Hyland, HCA, American Rock, K-MAC, E.W. break; Neiman rises; Travelport, Life Time updated

By Sara Rosenberg

New York, March 9 – Hyland Software Inc. moved some funds between its first- and second-lien term loans and tightened the issue prices on the tranches, and then the debt made its way into the secondary market on Friday.

Also, deals from HCA Inc., American Rock Salt Co. LLC, K-MAC Holdings Corp. and E.W. Scripps Co. freed to trade, and Neiman Marcus Group Ltd. LLC’s term loan was stronger with the release of quarterly numbers.

In more happenings, Travelport Finance (Luxembourg) Sarl reduced the size of its term loan B and lowered the spread, Life Time Inc. set the issue price on its add-on term loan at the tight side of guidance and PGT Inc. accelerated the commitment deadline on its term loan B.

Additionally, NRG Energy Inc., Cinemark USA Inc., Uber Technologies Inc. and Focus Financial Partners LLC released price talk with launch, and EG Group, HelpSystems LLC, Dimora Brands Inc., Duravant LLC, Hubbard Radio LLC and DTI Holdco Inc. (Epiq) joined the near-term calendar.

Hyland reworked, trades

Hyland Software lifted its fungible incremental first-lien term loan (B1) due July 1, 2022 to $130 million from $110 million and moved the issue price to par from 99.75, a market source remarked.

Furthermore, the company trimmed its fungible incremental second-lien term loan (Caa1) due July 7, 2025 to $75 million from $95 million and tightened the issue price to par from 99.5, the source continued.

Pricing on the first-lien term loan is Libor plus 325 basis points with a 0.75% Libor floor, and pricing on the second-lien term loan is Libor plus 700 bps with a 0.75% Libor floor.

Recommitments were due at 10:30 a.m. ET on Friday and the debt made its way into the secondary market in the afternoon, with the incremental first-lien term loan quoted at par 5/8 bid, 101 1/8 offered and the incremental second-lien term loan quoted at par ½ bid, another source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will fund the acquisition of OneContent from Allscripts.

Closing is expected in the second quarter.

Hyland, a Thoma Bravo portfolio company, is a Westlake, Ohio-based enterprise content-management software developer. OneContent is a provider of healthcare content management needs.

HCA hits secondary

HCA’s term loans began trading, with the $1.5 billion seven-year term loan B-10 quoted at par 3/8 bid, par 5/8 offered and the $1,166,000,000 term loan B-9 due March 18, 2023 quoted at par 1/8 bid, par 3/8 offered, according to a trader.

Pricing on the term loan B-10 is Libor plus 200 bps with no Libor floor and pricing on the term loan B-9 is Libor plus 175 bps with no Libor floor. Both loans were issued at par and include 101 soft call protection for six months.

On Thursday, the issue price on the term loan B-10 firmed at the tight end of the 99.875 to par talk.

Bank of America Merrill Lynch is leading the $2,666,000,000 in term loans (BBB-) that will be used to refinance an existing term loan B-8 and repay about $312 million of existing term loan B-9 debt.

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

American Rock starts trading

American Rock Salt’s $410 million first-lien term loan (B3/B) freed to trade, with levels quoted at par 3/8 bid, par ¾ offered, a market source said.

Pricing on the term loan is Libor plus 375 bps with a step-down to Libor plus 350 bps upon B2/B ratings and a 1% Libor floor. The loan was issued at an original issue discount of 99.75 and has 101 soft call protection for six months.

On Wednesday, the spread on the loan finalized at the low end of the Libor plus 375 bps to 400 bps talk and the step-down was added.

Citizens Bank is leading the deal that will be used to refinance existing debt.

American Rock Salt is a Munt Morris, N.Y.-based salt mine operator.

K-MAC frees up

K-MAC’s credit facilities started trading too, with the $360 million seven-year first-lien term loan seen at par 5/8 bid, 101 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 325 bps with a step-down to Libor plus 300 bps at 4 times first-lien leverage and a 0% Libor floor. The tranche was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

The company’s $530 million of credit facilities also include a $50 million five-year revolver, and a $120 million eight-year second-lien term loan priced at Libor plus 675 bps with a 0% Libor floor and issued at a discount of 99.75. The second-lien loan has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $355 million and the discount was revised from 99.5, and the second-lien term loan was upsized from $115 million, the spread was cut from Libor plus 700 bps and the discount was changed from 99.5.

KKR Capital Markets, JP Morgan Chase Bank, Barclays and Citizens Bank are leading the deal that will be used to refinance existing debt and fund a dividend.

K-MAC is a Fort Smith, Ark.-based Taco Bell franchisee.

E.W. Scripps tops par

E.W. Scripps’ $299 million covenant-light term loan B due October 2024 freed up as well, with levels quoted at par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the loan is Libor plus 200 bps with a step-down to Libor plus 175 bps when corporate family ratings are Ba2/BB or total net leverage is less than 2.75 times. The loan was issued at par, and has a 0% Libor floor and 101 soft call protection for six months.

Wells Fargo Securities LLC and JP Morgan Chase Bank are leading the deal that will be used to reprice an existing term loan down from Libor plus 225 bps with a 0% Libor floor.

E.W. Scripps is a Cincinnati-based broadcasting company.

Neiman gains ground

Also in trading, Neiman Marcus’ term loan rose to 88¼ bid, 89¼ offered from 87¼ bid, 87¾ offered after the company disclosed earnings results for its second quarter of fiscal year 2018, a trader remarked.

For the quarter, the company reported total revenues of $1.48 billion, a 6.2% increase from total revenues of $1.4 billion for the second quarter of fiscal year 2017.

Net earnings for the quarter were $372.5 million, versus a net loss of $117.1 million in the prior year.

And, adjusted EBITDA for the quarter was $154.8 million, compared to $126.8 million in the previous year.

Neiman is a Dallas-based luxury retailer.

OWIC announced

A $201.5 million Offer Wanted in Competition surfaced on Friday, with offers due at noon ET on Monday, a trader said.

Some of the names in the portfolio are Akorn Inc., BCP Renaissance Parent LLC, DiversiTech Holdings Inc., Intrawest Resorts Holdings Inc., National Vision Inc., SiteOne Landscape Supply LLC, Transcendia Holdings Inc., Univar USA Inc. and Zayo Group LLC.

There are about 97 issuers in the OWIC, the trader added.

Travelport tweaked

Back in the primary market, Travelport trimmed its seven-year covenant-light term loan B to $1.4 billion from $1.5 billion and cut pricing to Libor plus 250 basis points from Libor plus 275 bps, according to a market source.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Recommitments were due at 1:30 p.m. ET on Friday, the source said.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used with $745 million of senior secured notes, upsized from $650 million with the term loan downsizing, to refinance an existing term loan B.

Travelport is a Langley, U.K.-based technology company that operates a travel commerce platform.

Life Time updated

Life Time finalized the issue price on its $200 million add-on covenant-light term loan B (B1/BB-) due June 15, 2022 at par, the tight end of the 99.75 to par talk, and moved up the commitment deadline to noon ET on Monday from 5 p.m. ET on Tuesday, a market source remarked.

The add-on loan is priced at Libor plus 275 bps with a 1% Libor floor, and has 101 soft call protection through May 2018.

Deutsche Bank Securities Inc., BMO Capital Markets, Jefferies LLC, KKR Capital Markets, Macquarie Capital (USA) Inc., Mizuho and Nomura are leading the deal that will be used to repay the current $18 million drawn on the company’s revolver and to add cash to the balance sheet to provide working capital flexibility as Life Time is looking to extend the time between club openings to sale leasebacks to six months from about one month.

Including the add-on, the term loan B will total $1,517,000,000.

Life Time is a Chanhassen, Minn.-based operator of sports, professional fitness, family recreation and spa destinations.

PGT revises deadline

PGT accelerated the commitment deadline on its roughly $224 million term loan B (B2/B+) to 5 p.m. ET on Friday from March 15, a market source said.

Talk on the term loan is Libor plus 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 1% Libor floor.

PGT is a Venice, Fla.-based manufacturer and supplier of residential impact-resistant windows and doors.

NRG holds call

NRG Energy held a lender call at 10 a.m. ET on Friday to launch a $1,871,500,000 senior secured term loan B due June 2023 talked at Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan B down from Libor plus 225 bps with a 0.75% Libor floor.

NRG is a power producer with headquarters in Princeton, N.J., and Houston.

Cinemark launches

Cinemark held a lender call at 2 p.m. ET to launch a $660 million seven-year first-lien term loan B talked at Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on March 23, the source added.

Barclays, Wells Fargo Securities LLC, JP Morgan Chase Bank, RBC Capital Markets and Webster Bank are leading the deal that will be used to refinance an existing term loan B.

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

Uber floats talk

Uber Technologies came out with price talk of Libor plus 425 bps to 450 bps with a 1% Libor floor and an original issue discount of 99 on its $1.25 billion seven-year term loan B that launched with a meeting during the session, sources remarked.

Commitments are due on March 22, sources said.

The company is doing the transaction on its own, instead of with lead arrangers.

The new term loan will be used for general corporate purposes.

Uber is a San Francisco-based online transportation network company.

Focus reveals guidance

Focus Financial Partners held its call and announced issue price talk of par on its fungible $200 million add-on first-lien term loan, according to a market source.

The first-lien term loan is priced at Libor plus 275 bps with a 0% Libor floor.

Commitments are due on Thursday, the source said.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund an acquisition.

The first-lien term loan is currently sized at $793 million.

Focus Financial is a New York-based partnership of independent, fiduciary wealth-management firms.

EG Group on deck

EG Group set a bank meeting in London for Tuesday and a bank meeting in New York for 10 a.m. ET on Wednesday to launch a $150 million incremental multi-currency revolver due 2022, a $1.7 billion incremental covenant-light term loan B due 2025, a €175 million incremental covenant-light term loan B due 2025 and a new $490 million equivalent U.S. and euro eight-year covenant-light second-lien term loan, a market source said.

The incremental revolver and term loans will be in line with the company’s existing debt, the source added.

Global coordinators on the deal are Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and UBS Investment Bank. Bank of America is the physical bookrunner for the U.S. term loan B, and Bank of America, Barclays and Morgan Stanley are the physical bookrunners for the euro term loan B and second-lien loan.

The new debt will be used to fund the acquisitions of Kroger Co C-Stores, a portfolio of 762 sites across 18 U.S. states, for $2.15 billion and NRGValue, a network of 97 retail Esso sites in the Netherlands.

EG Group is a European independent forecourt/convenience-store retailer.

HelpSystems coming soon

HelpSystems scheduled a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch $735 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $40 million revolver, a $495 million seven-year first-lien term loan with 101 soft call protection for six months, and a $200 million eight-year second-lien term loan with call protection of 102 in year one and 101 in year two, the source added.

Jefferies LLC, Antares Capital and Ares are leading the deal that will be used to fund HGGC LLC’s acquisition of a majority stake in the company.

HelpSystems is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity, and business intelligence software.

Dimora plans repricing

Dimora Brands intends to hold a lender call at 2 p.m. ET on Monday to launch a $254 million first-lien term loan due August 2024 talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due on March 16, the source added.

Deutsche Bank Securities Inc., Antares Capital and Bank of Ireland are leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Dimora is a Dallas-based designer, distributor, and manufacturer of decorative and functional hardware as well as decorative wood and other products for the kitchen and bath industry.

Duravant joins calendar

Duravant will hold a lender call at 10 a.m. ET on Monday to launch $185 million of incremental term loans, according to a market source.

The debt consists of a fungible $150 million incremental first-lien term loan and a fungible $35 million incremental second-lien term loan, the source said.

Jefferies LLC is leading the deal that will be used to fund the acquisition of Key Technology Inc. for $26.75 in cash, in a transaction valued at about $175 million.

Duravant is a Downers Grove, Ill.-based automation and engineered equipment company serving the food processing, packaging and material handling sectors. Key Technology is a Walla Walla, Wash.-based designer and manufacturer of digital sorting, inspection, conveying and processing equipment.

Hubbard readies deal

Hubbard Radio plans to hold a lender call at 11 a.m. ET on Monday to launch $302 million of senior secured credit facilities (B1), a market source remarked.

The facilities consist of a $10 million revolver, a $252 million term loan B and a $40 million incremental term loan B, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal.

The revolver and term loan B will be used to extend the company’s existing revolver and term loan B, and the incremental loan will be used to fund the acquisition of two radio stations in St. Louis (KSHE-FM and KPNT-FM) from Emmis Communications and pay related fees and expenses.

Hubbard Radio is a St. Paul, Minn.-based broadcasting company.

DTI sets call

DTI Holdco will hold a call at 2 p.m. ET on Monday for credit facility lenders, according to a market source.

Bank of America Merrill Lynch is leading the transaction.

DTI is a Kansas City, Kan.-based provider of integrated technology and services for the legal profession.

Genex closes

In other news, Stone Point Capital LLC completed its buyout of Genex Services from Apax Partners, according to a news release.

To help fund the transaction, Genex got $535 million of credit facilities consisting of a $50 million five-year revolver (B), a $365 million seven-year first-lien term loan B (B) and a $120 million eight-year second-lien term loan (CCC+).

The first-lien term loan is priced at Libor plus 325 bps with a 0% Libor floor, and was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

During syndication, the discount on the first-lien term loan was tightened from 99.5.

The second-lien term loan is priced at Libor plus 700 bps with a 0% Libor floor, and has hard call protection of 102 in year one and 101 in year two.

SunTrust Robinson Humphrey Inc., RBC Capital Markets, Capital One, Fifth Third Bank and KKR Capital Markets led the deal, with SunTrust left on the first-lien loan and RBC left on the second-lien loan.

Genex is a Wayne, Pa.-based provider of cost containment services to the workers’ compensation, disability and auto industries.

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