Oxea, Ten-X, Ring Container, Education Advisory, Covenant Surgical, Expera, Corsair break

By Sara Rosenberg

New York, Sept. 29 – Oxea GmbH shifted some funds between its U.S. and euro term loans, and Ten-X LLC finalized the spread on its first-lien term loan at the low side of talk, and then both of these deals freed up for trading on Friday.

Other deals to make their way into the secondary market during the session included Ring Container Technologies, Education Advisory Board, Covenant Surgical Partners Inc., Expera Specialty Solutions LLC and Corsair.

Back in the primary market, Caesars Resort Collection LLC set the spread on its term loan at the high end of guidance, tightened the original issue discount and added a ticking fee, Transplace Holdings Inc. moved some funds between its first-and second-lien term loans and increased pricing, and Bombardier Recreational Products Inc. joined the near-term primary calendar.

Oxea retranches

Oxea trimmed its U.S. seven-year covenant-light term loan B to $500 million from $530 million and lifted its euro seven-year covenant-light term loan B to €475 million from €450 million, according to a market source.

The U.S. term loan is priced at Libor plus 350 basis points with a 0% Libor floor and an original issue discount of 99.75, and the euro term loan is priced at Euribor plus 375 bps with a 0% floor and a par issue price. Both loans have 101 soft call protection for six months.

On Thursday, the spread on the U.S. loan was set at the tight end of the Libor plus 350 bps to 375 bps talk, pricing on the euro loan firmed at the low end of the Euribor plus 375 bps to 400 bps talk, and the issue price on the euro loan was changed from 99.75.

The company’s €1,035,000,000 equivalent of credit facilities (B3/B) also include a €135 million six-year revolver.

Oxea hits secondary

With final terms in place, Oxea’s credit facilities broke for trading on Friday, with the U.S. term loan quoted at 99 7/8 bid, par 3/8 offered and the euro term loan quoted at par ¾ bid, 101¼ offered, market sources added.

Bank of America Merrill Lynch and HSBC Bank plc are the global coordinators on the deal, with Bank of America left on the U.S. loan and HSBC left on the euro loan. J.P. Morgan Securities LLC and Unicredit are joint bookrunners, and LBBW is a lead arranger.

The credit facilities will be used to refinance existing debt and for general corporate purposes.

Oxea is a Monheim, Germany-based manufacturer of oxo intermediates and oxo derivatives.

Ten-X firms, trades

Ten-X’s set pricing on its $450 million seven-year covenant-light first-lien term loan (B2/B) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

The first-lien term loan then broke for trading and levels were quoted at par bid, par ½ offered, the source said.

The company’s $605 million of credit facilities also include a $45 million five-year revolver (B2/B) and a $110 million privately placed second-lien term loan (Caa2/CCC+).

Antares Capital, Guggenheim Securities, Citizens Bank, KeyBanc Capital Markets and Sumitomo Mitsubishi Banking Corp. are leading the deal that will be used to help fund the buyout by Thomas H. Lee Partners LP of Ten-X, an Irvine, Calif.-based provider of an online real-estate marketplace.

Members of the company’s senior management team, Stone Point Capital and CapitalG, among others, which currently are investors in Ten-X, will continue to hold minority stakes in the company.

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

Ring Container frees up

Ring Container Technologies’ $475 million seven-year covenant-light first-lien term loan began trading too, with levels quoted at par bid, par ½ offered, a trader remarked.

Pricing on the loan is Libor plus 275 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for one year.

During syndication, the term loan term loan was upsized from $445 million as a proposed $30 million delayed-draw term loan was removed from the capital structure, pricing was reduced from talk of Libor plus 300 bps to 325 bps, the call protection was extended from six months and the MFN was revised to 50 bps with no carve-outs.

Bank of America Merrill Lynch, BMO Capital Markets and Antares Capital are leading the deal that will be used to help fund the buyout of the company by MSD Partners LP from Carl Ring and his family.

Closing is expected in the fourth quarter.

Ring Container is an Oakland, Tenn.-based blow molder of high-density polyethylene and polyethylene terephthalate plastic bottles for the food service, retail food and other end-use markets.

Education Advisory breaks

Education Advisory Board’s credit facilities also freed to trade, with the $540 million seven-year covenant-light first-lien term loan (B2/B) seen at 99¾ bid, a market source said.

Pricing on the first-lien term loan is Libor plus 375 bps with a 1% Libor floor and it was issued at a discount of 99.5. The debt has 101 soft call protection for six months and a ticking fee of half the margin from days 31 to 60 post allocation and the full margin thereafter.

During syndication, pricing on the first-lien term loan finalized at the wide end of the Libor plus 350 bps to 375 bps talk.

The company’s $870 million of credit facilities also include a $70 million five-year revolver (B2/B) and a $260 million privately placed eight-year second-lien term loan.

Macquarie Capital (USA) Inc. and Antares Capital are leading the deal that will help fund the buyout of the company by Vista Equity Partners from the Advisory Board Co. for $1.55 billion, subject to customary adjustments.

Closing is expected by the end of 2017 or in early 2018, subject to certain conditions.

Education Advisory Board is a best practices firm that uses a combination of research, technology and services to improve the performance of educational institutions.

Covenant Surgical begins trading

Covenant Surgical Partners’ credit facilities emerged in the secondary market as well, with the strip of $150 million seven-year first-lien term loan (B3/B-) and $45 million delayed-draw first-lien term loan (B3/B-) debt quoted at par bid, according to a market source.

Pricing on the term loan debt is Libor plus 475 bps with a 0% 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, pricing on the term loans was reduced from Libor plus 500 bps and the discount was changed from 99.

The company’s $220 million of credit facilities also include a $25 million revolver (Ba3/B+).

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by KKR from DFW Capital Partners, Iroquois Capital Group, PineBridge Investments and other existing shareholders.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Covenant Surgical is a Nashville, Tenn.-based acquirer and operator of ambulatory surgery centers and physician practices.

Expera levels surface

Expera Specialty Solutions’ $282 million term loan B (B2/BB-) due November 2023 broke, with levels seen at par ¾ bid, 101¼ offered, a trader remarked.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Deutsche Bank Securities Inc. and Barclays are leading the deal that will be used to reprice an existing term loan B down from Libor plus 475 bps with a 1% Libor floor.

Closing is expected on Wednesday.

KPS Capital Partners LP is the sponsor.

Expera is a Kaukauna, Wis.-based manufacturer of specialty paper and protective packaging products for the industrial and technical, food, and pressure-sensitive release liner segments.

Corsair top OID

Another deal to start trading was Corsair, with its $245 million seven-year first-lien term loan quoted at 99¾ bid, according to a market source.

Pricing on the first-lien term loan is Libor plus 475 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

The company’s $345 million of credit facilities also include a $50 million five-year revolver and a $50 million eight-year second-lien term loan.

The second-lien term loan is priced at Libor plus 850 bps with a 1% Libor floor and was issued at a discount of 98.5. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $235 million and pricing was set at the high end of the Libor plus 450 bps to 475 bps talk, and the second-lien loan was downsized from $65 million.

Macquarie Capital (USA) Inc. and BNP Paribas Securities Corp. are leading the deal.

Corsair being acquired

Proceeds from Corsair’s credit facilities will be used to help fund its buyout by EagleTree Capital from Francisco Partners and several minority shareholders. The company’s founder and chief executive officer Andy Paul will maintain a sizable equity stake in Corsair and IMCO (Investment Management Corp. of Ontario) and the Honeywell pension will co-invest alongside EagleTree.

The company will borrow $5 million under its revolver for the buyout as a result of the overall $5 million reduction in term loan borrowings.

Due to strong third quarter performance, net leverage off of estimated Sept. 30 results is 4.5 times versus 4.9 times at June 30. First-lien leverage is unchanged despite the upsize to the first-lien debt.

Closing on the buyout is subject to customary conditions.

Corsair is a Fremont, Calif.-based provider of high performance branded computer products, including memory, components, peripherals and complete systems.

Caesars Resort reworked

Returning to the primary market, Caesars Resort Collection firmed pricing on its $4.7 billion seven-year covenant-light first-lien term loan at Libor plus 275 bps, the wide end of the Libor plus 250 bps to 275 bps talk, modified the original issue discount to 99.75 from 99.5 and added a ticking fee of half the margin from days 46 to 90 and the full margin thereafter, a market source remarked.

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

The company’s $5.7 billion of credit facilities (Ba3/BB) also include a $1 billion revolver priced at Libor plus 225 bps, subject to reductions based on senior secured leverage, with a 50 bps commitment fee.

Allocations are targeted for Monday, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to finance the combination of Caesars Growth Properties Holdings LLC and Caesars Entertainment Resort Properties LLC, including a refinancing of debt at both entities.

Caesars Resort is an owner of a collection of casino properties.

Transplace sets changes

Transplace lifted its seven-year first-lien term loan B (B2/B-) to $400 million from $390 million and increased pricing to Libor plus 425 bps from Libor plus 400 bps, while keeping the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, according to a market source.

Also, the eight-year second-lien term loan (Caa2/CCC) was scaled back to $110 million from $120 million, pricing was raised to Libor plus 850 bps from Libor plus 800 bps and the original issue discount widened to 98 from 98.5, 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.

Other changes included removing the MFN sunset and maturity carve-out from the credit agreement.

The company’s $600 million of senior secured credit facilities also provide for a $90 million five-year revolver (B2/B-).

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

Transplace lead banks

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., KeyBanc Capital Markets and RBC Capital Markets are leading Transplace’s credit facilities, with Goldman the left lead on the revolver and term loan B and JPMorgan the left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by TPG Capital from Greenbriar Equity Group LLC.

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

Bombardier readies repricing

Bombardier Recreational Products scheduled a lender call for 3:30 p.m. ET on Monday to launch a repricing of its term loan B, according to a market source.

RBC Capital Markets and BMO Capital Markets are leading the deal.

Bombardier Recreational is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

Parexel closes

In other news, the buyout of Parexel International Corp. by Pamplona Capital Management LLP for $88.10 per share in cash in a transaction valued at about $5 billion, including net debt, has been completed, a news release said.

To help fund the transaction Parexel got $2,365,000,000 of senior secured credit facilities (B1/B) that include a $300 million five-year revolver and a $2,065,000,000 seven-year covenant-light term loan B.

Pricing on the term loan B is Libor plus 300 bps, after firming during syndication at the tight end of the Libor plus 300 bps to 325 bps talk. The loan has a 0% Libor floor and 101 soft call protection for six months and was sold at an original issue discount of 99.5.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Barclays, Morgan Stanley Senior Funding Inc. HSBC Securities (USA) Inc. and Jefferies LLC led the deal.

Parexel is a Waltham, Mass.-based biopharmaceutical services company.

Ultra Petroleum wraps

Ultra Petroleum Corp. closed on its fungible $175 million incremental term loan B, according to a news release.

Pricing on the incremental loan is Libor plus 300 basis points with a 1% Libor floor, in line with existing term loan pricing, and it was issued at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the discount on the term loan firmed at the tight end of the 99.5 to 99.75 talk.

Barclays, BMO Capital Markets, Capital One and Goldman Sachs Bank USA led the deal that was used to repay reserve-based lending revolving credit facility borrowings and to pay transaction related fees.

Ultra Petroleum is a Houston-based independent exploration and production company.

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