Paysafe, TransDigm, NES Global, CHG Healthcare break; GFL Environmental revises deal

By Sara Rosenberg

New York, May 9 – Paysafe moved some funds between its U.S. and euro term loans and finalized original issue discounts at the middle of guidance, and TransDigm Inc. modified its term loan tranche sizes, and then both of these deals freed to trade on Wednesday.

Also, NES Global Talent Finance US LLC upsized its term loan before breaking for trading, and CHG Healthcare Services Inc.’s add-on term loan hit the secondary as well.

In more happenings, GFL Environmental Inc. increased the size of its term loan B, lowered the spread and tightened the original issue discount, and Blackhawk Network Holdings Inc., Renaissance Learning, BroadStreet Partners Inc. and Summit Materials LLC announced price talk with launch.

Additionally, EPIC Y-Grade Services LP, Waste Industries USA LLC (Wrangler Buyer LLC) and Ashland LLC hopped onto this week’s primary calendar.

Paysafe tweaked, trades

Paysafe trimmed its U.S. incremental term loan (B2/B) due January 2025 to $530 million from $600 million, lifted its euro incremental term loan (B2/B) due January 2025 to €230 million from $200 million euro equivalent and set the original issue discount on the loans at 99.25, the midpoint of the 99 to 99.5 talk, according to a market source.

Pricing on the U.S. term loan is Libor plus 350 basis points with a 1% Libor floor, pricing on the euro term loan is Euribor plus 325 bps with a 0% floor and both loans have 101 soft call protection through July 3, 2018.

After terms finalized, the U.S. loan broke for trading on Wednesday and levels were quoted at 99½ bid, par offered, a trader added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the acquisition of iPayment Holdings Inc.

Closing is expected in the second quarter, subject to final regulatory approvals.

Paysafe is an Isle of Man-based provider of end-to-end payment solutions. iPayment is a Westlake Village, Calif.-based provider of payment processing solutions.

TransDigm retranches

TransDigm increased its incremental first-lien term loan E due May 2025 to $933 million from $700 million and cut its repriced first-lien term loan E due May 2025 to $1,322,000,000 from $1,496,000,000 and its repriced first-lien term loan F due June 2023 to $3,578,000,000 from $3,637,000,000, a market source said.

As before, all of the term loans are priced at Libor plus 250 bps with a 0% Libor floor and have 101 soft call protection for six months, the incremental term loan E has an original issue discount of 99.5, and the repriced term loan E and repriced term loan F have a par issue price.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Barclays, RBC Capital Markets, HSBC Securities Corp., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Credit Agricole and KKR Capital Markets are leading the $5,833,000,000 of term loans (Ba2/B+).

TransDigm frees up

In the afternoon, TransDigm’s debt emerged in the secondary market, with the incremental term loan E quoted at 99 7/8 bid, par ¼ offered, and the repriced term loan E and the repriced term loan F quoted at par 1/8 bid, par 3/8, a trader added.

The incremental loan will be used for general corporate purposes and to add cash to the balance sheet, and, due to the upsizing, to pay down some of the existing term loan E and term loan F debt. The repriced term loan E will reprice an existing term loan E down from Libor plus 275 bps with a 0% Libor floor and extend the maturity from May 2022, and the repriced term loan F will reprice an existing term loan F down from Libor plus 275 bps with a 0% Libor floor.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for use on commercial and military aircraft.

NES ups loan, breaks

NES Global Talent raised its five-year first-lien term loan to $215 million from $205 million, and left pricing at Libor plus 550 bps with a 1% Libor floor and an original issue discount of 98, according to a market source.

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

Late in the day, the term loan began trading and levels were seen at 99 bid, par offered, a trader added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and fund acquisitions.

NES is an Altrincham, England, provider of specialty manpower solutions to the oil and gas, power, chemicals infrastructures and life sciences sectors.

CHG hits secondary

CHG Healthcare’s fungible $270 million add-on covenant-light first-lien term loan (B2/B) due June 2023 began trading, with levels quoted at par ¾ bid, 101 1/8 offered, a market source remarked.

Pricing on add-on term loan is Libor plus 300 bps with a 1% Libor floor, in line with existing term loan pricing, and it was issued at par. All of the first-lien term loan debt is getting 101 soft call protection for six months.

On Tuesday, the issue price on the add-on term loan was tightened from 99.75.

Jefferies LLC, Goldman Sachs Bank USA, Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to repay second-lien notes.

With the add-on, the company is amending its existing credit agreement to allow incremental ratio debt up to 5.5 times and to permit the repayment of the notes.

Including the add-on, the first-lien term loan will total $1,577,200,000.

Closing is expected on June 8.

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

GFL changes emerge

Back in the primary market, GFL Environmental raised its seven-year senior secured covenant-light term loan B to $905 million from $435 million, firmed pricing at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, and moved the original issue discount to 99.75 from 99.5, according to a market source.

In addition, the $100 million of the term loan B amount that is delayed-draw now has a draw down period until Oct. 31, extended from Sept. 30, the source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months, and the delayed-draw loan is available only to finance acquisitions and if the acquisition is levered at 6.25 times or less, and has a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

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

Citigroup Global Markets Inc., RBC Capital Markets, Barclays and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by BC Partners, Ontario Teachers’ Pension Plan and GIC and refinance some existing debt, including, because of the upsizing, existing U.S. and Canadian term loan B’s. The transaction implies a total GFL enterprise value of about $5,125,000,000.

Closing is expected on May 31.

GFL Environmental is a Vaughan, Ont.-based waste management services company.

Blackhawk discloses guidance

Blackhawk Network held its bank meeting on Wednesday and revealed price talk on its $1.35 billion seven-year covenant-light first-lien term loan (B1/B) and $400 million eight-year covenant-light second-lien term loan (Caa1/CCC+), according to a market source.

Talk on the first-lien term loan is Libor plus 325 bps to 350 bps with a 25 bps step down at 0.5 times inside closing first-lien leverage, a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 700 bps with a 0% Libor floor, a discount of 99 and 101 hard call protection for one year, the source said.

Commitments are due at noon ET on May 18.

Based on the commitment letter, the company is also expected to get a $400 million revolver (B1/B).

Blackhawk lead banks

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Wells Fargo Securities LLC, BMO Capital Markets, Deutsche Bank Securities Inc., Fifth Third, MUFG, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading Blackhawk’s credit facilities, with Bank of America left on the first-lien loan and JPMorgan left on the second-lien loan.

Proceeds will be used with up to $1,757,000,000 in equity to fund the buyout of the company by Silver Lake and P2 Capital Partners for $45.25 per share in cash. The transaction is valued at about $3.5 billion, including debt.

Closing is expected mid-year, subject to receipt of stockholder and regulatory approvals, and customary conditions.

Blackhawk is a Pleasanton, Calif.-based financial technology company.

Renaissance launches

Renaissance Learning announced price talk on its $705 million seven-year first-lien term loan (B-) and $335 million eight-year second-lien term loan (CCC) in connection with its afternoon bank meeting, a market source said.

The first-lien term loan is talked at Libor plus 325 bps to 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 700 bps to 725 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $1.12 billion of credit facilities also include an $80 million five-year revolver (B-).

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

Barclays, Jefferies LLC, Macquarie Capital (USA) Inc., BMO Capital Markets and Nomura are leading the deal that will be used to help fund the buyout of the company by Francisco Partners from Hellman & Friedman and its other stockholders.

Closing is expected this quarter, subject to the waiting period under the HSR Act and other conditions.

Renaissance is a Wisconsin Rapids, Wis.-based pre-K–12 learning analytics company.

BroadStreet reveals talk

BroadStreet Partners came out with talk of Libor plus 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its fungible $15 million add-on term loan B and repricing of its existing $579 million term loan B that launched with an afternoon call, according to a market source.

Commitments are due at noon ET on May 16.

RBC Capital Markets LLC, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and ING are leading the deal.

The add-on term loan will be used to repay revolver drawings and the repricing will take the existing term loan down from Libor plus 375 bps with a 1% Libor floor.

BroadStreet is a Columbus, Ohio-based insurance broker.

Summit holds call

Summit Materials hosted a lender call at 3 p.m. ET to launch a $634 million term loan B talked at Libor plus 175 bps to 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Tuesday, the source said.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Banks USA, RBC Capital Markets and Barclays are leading the deal that will be used to reprice an existing term loan down from Libor plus 225 bps with a 0% Libor floor.

Summit Materials is a Denver-based construction materials company.

EPIC readies deal

Also on the new deal front, EPIC Y-Grade Services set a bank meeting for Thursday to launch $690 million of credit facilities, a market source said.

The facilities consist of a $40 million five-year super-priority revolver, and a $650 million seven-year term loan B talked at Libor plus 500 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 on May 25.

UBS Investment Bank and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the buildout of EPIC Y-Grade Pipeline, which will consist of 700 miles of Y-grade pipeline from the Permian and Eagle Ford Basins to Corpus Christi, Texas, and two Y-grade fractionators in Corpus Christi, currently under construction.

Waste Industries on deck

Waste Industries will hold a lender call at 10 a.m. ET on Friday to launch a fungible $170 million incremental term loan B, a market source remarked.

Barclays is the left lead on the deal that will be used to fund acquisitions and/or to repay revolver borrowings related to such acquisitions.

HPS Investment Partners LLC and Equity Group Investments are the sponsors.

Waste Industries is a Raleigh, N.C.-based provider of non-hazardous solid waste collection, transfer, recycling and disposal services.

Ashland joins calendar

Ashland scheduled a call for 11 a.m. ET on Thursday to launch a new loan transaction to current and prospective lenders, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

Ashland is a Covington, Ky.-based specialty chemicals company.

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