Salient, Ilpea break; Amaya, Interior Logic, Ranpak update deals; DuBois discloses guidance

By Sara Rosenberg

New York, Feb. 27 – Deals from Salient CRGT Inc. and Ilpea Industries Inc. emerged in the secondary market on Monday, and Mallinckrodt International Finance SA’s term loan B softened a little from its recent break levels.

Switching to the primary market, Amaya Holdings BV reduced the size of its U.S. term loan B as its euro term loan B amount was increased and tweaked its amendment request, Interior Logic Group widened the spread and original issue discount on its term loan B while also sweetening call protection and amortization, and Ranpak Corp. finalized the issue price on its add-on first-lien term loan at the tight end of revised talk.

Additionally, DuBois Chemicals came out with price talk on its term loans with launch, and Lumileds (Bright Bidco B.V.), Macom Technology Solutions Inc., Cyxtera Technologies Inc., Foresight Energy LLC and LPL Holdings Inc. joined this week’s primary calendar.

Salient tops OID

Salient CRGT’s credit facility began trading on Monday, with the $420 million five-year first-lien term loan quoted at 98 1/8 bid, 98 5/8 offered, according to a market source.

Pricing on the term loan is Libor plus 575 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 soft call protection for 24 months.

During syndication, pricing on the term loan was increased from Libor plus 550 bps, the discount was revised from 99 and the call protection was extended from six months.

The company’s $455 million credit facility (B3/B) also includes a $35 million revolver.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Regions Bank and RBC Capital Markets are leading the deal that will be used to fund the acquisition of Information Innovators Inc. (Triple-i) and to refinance existing debt.

Closing on the acquisition is expected this quarter.

Salient CRGT is a Fairfax, Va.-based provider of agile based software systems development for federal government agencies. Information Innovators is a Springfield, Va.-based provider of solutions and services to IT and health-focused clients across the federal government.

Ilpea frees up

Ilpea Industries’ credit facility also hit the secondary market, with the $225 million six-year U.S. term loan B seen at 99 bid, 99½ offered, a trader said.

Pricing on the term loan B is Libor plus 550 bps with a 1% Libor floor, and it was sold at an original issue discount of 98.5. The debt has 101 hard call protection for one year.

During syndication, the U.S. term loan was upsized from $200 million, pricing was increased from Libor plus 450 bps, the discount widened from 99, the maturity was shortened from seven years, amortization was sweetened to 2.5% per annum from 1%, the excess cash flow sweep was changed to 75%, and the company agreed to host quarterly calls for investors.

The company’s credit facility also includes a $25 million revolver and a €24 million term loan B.

PNC Bank and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt and redeem preferred stock.

Ilpea is a Scottsburg, Ind.-based producer of custom plastic extrusions for the appliance and construction industries.

Mallinckrodt dips

Mallinckrodt’s $1,862,000,000 term loan B (Ba1/BB+) due Sept. 24, 2024 was quoted at par 1/8 bid, par 3/8 offered, down from the par ¼ bid, par 5/8 offered levels that were seen after the debt freed up for trading on Friday, a trader remarked.

The term loan is priced at Libor plus 275 bps with a 0.75% Libor floor and was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

During syndication, the spread on the loan firmed at the low end of the Libor plus 275 bps to 300 bps talk, and the discount was modified from 99.75.

Deutsche Bank Securities Inc. is leading the deal that will be used to amend and extend an existing term loan B due March 19, 2021 that is priced at Libor plus 250 bps with a 0.75% Libor floor and an existing term loan B-1 due March 19, 2021 that is priced at Libor plus 275 bps with a 0.75% Libor floor.

Mallinckrodt is a U.K.-based specialty pharmaceutical company.

Amaya retranches

Moving to the primary market, Amaya Holdings trimmed its U.S. covenant-light term loan B due August 2021 to about $1.92 billion from $2,021,000,000 and lifted its euro covenant-light term loan B due August 2021 to about €386 million from €286 million, according to a market source.

As before, the U.S. term loan is priced at Libor plus 350 bps with a 1% Libor floor and a par issue price, the euro loan is priced at Euribor plus 375 bps with no floor and a par issue price, and both tranches have 101 soft call protection for six months.

Deutsche Bank Securities Inc., Barclays and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice an existing U.S. term loan down from Libor plus 400 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 425 bps with a 1% floor.

Amaya revises amendment

Along with the repricings, Amaya is looking to amend its credit agreement, and that amendment was changed to add a new provision that will tighten the permitted holders definition in the event of a change of control. The company will report that the full amount of the 2016 excess cash flow payment will be used to pay down the deferred payment by May 15, the source said.

The amendment is still seeking a waiver of the 2016 and 2017 excess cash flow sweep payments and offering lenders a 15 bps amendment fee.

All previous signature pages were counted as valid unless otherwise instructed by noon ET on Monday.

Allocations are expected on Tuesday, the source added.

Amaya is a Pointe-Claire, Quebec-based poker operator and public online real money gaming company.

Interior Logic reworked

Interior Logic Group raised pricing on its $255 million seven-year covenant-light term loan B (B3/B) to Libor plus 600 bps from Libor plus 450 bps, changed the original issue discount to 97 from 99, increased the call protection to a hard call of 102 in year one and 101 in year two from a 101 soft call for one year, and lifted amortization to 5% per annum from 1% per annum, a source remarked.

The term loan still has a 1% Libor floor.

Recommitments were due at 5 p.m. ET on Monday, the source added.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company by Platinum Equity.

Interior Logic is a provider of interior finish products to builders and their customers.

Ranpak firms price

Ranpak set the issue price on its fungible $45 million add-on first-lien term loan at par, the tight end of revised talk of 99.75 to par and tight of initial talk of 99.5, according to a market source.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor, after flexing last week from talk of Libor plus 275 bps to 300 bps.

With the flex, the company pulled the request to reprice its existing roughly $214 million U.S. first-lien term loan down from Libor plus 325 bps with a 1% Libor floor and canceled plans to refresh the 101 soft call protection for six months. The repricing had been talked at Libor plus 275 bps to 300 bps with a 1% Libor floor and a par issue price.

Macquarie Capital (USA) Inc. is leading the deal that will be used to repay a second-lien term loan.

Allocations went out on Monday, the source added.

Ranpak is a Concord Township, Ohio-based manufacturer of paper-based systems for protective packaging needs.

DuBois releases talk

DuBois Chemicals held its bank meeting on Monday afternoon, and with the event price talk on its term loans was announced, a market source remarked.

The $300 million seven-year first-lien term loan is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the $75 million seven-year delayed-draw first-lien term loan is talked with a 1% undrawn fee and has 12-month availability, and the $130 million eight-year second-lien term loan is talked at Libor plus 800 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source continued.

The company’s $555 million credit facility also includes a $50 million six-year revolver.

Commitments are due on March 10.

Antares Capital, BMO Capital Markets, Deutsche Bank Securities Inc. and Bank of Ireland are joint lead arrangers on the first-lien debt, and Antares is the administrative agent on the deal that will be used to help fund the buyout of the company by funds managed by the Jordan Co. LP.

DuBois is a Sharonville, Ohio-based provider of customized chemical solutions and services.

Lumileds on deck

Lumileds set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $1.15 billion seven-year covenant-light first-lien term loan, according to a market source, who said that one-on-one’s will be available Wednesday and Thursday post the bank meeting.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., ING Capital Markets and Rabobank are leading the deal that will be used to help fund the acquisition of an 80.1% interest in the company by Apollo Global Management LLC from Royal Philips, who will retain the remaining 19.9% interest.

The transaction values Lumileds at an enterprise value of about $2 billion, including debt and debt-like items. Royal Philips expects to receive cash proceeds, before tax and transaction-related costs, of around $1.5 billion and participating preferred equity.

Closing is expected in the first half of this year, subject to customary conditions and regulatory approvals.

Lumileds is a supplier of LED components and automotive lighting.

Macom joins calendar

Macom Technology Solutions scheduled a lender call for 1 p.m. ET on Tuesday to launch a $590 million first-lien term loan due May 2021 that is talked at Libor plus 300 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Citizens Bank are leading the deal.

Proceeds will be used to reprice an existing term loan down from Libor plus 375 bps with a 0.75% Libor floor, the source said.

Macom is a Lowell, Mass.-based supplier of high-performance analog RF, microwave, millimeterwave and photonic semiconductor products.

Cyxtera readies deal

Cyxtera Technologies emerged with plans to hold a bank meeting at 10:30 a.m. ET in New York on Tuesday to launch a new credit facility, a market source remarked.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, HSBC Securities (USA) Inc., Macquarie Capital (USA) Inc. and Citizens are leading the deal that will be used to help fund the $2.15 billion acquisition of 57 data centers from CenturyLink Inc. by a joint venture being formed by BC Partners and Medina Capital, and combination of the data centers with Medina Capital’s security and data analytics portfolio.

Also, CenturyLink will receive a minority stake to be valued at $150 million.

Closing on the data centers acquisition is expected this quarter, subject to regulatory approvals and other customary conditions.

Cyxtera is a secure infrastructure company.

Foresight coming soon

Foresight Energy will hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a first-lien senior secured term loan, a market source said.

Goldman Sachs Bank USA and Huntington are leading the deal that will be used to refinance existing debt.

Foresight Energy is a St. Louis-based producer and marketer of thermal coal.

LPL sets launch

LPL Holdings scheduled a lender call for Tuesday to launch its previously announced $2.2 billion credit facility (Ba2), according to a market source.

The facility consists of a $1.7 billion term loan B due 2024 and a $500 million revolver.

J.P. Morgan Securities LLC is the left lead on the deal that will be used with $500 million in senior notes due 2025 to refinance existing bank debt.

LPL Holdings is a Boston-based investment company.

Daseke closes

In other news, the acquisition of Daseke Inc. by Hennessy Capital Acquisition Corp. II has been completed, a news release said.

To help fund the transaction, Daseke got a new $70 million asset-based revolver and a $350 million seven-year first-lien term loan (B1/BB-).

Pricing on the term loan, which includes a $100 million delayed-draw component, is Libor plus 550 bps with a 1% Libor floor, and it was sold at a discount of 99. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan firmed at the low end of the Libor plus 550 bps to 575 bps talk and the discount was tightened from 98.5.

Credit Suisse Securities (USA) LLC, UBS Investment Bank and PNC Capital Markets are the leads on the term loan. PNC is the lead on the revolver.

Daseke is an Addison, Texas-based owner of open deck equipment and a transportation and logistics solutions company in the open deck trucking market.

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