Bayer Environmental frees to trade; Terra Millennium revises deal; M6 Midstream readies loan

By Sara Rosenberg

New York, Aug. 4 – Bayer Environmental Science’s (Discovery Purchaser Corp.) credit facilities surfaced in the secondary market on Thursday, with the first- and second-lien term loans quoted above their original issue discounts.

Meanwhile, in the primary market, Terra Millennium Corp. reduced the size of its delayed-draw first-lien term loan, widened the spread and original issue discount on its funded and delayed-draw term loan tranches, shortened the maturity, sweetened the call protection and made some other changes to documentation.

Furthermore, M6 Midstream (M6 ETX Holdings II MidCo LLC) joined the near-term primary calendar with plans for a new term loan B.

Bayer hits secondary

Bayer Environmental’s bank debt broke for trading on Thursday, with the $1.346 billion seven-year first-lien term loan (B3/B-) quoted at 92¾ bid, 93¾ offered and the $300 million eight-year second-lien term loan (Caa2/CCC) quoted at 88 bid, 90 offered, according to market sources.

Pricing on the first-lien term loan is SOFR plus 437.5 basis points with a 0.5% floor and it was sold at an original issue discount of 92. The debt has 101 soft call protection for one year.

The second-lien term loan is priced at SOFR plus 700 bps with a 0.5% floor and was issued at a discount of 87. This tranche is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the discount on the first-lien term loan was tightened from 90 and the call protection was extended from six months, and the discount on the second-lien term loan was revised from 85.5.

The company’s $2.021 billion of credit facilities also include a $50 million ABL revolver and a $325 million revolver (B3/B-).

Bayer lead banks

Credit Suisse Securities (USA) LLC, Barclays, BMO Capital Markets, HSBC Securities (USA) Inc., ING and BofA Securities Inc. are leading Bayer Environmental’s credit facilities, with Credit Suisse the left lead on the first-lien and Barclays the left lead on the second-lien.

The new debt will be used to help fund the buyout of the company by Cinven from Bayer AG for a total enterprise value of $2.6 billion.

Bayer Environmental is a Cary, N.C.-based provider of environmental solutions to diverse end markets.

Terra Millennium reworked

In other news, Terra Millennium scaled back its delayed-draw first-lien term loan to $30 million from $100 million, raised pricing on the tranche, as well as on the $435 million first-lien term loan, to SOFR plus 600 bps from SOFR plus 550 bps, and changed the original issue discount on the debt to 91 from talk in the range of 93 to 94, a market source remarked.

Additionally, the 101 soft call protection on the term loan debt was extended to one year from six months, the maturity was cut to six years from seven years, the MFN was changed to be set for life and the excess cash flow sweep now starts at 75%.

As before, the term loan debt has a 0.5% floor.

Recommitments are due at 2 p.m. ET on Friday, the source added.

The company’s now $515 million credit facilities still include a $50 million revolver.

Macquarie Capital and Stifel are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital from Court Square Capital Partners.

Terra Millennium is a Salt Lake City-based provider of outsourced industrial maintenance services.

M6 Midstream on deck

M6 Midstream set a lender call for 10:30 a.m. ET on Monday to launch a $600 million seven-year senior secured term loan B, a market source said.

The term loan has 101 soft call protection for six months, the source added.

Barclays, Jefferies LLC and Blackstone Credit are leading the deal that will be used with $745 million of sponsor and management equity to fund the acquisition of Midcoast East Texas system.

M6 Midstream is a Houston-based midstream company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.