Vewd Software tweaks deal; DigiCert, WestJet update timing; Ascend, Apex disclose talk

By Sara Rosenberg

New York, Aug. 5 – In the primary market on Monday, Vewd Software reduced the size of its first-lien term loan, raised the spread, widened the original issue discount and shortened the maturity.

Also, DigiCert Inc. and WestJet Airlines Ltd. moved up the commitment deadlines for their first-lien term loans.

Furthermore, Ascend Performance Materials and Apex Tool Group LLC released price talk with launch, and Hyland Software Inc., US Foods Holding Corp. and Hyperion Materials & Technologies joined this week’s primary calendar.

Vewd changes emerge

Vewd Software scaled back its first-lien term loan to $125 million from $145 million, lifted pricing to Libor plus 700 basis points from Libor plus 600 bps, adjusted the original issue discount to 98 from 99 and shortened the maturity to five years from six years, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

The company’s now $135 million of credit facilities also include a $10 million five-year revolver talked at Libor plus 500 bps with a 0% Libor floor.

Commitments are due on Aug. 14, the source added.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing debt and buy out a minority shareholder. The buyout is smaller due to the term loan downsizing.

Vewd is a Norway-based smart TV OTT software provider.

DigiCert revises deadline

DigiCert accelerated the commitment deadline for its $1.55 billion seven-year covenant-lite first-lien term loan (B2/B-) to 5 p.m. ET on Wednesday from 5 p.m. ET on Aug. 13, a market source remarked.

Talk on the first-lien term loan is Libor plus 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $2,225,000,000 of credit facilities also include a $125 million revolver (B2/B-) and a $550 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Macquarie Capital (USA) Inc., UBS Investment Bank, Barclays, Deutsche Bank Securities Inc., Golub and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Clearlake Capital Group LP and TA Associates, an existing investor. Clearlake and TA will be equal partners in the company.

Closing is expected in the second half of this year, subject to customary regulatory approvals and conditions.

DigiCert is a Lehi, Utah-based provider of digital certificates, certificate management solutions and public-key infrastructure solutions.

WestJet accelerated

WestJet Airlines moved up the commitment deadline for its $1,955,000,000 seven-year first-lien term loan to 5 p.m. ET on Tuesday from noon ET on Thursday, according to a market source.

Talk on the term loan is Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $2,305,000,000 of credit facilities (Ba2/BB-/BB+) also include a $350 million revolver.

Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, Citigroup Global Markets Inc., UBS Investment Bank, BMO Capital Markets, Bank of Nova Scotia and TD Securities (USA) LLC are leading the deal.

Proceeds will be used with equity to fund the buyout of the company by Onex Corp. for C$31.00 per share. The transaction is valued at about C$5 billion, including assumed debt.

Closing is expected in the latter part of 2019 or early 2020, subject to court and shareholder approval, and regulatory approvals.

WestJet is a Calgary, Alta.-based airline company.

Ascend sets guidance

Ascend Performance Materials held its bank meeting on Monday and launched its $1.1 billion term loan B (B1) at talk of Libor plus 475 bps to 500 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

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

Commitments are due at noon ET on Aug. 15, the source said.

BofA Securities Inc., Goldman Sachs Bank USA, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and fund a dividend.

Ascend Performance Materials is a Houston-based provider of chemicals, fibers and plastics.

Apex reveals talk

Apex Tool Group came out with talk of Libor plus 550 bps with two 25 bps step-downs at trailing gross secured leverage ratio of less than 4.5x and less than 4.0x, a 1.25% Libor floor and 101 soft call protection for six months on its $874 million term loan B due August 2024 that launched with a call during the session, a market source said.

The company’s $1,049,000,000 of senior secured credit facilities also include a $175 million revolver due April 2024.

Commitments are due at noon ET on Aug. 16, the source continued.

Barclays is leading the deal that will be used to amend and extend by 2.5 years an existing revolver and term loan B. Current term loan B pricing is Libor plus 375 bps with a 1.25% Libor floor.

With the extension, there will be come lender-friendly covenant modifications.

Lenders are being offered a 50 bps fee, the source added.

Apex Tool, a Bain Capital portfolio company, is a Sparks, Md.-based manufacturer and supplier of hand and power tools for industrial, commercial and demanding do-it-yourself applications.

Hyland readies deal

Hyland Software set a lender call for 10:30 a.m. ET on Tuesday to launch $320 million of incremental term loans, according to a market source.

The debt consists of a $205 million incremental first-lien term loan due July 1, 2024 priced at Libor plus 350 bps with a 0.75% Libor floor and a $115 million incremental second-lien term loan due July 7, 2025 priced at Libor plus 700 bps with a 0.75% Libor floor, in line with existing first-and second-lien loan pricing, the source said.

Included in the incremental first-lien term loan is 101 soft call protection for six months, and the incremental second-lien term loan has 101 hard call protection until April 2020.

Commitments are due on Aug. 13, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a distribution to shareholders.

Hyland, a Thoma Bravo portfolio company, is a Westlake, Ohio-based enterprise content-management software developer.

US Foods on deck

US Foods set a lender call for Tuesday to launch its previously announced $1.5 billion seven-year incremental senior secured term loan B, a market source remarked.

The term loan is talked at Libor plus 200 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source added.

Commitments are due at noon ET on Aug. 15.

J.P. Morgan Securities LLC and BofA Securities Inc. are leading the deal that will be used with existing liquidity resources to fund the $1.8 billion acquisition of SGA’s Food Group of Companies.

Closing is subject to regulatory approval and other customary conditions.

US Foods is a Rosemont, Ill.-based food company and foodservice distributor. SGA’s Food Group of Companies is a Scottsdale, Ariz.-based provider of foodservice solutions.

Hyperion coming soon

Hyperion Materials & Technologies will hold a lender call on Tuesday to launch first-and second-lien term loans, according to a market source.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to refinance existing debt.

Hyperion Materials is a Worthington, Ohio-based provider of hard and super-hard materials.

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