Phoenix Services shutting early; U.S. Farathane, Electrical Components rework issue prices

By Sara Rosenberg

New York, May 19 – In the primary market on Thursday, Phoenix Services (Metal Services LLC) moved up the commitment deadline on its incremental term loan and amendment and extension of a portion of its existing term loan, and U.S. Farathane LLC and Electrical Components International Inc. modified the original issue discounts on their incremental term loans.

Additionally, CHG Healthcare Services Inc. and Generation Brands Holdings Inc. came out with price talk with launch, and AmWINS Group LLC approached lenders with a repricing transaction.

Phoenix changes deadline

Phoenix Services accelerated the commitment deadline to noon ET on Monday from 5 p.m. ET on Tuesday on its incremental first-lien term loan due June 30, 2019 and amendment and extension of a portion of its June 30, 2017 term loan to June 30, 2019, a market source remarked.

Both the incremental term loan and the amended and extended term loan are talked at Libor plus 750 basis points with a 1% Libor floor, an original issue discount of 98.5 and 101 hard call protection for one year.

The amount of the incremental loan and amended and extended loan is still to be determined.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal.

Proceeds from the incremental term loan will be used to refinance a portion of the June 2017 term loan.

Any non-extended money will be priced at Libor plus 500 bps with a 1% Libor floor, same as today, and will not benefit from the hard call protection.

Phoenix Services is a provider of industrial services.

U.S. Farathane tweaked

U.S. Farathane changed the original issue discount on its fungible $80 million incremental term loan B due Dec. 23, 2021 to 99.25 from 99, and left pricing at Libor plus 475 bps with a 1% Libor floor, a market source said.

As initially planned, in connection with the incremental loan, the company is trimming pricing on its existing $474.5 million term loan B due Dec. 23, 2021 to Libor plus 475 bps with a 1% Libor floor from Libor plus 575 bps with a 1% Libor floor, and the maximum total leverage ratio is being adjusted to provide a roughly 30% cushion pro forma for the proposed incremental loan.

Recommitments were due at 2 p.m. ET on Thursday, the source continued.

Bank of America Merrill Lynch, Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used, in addition to repricing/refinancing the existing term loan B, to make a distribution to equity holders.

U.S. Farathane is an Auburn Hills, Mich.-based manufacturer of single-shot and multi-shot injection molded, compression molded and extruded components and assemblies, primarily for use in lightweight vehicles.

Electrical Components updated

Electrical Components revised the original issue discount on its fungible $40 million incremental term loan B (B+) due May 2021 to 99.25 from 99, according to a market source.

The incremental term loan is still priced at Libor plus 475 bps with a 1% Libor floor, which matches existing term loan pricing.

Recommitments were due at noon ET on Thursday, the source said.

Bank of America Merrill Lynch is leading the debt that will be used to fund the acquisition of Whitepath Fab Tech Inc., an Ellijay, Ga.-based supplier of control boxes, wire harnesses and value added assembly services to the HVAC industry.

Closing on the acquisition is expected this month.

Electrical Components, a portfolio company of KPS Capital Partners LP, is a St. Louis-based manufacturer of wire harnesses and provider of value-added assembly services for the home appliance industry.

CHG reveals guidance

CHG Healthcare Services held its lender meeting on Thursday morning, launching its $990 million seven-year senior secured term loan B (B1) with talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on June 2, the source added.

Goldman Sachs & Co., Barclays, Citigroup Global Markets Inc. and Jefferies Finance LLC are leading the loan that will be used with $300 million of privately placed second-lien notes to refinance existing debt and fund a dividend.

CHG is a Salt Lake City-based health care staffing firm.

Generation Brands sets talk

Generation Brands came out with price talk on its $180 million six-year first-lien term loan (B1/B) and $80 million 6.5-year second-lien term loan (Caa1/CCC+) as the debt launched to lenders with an afternoon bank meeting, according to a market source.

Talk on the first-lien term loan is Libor plus 550 bps with a 1% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 1,000 bps with a 1% Libor floor and a discount of 97, the source said.

The company’s $310 million credit facility also includes a $50 million ABL revolver.

Commitments are due at noon ET on June 6, the source added.

Deutsche Bank Securities Inc., Barclays and ING are leading the deal that will be used to help fund the buyout of the company by AEA Investors.

Generation Brands is a designer and provider of lighting fixtures.

AmWINS holds call

AmWINS emerged in the morning with plans to host a lender call at 3:30 p.m. ET to launch a repricing of its $902 million first-lien covenant-light term loan due September 2019 that is talked at Libor plus 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

The transaction will take term loan pricing down from Libor plus 425 bps with a 1% Libor floor.

Commitments are due at 5 p.m. ET on Tuesday, the source said.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Barclays are the joint lead arrangers on the deal.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

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