Gigamon, CenseoHealth/Advance Health, Royal Oak free to trade; Go Wireless revisions surface

By Sara Rosenberg

New York, Dec. 19 – A few deals surfaced in the second market during Tuesday’s session, including Gigamon Inc., CenseoHealth/Advance Health (Chloe Ox Parent LLC) and Royal Oak Enterprises LLC (Ozark Holdings LLC).

Moving to the primary market, Go Wireless decreased the size of its senior secured term loan and officially increased the spread.

Gigamon starts trading

Gigamon’s credit facilities freed up in the morning, with the $400 million seven-year covenant-light first-lien term loan (B2/B/BB-) quoted at 99½ bid, par ½ offered and the $150 million privately placed eight-year second-lien term loan (Caa2/CCC/CCC+) quoted at 99 bid, 101 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 850 bps and was issued at a discount of 98.5.

The company’s $600 million of senior secured credit facilities also include a $50 million five-year revolver (B2/B/BB-).

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, for a total value of about $1.6 billion.

Closing is 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.

CenseoHealth breaks

CenseoHealth/Advance Health’s credit facilities also hit the secondary market, with the $260 million seven-year covenant-light first-lien term loan seen at par bid, par ¾ offered, a trader remarked.

Pricing on the term loan is Libor plus 500 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

Late last week, the spread on the term loan was reduced from Libor plus 525 bps.

The company’s $295 million of credit facilities (B) also include a $35 million revolver.

UBS Investment Bank and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of CenseoHealth LLC and Drynachan LLC (Advance Health) by New Mountain Capital for a combined $565 million in enterprise value.

CenseoHealth is a Dallas-based provider of in-home health assessments conducted by physicians. Advance Health is a Chantilly, Va.-based provider of managed care prospective health solutions.

Royal Oak frees up

Royal Oak’s $371,498,744 term loan B due July 1, 2023 started trading too, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Barclays and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance an existing term loan B.

Closing is expected on Jan. 8.

Royal Oak is a Roswell, Ga.-based maker of charcoal products.

Go Wireless reworked

Shifting the primary market, Go Wireless trimmed its senior secured term loan $300 million from an initial size of $400 million and officially raised pricing to Libor plus 650 bps from Libor plus 600 bps, according to a market source.

Chatter regarding the pricing flex had been floating around the market since late last week, but the change wasn’t formally announced until Tuesday.

As before, the loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Tuesday, the source said.

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

Go Wireless is a Verizon authorized retailer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.