Zebra Technologies, Cengage break; Yum! accelerates deadline; Aspen Dental updates surface

By Sara Rosenberg

New York, May 27 – Zebra Technologies Corp. firmed the spread on its term loan B at the tight end of guidance and then the debt freed up for trading on Friday above its original issue discount. Cengage Learning Inc.’s term loan B hit the secondary market as well on Friday.

In more happenings, Yum! Brands Inc. accelerated the commitment deadline on its term loan B, Aspen Dental Management Inc. increased the size of its add-on term loan and set the new money issue price at the tight end of talk, and Cinemark USA Inc. and MKS Instruments Inc. surfaced with repricing plans.

Zebra sets spread, trades

Zebra Technologies finalized pricing on its $1,955,000,000 senior secured covenant-light term loan B due Dec. 27, 2021 at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, and left the 0.75% Libor floor and original issue discount of 99.75 unchanged, according to a market source.

As before, the loan has a repricing premium of 101 for six months and optional prepayments will be made at par.

With final terms in place, the term loan B broke for trading on Friday morning, with levels quoted at par bid, par ˝ offered, a trader added.

Morgan Stanley Senior Funding, Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to reprice the company’s existing term loan B due in 2021.

Zebra is a Lincolnshire, Ill.-based provider of marking and printing technologies.

Cengage frees up

Cengage Learning’s $1.71 billion seven-year senior secured covenant-light term loan B (B1) began trading as well, with levels seen at par bid, par ˝ offered, a trader said.

Pricing on the term loan B is Libor plus 425 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

Recently, the loan was upsized from $1.59 billion as the company’s senior unsecured notes offering was downsized to $620 million from $740 million, and pricing was lowered from talk of Libor plus 450 bps to 475 bps.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co., Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and KKR Capital Markets LLC are leading the loan.

Proceeds from the term loan B and the bonds will be used to refinance existing debt and to fund a distribution to existing shareholders.

Cengage is a Boston-based educational content, technology and services company for the higher education and K-12, professional, library and workforce training markets.

Yum! changes deadline

Back in the primary market, Yum! Brands moved up the commitment deadline on its $1.5 billion seven-year senior secured term loan B to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, a market source remarked.

The term loan B is talked at Libor plus 300 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year.

The company’s $3.3 billion credit facility (Ba1/BBB-) also includes a $1 billion revolver and an $800 million term loan A.

Goldman Sachs & Co., J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are the lead banks on the deal, with Goldman the left lead on the term loan B and JPMorgan the left lead on the revolver and term loan A.

Proceeds from the credit facility will be used with $2.3 billion of senior unsecured notes to help fund a return of capital to shareholders, repay revolver borrowings and support general corporate purposes.

Yum! Brands is a Louisville, Ky.-based quick-service restaurant operator.

Aspen Dental tweaks deal

Aspen Dental Management lifted its add-on term loan B to $50 million from $45 million and finalized the original issue discount on new money at 99.75, the tight end of the 99.5 to 99.75 talk, a market source said.

As before, pricing on the add-on term loan, as well as on the repricing of the company’s existing roughly $397 million term loan B, is Libor plus 425 bps with a 1% Libor floor, and all of the debt is getting 101 soft call protection for six months.

The add-on term loan will be used to fund a dividend and the repricing will take the existing term loan down from Libor plus 450 bps with a 1% Libor floor.

RBC Capital Markets LLC is leading the deal that is expected to allocate on Tuesday.

Aspen Dental is an East Syracuse, N.Y.-based dental support organization.

Cinemark on deck

Cinemark set a lender call for Tuesday to launch a repricing of its $664 term loan B due May 8, 2022 from Libor plus 300 bps with no Libor floor, according to a market source.

Barclays is leading the deal.

Cinemark is a Plano, Texas-based motion picture exhibitor.

MKS readies repricing

MKS Instruments scheduled a lender call for Tuesday to launch a repricing of its $780 million seven-year term loan B, a market source remarked.

Barclays is leading the transaction.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes.

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