NSO, Lonestar free up; Staples improves; RadNet updates loan; Conterra releases guidance

By Sara Rosenberg

New York, April 10 – NSO Group updated its U.S. and euro term loan tranche sizes before breaking for trading on Wednesday, and Lonestar II Generation Holdings LLC’s term loan debt hit the secondary market as well.

Also in trading, Staples Inc.’s seven-year term loan moved a little higher from the previous day’s closing levels.

In more happenings, RadNet Management Inc. revised the original issue discount on its incremental term loan B, and Conterra Ultra Broadband released price guidance on its first-and second-lien term loans.

Furthermore, UFC disclosed original issue discount talk for its add-on first-lien term loan B, details on ION Investment Group’s loan transaction surfaced, and PlayPower Inc. and Kestra Financial Inc. joined this week’s primary calendar.

NSO tweaked

NSO Group modified its six-year term loan (B2/B) to consist of a $395,872,500 tranche and a €100,979,915 tranche, from revised talk of $510 million equivalent split between a €25 million tranche and the remainder a U.S. tranche, and initial talk of $500 million equivalent with a minimum of that amount being in U.S. dollars, according to a market source.

The term loans are priced at Libor/Euribor plus 700 basis points with an original issue discount of 90 and have hard call protection of 102 in year one and 101 in year two. The U.S. term loan has no Libor floor and the euro term loan has a 0% floor.

Earlier in syndication, pricing on the term loans was lifted from Libor/Euribor plus 600 bps, the discount widened from revised talk of 94 and initial talk of 98, the call protection was revised from a 101 soft call for six months, the maturity was shortened from seven years and a first-lien net leverage covenant was added.

NSO breaks

On Wednesday, NSO Group’s U.S. term loan made its way into the secondary market, and levels were quoted at 92 bid, 94 offered, another source remarked.

Jefferies LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund the buyout of the company by management and Novalpina Capital from Francisco Partners.

Along with the term loan debt, the company’s new credit facilities include a five-year revolver.

NSO is a Luxembourg-based cyber-technology company.

Lonestar frees to trade

Lonestar II Generation Holdings’ $280 million of senior secured term loans (Ba3/B+) began trading too, with the strip of $250 million seven-year covenant-lite term loan B and $30 million seven-year covenant-lite term loan C debt quoted at 98½ bid, 99½ offered, according to a trader.

Pricing on the term loans is Libor plus 500 bps with a 0% Libor floor and they were sold at an original issue discount of 98. The loans have 101 soft call protection for six months. Amortization on the term loan B is 1% per annum. The term loan C has no amortization.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund a cash collateralized letter-of-credit account, fund a distribution to the Lonestar Generation LLC balance sheet and pay transaction fees and expenses.

Closing is expected during the week of April 15.

Lonestar II Generation is the owner of a roughly 1.1 GW portfolio of three thermal power generation assets located in Texas and serving the Ercot market.

Staples 2026 loan gains

In more trading news, Staples’ $2 billion seven-year covenant-lite first-lien term loan was quoted at 98 bid, 98 3/8 offered on Wednesday afternoon, up from 97½ bid, 98¼ offered at the close of the previous session, a trader remarked.

The company’s $300 million covenant-lite first-lien term loan due September 2024 was seen at 97 7/8 bid, 98 3/8 offered, unchanged from Tuesday’s close, the trader added.

Both term loans broke for trading on Tuesday at 99 bid, 99½ offered and then softened over the course of the day.

Pricing on the 2024 loan is Libor plus 450 bps with a 0% Libor floor and pricing on the seven-year loan is Libor plus 500 bps with a 0% Libor floor. Both tranches were sold at an original issue discount of 99 and have 101 soft call protection for one year.

The term loans are being used with proceeds from bond offering and an ABL credit facility draw to refinance existing debt and fund a dividend payment.

Staples is a Framingham, Mass.-based business supplies distributor.

RadNet revised

Back in the primary market, RadNet Management changed the original issue discount on its fungible $100 million incremental term loan B due June 30, 2023 to 99.5 from 99.15, a market source said.

The incremental term loan is priced at Libor plus 375 bps, based on the company’s first-lien leverage ratio, with a 1% Libor floor.

Final commitments were due at 5 p.m. ET on Wednesday, the source added.

Barclays is leading the deal that will be used to repay revolving credit facility borrowings, fund cash to the balance sheet for potential future acquisitions and pay related fees and expenses.

RadNet is a Los Angeles-based owner and operator of outpatient diagnostic imaging centers.

Conterra guidance

Conterra Ultra Broadband held its bank meeting on Wednesday and announced price talk on its $250 million seven-year covenant-lite first-lien term loan B (B2) and $65 million eight-year covenant-lite second-lien term loan (Caa2), according to a market source.

Talk on the first-lien term loan is Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 825 bps to 850 bps with a 0% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $365 million of credit facilities also include a $50 million five-year revolver (B2).

Commitments are due on April 24, the source added.

TD Securities (USA) LLC is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Conterra is a provider of bandwidth infrastructure services.

UFC OID talk

UFC came out with original issue discount talk of 99 to 99.5 for its fungible $435 million add-on first-lien term loan B (B2/B+) due August 2023, a market source remarked.

When the loan launched on Tuesday without a lender call, the discount was described as still to be determined.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with existing $1,442,000,000 first-lien term loan pricing, and all of the debt is getting 101 soft call protection for six months.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance the company’s existing $425 million second-lien term loan due 2024.

Furthermore, the company is seeking seek an independent and opportunistic term loan B amendment alongside this transaction, the source added.

Commitments and amendment signature pages are due on April 16.

UFC is a Las Vegas-based mixed martial arts organization and pay-per-view event provider.

ION details emerge

ION Investment Group will hold a bank meeting at 9 a.m. ET on Thursday to launch a $2.2 billion equivalent U.S. and euro term loan, according to a market source. A bank meeting for European investors took place on Wednesday.

The U.S. term loan is talked at Libor plus 550 bps with a 0% Libor floor and an original issue discount of 98.5, and the euro term loan is talked at Euribor plus 500 bps with a 1% floor and a discount of 98.5, the source said.

Commitments are due on April 24.

UBS Investment Bank is leading the deal that will be used for the refinancing of ION’s corporates division, which include Openlink Financial LLC, Wall Street Systems, Triple Point Technology and Allegro.

ION is a provider of mission-critical trading and workflow automation software solutions to financial institutions, central banks, governments and corporations.

PlayPower on deck

PlayPower scheduled a bank meeting for Friday to launch $385 million of first-lien credit facilities, split between a $45 million revolver and a $340 million seven-year covenant-lite first-lien term loan, a market source said.

The company is also getting a $100 million privately placed 7.5-year second-lien term loan.

SG Americas Securities LLC is leading the deal that will be used to fund a dividend and refinance existing debt.

PlayPower is a Huntersville, N.C.-based manufacturer of commercial playground equipment, shade structures and floating dock systems.

Kestra readies deal

Kestra Financial set a bank meeting for 2 p.m. ET on Thursday to launch $485 million of credit facilities (B+), according to a market source.

The facilities consist of a $75 million five-year revolver and a $410 million seven-year term loan, the source said.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus LLC. Stone Point Capital LLC, Kestra Financial’s current majority owner, will maintain a minority stake in the company.

Closing is expected in the second quarter or early in the third quarter, subject to customary regulatory approvals.

Kestra Financial is an Austin, Texas-based provider of an advisor platform to financial professionals.

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