Madrid changes emerge; Blackstone CQP tweaks timing; Circa, Confluent, Golden State set talk

By Sara Rosenberg

New York, June 5 – In the primary market on Wednesday, Madrid (AI Plex AcquiCo) narrowed down pricing on its U.S. and euro term loans to the high end of guidance, widened the original issue discount talk and extended the call protection.

Also, Blackstone CQP Holdco LP moved up the commitment deadline for its term loan B, and Circa Resort & Casino (18 Fremont Street Acquisition LLC), Confluent Health LLC and Golden State Medical Supply released price talk with launch.

Madrid modified

Madrid changed spread talk on its €520 million equivalent U.S. dollar seven-year term loan B and €965 million seven-year term loan B to Libor/Euribor plus 500 bps from prior guidance in the range of Libor/Euribor plus 475 bps to 500 bps, and revised original issue discount talk to a range of 95 to 96 from 99, according to a market source.

Additionally, the 101 soft call protection was extended to one year from six months, the source said.

The term loans have a 0% floor, the U.S. loan has one 25 bps step-down after 0.5 times deleveraging from opening consolidated senior secured net leverage, the euro loan has two step-downs of 25 bps for each 0.5 times of deleveraging from opening consolidated senior secured net leverage, and the loans have a margin ratchet holiday for 12 months and MFN of 50 bps for life.

The step-downs and MFN were announced the other day as part of documentation changes to the loans.

The company’s €1,785,000,000 equivalent of credit facilities (B2//B) also include a €300 million 6.5-year multi-currency revolver.

Madrid lead banks

Barclays, Deutsche Bank and Goldman Sachs are the physical bookrunners on Madrid’s credit facilities, 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 for the U.S. loan are due at 5 p.m. ET on Monday and commitments for the euro loan are due at 10 a.m. UK time on Tuesday, the source added.

The new debt 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.

Blackstone CQP accelerated

Blackstone CQP Holdco moved up the commitment deadline for its $2.5 billion five-year senior secured term loan B (B1/B+) to noon ET on Friday from Tuesday, a market source said.

Talk on the term loan B is Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance existing senior secured notes, fund a distribution to Blackstone and pay transaction fees and expenses.

Blackstone CQP owns about a 40% interest in Cheniere Energy Partners LP. CQP owns Sabine Pass Liquefaction LLC, which owns and operates five fully operational and fully contracted LNG trains, with a fully permitted, planned sixth train in late-stage development.

Circa discloses talk

Circa Resort & Casino held its bank meeting on Wednesday morning and announced talk on its $550 million six-year first-lien term loan (CCC+) at Libor plus 800 bps with a 0% Libor floor, an original issue discount of 98 and call protection of non-callable for 1.5 years, then at 102 for a year and 101 for a year, according to a market source.

Commitments are due at 5 p.m. ET on June 19.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the construction of the Circa Resort in Las Vegas.

Confluent Health launches

Confluent Health came out with talk of Libor plus 475 bps to 500 bps with a 0% Libor floor and an original issue discount of 99 on its $200 million seven-year covenant-lite first-lien term loan (B3/B-) that launched with a morning bank meeting, a market source said.

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

Commitments are due at noon ET on June 17, the source added.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc. and Bank of Ireland are leading the deal that will be used to help support a significant equity investment in the company by Partners Group on behalf of its clients alongside management. The Edgewater Funds will divest its holding in the company as part of the transaction.

Confluent Health is a Louisville, Ky.-based outpatient physical therapy provider.

Golden State guidance

Golden State Medical Supply released price talk on its $300 million covenant-lite first-lien term loan and $130 million covenant-lite second-lien term loan in connection with its bank meeting, according to a market source.

Talk on the first-lien term loan is Libor plus 425 bps to 450 bps with an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 825 bps with a discount of 98.5, the source said.

Only a small amount of the second-lien loan is available as most of the debt was pre-placed.

The company’s $470 million of credit facilities also include a $40 million revolver.

SunTrust Robinson Humphrey Inc. and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Court Square.

Golden State Medical is a Camarillo, Calif.-based generic pharmaceutical supplier.

PL Developments deadline

In other news, PL Developments LLC set a commitment deadline of 5 p.m. ET on June 19 for its $310 million six-year senior secured first-lien term loan B, a market source remarked.

As previously reported, the term loan, which launched with a bank meeting on Wednesday, is talked at Libor plus 700 bps with a 0% Libor floor, an 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.

Along with the term loan, the company is getting a $40 million ABL revolver.

Jefferies LLC is leading the deal that will be used to refinance existing debt, and to fund the acquisition of Teva Pharmaceutical Industries’ nicotine replacement therapy business and a basket of OTC and Abbreviated New Drug Application products.

PL Developments is a Westbury, N.Y.-based manufacturer, packager and distributor of over-the-counter pharmaceutical products and consumer health care goods.

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