Waste Industries allocates, trades higher; Mitel tightens; Tekni-Plex sets bank meetings

By Paul A. Harris

Portland, Ore., Sept. 20 – In Wednesday's bank loan market the Waste Industries $890 million seven-year covenant-light first-lien term loan allocated and traded to par ¼ bid, par ¾ offered.

Mitel Networks Corp. tightened spread talk on its $300 million six-year covenant-light term loan B (B1/B+) to Libor plus 375 basis points from earlier talk of 400 bps to 425 bps.

And Tekni-Plex set bank meetings on Monday in the United States, and on Wednesday, Sept. 27 in London for $708 million of loans.

Waste Industries allocates

The Waste Industries (Wrangler Buyer Corp.) $890 million seven-year covenant-light first-lien term loan allocated, a market source said on Wednesday.

The deal is expected to close during the Sept. 25 week.

It came at Libor plus 300 basis points, the low end of revised talk of Libor plus 300 bps to 325 bps and the high end of initial talk of Libor plus 275 bps to 300 bps.

Also, a step-down was added to the term loan to Libor plus 275 bps at 0.5 times inside closing leverage, and the issue price was changed to par from 99.5, the source said.

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

Earlier in syndication, the MFN was revised to 50 bps with an 18-month sunset, applicable to all pari passu incremental facilities, from 75 bps with a six-month sunset and not applicable to facilities under $200 million in size and maturing more than two years after the existing loans.

The company’s $1.09 billion of credit facilities (B1/B) also include a $200 million five-year revolver.

Barclays, Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are the bookrunners on the deal.

Proceeds will be used to help fund the acquisition of the company by HPS Investment Partners LLC and Equity Group Investments from Macquarie Infrastructure Partners.

Other funds for the transaction will come from $305 million in senior notes.

Closing is expected late this month, subject to customary regulatory approvals.

Waste Industries is a Raleigh, N.C.-based provider of non-hazardous solid waste collection, transfer, recycling and disposal services.

Traverse moves up deadline

Traverse Midstream Partners LLC moved up timing on its $1,135,000,000 seven-year first-lien term loan (B1/B+) to 3 p.m. ET on Thursday, according to a market source.

As reported, the deal comes with price talk of Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year and a debt service coverage ratio covenant of 1.4 times, the source said.

However changes are expected to be announced on Thursday, the market source said.

Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the bookrunners on the deal.

Proceeds will be used to fund the construction costs for Rover Pipeline and to refinance existing debt.

Traverse is an Edmond, Okla.-based midstream company that owns a 35% joint venture interest in Rover Pipeline and a 25% joint venture interest in Ohio River System.

DigiCert allocates

The DigiCert Holdings Inc. upsized $1.35 billion seven-year first-lien term loan (S&P: B+/Fitch: BB+) to $1.35 billion from and $500 million eight-year second-lien term loan (S&P: CCC+/Fitch: BB-) allocated on Wednesday, according to a market source.

As reported the first-lien loan was upsized from $900 million, and the second-lien loan was upsized from $300 million.

Pricing on the first-lien term loan was reduced to Libor plus 475 basis points from Libor plus 500 bps, and pricing on the second-lien term loan was cut to Libor plus 800 bps from Libor plus 850 bps, the source said.

Furthermore, the original issue discount on the both the first- and second-lien term loans was tightened to 99.5 from 99.

In addition, the hard call protection on the second-lien term loan was changed to 101 for one year from 102 in year one and 101 in year two, the source continued.

Both term loans still have a 1% Libor floor, and the first-lien term loan still has 101 soft call protection for six months.

Talk on the eliminated term loan B-1 due Dec. 31, 2020 had been Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s now $1.94 billion of senior secured credit facilities, up from $1.59 billion, also include a $90 million revolver.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Jefferies LLC, Macquarie Capital (USA) Inc. and Goldman Sachs Bank USA are the leads on the deal.

Recommitments are due at 5 p.m. ET on Monday with allocations following Tuesday morning.

Proceeds will be used to fund the acquisition of Symantec Corp.’s website security and related PKI solutions business.

The $350 million of additional term loan proceeds being raised through the upsizing will be used to take out a portion of series A stock, the source added.

Closing is expected in the third quarter of fiscal 2018, subject to customary conditions.

DigiCert is a Lehi, Utah-based provider of scalable security solutions.

Hanjin $600 million three-year

Hanjin International Corp. plans to put in place a $600 million three-year senior secured term loan B, according to a market source.

Morgan Stanley is the administrative agent.

The deal comes with a 250 basis point spread to Libor, a 0% Libor floor, OID 99.75.

There is 101 soft call protection for six months, and the loan has a 1% annual amortization rate.

The Los Angeles-based operator of hotels and properties plans to use the proceeds to refinance debt and fund cash on the balance sheet.

International Car Wash accelerates

International Car Wash Group moved up timing on its $450 million seven-year first-lien term loan (B1/B) and $200 million eight-year second-lien term loan (Caa1/CCC+), according to a market source.

Commitments are due at 5 p.m. ET Thursday. The previous deadline was Sept. 26.

Price talk on the first-lien term loan is Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 98.5, the source said.

The first-lien term loan has 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 company’s $725 million of senior secured credit facilities also include a $75 million revolver (B1/B).

Goldman Sachs Bank USA, Jefferies LLC, Barclays and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Roark Capital Group from TDR Capital LLP.

Closing is expected in the fourth quarter.

International Car Wash is a United Kingdom-based car wash operator.

Traeger hikes spread

Traeger Grills (TGP Holdings III LLC) increased the spread on its $295 million seven-year first-lien term loan to Libor plus 500 basis points from 450 bps, according to a market source.

The spread steps down by 25 bps should net leverage fall to 5.75 times or lower.

The loan retains its 1% Libor floor and the original issue discount remains set at 99.

The $295 million first lien loan has a $40 million delayed-draw tranche.

Recommitments were due Wednesday.

The $440 million of credit facilities also includes a $115 million eight-year second-lien term loan talked at Libor plus 850 bps with a 1% Libor floor and a discount of 98.5. The second-lien term loan has call protection of 102 in year one and 101 in year two.

The debt package also includes a $30 million revolver.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Jefferies LLC and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to help fund the buyout of a majority ownership stake in the company by AEA Investors from Trilantic North America. AEA will complete the investment in partnership with Ontario Teachers’ Pension Plan.

Traeger is a Salt Lake City-based designer of outdoor cooking products.

Tekni-Plex bank meetings

Tekni-Plex set bank meetings on Monday in the United States and on Wednesday, Sept. 27 in London for $708 million of loans, according to a market source.

The deal includes a $413 million covenant light seven-year first lien term loan, including a $60 million ABL, and $295 million equivalent euro-denominated covenant-light seven-year first lien term loan.

Credit Suisse is the left bookrunner. Jefferies and BMO are the joint bookrunners.

The loans come with a 101 soft call for six months.

Proceeds will be used to finance the acquisition of the King of Prussia, Pa.-based provider of specialty packaging solutions by Genstar Capital from American Securities.

Mitel cuts spread

Mitel Networks Corp. tightened spread talk on its $300 million six-year covenant-light term loan B (B1/B+) to Libor plus 375 basis points from earlier talk of 400 bps to 425 bps, according to a market source.

The deal retains a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

BMO Capital Markets Corp., Citizens Bank, HSBC Bank and CIBC are the bookrunners on the deal.

Commitments were due on Wednesday.

Proceeds will be used with cash on hand and revolving credit facility borrowings to fund the acquisition of ShoreTel for $7.50 per share, or a total equity value of about $530 million and a total enterprise value of around $430 million.

Closing is expected in the third quarter, subject to customary conditions.

Mitel is an Ottawa-based provider of communications software solutions. ShoreTel is a Sunnyvale, Calif.-based provider of communication solutions.

American Addiction accelerates

American Addiction Centers (AAC Holdings Inc.) moved up timing on its fungible $65 million incremental first-lien term loan due June 30, 2023 (B3/B-), according to a market source.

New timing has commitments due at noon ET on Friday, moved up from a previous commitment of Sept. 26.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and BMO Capital Markets are the leads on the deal.

Pricing on the deal remains Libor plus 675 basis points with a 1% Libor floor, in line with existing term loan pricing, and the new debt is talked with an original issue discount of 98.5, the source said.

The incremental term loan has a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Call protection on the incremental loan matches existing term loan call protection of non-callable until June 2018, then at 102 for a year and 101 for a year.

Proceeds will be used to help fund the acquisition of AdCare Inc. for $85 million.

Other funds for the transaction will come from cash on hand, seller financing and $5 million of restricted shares of American Addiction common stock.

Closing is expected in the first half of 2018, subject to regulatory review and customary conditions.

American Addiction Centers is a Brentwood, Tenn.-based provider of inpatient and outpatient substance abuse treatment services. AdCare is a provider of addiction treatment in New England.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.