Ziply, Lummus, Herbalife, Aptean, AppLovin break; National Mentor, Domtar and more set talk

By Sara Rosenberg

New York, Feb. 9 – Ziply Fiber finalized the spread on its first-lien term loan B at the low end of guidance before freeing up for trading on Tuesday, and deals from Lummus Technology (Illuminate Buyer LLC), Herbalife Nutrition Ltd., Aptean and AppLovin Corp. broke as well.

In more happenings, National Mentor, Domtar Personal Care, DRW Holdings LLC, Ivanti Software Inc., Bombardier Recreational Products Inc., Internet Brands and Precision Medicine Group LLC announced price talk with launch.

Also, Infinite Electronics (Infinite Bidco LLC), Schweitzer-Mauduit International Inc. and Avaya Inc. joined this week’s primary calendar.

Ziply updated, trades

Ziply Fiber set pricing on its $500 million first-lien term loan B (Ba3/B+) due April 2027 at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, a market source said.

As before, the term loan B has a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

On Tuesday, the term loan made its way into the secondary market, with levels quoted at par bid, par ¾ offered, another source added.

Goldman Sachs Bank USA, BofA Securities Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal. BofA is the administrative agent.

The term loan will be used with $300 million of new senior unsecured notes to refinance and reprice an existing $787 million first-lien term loan B due 2027 priced at Libor plus 550 bps with a 0% Libor floor.

Searchlight Capital Partners and Wave Division Capital are the sponsors.

Ziply Fiber is an Everett, Wash.-based provider of communications services over a combined fiber and copper-based network.

Lummus hits secondary

Lummus Technology’s $1.047 billion covenant-lite first-lien term loan (B1/B+) due June 2027 began trading too, with levels quoted at par bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 350 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 0% Libor floor.

Lummus is a developer and licensor of mission essential technologies for the refining and petrochemical industries and a supplier of catalysts and proprietary equipment.

Herbalife frees up

Herbalife Nutrition’s $733.1 million senior secured first-lien term loan (Ba1/BB+) due August 2025 freed up as well, with levels quoted at par bid, par ½ offered, a trader remarked.

Pricing on the term loan is Libor plus 250 bps with a 0% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

Jefferies LLC, Rabobank, BofA Securities Inc., Citizens, Citigroup Global Markets Inc., Fifth Third, Mizuho and BBVA are leading the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 0% Libor floor.

Herbalife is a Los Angeles-based nutrition and weight management company.

Aptean begins trading

Aptean’s fungible $100 million incremental first-lien term loan also broke, with levels quoted at par bid, 101 offered, according to a market source.

Pricing on the incremental term loan is Libor plus 425 basis points with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection through May.

Golub Capital is the left lead on the deal that will be used to refinance an existing non-fungible $80 million first-lien term loan-2 and to put cash on balance sheet.

Pro forma for the transaction, the first-lien term loan will total $845 million.

Aptean is an Alpharetta, Ga.-based provider of mission-critical enterprise software solutions.

AppLovin breaks

AppLovin’s $300 million add-on term loan and repriced $300 million term loan emerged in the secondary market, with levels quoted at par 1/8 bid, par 3/8 offered, a market source said.

Pricing on the term loan debt is Libor plus 375 bps with a 0% Libor floor and it was issued at par.

During syndication, pricing on the add-on term loan was lowered from Libor plus 400 bps and the issue price was tightened from 99.75, and the repricing of the existing term loan down from Libor plus 400 bps was added to the transaction.

Upon completion, the add-on loan and repriced loan will be fungible with the company’s existing $1.2 billion term loan that is already priced at Libor plus 375 bps with a 0% Libor floor, creating one $1.8 billion term loan tranche.

J.P. Morgan Securities LLC, BofA Securities Inc. and KKR Capital Markets are leading the deal.

The add-on term loan will be used for acquisition funding and general corporate purposes.

AppLovin is a Palo Alto, Calif.-based mobile monetization platform that enables performance-based user acquisition campaigns for mobile game and other app developers.

National Mentor guidance

Moving to the primary market, National Mentor held its lender call on Tuesday and announced price talk on its $1.895 billion of credit facilities, according to a market source.

The $1.43 billion seven-year first-lien term loan (B1/B), $165 million delayed-draw first-lien term loan (B1/B) and $50 million first-lien term loan C (B1/B) are talked at Libor plus 375 bps to 400 bps with a 0.75% Libor floor and an original issue discount of 99, and the $250 million eight-year second-lien term loan (Caa1/CCC+) is talked at Libor plus 750 bps with a 0.75% Libor floor and an original issue discount of 98.5, the source said.

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.

Commitments are due at 5 p.m. ET on Feb. 17, the source added.

Goldman Sachs Bank USA, UBS Investment Bank, Barclays, RBC Capital Markets, KeyBanc Capital Markets, BMO Capital Markets, BofA Securities Inc. and Fifth Third are leading the deal that will be used to refinance existing debt and fund a distribution to current shareholders.

Centerbridge is the sponsor.

National Mentor is a Boston-based provider of home- and community-based health and human services.

Domtar sets talk

Domtar Personal Care launched on its morning call its $620 million seven-year covenant-lite first-lien term loan at talk of Libor plus 450 bps to 475 bps with a 0.75% Libor floor and an original issue discount of 99, a market source remarked.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Feb. 18.

Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp., RBC Capital Markets and CIBC are leading the deal that will be used to help fund the buyout of the company by American Industrial Partners from Domtar Corp. for $920 million.

Closing is expected this quarter, subject to receipt of regulatory approvals and other customary conditions.

Domtar Personal Care is a manufacturer and distributor of personal care products.

DRW proposed terms

DRW Holdings came out with talk of Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $500 million seven-year first-lien term loan (BB-) that launched with a call in the morning, a market source said.

Commitments are due on Feb. 23, the source added.

Jefferies LLC is leading the deal, which will be used to refinance the company’s existing $297 million senior secured first-lien term loan issued in 2019, expand its trading capital and pay related fees and expenses.

DRW is a technology-driven electronic trading firm.

Ivanti launches

Ivanti Software released talk on its non-fungible $440 million covenant-lite add-on first-lien term loan B due Dec. 1, 2027 at Libor plus 425 bps to 450 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months with its morning call, a market source remarked.

Commitments are due at noon ET on Feb. 18, the source added.

Morgan Stanley Senior Funding Inc., UBS Investment Bank, BMO Capital Markets and Antares Capital are leading the deal that will be used to fund the acquisition of Cherwell Software, a provider of enterprise service management solutions. and to pay related fees and expenses.

Ivanti is a South Jordan, Utah-based company that automates IT and security operations to discover, manage, secure and service from cloud to edge.

Bombardier guidance

Bombardier Recreational Products announced original issue discount talk of 98.75 to 99 on its fungible $300 million add-on term loan B-1 (Ba3/BB-) due May 23, 2027 that launched with a call in the morning, according to a market source.

Pricing on the add-on term loan is Libor plus 200 bps with a 0% Libor floor, in line with the existing roughly $1.2 billion term loan B-1.

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

RBC Capital Markets, Citigroup Global Markets Inc., BMO Capital Markets and TD Securities (USA) LLC are leading the deal, which will be used with cash on hand to repay an existing roughly $600 million term loan B-2 and fees and expenses associated with the transaction.

Bombardier is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of powersports vehicles and marine products.

Internet seeks loans

Internet Brands emerged with plans to hold a lender call at 1 p.m. ET to launch a fungible $300 million incremental covenant-lite first-lien term loan due September 2024 talked with a par issue price, market sources remarked.

Pricing on the incremental term loan is Libor plus 375 bps with a 1% Libor floor and the debt has 101 soft call protection through June 18, 2021.

In addition, the company launched on Tuesday a $575 million eight-year second-lien term loan with talk of Libor plus 625 bps with a 0% Libor floor, an original issue discount of 99.5 and hard call protection of 102 in year one and 101 in year two, sources continued.

Commitments for the incremental first-lien term loan are due at 5 p.m. ET on Thursday and commitments for the second-lien term loan are due at 5 p.m. ET on Feb. 17.

Internet lead banks

Credit Suisse Securities (USA) LLC, KKR Capital Markets and RBC Capital Markets are leading Internet Brands’ term loans, with Credit Suisse the left lead on the incremental term loan and RBC the left lead on the second-lien term loan.

Proceeds from the incremental term loan will be used to fund tuck-in acquisitions and for general corporate purposes, and the second-lien term loan will be used to refinance existing debt.

Internet Brands is an El Segundo, Calif.-based online media and software services organization.

Precision OID talk

Precision Medicine launched on its call its fungible $75 million add-on covenant-lite first-lien term loan B due November 2027 with original issue discount talk of 99.75 to par, a market source said.

Like the existing term loan B, the add-on term loan is priced at Libor plus 375 bps with a 0.75% Libor floor and has 101 soft call protection through May 18.

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

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Blackstone Securities Partners LP and Mizuho are leading the deal that will be used to repay revolver drawings incurred in conjunction with an acquisition, fund cash to the balance sheet and pay related transaction fees and expenses.

Precision Medicine is a specialized health care services company that provides product development and commercialization support for pharmaceutical and life sciences businesses.

Infinite on deck

Infinite Electronics set a lender call for 11 a.m. ET on Thursday to launch $980 million of senior secured credit facilities, according to a market source.

The facilities consist of a $100 million five-year revolver, a $640 million seven-year first-lien term loan and a $240 million eight-year second-lien term loan, the source said.

The company is also getting a $55 million first-lien delayed-draw term loan and a $20 million second-lien delayed-draw term loan, both of which were privately placed.

Jefferies LLC, Antares Capital, RBC Capital Markets, Wells Fargo Securities LLC, Golub Capital and TD Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by funds affiliated with Warburg Pincus and to pay related fees and expenses.

Infinite Electronics is an Irvine, Calif.-based supplier of electronic components serving the needs of engineers.

Schweitzer readies deal

Schweitzer-Mauduit scheduled a lender call for 10:30 a.m. ET on Wednesday to launch a $350 million seven-year senior secured term loan (BB-) talked at Libor plus 375 bps to 400 bps with a 0.75% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Feb. 23, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition of Scapa Group plc, a UK-based innovation, design, and manufacturing solutions provider for healthcare and industrial markets, for 210 pence in cash per scheme share. The transaction implies an equity value of about $551.9 million.

Closing is expected in the second quarter.

At close, net debt to EBITDA is estimated to be between 4x and 4.5x. The company anticipates its credit facility covenants will be amended in conjunction with the transaction with net debt to EBITDA covenants of 5.5x as of the end of 2021 and 4.75x as of the end of 2022.

Schweitzer-Mauduit is an Alpharetta, Ga.-based performance materials company.

Avaya joins calendar

Avaya will hold a lender call at 11 a.m. ET on Wednesday to launch a $743 million incremental term loan B-2, according to a market source.

BofA Securities Inc. is leading the deal that will be used with $100 million of balance sheet cash to refinance a non-extended term loan due 2024.

Avaya is a Santa Clara, Calif.-based business communications company.

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