Flint, IPC, Blackbrush break; TravelClick, Go Daddy, Learning Care, Emmis, ECI tweak deals

By Sara Rosenberg

New York, May 2 - Flint Group finalized offer prices on its term loans and then freed up for trading on Friday, with both its U.S. first- and second-lien debt quoted above their original issue discount priced, and IPC Systems Inc. and BlackBrush TexStar LP (BBTS Borrower LP) emerged in the secondary too.

In more happenings, TravelClick Inc. widened pricing and original issue discounts and sweetened call premiums on its first- and second-lien term loans, and Go Daddy Operating Co. LLC set pricing on its term loan at the wide end of talk, revised the step-down and extended the call protection.

Also, Learning Care Group firmed pricing on its term loan at the wide end of guidance and extended the call protection, Emmis Communications Corp. modified spread and offer price talk on its term loan, and Electrical Components International Inc. (ECI) set pricing on its term loan at the high end of talk, added a step-down and tightened the original issue discount.

In addition, Grede Holdings LLC and Texas Competitive Electric Holdings Co. LLC revealed timing on their credit facilities, and Floatel International Ltd. and Green Plains Renewable Energy Inc. came out with new deal plans.

Flint hits secondary

Flint Group's credit facility began trading on Friday after firming issue prices on its term debt, with the $860 million seven-year covenant-light first-lien term loan (B1/B+) quoted by one trader at 99¼ bid, 99¾ offered and by a second trader at 99 5/8 bid, par offered, and the $205 million eight-year covenant-light second-lien term loan quoted by the first trader at 99¾ bid, par ½ offered and by the second trader at 99¾ bid, par ¾ offered.

Pricing on the U.S. first-lien term loan, as well as on a €625 million seven-year covenant-light first-lien term loan (B1/B+), is Libor/Euribor plus 375 basis points with a 1% floor, The U.S. debt was sold at a discount of 99 and the euro debt was sold at a discount of 991/2, and both tranches have a 25 bps pricing step-down at 3.25 times net first-lien leverage and 101 soft call protection for six months.

The U.S. second-lien term loan and a €150 million eight-year covenant-light second-lien term loan (Caa1/B-) are priced at Libor/Euribor plus 725 bps with a 1% floor. The U.S. loan was sold at 99¼ and the euro loan was sold at par, and both have hard call protection of 102 in year one and 101 in year two.

Flint getting revolver

Along with the term loans, Flint's credit facility provides for a €150 million five-year revolver (B1/B+) that has a 50 bps commitment fee.

During syndication of the deal, pricing on the first-lien term loans was increased from Libor/Euribor plus 350 bps, and the offer prices on the U.S. and euro first-lien term loans firmed from revised talk of 99 to 99½ and initial talk of 991/2.

Also, pricing on the second-lien loans was lifted from Libor/Euribor plus 700 bps, the discount on the U.S. second-lien loan came at the midpoint of revised talk of 99 to 99½ and in line with initial talk of 991/4, and the offer price on the euro second-lien loan firmed at the low end of revised talk of 99½ to par and tight of initial talk of 991/4.

Other changes made earlier to the credit facility included revising the incremental allowance, the restricted payments unlimited ratio prong and the consolidated EBITDA run rate add back timing qualifier, as well as removing the MFN sunset provision.

Flint being acquired

Proceeds from Flint's credit facility will be used to help fund its buyout by Goldman Sachs Merchant Banking Division and Koch Equity Development LLC from CVC Capital Partners.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Barclays and Goldman Sachs Bank USA are the lead banks on the deal, with Deutsche the left lead on the first-lien term loan and Morgan Stanley the left lead on the second-lien loan.

Closing is expected by the second half of this year, subject to customary conditions.

The term loans have a ticking fee of the full spread starting on day 31 from allocation that is not payable on cashless rolled commitments.

Flint is a Luxembourg-based supplier of inks and other print consumables.

IPC breaks

IPC Systems' credit facility hit the secondary too, with the $525 million 61/2-year first-lien term loan (B1/B-) quoted at 99¼ bid, par ¼ offered and the $350 million seven-year second-lien term loan (Caa2/CCC+) quoted at 98½ bid, a market source said.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at a discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 850 bps with a 1% Libor floor and was sold at 98. This debt is non-callable for one year, then at 103 in year two and 101 in year three.

During syndication, the spread on the first-lien term loan was raised from talk of Libor plus 450 bps to 475 bps, the discount widened from 99½ and the call protection was extended from six months, and the offer price on the second-lien loan firmed at the tight end of the 97 to 98 talk.

IPC lead banks

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays and Citigroup Global Markets Inc. are leading IPC's $900 million credit facility, which also includes a $25 million revolver (B1/B-).

Proceeds will be used to refinance existing debt.

IPC is a Jersey City, N.J.-based provider of specialized voice and data communications and trading collaboration services for the financial markets.

Blackbrush tops par

Another deal to free up was BlackBrush TexStar's $100 million incremental senior secured term loan due June 4, 2019, with levels seen at par ¾ bid, 101¾ offered, a trader remarked.

Pricing on the loan is Libor plus 650 bps with a 1.25% Libor floor and it was issued at par.

UBS Securities LLC is leading the deal that will be used to fund capital expenditures.

BlackBrush is a San Antonio-based oil production and natural gas gathering and treatment services provider.

TravelClick reworks deal

Back in the primary, TravelClick increased pricing on its $385 million seven-year covenant-light first-lien term loan (B1/B-) to Libor plus 450 bps from talk of Libor plus 375 bps to 400 bps, moved the original issue discount to 99 from 99½ and extended the 101 soft call protection to one year from six months, according to a market source.

Also, pricing on the $175 million 71/2-year covenant-light second-lien term loan (Caa2/CCC) was raised to Libor plus 775 bps from talk of Libor plus 700 bps to 725 bps, the discount was modified from 98½ from 99, and the call protection was changed to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said.

Both term loans still have a 1% Libor floor.

The company's $590 million credit facility also includes a $30 million revolver (B1/B-).

TravelClick funding buyout

Proceeds from TravelClick's credit facility will be used to help fund its $930 million purchase by Thoma Bravo LLC from Genstar Capital.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and BMO Capital Markets are leading the deal.

Recommitments for the credit facility are due at 5 p.m. ET on Tuesday, the source added.

TravelClick is a New York-based provider of revenue-generating cloud-based services for the hospitality industry.

Go Daddy updates loan

Go Daddy set the spread on its $1.1 billion seven-year covenant-light term loan B at Libor plus 375 bps, the wide end of the Libor plus 350 bps to 375 bps talk, and changed the step-down to 50 bps upon a qualified initial public offering and 3.25 times net total leverage, from 25 bps upon a qualified IPO and 25 bps at 3.5 times net first-lien leverage, according to a market source.

Additionally, the 101 soft call protection was extended to one year from six months and the MFN sunset was removed, the source remarked.

As before, the term loan has a 1% Libor floor and an original issue discount of 991/2.

The company's $1.25 billion credit facility (Ba3/B) also includes a $150 million five-year revolver.

Go Daddy recapitalizing

Proceeds from Go Daddy's credit facility will be used to refinance an existing revolver and term loan and to fund a one-time dividend.

The term loan that is being refinanced is priced at Libor plus 300 bps with a step-down to Libor plus 275 bps when the Standard & Poor's rating is B+ and the recovery rating is 2 and a 1% Libor floor.

Deutsche Bank Securities Inc., Barclays, RBC Capital Markets, KKR Capital Markets, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the deal, with Deutsche the left lead and Barclays the administrative agent.

Go Daddy is a Scottsdale, Ariz.-based provider of web hosting and domain names.

Learning Care adjusts terms

Learning Care Group firmed pricing on its $320 million covenant-light term loan at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan still has a 1% Libor floor and an original issue discount of 99.

The company's $370 million credit facility (B2/B) also includes a $50 million revolver.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used with equity to fund the buyout of the company by American Securities from Morgan Stanley Global Private Equity.

Learning Care Group is a Novi, Mich.-based provider of early education and childcare services.

Emmis changes surface

Emmis Communications lifted price talk on its $185 million seven-year senior secured term loan to Libor plus 450 bps to 475 bps from Libor plus 400 bps, modified the original issue discount talk to 98½ to 99 from 99 and added a leverage covenant to the originally covenant-light loan, according to a market source.

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

The company's $205 million credit facility (B2/B+) also includes a $20 million five-year revolver.

Recommitments were due at 5 p.m. ET on Friday, the source added.

J.P. Morgan Securities LLC is leading the deal that will fund the purchase of two radio stations for $131 million, refinance existing debt, and provide liquidity for working capital and general corporate purposes.

Pro forma for the transaction, the Indianapolis-based media company will have total leverage of 4.58 times based on pro forma expected EBITDA of $40.4 million for the fiscal year ending Feb. 28, 2015.

Electrical Components tweaked

Electrical Components finalized pricing on its $260 million seven-year term loan B at Libor plus 475 bps, the wide end of the Libor plus 450 bps to 475 bps talk, added a step-down to Libor plus 450 bps when total net leverage is 3.5 times and moved the original issue discount to 99½ from 99, a source said.

The 1% Libor floor and 101 soft call protection for one year on the term loan were left unchanged.

Recommitments were due by 11:30 a.m. ET on Friday.

Bank of America Merrill Lynch, GE Capital Markets Inc. and Fifth Third Bank are leading the $310 million credit facility (B1/B+), which also includes a $50 million five-year revolver.

Proceeds will be used to help fund the buyout of the company by KPS Capital Partners LP.

Closing is expected in the second quarter, subject to customary conditions.

Electrical Components is a St. Louis-based manufacturer of wire harnesses and value-added assembly services for consumer appliance and specialty-industrial applications.

Grede discloses timing

In more primary news, Grede Holdings revealed timing on the launch of its previously announced $675 million credit facility, with the bank meeting slated to take place on Tuesday, a market source said.

The facility consists of a $75 million revolver and a $600 million term loan.

Goldman Sachs Bank USA, GE Capital Markets, Nomura and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by American Securities LLC.

Grede is a Southfield, Mich.-based producer of engineered iron castings to the automotive, medium and heavy truck and industrial markets.

Texas Competitive sets launch

Texas Competitive Electric Holdings plans to hold a meeting at 1:30 p.m. ET on Monday to launch its $4,475,000,000 24-month debtor-in-possession financing facility, according to a market source.

The facility consists of a $1.95 billion revolver, a $1,425,000,000 term loan and a $1.1 billion delayed-draw term loan.

Company documents have said that revolver pricing is expected at Libor plus 250 bps and term loan pricing is expected at Libor plus 275 bps.

Citigroup Global Markets Inc. is leading the deal that will be used to help support normal business operations during the company's Chapter 11 process.

Texas Competitive is a Dallas-based energy company.

Floatel readies loan

Floatel International scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $650 million six-year covenant-light first-lien term loan that has 101 soft call protection for one year, according to a market source.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the deal.

Proceeds will be used to refinance existing debt.

Floatel is a Sweden-based owner and operator of offshore accommodation and construction support vessels.

Green Plains on deck

Green Plains Renewable Energy set a bank meeting for Wednesday to launch a $225 million senior secured term loan (BB), according to sources.

BMO Capital Markets and BNP Paribas Securities Corp. are leading the deal that will be used to refinance existing ethanol plant credit facilities.

Green Plains Renewable is an Omaha, Neb.-based diversified commodity-processing business with operations related to ethanol production, corn oil production, grain handling and storage, and commodity marketing and distribution services.

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