Albertsons, Aspen Dental break for trading; Cypress Semiconductor reworks term loan B

By Sara Rosenberg

New York, June 1 – Albertsons Cos. LLC’s term loan B-6 and repriced loans made their way into the secondary market on Wednesday above their original issue discounts, and Aspen Dental Management Inc.’s add-on and repriced loans began trading as well.

Moving to the primary market, Cypress Semiconductor Corp. reduced the size of its term loan B, increased pricing, set the issue price at the wide end of guidance, extended the call protection and shortened the maturity.

In more happenings, Vencore Inc., St. George’s University, ABB/Con-Cise Optical Group LLC, Ennis-Flint, Kindred Healthcare Inc. and Eze Software all came out with price talk on their new loan transactions with launch.

Additionally, Avantor Performance Materials, Harland Clarke Holdings Corp., Affinity Gaming, Cvent Inc., Bob’s Discount Furniture Inc., Strategic Partners and Berry Plastics emerged with new deal plans.

Albertsons starts trading

Albertsons’ $2.1 billion seven-year term loan B-6 and repriced $3.28 billion term loan B-4 due August 2021 and $1,145,000,000 term loan B-5 due December 2022 freed up for trading on Wednesday, according to a market source.

The term loan B-6 and the term loan B-4 were quoted at 99 7/8 bid, 100 1/8 offered, and the term loan B-5 was quoted at par bid, 100¼ offered, the source said.

Pricing on the term loan B-6 is Libor plus 375 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The term loan B-4 is priced at Libor plus 350 bps with a 1% Libor floor, and the term loan B-5 is priced at Libor plus 375 bps with a 1% Libor floor. Both of these tranches were issued at a discount of 99.75 and have 101 soft call protection for six months.

During syndication, the term loan B-6 was upsized from $1.5 billion and the discount was tightened from 99.5, and the repricings of the term loan B-4 and term loan B-5 were added.

Albertsons lead banks

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs & Co., Deutsche Bank Securities Inc. and Barclays are leading Albertsons’ loan deal.

Proceeds from the term loan B-6 will be used to refinance existing term loan B-2 and term loan B-3 debt.

Also, in connection with the repricing and the new term loan B-6 transaction, the term loan B-4 is being paid down from $3.88 billion.

According to a recent filing with the Securities and Exchange Commission, the term loan B-2 due March 21, 2019 is priced at Libor plus 450 bps with a 1% Libor floor and the term loan B-3 due Aug. 25, 2019 is priced at Libor plus 412.5 bps with a 1% Libor floor.

The filing also outlined current pricing on the term loan B-4 and the term loan B-5 at Libor plus 450 bps with a 1% Libor floor.

Albertsons is a Boise, Idaho-based food and drug retailer.

Aspen Dental frees up

Aspen Dental’s $50 million add-on term loan B and repriced roughly $397 million term loan B also broke, with levels quoted at 100 1/8 bid, 100 5/8 offered, a trader said.

Pricing on the add-on and the repriced loan is Libor plus 425 bps with a 1% Libor floor. The new money was sold at an original issue discount of 99.75 and existing money received a par issue price. All of the debt has 101 soft call protection for six months.

Last week, the add-on term loan was upsized from $45 million and the new money discount firmed at the tight end of the 99.5 to 99.75 talk.

RBC Capital Markets LLC is leading the deal for the East Syracuse, N.Y.-based dental support organization.

Proceeds from the add-on term loan will be used to fund a dividend, and the repricing will take the existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Cypress revised

Switching to the primary market, Cypress Semiconductor trimmed its term loan B to $400 million from $700 million, increased pricing to Libor plus 550 bps from Libor plus 500 bps, firmed the original issue discount at 98, the wide end of the 98 to 99 talk, and extended the 101 soft call protection to one year from six months, according to a market source.

Also, the maturity of the loan was shortened to five years from seven years, and amortization was changed to 5% in years one, two and three and 7.5% in years four and five, from 1% per annum, the source said.

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

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

Bank of America Merrill Lynch, Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the acquisition of Broadcom Corp.’s Wireless Internet of Things business and related assets in an all-cash transaction valued at $550 million.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Cypress is a San Jose, Calif.-based manufacturer of mixed-signal integrated circuits.

Vencore discloses terms

Vencore had its bank meeting on Wednesday, launching a $515 million first-lien term loan (B+) due Nov. 23, 2019 and a $270 million second-lien term loan (CCC+) due May 23, 2020, according to a market source.

The first-lien term loan is talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99.25 and 101 soft call protection for one year, and the second-lien term loan is talked at Libor plus 900 bps with a 1% Libor floor, a discount of 97.5 to 98 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on June 15.

UBS Investment Bank is leading the $785 million in term loans that will be used to refinance existing debt and fund a dividend.

Furthermore, the company is asking to amend its existing credit agreement to, among other things, change the restricted payments basket, and first- and second-lien loan lenders are being offered a 25-bps consent fee.

Vencore (formerly SI Organization Inc.) is a Chantilly, Va.-based provider of information solutions, engineering and analysis to the U.S. Intelligence Community, Department of Defense and Agencies.

St. George’s guidance

St. George’s University released talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year on its $600 million six-year senior secured term loan B that launched with an afternoon bank meeting, a source said.

Commitments are due at 5 p.m. ET on June 14, the source added.

Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the loan that will be used to repay existing debt, make a distribution to shareholders and fund strategic initiatives.

St. George’s is a Grenada, West Indies-based educational institution, providing students with medical degrees as well as veterinary and liberal arts graduate and undergraduate degrees.

ABB/Con-Cise launches

ABB/Con-Cise Optical launched with its bank meeting a $100 million five-year revolver (B1) talked at Libor plus 475 bps to 500 bps with no Libor floor, and a $350 million seven-year first-lien covenant-light term loan B (B1) talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on June 10, the source said.

The company’s $610 million senior secured credit facility also includes a $160 million eight-year second-lien term loan (Caa2) that was privately placed.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Capital One, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal that will be used to refinance existing debt and fund a shareholder dividend.

ABB/Con-Cise is a Coral Springs, Fla. optical distributor.

Ennis-Flint sets talk

Ennis-Flint held a bank meeting in the morning, launching its $442 million seven-year senior secured first-lien term loan B with talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $517 million first-lien credit facility (B1/B-) also includes a $75 million revolver.

Commitments are due at 5 p.m. ET on June 8, the source added.

Goldman Sachs & Co., Antares Capital and Jefferies Finance LLC are leading the deal that will be used with a privately placed $172 million second-lien term loan (CCC) to help fund the buyout of the company by Olympus Partners.

Ennis-Flint is a Thomasville, N.C.-based pavement marking company.

Kindred seeks add-on

Kindred Healthcare hosted a lender call at 3 p.m. ET to launch a $200 million add-on term loan talked at Libor plus 325 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.

J.P. Morgan Securities LLC is leading the deal that will be used to pay down ABL revolver borrowings.

In addition, the company is looking to amend its existing credit agreement and lenders are being offered a 25 bps consent fee, the source said.

Kindred Healthcare is a Louisville, Ky.-based health care services company.

Eze details emerge

Eze Software launched a $115 million non-fungible incremental first-lien term loan B-2 (B+) at talk of Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99 on its afternoon lender call, a market source remarked.

Commitments are due on Tuesday, the source added.

Bank of America Merrill Lynch, Jefferies Finance LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to fund a dividend.

Eze Software is a Boston-based provider of investment technology to support the front, middle and back office.

West holds meeting

West Corp. held the bank meeting to launch its $470 million seven-year term loan B-12, and lenders are being asked to get their orders in by June 8, a market source said.

As previously reported, the term loan B-12 is talked at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company already held a bank meeting on May 26 to launch a $750 million term loan A-2 and a $300 million extended revolver, both talked at Libor plus 250 bps.

Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the $1.52 billion credit facility (Ba3/BB).

Proceeds from the revolver will be used to replace an existing $300 million revolver due July 2019, and the term loan A-2 and term loan B-12 will be used to help refinance borrowings under an existing term loan A-1 due July 2019 and an existing term loan B-10 due June 2018.

West is an Omaha, Neb.-based technology-driven communication services provider.

Avantor readies deal

Also on the primary front, Avantor Performance Materials set a bank meeting for 10 a.m. ET in New York on Thursday to launch an $885 million credit facility, according to a market source.

The facility consists of a $50 million revolver (B1/B), a $670 million seven-year first-lien covenant-light term loan (B1/B) with a 1% Libor floor and a $165 million eight-year second-lien covenant-light term loan (Caa1/CCC+) with a 1% Libor floor, the source said.

Commitments are due on June 15.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and KeyBanc Capital Markets are leading the deal that will be used to refinance existing debt and fund a shareholder dividend.

Avantor is a Center Valley, Pa.-based life sciences company focused on the development of specialty performance materials.

Harland Clarke on deck

Harland Clarke scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch an $800 million term loan B-5 due December 2019 that is talked at Libor plus 600 bps with a 1% Libor floor, an original issue discount of 97 and 101 soft call protection for one year, a market source said.

Commitments are due on June 14, the source added.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Jefferies Finance LLC, Macquarie Capital (USA) Inc. and PNC Capital Markets are leading the deal that will be used to refinance the company’s term loan B-2 and a portion of its term loan B-3.

Harland Clarke is a San Antonio, Texas-based provider of media delivery, payment solutions and marketing services.

Affinity joins calendar

Affinity Gaming emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $300 million seven-year first-lien term loan talked at Libor plus 400 bps to 425 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.

Commitments are due on June 17, the source said.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and Fifth Third are leading the deal that will be used to refinance existing debt.

Affinity Gaming is a Las Vegas-based casino owner and operator.

Cvent schedules meeting

Cvent will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch a $375 million first-lien term loan B (B), a market source said.

Goldman Sachs & Co., Antares Capital, Jefferies Finance LLC and RBC Capital Markets are leading the B loan that will be used with a privately placed $225 million second-lien term loan (CCC) to help fund the buyout of the company by Vista Equity Partners for $36 in cash per share, or about $1.65 billion.

Closing on the buyout is expected in the third quarter, subject to customary conditions, including stockholder approval and regulatory approvals.

Cvent is a Tysons Corner, Va., cloud-based enterprise event management company.

Bob’s coming soon

Bob’s Discount Furniture set a bank meeting for 11 a.m. ET on Thursday to launch a fungible $190 million add-on first-lien term loan due February 2021, a market source remarked.

Commitments are due at 5 p.m. ET on June 9, the source continued.

RBC Capital Markets is leading the deal that will be used to repay an $80 million second-lien term loan and fund a distribution to shareholders.

Based on LTM March 2016 adjusted run rate EBITDA of $90 million and adjusted run rate EBITDAR of $137 million, pro forma total leverage will be 4.3 times and rent-adjusted leverage will be 4.6 times, the source added.

Bob’s is a Manchester, Conn.-based retailer of furniture and bedding.

Strategic Partners plans deal

Strategic Partners is anticipated to hold a bank meeting during the week of June 6 to launch a $370 million credit facility that is expected to consist of a $45 million revolver and a $325 million first-lien term loan, according to a market source.

UBS Investment Bank, Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are leading the transaction.

Proceeds will be used to help fund the buyout of the company by New Mountain Capital.

Strategic Partners is a Chatsworth, Calif.-based designer and manufacturer of medical apparel and footwear and school uniforms.

Berry sets call

Berry Plastics will hold a lender call at 3 p.m. ET on Thursday to launch a new loan transaction, a market source said.

Citigroup Global Markets Inc. is leading the deal.

Berry Plastics is an Evansville, Ind.-based manufacturer and marketer of value-added plastic consumer packaging and engineered materials.

Russell closes

In other news, the buyout of Russell Investments by TA Associates and Reverence Capital Partners from London Stock Exchange Group plc in a transaction valued at $1.15 billion has been completed, a news release said.

To help fund the transaction, Russell got a new $700 million credit facility (Ba2/BB/BB) that includes a $50 million five-year revolver and a $650 million seven-year covenant-light term loan B.

Pricing on the term loan B is Libor plus 575 bps with a 1% Libor floor, and it was sold at an original issue discount of 94. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan B was lifted from talk of Libor plus 450 bps to 475 bps, the discount widened from revised talk of 97 and initial talk of 98.5, the call protection was extended from six months, the 18-month MFN sunset was eliminated, and the incremental allowance and excess cash flow sweep were revised.

Barclays, Macquarie Capital (USA) Inc. and Credit Suisse Securities (USA) LLC led the deal.

With this transaction, Russell Investments, a Seattle-based asset manager, has net leverage of 3.9 times.

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