Avast Software, EyeSouth, Garda loans break for trading; Cambium Learning revises deadline

By Sara Rosenberg

New York, March 15 – Avast Software’s U.S. term loan B made its way into the secondary market on Monday, with levels quoted above its original issue discount, and deals from EyeSouth Partners’ (SCP Eye Care Services LLC) and Garda World Security Corp. freed to trade as well.

Meanwhile, over in the primary market, Cambium Learning Group moved up the commitment deadline for its add-on first-lien term loan.

Also, Interior Logic Group Holdings LLC (Signal Parent Inc.), Verra Mobility, Virgin Pulse, Edelman Financial Engines (Edelman Financial Center LLC), Terex Corp., WEX Inc. and DuBois Chemicals Inc. released price talk with launch.

In addition, Orion Advisor Solutions (GT Polaris Inc.) and Autokiniton US Holdings Inc. joined this week’s primary calendar.

Avast hits secondary

Avast Software’s $480 million seven-year term loan B (Ba1/BB+) began trading on Monday, with levels quoted at 99 7/8 bid, par 3/8 offered, according to a market source.

Pricing on the term loan is Libor plus 200 basis points with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The company is also getting a €300 million seven-year term loan B (Ba1/BB+) priced at Euribor plus 200 bps with a 0% floor and sold at a discount of 99.75. This tranche has 101 soft call protection for six months as well.

During syndication, the split of U.S. and euro debt firmed up from $837 million equivalent total with minimum amounts of $350 million U.S. and €300 million euro, the spread was reduced from Libor/Euribor plus 225 bps and the original issue discount finalized at the tight end of the 99.5 to 99.75 talk.

Credit Suisse is the physical lead bookrunner on the deal, and Morgan Stanley is a joint lead bookrunner.

Proceeds will be used to refinance existing debt.

Avast is a Prague-based cybersecurity provider.

EyeSouth frees up

EyeSouth Partners’ $375 million seven-year senior secured first-lien term loan and $65 million 18-month commitment period delayed-draw first-lien term loan broke for trading too, with the strip of debt quoted at 99¾ bid, par ¼ offered, a market source said.

Pricing on the term loan debt, which was sold as a strip, is Libor plus 450 bps with a 25 bps step-down at 5x first-lien gross leverage and a 0.75% Libor floor. The debt was sold at an original issue discount of 99.75, although on the delayed-draw loan the discount will be paid when drawn. Additionally, the term loan has 101 soft call protection for six months and the delayed-draw ticking fee is half the margin from days 46 to 90 and the full margin thereafter.

During syndication, the pricing step-down was added and the discount was tightened from 99.5.

The company’s $455 million of credit facilities (B3/B-) also include a $15 million five-year revolver.

Jefferies LLC is leading the deal that will refinance existing debt and fund near-term acquisitions.

EyeSouth is an Atlanta-based provider of practice management services to a network of affiliated ophthalmology practices, specializing in essential treatments for eye health conditions.

Garda breaks

Garda World Security’s $100 million add-on first-lien term loan B due Oct. 30, 2026 and repriced $988 million first-lien term loan B due Oct. 30, 2026 surfaced in the secondary market as well, with levels quoted at par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the term loan debt is Libor plus 425 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Barclays is the lead left bookrunner on the deal. JPMorgan Chase Bank is the administrative agent.

Proceeds from the add-on term loan will be used with cash on hand to repay revolver borrowings, and the repricing will take the existing first-lien term loan B down from Libor plus 475 bps with a 0% Libor floor.

Garda is a Montreal-based provider of cash logistics and security solutions.

Cambium tweaks timing

Switching to primary market happenings, Cambium accelerated the commitment deadline for its fungible $350 million add-on first-lien term loan to noon ET on Tuesday from 5 p.m. ET on Tuesday, a market source remarked.

Pricing on the add-on term loan is Libor plus 450 bps with a 0.75% Libor floor and the debt has 101 soft call protection through Sept. 21.

The add-on term loan is talked with an original issue discount talk of 99.75.

RBC Capital Markets is leading the deal that will be used to refinance $348 million of existing second-lien term loans.

Pro forma for the transaction, the first-lien term loan will total $1.324 billion.

The company added a 0.75% Libor floor to the existing first-lien term loan as part of an amendment in December. Prior to the amendment, the floor was 0%. However, the 0.75% Libor floor doesn’t become operative until a disposition occurs, which likely will happen this week, so all of the first-lien term loan debt will be fungible.

Cambium is a Dallas-based end-to-end provider of K-12 instructional and assessment solutions.

Interior details emerge

Interior Logic Group held its call on Monday, launching a $550 million seven-year senior secured covenant-lite first-lien term loan B (B1/B) at talk of Libor plus 350 bps to 375 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, subject to customary carve-outs, according to a market source.

Commitments are due at 5 p.m. ET on March 24, the source added.

Citigroup Global Markets Inc., Goldman Sachs Bank USA, BofA Securities Inc. and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Blackstone from Littlejohn & Co. LLC, Platinum Equity and other equity holders for a total transaction value of $1.6 billion.

Closing is expected by the end of this month.

Interior Logic is an Irvine, Calif.-based provider of interior design, supply chain and installation management solutions to single-family homebuilders.

Verra proposed terms

Verra Mobility held a lender call at noon ET and launched a $650 million seven-year term loan B (B1/BB-) talked at Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Thursday, the source added.

BofA Securities Inc. is leading the deal that will be used with $350 million of senior unsecured notes to repay an existing $866 million term loan B due 2025, fund the purchase price for the acquisition of Redflex Holdings Ltd. and for general corporate purposes.

Verra Mobility is a Mesa, Ariz.-based provider of smart mobility technology solutions.

Virgin Pulse guidance

Virgin Pulse came out with price talk on its $505 million first-lien term loan and $185 million second-lien term loan with its afternoon call, according to a market source.

Talk on the first-lien term loan is Libor plus 400 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps with a 0.75% Libor floor, a discount of 98.5 to 99 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on March 29.

KKR Capital Markets and JPMorgan Chase Banks are leading the deal, with KKR the left lead on the first-lien loan and JPMorgan the left lead on the second-lien loan.

The term loans will be used to refinance existing debt and fund a dividend.

Virgin Pulse is a digital health, wellbeing and engagement company. It is based in Providence, R.I.

Edelman launches

Edelman Financial Engines held a lender call at 2:30 p.m. ET launch a fungible $800 million seven-year add-on first-lien term loan B, a $1,425,900,000 first-lien term loan B amendment and extension that would extend the maturity out to seven years, a fungible $100 million add-on second-lien term loan due July 2026, and an amendment of its existing $475 million second-lien term loan due July 2026, a market source remarked.

Talk on the covenant-lite first-lien term loan debt (B2/B) is Libor plus 350 bps with 25 bps step-down based on first-lien net leverage and a 25 bps step-down following an initial public offering, a 0.5% Libor floor and 101 soft call protection for six months. The add-on first-lien term loan is talked with an original issue discount of 99.5 and the amendment fee being offered for the existing term loan is 12.5 bps.

Pricing on the covenant-lite second-lien term loan debt (Caa2/CCC+) is Libor plus 675 bps with a 0% Libor floor. The add-on term loan is talked with an original issue discount of 99 and the amendment is being offered with a 25 bps consent fee, the source continued. The debt has 101 hard call protection for one year with a par call with an IPO.

Edelman lead banks

Morgan Stanley Senior Funding Inc. and JPMorgan Chase Bank are leading Edelman’s $2,800,900,000 of senior secured credit facilities, with Morgan Stanley the left lead and administrative agent on the first-lien debt and JPMorgan the left lead and administrative agent on the second-lien debt.

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

The add-on term loans will be used with cash on hand to fund a distribution to shareholders, and to pay related fees and expenses.

The company also announced on Monday a strategic investment from Warburg Pincus, which will become a minority equity owner. The investment values the company at $7.3 billion and is expected to close in the second quarter.

Edelman, a Hellman & Friedman portfolio company, is a financial planning and investment management firm.

Terex holds call

Terex hosted a lender call at 1 p.m. ET to launch a $325 million seven-year covenant-lite first-lien term loan (BB+) talked at Libor plus 200 bps to 225 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

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

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

Terex is a Westport, Conn.-based lifting and material handling solutions company.

WEX refinancing

WEX held a lender call at 1:30 p.m. ET, launching a $1.442 billion term loan B due 2028 at talk of Libor plus 225 bps with a 0% Libor floor, an original issue discount of 99.25 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Thursday, the source added.

The company also plans on getting a revolver due 2026 and a term loan A due 2026.

BofA Securities Inc. is leading the deal that will be used to refinance existing credit facilities to extend maturities.

WEX is a Portland, Maine-based financial technology service provider.

DuBois seeks add-on

DuBois Chemicals launched with a call during the session a $90 million add-on term loan (B2) talked at Libor plus 450 bps with a 0% Libor floor and an original issue discount of 98 to 98.75, a market source remarked.

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

JPMorgan Chase Bank is leading the deal that will be used to redeem notes, repay revolver borrowings and add cash to the balance sheet.

DuBois Chemicals is a Sharonville, Ohio-based provider of specialty cleaning chemical solutions.

Orion on deck

Orion Advisor Solutions set a lender call for 1 p.m. ET on Tuesday to launch a loan transaction, according to a market source.

Credit Suisse Securities (USA) LLC is leading the deal.

Orion is a provider of a tech-enabled fiduciary solutions that support financial advisors.

Autokiniton joins calendar

Autokiniton emerged with plans to hold a lender call at 1 p.m. ET on Tuesday to launch a new loan deal to current and prospective lenders, a market source said.

Citigroup Global Markets Inc. is leading the transaction.

Autokiniton is a New Boston, Mich.-based provider of automotive components and assembly solutions.

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