ZelisRedCard, APi, Shearer’s Foods, CSC Holdings break; PSAV changes surface

By Sara Rosenberg

New York, Sept. 27 – ZelisRedCard finalized the spread on its term loan B at the high end of guidance and then freed up for trading above its original issue discount, and deals from APi Group Inc., Shearer’s Foods LLC and CSC Holdings LLC emerged in the secondary market as well.

In more happenings, PSAV (AVSC Holding Corp.) increased the size of its U.S. incremental term loan B as plans for a Canadian loan were cancelled, raised pricing, widened the original issue discount and extended the call protection.

Also, Arnott (Snacking Investments BidCo Pty Ltd.) and Alliant Holdings Intermediate LLC joined the near-term primary calendar.

ZelisRedCard updated

ZelisRedCard firmed pricing on its $1.5 billion seven-year covenant-lite first-lien term loan B at Libor plus 475 basis points, the high end of the Libor plus 450 bps to 475 bps talk and made some changes to documentation, according to a market source.

The term loan still has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1.65 billion of senior secured credit facilities (B2/B) also include a $150 million five-year revolver.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., UBS Investment Bank, Antares Capital, Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Jefferies LLC and Goldman Sachs Bank USA are leading the deal.

ZelisRedCard frees up

ZelisRedCard’s credit facilities broke for trading on Friday, with the term loan quoted at 99 1/8 bid, 99 5/8 offered, a trader added.

The new debt will be used to support the merger of Zelis Healthcare Corp. and RedCard Holdings LLC under pro forma ownership of Bain Capital, Parthenon Capital and existing shareholders.

Closing is expected on Sept. 30.

Zelis is a Bedminster, N.J.-based provider of integrated health care cost management and payments solutions. RedCard is a St. Louis-based provider of health care payments and communications optimization.

APi hits secondary

APi Group’s $1.2 billion seven-year senior secured covenant-lite term loan B began trading too, with levels quoted at par bid, par ½ offered on the break and then it moved up to par ¼ bid, par ¾ offered, a market source said.

Pricing on the term loan B is Libor plus 250 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

On Thursday, the spread on the term loan was cut from talk in the range of Libor plus 275 bps to 300 bps.

The company’s $1.5 billion of credit facilities (Ba3/BB-) also include a $300 million revolver.

Citigroup Global Markets Inc., BofA Securities, Inc., Barclays and UBS Investment Bank are leading the deal that will be used with cash on hand, an early warrant exchange and rollover equity to fund the acquisition of the company by J2 Acquisition Ltd. for about $2.05 billion in cash and 28,373,000 ordinary shares in J2. The transaction, which is expected to close on Tuesday, is valued at about $2.9 billion.

Upon closing, J2, a special-purpose acquisition entity, intends to change its name to APi Group Corp.

APi is a New Brighton, Minn.-based provider of commercial life safety solutions and industrial specialty services, and a specialty contractor.

Shearer’s tops OID

Shearer’s Foods’ $701 million covenant-lite first-lien term loan (B3/B-) due March 2022 also freed up, with levels seen at 99 7/8 bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC and Antares Capital are leading the deal that will be used to extend the maturity of the company’s existing first-lien term loan by nine months. The existing term loan is priced at Libor plus 425 bps with a 1% Libor floor.

Shearer’s Foods is a Massillon, Ohio-based contract manufacturer of snack foods.

CSC starts trading

CSC Holdings’ $3 billion term loan B due April 2027 broke as well, with the $2.5 billion funded tranche seen at par 1/8 bid, par ½ offered and the $500 million delayed-draw tranche seen at par bid, par 3/8 offered, a market source remarked.

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

During syndication, the term loan was upsized from $1.5 billion and the issue price firmed at the tight end of revised talk of 99.875 to par and tighter than initial talk of 99.75.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan B-4 and to repay 8% senior notes at Cablevision, and, due to the recent upsizing, to refinance a term loan B-2 and for general corporate purposes.

CSC Holdings, an indirect wholly owned subsidiary of Altice USA Inc., is a Bethpage, N.Y.-based cable operator.

PSAV reworked

Back in the primary market, PSAV lifted its non-fungible U.S. incremental seven-year term loan B (B-) to $515 million from $430 million with the termination of plans for an incremental Canadian term loan, increased pricing to Libor plus 450 bps from talk in the range of Libor plus 375 bps to 400 bps, changed the original issue discount to 98 from 98.5, extended the 101 soft call protection to one year from six months and revised the MFN, a market source said.

As before, the term loan has a 1% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the acquisition of Encore Event Technologies Inc., a provider of event technology, staging and production services, and for general corporate purposes.

PSAV is a Long Beach, Calif.-based event technology provider.

Arnott on deck

Arnott scheduled a bank meeting for Tuesday to launch its previously announced $500 million term loan, a market source remarked.

The company’s credit facilities (B) also include a $100 million revolver, a A$300 million term loan and a A$90 million delayed-draw term loan.

KKR Capital Markets, Jefferies LLC and Barclays are leading the deal, with KKR left on the U.S. loan and Jefferies left on the Australian loan.

The new debt will be used to help fund the buyout of the Sydney, Australia-based food company by KKR from Campbell Soup Co. for $2.2 billion in cash.

Alliant readies loan

Alliant Holdings set a lender call for 1 p.m. ET on Tuesday to launch an up to $150 million incremental term loan B-2, according to a market source.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance existing debt and pay related fees, expenses and original issue discount.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

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