Science Applications, Genoa free to trade; Aspen Dental revises commitment deadline

By Sara Rosenberg

New York, April 21 – Science Applications International Corp.’s term loan made its way into the secondary market on Tuesday, with levels quoted above par, and Genoa, A QoL Healthcare Co. LLC began trading as well.

Meanwhile, in the primary market, Aspen Dental Management Inc. accelerated the commitment deadline on its credit facility, and WASH Multifamily Laundry Systems LLC, PrimeSource Building Products (PriSo Acquisition Corp.) and RCN Cable (RCN Services Telecom LLC) came out with price talk on their new deals with launch.

Furthermore, TTM Technologies Inc. brought back its acquisition financing transaction, Penton Media Inc. approached lenders with an incremental loan, and Cinemark USA Inc., Concentra Inc. and Metaldyne LLC joined this week’s calendar.

Science Applications breaks

Science Applications’ $570 million seven-year senior secured covenant-light term B (Ba2/BB) freed up for trading on Tuesday, with levels seen at par 1/8 bid, par 5/8 offered on the break before moving up to par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 300 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 99¾. The debt has 101 soft call protection for six months.

During syndication, pricing on the loan was lowered from Libor plus 325 bps, and the discount tightened from 99½.

Science lead banks

Citigroup Global Markets, Bank of America Merrill Lynch, PNC Capital Markets, SunTrust Robinson Humphrey, UBS AG and Wells Fargo Securities are leading Science Applications’ term loan.

Proceeds will be used to help fund the $790 million acquisition of Scitor Corp. from Leonard Green & Partners.

Closing is expected on May 4, subject to customary conditions.

Science Applications is a McLean, Va.-based technology integrator providing full life-cycle services and solutions in the technical, engineering, and enterprise information technology markets. Scitor is a provider of systems engineering, financial and management consulting, information services and other services.

Genoa starts trading

Genoa, A QoL Healthcare’s credit facility also hit the secondary market, with the $280 million seven-year first-lien covenant-light term loan (B1/B) quoted at par ¼ bid, par ¾ offered and the $140 million eight-year second-lien covenant-light term loan (Caa1/CCC+) quoted at par bid, 101 offered, a trader said.

Pricing on the first-lien term loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 775 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

Last week, the first-lien term loan was upsized from $265 million, pricing was cut from Libor plus 425 bps and the discount was modified from 99, while the second-lien term loan was downsized from $155 million and the spread was reduced from Libor plus 850 bps.

Along with the term loans, the company’s $470 million credit facility includes a $50 million revolver (B1/B).

Genoa being acquired

Proceeds from Genoa’s credit facility will be used to help fund its buyout by Advent International, but existing institutional investors, including Nautic Partners, and the current Genoa management team will retain ownership positions in the company.

Credit Suisse Securities, Deutsche Bank Securities Inc. and Jefferies are leading the credit facility.

The buyout of Genoa, a Tukwila, Wash.-based specialty pharmacy operator, is expected to close this quarter, subject to regulatory approval and other customary conditions.

Aspen Dental moves deadline

Moving to the primary market, Aspen Dental revised the commitment deadline on its $415 million credit facility (B1) to close of business on Wednesday from Friday, according to a market source.

The facility is split between a $35 million revolver, and a $380 million covenant-light term loan talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

RBC Capital Markets, Credit Suisse Securities, BMO Capital Markets, Deutsche Bank Securities and GE Capital Markets are leading the deal that will be used with $150 million of privately placed unsecured debt to fund the recapitalization of the company by American Securities LLC, in partnership with current owners, Ares Management LP and Leonard Green & Partners LP, and management.

First-lien leverage is 3.9 times, and total leverage is 5.4 times.

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

WASH discloses guidance

WASH Multifamily Laundry held its bank meeting on Tuesday morning, and with the event, price talk on is first- and second-lien term loans was announced, according to a market source.

The $475 million seven-year first-lien covenant-light term loan B (B2/B) is talked at Libor plus 350 bps to 375 bps with a 25 bps step-down at 3.5 times net first-lien leverage, a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months. The $150 million eight-year second-lien covenant-light term loan (Caa2/CCC+) is talked at Libor plus 750 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $685 million senior secured credit facility also includes a $60 million five-year revolver.

Commitments are due on May 1, and closing is expected in mid-May, the source added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Natixis Securities North America Inc. are leading the deal that will help fund the buyout of the El Segundo, Calif.-based provider of common room laundry services by EQT Infrastructure II Fund from CHS Capital LLC.

PrimeSource talk emerges

PrimeSource released price talk of Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99 on its $325 million seven-year covenant-light term loan B (B2/B+) that launched with a morning bank meeting, a source remarked.

The term loan B has 101 soft call protection for six months.

Commitments are due at noon ET on May 1, the source added.

The company’s $625 million credit facility also includes a $300 million ABL revolver.

Deutsche Bank Securities, BMO Capital Markets, Credit Suisse Securities, Goldman Sachs Bank USA and Nomura are leading the loan financing that will be used with $230 million of senior notes to help fund the buyout of the company by Platinum Equity LLC from Itochu.

PrimeSource is a Dallas-based two-step building products distributor.

RCN Cable repricing

RCN Cable held a call to launch a repricing of its $759.2 million term loan due March 2020 to Libor plus 325 bps with a 1% Libor floor from Libor plus 350 bps with a 1% Libor floor, a market source said.

The repriced loan will have 101 soft call protection for six months and is offered at par, the source continued.

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

SunTrust Robinson Humphrey is leading the deal for the cable provider.

TTM returns

TTM Technologies held a call during the session to launch a $775 million six-year first-lien term loan, which is talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount in the 95 area and 101 soft call protection for six months, and a $175 million seven-year second-lien term loan, according to sources.

J.P. Morgan Securities LLC and Barclays are leading the deal that will be used to help fund the acquisition of Viasystems Group Inc. and refinance existing debt at both companies.

For the Viasystems acquisition, the company had launched in January a $765 million term loan B with talk of Libor plus 450 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months and a $350 million senior secured second-lien notes offering, but that debt was pulled due to unfavorable conditions.

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

Pro forma total leverage is 3.5 times, and first-lien leverage is 2.4 times.

TTM Technologies is a Costa Mesa, Calif.-based printed circuit board manufacturer. Viasystems is a St. Louis-based provider of complex multi-layer printed circuit boards and electro-mechanical solutions.

Penton Media launches

Penton Media hosted a lender call at noon ET on Tuesday to launch a fungible $60 million incremental term loan that is priced in line with the existing term loan at Libor plus 425 bps with a 1.25% Libor floor, a market source said.

GE Capital Markets is leading the deal.

Proceeds will be used to support acquisitions.

Penton is a New York-based tradeshow and professional information services company.

Cinemark readies call

Also in the primary, Cinemark set a lender call for Wednesday to launch an extension of the maturity on its roughly $684.3 million term loan B to a seven-year maturity from a current maturity of Dec. 18, 2019, according to a market source.

The term loan B is currently priced at Libor plus 300 bps with no Libor floor.

Barclays, Morgan Stanley Senior Funding, Deutsche Bank Securities and Wells Fargo Securities are leading the deal.

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

Concentra coming soon

Concentra scheduled a bank meeting for Wednesday to launch a $500 million credit facility that consists of a $50 million five-year revolver and a $450 million seven-year term loan B, according to a market source.

JPMorgan is leading the deal.

Proceeds will be used with equity to fund the acquisition of the company by MJ Acquisition Corp., a joint venture between Select Medical Holdings Corp. and Welsh, Carson, Anderson & Stowe, from Humana Inc. for about $1,055,000,000 in cash, subject to customary adjustments.

Closing is expected this quarter, subject to Hart Scott Rodino regulatory clearance and customary conditions.

Concentra is a health-care company that delivers a wide range of medical services to employers and patients.

Metaldyne on deck

Metaldyne will hold a lender call on Thursday to launch a repricing of its term loan, and an up to €250 million term loan that will repay a portion of the existing U.S. dollar term loan, according to a market source.

Current pricing on the existing term loan is Libor plus 325 bps with a 1% Libor floor.

Goldman Sachs Bank USA is leading the deal.

Metaldyne is a Plymouth, Mich.-based manufacturer of highly engineered metal-based components for engine, transmission and driveline applications in the automotive and light truck markets.

Concordia closes

In other news, Concordia Healthcare Corp. completed its $700 million senior secured credit facility that consists of a $125 million revolver and a $575 million seven-year term loan B, a news release said.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99½. The debt has 101 soft call protection for one year.

During syndication, the term loan was downsized from $650 million as the company’s bond offering was upsized to $735 million from $610 million, pricing was cut from talk of Libor plus 400 bps to 425 bps, the discount was changed from 99, and the call protection was extended from six months. Also, the revolver was upsized from $100 million.

RBC Capital Markets LLC, Morgan Stanley, GE Capital Markets and TD Securities (USA) LLC led the deal that was used with the bonds and equity to fund the $1.2 billion acquisition of Covis Pharma Holdings Sarl, a Zug, Switzerland-based pharmaceutical company, and to refinance existing debt.

Concordia is an Oakville, Ont.-based health-care company.

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