Berry Plastics restructures with strong demand; HelpSystems, NN, Novetta price talk surfaces

By Sara Rosenberg

New York, Sept. 16 – Berry Plastics Corp. LLC on Wednesday upsized its first-lien term loan as the decision was made to downsize its bond offering, and the spread and original issue discount on the term loan was tightened.

In more happenings, HelpSystems LLC, NN Inc. and Novetta came out with price talk as their deals were presented to lenders during the session, and Xerium Technologies Inc. and Integro Ltd. joined this week’s calendar.

Berry reworks loans

Berry Plastics increased its first-lien term loan (Ba3/BB-) due in 2022 to $2.1 billion from $1.9 billion, cut pricing to Libor plus 300 basis points from talk of Libor plus 325 bps to 350 bps and changed the original issue discount to 99.5 from 99, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Commitments were due at 3 p.m. ET on Wednesday, allocations are expected on Thursday and closing is targeted for Oct. 1, the source said.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal.

Berry trims notes

Due to the upsizing of the term loan, Berry Plastics reduced its second priority senior secured notes offering to $400 million from $600 million, the source added.

Proceeds from the new debt will be used to fund the acquisition of Avintiv for about $2.45 billion from the Blackstone Group LP.

Berry Plastics is an Evansville, Ind.-based manufacturer and marketer of value-added plastic consumer packaging and engineered materials. Avintiv is a Charlotte, N.C.-based developer, producer and marketer of specialty materials used in infection prevention, personal care and high performance solutions.

HelpSystems sets guidance

HelpSystems held its bank meeting in the afternoon, and a few hours before the event kicked off, price talk on its first-and second-lien term loans was announced, a market source said.

The $300 million seven-year first-lien term loan (B2/B) is talked at Libor plus 475 bps with a step-down that is to be determined and an original issue discount of 99, and the $130 million eight-year second-lien term loan (Caa2/CCC+) is talked at Libor plus 875 bps with a discount of 98.5, the source said.

Last week it had already emerged that both term loans have a 1% Libor floor, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The $465 million credit facility also includes a $35 million revolver (B2/B).

HelpSystems being acquired

Proceeds from HelpSystems’ credit facility will be used to help fund its buyout by H.I.G. Capital from Summit Partners.

Credit Suisse Securities (USA) LLC and Antares Capital are leading the debt.

Commitments are due at 5 p.m. ET on Sep. 29.

Closing on the buyout is subject to regulatory and antitrust approval.

HelpSystems is an Eden Prairie, Minn.-based provider of system & network management, business intelligence, and security & compliance solutions.

NN discloses terms

NN came out with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $525 million seven-year covenant-light term loan that launched with a bank meeting during the session, according to a market source.

By comparison, previous filings with the Securities and Exchange Commission outlined expected pricing on the term loan at Libor plus 375 bps with a 1% Libor floor.

The company’s $625 million senior secured credit facility (Ba3/BB-) also includes a $100 million five-year revolver.

Commitments are due on Sept. 30, the source said.

KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey Inc. and Regions Capital Markets are leading the deal.

NN buying Precision

Proceeds from NN’s credit facility, $300 million of senior notes and cash on hand will be used to fund the acquisition of Precision Engineered Products Holdings Inc. for $615 million and to refinance existing debt.

The notes are backed by a commitment for a $300 million senior unsecured bridge loan that is priced at Libor plus 725 bps with a 1% Libor floor. The spread will increase by 50 bps every 90 days until it hits a specified cap.

Closing is expected by the end of October, subject to customary conditions and regulatory approval.

NN is a Johnson City, Tenn.-based manufacturer and supplier of high precision metal bearing components, industrial plastic and rubber products and precision metal components. Precision Engineered Products is an Attleboro, Mass.-based manufacturer of highly engineered precision customized solutions serving the medical, electrical, transportation and aerospace end markets.

Novetta reveals talk

Novetta disclosed guidance on its first-and second-lien term loans at its bank meeting, with the $200 million first-lien term loan launched at Libor plus 450 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months, and the $85 million second-lien term loan launched at Libor plus 850 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, a source remarked.

The company’s $325 million credit facility also includes a $40 million revolver.

Commitments are due on Sept. 28, the source added.

Jefferies Finance LLC and Societe Generale are leading the deal that will be used with equity to fund the buyout of the company by the Carlyle Group from Arlington Capital Partners.

Closing is expected later this year, subject to customary conditions and regulatory approvals.

Novetta is a McLean, Va.-based provider of advanced analytics solutions.

Xerium readies deal

Also in the primary, Xerium Technologies set a bank meeting for 10 a.m. ET in New York on Friday to launch a $495 million seven-year covenant-light term loan B, according to a market source.

Bank of America Merrill Lynch, Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance existing debt.

Xerium is a Youngsville, N.C.-based provider of industrial consumables and services, manufacturing clothing and roll covers for the paper industry.

Integro on deck

Integro surfaced with plans to hold a bank meeting on Thursday to launch a $440 million credit facility, according to a market source.

The facility consists of a $50 million revolver, a $220 million first-lien term loan, a $90 million delayed-draw term loan and an $80 million second-lien term loan, the source said.

Goldman Sachs Bank USA and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company by Odyssey Investment Partners LLC.

Closing is expected in the fourth quarter, subject to antitrust regulatory approval and approval of the UK Financial Conduct Authority, and customary conditions.

Integro is a New York-based insurance brokerage and risk management firm.

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