Boardriders, Coronado, Lindblad, Traeger, LifeMiles free to trade; Fogo de Chao sets changes

By Sara Rosenberg

New York, March 21 – Boardriders Inc. firmed pricing on its term loan B at the high end of guidance and made some documentation changes before breaking for trading on Wednesday, and deals from Coronado Australia Holdings Pty. Ltd., Lindblad Expeditions Inc., Traeger Grills (TGP Holdings III LLC) and LifeMiles Ltd. hit the secondary market as well.

In more happenings, Fogo de Chao Inc. increased the size of its term loan while tightening the spread and original issue discount, and HelpSystems LLC moved up the commitment deadline on its credit facilities.

Also, Duff & Phelps, Plaskolite LLC, TravelClick Inc., AES Corp. and Mohegan Tribal Gaming Authority released price talk with launch, and Dole Food Co. Inc. emerged with new deal plans.

Boardriders updated

Boardriders set pricing on its $450 million six-year term loan B (B3/B-) at Libor plus 650 basis points, the wide end of the Libor plus 625 bps to 650 bps talk, and left the 1% Libor floor, original issue discount of 98 and call protection of non-callable for one year, then at 102 in year two and 101 in year three unchanged, according to a market source.

Other changes included revising the ticking fee to 325 bps for 30 days beginning March 26 and 650 bps thereafter to be paid at close, capping the general restricted payments basket at $10 million in the first year, making the use of the available amount for permitted investments subject to closing total net leverage, and capping the aggregate use of non-credit party debt capacity at $100 million, the source said.

Also, the EBITDA definition was changed to a 25% cap on adjustments and add-backs excluding the $90 million of run-rate cost savings and $110 million of one-time cost to achieve related to the Billabong acquisition. Run-Rate cost savings and cost to achieve related to the Billabong acquisition will be available to add back to EBITDA for 24 months post-closing.

Boardriders tops OID

With final terms in place Boardriders’ term loan made its way into the secondary market and was quoted at 98½ bid, 99½ offered, another source added.

The company’s $590 million of credit facilities also include a $150 million asset-based revolver.

Deutsche Bank, Bank of America Merrill Lynch and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the acquisition of Billabong International Ltd.

Closing is expected in mid-to-late April.

Boardriders, owned by funds managed by Oaktree Capital Management, LP, is a Huntington Beach, Calif. action sports and lifestyle company that designs, produces and distributes apparel, footwear and accessories.

Coronado starts trading

Coronado Australia Holdings’ $550 million seven-year covenant-light term loan B (B1/B+) and $150 million seven-year covenant-light term loan C (B1/B+) freed up, with levels seen at 97½ bid, 98½ offered, a market source said.

Pricing on the term loan is Libor plus 650 bps with a 1% Libor floor and it was sold at an original issue discount of 97. The debt has 101 hard call protection for one year with the excess cash flow sweep at par.

During syndication, pricing on the term loan was increased from Libor plus 625 bps, the discount widened from 99, the call protection was changed from a 101 soft call for six months, and revisions were made to the incremental allowance, the excess cash flow sweep and restricted payments.

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of the Curragh coal mine in central Queensland, Australia, from Wesfarmers Ltd. for A$700 million.

Coronado Australia is a metallurgical coal producer. Parent Coronado Coal, LLC is based in Beckley, W.Va., and is a portfolio company of private equity company Energy & Minerals Group.

Lindblad hits secondary

Lindblad Expeditions’ $200 million seven-year first-lien term loan broke as well, with levels seen at par ½ bid, 101 offered, according to a market source.

The term loan is priced at Libor plus 350 bps with a 25 bps step-down at no worse than B1 (stable)/BB- (negative) ratings and a 0% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

On Monday, pricing the on the term loan was lowered from talk in the range of Libor plus 375 bps to 400 bps, the step-down was added and the discount was revised from 99.5.

The company’s $245 million of credit facilities (B2/BB) also include a $45 million revolver.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt and add cash to the balance sheet.

Lindblad Expeditions is a New York-based expedition cruising and extraordinary adventure travel company.

Traeger Grills frees up

Traeger Grills’ bank debt began trading too, with the $47 million incremental first-lien term loan (B-) due September 2024 quoted at par ¼ bid, par ¾ offered and the strip of repriced $254 million first-lien term loan (B-) due September 2024 and $40 million delayed-draw first-lien term loan due September 2024 debt quoted at par ½ bid, 101¼ offered, a market source remarked.

Pricing on the term loans is Libor plus 425 bps with a 1% Libor floor. The incremental loan was sold at an original issue discount of 99.75, the repricing was issued at par with a 25 bps amendment fee, and all of the term loan debt has 101 soft call protection for six months.

On Tuesday, the spread on the loans firmed at the tight end of the Libor plus 425 bps to 450 bps talk.

Credit Suisse Securities (USA) LLC is leading the deal.

The incremental loan will be used to fund an earn-out payment and the repricing will take the existing first-lien term loan debt down from Libor plus 500 bps with a 1% Libor floor.

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

LifeMiles breaks

Another deal to surface in the secondary was LifeMiles’ $95 million add-on term loan B due August 2022, with levels quoted at 103 bid, 104½ offered, according to a market source.

Pricing on the add-on loan is Libor plus 550 bps with a 1% Libor floor, in line with existing term loan B pricing, and the debt was issued at 101.5. The loan has hard call protection of 102 through August 2018 and 101 through August 2019.

On Monday, the add-on loan was upsized from $65 million and the issue price was tightened from 101.

Deutsche Bank Securities Inc., UBS Investment Bank and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund a distribution to shareholders and related fees and expenses alongside an amendment to the credit agreement.

Closing is expected on Friday.

LifeMiles is a Latin American coalition loyalty program and the exclusive operator of Avianca’s frequent flyer program.

Fogo de Chao reworked

Back in the primary market, Fogo de Chao lifted its seven-year covenant-light first-lien term loan to $325 million from $300 million, cut pricing to Libor plus 450 bps from talk in the range of Libor plus 500 bps to 525 bps and adjusted the original issue discount to 99.5 from 99, a market source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s now $365 million of senior secured credit facilities also include a $40 million revolver.

Commitments continued to due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used with equity to fund the buyout of the company by Rhone Capital for $15.75 per share, or about $560 million. The amount of equity for the transaction is being reduced with the term loan upsizing.

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

Fogo de Chao is a Dallas-based steakhouse chain.

HelpSystems tweaks deadline

HelpSystems accelerated the commitment deadline on its $735 million of senior secured credit facilities to 4 p.m. ET on Thursday from Friday, according to a market source.

The facilities consist of a $40 million revolver (B2/B-), a $495 million seven-year first-lien term loan (B2/B-) and a $200 million eight-year second-lien term loan (Caa2/CCC).

Talk on the first-lien term loan is 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, and talk on the second-lien term loan is Libor plus 775 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Jefferies LLC, Antares Capital and Ares are leading the deal that will be used to fund HGGC LLC’s acquisition of a majority stake in the company.

HelpSystems is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity, and business intelligence software.

Duff & Phelps sets talk

Duff & Phelps held its lender call on Wednesday and launched a fungible $300 million incremental term loan at talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection until Aug. 13, 2018, according to a market source.

Commitments are due in one week, the source said.

UBS Investment Bank and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of Kroll.

Closing is expected in the second quarter, subject to customary conditions and regulatory approval.

Duff & Phelps is a New York-based independent advisor with expertise in the areas of valuation, corporate finance, disputes and investigations, compliance and regulatory matters, and other governance-related issues. Kroll is a provider of investigations and risk solutions.

Plaskolite details surface

Plaskolite held its call on Wednesday, launching a $20 million incremental revolver (B2/B), a fungible roughly $246 million incremental first-lien term loan (B2/B) due Nov. 3, 2022, a repricing of its roughly $374 million first-lien term loan (B2/B) due Nov. 3, 2022, a $40.5 million incremental second-lien term loan (Caa1/CCC+) and a repricing of its $120 million second-lien term loan (Caa1/CCC+), a market source remarked.

Talk on the incremental first-lien term loan and first-lien term loan repricing is Libor plus 350 bps with a 0% Libor floor, the source continued. Original issue discount talk on the incremental is 99.5 and the repricing is offered at par, and all of the debt is getting 101 soft call protection for six months.

The second-lien term loan debt is talked at Libor plus 800 bps with a 1% Libor floor.

Commitments are due on April 3, the source added.

Antares Capital and KeyBanc Capital Markets are leading the deal.

The incremental term loans will be used to fund several near-term acquisitions and a shareholder distribution, and the repricings will take the first-lien term loan down from Libor plus 400 bps with a 1% Libor floor and the second-lien term loan down from Libor plus 900 bps with a 1% Libor floor.

Plaskolite, a portfolio company of Charlesbank Capital Partners LLC, is a Columbus, Ohio-based manufacturer of custom acrylic and other plastic products servicing a variety of end markets and applications.

TravelClick guidance emerges

TravelClick came out with talk of Libor plus 325 bps to 350 bps with a1% Libor floor on its $34 million incremental first-lien term loan (B1/B-) due May 6, 2021 and repricing of its existing $446 million first-lien term loan (B1/B-) due May 6, 2021 shortly before its morning lender call took place, according to a market source.

The incremental loan is talk with an original issue discount of 99.75 and the repricing is offered at par, and all of the debt includes101 soft call protection for six months.

Commitments are due on March 28.

Credit Suisse Securities (USA) LLC is the left lead on the deal.

The incremental loan will be used to repay a portion of the company’s second-lien term loan and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

TravelClick is a New York-based provider of solutions to the hospitality industry.

AES reveals terms

AES launched on its call its $521,062,500 senior secured covenant-light term loan B due May 31, 2022 at talk of Libor plus 175 bps with a 0% Libor floor and a par issue price, a market source said.

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

Commitments are due at noon ET on March 27.

Barclays is the leading the deal that will be used to reprice and slightly extend an existing term loan B due May 24, 2022 down from Libor plus 200 bps with a 0.75% Libor floor.

The size of the term loan B excludes a pending 0.25% amortization payment scheduled for March 29.

Pro forma senior secured leverage is 0.8 times and total leverage is 4.3 times.

AES is an Arlington, Va.-based power company.

Mohegan Tribal launches

Mohegan Tribal Gaming Authority launched in the morning a $125 million add-on term loan B (B-) talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due on March 28, the source said.

Citizens Bank is leading the deal that will be used to fund the purchase of Mohegan’s partner’s interest in Inspire Integrated Resort Co. Ltd. and additional project-related investments.

Mohegan Tribal is an Uncasville, Conn.-based operator of gaming and entertainment enterprises.

Dole on deck

Dole Food scheduled a lender call for 1:30 p.m. ET on Thursday to launch a $938,125,000 senior secured term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B.

Dole is a Westlake Village, Calif.-based fruit and vegetables company.

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