Paysafe, Calpine, Rexnord updated; Gigamon, CHG, SiteOne, Learfield set talk with launch

By Sara Rosenberg

New York, Nov. 30 – In the primary market on Thursday, Paysafe Group plc moved some funds between its U.S. first-and second-lien term loans and reduced the spread on its euro first-lien loan, Calpine Corp. set the spread on its term loans at the wide side of guidance but firmed the issue price on the loans at the tight end of talk, and Rexnord LLC added a pricing step-down to its term loan and accelerated the commitment deadline.

Also, Gigamon Inc., CHG Healthcare Services Inc., SiteOne Landscape Supply Inc. and Learfield Communications LLC announced price talk with launch, and VICI Properties Inc., Compass Power Generation LLC, HanesBrands, Go Wireless and Envigo joined the near-term calendar.

Paysafe revised

Paysafe increased its U.S. seven-year covenant-light first-lien term loan to $1.01 billion from $957.5 million, while leaving pricing at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

In addition, the company trimmed its U.S. eight-year covenant-light second-lien term loan to $200 million from $250 million, the source said. This tranche is still priced at Libor plus 725 bps with a 1% Libor floor and an original issue discount of 99.

And, pricing on the company’s $957.5 million equivalent euro seven-year covenant-light first-lien term loan was cut to Euribor plus 325 bps from Euribor plus 350 bps. The 0% floor and discount of 99.5 were unchanged.

As before, Paysafe is also getting a $250 million equivalent euro eight-year covenant-light second-lien term loan priced at Euribor plus 700 bps with a 0% floor and a discount of 99.

The first-lien term loan debt still has 101 soft call protection for six months, and the second-lien term loan debt still has call protection of 102 in year one and 101 in year two.

Paysafe lead banks

Credit Suisse, Jefferies, Morgan Stanley, BMO and Deutsche Bank are the lead arrangers on Paysafe’s term loans.

Recommitments for the U.S. debt were due at the close of business on Thursday and for the euro debt are due at 11 a.m. UK time on Friday.

Allocations are targeted for Friday, the source added.

The term loans will be used to help fund the buyout of the company by Blackstone and CVC.

Paysafe is an Isle of Man-based provider of end-to-end payment solutions.

Calpine sets pricing

Calpine firmed pricing on its $1,564,000,000 term loan B-5 due January 2024, $540 million term loan B-6 due January 2023 and $555 million term loan B-7 due May 2023 at Libor plus 250 bps, the high end of the Libor plus 225 bps to 250 bps talk, and finalized the issue price on all of the loans at par, the tight end of the 99.75 to par talk, according to a market source.

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

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the $2,659,000,000 in term loans (Ba2/BB) that will be used to reprice an existing term loan B-5 down from Libor plus 275 bps with a 0.75% Libor floor, and existing term B-6 and term B-7 loans down from Libor plus 275 bps with a 0% Libor floor.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

Rexnord adds step

Rexnord added a step-down to Libor plus 200 bps with corporate ratings of Ba3/BB- to its $800 million covenant-light first-lien term loan due August 2024 (Ba2/BB+), a market source remarked.

Current corporate ratings are B1/BB-.

Initial pricing on the loan remained at Libor plus 225 bps with a 0% Libor floor and a par issue price, and the loan still has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Friday, accelerated from 5 p.m. ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC, BMO Capital Markets, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, Goldman Sachs Bank USA and Mizuho are leading the deal that will be used with $500 million of senior notes and cash on hand to refinance an existing $1,594,000,000 covenant-light first-lien term loan due August 2023 priced at Libor plus 275 bps with a 1% Libor floor.

Lenders continue to be offered a 10 bps extension fee.

Rexnord is a Milwaukee-based industrial company comprising two strategic platforms: process & motion control and water management.

Gigamon releases talk

Gigamon held its bank meeting on Thursday and announced price talk on its $400 million seven-year covenant-light first-lien term loan (B) as Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, according to a market source. The debt has 101 soft call protection for six months.

Commitments are due on Dec. 18, the source said.

The company’s $600 million of senior secured credit facilities also include a $50 million revolver (B) and a $150 million privately placed eight-year second-lien senior secured term loan (CCC).

Jefferies LLC is leading the deal that will be used with up to $838 million of equity to fund the acquisition of the company by Evergreen Coast Capital Corp. (Elliott Management) for $38.50 per share in cash, or about $1.6 billion.

Closing is expected in the first quarter of 2018, subject to customary conditions, including regulatory approvals and shareholder approval.

Gigamon is a Santa Clara, Calif.-based provider of active visibility into physical and virtual network traffic, enabling stronger security and performance.

CHG floats terms

CHG Healthcare Services came out with talk of Libor plus 275 bps to 300 bps with a 1% Libor floor and 101 soft call protection for six months on its $200 million incremental first-lien term loan and repricing of its existing $1,113,700,000 first-lien term loan that launched with an afternoon call, a market source remarked.

The incremental loan is talked with an original issue discount of 99.75 and the repricing is offered at par, the source added.

Amendment consents are due on Dec. 6 and dollar commitments are due on Dec. 7.

Jefferies LLC is leading the deal.

The incremental loan will be used to repay a portion of the company’s existing second-lien term loan and the repricing will take the existing first-lien term loan down from Libor plus 325 bps with a 1% Libor floor.

CHG is a Salt Lake City-based health care staffing firm.

SiteOne discloses guidance

SiteOne Landscape Supply held its lender call in the morning, launching its $50 million add-on term loan B due April 29, 2022 and repricing of its existing $298 million covenant-light term loan due April 29, 2022 at talk of Libor plus 275 bps with a 1% Libor floor, an original issue discount of 99.875 on the add-on, a par issue price on the repricing and 101 soft call protection for six months, according to a market source.

Commitments are due on Dec. 7, the source said.

UBS Investment Bank is leading the deal that is expected to close in December.

The add-on will be used to repay ABL revolver borrowings and the repricing will take the existing term loan down from Libor plus 350 bps with a step-down to Libor plus 325 bps at 2.75 times leverage and a 1% Libor floor.

SiteOne is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

Learfield reveals OID

Learfield Communications disclosed original issue discount talk of 99.5 on its $364 million incremental covenant-light first-lien term loan due Dec. 1, 2023 with its afternoon lender call, a market source remarked.

The incremental loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and is getting 101 soft call protection for six months.

Including the incremental loan, the first-lien term loan will total $837 million.

Commitments are due at noon ET on Dec. 12.

Deutsche Bank Securities Inc., UBS Investment Bank, KKR Capital Markets, Antares Capital, SunTrust Robinson Humphrey Inc., Barclays, Jefferies LLC, J.P. Morgan Securities LLC and RBC Capital Markets are leading the deal that will be used to fund the merger of Learfield and IMG College, a subsidiary of WME | IMG.

The company is also seeking an amendment from first-and second-lien loan lenders regarding the restricted payments made in connection with the transaction and the incremental equivalent debt incurred in the transaction.

Learfield is a Plano, Texas-based provider of collegiate sports multimedia rights administration and marketing services. IMG College represents schools, conferences and other collegiate institutions across multimedia rights, licensing, marketing, ticketing, seating, publishing, radio and digital.

VICI readies deal

VICI Properties emerged with plans to hold a bank meeting at 10:30 a.m. ET in New York on Tuesday to launch $2.75 billion of senior secured credit facilities, a market source said.

The facilities consist of a $400 million revolver and a $2.35 billion term loan, the source added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal that will be used with equity to refinance an existing first-lien term loan and first-lien notes, repurchase existing mezzanine debt and to fund the acquisition of Harrah’s Las Vegas Hotel and Casino from Caesars Entertainment Corp. for about $1.14 billion.

Closing is expected this month.

VICI Properties is a Las Vegas-based real estate investment trust that owns gaming, hospitality and entertainment destinations.

Compass Power on deck

Compass Power Generation set a lenders’ presentation for 10:30 a.m. ET on Friday to launch $760 million of senior secured credit facilities (BB-), according to a market source.

The facilities consist of a $60 million revolver and a $700 million term loan B, the source said.

Morgan Stanley Senior Funding Inc. and MUFG are leading the deal that will be used to refinance existing debt, fund a distribution to Starwood Energy Group, fund a capital expenditure reserve and pay transaction costs.

Compass Power Generation, a Starwood Energy Group portfolio company, is a 1.2 GW natural gas power portfolio.

HanesBrands coming soon

HanesBrands scheduled a lender call for Friday to launch a $500 million seven-year term loan B (Baa3/BBB-) talked at Libor plus 200 bps to 225 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Dec. 13, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing $318.6 million term loan B due April 2022 priced at Libor plus 250 bps with a 0.75% Libor floor.

The company is also looking to increase the size, reduce the rate and extend the maturity of its term loan A, reduce the rate and extend the maturity of its revolver, and achieve other favorable credit agreement improvements.

HanesBrands said in a news release that the amendment would enhance the support of its global growth model, including its value-creating capital allocation strategy.

Closing is expected by year end.

HanesBrands is a Winston Salem, N.C.-based marketer of everyday basic apparel.

Go Wireless joins calendar

Go Wireless will hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $400 million senior secured term loan, according to a market source.

UBS Investment Bank is leading the deal that will be used to refinance existing debt, fund a dividend and for general corporate purposes.

Go Wireless is a Verizon authorized retailer.

Envigo plans meeting

Envigo set a lender meeting for Monday to launch a $300 million six-year term loan talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Dec. 14, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Envigo is a N.J.-based provider of nonclinical contract research services and research models.

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