TransUnion, Carestream Dental, Certara break; Atlantic Broadband, DuPage, Sparta accelerated

By Sara Rosenberg

New York, Aug. 7 – Deals from TransUnion LLC and Carestream Dental Equipment Inc. freed up for trading on Monday, and Certara emerged in the secondary market after firming the original issue discount on its first-lien term loan at the tight side of revised guidance.

In more happenings, Atlantic Broadband Finance LLC, DuPage Medical Group and Sparta Systems Inc. accelerated the commitment deadlines on their term loans, and ClubCorp Holdings Inc., Gardner Denver Inc., Trinseo Materials and Engility Corp. released price talk with launch.

Furthermore, Vistra Energy, Novolex (Flex Acquisition Co. Inc.), Terex Corp., Genoa, A QoL Healthcare Co. LLC, Parexel International Corp., Cincinnati Bell Inc., Navex Global Inc. and RadNet Management Inc. joined this week’s primary calendar.

TransUnion hits secondary

TransUnion’s bank debt began trading on Monday, with the $1.98 billion covenant-light term loan B-2 (Ba3/BB) due April 2023 quoted at par ¼ bid, par ½ offered and the $400 million term loan A due August 2022 quoted at 99¾ bid, par ¼ offered, a trader said.

Pricing on the term loan B-2 is Libor plus 200 basis points with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

The term loan A is priced at Libor plus 150 bps with a 0% Libor floor and it was issued at an original issue discount of 99.75.

Deutsche Bank Securities Inc. and Capital One are the joint lead bookrunners on the deal, and other bookrunners include Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, RBC Capital Markets and Wells Fargo Securities LLC.

Proceeds will be used to reprice an existing term loan B-2 from Libor plus 250 bps with a 0% Libor floor, and to reprice an existing term loan A.

Closing is expected this week.

TransUnion is a Chicago-based provider of information management and risk management services.

Carestream tops OID

Another deal to free up was Carestream Dental, with its $375 million seven-year covenant-light first-lien term loan quoted at par bid, par ½ offered, a trader remarked.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

On Thursday, pricing on the term loan was trimmed from talk of Libor plus 375 bps to 400 bps and the discount was revised from 99.5.

The company’s $455 million of credit facilities (B2/B) also include an $80 million revolver.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., ING, Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice and CareCapital Advisors Ltd. from Carestream.

Closing is expected in the third quarter, subject to regulatory and other approvals.

Carestream Dental is a provider of imaging systems, practice management software and other services to the dental market.

Certara updated, breaks

Certara finalized the original issue discount on its $250 million seven-year senior secured first-lien term loan (B2/B) at 99.5, the tight end of revised talk of 99 to 99.5 and tight of initial talk of just 99, according to a market source.

As before, pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor and the debt has 101 soft call protection for six months.

Previously, pricing on the first-lien term loan was cut from talk of Libor plus 425 bps to 450 bps.

With pricing set, the first-lien term loan made its way into the secondary market and levels were quoted by one source at par bid, par ½ offered and by a second source at par bid, 101 offered.

The company’s credit facilities also include a $20 million five-year senior secured revolver (B2/B) and a $100 million pre-placed eight-year HoldCo unsecured term loan.

Jefferies LLC and Golub are leading the deal that will be used to help fund the buyout of the company by EQT from Arsenal Capital Partners for $850 million. Arsenal Capital will retain a minority ownership stake in the company.

Certara is a Princeton, N.J.-based provider of technology-driven decision support solutions for drug development.

Atlantic Broadband accelerated

In other news, Atlantic Broadband moved up the commitment deadline on its $1.7 billion seven-year covenant-light first-lien term loan to Wednesday from Friday, a market source said.

Talk on the term loan is Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months. Ticking fees will be on offer.

The company’s $1.85 billion of credit facilities (B1/BB-) also include a $150 million revolver.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, CIBC and BMO Capital Markets are leading the deal that will be used to help fund the acquisition of the MetroCast cable systems from Harron Communications LP for $1.4 billion.

Other funds for the transaction will come from a $315 million equity investment from Caisse de depot et placement du Quebec in return for a 21% interest in Atlantic Broadband’s holding company.

Closing is expected in January 2018, subject to regulatory approvals and other customary conditions.

Atlantic Broadband, a subsidiary of Cogeco Communications Inc., is a Quincy, Mass.-based cable operator. The new debt will be non-recourse to Cogeco.

DuPage changes deadline

DuPage Medical Group moved up the commitment deadline on its $430 million seven-year first-lien term loan (B1/B) and $190 million eight-year second-lien term loan (Caa1/CCC+) to 5 p.m. ET on Wednesday from 5 p.m. ET on Aug. 14, according to a market source.

The first-lien term loan is talked at Libor plus 375 bps with a 0.75% 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 775 bps with a 0.75% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC, Barclays, Nomura, Citizens Bank and Citigroup Global Markets Inc. are leading the $620 million in term loans that will be used for acquisition financing and to refinance existing debt.

DuPage is a Downers Grove, Ill.-based multi-specialty physician group.

Sparta shutting early

Sparta Systems accelerated the commitment deadline on its $240 million seven-year first-lien term loan (B2/B-) to 5 p.m. ET on Wednesday from Aug. 16, according to a market source.

Talk on the term loan is Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $340 million of senior secured credit facilities also include a $25 million revolver (B2/B-) and a $75 million privately placed eight-year second-lien term loan (CCC).

Jefferies LLC, Ares and BMO Capital Markets are leading the deal that will be used to help fund the buyout of Sparta Systems by New Mountain Capital LLC from Thoma Bravo LLC, which will retain a minority stake in the company.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Sparta Systems is a Hamilton N.J.-based provider of quality management system software to the pharmaceutical, medical device and CPG industries.

ClubCorp releases talk

Also in the primary market, ClubCorp held its bank meeting on Monday, launching its $1,125,000,000 seven-year covenant-light term loan B at talk of Libor plus 325 bps with a step-down to Libor plus 300 bps at less than 3.25 times net first-lien leverage, a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $1.3 billion of senior secured credit facilities (B1/B+) also include a $175 million revolver.

Commitments are due at 5 p.m. on Aug. 14, the source said.

Citigroup Global Markets Inc., RBC Capital Markets LLC, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used with $475 million of senior unsecured notes and about $675 million of equity to fund the buyout of the company by Apollo Global Management LLC for $17.12 per share in cash, or about $1.1 billion.

Closing is expected in mid-September, subject to shareholder approval and other customary conditions.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs and business, sports and alumni clubs.

Gardner discloses details

Gardner Denver launched on its lender call a $1,243,000,000 term loan (B2/B+) due July 2024 talked at Libor plus 275 bps and a €660 million term loan (B2/B+) due July 2024 talked at Euribor plus 350 bps, market sources said. Both loans are also talked with a 0% floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Commitments are due on Friday, sources continued.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to extend existing term loans from 2020 and reprice the U.S. term loan from Libor plus 325 bps with a 1% Libor floor and euro term loan from Euribor plus 375 bps with a 1% floor.

As part of the transaction, the company is getting €275 million of additional euro term loan borrowings and using those proceeds to pay down the existing U.S. term loan, resulting in the pro forma sizes of $1,243,000,000 and €660 million, sources added.

Gardner Denver is a Milwaukee, Wis.-based provider of mission-critical flow control and compression equipment and associated aftermarket parts, consumables and services.

Trinseo reveals guidance

Trinseo Materials came out with talk of Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $750 million seven-year covenant-light first-lien term loan (Ba3/BB+) that launched with an afternoon bank meeting, a market source remarked.

When the deal was first announced, the term loan size was described as in the range of $700 million to $800 million.

Commitments are due at noon ET on Aug. 16, the source added.

Barclays and Deutsche Bank Securities Inc. are leading the loan that will be used to refinance existing debt.

Trinseo is a Berwyn, Pa.-based materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber.

Engility launches

Engility held its lender call and with the event, talk on its $185 million term loan B-1 due Aug. 12, 2020 and $579 million term loan B-2 due Aug. 12, 2023 was announced, according to a market source.

Talk on the term loan B-1 is Libor plus 275 bps with a 0% Libor floor and a par issue price, and talk on the term loan B-2 is Libor plus 300 bps to 325 bps with a 1% Libor floor and a par issue price, the source said. Both loans have 101 soft call protection for six months.

Consents/commitments are due at 5 p.m. ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc., KKR Capital Markets LLC, Barclays, SunTrust Robinson Humphrey Inc., Regions Capital Markets, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the $764 million of senior secured term loans that will be used to reprice an existing term loan B-1 from Libor plus 325 bps with a 0% Libor floor and an existing term loan B-2 from Libor plus 375 bps with a 1% Libor floor.

Engility is a Chantilly, Va.-based provider of integrated services for the U.S. government.

Vistra readies deal

Vistra Energy set a lender call for 11 a.m. ET on Tuesday to launch a $995 million covenant-light term loan B-2 (Ba2/BB+) due December 2023 talked at Libor plus 275 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 0.75% Libor floor.

Vistra, formerly known as Texas Competitive Electric Holdings Co. LLC, is a Dallas-based power generator and retail electric provider.

Novolex joins calendar

Novolex surfaced with plans to hold a lender call at 10:30 a.m. ET on Tuesday to launch a $1,571,000,000 covenant-light term loan B due December 2023 talked at Libor plus 275 bps to 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Aug. 14, the source added.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Jefferies LLC are leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Novolex, a Carlyle portfolio company, is a Hartsville, S.C.-based packaging company.

Terex coming soon

Terex scheduled a lender call for 10 a.m. ET on Tuesday to launch a $399 million covenant-light first-lien term loan (Ba1/BBB-) due Jan. 31, 2024 talked at Libor plus 225 bps with a step-down to Libor plus 200 bps at corporate family ratings of Ba3/BB-, a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Current corporate family ratings are B1/BB.

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

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 250 bps with a 0.75% Libor floor.

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

Genoa plans repricing

Genoa set a lender call for 10 a.m. ET on Tuesday to launch a $615 million first-lien term loan (B1/B) due Oct. 28, 2023 talked at Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on Friday, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 375 bps with a 1% Libor floor.

Genoa is a Tukwila, Wash.-based provider of mental health pharmacy services.

Parexel timing emerges

Parexel International will hold a bank meeting at 10 a.m. ET on Tuesday to launch its previously announced $2,365,000,000 of senior secured credit facilities, a market source said.

The facilities consist of a $300 million five-year revolver and a $2,065,000,000 seven-year covenant-light term loan B.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Barclays, Morgan Stanley Senior Funding Inc. HSBC Securities (USA) Inc. and Jefferies LLC are leading the deal that will be used with $720 million in eight-year senior unsecured notes and $2.7 billion of equity to fund the buyout of the company by Pamplona Capital Management LLP and refinance existing debt. Parexel is being bought for $88.10 per share in cash in a transaction valued at about $5 billion, including net debt.

Pro forma for the transaction senior secured leverage will be 5 times and total leverage will be 6.75 times based on March 31 LTM pro forma adjusted EBITDA of $413 million. Net senior secured leverage is 4.3 times and net total leverage is 6.1 times based on a closing cash balance of $284 million.

Closing is expected in late September, subject to shareholder approval and other conditions.

Parexel is a Waltham, Mass.-based biopharmaceutical services company.

Cincinnati Bell on deck

Cincinnati Bell scheduled a lenders’ presentation at 10:30 a.m. ET on Wednesday to launch $780 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $180 million revolver and a $600 million term loan B, the source added.

Morgan Stanley Senior Funding Inc., PNC Bank, Regions Bank, Barclays, Citigroup Global Markets Inc. and Citizens Bank are leading the deal that will help fund the acquisitions of Hawaiian Telcom Inc. and OnX Enterprise Solutions and refinance debt at Cincinnati Bell and Hawaiian Telcom.

Hawaiian Telcom is being bought for about $650 million, with shareholders having the option to elect either $30.75 in cash, 1.6305 shares of Cincinnati Bell common stock, or a mix of $18.45 in cash and 0.6522 shares of Cincinnati Bell common stock for each share of Hawaiian Telcom. OnX is being bought for around $201 million.

The Hawaiian Telcom transaction is expected to close in the second half of 2018 and the OnX transaction will close in the beginning of the fourth quarter 2017, both subject to customary conditions.

Cincinnati Bell is a Cincinnati, Ohio-based provider of integrated communications solutions. Hawaiian Telcom is a Honolulu-based providing of integrated communications, broadband, data center and entertainment solutions. OnX is a Toronto-based technology service and solution provider.

Navex readies add-on

Navex Global set a conference call for Wednesday afternoon to launch a fungible $50 million add-on first-lien term loan, a market source remarked.

Antares Capital is leading the deal that will be used to repay some existing second-lien term loan borrowings.

Navex, a Vista Equity Partners portfolio company, is a Portland, Ore.-based provider of ethics and compliance software, content and services.

RadNet sets call

RadNet Management will hold a lender call at 11 a.m. ET on Wednesday to launch a new loan deal, according to a market source.

Barclays is leading the deal.

RadNet is a Los Angeles-based owner and operator of outpatient diagnostic imaging centers.

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