Edelman, Office, Western Digital, TerraForm, Lyons, Ineos, VC GB, Accuride, Unifrax break

By Sara Rosenberg

New York, Nov. 3 – The secondary market on Friday saw a number of deals free up for trading, including Edelman Financial Center LLC, Office Depot Inc., Western Digital Corp., TerraForm Power Operating LLC, Lyons Magnus Inc., Ineos Styrolution Group GmbH and VC GB Holdings Inc.

Also, Accuride Corp. lowered pricing on its add-on term loan and repricing transaction, tightened the issue price on the add-on tranche and extended the call protection, and Unifrax raised the size of its add-on first-lien term loan, set pricing on its second-lien term loan at the low end of talk and revised the issue prices on both pieces of debt, and then both of these deals broke for trading as well.

In more happenings, Acrisure LLC downsized its term loan, cut pricing and sweetened the call premium, Sage Automotive Interiors Inc. trimmed the spread on its incremental first-lien term loan and Azelis Finance SA finalized pricing on its U.S. and euro term loans at the low side of guidance.

Furthermore, Packers Sanitation Services Inc., ExGen Renewables IV LLC, Excelitas Technologies Corp. and Summit Materials LLC joined the near-term calendar.

Edelman frees up

Edelman Financial Center’s credit facilities made their way into the secondary market on Friday, with the $480 million seven-year covenant-light term loan B quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the term loan B is Libor plus 425 basis points with a 25 bps step-down for an initial public offering and a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

On Thursday, the term loan B was upsized from $460 million, the spread was lowered from talk in the range of Libor plus 450 bps to 475 bps and the discount tightened from 99.5.

The company’s $510 million of senior secured credit facilities also include a $30 million five-year revolver.

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, to fund a distribution to equity holders, which was increased with the term loan upsizing, and to pay related fees and expenses.

Closing is expected on Thursday.

Edelman Financial is an independent financial planning firm.

Office Depot tops OID

Office Depot’s $750 million five-year senior secured term loan B (B1) freed to trade, with levels seen at 98 bid, 99 offered, a market source said.

Pricing on the term loan is Libor plus 700 bps with a 1% Libor floor, and it was sold at an original issue discount of 97. The debt has hard call protection of 102 in year one and 101 in year two.

On Thursday, pricing on the loan was increased from talk in the range of Libor plus 500 bps to 525 bps, the discount widened from 98.5, the call protection was changed from a 101 soft call for six months, amortization was sweetened to 10% per annum from 5% and the maturity was shortened from six years.

Also on Thursday, the company eliminated the MFN sunset, the incremental starter basket and all grower baskets, changed the excess cash flow sweep to 75% at greater than 0.8 times secured net leverage with step-downs based on leverage, reduced the general restricted payments basket to $10 million from $150 million and the general investment basket to $50 million from $150 million, added a springing minimum liquidity covenant of $400 million, springing at 1.5 times gross secured leverage, and expanded the collateral to include the Office Depot headquarters.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to fund the acquisition of CompuCom.

Office Depot is a Boca Raton, Fla.-based provider of office supplies and business products and services.

Western Digital breaks

Western Digital’s $2,963,000,000 term loan B emerged in the secondary market at par ¼ bid, par ½ offered after the spread on the loan firmed at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, according to a trader.

The loan has a 0% Libor floor and 101 soft call protection for six months and was issued at par.

Bank of America Merrill Lynch, Mizuho and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with a 0.75% Libor floor.

Western Digital is an Irvine, Calif.-based developer and manufacturer of storage solutions that enable people to create, manage, experience and preserve digital content.

TerraForm levels surface

TerraForm’s $350 million five-year covenant-light term loan B also broke, with levels quoted at par bid, par ¾ offered, a trader remarked.

The term loan is priced at Libor plus 275 bps with a 1% Libor floor and was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

On Thursday, the term loan was upsized from $300 million, pricing was flexed down from Libor plus 325 bps and the discount was changed from 99.5.

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 to repay a non-recourse portfolio term loan entered into in December 2015.

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

Lyons hits secondary

Lyons Magnus’ credit facilities began trading too, with the $195 million seven-year covenant-light first-lien term loan B quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan B is Libor plus 425 bps with a 25 bps step-down after six months from the close of the transaction if corporate family ratings are B2/B or higher or net leverage is half a turn inside closing net leverage. The loan has a 1% Libor floor and 101 soft call protection for six months and was sold at an original issue discount of 99.5.

On Thursday, the term loan B was upsized from $190 million, pricing was cut from Libor plus 450 bps, the step-down was added, the discount firmed at the tight end of the 99 to 99.5 talk and the MFN sunset was removed.

The company’s $240 million of credit facilities (B1/B-) also include a $35 million undrawn revolver that was upsized from $30 million during syndication.

RBC Capital Markets and Bank of Ireland are leading the deal that will be used to help fund the buyout of the company by Paine Schwartz Partners.

Lyons Magnus is a Fresno, Calif.-based food and beverage manufacturing company.

Ineos Styrolution frees up

Ineos Styrolution’s $329 million term loan B due 2024 hit the secondary market as well, with levels seen at par 1/8 bid, par ½ offered, a trader said.

Pricing on the loan is Libor plus 200 bps with a 0% Libor floor and it was issued at par.

The company is also getting a €447 million term loan B due 2024 priced at Euribor plus 200 bps with a 0.5% floor and par issue price.

During syndication, the U.S. term loan was downsized from $417 million, the spread was set at the low end of the Libor plus 200 bps to 225 bps talk and the issue price firmed at the tight end of the 99.75 to par talk. Additionally, the euro term loan was upsized from €372 million, the floor finalized at the low end of the 0.5% to 0.75% talk and the issue price was set at the tight end of the 99.75 to par talk.

Bank of America Merrill Lynch is the left lead on the U.S. loan and Credit Suisse is the left lead on the euro loan.

Proceeds will be used to refinance existing term loans.

Ineos Styrolution is a Frankfurt, Germany-based styrenics supplier with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties.

VC GB begins trading

VC GB Holdings’ $507,550,000 covenant-light first-lien term loan (B1/B) due February 2024 freed to trade as well, with the debt seen at par 3/8 bid, a market source said.

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

During syndication, the term loan was upsized by $10 million.

Deutsche Bank Securities Inc. is leading on the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor, and due to the recent upsizing, to pay down some second-lien term loan borrowings.

VC GB is a decorative lighting company.

Accuride revised, breaks

Accuride cut the spread on its fungible $90 million add-on term loan B (B) due Nov. 18, 2023 and repricing of its existing $273 million term loan B (B) due Nov. 18, 2023 to Libor plus 525 bps from Libor plus 550 bps, revised the issue price on the add-on term loan B to par from talk in the range of 99.5 to 99.75, and extended the 101 soft call protection on the debt to one year from six months, according to a market source.

As before, the term debt has a 1% Libor floor and the repricing is offered at par.

Commitments were due at 1 p.m. ET on Friday and the debt began trading later in the day at 101 bid, 102 offered, a trader added.

RBC Capital Markets is leading the deal.

The incremental loan will be used to fund an acquisition, and the repricing will take the existing term loan down from Libor plus 700 bps with a 1% Libor floor.

Accuride is an Evansville, Ind.-based supplier of components to the commercial vehicle industries.

Unifrax reworked

Unifrax upsized its fungible add-on U.S. first-lien term loan (B2/B) to $80 million from $57 million and changed the issue price to par from 99.75, according to a market source.

As before, the add-on term loan and repricing of the company’s existing $458,850,000 first-lien term loan (B2/B) is Libor plus 350 bps with a 1% Libor floor, pricing on the repricing of a €186 million first-lien term loan (B2/B) is Euribor plus 375 bps with a 0% floor, all of the first-lien debt is still getting 101 soft call protection for six months, and the repricings were offered with a 10 bps amendment fee.

Regarding the company’s $100 million second-lien term loan (Caa1/B-), the spread was set at Libor plus 750 bps, the low end of the Libor plus 750 bps to 775 bps talk, and the discount was modified to 99.5 from 99, the source said. This tranche still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

Unifrax tops issue price

With terms finalized, Unifrax’s debt started trading, and the add-on and repriced U.S. first-lien term loan were quoted at par ¾ bid, 101½ offered, another source added.

Goldman Sachs Bank USA, KeyBanc Capital Markets and ING are leading the deal.

The add-on term loan and second-lien term loan will be used to fund a dividend recapitalization, the U.S. first-lien term loan repricing will take the existing term loan down from Libor plus 375 bps with a 1% Libor floor and the euro first-lien term loan repricing will take the existing term loan down from Euribor plus 400 bps with a 0% floor.

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.

Acrisure modifies loan

Back in the primary market, Acrisure reduced its first-lien term loan to $1.97 billion from $2.17 billion, cut pricing to Libor plus 425 bps from talk in the range of Libor plus 450 bps to 475 bps and extended the 101 soft call protection to one year from six months, according to a market source.

The $125 million in add-on term loan debt being raised will help fund an acquisition and the remainder will reprice an existing term loan from Libor plus 500 bps with a 1% Libor floor.

The term loan still has a 1% Libor floor and an original issue discount of 99.75 on the add-on amount.

Commitments were due at 2 p.m. ET on Friday, the source said.

J.P. Morgan Securities LLC is leading the deal.

The company is also issuing $925 million in bonds and that transaction was upsized from $725 million with the term loan downsizing, the source added.

Acrisure is a Caledonia, Mich.-based insurance brokerage.

Sage cuts pricing

Sage Automotive lowered pricing on its fungible $85 million incremental first-lien term loan (B) due November 2022 to Libor plus 500 bps from talk in the range of Libor plus 525 bps to 550 bps, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months intact, a market source said.

With the flex, pricing on the incremental term loan matches existing first-lien term loan pricing.

Recommitments were due at noon ET on Friday, the source added.

UBS Investment Bank is leading the deal that will be used to fund a dividend.

Clearlake Capital Group is the sponsor.

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

Azelis updates deal

Azelis firmed pricing on its $259.9 million covenant-light first-lien term loan due December 2022 at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and on its €221 million covenant-light first-lien term loan due December 2022 at Euribor plus 350 bps, the tight end of the Euribor plus 350 bps to 375 bps talk, according to a market source.

As before, the U.S. first-lien term loan has a 1% Libor floor, the euro term loan has a 0% floor and both tranches have a par issue price.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing U.S. term loan from Libor plus 425 bps and an existing euro term loan from Euribor plus 400 bps.

Azelis is an Antwerp, Belgium, pure-play specialty chemical distributor.

ExGen readies loan

ExGen Renewables set a lenders’ presentation for 1:30 p.m. ET on Tuesday to launch a $750 million senior secured term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to make a distribution to Exelon Corp., fund debt service reserve and liquidity accounts and pay related transaction fees and expenses.

ExGen Renewables, an indirect wholly-owned subsidiary of Exelon, indirectly owns a material interest in 33 operating renewable generation projects located within the U.S. with a total capacity of about 1,791 MW.

Packers joins calendar

Packers Sanitation Services emerged with plans to hold a bank meeting on Tuesday to launch $625 million of credit facilities, according to a market source.

The facilities consist of a $50 million revolver and a $575 million seven-year first-lien term loan that includes 101 soft call protection for six months, the source said.

Jefferies LLC and Nomura are leading the deal, which will be used with $280 million of privately-placed senior unsecured notes to recapitalize the structure of the company and fund a distribution to shareholders.

Packers Sanitation is a Kieler, Wis.-based provider of mission-critical outsources cleaning and sanitation services to the food processing industry.

Excelitas on deck

Excelitas Technologies Corp. will hold a bank meeting in New York on Monday and a bank meeting in London on Tuesday to launch a $505 million seven-year first-lien term loan, a €250 million seven-year first-lien term loan and a $260 million eight-year second-lien term loan, a market source remarked.

The first-lien term loans have 101 soft call protection for six months and the second-lien term loan has hard call protection of 102 in year one and 101 in year two, the source added.

Commitments are due on Nov. 17.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to help fund the buyout of the company by AEA Investors from Veritas Capital.

Closing is expected this quarter.

Excelitas is a Waltham, Mass.-based optoelectronics provider to military and defense customers and commercial Original Equipment Manufacturers.

Summit plans call

Summit Materials scheduled a lender call for 3:30 p.m. ET on Monday to launch a loan deal, according to a market source.

Bank of America Merrill Lynch is leading the transaction.

Summit Materials is a Denver-based construction materials company.

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