1-800 Contacts frees up; Filtration Group, Mega Broadband, Ascend Learning changes emerge

By Sara Rosenberg

New York, Oct. 16 – 1-800 Contacts Inc. (CNT Holdings I Corp.) increased the size of its first-lien term loan and firmed pricing at the low end of talk, and decreased the size of its second-lien term loan while tightening pricing on the tranche, before breaking for trading on Friday.

In other news, Filtration Group Corp. finalized pricing on its incremental first-lien term loan at the low side of talk, added a step-down and modified the original issue discount.

Also, Mega Broadband Investments Holdings LLC lowered the spread on its term loan B and added a leverage-based step-down, and Ascend Learning LLC lifted pricing on its incremental first-lien term loan and finalized the issue price at the wide end of guidance.

Furthermore, Veregy released price talk with launch, and MultiPlan Inc. (MPH Acquisition Holdings LLC), Pretium Packaging (Pretium Pkg Holdings Inc.) and Albany Molecular Research Inc. joined the near-term primary calendar.

1-800 Contacts reworked

1-800 Contacts raised its seven-year covenant-lite first-lien term loan B to $980 million from $930 million, set the spread at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, added a 25 bps step-down at 5x net first-lien leverage, and finalized the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

In addition, the company scaled back its eight-year covenant-lite second-lien term loan to $315 million from $340 million, trimmed pricing to Libor plus 675 bps from talk in the range of Libor plus 750 bps to 775 bps and changed the discount to 99.5 from 99, the source said.

As before, both term loans have a 0.75% Libor floor, the first-lien term loan has 101 soft call protection for six months and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s now $1.405 billion of senior secured credit facilities also include a $110 million five-year revolver.

1-800 Contacts breaks

Recommitments for 1-800 Contacts’ loans were due at 2 p.m. ET on Friday and the debt began trading late in the day, with the first-lien term loan quoted at 99 5/8 bid, par offered and the second-lien term loan quoted at par bid, 101 offered, a trader added.

Morgan Stanley Senior Funding Inc., KKR Capital Markets, Jefferies LLC, UBS Investment Bank, Barclays, Credit Suisse Securities (USA) LLC, Societe Generale, Mizuho and MUFG are leading the deal, with Morgan Stanley the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

The new debt will be used to help fund the buyout of the company by KKR from AEA Investors, with the funds from the $25 million of additional proceeds raised being used to provide cash to the balance sheet and reduce the equity check by $15 million.

Closing is expected in late October.

1-800 Contacts is a Draper, Utah-based seller of contact lenses.

Filtration updated

Returning to the primary market, Filtration Group set pricing on its $400 million incremental first-lien term loan B (B3/B) due March 29, 2025 at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, added a 25 bps step-down at 0.5x inside closing date total net leverage, and revised the original issue discount to 99.5 from 99, a market source said.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to fund a dividend recapitalization.

Closing is expected during the week of Oct. 19.

Filtration Group is a provider of filtration solutions serving a diverse portfolio of global end markets.

Mega Broadband revised

Mega Broadband trimmed pricing on its $650 million seven-year term loan B to Libor plus 300 bps from Libor plus 350 bps and added a step-down to Libor plus 275 bps when leverage is 4.75x as the book was “massively oversubscribed”, a market source remarked.

The term loan still has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The broadband provider’s $725 million of senior secured credit facilities (B2/B+) also include a $75 million five-year revolver.

Recommitments were due by the end of the day on Friday, the source added.

Truist Securities Inc., Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC and Citizens are leading the deal that will be used to refinance existing debt and fund a distribution to existing shareholders.

Cable One Inc. recently announced it will make a strategic investment in Mega Broadband by purchasing a 45% minority stake from affiliates of GTCR for about $574.1 million in cash. The investment is expected to close in the fourth quarter.

Ascend tweaks deal

Ascend Learning raised pricing on its non-fungible $350 million incremental first-lien term loan (B1/B-) due July 2024 to Libor plus 375 bps from talk in the range of Libor plus 325 bps to 350 bps and firmed the original issue discount at 99, the wide end of the 99 to 99.5 talk, according to a market source.

The incremental term loan still has a 1% Libor floor and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Friday, the source added.

Barclays, BofA Securities Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used to fund a dividend, for working capital, general corporate purposes or any other purpose not prohibited by the credit agreement, and to pay the transaction costs.

Ascend Learning is a provider of educational content, software and analytics solutions.

Veregy reveals talk

Veregy held its lender call on Friday and announced talk on its $250 million seven-year covenant-lite first-lien term loan at Libor plus 575 bps with a 1% Libor floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months, according to a market source.

The company’s $342.5 million of credit facilities also include a $42.5 million revolver and a $50 million delayed-draw term loan available for 24 months.

Commitments are due on Oct. 30, the source added.

UBS Investment Bank and BNP Paribas Securities Corp. are leading the deal that will be used to help fund the buyout of the company by Court Square Capital.

Veregy is a Phoenix-based provider of energy efficiency solutions, solar and smart building technology.

MultiPlan joins calendar

MultiPlan scheduled a lender call for 2 p.m. ET on Monday to launch a $2.47 billion seven-year senior secured term loan B, a market source said.

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

Commitments are due at noon ET on Oct. 26, the source added.

Barclays, Citigroup Global Markets inc., Goldman Sachs Bank USA, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Investment Bank are leading the deal that will be used to help refinance an existing $2.71 billion term loan G due 2023 and $1.56 billion of senior notes due 2024, and to pay call premium costs and transaction-related fees and expenses.

Cashless roll is available.

MultiPlan is a New York-based provider of health care cost management solutions. Earlier this month, the company completed its business combination with Churchill Capital Corp III, a public investment vehicle.

Pretium readies deal

Pretium Packaging set a lender call for 10 a.m. ET on Monday to launch $700 million of term loans, according to a market source.

The debt consists of a $530 million seven-year covenant-lite first-lien term loan (B) with 101 soft call protection for six months, and a $170 million eight-year covenant-lite second-lien term loan (CCC+) with call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on Oct. 28.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Pretium is a Chesterfield, Mo.-based designer and manufacturer of rigid plastic packaging solutions for specialized applications.

Albany Molecular on deck

Albany Molecular Research emerged with plans to hold a lender call at 11 a.m. ET on Monday to launch a non-fungible $210 million incremental first-lien term loan due Aug. 30, 2024, a market source remarked.

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

Commitments are due at noon ET on Oct. 26, the source added.

Barclays is leading the deal that will be used to refinance an existing second-lien term loan.

Albany Molecular is an Albany, N.Y.-based contract research and manufacturing organization that works with the life sciences industry to improve patient outcomes and the quality of life.

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