Hayward Industries tweaks deal; Grizzly Acquisitions, Presidio disclose price guidance

By Sara Rosenberg

New York, Sept. 7 – In the primary market on Friday, Hayward Industries Inc. increased the size of its add-on first-lien term loan and modified the original issue discount, and Grizzly Acquisitions Inc. (Brookfield Infrastructure) and Presidio Inc. released price talk with launch.

Also, Contura Energy Inc., pH Beauty III Holdings Inc., Moda Midstream, Lotus Midstream and Virtu Financial Inc. hopped onto the near-term primary calendar.

Hayward reworked

Hayward Industries raised its fungible add-on covenant-light first-lien term loan due Aug. 4, 2024 to $150 million from $125 million and changed the original issue discount to 99.75 from 99.5, according to a market source.

As before, the add-on term loan is priced at Libor plus 350 basis points with a 0% Libor floor, and has 101 soft call protection for six months.

Recommitments were due at 1 p.m. ET on Friday.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Jefferies LLC and Nomura are leading the deal that will be used to support the acquisition of Paramount Leisure Industries Inc. and to repay some second-lien term loan borrowings. The second-lien loan paydown amount was increased with the add-on upsizing.

Hayward is an Elizabeth, N.J.-based manufacturer of residential and commercial pool equipment. Paramount is a Chandler, Ariz.-based supplier of in-floor pool cleaning systems.

Grizzly sets guidance

Grizzly Acquisitions held its bank meeting on Friday, launching its $1 billion seven-year senior secured covenant-light term loan B (Ba3) at talk of Libor plus 375 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.

Commitments are due at noon ET on Sept. 21, the source added.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., CIBC, RBC Capital Markets and Bank of Nova Scotia are leading the deal that will be used to help fund the acquisition of Enbridge Inc.’s Western Canadian midstream business by Brookfield Infrastructure for a cash purchase price of C$4.31 billion, subject to customary closing adjustments and receipt of regulatory approvals.

A portion of the transaction is expected to close in late September/early October and the remainder is expected to close in the fourth quarter through third quarter 2019 timeframe.

Presidio shops incremental

Presidio held a lender call at 10:30 a.m. ET to launch a $160 million incremental senior secured term loan B due Feb. 2, 2024 talked with an original issue discount of 99.5, a market source remarked.

Like the existing term loan B, the incremental loan is priced at Libor plus 275 bps with a 1% Libor floor.

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

Citigroup Global Markets Inc. is the sole arranger on the deal. Credit Suisse Securities (USA) LLC is the administrative agent.

The loan will be used to repurchase 10,750,000 of the company’s shares from funds managed by affiliates of Apollo Global Management LLC for about $160 million, including fees and transaction costs.

Closing is expected on Thursday.

At June 30, on a pro forma basis, after giving effect to the incremental loan, total net leverage is 3.6 times.

Presidio is a New York-based IT infrastructure solutions provider.

Contura readies deal

Also in the primary market, Contura set a bank meeting for 11 a.m. ET on Wednesday to launch a $600 million seven-year senior secured first-lien term loan that includes 101 soft call protection for six months, according to a market source.

Jefferies LLC, Barclays, Citigroup Global Markets Inc. and BMO Capital Markets are leading the deal.

The new debt will be used to refinance the combined entity’s balance sheet in connection with the closing of the merger with Alpha Natural Resources Holdings Inc., under which Alpha shareholders will receive 0.4071 Contura common shares for each ANR Inc. class C-1 share and each Alpha Natural Resources Holdings Inc. common share they own, representing about 46.5% ownership in the merged entity.

Closing is expected in the third quarter, subject to Alpha shareholder approval and other customary conditions.

Contura is a Bristol, Tenn.-based coal supplier with affiliate mining operations. Alpha is a Bristol, Tenn.-based coal miner. The combined entity will retain the Contura Energy name.

pH Beauty sets launch

pH Beauty surfaced with plans to hold a bank meeting at 10:30 a.m. ET on Tuesday to launch $385 million of credit facilities, a market source remarked.

The facilities consist of a $25 million five-year revolver, a $260 million seven-year first-lien term loan and a $100 million eight-year second-lien term loan, the source added.

Jefferies LLC, BNP Paribas Securities Corp. and Antares Capital are leading the deal that will be used to fund the acquisition of Gurnee, Ill.-based Paris Presents Inc. from EagleTree Capital and its co-investors by Yellow Wood Partners and merger with Yellow Wood’s current portfolio company, California-based Freeman Beauty.

Closing is expected this month.

pH Beauty is a health and beauty accessories business.

Moda joins calendar

Moda Midstream scheduled a lender call for Tuesday to launch a $300 million seven-year term loan B, a market source said.

Barclays is leading the deal that will be used to support the acquisition of the Ingleside Energy Center and certain crude oil and LPG infrastructure from Occidental Petroleum Corp.

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

EnCap Flatrock Midstream is the sponsor.

Moda is a Houston-based liquids terminalling and logistics company.

Lotus plans call

Lotus Midstream set a lender call for Wednesday to launch a $350 million seven-year term loan B, according to a market source.

Barclays is leading the deal that will be used to support the acquisition of the Centurion pipeline system and a Southeast New Mexico crude oil gathering system from Occidental Petroleum Corp.

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

EnCap Flatrock Midstream is the sponsor.

Lotus is a Sugar Land, Texas-based energy company focused on the organic development of midstream infrastructure and services necessary to transport crude oil and condensate from the wellhead to the market.

Virtu on deck

Virtu Financial will hold a lender call on Monday to launch a $400 million first-lien senior secured term loan talked at Libor plus 275 bps to 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at 2 p.m. ET on Sept. 14, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 1% Libor floor.

With the repricing, the existing term loan is being paid down by $74 million to $400 million.

Virtu is a New York-based technology-enabled market maker and liquidity provider to the financial markets.

SUSE coming soon

SUSE scheduled a bank meeting in London for Tuesday and a bank meeting in New York for Wednesday to launch $675 million equivalent of term loans (B2), according to a market source.

The debt is split between a $325 million seven-year term loan talked at Libor plus 400 bps and a $350 million equivalent euro seven-year term loan talked at Euribor plus 425 bps, the source said. Both loans are talked with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments are due on Sept. 26, the source added.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by the EQT VIII fund from Micro Focus International plc for $2,535,000,000.

Closing is subject to Micro Focus shareholder and customary regulatory approvals.

SUSE is a Germany-based provider of open source infrastructure software for large enterprises.

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