Peabody Energy, Clarion Events, PolyOne, Atlantic Power free up; Transplace revisions emerge

By Sara Rosenberg

New York, April 9 – Peabody Energy Corp. set the spread on its term loan B at the wide end of guidance and Clarion Events (Comet Bidco Ltd.) modified the original issue discount on its incremental term loan B, and then both of these deals freed to trade, and loans from PolyOne Corp. and Atlantic Power Corp. emerged in the secondary market too.

In more happenings, Transplace Holdings Inc. reduced the size of its add-on first-lien term loan, lifted pricing on the debt as well as on the repricing of its existing first-lien term loan and sweetened the call protection, and U.S. Silica Holdings Inc. and Mastronardi Produce released price talk with launch.

Also, Airxcel Inc. (AirX Holdings Inc.), Ferro Corp., Ensono LP, H.B. Fuller Co., NAI Entertainment Holdings LLC, ThoughtWorks Inc., ProAmpac and Apergy Corp. joined this week’s primary calendar.

Peabody firms, trades

Peabody Energy finalized pricing on its $400 million senior secured first-lien term loan (Ba3/BB) due March 2025 at Libor plus 275 basis points, the high end of the Libor plus 250 bps to 275 bps talk, according to a market source.

As before, the term loan has a 0% Libor floor, 101 soft call protection for six months and an amendment fee of 12.5 bps.

After terms firmed up, the loan broke for trading and levels were quoted at par ¼ bid, 101 offered, a trader added.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and BMO Capital Markets are leading the deal that will be used to reprice an existing term loan B down from Libor plus 350 bps with a 1% Libor floor and extend the maturity by three years from March 2022.

With this transaction, the company is paying down the existing term loan B to $400 million from $446 million and removing the capital expenditures covenant from the credit agreement.

Closing is expected on Wednesday.

Peabody is a St. Louis-based private sector coal company.

Clarion updated, breaks

Clarion Events modified the original issue discount on its fungible $230 million incremental covenant-light term loan B (B2/B-) due October 2024 to 98 from the 99 area, a market source said.

The loan is still priced at Libor plus 500 bps with a 1% Libor floor and has 101 soft call protection through September.

Once terms finalized, the incremental loan surfaced in the secondary market and levels were quoted at 98 bid, 98½ offered, another source added.

HSBC Securities (USA) Inc., Barclays, Natixis, Societe Generale and RBS are leading the deal that will be used to fund the acquisition of PennWell Group. RBS is the agent.

Blackstone is the sponsor.

Clarion is a London-based pure-play events organizers.

PolyOne hits secondary

PolyOne’s $635 million term loan freed up for trading, with levels seen at par ½ bid, 101 offered, according to a market source.

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.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor. Citigroup Global Markets Inc. is the administrative agent.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials, services and solutions.

Atlantic Power frees up

Atlantic Power’s $510 million senior secured first-lien term loan (Ba2/BB-) due April 2023 began trading too, with levels quoted at par ¼ bid, 101 offered, a trader remarked.

Pricing on the term loan is Libor of 300 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 term loan down from Libor plus 350 bps with a 1% Libor floor.

Closing is expected on April 19.

Atlantic Power is a Dedham, Mass.-based owner, developer and operator of a diversified fleet of 22 power generation projects totaling 1,440 MW of net generating capacity across nine states in the United States and two Canadian provinces.

Transplace tweaks deal

Back in the primary market, Transplace Holdings cut its fungible add-on senior secured first-lien term loan due October 2024 to $10 million from $25 million, raised pricing on the add-on and on the repricing of its existing $400 million senior secured first-lien term loan due October 2024 to Libor plus 375 bps from Libor plus 350 bps, and extended the 101 soft call protection to one year from six months, a market source remarked.

The term loan debt still has a 1% Libor floor, an original issue discount on the add-on loan of 99.75 and a par issue price on the repricing.

Recommitments are due at 10 a.m. ET on Tuesday, the source added.

Goldman Sachs Bank USA is leading the deal.

The add-on term loan will be used to pay down some second-lien borrowings, and the repricing will take the existing first-lien term loan down from Libor plus 425 bps with a 1% Libor floor.

Transplace is a Frisco, Texas-based provider of highly configurable transportation management solutions, with a complementary suite of specialized third-party logistics services.

U.S. Silica guidance

U.S. Silica held its bank meeting on Monday afternoon, launching its $1.28 billion seven-year term loan B at talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $1.38 billion of credit facilities (B1/B+) also include a $100 million revolver.

Commitments are due on April 23, the source said.

BNP Paribas Securities Corp. and Barclays are leading the deal that will be used to fund the acquisition of EP Minerals LLC from Golden Gate Capital for $750 million in cash and to refinance existing debt.

Pro forma net leverage is 2.4 times.

Closing is expected in the second quarter.

U.S. Silica is a Frederick, Md.-based producer of commercial silica used in the oil and gas industry, and in a wide range of industrial applications. EP Minerals is a Reno, Nev.-based producer of engineered materials derived from industrial minerals.

Mastronardi reveals talk

Mastronardi Produce came out with talk of Libor plus 350 bps to 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its seven-year covenant-light term loan B that launched with a morning bank meeting, a market source said.

Commitments are due at noon ET on April 18, the source added.

Bank of America Merrill Lynch, BMO Capital Markets and Rabobank are leading the deal.

Proceeds from the new senior secured credit facilities will be used to refinance the company’s existing cash flow revolver, term loan A and other debt.

Mastronardi is a grower and distributor of greenhouse-grown produce to retailers.

Airxcel coming soon

Airxcel scheduled a bank meeting for 10:30 a.m. ET on Tuesday to launch $540 million of credit facilities, according to a market source.

The facilities consist of a $60 million five-year ABL revolver, a $360 million seven-year senior secured first-lien term loan with 101 soft call protection for six months, and a $120 million eight-year senior secured second-lien term loan with hard call protection of 102 in year one and 101 in year two, the source said.

Jefferies LLC and Morgan Stanley are leading the deal. Jefferies is left on the first-lien and Morgan Stanley is left on the second-lien.

The credit facilities will be used to help fund the buyout of the company by L Catterton from One Rock Capital Partners LLC.

Airxcel is a producer and distributor of heating, ventilating, air conditioning, appliance and a variety of composite and soft good products serving specialty markets.

Ferro sets call

Ferro surfaced with plans to hold a lender call at 1 p.m. ET on Tuesday to launch $820 million in term loans, a market source said.

The debt consists of a $355 million covenant-light term loan B-1 due February 2024, a $235 million covenant-light term loan B-2 due February 2024 and a $230 million covenant-light term loan B-3 due February 2024, all talked at Libor plus 225 bps with a 0% Libor floor and 101 soft call protection for six months, the source said.

The term loan B-1 is being offered at par. Original issue discount talk on the term loan B-2 and term loan B-3 has not yet been announced.

Commitments are due on April 19, the source added.

Deutsche Bank Securities Inc. and PNC Bank are leading the deal that will be used to reprice an existing term loan B-1 down from Libor plus 250 bps with a 0.75% Libor floor, refinance the existing euro term loan and add cash to the balance sheet.

Ferro is a Mayfield Heights, Ohio-based functional coatings and color solutions provider that offers a portfolio of technology-based performance materials.

Ensono plans presentation

Ensono scheduled a lender presentation for 11 a.m. ET on Thursday to launch $643 million of senior secured credit facilities, according to a market source.

The facilities consist of a $60 million revolver, a $460 million first-lien term loan and a $123 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc., Barclays, RBC Capital Markets and TD Securities (USA) LLC are leading the deal that will be used to fund the acquisition of Wipro Ltd.’s hosted data center services business for $405 million.

Closing is expected in the quarter ending June, subject to customary conditions and regulatory approvals.

Ensono is a Chicago-based hybrid IT services provider.

H.B. Fuller repricing

H.B. Fuller set a lender call for 9:30 a.m. ET on Tuesday to launch a repricing of its existing $2,139,250,000 senior secured term loan B, a market source said.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the deal.

H.B. Fuller is a St. Paul, Minn.-based industrial adhesives, sealants, coatings and specialty materials company.

NAI readies loan

NAI Entertainment will hold a lender meeting and call at 10:30 a.m. ET on Tuesday to launch a $300 million seven-year covenant-light term loan B (B1/BB) that includes 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on April 24, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to refinance $300 million of senior secured notes due 2018.

NAI is a motion picture company, with a diversified portfolio of theatre and other real estate assets in the U.S., U.K., Brazil and Argentina as well as equity interests in Viacom Inc. and CBS Corp.

ThoughtWorks on deck

ThoughtWorks set a lender call for 11 a.m. ET on Tuesday to launch a $70 million incremental first-lien term loan due Oct. 12, 2024 and a repricing of its existing $200 million first-lien term loan due Oct. 12, 2024, according to a market source.

The debt is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor and 101 soft call protection for six months, the source said.

Also, the incremental loan, of which $40 million will be funded and $30 million is delayed-draw, is talked with an original issue discount of 99.5 and the repricing is offered at par.

The delayed-draw tranche has a ticking fee of half the spread from days 61 to 90, 75% of the spread from days 91 to 120 and the full spread thereafter.

Commitments are due at 5 p.m. ET on April 18, the source added.

Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc. and U.S. Bank are leading the deal.

The incremental loan will be used to fund retention payments and the repricing will take the existing term loan down from Libor plus 450 bps with a 1% Libor floor.

ThoughtWorks is a Chicago-based software development and digital transformation consulting company.

ProAmpac joins calendar

ProAmpac scheduled a lender call for Wednesday to launch a $225 million incremental term loan, a market source said.

Antares Capital and RBC Capital Markets are leading the deal that will be used to make two near-term acquisitions.

ProAmpac is a Cincinnati-based flexible packaging manufacturer.

Apergy schedules meeting

Apergy will hold a bank meeting at 11 a.m. ET on Tuesday to launch $615 million of credit facilities (Ba1/BB), a market source remarked.

The facilities consist of a $250 million revolver and a $365 million term loan B, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the company’s spin-off from Dover Corp.

Commitments are due on April 20, the source added.

Apergy is a The Woodlands, Texas-based provider of highly engineered technologies that help companies drill for and produce oil and gas efficiently and safely.

Adtalem wraps at terms

In other news, Adtalem Global Education Inc. completed syndication of its $300 million seven-year covenant-light term loan B at talk of Libor plus 300 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

The company’s $600 million of credit facilities (Ba3/BB+) also include a $300 million revolver.

Bank of America Merrill Lynch, BMO Capital Markets, Northern Trust and Fifth Third are leading the deal that will be used to refinance existing revolving credit facility borrowings and fund cash to the balance sheet for general corporate purposes.

Adtalem is a Chicago-based provider of educational services with a focus on Medical & Healthcare, Professional Education, and Technology & Business.

MKS allocates

MKS Instruments Inc. allocated its $348,463,688 first-lien term loan B due April 29, 2023 that is priced at Libor plus 175 bps with a 0.75% Libor floor and was issued at par, a market source remarked.

The term loan has 101 soft call protection for six months.

Barclays is leading the deal that will be used to reprice an existing term loan B.

Closing is expected on Wednesday.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes.

Tailored Brands closes

Tailored Brands Inc. closed on its $900 million seven-year covenant-light term B (Ba3/BB-) priced at Libor plus 350 bps with a 1% Libor floor and sold at an original issue discount of 99.5, according to a news release. The debt has 101 soft call for six months.

During syndication, the term loan B was upsized from $600 million as a proposed $300 million fixed-rate term loan due 2025 was eliminated from the transaction, and pricing firmed at the high end of the Libor plus 325 bps to 350 bps.

The fixed-rate loan had been talked at 6% to 6¼% with a discount of 99.5.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC led the deal that was used with cash on hand to refinance a $593.4 million term loan priced at Libor plus 350 bps and a $400 million fixed-rate term loan priced at 5%.

Tailored Brands is a Fremont, Calif.-based specialty retailer of men’s tailored clothing.

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