Novelis, HealthPort, TouchTunes break; Avago term loan gains with Broadcom acquisition news

By Sara Rosenberg

New York, May 28 – Novelis Inc., HealthPort Inc. (CT Technologies Intermediate Holdings and Smart Holdings Corp.) and TouchTunes Interactive Networks Inc. saw their deals free up for trading during Thursday’s market hours, and Avago Technologies Ltd.’s term loan was a touch stronger as an agreement to purchase Broadcom Corp. was announced.

Meanwhile, in the primary market, Merrill Communications LLC widened the spread and original issue discount on its term loan, Informatica Corp. carved out a euro term loan B tranche from its originally all-U.S.-dollar term loan B, and CommScope Inc. tightened the spread and issue price on its term loan.

Also, On Assignment Inc. shifted funds between its revolver and term loan B and trimmed term B pricing, and Paradigm Outcomes (Paradigm Acquisition Corp.) increased the spread on its term loan, modified the issue price and extended the call protection.

In addition, Emerging Markets Communications LLC and Navios Maritime Midstream Partners LP disclosed price talk with launch, Survey Sampling International LLC disclosed original issue discount guidance, and Royal Adhesives & Sealants LLC and Minimax Viking joined the near-term calendar.

Novelis tops OID

Novelis’ $1.8 billion seven-year covenant-light term loan (Ba2/BB) broke for trading on Thursday, with levels seen at 99¾ bid, par offered, and then it moved up to 99 7/8 bid, par 1/8 offered, according to a trader.

Pricing on the loan is Libor plus 325 basis points, after firming recently at the high end of the Libor plus 300 bps to 325 bps talk. The debt has a 0.75% Libor floor and 101 soft call protection for six months and was sold at an original issue discount of 99.5.

Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to repay a term loan due in 2017 and ABL revolver borrowings.

Novelis is an Atlanta-based aluminum-rolled products and aluminum recycling company.

HealthPort starts trading

HealthPort’s $155 million first-lien incremental term loan due December 2021 and repriced $324.2 million first-lien term loan due December 2021 hit the secondary as well, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the incremental term loan and the repricing is Libor plus 425 bps with a 1% Libor floor, and the debt has 101 soft call protection for six months. The incremental was issued at a discount of 99.5, and the repricing was issued at par.

Credit Suisse Securities, Deutsche Bank Securities and Jefferies Finance LLC are leading the incremental term loan that will be used to fund the acquisition of IOD Inc., and Credit Suisse is leading the repricing that will take the existing term loan pricing down from Libor plus 500 bps with a 1% Libor floor.

Closing on the acquisition is expected to close this quarter, subject to regulatory approvals and conditions.

HealthPort is an Alpharetta, Ga.-based provider of medical information access management and compliance services to health-care organizations. IOD is a health information management company.

TouchTunes frees up

TouchTunes’ credit facility began trading too, with the $170 million six-year first-lien term loan (B1/B+) quoted at par bid, par ½ offered and the $62.5 million seven-year second-lien term loan (Caa1/CCC+) quoted at 99¼ bid, par offered, a source remarked.

Pricing on the first-lien term loan is Libor plus 475 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was issued at a discount of 98.5. This debt has hard call protection of 102 in year one and 101 in year two.

During syndication, the spread on the first-lien term loan firmed at the high end of the Libor plus 450 bps to 475 bps talk, and the discount tightened from 99, and pricing on the second-lien term loan finalized at the low end of the Libor plus 825 bps to 850 bps talk while the discount was revised from 98.

The company’s $257.5 million credit facility also includes a $25 million revolver (B1/B+).

Citizens Bank and Societe Generale are leading the deal that will be used to help fund Searchlight Capital Partners LP’s buyout of the New York-based in-venue interactive music and entertainment platform.

Avago inches up

Also in trading, Avago Technologies’ term loan moved to par 1/8 bid, par 3/8 offered from par bid, par ¼ offered following the announcement that the company is buying Broadcom Corp., according to a trader.

The trader explained that the acquisition won’t close until the first quarter of 2016, so the loan will be “yield-to-call paper for a longer time.”

In connection with the transaction, Avago plans on getting a $16 billion credit facility, comprised of a $500 million undrawn revolver and $15.5 billion of new term loans, of which $6.5 billion will be used to refinance existing debt facilities and $9 billion will be used with cash on hand to fund the Broadcom purchase.

Avago is acquiring Broadcom for $17 billion in cash and the economic equivalent of about 140 million Avago ordinary shares, valued at $20 billion as of May 27.

Pro forma gross debt will be 2.7 times, and net debt will be 2.5 times, with $750 million of synergies.

Closing is subject to regulatory approvals and the approval of Avago’s and Broadcom’s shareholders.

Avago is a semiconductor company with headquarters in Singapore and San Jose, Calif. Broadcom is an Irvine, Calif.-based semiconductor company. The combined entity will adopt the name Broadcom Ltd.

Merrill raises pricing

Switching to the primary market, Merrill Communications lifted the spread on its $510 million seven-year first-lien term loan to Libor plus 525 bps from Libor plus 475 bps and changed the original issue discount to 98.5 from 99, a market source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for one year.

Last week, the company added a net first-lien leverage covenant to the originally covenant-light term loan.

Along with the term loan, the new $560 million credit facility (B2/BB-) includes a $50 million revolver.

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

Credit Suisse Securities and BMO Capital Markets are leading the deal that will be used to refinance existing debt.

Merrill is a St. Paul-based provider of outsourcing solutions for complex business communication and information management.

Informatica adds euro loan

Informatica added a €250 million seven-year covenant-light term loan B to its credit facility, and as a result, downsized its U.S.-dollar seven-year covenant-light term loan B to $1,605,000,000 from $1,875,000,000, according to a market source.

The euro carve-out term loan is talked at Euribor plus 375 bps with a 1% floor, an original issue discount of 99.5 and101 soft call protection for six months, the source said.

Talk on the U.S. term loan was unchanged at Libor plus 375 bps with a 1% Libor floor, a discount of 99.5 and 101 soft call protection for six months.

The company’s $2,025,000,000 senior secured credit facility (B2/B) also includes a $150 million revolver.

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

Informatica lead banks

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities, Macquarie Capital (USA) Inc., Morgan Stanley Senior Funding Inc., Nomura Securities International Inc., RBC Capital Markets LLC and Deutsche Bank Securities are leading Informatica’s credit facility.

Proceeds will be used with $750 million of unsecured notes and about $2,542,000,000 in equity to fund the buyout of the company by Permira funds and Canada Pension Plan Investment Board for $48.75 in cash per share. The transaction is valued at $5.3 billion.

Closing is expected in the second or third quarter, subject to shareholder and regulatory approval.

Informatica is a Redwood City, Calif., provider of enterprise data integration software and services.

Commscope changes emerge

CommScope cut pricing on its $1.25 billion incremental 7.5-year covenant-light term loan B (Ba2/BB) to Libor plus 300 bps from Libor plus 325 bps and changed the original issue discount to 99.75 from 99.5, a market source said.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

Commitments were due at 2 p.m. ET on Thursday, the source added.

JPMorgan, Bank of America Merrill Lynch, Deutsche Bank Securities and Wells Fargo Securities LLC are leading the deal that will be used with $1.5 billion of senior unsecured notes, $500 million of senior secured notes and cash on hand to fund the acquisition of TE Connectivity’s Telecom, Enterprise and Wireless businesses in an all-cash transaction valued at about $3 billion.

Closing is expected by year-end, subject to financing, regulatory approvals and other customary conditions.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

On Assignment restructures

On Assignment downsized its seven-year covenant-light term loan B to $825 million from $875 million and reduced pricing to Libor plus 300 bps from Libor plus 350 bps, while leaving the 0.75% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

With the term loan B downsizing, the company’s revolver was upsized to $150 million from $100 million, the source said.

Commitments are due at noon ET on Friday, moved up from the original Monday deadline.

Wells Fargo Securities is leading the $975 million credit facility (Ba2/BB) that will be used to help fund the acquisition of Creative Circle LLC for $540 million in cash and $30 million of common stock, and to refinance existing debt. The purchase price for Creative Circle may include up to an additional $30 million based on future operating performance.

Closing is expected this quarter, subject to regulatory approvals and customary conditions.

On Assignment is a Calabasas, Calif.-based provider of diversified professional staffing solutions. Creative Circle is a digital/creative staffing firm.

Paradigm reworks deal

Paradigm Outcomes lifted pricing on its $222 million seven-year covenant-light first-lien term loan to Libor plus 500 bps from Libor plus 450 bps, moved the original issue discount to 98.5 from 99 and extended the 101 soft call protection to one year from six months, a source said.

Also modified was the excess cash flow sweep, the incremental allowance and the restricted payments capacity, the source continued.

The term loan still has a 1% Libor floor.

The company’s $247 million credit facility (B1/B) also includes a $25 million revolver.

Commitments are due at 3 p.m. ET on Friday, the source added.

Credit Suisse Securities and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Summit Partners LP from Lightyear Capital.

Paradigm is a Walnut Creek, Calif.-based provider of catastrophic and complex case management for the workers’ compensation industry.

Emerging Markets reveals talk

Also on the primary front, Emerging Markets Communications held its bank meeting on Thursday, and with the event, price talk on its first- and second-lien term loans was announced, according to a market source.

The $268 million seven-year first-lien term loan B (B+) is talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $92 million eight-year second-lien term loan (CCC+) is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $400 million credit facility also includes a $40 million revolver (B+).

Commitments are due on June 10, the source added.

Morgan Stanley Senior Funding, Citizens Bank and Macquarie Capital are leading the deal that will be used to fund the acquisition of MTN Communications and to refinance existing debt.

Closing is expected by the end of this quarter, subject to regulatory review and other customary conditions.

Emerging Markets Communications is a Miami-based provider of hybrid global satellite and terrestrial communications. MTN is a Miramar, Fla.-based provider of communications and content for remote locations.

Navios sets guidance

Navios Maritime Midstream Partners released talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $205 million five-year senior secured first-lien term loan B (BB-) that launched with an afternoon call, according to a market source.

Commitments are due on June 11, the source remarked.

Morgan Stanley Senior Funding, JPMorgan and Deutsche Bank Securities are leading the deal, which will be used to finance the proposed acquisition of up to two vessels from Navios Maritime Acquisition Corp. and to refinance existing term debt.

Navios Maritime is a Monaco-based publicly traded master limited partnership that owns and operates crude oil tankers under long-term employment contracts.

Survey Sampling OID surfaces

Survey Sampling came out with original issue discount talk of 99.5 on its fungible $36 million incremental term loan that launched with a lender call during the session, a source remarked.

As previously reported, pricing on the incremental loan is Libor plus 500 bps with a 1% Libor floor, in line with the company’s existing $212 million term loan.

Commitments are due on June 11, the source added.

GE Capital Markets is leading the deal that will be used for merger and acquisition purposes.

Survey Sampling is a Shelton, Conn.-based provider of data solutions and technology for consumer and business-to-business research.

Royal Adhesives on deck

Royal Adhesives set a bank meeting for 3 p.m. ET in New York on Monday to launch a $755 million credit facility, according to a market source.

The facility consists of a $50 million revolver (B1), a $535 million seven-year first-lien covenant-light term loan (B1) talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and a $170 million eight-year second-lien covenant-light term loan (Caa1) talked at Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on June 11.

Credit Suisse Securities, Morgan Stanley Senior Funding, Jefferies Finance and KeyBanc Capital Markets are leading the deal that will be used to help fund the buyout of the South Bend, Ind.-based specialty adhesives and sealants company by American Securities LLC from Arsenal Capital Partners.

Closing is expected in June, subject to customary conditions and regulatory approvals.

Minimax Viking readies deal

Minimax Viking is scheduled to hold a lender call at 9 a.m. ET on Friday to launch a repricing of its U.S. dollar and euro term loans due 2020 that is talked at Libor/Euribor plus 275 bps to 300 bps with a 1% floor, a par issue price and 101 soft call protection for six months, a market source remarked.

The U.S. loan is sized at $422 million, and the euro loan is sized at €315 million, and aggregate debt will be repaid by €60 million-equivalent with this transaction.

Commitments are due at 5 p.m. ET on June 8, the source added.

Deutsche Bank Securities is leading the deal.

Minimax Viking is a fire protection company with headquarters in Bad Oldesloe in Schleswig-Holstein.

Calpine closes

In other news, Calpine Corp. completed its $1.6 billion seven-year senior secured term loan B-5 (Ba3) that is priced at Libor plus 275 bps with a 0.75% Libor floor, according to a news release. The loan was issued at a discount of 99.5 and has 101 soft call protection for six months.

During syndication, the term loan was downsized from $1.65 billion, and the original issue discount finalized at the tight end of the 99 to 99.5 talk.

Morgan Stanley Senior Funding, Goldman Sachs Bank USA, MUFG Union Bank, Barclays and RBC Capital Markets led the deal that was used to refinance about $1.6 billion in term loan debt due 2018 that was priced at Libor plus 300 bps with a 1% Libor floor.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

ClubCorp completes repricing

ClubCorp Club Operations Inc. closed on the repricing of its $901.1 million covenant-light senior secured term loan (B1) due July 24, 2020 to Libor plus 325 bps with a 1% Libor floor from Libor plus 350 bps with a 1% Libor floor, a news release said.

The repriced loan was issued at par and has 101 soft call protection for six months.

During syndication, the spread on the loan firmed at the wide end of the Libor plus 300 bps to 325 bps talk.

Citigroup Global Markets led the deal.

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

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