Paysafe, Calpine, Warner Music, Barbri free to trade; AGS updates pricing, moves deadline

By Sara Rosenberg

New York, Dec. 1 – Paysafe Group plc’s first-and second-lien term loans broke for trading on Friday above their original issue discounts, and deals from Calpine Corp., Warner Music Group (WMG Acquisition Corp.) and Barbri hit the secondary market as well.

Over in the primary market, AGS (AP Gaming I LLC) modified the issue price on its incremental first-lien term loan and accelerated the commitment deadline.

Also, Compass Power Generation LLC and Sequa Corp. released price talk with launch, and Glass Mountain Pipeline LLC and BenefitMall (BMC Acquisition Inc.) joined the near-term calendar.

Paysafe breaks

Paysafe’s bank debt emerged in the secondary market on Friday, with the $1.01 billion seven-year covenant-light first-lien term loan quoted at par ¼ bid, par ½ offered and the $200 million eight-year covenant-light second-lien term loan quoted at 101 bid, 102 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 350 basis points with a 1% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months,

The second-lien term loan is priced at Libor plus 725 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.

On Thursday, the first-lien term loan was upsized from $957.5 million and the second-lien term loan was downsized from $250 million.

Paysafe euro loans

Along with the U.S. term loans, Paysafe is getting a $957.5 million equivalent euro seven-year covenant-light first-lien term loan and a $250 million equivalent euro eight-year covenant-light second-lien term loan.

The euro first-lien term loan is priced at Euribor plus 325 bps, after flexing on Thursday from Euribor plus 350 bps. This loan has a 0% floor and 101 soft call protection for six months, and was sold at an original issue discount of 99.5.

Pricing on the euro second-lien term loan is Euribor plus 700 bps with a 0% floor and it was issued at a discount of 99. The debt has call protection of 102 in year one and 101 in year two.

Credit Suisse, Jefferies, Morgan Stanley, BMO and Deutsche Bank are leading the deal that will be used to help fund the buyout of the company by Blackstone and CVC.

Paysafe is an Isle of Man-based provider of end-to-end payment solutions.

Calpine hits secondary

Calpine’s term debt began trading too, with the $1,564,000,000 term loan B-5 due January 2024, $540 million term loan B-6 due January 2023 and $555 million term loan B-7 due May 2023 all quoted at par bid, par ¼ offered, a trader remarked.

Pricing on the term loans is Libor plus 250 bps with a 0% Libor floor and they were issued at par. The debt has 101 soft call protection for six months.

On Thursday, the spread on the loans firmed at the high end of the Libor plus 225 bps to 250 bps talk and the issue price finalized at the tight end of the 99.75 to par talk.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the $2,659,000,000 in term loans (Ba2/BB) that will be used to reprice an existing term loan B-5 down from Libor plus 275 bps with a 0.75% Libor floor, and existing term B-6 and term B-7 loans down from Libor plus 275 bps with a 0% Libor floor.

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

Warner Music tops par

Warner Music’s $1,006,000,000 covenant-light first-lien term loan due November 2023 also freed up, with levels quoted at par 1/8 bid, par 3/8 offered, according to a market source.

The term loan is priced at Libor plus 225 bps with a 0% Libor floor and was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 250 bps with a 0% Libor floor.

Warner Music is a New York-based music company.

Barbri starts trading

Another deal to break was Barbri, with its $185 million six-year first-lien term loan seen at 99¾ bid, par ¼ offered, a trader said.

Pricing on the first-lien term loan is Libor plus 425 bps with a step-down to Libor plus 400 bps based on leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, the first-lien term loan was upsized from $175 million, the step-down was added and the discount was tightened from 99.

The company’s $280 million of senior secured credit facilities also include a $20 million five-year revolver and a $75 million privately-placed second-lien term loan.

Antares Capital is leading the deal that will be used to refinance the company’s existing $286 million in senior secured credit facilities first put in place in 2011.

Barbri, a Leeds Equity Partners portfolio company, is a Dallas-based provider of practical legal education.

AGS tweaks deal

AGS tightened the issue price on its $65 million incremental senior secured first-lien term loan (B) due Feb. 15, 2024 to par from 99.5 and moved up the commitment deadline to noon ET on Monday from noon ET on Tuesday, a market source remarked.

The term loan is priced at Libor plus 550 bps with a 1% Libor floor.

Jefferies LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund an acquisition and for general corporate purposes.

AGS is a Las Vegas-based manufacturer and operator of gaming machines.

Compass Power guidance

Compass Power Generation had its lenders’ presentation on Friday and announced talk on its $700 million seven-year term loan B at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $760 million of senior secured credit facilities (BB-) also include a $60 million revolver.

Commitments are due on Dec. 14, the source said.

Morgan Stanley Senior Funding Inc. and MUFG are leading the deal that will be used to refinance existing debt, fund a distribution to Starwood Energy Group, fund a capital expenditure reserve and pay transaction costs.

Compass Power Generation, a Starwood Energy Group portfolio company, is a 1.2 GW natural gas power portfolio.

Sequa discloses talk

Sequa came out with talk of Libor plus 500 bps with a 50 bps step-down if corporate ratings are B3/B-/B- or better with a stable outlook, a 1% Libor floor, a par issue price and 101 soft call protection for six months on its roughly $918 million senior secured term loan B (B3/B-/B) due Nov. 28, 2021 that launched with a morning call, a market source said.

Current corporate ratings are Caa1/B-/B-.

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

Barclays is leading the deal that will be used to reprice an existing term loan B down from Libor plus 550 bps with a 1% Libor floor.

Sequa is a Palm Beach Gardens, Fla.-based aerospace and diversified industrial company.

Glass Mountain on deck

Glass Mountain Pipeline set a lenders’ presentation for 10:30 a.m. ET on Tuesday to launch $325 million of senior secured credit facilities, according to a market source.

The facilities consist of a $25 million revolver and a $300 million term loan B, the source said.

Morgan Stanley Senior Funding and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the acquisition of Glass Mountain by BlackRock Inc.’s Global Energy and Power Infrastructure Fund, in partnership with Navigator Energy Services, from SemGroup Corp. and NGL Energy Partners LP.

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

Glass Mountain is a midstream asset consisting of a fully integrated, roughly 260-mile crude transportation system linking the STACK, Mississippi Lime, and Granite Wash plays to Cushing, Okla.

BenefitMall readies deal

BenefitMall scheduled a bank meeting for 1 p.m. ET in New York on Monday to launch $270 million of credit facilities, a market source said.

The facilities consist of a $40 million revolver and a $230 million seven-year covenant-light first-lien term loan that has a 1% Libor floor and 101 soft call protection for six months, the source added.

Commitments are due on Dec. 14.

Credit Suisse Securities (USA) LLC is the left lead on the deal, which will be used with equity to fund the buyout of the company by The Carlyle Group from an investor group led by Austin Ventures.

Closing is expected this year, subject to customary conditions.

BenefitMall is a Dallas-based provider of employee benefits and payroll services to small and medium sized businesses.

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