Resource Label Group, Gastro Health term loans free to trade; Atlantic Aviation on deck

By Sara Rosenberg

New York, July 2 – Resource Label Group (RLG Holdings LLC) moved some funds between its funded and delayed-draw first-lien term loans, firmed spreads on its first-and second-lien debt at the low end of guidance, and tightened the issue price on the first-lien debt before breaking for trading on Friday.

Also, Gastro Health’s bank debt allocated and freed to trade, with the strip of funded and delayed-draw first-lien term loans quoted above its original issue discount.

And, in more happenings, Atlantic Aviation came out with timing on the launch of its buyout financing first-and second-lien credit facilities.

Resource Label revised

Resource Label Group trimmed its funded seven-year first-lien term loan to $395 million from $405 million and lifted its delayed-draw first-lien term loan to $100 million from $90 million, according to a market source.

In addition, pricing on the first-lien term loan debt (B2/B-) was set at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, and pricing on the company’s $110 million eight-year second-lien term loan and $15 million privately placed delayed-draw second-lien term loan firmed at Libor plus 750 bps, the low end of the Libor plus 750 bps to 775 bps talk, the source said.

Also, the first-lien term loan debt saw the addition of a 25 bps step-down at 0.5x inside closing first-lien net leverage, and the original issue discount was changed to 99.5 from 99.

As before, the first-lien term loan debt has a 0.75% Libor floor and 101 soft call protection for six months, the second-lien term loan debt (Caa2/CCC) has a 0.75% Libor floor, a discount of 98.5, and call protection of 102 in year one and 101 in year two, and delayed-draw ticking fees are half the margin from days 46 to 90 and the full margin thereafter.

Resource Label breaks

Recommitments for Resource Label Group’s term loans were due at 10 a.m. ET on Friday and the debt began trading during the session, with the first-lien term loan debt quoted at 99¾ bid, par ¼ offered and the second-lien term loan debt quoted at 98¾ bid, 99½ offered, another source added.

Along with the term loans, the company’s $680 million of credit facilities include a $60 million revolver (B2/B-).

Credit Suisse Securities (USA) LLC, Jefferies LLC, BMO Capital Markets, Nomura and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Ares.

Resource Label Group is a Franklin, Tenn.-based provider of custom label design and printing.

Gastro hits secondary

Gastro Health’s credit facilities broke for trading too, with the strip of $300 million first-lien term loan (B2/B-) and $100 million delayed-draw first-lien term loan (B2/B-) debt quoted at par bid, par ¾ offered, a trader remarked.

Pricing on the first-lien term loan debt is Libor plus 450 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the original issue discount on the first-lien term loan debt was changed from 99.

The company’s $550 million of credit facilities also include a $60 million revolver (B2/B-) and a $90 million privately placed second-lien term loan (Caa2/CCC).

BMO Capital Markets and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Omers.

Closing is expected this quarter, subject to certain conditions, including regulatory approvals.

Gastro Health is a Miami-based platform supporting medical groups specializing in the treatment of gastrointestinal disorders, nutrition and digestive health.

Atlantic Aviation sets call

In other news, Atlantic Aviation will hold a lender call at 1 p.m. ET on Tuesday to launch its $1.875 billion of credit facilities, according to a market source.

The facilities consist of a $225 million five-year revolver, a $1.3 billion seven-year first-lien term loan and a $350 million eight-year second-lien term loan.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two, the source said.

Jefferies LLC, KKR Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc., Mizuho, BNP Paribas Securities Corp., ING, Societe Generale, SMBC and Wells Fargo Securities LLC are leading the deal, with Jefferies the left lead on the first-lien term loan and KKR the left lead on the second-lien term loan.

Atlantic being acquired

Atlantic Aviation will use the credit facilities to help fund its buyout by KKR from Macquarie Infrastructure Corp. for $4.475 billion in cash and assumed debt and reorganization obligations.

Closing is expected in the fourth quarter, subject to customary regulatory approvals and approval from Macquarie Infrastructure shareholders.

Atlantic Aviation is an operator of fixed base operations, providing a full suite of critical services to the private aviation sector.

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