Carestream Health hits secondary; Active Minerals sets changes; Extreme Reach shelved

By Sara Rosenberg

New York, Dec. 21 – Carestream Health Inc. saw its amended and extended first-and second-lien term loans break for trading on Friday, and Pure Fishing Inc.’s first-lien term loan continued to be bid in the secondary market at its original issue discount price after freeing up at that level in the previous evening.

In more happenings, Active Minerals International LLC adjusted the spread, issue price and call protection on its term loan, and Extreme Reach Inc. pulled its credit facilities from the primary market.

Carestream begins trading

Carestream Health’s amended and extended term loans emerged in the secondary market on Friday, with the roughly $747.5 million (pre-paydown) first-lien term loan (B1/B) due Feb. 28, 2021 quoted at 98 bid, 98˝ offered and the roughly $361.9 million second-lien term loan (Caa2/CCC+) due June 7, 2021 quoted at 98 bid, 99 offered, according to a trader.

Pricing on the extended first-lien term loan is Libor plus 575 basis points with a 25 bps step-down in pricing if both corporate ratings are B3/B- or better and a 1% Libor floor. The loan has 101 hard call protection for life, amortization of 5% per annum beginning on Jan. 1, 2020 and a 75% excess cash flow sweep for life.

The extended second-lien term loan is priced at Libor plus 950 bps, plus 100 bps of PIK interest effective on Dec. 31, 2019, June 30, 2020 and Dec. 31, 2020. The debt has a 1% Libor floor, and call protection of 103, 102, 101, another source said.

Both extended term loans include total net leverage, minimum liquidity and minimum EBITDA covenants.

Carestream extension fees

Carestream offered first-lien lenders a 100 bps extension fee and second-lien lenders a 200 bps extension fee. New money lenders were sold the first-and second-lien paper at an original issue discount of 98.

As a result of the amendment and extension, the first-lien term loan is being paid down from $770 million, the maturity is being extended by 20 months and pricing is increasing from Libor plus 400 bps, and the second-lien term loan is being extended by 18 months and pricing is being lifted from Libor plus 850 bps.

Credit Suisse Securities (USA) LLC is the lead on the deal.

Of the total existing first-lien term loan, about $22.7 million remains as a non-extended tranche and of the total existing second-lien term loan, about $10.1 million remains as a non-extended tranche, the source added.

Carestream is a Rochester, N.Y.-based provider of medical imaging products and IT solutions.

Pure Fishing holds steady

Pure Fishing’s $435 million first-lien term loan (B1/B) was quoted at 96 bid, 97 offered on Friday, in line with where it broke for trading late Thursday evening, a trader remarked.

Pricing on the first-lien term loan is Libor plus 450 bps with a 0% Libor floor, and it was sold at an original issue discount of 96. The debt has 101 soft call protection for one year.

During syndication, pricing on the first-lien term loan was increased from Libor plus 425 bps, the discount widened from revised talk of 97 and initial talk of 99, and the call protection was extended from six months.

The company’s $740 million of credit facilities also include a $125 million asset-based lending revolver that is expected to be undrawn at closing and a $180 million second-lien term loan that has been privately placed.

RBC Capital Markets is leading the deal that will be used to help fund the buyout of the company by Sycamore Partners from Newell Brands for around $1.3 billion.

Closing is expected this quarter, subject to customary conditions, including regulatory approval.

Pure Fishing is a designer, marketer and wholesaler of fishing equipment including rods, reels, combos, line and bait.

Active Minerals revised

Moving to the primary market, Active Minerals raised pricing on its $120 million term loan to Libor plus 550 bps from talk in the range of Libor plus 500 bps to 525 bps, moved the original issue discount to 98.5 from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the term loan has a 0% Libor floor.

Allocations went out on Friday morning, the source said.

Societe Generale and BNP Paribas Securities Corp. are leading the deal that will be used to support the company’s recently completed buyout by Golden Gate Capital from Merit Capital Partners.

Active Minerals is a Sparks, Md.-based producer and distributor of specialty industrial minerals, including kaolin and gel quality attapulgite clay minerals.

Extreme Reach withdrawn

Extreme Reach decided to pull its $440 million of credit facilities from market until the New Year, a market source told Prospect News.

The facilities consisted of a $30 million revolver (BB-), and a $410 million term loan B (B-) talked at Libor plus 625 bps to 650 bps with a 0% Libor floor, an original issue discount of 98.5 to 99 and call protection of 102 in year one and 101 in year two.

SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC and KKR Capital Markets were leading the deal that would have been used to refinance existing bank debt.

Extreme Reach is a Needham, Mass.-based video platform for integrated TV, online and mobile advertising.

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