Worley Claims hits secondary; Madrid revises documentation; Avantor readies repricing

By Sara Rosenberg

New York, May 31 – Worley Claims Services LLC reduced the size of its delayed-draw first-lien term loan and revised the ticking fee, and then the company’s credit facilities freed up for trading on Friday morning.

In more happenings, Madrid (AI Plex AcquiCo) made a number of documentation changes to its credit facilities, including outlining pricing step-downs for its U.S. and euro term loans, and Avantor emerged with new deal plans.

Worley updated, breaks

Worley Claims Services trimmed its delayed-draw seven-year first-lien term loan to $30 million from $50 million and changed the ticking fee to half the spread from days 61 to 120 and the full spread thereafter from a fee of 1% from days 61 to 120 and 2% thereafter, according to a market source.

The delayed-draw term loan and funded $300 million seven-year covenant-lite first-lien term loan remained priced at Libor plus 400 basis points with a 0% Libor floor and an original issue discount of 99. The term loan has 101 soft call protection for six months and the delayed-draw term loan has 24-month availability.

The company’s now $500 million of senior secured credit facilities also include a $50 million five-year revolver and a $120 million privately placed second-lien term loan.

Allocations were communicated on Friday morning, and the first-lien term loan and delayed-draw term loan strip began trading, with levels quoted at 99 1/8 bid, 99 5/8 offered, the source added.

Antares Capital, Golub Capital, Madison Capital and Owl Rock Capital are leading the deal that will be used to help fund the buyout of the company by Kohlberg & Co. and Worley’s management team.

Worley is a Fishers, Ind.-based provider of insurance claims management services.

Madrid tweaks deal

Madrid modified documentation for its credit facilities, including setting one 25 bps step-down on the €520 million equivalent U.S. dollar seven-year term loan B after 0.5 times deleveraging from opening consolidated senior secured net leverage, a market source remarked.

Additionally, two step-downs of 25 bps were set on the €965 million seven-year term loan B for each 0.5 times of deleveraging from opening consolidated senior secured net leverage, the source continued.

The term loans have a margin ratchet holiday for 12 months.

Furthermore, the MFN was outlined as 50 bps for life, with no sunset.

Also, the company reduced debt incurrence flexibility, including elimination of the freebie, reduced restricted payment and permitted investment flexibility, and removed revenue synergies, the source added.

Talk on the term loans is Libor/Euribor plus 475 bps to 500 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Madrid getting revolver

Along with the term loans, Madrid’s €1,785,000,000 equivalent of credit facilities (B2//B) include a €300 million 6.5-year multi-currency revolver.

Barclays, Deutsche Bank and Goldman Sachs are the physical bookrunners on the deal, with Deutsche the left lead on the U.S. piece. Mandated lead arrangers include Bank of America Merrill Lynch, Bank of China, Helaba, HSBC, RBC and NatWest.

Commitments are due at 10 a.m. ET on June 4.

Proceeds will be used to help fund the buyout of Evonik Industries AG’s methacrylates business (Madrid) by Advent International for €3 billion.

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

Madrid is a provider of methacrylate solutions to a variety of end markets, including paints and coatings, construction, automotive and health care.

Avantor on deck

Avantor set a lender call for 11 a.m. ET on Monday to launch an $810 million term loan B (Ba2) and a €418 million term loan B (Ba2), according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used to reprice existing U.S. and euro term loan debt.

Avantor is a Radnor, Pa.-based provider of integrated, tailored solutions for the life sciences and advanced technology industries.

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