Insight Global breaks; Fortescue Metals inches up on partial repayment; ConvergeOne tweaks deal

By Sara Rosenberg

New York, Sept. 13 – Insight Global (IG Investment Holdings LLC) finalized the original issue discount on its tack-on first-lien term loan at the tight end of guidance, and then the debt freed up for trading on Tuesday afternoon, and Fortescue Metals Group Ltd.’s term loan was a touch higher with paydown news.

Moving to the primary market, ConvergeOne Holdings Corp. eliminated plans for a portable capital structure under its credit facility, and Intellectual Property & Science (Camelot Finance LP) accelerated the commitment deadline on its credit facility.

Also, Nexstar Broadcasting Group Inc., Consolidated Communications Inc., Constantia Flexibles, Acadia Healthcare Co. Inc., Wesco Aircraft Hardware Corp. and Fitness International LLC (LA Fitness) disclosed price talk with launch.

Additionally, Press Ganey Inc. came out with timing on the launch of its credit facility, and Gypsum Management and Supply Inc. (GYP Holdings III Corp.), Orion Engineered Carbons SA, Camping World Good Sam, American Airlines Group Inc. and ClubCorp Club Operations Inc. emerged with new deal plans.

Insight firms OID, trades

Insight Global set the original issue discount on its $170 million tack-on first-lien term loan (B1) due October 2021 at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The tack-on term loan is priced at Libor plus 500 basis points with a 1% Libor floor and has 101 soft call protection through April 22, 2017, which is all in line with the existing first-lien term loan.

With final terms in place, the tack-on loan made its way into the secondary market on Tuesday, and levels were seen at par bid, par ½ offered, the source said.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to repay an existing $170 million second-lien term loan.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

Fortescue strengthens

Also in trading, Fortescue’s term loan B moved up to 99¾ bid, par offered from 99 5/8 bid, 99 7/8 offered after the company announced its intention to repay $700 million of the debt at par on Friday, a trader remarked.

The company went on to say in a news release that it will continue to use free cash flow to repay debt so as to improve its balance sheet.

Fortescue is a Perth, Australia-based producer of iron ore.

BWIC announced

A $219.2 million Bid Wanted In Competition emerged during the session, with bids due at noon ET on Wednesday, a trader said.

Some of the names in the portfolio are Advanced Disposal Services, Alliant Holdings, Brickman, Epicor, Ortho-Clinical Diagnostics, Phillips-Medisize, Service King and Vertafore.

There are about 28 issuers in the BWIC, the trader added.

ConvergeOne updates deal

Switching to the primary market, ConvergeOne canceled plans to have a portable capital structure under its $485 million credit facility, a market source remarked.

The credit facility, which launched with a bank meeting on Tuesday morning, consists of a $50 million revolver (B2/B), a $335 million seven-year first-lien term loan (B2/B) and a $100 million eight-year second-lien term loan (Caa2/CCC+).

As previously reported, talk on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and talk on the second-lien term loan is Libor plus 900 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two.

Credit Suisse and TD Securities (USA) LLC are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Commitments are due at 5 p.m. ET on Sept. 27.

ConvergeOne is an Eagan, Minn.-based provider of communications solutions.

IP&S shutting early

Intellectual Property & Science moved up the commitment deadline on its $1,625,000,000 credit facility (B2/BB-) to 2 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source said.

The facility consists of a $175 million revolver and a $1.45 billion seven-year covenant-light first-lien term loan talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse, Bank of America Merrill Lynch, RBC, Citigroup Global Markets Inc., Barclays, Goldman Sachs Bank USA and Guggenheim are leading the deal that will be used with bonds and about $1.6 billion of equity to fund the acquisition of the company by Onex Corp. and Baring Private Equity Asia from Thomson Reuters for $3.55 billion of cash.

Closing is expected in the next few months, subject to regulatory approval and customary conditions.

Intellectual Property & Science is a Philadelphia-based provider of comprehensive intellectual property and scientific information, decision support tools and services.

Nexstar releases guidance

Nexstar Broadcasting Group held its bank meeting on Tuesday, launching its $2.85 billion seven-year covenant-light term loan B with talk of Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on Sept. 23, the source said.

Filings with the Securities and Exchange Commission have said that the company’s $3,295,000,000 senior secured credit facility (Ba3) will also include a $175 million five-year revolver and a $270 million five-year term A.

Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank Securities Inc., SunTrust Robinson Humphry, Barclays and Wells Fargo are leading the deal that will be used to help fund the acquisition of Media General Inc. for $10.55 per share of cash and 0.1249 of a share of Nexstar class A common stock for each Media General share.

Closing is expected in the third quarter or early in the fourth quarter, subject to stockholder approval, regulatory approvals and other conditions. Upon closing, Nexstar will change its name to Nexstar Media Group Inc.

Irving, Texas-based Nexstar and Richmond, Va.-based Media General are diversified media companies.

Consolidated talk

Consolidated Communications came out with talk of Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99.5 on its $900 million seven-year term loan B that launched with a morning bank meeting, a source said.

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

The company’s $1 billion credit facility (BB-) also includes a $100 million five-year revolver.

Commitments are due on Sept. 27.

Wells Fargo is leading the deal that will be used to refinance existing debt.

Secured leverage is 2.8 times, and total leverage is 4.3 times.

Consolidated Communications is a Mattoon, Ill.-based communications provider.

Constantia details surface

Constantia Flexibles held its lender call, launching a repricing of its $250 million and €637 million covenant-light term loan B debt due 2022 at talk of Libor/Euribor plus 300 bps to 325 bps with a 1% floor, a 25 bps amendment fee for existing lenders, an original issue discount of 99.75 for new lenders and 101 soft call protection for six months, according to sources.

The repricing will take the term loan B debt down from Libor/Euribor plus 375 bps with a 1% floor.

Commitments are due on Sept. 20, sources said.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and UniCredit are leading the deal.

Constantia Flexibles is a Vienna-based manufacturer of flexible packaging products and labels.

Acadia holds call

Acadia Healthcare hosted a lender call at 11 a.m. ET on Tuesday, launching a repricing of its $950.2 million covenant-light term loan B-2 due February 2023 at talk of Libor plus 300 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

The repricing will take the term loan B-2 down from Libor plus 375 bps with a 0.75% Libor floor.

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

Bank of America Merrill Lynch is leading the deal.

Acadia is a Franklin, Tenn.-based provider of inpatient and outpatient behavioral health-care services.

Wesco reveals pricing

Wesco Aircraft announced initial pricing of Libor plus 275 bps and no Libor floor on its $600 million five-year senior secured credit facility (B1/B+) that launched with a bank meeting during the session, according to a market source, who said that the spread on the deal is subject to a leverage-based pricing grid.

The facility consists of a $200 million revolver and a $400 million term loan A.

Commitments are due at noon ET on Sept. 23, the source added.

Barclays, Bank of America Merrill Lynch, JPMorgan, Morgan Stanley Senior Funding Inc., MUFG, PNC Capital Markets and SMBC are leading the deal that will be used to refinance the company’s existing revolver and term loan A due 2017 and to pay related fees and expenses.

Net total pro forma leverage is 4.1 times.

Wesco Aircraft is a Valencia, Calif.-based distributor and provider of supply chain management services to the aerospace industry.

Fitness International guidance

Fitness International set talk at Libor plus 500 bps with a 1% Libor floor and 101 soft call protection for six months on its $1,174,300,000 covenant-light term loan B (B+) due July 1, 2020 that launched with a late morning call, a market source remarked.

The term loan B amount includes $964.3 million of existing debt talked with a 25 bps amendment fee and $210 million of incremental debt talked with an original issue discount of 99 to 99.5, the source added.

Commitments are due on Sept. 20.

Bank of America Merrill Lynch, Bank of the West and MUFG are leading the deal that will be used to redeem the equity units of Madison Dearborn Partners and Seidler Institutions, to refinance existing senior credit facility debt and for general corporate purposes.

Fitness International is an Irvine, Calif.-based non-franchised fitness club operator.

Press Ganey sets timing

In more primary happenings, Press Ganey scheduled a bank meeting for 1:30 p.m. ET in New York on Thursday to launch its previously announced $1,098,000,000 senior secured credit facility, according to market sources.

Prior to now, timing on the deal was labeled as September business, with this week being the potential week for the bank meeting to occur. A specific date had been unavailable.

The facility consists of a $70 million revolver, a $740 million seven-year covenant-light first-lien term loan and a $288 million eight-year covenant-light second-lien term loan, with both term loans having a 1% Libor floor, sources said.

Details on spread, original issue discount and call protection have not yet been disclosed.

Commitments are due at 5 p.m. ET on Sept. 29.

Press Ganey lead banks

Credit Suisse, Citigroup and Bank of America Merrill Lynch are leading Press Ganey’s credit facility, with Credit Suisse left on the first-lien loan and Citigroup left on the second-lien loan.

Proceeds will be used with up to $1,368,000,000 of equity and about $66.3 million of cash on hand to fund the buyout of the company by EQT Equity for $40.50 of cash per share, resulting in an enterprise value of about $2.35 billion.

Closing is expected in the fourth quarter, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, shareholder approval and other customary conditions.

Press Ganey is a Wakefield, Mass.-based provider of patient experience measurement, performance analytics and strategic advisory solutions for health-care organizations.

Gypsum readies deal

Gypsum Management surfaced with plans to hold a lender call at 10 a.m. ET on Wednesday to launch $481 million of covenant-light first-lien term loans (B3/B+) due April 1, 2021, split between $381 million of existing debt and $100 million of incremental debt, according to a market source.

Talk on the term loan debt is Libor plus 350 bps with a 1% Libor floor, a par offer price on the existing loan, an original issue discount of 99.5 on the incremental loan and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Sept. 20.

Credit Suisse is leading the deal that will be used to reprice the existing term loan from Libor plus 375 bps with a 1% Libor floor and to pay down a portion of the company’s revolver borrowings.

Gypsum Management is a Tucker, Ga.-based distributor of wallboard, acoustical products and other specialty building materials.

Orion Engineered repricing

Orion Engineered Carbons scheduled a lender call for 10 a.m. ET on Wednesday to launch a $302.8 million and €347 million term loan B that will be used to reprice existing U.S. and euro term loan Bs, a market source remarked.

Goldman Sachs is leading the deal.

Orion Engineered Carbons is a Frankfurt, Germany-based producer of carbon black.

Camping World coming soon

Camping World set a lender call for 10 a.m. ET on Wednesday to launch a $110 million incremental first-lien term loan B that will be fungible with its existing $710 million term loan B, a market source said.

Goldman Sachs is leading the deal.

Proceeds will be used to fund a dividend and for acquisitions of dealerships, the source added.

Camping World is a Lincolnshire, Ill.-based seller of RVs and supplier of RV parts, supplies and accessories.

American Airlines on deck

American Airlines scheduled a lender call for noon ET on Wednesday to launch a new loan transaction to existing and prospective lenders, according to a market source.

Citigroup is the left lead on the deal.

Details on the loan deal are not yet available.

American Airlines is a Fort Worth, Texas-based airline company.

ClubCorp joins calendar

ClubCorp will hold a lender call at 11 a.m. ET on Wednesday to launch a new loan deal to existing and prospective lenders, a market source said.

Citigroup is leading the deal.

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

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