Alion cuts pricing; First Brands deadline accelerated; Graham Packaging, ProMach on deck

By Sara Rosenberg

New York, July 21 – Alion Science & Technology Corp. lowered the spread on its first-lien term loan on Tuesday and First Brands Group LLC moved up the commitment deadline for its incremental first-lien term loan.

Also, Graham Packaging Co. Inc. came out with timing and structure on its proposed credit facilities, and ProMach Group Inc. emerged with new loan plans.

Alion cuts spread

Alion Science & Technology trimmed pricing on its $360 million four-year first-lien term loan (B1/BB-) to Libor plus 375 basis points from Libor plus 400 bps, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Along with the term loan, the company is getting a $40 million revolver (Ba1/BB).

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used with cash on hand to refinance an existing first-lien term loan and mezzanine tranche.

Alion, a portfolio company of Veritas Capital, is a McLean, Va.-based provider of advanced engineering, intelligence surveillance and reconnaissance, research development test and evaluation, live virtual and constructive training, electronic warfare, and cybersecurity solutions primarily to U.S. Department of Defense and Intelligence Community customers.

First Brands tweaks timing

First Brands Group accelerated the commitment deadline for its fungible $710 million incremental first-lien term loan due Feb. 2, 2024 to 3 p.m. ET on Wednesday from 3 p.m. ET on Friday, a market source remarked.

Talk on the incremental term loan is Libor plus 750 bps with a 1% Libor floor, an original issue discount of 94 and hard call protection of 102 in year one and 101 in year two.

Jefferies LLC is leading the deal that will be used to fund acquisitions.

Pro forma for the transaction, the first-lien term loan size will total about $1.479 billion.

Along with the incremental term loan, the company is seeking an amendment to increase its ABL size, modify the total net leverage covenant and consolidated adjusted EBITDA definition, increase the leverage governor on permitted acquisitions, remove the cap on cash netting for the consolidated total net debt definition, increase the basket for sales leaseback transactions and assign Jefferies the role of administrative agent.

The deadline for amendment consents remained at 3 p.m. ET on Wednesday, the source added.

Lenders are being offered a 1% amendment/exchange fee.

First Brands, formerly known as Trico Group, is an automotive aftermarket platform.

Graham coming soon

Graham Packaging scheduled a lender call for 10 a.m. ET on Wednesday to launch $1.51 billion of credit facilities, a market source said.

The facilities consist of a $100 million revolver and a $1.41 billion seven-year covenant-lite first-lien term loan, the source continued.

Included in the term loan is 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on July 29, the source added.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to help repay existing debt at parent company Reynolds Group Holdings Ltd.

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

ProMach joins calendar

ProMach set a lender call for 4 p.m. ET on Wednesday to launch $325 million of senior secured credit facilities, according to a market source.

The facilities consist of a $162.5 million first-lien term loan B and a $162.5 million delayed-draw term loan, the source said.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the debt that will be used to finance acquisitions currently under letters of intent and for general corporate purposes.

ProMach, based near Cincinnati, is a provider of packaging solutions to the food, beverage, pharmaceutical, personal care, and household and industrial goods industries.

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