Rackspace, Securus, First Data set pricing; North American Bancard sets bank meeting

By Paul A. Harris

Portland, Ore., June 1 – On Thursday First Data Corp. set pricing in $3,733,000,000 of term loan debt (Ba3/BB), according to a market source.

The payment processing solutions provider is repricing its $2,733,000,000 existing first-lien term loan due July 10, 2022 at Libor plus 225 to 250 basis points from Libor plus 300 bps. The deal is offered at par.

A $1 billion incremental first-lien term loan due July 10, 2022 is talked at Libor plus 225 to 250 bps at 99.75.

Both tranches feature reset soft call protection at 101 for six months.

Commitments are due at 5 p.m. ET on June 8.

Credit Suisse has the books.

In addition to the repricing, proceeds will be used to refinance First Data’s euro-denominated term loan.

Rackspace talks $2 billion

Rackspace Hosting Inc. set price talk for a $2,095,000,000 senior secured term loan B due Nov. 3, 2023 (Ba2/BB+/BB+), according to a market source.

Talk is Libor plus 300 to 325 bps atop a 1% Libor floor at par, with 1% annual amortization and 101 soft call for six months from closing.

The commitment deadline is 5 p.m. ET June 7 for existing lenders, 5 p.m. ET on June 8 for new lenders. The deal is expected to close on June 21.

Citigroup is the left lead arranger and administrative agent. Deutsche Bank, Barclays, RBC and Credit Suisse are joint lead arrangers. Apollo is the co-manager.

The San Antonio-based managed cloud company plans to use the proceeds to reprice the existing term loan, which also matures on Nov. 3, 2023, as well as for general corporate purposes. Assuming that the TriCore acquisition closes, proceeds plus cash on the balance sheet will be used to finance the acquisition.

Securus sets price talk

Securus Technologies Holdings Inc. set price talk for $1.15 billion of first- and second-lien term loan debt, according to a market source.

An $870 million seven-year covenant-light first-lien term loan is talked with a 375 to 400 bps spread to Libor atop a 1% Libor floor at 99.5

A $280 million eight-year covenant-light second-lien term loan is talked with an 800 to 825 bps spread to Libor atop a 1% Libor floor at 99.

Commitments are due June 15.

Deutsche Bank, Bank of America Merrill Lynch, Barclays, Citigroup, Credit Suisse, Goldman Sachs, Jefferies, Morgan Stanley and BNP Paribas are the bookrunners on the deal.

The $1.3 billion of credit facilities also include a $150 million super-priority revolver.

Proceeds will be used to help fund the buyout of the company by Platinum Equity from ABRY Partners.

Securus is a Dallas-based provider of advanced inmate communications, investigative technologies and information management solutions to the corrections industry.

Cinemark price talk

Cinemark set price talk in a repricing of $664 million of its term loan B due May 8, 2022 (existing ratings Ba1/BBB-), according to a market source.

The repricing reduces the Libor spread to 200 bps from 225 bps. There is no Libor floor. There is a refreshed six months of soft call protection at 101.

Commitments are due on June 9.

Barclays is the administrative agent and bookrunner.

The borrower is a Plano, Texas-based motion picture exhibitor.

NAB bank meeting

North American Bancard plans to launch a $640 million seven-year first-lien term loan (expected ratings B2/B) at a bank meeting set for noon ET on Monday, according to a market source.

Commitments are due at 5 p.m. ET on June 5.

Credit Suisse is the lead.

The deal comes with 101 soft call protection for six months

The Troy, Michigan-based provider of payment processing solutions plans to use the proceeds to help finance the acquisition of Total Merchant Services, Inc. and refinance debt.

The borrowing entities are NAB Holdings, LLC and North American Bancard, LLC.

Unitymedia launches loan

Unitymedia Finance LLC launched a $620 million covenant-light term loan B due September 2025 (expected ratings Ba3/BB-/BB+) at a Thursday bank meeting, according to a market source.

Deutsche Bank is the left bookrunner. BofA Merrill Lynch, Barclays, BNP Paribas, Citigroup, ING, Goldman Sachs, JPMorgan, RBC and Scotia are the joint bookrunners. Scotia is the agent.

The deal comes with 101 soft call protection for six months.

The German cable TV and broadband company plans to use the proceeds to refinance €527 million of its 5˝% senior secured notes due 2022.

Virtu shifts proceeds

Virtu Financial Inc. shifted $325 million of proceeds to its 4˝-year senior secured term loan from its concurrent offering of junk bonds, according to a market source.

The loan size increases to $1.15 billion from $825 million.

The notes offer is decreased to $500 million from $825 million.

JP.Morgan is leading both parts of the acquisition financing, in which the New York-based financial company is acquiring KCG Holdings Inc., expected to close in the third quarter of 2017.

HelpSystems price talk

HelpSystems set price talk in a $346 million repricing of its first-lien term loan due October 2021 (B2/B+), according to a market source.

The deal subtracts 75 bps from the spread on the original loan, reducing it to Libor plus 450 bps from 525 bps. The spread will float atop a 1% Libor floor.

The offer price is 99.75.

It will be covered with six months of call protection at 101.

The maturity is unchanged from that of the original loan.

Commitments are due at 5 p.m. ET on June 9.

Credit Suisse is leading the repricing for the Eden Prairie, Minn.-based network management software company.

The borrowing entities are Help/Systems, LLC and Help/Systems Holdings, Inc.

Atkins price talk

Atkins Nutritionals Inc. set price talk in its $200 million seven-year senior secured term loan B, according to a market source.

Talk is Libor plus 400 to 425 bps atop a1% Libor floor at 99 to 99.5. The deal has 101 soft call protection for six months.

Commitments are due at noon ET on June 16.

Barclays is the bookrunner and agent. Goldman Sachs is also a bookrunner.

Incremental allowance is the sum of the greater of $70 million and 100% of LTM EBITDA plus unlimited amounts up to, in the case of pari-lien debt, 4.25 times first-lien net leverage; in the case of junior-lien debt, 5.25 times secured net leverage; and in the case of unsecured debt, 5.5 times total net leverage.

Mandatory prepayments are from 100% of debt issuances, excluding permitted debt other than refinancing debt; 50% excess cash flow, stepping down to 25% at 4 times first-lien net leverage and 0% at 3 times first-lien net leverage; and 100% of the net cash proceeds from asset sales and casualty insurance and condemnation proceeds, stepping down to 50% at 4 times first-lien net leverage and 0% at 3 times first-lien net leverage, subject to 18-month reinvestment rights.

The company’s $275 million of credit facilities also include a $75 million five-year revolver.

Closing is targeted for the week of June 12.

Proceeds will be used to help fund the combination of Conyers Park Acquisition Corp., a special purpose acquisition company, with Atkins under a new holding company, Simply Good Foods Co.

Under the agreement, the selling shareholders will be paid $628 million in cash and issued about 10 million rollover shares at close.

Other funds for the transaction will come from cash from Conyers.

Pro forma net secured and net leverage are expected to be 2.2 times.

Initially the borrowing entities will be merger subsidiaries. Following the close of the merger the borrowing entities will be NCP-ATK Holdings, Inc., Atkins Nutritional Holdings, Inc., Atkins Nutritional Holdings II, Inc. and Atkins Nutritionals, Inc.

Atkins is a Denver-based developer, marketer and seller of nutritional foods and snacking products.

TKC talk

TKC Holdings, Inc. set price talk for $170 million of incremental term loans on a Thursday, according to a market source.

The deal includes $115 million of an approximately six-year first-lien loan via left lead arranger Jefferies. Talk is Libor plus 400 to 425 bps at 99.5. The tranche features reset soft call protection at 101 for six months.

It also includes $55 million of an approximately seven-year second lien loan via left lead arranger KKR Capital Markets. Talk is Libor plus 775 to 800 bps at 99.5. The second lien deal features reset hard calls at 102 in year one and 101 in year two.

Commitment are due on June 8.

The St. Louis-based provider of commissary, food service and related technology products to the corrections industry plans to use the proceeds to fund a dividend to shareholders.

Douglas sets terms

Douglas GmbH set final terms on €1.67 billion of bank loan debt, according to a market source.

The deal includes a €300 million incremental covenant-light term loan B due August 2022 priced at Euribor plus 325 bps, a 0% Euribor floor and six months of soft call protection. The deal is offered at par. The spread comes 25 bps inside of the tight end of the Euribor plus 350 to 375 bps spread talk. There is a 25 bps step-down if senior secured leverage falls below 4.0-times.

Douglas also repriced its existing €1.37 billion term loan B due August 2022 at Euribor plus 350 bps, a 0% Euribor floor and six months of soft call protection at 101. The repriced loan is also offered at par, and also features a 25 bps step down if senior secured leverage falls to 4.0 times.

Commitments are due June 6.

Deutsche Bank is the physical bookrunner on the deal, with joint bookrunners Goldman Sachs, JPMorgan Securities LLC and UniCredit.

Term loan ratings are expected at B1/B.

Douglas is a Hagen, Germany-based retailer of beauty and personal care products.

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