B (Ba1/BB+) to Libor plus 250 bps based if corporate ratings are Ba3/BB- or better, a market source said.

Initial pricing on the term loan was unchanged at Libor plus 275 bps. The debt has a 0.75% Libor floor, an original issue discount/extension fee of 25 bps and 101 soft call protection for six months.

After terms finalized, the term loan B hit the secondary market, with levels quoted at 100¼ bid, 100 5/8 offered, another source added.

The company’s $550 million credit facility also includes a $210 million ABL revolver.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Goldman Sachs Bank USA and Barclays are leading the deal that will be used to partially amend and extend an existing term loan B alongside a term loan paydown from $400 million in senior notes.

Closing is expected on Nov. 2.

Cooper-Standard is a Novi, Mich.-based supplier of systems and components for the automotive industry.

Sirius changes emerge

In other news, Sirius Computer upsized its covenant-light first-lien term loan due Oct. 30, 2022 to $515 million from $490 million by increasing the incremental tranche to $75 million from $50 million, according to a market source.

Also, pricing on the term loan finalized at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, and the original issue discount on the incremental was modified to 99.75 from 99.5, the source said, adding that the 1% Libor floor and 101 soft call protection for six months were unchanged.

Commitments were due at 5 p.m. ET on Friday.

Proceeds will be used to refinance/reprice an existing $440 million term loan that is currently priced at Libor plus 500 bps with a 1% Libor floor, and the incremental debt will be used to fund tuck-in acquisitions.

As before, the existing debt for the repricing is offered at par.

Credit Suisse Securities (USA) LLC is leading the deal.

Sirius is a San Antonio-based provider of data center-focused technology integration services.

AMC reworks deal

AMC Entertainment removed the 0.75% Libor floor from its new $500 million senior secured seven-year covenant-light term loan B and repriced its $876 million senior secured covenant-light term loan B due Dec. 15, 2022 and changed the original issue discount on the seven-year loan to 99.75 from 99.5, a market source said.

The term loans are still priced at Libor plus 275 bps, the repriced loan is still offered at par, and there is still 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Friday.

Proceeds from the new term loan, $595 million and £250 million of notes and cash on hand will be used to fund the acquisitions of Odeon & UCI Cinemas Holdings Ltd. and Carmike Cinemas Inc., and the repricing will take the existing 2022 term loan down from Libor plus 325 bps with a 0.75% Libor floor.

The Odeon & UCI acquisition is expected to close in mid-to-late November and the Carmike acquisition is expected to close in mid-December.

AMC lead banks

Citigroup Global Markets Inc., Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the AMC’s term loans (Ba1/BB/BB+).

With the transaction, the company is looking to amend its existing credit agreement to revise the revolver net senior secured leverage covenant to 3.5 times from 3.25 times, change the permitted notes basket to permit new notes to be incurred for the Odeon & UCI and Carmike acquisitions and increase the permitted foreign subsidiary basket.

Also, the amendment would increase the senior leverage test to 3.5 times from 3.25 times under the ratio debt basket, increase the first-lien senior secured leverage ratio to 3 times from 2.25 times under the accordion and increase the fixed amount in the shared general restricted payments and investment basket to $250 million from $200 million.

AMC is a Leawood, Kan.-based movie exhibitor. Odeon & UCI is a London-based theater exhibitor. And, Carmike is a Columbus, Ga.-based motion picture exhibitor.

Asurion modifies loan

Asurion lifted its seven-year covenant-light term loan B-5 (B1/B+) to $1.4 billion from $1 billion, reduced pricing to Libor plus 375 bps from Libor plus 400 bps and finalized the original issue discount at 99.5, the tight end of the 99.25 to 99.5 talk, according to a market source.

The loan still has a 1% Libor floor and 101 soft call protection for six months.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to repay some term loan B-1 borrowings.

Asurion is a Nashville-based provider of technology protection services.

DTZ reveals talk

Also in the primary market, DTZ held its lender call on Friday, launching its $235 million add-on first-lien term loan due Nov. 4, 2021 with original issue discount talk of 99 to 99.5, a market source said.

As previously reported, pricing on the term loan is Libor plus 325 bps with a 1% Libor floor.

Commitments are due on Nov. 4, the source added.

UBS Investment Bank is leading the deal that will be used to refinance an existing second-lien term loan priced at Libor plus 825 bps with a 1% Libor floor.

DTZ, a TPG Capital portfolio company, is a real estate services company.

Constellation on deck

Constellation Brands Canada surfaced with plans to host a lenders presentation at 2:30 p.m. ET on Tuesday to launch a C$409 million first-lien term loan, split between a $260 million tranche and C$66 million tranche, a market source remarked.

Morgan Stanley Senior Funding Inc., Antares Capital LP, BMO Capital Markets and Scotiabank are leading the deal that will be used to fund the roughly C$1.03 billion acquisition of the company by Ontario Teachers’ Pension Plan from Constellation Brands.

Closing is expected before year-end.

Constellation Brands Canada is a Mississauga-based operator of wineries and Wine Rack stores.

Zep joins calendar

Zep scheduled a call for 1 p.m. ET on Monday to release fourth quarter 2016 results and launch a repricing of its $355 million term loan, a source said.

The repriced loan is talked at Libor plus 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, the source continued.

Commitments are due by the end of the day on Wednesday.

Jefferies Finance LLC is leading the deal that will take pricing on the term loan down from Libor plus 450 bps with a 1% Libor floor.

Zep is an Atlanta-based consumable chemical packaged goods company.

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