Terrapure Environmental, Element Solutions free to trade; STV Group flexes higher

By Sara Rosenberg

New York, Nov. 25 – Terrapure Environmental Ltd.’s first-lien term loan made its way into the secondary market on Monday and was trading above its original issue discount, and Element Solutions Inc.’s term loan B broke as well.

Meanwhile, in the primary market, STV Group widened the spread on its term loan and Cox Media Group joined the near-term new issue calendar.

Terrapure tops OID

Terrapure Environmental’s $465 million seven-year first-lien term loan began trading on Monday, with levels quoted at 99½ bid, par ¼ offered, a market source remarked.

Pricing on the first-lien 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 and a ticking fee of half the spread from days 31 to 60, the full spread from days 61 to 90 and the full spread plus Libor onwards.

The company’s $554.5 million of senior secured credit facilities also include a $45 million five-year revolver and a $44.5 million privately placed eight-year senior secured second-lien term loan.

During syndication the first-lien term loan was upsized from $440 million and the second-lien term loan was downsized from C$75 million U.S. dollar equivalent.

Jefferies LLC, Deutsche Bank Securities Inc., Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Pamplona Capital Management and, as a result of the recent first-lien term loan upsizing, to finance an acquisition.

Terrapure is a Burlington, Ont.-based provider of environmental and industrial waste management services.

Element hits secondary

Element Solutions’ $744.4 million first-lien term loan B (Ba2/BB) due Jan. 31, 2026 freed to trade too, with levels seen at par bid, par 3/8 offered, according to a market source.

Pricing on the term loan B is Libor plus 200 bps with a 0% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

On Friday, pricing on the term loan B was increased from Libor plus 175 bps and the issue priced firmed at the tight end of the 99.75 to par talk.

Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance/reprice an existing term loan B that is priced at Libor plus 225 bps.

Closing is expected on Tuesday.

Net senior secured leverage is 1.3x, and net total leverage is 3.3x.

Element Solutions is a Fort Lauderdale, Fla.-based provider of specialty chemical solutions.

STV revised

Switching to the primary market, STV Group raised pricing on its $225 million seven-year first-lien term loan B to Libor plus 525 bps from Libor plus 450 bps and eliminated a leverage-based pricing step-down, a market source said.

As before, the term loan has a 0% Libor floor and an original issue discount of 99.

The company’s $280 million of credit facilities (B2/B+) also include a $55 million five-year revolver.

Macquarie Capital (USA) Inc., BNP Paribas Securities Corp., BMO Capital Markets and Carlyle are leading the deal that will be used to help fund a recapitalization of the company by the Tom Pritzker Family Business Interests advised by TPO.

In connection with the recapitalization, TPO will purchase shares in STV owned by the company’s Employee Stock Ownership Plan.

Closing is expected in December.

STV is an engineering, architectural, program/construction management, planning and environmental professional services firm with headquarters in New York and Douglassville, Pa.

Cox Media on deck

Cox Media set a bank meeting for 10 a.m. ET in New York on Dec. 2 to launch $2.2 billion of credit facilities, according to a market source.

The facilities consist of a $325 million five-year revolver and a $1.875 billion seven-year term loan B, the source said.

RBC Capital Markets, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Mizuho are leading the deal that will be used with $1.165 billion of eight-year senior unsecured debt to help fund the buyout of the company by Apollo Global Management Inc. from Cox Enterprises Inc.

Cox Media is an Atlanta-based broadcasting, publishing, direct marketing and digital media company.

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