Contura, AGS break; GoodRx, Distributed Power, R.R. Donnelley, OneDigital updated

By Sara Rosenberg

New York, Oct. 3 – Contura Energy Inc.’s first-lien term loan made its way into the secondary market on Wednesday, and the debt was seen trading above its original issue discount, and AGS (AP Gaming I LLC) freed to trade after tweaking its transaction.

In other news, GoodRx trimmed price talk on its first-lien term loan and tightened the original issue discount, Distributed Power revised spread talk and issue prices on its first-lien term loans, upsized its euro first-lien tranche and downsized its euro second-lien tranche, and R.R. Donnelley & Sons Co. increased the size of its term loan B.

Also, OneDigital (Achilles Acquisition LLC) cut the spread on its term loan and modified the original issue discount, and Vantage Specialty Chemicals Holdings Inc. set pricing on its term loan B at the low end of guidance.

In addition, Resideo Technologies Inc. tightened the spread and issue price on its term loan B, and Men’s Wearhouse Inc. finalized pricing on its term loan at the high side of talk.

Furthermore, Red Ventures LLC, Holley Performance Products/Driven Performance Brands (Holley Purchaser Inc.), Frontera Generation Holdings LLC and NFP Corp. released price talk with launch, and Grocery Outlet Inc., ProQuest LLC and Pixelle Specialty Solutions LLC joined this week’s primary calendar.

Contura frees up

Contura Energy’s $550 million seven-year first-lien term loan (B3/B) began trading on Wednesday, with levels quoted at 99½ bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 500 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, among other things, the term loan was downsized from $600 million, the spread increased from revised talk in the range of Libor plus 450 bps to 475 bps and from initial talk of Libor plus 400 bps, the discount widened from 99.5, the excess cash flow sweep was changed, amortization finalized at 5% per annum and the incremental MFN was set at 50 bps for life.

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

Contura refinancing debt

Proceeds from Contura’s term loan 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 an amended agreement, Alpha shareholders will receive 0.4417 of a Contura common share for each ANR Inc. class C-1 share and each share of common stock of Alpha Natural Resources Holdings Inc. they own, representing about 48.5% ownership in the merged entity. Also, prior to the closing of the transaction, Alpha stockholders will receive a special cash dividend in an amount equal to $2.725 for each class C-1 share and each share of common stock of Alpha Natural Resources Holdings Inc. they own.

Closing is expected in the fourth quarter, subject to Alpha stockholder 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.

AGS revised, trades

AGS is now getting a fungible $30 million incremental senior secured first-lien term loan due Feb. 15, 2024 at an original issue discount of 99.75 in addition to the previously announced repricing of its existing roughly $510 million term loan due Feb. 15, 2024, a market source said.

Pricing on the term loan debt is Libor plus 350 bps with one 25 bps step-down upon an upgrade to B1 corporate family rating and a 1% Libor floor, in line with initial talk, and the debt includes 101 soft call protection for six months. As before, the repricing has a par issue price.

After terms finalized the term loan debt broke for trading and levels were seen at par ¼ bid, par ¾ offered, the source added.

Jefferies LLC is the leading the term loan (B2/B+).

The incremental loan will be used to fund cash on the balance sheet, and the repricing will take the existing term loan down from Libor plus 425 bps.

AGS is a Las Vegas-based manufacturer and operator of gaming machines.

GoodRx tweaks deal

In more happenings, GoodRx cut price talk on its $520 million seven-year first-lien term loan (B1/B+) to a range of Libor plus 300 bps to 325 bps from a range of Libor plus 350 bps to 375 bps and changed the original issue discount to 99.75 from 99.5, according to a market source.

As before, the first-lien term loan has a 0% Libor floor and 101 soft call protection for six months.

The company’s $785 million of credit facilities also include a $40 million revolver (B1/B+) and a $225 million privately placed second-lien term loan.

Commitments remained due at 5 p.m. ET on Wednesday, the source said.

Goldman Sachs Bank USA, Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, KKR Capital Markets, Citizens and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the acquisition of a significant minority stake in the company by Silver Lake Partners from existing owners Francisco Partners, Spectrum Equity and management.

GoodRx is a Santa Monica, Calif.-based operator of a prescription drug price comparison and coupon platform.

Distributed Power reworked

Distributed Power trimmed price talk on its $400 million seven-year first-lien term B to a range of Libor plus 325 bps to 350 bps from a range of Libor plus 375 bps to 400 bps, raised its euro seven-year first-lien term B to $1,125,000,000 equivalent from $1,085,000,000 equivalent, cut talk on the euro loan to a range of Euribor plus 350 bps to 375 bps from Euribor plus 400 bps, and tightened the original issue discount on both loans to 99.75 from 99.5, a market source remarked.

The first-lien term loans still have a 0% floor.

Also, the company downsized its pre-placed eight-year second-lien term loan to $317.5 million equivalent from $337.5 million equivalent.

Unconditional commitments are due by noon ET on Thursday, the source added.

Distributed Power leads

Bank of America Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Jefferies LLC are the physical bookrunners and mandated lead arrangers on Distributed Power’s term loans. Other mandated lead arrangers are Credit Agricole, Deutsche Bank Securities Inc., Erste Bank and Unicredit.

Proceeds will be used to help fund the buyout of the company by Advent International from General Electric for $3.25 billion.

Due to the change in the euro first- and second-lien term loan tranche sizes, the equity for the transaction was reduced by $20 million.

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

Distributed Power is a provider of reciprocating gas engines, power equipment and services focused on power generation and gas compression at or near the point of use.

R.R. Donnelley upsizes

R.R. Donnelley lifted its covenant-light term loan B due January 2024 to $550 million from $400 million and left pricing at Libor plus 500 bps with a 0% Libor floor and an original issue discount of 99, a market source said.

The term loan has 101 soft call protection for one year.

Previously in syndication, the call protection was extended from six months and the incremental debt cap was changed to 2 times from 3 times.

Allocations are expected on Thursday, the source added.

Bank of America Merrill Lynch is the left lead on the deal that will be used to repay debt and for general corporate purposes. Due to the term loan upsizing, the company will repay revolver borrowings and increase its notes tender offer.

R.R. Donnelley is a Chicago-based communications provider enabling organizations to create, manage, deliver and optimize their multichannel marketing and business communications.

OneDigital flexes

OneDigital reduced pricing on its $460 million seven-year first-lien term loan (B3/B) to Libor plus 400 bps from talk in the range of Libor plus 425 bps to 450 bps and moved the original issue discount to 99.75 from 99.5, according to a market source.

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

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing bank debt, fund near-term acquisitions and fund a dividend.

OneDigital is an Atlanta-based employee benefits insurance broker.

Vantage firms spread

Vantage Specialty Chemicals finalized pricing on its $516,274,560 senior secured covenant-light term loan B (B3/B-) due Oct. 28, 2024 at Libor plus 350 bps, the tight end of the Libor plus 350 bps to 375 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source said.

The debt freed to trade late in the day and was quoted at par ¾ bid, 101¼ offered, a trader added.

Morgan Stanley Senior Funding Inc., Jefferies LLC and RBC Capital Markets are leading the deal that will be used to reprice an existing term loan B.

Closing is expected in late October.

Vantage is a Chicago-based specialty chemicals company.

Resideo tweaks deal

Resideo Technologies trimmed pricing on its $475 million seven-year term loan B (Ba2/BBB-) to Libor plus 200 bps from initial talk of Libor plus 300 bps and changed the original issue discount to 99.75 from 99.5, according to a market source.

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

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the spinoff of the company from Honeywell International Inc.

The company is also expected to get a $350 million term loan A and $400 million of notes for the transaction.

Resideo is a Morris Plains, N.J.-based provider of critical comfort and security solutions primarily in residential environments.

Men’s Wearhouse finalized

Men’s Wearhouse firmed pricing on its $895.5 million first-lien term loan B due April 2025 at Libor plus 325 bps, the high end of the Libor plus 300 bps to 325 bps talk, a market source remarked.

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

J.P. Morgan Securities 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.

Men’s Wearhouse is a Houston-based specialty retailer.

Red Ventures guidance

Also in the primary market, Red Ventures launched on its Wednesday morning call a $1,885,000,000 covenant-light term loan B (B1) due Nov. 8, 2024 talked at Libor plus 300 bps to 325 bps with a 0% Libor floor and 101 soft call protection for six months, according to a market source.

Of the total term loan B amount, $250 million is a fungible incremental tranche talked with an original issue discount of 99.75 and the remainder is a refinancing of the existing term loan B talked with a par issue price, the source said.

Commitments are due at noon ET on Oct. 11.

Bank of America Merrill Lynch, Barclays, Fifth Third, PNC, MUFG, Regions, Capital One, J.P. Morgan Securities, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal.

The incremental term loan B will be used to repay in full the existing second-lien term loan.

Red Ventures is a Fort Mill, S.C.-based technology-enabled customer acquisition platform.

Holley details emerge

Holley/Driven held its bank meeting in the morning and launched $450 million of senior secured credit facilities split between a $50 million five-year revolver, a $380 million seven-year first-lien term loan, and a $20 million first-lien delayed-draw term loan available for nine months and being sold as a pro rata strip with the funded term loan, a market source remarked.

The term loan debt is talked at Libor plus 450 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the delayed-draw term loan has an undrawn ticking fee of half the margin after day 90 and the full margin after day 150.

Commitments are due on Oct. 17, the source added.

UBS Investment Bank, SunTrust Robinson Humphrey Inc., Cowen and MUFG are leading the deal that will be used to fund the combination of Holley Performance Products and Driven Performance Brands by Sentinel Capital Partners.

Holley is a Bowling Green, Ky.-based automotive performance company. Driven is a Santa Rosa, Calif.-based provider of automotive aftermarket products.

Frontera releases talk

Frontera Generation came out with talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months on its $65 million incremental covenant-light term loan B due May 2, 2025 that launched with a morning call, a market source said.

With the incremental, the company is seeking an amendment to its existing credit agreement. And is offering lenders a 25 bps amendment fee.

Commitments and consents are due at 5 p.m. ET on Oct. 10, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal.

The incremental loan will be used to fund cash to the Lonestar Generation LLC balance sheet and to pay transaction fees and expenses.

Frontera is a gas turbine power generation facility located in Mission, Texas.

NFP holds call

NFP surfaced with plans early in the afternoon to hold a lender call at 2:30 p.m. ET to launch a fungible $200 million incremental covenant-light term loan B due Jan. 6, 2024 talked with an original issue discount in the 99.75 area, according to a market source.

The loan is priced at Libor plus 350 bps with a 1% Libor floor.

Commitments are due at 10 a.m. ET on Friday, the source said.

Bank of America Merrill Lynch, KKR Capital Markets and Golub are leading the debt that will be held in a segregated acquisition account under control of the administration agent to be used for permitted acquisitions and any proceeds unused by a certain outside date will be used to repay debt.

NFP is an insurance broker and consultant.

Grocery joins calendar

Grocery Outlet scheduled a lenders’ presentation for 11 a.m. ET on Thursday to launch $975 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $100 million revolver, a $725 million first-lien term loan and a $150 million second-lien term loan, the source added.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Grocery Outlet is an Emeryville, Calif.-based grocery store operator.

ProQuest on deck

ProQuest will hold a lender call at 12:30 p.m. ET on Thursday to launch a $705 million term loan B, according to a market source.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to reprice an existing term loan B.

ProQuest is an Ann Arbor, Mich.-based provider of digital content and Software as a Service solutions primarily for the academic community.

Pixelle coming soon

Pixelle Specialty Solutions set a bank meeting for 10 a.m. ET in New York on Thursday to launch $260 million of credit facilities, according to a market source.

The facilities consist of a $40 million revolver and a $220 million seven-year first-lien term loan B that is talked with a 1% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Oct. 18.

Credit Suisse Securities (USA) LLC and Citizens Bank are leading the deal that will be used with equity to fund the acquisition of P.H. Glatfelter’s Specialty Papers Business Unit by Lindsay Goldberg for $360 million, including $320 million of cash proceeds and the assumption of about $40 million of retiree health care liabilities.

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

Pixelle is a manufacturer of specialty paper products used in various end-markets.

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