Tosca, Graham Packaging free up; Aldevron changes emerge; Orion, Concord set price talk

By Sara Rosenberg

New York, July 28 – Tosca Services LLC lowered the spread on its first-lien term loan, added a leverage-based pricing step-down and tightened the original issue discount before freeing up for trading on Tuesday, and Graham Packaging Co. Inc.’s term loan broke as well.

In other news, Aldevron LLC increased the size of its add-on first-lien term loan B and modified the original issue discount.

Also, Orion Advisor Solutions (GT Polaris Inc.) and Concord (Alchemy Copyrights LLC) released price talk with launch, Alight Solutions launched an extension of its term loan B maturity to lenders, and Emerald Performance Materials LLC joined this week’s primary calendar.

Tosca reworked, trades

Tosca Services trimmed pricing on its $526.5 million seven-year first-lien term loan (B2/B) to Libor plus 425 basis points from talk in the range of Libor plus 475 bps to 500 bps, added a 25 bps leverage-based step-down and revised the original issue discount to 98.5 from 97, according to a market source.

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

Recommitments were due at 11 a.m. ET on Tuesday.

The term loan freed to trade in the afternoon at 99 bid, 99¾ offered and then moved up to 99¾ bid, par ¼ offered, another source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., UBS Investment Bank, Goldman Sachs Bank USA, Rabobank, KKR Capital Markets and Mizuho are leading the deal that will be used to fund the acquisition of Contraload NV, an Aartselaar, Belgium-based provider of upstream reusable plastic pallets and containers, and to refinance existing debt.

Tosca, an Apax Partners portfolio company, is an Atlanta-based provider of reusable packaging supply chain solutions.

Graham Packaging breaks

Graham Packaging’s $1.475 billion seven-year covenant-lite first-lien term loan began trading too, with levels quoted at 99½ bid, 99 7/8 offered before rising to 99¾ bid, par 1/8 offered, a market source said.

Pricing on the term loan is Libor plus 375 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.25. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1.41 billion, pricing was reduced from Libor plus 400 bps and the discount was tightened from talk in the range of 98 to 98.5.

The company’s $1.575 billion of credit facilities (B1/B) also include a $100 million revolver.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal that will be used with $510 million of senior notes to repay existing debt at parent company Reynolds Group Holdings Ltd., including a roughly €236 million term loan, a portion of a roughly $700 million term loan, about $750 million of senior secured floating rate notes due 2021 and a $380 million securitization facility.

Closing is expected on Aug. 4.

Graham Packaging is a designer, manufacturer and seller of food, beverage, household and automotive containers.

Aldevron updated

Back in the primary market, Aldevron raised its fungible add-on covenant-lite first-lien term loan B due Oct. 11, 2026 to $100 million from $50 million and revised the original issue discount to 99.75 from talk in the range of 99 to 99.5, according to a market source.

Like the existing term loan B, the add-on term loan is priced at Libor plus 425 bps with a 1% Libor floor.

Recommitments were due at 4 p.m. ET on Tuesday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to pay down revolver borrowings, to pay related fees, expenses and original issue discount, and, because of the upsizing, to repay some second-lien term loan debt.

Closing is expected on Friday.

EQT Partners AB and TA Associates are the sponsors.

Aldevron is a Fargo, N.D.-based supplier of nucleic acids, proteins and antibodies.

Orion proposed terms

Orion Advisor Solutions held its lender call on Tuesday morning and, shortly before the call began, price talk surfaced on its $700 million seven-year covenant-lite first-lien term loan (B2/B/BB-) at Libor plus 425 bps to 450 bps with a 1% Libor floor and an original issue discount of 98, a market source remarked.

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

Commitments are due at 5 p.m. ET on Aug. 6.

The company’s $1.06 billion of credit facilities also include an $80 million revolver (B2/B/BB-) and a $280 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, BMO Capital Markets, Citizens, Evolution and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the acquisitions of Orion and Brinker Capital by Genstar Capital and Orion’s existing financial partner, TA Associates.

Orion is a provider of a tech-enabled fiduciary framework. Brinker is an investment management company.

Concord holds call

Concord hosted a lender call at 1 p.m. ET to launch a $400 million term loan B that is talked at Libor plus 350 bps to 375 bps with a 0.75% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

The company’s $850 million of senior secured credit facilities (B1/BB-) also include a $450 million revolver.

Commitments are due at 5 p.m. ET on Aug. 4, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing bank debt.

Concord is a Nashville-based music content provider.

Alight seeks extension

Alight Solutions launched on its call a two year extension of its term loan B maturity to 2026 and price talk on the extended debt is Libor plus 300 bps to 325 bps with a 0.5% Libor floor, a market source said.

Lenders are being offered a 50 bps extension fee, the source added.

BofA Securities Inc. is leading the deal.

The extension is being down in connection with an expected pay down on the term loan B. Last week, the company priced senior notes and will use proceeds from that offering for general corporate purposes, which are to include repayment of some term loan borrowings.

Alight is a Lincolnshire, Ill.-based provider of integrated, cloud-based human capital solutions.

Emerald readies deal

Emerald Performance Materials set a lender call for 11 a.m. ET on Wednesday to launch $500 million of credit facilities, according to a market source.

The facilities consist of a $75 million revolver, and a $425 million five-year covenant-lite first-lien term loan that has 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Aug. 6.

Credit Suisse Securities (USA) LLC is the left lead on the deal, which will be used to refinance existing debt.

Emerald Performance is a Vancouver, Wash.-based manufacturer and marketer of specialty chemicals.

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