Kronos, AssuredPartners, Dayco break; Digicel International term loan B changes surface

By Sara Rosenberg

New York, May 8 – Kronos Inc.’s term loan B hit the secondary market on Monday, with levels quoted above its issue price, and deals from AssuredPartners Inc. and Dayco Products LLC freed to trade as well.

Switching to the primary market, Digicel International Finance Ltd. increased the size of its term loan B, trimmed the spread and set the original issue discount at the tight side of talk, and Consolidated Container Co., Equian LLC and Charter NEX US Inc. accelerated the commitment deadlines on their loan transactions.

Also, Warner Music Group (WMG Acquisition Corp.), Four Seasons Hotels and Resorts, Emerald Expositions Holding Inc., Mister Car Wash, ClubCorp Club Operations Inc., MotorCity Casino Hotel and National Veterinary Associates released price talk with launch.

In addition, CIBT, TRC Cos. Inc., Hyperion Insurance Group Ltd., KIK Custom Products Inc., Blue Buffalo Co. and Aptean Inc. joined this week’s primary calendar.

Kronos frees up

Kronos’ $2,344,000,000 term loan B began trading on Monday, with levels quoted at par ¼ bid, par ½ offered on the break, and then it moved up to par 3/8 bid, par 5/8 offered, according to a market source.

Pricing on the term loan is Libor plus 350 basis points with a step-down to Libor plus 325 bps at 4.25 times net first-lien leverage and a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the term loan B was upsized from $2,294,000,000, pricing firmed at the high end of the Libor plus 325 bps to 350 bps talk and the step-down was added.

Nomura, Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance an existing term loan B priced at Libor plus 400 bps with a 1% Libor floor, and, due to the upsizing, for general corporate purposes.

Kronos is a Chelmsford, Mass.-based provider of workforce management software.

AssuredPartners breaks

AssuredPartners’ $1,123,000,000 term loan (B2) also freed up, with levels seen at par ¼ bid, par ½ offered, a trader said.

The term loan is priced at Libor plus 350 bps with a 0% Libor floor, and was issued at par.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, Barclays, Macquarie Capital (USA) Inc. and BMO Capital Markets Corp. are leading the deal that will be used to reprice an existing term loan from Libor plus 425 bps with a 1% Libor floor.

AssuredPartners is a Lake Mary, Fla.-based provider of property and casualty and employee benefits insurance brokerage services.

Dayco tops OID

Dayco Products’ $475 million six-year senior secured covenant-light term loan (B2/B+) emerged in the secondary market too, with levels quoted at 99½ bid, par ¼ offered, a market source remarked.

Pricing on the term loan is Libor plus 500 bps with a 0% Libor floor, and it was sold at an original issue discount of 99. The loan has 101 soft call protection for one year.

During syndication, pricing on the loan was increased from talk of Libor plus 375 bps to 400 bps, the discount widened from 99.5, the call protection was extended from six months and the maturity was shortened from seven years.

Bank of America Merrill Lynch, Barclays and Wells Fargo Securities LLC are leading the deal that will be used to repay existing term loan and revolver borrowings.

Dayco is a Troy, Mich.-based manufacturer of highly engineered engine management systems.

Digicel reworks term B

Meanwhile, in the primary market, Digicel lifted its seven-year covenant-light first-lien term loan B to $955 million from $635 million, cut pricing to Libor plus 375 bps from Libor plus 400 bps and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

As before, the term loan B has a 1% Libor floor and 101 soft call protection for six months.

The company’s now $1,355,000,000 of new credit facilities also include a $100 million revolver and a $300 million term loan A.

Commitments were due at 5 p.m. ET on Monday, accelerated from 5 p.m. ET on Tuesday, the source said.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint lead arrangers on the deal and joint bookrunners with Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.

Proceeds will refinance existing senior secured credit facilities, and funds from the term loan B upsizing will be used to repay 7% Digicel Ltd. notes due 2020, for general corporate purposes including capital expenditures, and up to $15 million may be used to finance the acquisition of IDOM Technologies.

Digicel, a Hamilton, Bermuda-based provider of communication services in the Caribbean and South Pacific regions, is expected to close on the credit facilities late this month.

Consolidated Container accelerated

Consolidated Container accelerated the commitment deadline on its $605 million seven-year senior secured covenant-light first-lien term loan B (B3/B+) to 5 p.m. ET on Tuesday from 1 p.m. ET on Wednesday, according to a market source.

The term loan is talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $730 million in credit facilities also include a $125 million ABL revolver.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the acquisition of the company by Loews Corp. from Bain Capital Private Equity for about $1.2 billion, subject to customary purchase price adjustments.

Consolidated Container will be a part of a newly created segment called Loews Packaging Group.

Closing is expected this quarter, subject to customary conditions.

Consolidated Container is an Atlanta-based rigid plastic packaging manufacturer.

Equian tweaks timing

Equian accelerated the commitment deadline on its $355 million in senior secured credit facilities to 1 p.m. ET on Wednesday from Thursday, according to a market source.

The facilities consist of a $30 million five-year revolver talked at Libor plus 375 bps to 400 bps with a 0% Libor floor and a $325 million seven-year covenant-light first-lien term loan B talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc. and UBS Investment Bank are leading the deal that will be used to refinance existing debt and to fund general corporate purposes.

Equian is an Indianapolis-based payment integrity platform.

Charter NEX changes deadline

Charter NEX moved up the commitment deadline on its $585 million seven-year first-lien term loan to 10 a.m. ET on Tuesday from Thursday, a market source said.

Talk on the term loan is Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company’s $660 million in credit facilities also include a $75 million revolver.

Jefferies Finance LLC and Nomura are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners LP from Pamplona Capital Management.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

Warner Music launches

In more primary news, Warner Music Group surfaced in the morning with plans to hold a lender call at 2 p.m. ET to launch a $1,006,000,000 covenant-light first-lien term loan due November 2023 (Ba3/B) talked at Libor plus 250 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan from Libor plus 275 bps with a 1% Libor floor.

Warner Music is a New York-based music company.

Four Seasons details emerge

Four Seasons Hotels and Resorts launched on its afternoon call a repricing of its existing $897.75 million senior secured covenant-light first-lien term loan due Nov. 30, 2023 talked at Libor plus 250 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Existing lender commitments are due at 5 p.m. ET on May 15, and new lender commitments are due at 5 p.m. ET on May 16, the source added.

Citigroup Global Markets Inc. is leading the deal that will reprice the existing term loan down from Libor plus 300 bps with a 0.75% Libor floor.

Closing is expected on May 31.

Four Seasons is a Toronto-based luxury hotels company.

Emerald refinancing

Emerald Expositions hosted a bank meeting on Monday to launch $715 million in credit facilities (B1/BB), according to a market source.

The facilities consist of a $565 million seven-year term loan talked at Libor plus 300 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and a $150 million revolver.

Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, RBC Capital Markets, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance an existing revolver and term loan.

Emerald Expositions is a San Juan Capistrano, Calif.-based operator of business-to-business trade shows.

Mister Car holds call

Mister Car Wash held its lender call, launching its $40 million incremental term loan and a repricing of its existing $434 million term loan at talk of Libor plus 375 bps with a 25 bps step-down at 4 times first-lien leverage, a 1% Libor floor and 101 soft call protection for six months, according to a market source.

The incremental term loan is offered with an original issue discount of 99.75, and the repricing is offered at par, the source said.

Commitments are due on Friday.

Jefferies LLC is leading the deal.

The incremental loan will be used for general corporate purposes and to pay down revolver borrowings, and the repricing will take the existing term loan down from Libor plus 425 bps with a 25 bps step-down and a 1% Libor floor.

Mister Car Wash is a Tucson, Ariz.-based car wash company.

ClubCorp repricing

ClubCorp held its lender call in the morning, launching a repricing of its $651 million senior secured covenant-light term loan (Ba3/BB-) due Dec. 15, 2022 at talk of Libor plus 275 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Existing lender commitments are due at 5 p.m. ET on May 15 and new lender commitments are due at 5 p.m. ET on May 16, the source added.

Citigroup Global Markets Inc. is leading the deal that will reprice the existing term loan down from Libor plus 300 bps with a 1% Libor floor.

Closing is expected on May 23, the source added.

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

MotorCity comes to market

MotorCity launched during the session a $446.3 million term loan B due August 2021 talked at Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months, a market source remarked.

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

Bank of America Merrill Lynch and Fifth Third are leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 0.75% Libor floor.

MotorCity Casino Hotel is Detroit-based casino and hotel.

National Veterinary add-on

National Veterinary Associates approached lenders with a fungible $150 million add-on term loan B-2 due August 2021 talked at Libor plus 350 bps with a 1% Libor floor and a par issue price, according to a market source.

The add-on loan is split between a $75 million funded tranche and a $75 million delayed-draw tranche.

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

Bank of America Merrill Lynch, Jefferies LLC, RBC Capital Markets and Nomura are leading the deal that will be used for general corporate purposes, including acquisitions.

National Veterinary is an Agoura Hills, Calif.-based owner of independent freestanding veterinary hospitals.

CIBT on deck

CIBT set a lender meeting in New York for Thursday to launch $515 million in credit facilities, a market source said.

The facilities consist of a $65 million five-year revolver, a $330 million seven-year covenant-light first-lien term loan and a $120 million eight-year covenant-light second-lien term loan, the source added.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by Kohlberg Management VIII LLC from ABRY Partners.

CIBT is a McLean, Va.-based provider of mobility solutions, offering expedited visa, work permit, immigration, passport and other related value-added services.

TRC sets meeting

TRC scheduled a bank meeting for Thursday to launch $375 million in credit facilities, according to a market source.

The facilities consist of a $60 million five-year revolver and a $315 million seven-year covenant-light first-lien term loan, the source said.

UBS Investment Bank, Barclays and Citizens are leading the deal that will be used to help fund the buyout of the company by New Mountain Capital LLC in an all-cash transaction valued at $17.55 per share of common stock.

Closing is expected before June 30, subject to the approval of TRC’s stockholders, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and other customary conditions.

TRC is a Windsor, Conn.-based engineering, environmental consulting and construction management firm.

Hyperion joins calendar

Hyperion Insurance Group will hold a lender call at 10 a.m. ET on Tuesday to launch a repricing of its existing $854,390,863 senior secured first-lien term loan B and a new €100 million incremental senior secured first-lien term loan B, a market source remarked.

The incremental term loan will be used to pay down revolver borrowings, to fund near-term acquisitions and for general corporate purposes.

Morgan Stanley Senior Funding Inc. is leading the deal.

Hyperion is a London-based insurance intermediary group.

KIK plans new deal

KIK Custom Products intends to hold a call at 11 a.m. ET on Tuesday to launch a $200 million add-on senior secured first-lien term loan B due Aug. 26, 2022, according to a market source.

Pricing on the add-on term loan is Libor plus 450 bps with a 1% Libor floor, in line with existing term loan pricing, and the original issue discount is still to be determined, the source said.

Barclays, BMO Capital Market, Nomura, Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used for general corporate purposes, to fund an ABL repayment and to finance a $90 million acquisition.

KIK is an Ontario-based manufacturer of consumer products.

Blue Buffalo coming soon

Blue Buffalo set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a new loan to prospective lenders, according to a market source.

Citigroup Global Markets Inc. is leading the transaction.

Blue Buffalo is a Wilton, Conn.-based pet food company.

Aptean readies loan

Aptean scheduled a lender call for 11 a.m. ET on Tuesday to launch a $50 million senior secured incremental first-lien term loan B, a market source said.

Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc., MUFG and SunTrust Robinson Humphrey Inc. are leading the deal that will be used for general corporate purposes, including to pay down revolver borrowings, to fund near-term acquisitions and to pay fees and expenses related to the financing.

Aptean is an Alpharetta, Ga.-based provider of enterprise application software.

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