SolarWinds, Builders FirstSource, OpenLink break; Boyd Gaming, Ascend revise loans

By Sara Rosenberg

New York, Aug. 15 – SolarWinds Inc.’s term loan emerged in the secondary market on Monday above its original issue discount, and Builders FirstSource Inc. and OpenLink International Inc. all began trading as well.

Moving to the primary market, Boyd Gaming Corp. upsized its term loan B, reduced the spread and tightened original issue discount guidance, Ascend Performance Materials LLC modified the issue price, call premium and pricing step-down on its term loan, and Chesapeake Energy Corp. came to market with a new term loan.

SolarWinds frees up

SolarWinds’ $1.7 billion seven-year senior secured term loan B broke for trading on Monday, with levels seen at 100 1/8 bid, 100 5/8 offered, according to a market source.

Pricing on the loan is Libor plus 450 basis points with a 1% Libor floor. Old money was issued at par, with a 101 soft call paid, and new money was sold at an original issue discount of 99.5. Included in the loan is 101 soft call protection for six months.

During syndication, the term loan was lifted from $1,435,000,000 as a proposed €230 million senior seven-year secured term loan B was dropped from the transaction, and pricing firmed at the low end of the Libor plus 450 bps to 475 bps talk.

Goldman Sachs Bank USA is leading the deal that will be used to reprice existing term loan B debt from Libor/Euribor plus 550 bps with a 1% floor.

SolarWinds is an Austin, Texas-based provider of IT network and systems infrastructure management software.

Builders FirstSource breaks

Builders FirstSource’s $470 million term loan B due July 31, 2022 began trading as well, with levels seen at 100 1/8 bid, 100 3/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 375 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to reprice the company’s existing term loan B from Libor plus 500 bps with a 1% Libor floor.

The term loan B is currently sized at $596 million but is being paid down by $126 million with a portion of the proceeds from the company’s recently priced $750 million senior secured notes offering.

Closing is expected on Aug. 22.

Builders FirstSource is a Dallas-based building materials manufacturer and supplier.

OpenLink hits secondary

Another deal to free up was OpenLink’s credit facility, with the $324.7 million first-lien term loan due July 2019 quoted at 98¾ bid, 99¾ offered, a trader said.

Pricing on the term loan is Libor plus 650 bps with a 1.25% Libor floor. The debt has 101 hard call protection for one year.

The company’s $357.2 million credit facility also includes a $32.5 million revolver due April 2019 priced at Libor plus 625 bps.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to extend the maturity of the revolver and the first-lien term loan.

Lenders were offered a 150-bps extension fee/original issue discount.

OpenLink is a Uniondale, N.Y.-based provider of cross-asset trading, risk management and operations processing software services.

Compass inches up

Also in trading, Compass Diversified Holdings $250 million incremental term loan B (Ba3/BB-) rose to par bid, 100½ offered from Friday’s breaking levels of 99¾ bid, 100¼ offered, according to a trader.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.25, after firming during syndication at the wide end of the 99.25 to 99.5 talk. The debt has 101 soft call protection for six months.

Bank of America Merrill Lynch is the left lead on the deal that will be used with revolver borrowings to fund the acquisition of 5.11 Tactical for $400 million, excluding working capital and certain other adjustments upon closing.

Compass Diversified is a Westport, Conn.-based owner and manager of a diverse family of middle market businesses. 5.11 Tactical is an Irvine, Calif.-based designer and marketer of purpose-built tactical apparel and gear.

Ziggo trades

Ziggo’s $1 billion eight-year term loan B was quoted at 99½ bid, 99¾ offered on Monday and its €2,589,000,000 eight-year term loan B was quoted at 99 7/8 bid, 100 1/8 offered, a trader remarked.

Pricing on the U.S. term loan is Libor plus 300 bps with no floor, and it was sold at an original issue discount of 99.5, and pricing on the euro term loan is Euribor plus 375 bps with no floor, and it was issued at a discount of 99.5. Both tranches have 101 soft call protection for six months.

Last week, the U.S. loan was upsized from $750 million, and the euro loan was upsized from €750 million.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Scotiabank (administrative agent) are the global coordinators on the deal (Ba3/BB-) and mandated lead arrangers with ABN Amro, BNP Paribas Securities Corp., Goldman Sachs Bank USA, ING Capital Markets, Morgan Stanley Senior Funding Inc. and Rabobank.

Ziggo, a Utrecht, Netherlands-based television, internet and telephone services provider, will use the new debt to refinance existing U.S. and euro term loans.

Sensus bid dips

Sensus’ term loan was quoted at 99 7/8 bid, 100½ offered, down on the bid side from par bid, 100½ offered previously as news emerged that the company is being acquired by Xylem Inc., a trader remarked.

Under the agreement, Sensus is being bought for about $1.7 billion in cash from The Jordan Co, and GS Capital Partners.

Xylem will finance the transaction with about $400 million of its non-U.S. cash, new and existing credit facilities, and a combination of short- and long-term debt. The debt is expected to be investment grade, according to a company presentation.

Closing is expected in the fourth quarter, subject to customary conditions and regulatory review, including approval by the Federal Communications Commission of the transfer of certain spectrum licenses.

Sensus is a Raleigh, N.C.-based provider of smart meters, network technologies, and advanced data analytics services for the water, electric and gas industries. Xylem is a Rye Brook, N.Y.-based water technology provider.

Boyd reworks loan

Switching to the primary market, Boyd Gaming raised its seven-year covenant-light term loan B to $1 billion from $700 million, trimmed pricing to Libor plus 300 bps from Libor plus 325 bps, cut the Libor floor to 0% from 0.75% and modified original issue discount talk to a range of 99.75 to 99.875 from 99.5, according to a market source.

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

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used with cash proceeds from the Borgata sale to refinance existing Peninsula debt and for general corporate purposes.

As part of the transaction, the Peninsula entity, which is currently an unrestricted subsidiary, will be consolidated into the Boyd capital structure.

Boyd is a Las Vegas-based operator of gaming entertainment properties.

Ascend sets changes

Ascend Performance Materials changed the original issue discount on its $500 million six-year covenant-light term loan to 99 from 98.5 and revised the call protection to non-callable for one year, then at 102 in year two and 101 in year three, from 101 soft call protection for one year, a source remarked.

Pricing on the loan is still Libor plus 550 bps with a 1% Libor floor, but now the spread will step-down to Libor plus 525 bps when total leverage is 3.5 times, instead of stepping down to Libor plus 500 bps at 4.5 times leverage and to Libor plus 450 bps at 3.5 times leverage, the source continued.

Commitments were due by 5 p.m. ET on Monday.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to repay ABL revolver borrowings and an existing term loan B.

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

Diamond deadline emerges

Diamond Resorts International Inc. is asking for commitments from lenders by noon ET on Tuesday for its $800 million seven-year covenant-light term loan B, a market source said.

The term loan is talked at Libor plus 600 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

On Thursday, the term loan B was downsized from $1.2 billion, the spread was increased from Libor plus 500 bps, and the discount was revised from 99.

The company’s $900 million senior secured credit facility also includes a $100 million five-year revolver.

Barclays, RBC Capital Markets LLC, Jefferies Finance LLC and Natixis are leading the deal.

Diamond being acquired

Proceeds from Diamond Resorts’ credit facility will be used to help fund its buyout by Apollo Global Management LLC for $30.25 per share or about $2.2 billion.

Other funds for the transaction will come from $600 million of senior unsecured notes and $400 million of senior secured notes that were added in connection with the term loan B downsizing.

In addition, about $1.06 billion of equity will be used for the buyout.

Closing is subject to more than 50% of the company’s common shares being tendered, the receipt of certain regulatory approvals and other customary conditions.

Diamond Resorts is a Las Vegas-based hospitality and vacation ownership company.

Chesapeake seeks loan

Chesapeake Energy surfaced in the morning with plans to hold a lender call at 4:30 p.m. ET to launch a $1 billion five-year first-lien last-out term loan (Caa1/B-) that is expected to price mid-week, according to a market source.

Goldman Sachs Bank USA, Citigroup Global Markets Inc. and MUFG are leading the deal.

Proceeds will be used to fund tender offers for up to $500 million of convertible notes and up to $500 million of senior notes.

The tender offers will expire on Sept. 12.

Chesapeake Energy is an Oklahoma City-based producer of natural gas, oil and natural gas liquids.

HCA closes

In other news, HCA Inc. completed its $1.2 billion 7.5-year term loan B-7 (Ba1/BBB-/BB+) that is priced at Libor plus 275 bps with no Libor floor, according to an 8-K filed with the Securities and Exchange Commission.

The term loan B-7 was issued at par and the debt has 101 soft call protection for six months.

During syndication, the loan was upsized from $1 billion and the issue price was tightened from 99.75.

Bank of America Merrill Lynch led the deal that was used to refinance some term loan B-4 borrowings.

HCA is a Nashville, Tenn.-based health care services provider.

© 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.