Arby's Allocates, Crown Holdings finalizes terms, funds see inflows on Thursday

By Paul A. Harris

Portland, Ore., Jan. 19 – In Friday's leveraged loan market the Arby’s Restaurant Group Inc. (IRB Holding Corp.) $1,575,000,000 seven-year term loan B allocated.

Crown Holdings Inc. finalized terms on its new credit facility, further tightening pricing on the euro tranche and reducing the size of the dollar tranche by spinning out a $100 million term loan A.

Meanwhile the dedicated bank loan funds saw modest daily inflows of $20 million of retail cash on Thursday, a trader said.

Arby’s allocates

The Arby’s Restaurant Group (IRB Holding Corp.) $1,575,000,000 seven-year term loan B allocated on Friday.

The loan’s issue price was finalized at 99.75, with interest of Libor plus 325 basis points and a stepdown to Libor plus 300 bps on net first-lien leverage reaching 2.5 times. Earlier talk was Libor plus 375 bps at 99.5.

The loan continues to have a 1% Libor floor and 101 soft call protection for six months, the source said.

Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are the arrangers on the deal. Barclays is the administrative agent.

Proceeds will be used to help fund the acquisition of Buffalo Wild Wings Inc. for $157.00 per share in cash in a transaction valued at about $2.9 billion, including net debt.

Crown Holdings further cuts pricing

Crown Holdings finalized terms on its new credit facility, further tightening pricing on the euro tranche and reducing the size of the dollar tranche by spinning out a $100 million term loan A,

The €750 million seven-year covenant-light senior secured term loan B (Baa2/BB+) is now priced at Euribor plus 237.5 basis points, down from Euribor plus 250 bps previously and Euribor plus 275 bps originally.

The euro tranche is still priced at par and continues to have a 0% Euribor floor. Earlier the price was raised from 99.75.

The dollar term loan B now has a size of $1.15 billion, reduced from $1.25 billion.

To offset the reduction, Crown Holdings will now obtain an incremental $100 million term loan A. Details on the term A were not immediately available.

Pricing for the seven-year covenant-light senior secured term loan B (Baa2/BB+) remains at Libor plus 200 bps with a 0% Libor floor and a price of par.

Both term loans still have amortization of 1% per annum and a ticking fee of half the spread from days 46 to 75 and the full spread thereafter.

Crown Americas LLC is the U.S. loan borrower and Crown European Holdings SA is the euro loan borrower.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., Mizuho, Bank of Nova Scotia, Santander, TD Securities (USA) LLC and Wells Fargo Securities LLC are the joint lead arrangers on the deal, with Citigroup the left lead. Deutsche Bank is the administrative agent.

Proceeds will be used to help fund the acquisition of Signode Industrial Group Holdings (Bermuda) Ltd. from the Carlyle Group in a cash transaction valued at $3.91 billion, subject to customary closing adjustments.

Digicel upsizes

Digicel International Finance Ltd. increased its senior secured covenant-light term loan B due May 2024 to $1,055,000,000 from $955 million and reduced pricing to Libor plus 325 basis points from Libor plus 350 bps originally.

The loan continues to have a 0% Libor floor and a par issue price.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

Expected term loan ratings are Ba2/B+.

Citigroup Global Markets Inc. is the lead arranger and administrative agent on the deal.

Proceeds will be used to reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor. The additional proceeds from the upsizing will be used to repay revolver borrowings.

Harbor Freight sets spread

Harbor Freight Tools USA Inc. set pricing on its $2,161,000,000 covenant-light first-lien term loan (Ba3/BB-) due August 2023 at Libor plus 250 basis points, the low end of talk.

The loan has a 0.75% Libor floor and a par issue price, in line with talk.

Talk for the coupon was Libor plus 250 bps to 275 bps.

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

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to refinance an existing term loan priced at Libor plus 325 bps with a 25 bps stepdown at less than 3 times total net leverage and a 0.75% Libor floor.

Allocations are expected on Monday.

Merdith allocates

Meredith Corp. announced that it has allocated $2.15 billion of secured credit facilities, which are expected to be comprised of a seven-year $1.8 billion term loan at an interest rate of Libor plus 300 bps and a $350 million five-year revolving credit facility at an initial interest rate of Libor plus 300 bps.

Meredith intends to use the net proceeds of the notes offering and the senior credit facilities to fund a portion of its proposed acquisition of Time Inc.

Lucid Energy to launch Tuesday

Lucid Energy Group II Borrower LLC will launch a $950 million credit facility at a bank meeting on Tuesday.

Included in the facility is a $900 million first-lien term loan and a $50 million super-priority revolving credit facility.

The term loan has a seven-year maturity and 101 call protection for six months.

Jefferies is the arranger.

Proceeds will be used to fund the acquisition of the company by Riverstone Holdings and Goldman Sachs Merchant Banking Division and to finance system expansion.

NCI Building Systems to launch Monday

NCI Building Systems, Inc. plans to launch a $415 million covenant light first-lien term loan (Ba3/BB+) on Monday.

The loan will have a seven-year maturity and 101 soft call protection for six months.

Credit Suisse is the lead bank.

NCI Building Systems also plans to obtain a new asset-based revolving credit facility, according to a news release.

Proceeds from the new facility will be used to refinance NCI’s existing term loan and ABL facility and to redeem its $250 million of 8¼% senior notes due 2023. NCI issued a call for the notes on Friday.

Exactech to launch Tuesday

Exactech, Inc. plans to launch a $285 million credit facility at a bank meeting at 9:30 a.m. ET on Tuesday.

The facility will include a $235 million senior secured term loan B and a $50 million revolver.

Goldman Sachs is left lead and joined as a lead arranger by BofA Merrill Lynch, RBC Capital Markets, HSBC and SMBC Nikko.

Proceeds will be used to help fund the acquisition of the company by TPG Capital.

Xperi finalizes loan

Xperi Corp. set a final size of $494 million for its covenant-light term loan B (Ba3/BB-) due December 2023.

The amount is pro forma for a planned $100 million prepayment.

At launch on Jan. 10, the repricing was announced at $596 million.

Final terms are in line with talk of Libor plus 250 basis points with a 0.75% Libor floor and a par issue price.

The term loan B has 101 soft call protection for six months, the source said.

RBC Capital Markets is the lead arranger on the deal.

The loan is expected to close and fund on Jan. 30.

Proceeds will be used to reprice an existing term loan B down from Libor plus 325 bps with a 0.75% Libor floor.

Woodford prices

Woodford Express LLC finalized pricing on its $364 million seven-year term loan B (B2/B) with a 500 basis points spread to Libor, a 1% Libor floor, at 99.

The deal printed on top of spread talk that had widened from the early 425 bps to 450 bps talked range, according to a market source.

The discount and Libor floor remained unchanged.

The soft call protection was extended to one year from six months.

The deal is expected to close in late January.

There were also covenant changes.

Morgan Stanley Senior Funding Inc. is the bookrunner on the deal.

Proceeds will be used to repay an existing credit facility, fund a distribution, fund a capex reserve, fund a debt service reserve and pay transaction-related fees and expenses.

Verint Systems launches repricing

Verint Systems Inc. launched a $423 million term loan B repricing on Friday.

Spread talk is Libor plus 200 bps with a 0% Libor floor, which would step down the spread on the $425 million term loan that Verint syndicated in June 2017. The Libor floor is unchanged.

Price talk is 99.875 to par.

Commitments are due on Friday, Jan. 26.

JP Morgan Securities LLC is leading the effort.

Verint is a Melville, N.Y.-based provider of actionable intelligence solutions and value-added services.

Certara allocates, trades higher

The Certara fungible $25 million incremental covenant-light first-lien term loan due August 2024 price at par and broke par 5/8 bid, 101 1/8 offered, according to a market source.

The deal priced at the tight end of original issue discount talk of 99.75 to par.

The coupon on the incremental loan matches existing term loan pricing at Libor plus 400 basis points with a 1% Libor floor.

The term loan has 101 soft call protection until February.

Jefferies LLC is the left lead arranger on the deal.

Proceeds will be used to fund an acquisition.

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