SS&C upsizes to $6.13 billion, tightens terms; loan funds see $44 million Monday inflow

By Paul A. Harris

Portland, Ore., Feb. 27 – The dedicated bank loan funds saw $44 million of cash inflows on Monday, the most recent session for which data was available at press time, a trader said.

SS&C Technologies Holdings Inc. increased its seven-year covenant-light first-lien term loan (Ba3/BB) to $6.13 billion from $5.63 billion and tightened pricing terms.

SS&C upsizes, tightens terms

SS&C Technologies Holdings Inc. increased its seven-year covenant-light first-lien term loan (Ba3/BB) to $6.13 billion from $5.63 billion and tightened pricing terms.

Interest is now Libor plus 250 basis points, the low end of talk of Libor plus 250 bps to 275 bps, and the original issue discount is 99.75, up from 99.5 at launch.

As before, the loan has no Libor floor and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays and JPMorgan Chase Bank are the joint lead arrangers on the deal. Co-managers are Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBC Capital Markets.

Commitments were due Tuesday.

Proceeds will be used to help fund the acquisition of DST Systems Inc. for $84 per share plus assumption of debt, equating to an enterprise value of about $5.4 billion.

Cypress Semiconductor sets pricing

Cypress Semiconductor Corp. set price talk for $1,045,098,684 of loan repricings (Ba2/BB).

The deal includes a $540 million senior secured revolver due March 12, 2020 talked at Libor plus 200 basis points with a grid and a 0% Libor floor.

A $505,098,684 senior secured term loan B repricing is talked at Libor plus 225 bps to 250 bps with a 0% Libor floor at par. The term loan features six months of soft call protection at 101 and amortizes at 1% annually.

Commitments are due March 8.

Joint lead arranger and joint bookrunner Morgan Stanley is the administrative agent. Barclays Bank plc and SunTrust Robinson Humphrey, Inc. are also joint lead arrangers and joint bookrunners.

Shutterfly prices rich to talk

Shutterfly Inc. priced an $825 million Libor plus 275 basis points senior secured covenant-light term loan B-2 due Aug. 17, 2024 (Ba3/BB-) at 99.75.

The reoffer price comes rich to the 99.5 price talk.

The 275 basis points spread to Libor came at the tight end of the 275 bps to 300 bps spread talk. The spread steps down to 250 bps if leverage falls to 0.5-times inside of closing secured net leverage.

Joint lead arranger and joint bookrunner Morgan Stanley Senior Funding Inc. is the administrative agent. SunTrust Robinson Humphrey Inc. was also a joint lead arranger and joint bookrunner.

Proceeds will be used to help fund the acquisition of Lifetouch for $825 million in cash and refinance certain debt at Lifetouch.

Pro Mach sets final terms

Pro Mach Group Inc. priced its upsized $810 million seven-year Libor plus 300 bps covenant-light first-lien term loan B at 99.75.

The tranche was upsized from $760 million.

The spread came on top of spread talk.

The spread steps down to Libor plus 275 bps a 0.5-times inside closing net first lien leverage.

The reoffer price came at the rich end of the 99.5 to 99.75 price talk.

The deal has a 0% Libor floor, in addition to 101 soft call protection for six months and amortization of 1% per annum.

The $910 million of senior secured credit facilities (B2/B-), upsized from $860 million, also includes a $100 million five-year revolver that priced at Libor plus 325 bps with a grid and a 0% Libor floor.

Joint lead arranger and joint bookrunner Morgan Stanley Senior Funding Inc. is the administrative agent. Goldman Sachs Bank USA is also a joint lead arranger and bookrunner.

Proceeds will be used to fund the buyout of the company by Leonard Green & Partners from AEA Investors and to pay related fees and expenses.

Culligan fixes terms

Terms surfaced on $713,137,500 of Culligan bank debt in three tranches.

The deal includes a $72 million add-on to the AI Aqua Merger Sub, Inc. senior secured term loan B-1 talked at Libor plus 300 bps to 325 bps with a 25 bps leverage step-down and a 1% Libor floor at 99.75.

The repricings of $344,137,500 of the AI Aqua Merger Sub senior secured term loan B and $297 million of the AI Aqua Merger Sub senior secured term loan B-1 are both talked at Libor plus 300 to 325 bps with a 25 basis points leverage step-down, and a 1% Libor floor, at par.

Commitments are due Friday.

Joint lead arranger and joint bookrunner Morgan Stanley Senior Funding, Inc. is the administrative agent. Royal Bank of Canada, BMO Capital Markets Corp., and Citigroup Global Markets Inc. are also joint lead arrangers and joint bookrunners.

The proceeds from the add-on will be used to finance the acquisition of Paragon Water Systems.

Coronado Australia $700 million

Coronado Australia Holdings Pty. Ltd. will launch a $700 million seven-year term loan at a bank meeting to begin at 9:30 a.m. ET Thursday.

Deutsche Bank and Goldman Sachs are bookrunners for the transaction.

Commitments are due by March 15.

Proceeds will be used for the acquisition of Curragh.

Learning Care sets terms

Learning Care Group, Inc. talked a $520 million seven-year term loan B with a 350 basis points spread to Libor and a 0% Libor floor at 99.5.

Commitments are due at noon ET on March 8.

Morgan Stanley Senior Funding, Inc. is the administrative agent. Bank of America Merrill Lynch, NA, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are joint bookrunners and arrangers.

The $595 million senior secured credit facility also includes a $75 million revolver talked at Libor plus 350 bps and a 0% Libor floor.

The Novi, Mich.-based provider of early education and childcare services plans to use the proceeds, alongside a privately placed $160 million second-lien term loan and $300 million of preferred equity, to pay a distribution to shareholders and refinance debt.

Sky Betting upsizes

Sky Betting & Gaming increased its senior secured term loan B due July 2024 (B2/B) to $500 million from $448 million and set pricing at the low end of talk.

The loan is now priced at Libor plus 275 basis points versus talk of Libor plus 275 bps to 300 bps.

There is still a 25 bps stepdown post an initial public offering but with the added condition that the corporate credit rating be B1 from Moody’s Investors Service and B+ from S&P Global Ratings or higher.

The 0% Libor floor was retained as was the original issue discount of 99.75.

Recommitments were due Tuesday.

Goldman Sachs Bank USA, Barclays and NatWest Markets are the bookrunners on the deal.

Proceeds will be used to reprice an existing U.S. term loan down from Libor plus 325 bps with a 0% Libor floor. The additional proceeds from the upsizing will be used to repay part of the sterling tranche of the company’s bank facilities.

Arctic Glacier launches repricing

Arctic Glacier LLC launched a $437 million term loan due March 2024 (B2/B-) with a lender call on Tuesday.

The transaction includes a repricing of the $412 million first-lien term loan and a $25 million incremental first-lien term loan.

Talk is for a coupon of Libor plus 350 bps to 375 bps. The term loan is currently priced at Libor plus 425 bps.

The incremental loan is being offered at 99.75 while the repricing is at par.

Both parts have a 1% Libor floor, unchanged from the existing loan.

Proceeds from the add-on will be used to finance tuck-in acquisitions.

Credit Suisse is leading the transaction.

Recommitments are due on March 2.

Wastequip sets talk

Wastequip, LLC set talk for $345 million of term loans with the launch of its $395 million credit facility at a bank meeting on Tuesday.

The $245 million first-lien term loan due 2025 is talked at Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99.5.

The $100 million second-lien term loan due 2026 is talked at Libor plus 775 basis points with a 1% Libor floor, offered at 99.

Commitments are due March 13.

Barclays is left lead and administrative agent and is joined as bookrunner by Credit Suisse and Goldman Sachs.

Proceeds will be used to help finance the acquisition of Wastequip by H.I.G. Capital.

Gateway Casinos lender call

Gateway Casinos & Entertainment Ltd. plans to launch a $305 million senior secured term loan B on a lender call set to get underway at 11 a.m. ET on Wednesday.

Morgan Stanley Senior Funding, Inc., SunTrust Robinson Humphrey, Inc., BMO Capital Markets Corp., Credit Suisse AG, Goldman Sachs Lending Partners, Macquarie Capital (USA) Inc. and National Bank of Canada are the arrangers.

The Burnaby, B.C.-based owner of gaming properties plans to use the proceeds, along with proceeds from announced sale-leaseback, to repay and refinance its existing term loans, repay the its outstanding revolver, repay the Langley mortgage, fund a distribution to shareholders and for general corporate purposes.

The financing will also include a $150 million revolver.

In conjunction with the financing the company is soliciting consents from the holders of $255 million of its second priority senior secured notes.

PS Logistics finalizes pricing

PS Logistics (PS HoldCo LLC) finalized terms on its $246 million seven-year first-lien term loan (B2/B+) at Libor plus 550 basis points with a 1% Libor floor and an original issue discount of 99, all on top of talk.

Commitments are due Thursday.

UBS Investment Bank, BBVA Compass and Fifth Third are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by One Equity Partners.

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