76 International Financing Review September 8 2018Morgan Stanley leads alongside Royal Bank of
Canada and Macquarie.
The financing comprises a US$1.08bn
first-lien term loan, a US$420m second-lien
term loan, and a US$100m revolving credit
facility. The term loans are being offered on
a covenant-lite basis while the revolving
credit facility includes a springing leverage
covenant.
The seven-year first-lien loan is being
guided in the 400bp-425bp over Libor range
with a 0% floor and a discount in the 99-99.5
range. The loan will have six months of soft
call protection at 101.
The eight-year second-lien loan went to
the market in the 800bp-825bp over Libor
range with a 0% floor and a discount in the
98.5-99 range. The tranche includes hard
call protection of 102/101.
CORRECT CARE SOLUTIONS, an outsourced
medical care provider for correctional
facilities, has launched a US$675m loan.
The transaction comprises a US$500m
seven-year first-lien term loan, a US$110m
eight-year second-lien term loan and a
US$65m revolving credit facility.
The financing will back the company’s
purchase by private equity firm HIG Capital.
At the same time, HIG is buying healthcare
services provider Correctional Medical
Group Companies from the existing HIG
fund that owns it. Correct Care and
Correctional Medical will be merged.
Credit Suisse leads the transaction with
Jefferies, Ares and Cantor.
Guidance on the first-lien loan opened at
550bp over Libor with a 0% floor and a
discount of 99. The second-lien loan is being
guided at 900bp over Libor with a 0% floor
and a discount of 98.
The first-lien loan includes six months of
soft call protection at 101. The second-lien
loan is expected to have hard call protection
of 102/101.
The corporate rating is B3/B-. The first-lien
loan is rated B2/B-, while the second-lien
loan is rated Caa2/CCC.HIG is buying Correct Care Solutions from a
consortium including private equity firms
Audax Group and Frazier Healthcare Partners.
MUFG and Societe Generale launched a
US$350m credit facility backing Alinda
Capital Partners’ acquisition of a 100%
interest in the Class B membership of
SEMGROUP CORP’s Maurepas Pipeline.
The 5.5-year senior secured credit facility
is expected to price in the 175bp-187.5bp
over Libor range.
SemGroup will retain 100% interest in the
project’s Class A membership, and will
continue to operate the Maurepas Pipeline.
The Maurepas Pipeline is made up of
three pipelines, for which construction was
completed in 2017, connecting Shell’s
Louisiana refining assets.ENCINO SHOPS US$550m SECOND-LIENEnergy company ENCINO ACQUISITION PARTNERS
HOLDINGS is lining up a US$550m second-lien
term loan to finance its purchase of
Chesapeake Energy’s Ohio Utica assets.
Jefferies is leading with Citigroup and BMO.
Pricing on the seven-year loan is expected
to be 625bp over Libor with a 1% floor and a
discount of 99. The deal includes one year of
non-callability followed by call protection of
102/101.
Encino has agreed to buy the assets from
Chesapeake for US$2bn. The transaction is
expected to close in the fourth quarter.
The Canada Pension Plan Investment
Board created Encino Acquisition in 2017
along with Encino Energy.
AMERICAN AIRLINES is in the market with a
US$300m fungible add-on to an existing
term loan that matures in October 2021.
The company is offering to pay lenders
200bp over Libor with a 0% floor. JP Morgan is
arranging the loan, which will be sold at
99.5 cents on the dollar and has 101 soft call
protection for six months.
Existing corporate ratings are Ba3/BB- and
facility ratings are Ba1/BB+.
In May the company reprised and
extended a US$1.825bn term loan.
Foods supplier 8TH AVENUE FOOD AND
PROVISIONS is lining up US$625m of loans.
Proceeds will back the company’s spin-off
from Post Holdings, which is being
supported with an investment from Thomas
H Lee Partners.
Post will own 60.5% of the company after
the capitalisation from Thomas H Lee,
which is contributing US$875m of cash. The
company’s leverage will be 5.5 times.
The debt comprises a US$500m first-lien
seven-year term loan and a US$125m
second-lien eight-year term loan.
Barclays is leading with Goldman Sachs,
BMO, Credit Suisse, Citigroup and Wells Fargo. A
bank meeting is scheduled for Tuesday.QUORUM SEEKS US$230m LBO LOANEnergy industry software company QUORUM
BUSINESS SOLUTIONS is lining up a US$230m
seven-year term loan to back its buyout by
private equity firm Thoma Bravo.
Credit Suisse is leading the financing with
Macquarie.
Guidance opened at 450bp over Libor
with a 0% floor and a discount of 99.5. The
term loan will have six months of soft call
protection at 101.
The issuer is rated B3/B-. The loan is rated
B2/B.
Quorum lined up a US$140m term loan in
August 2014 to finance its purchase by Silver
Lake. The loan priced at 475bp over Libor
with a 1% floor.
THE CONTAINER STORE has launched a
repricing and extension of its US$292.5m
term loan. JP Morgan leads.
The company is asking lenders to drop
pricing to 500bp over Libor with a 1% floor and
extend the maturity by two years to 2023. The
discount is expected to be 99. The deal will
include one year of soft call protection at 101.
In August 2017, the retailer increased the
spread on the loan to 700bp over Libor. The
loan originally priced in March 2013 at
425bp over Libor. At that time, the company
also extended the maturity to August 2021
from April 2019.
Moody’s moved the company’s outlook to
positive from stable in July due to earnings
growth tied to a 2017 optimisation
programme. The ratings agency said lease-
adjusted leverage was 4.3 times versus 4.6
times when it affirmed ratings in July 2017.
The borrower and the loan are rated B2/B.
Consulting firm AHEAD has sealed a
US170m deal backing a dividend
recapitalisation.
Churchill Asset Management and Regions
Capital Markets were the joint lead arrangers
and joint bookrunners on the deal. Regions
Bank served as the administrative agent.
The deal comprises a US$128m six-year
first-lien term loan and a US$42m second-
lien term loan.
Court Square Capital, a middle market
private equity firm, is Ahead’s financial
sponsor.ULTRA CLEAN FLOATS PRICINGULTRA CLEAN HOLDINGS, which makes
equipment to produce semiconductors,
circulated guidance on US$415m of loans
backing the acquisition of Quantum Global
Technologies.
Barclays leads the deal, which comprises a
US$350m seven-year term loan and a
US$65m five-year revolving credit facility.
Pricing opened in the 375bp-400bp over
Libor range with a 0% floor and a discount ofUS LEVERAGED LOANS
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 BAML 473 96,206.58 10 .2
2 JP Morgan 432 95,651.56 10 .2
3 Wells Fargo 328 73,435.48 7 .8
4 Barclays 235 54,872.98 5.8
5 Credit Suisse 233 50,243.52 5.3
6 Goldman Sachs 226 49,033.83 5. 2
7 Deutsche Bank 219 4 5,423.42 4 .8
8 Citigroup 197 4 1,826.02 4 .4
9 Morgan Stanley 159 35,227.34 3. 7
10 RBC 197 3 4,939.49 3. 7
Total 1,656 94 1,710.81
Excluding Project Finance.
Source: Thomson Reuters SDC code: P29 Loans 2250 p67-80.indd 76 07/09/2018 18:55:12