TricorBraun gains in trading on buyout news; Protective Industrial releases price guidance

By Sara Rosenberg

New York, Jan. 7 – TricorBraun’s term loan headed higher in the secondary market on Thursday following news that the company is being acquired by Ares Management Corp. and Ontario Teachers’ Pension Plan Board.

Moving to the primary market, Protective Industrial Products Inc. released price talk on its loan transaction with launch, and Careismatic Brands emerged with new deal plans.

TricorBraun trades up

TricorBraun’s term loan rose to 99¾ bid, par ¼ offered on Thursday from 99½ bid, par offered on Wednesday as the debt is expected to be repaid in connection with the company’s buyout, according to market sources.

The company is being purchased by Ares Management Corp. and Ontario Teachers’ Pension Plan Board from AEA Investors. AEA will retain a significant investment in the company.

New debt financing is planned to help fund the buyout, sources added.

Closing on the transaction is expected this quarter, subject to customary conditions and regulatory approvals.

TricorBraun is a St. Louis-based provider of packaging products.

Protective Industrial talk

Meanwhile, in the primary market, Protective Industrial Products held its lender call on Thursday afternoon and announced talk on its $435 million seven-year covenant-lite first-lien term loan at Libor plus 425 basis points with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due on Jan. 21, the source continued.

The company’s $670 million of senior secured credit facilities also include a $75 million five-year revolver and a $160 million privately placed second-lien term loan priced at Libor plus 825 bps with a 1% Libor floor.

The second-lien term loan has hard call protection of 102 in year one and 101 in year two, the source added.

Antares Capital, Citizens Bank and Bank of Ireland are leading the deal that will be used to help fund the buyout of the company by Odyssey Investment Partners from Audax Private Equity.

Protective Industrial Products is a Latham, N.Y.-based provider of personal protective equipment and industrial safety products.

Careismatic on deck

Careismatic Brands set a lender call for noon ET on Wednesday to launch $715 million of term loans, according to a market source.

The debt is split between a $575 million seven-year covenant-lite first-lien term loan and a $140 million eight-year covenant-lite second-lien term loan, the source said.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Barclays, RBC Capital Markets, Macquarie Capital (USA) Inc. and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by Partners Group from New Mountain Capital.

Careismatic Brands is a Chatsworth, Calif.-based designer, marketer and distributor of medical apparel, corporate identity apparel, school uniforms and adaptive clothing.

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