Vivid Seats, First Data, Alkermes, PetSmart, Casella Waste, Micron Technology free to trade

By Sara Rosenberg

New York, Oct. 7 – Vivid Seats LLC downsized its first-lien term loan B and adjusted pricing on all tranches in its credit facility, and First Data Corp. and Alkermes Inc. firmed pricing on their term loans at the low end of talk, and then all of these deals broke for trading on Friday.

Other deals to make their way into the secondary market during the session included PetSmart Inc., Casella Waste Systems Inc. and Micron Technology Inc.

Returning to the primary market, Platform Specialty Products Corp. (MacDermid Inc.) trimmed its U.S. term loan size and lifted its euro term loan size in addition to tightening the spread and original issue discount on the euro tranche, and Fort Dearborn Co. (Fortress Merger Sub Inc.) reworked its first- and second-lien term loan sizes and pricing.

In addition, Rocket Software Inc. upsized its first-lien term loan and reduced pricing and downsized its second-lien term loan while setting the spread at the high end of guidance, and PAE Holding Corp. reworked its first- and second-lien term loan sizes, spreads and issue prices.

Furthermore, Kronos Inc., Forterra Finance LLC, Portillo’s and Coty Inc. came out with price talk on their loans with launch, timing on Rackspace Hosting Inc.’s credit facility emerged, and Party City Holdings Inc., Husky Injection Molding Systems and Deluxe Entertainment Services Group Inc. surfaced with new deal plans.

Vivid modified

Vivid Seats reduced its six-year covenant-light first-lien term loan B to $350 million from $400 million, firmed pricing at Libor plus 575 basis points, the low end of revised talk of Libor plus 575 bps to 600 bps and up from initial talk of Libor plus 500 bps to 550 bps, and set the original issue discount at 98, the wide end of revised talk of 98 to 98.5 and wide of initial talk of 99, according to a market source.

Also, on the first-lien term loan, the 101 soft call protection was extended to one year from six months, and amortization was increased to 5% per annum from 1% per annum, the source said.

The first-lien term loan still has a 1% Libor floor.

Regarding the $155 million seven-year covenant-light second-lien term loan, the spread was set at Libor plus 975 bps, the low end of revised talk of Libor plus 975 bps to 1,000 bps and wide of initial talk of Libor plus 850 bps to 900 bps, while the 1% Libor floor, discount of 98 and hard call protection of 102 in year one and 101 in year two were unchanged.

Vivid revolver flexes

Along with the term loan changes, Vivid Seats increased pricing on its $30 million five-year revolver to Libor plus 550 bps from initial talk of Libor plus 475 bps to 525 bps, the source continued.

Further changes to the deal included removing the MFN sunset, setting the revolver covenant springs at 25%, setting the free and clear incremental basket at $15 million with no EBITDA grower and requiring quarterly calls with the company.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC are the lead banks on the deal, with Morgan Stanley the agent on the first-lien loan and JPMorgan the agent on the second-lien loan.

Recommitments were due at 1 p.m. ET on Friday.

Vivid hits secondary

By late day, Vivid Seats’ credit facility freed up for trading, with the first-lien term loan quoted at 98 bid, 99 offered, a trader said.

Proceeds from the $535 million senior secured credit facility will be used to refinance existing first-lien debt and a HoldCo seller notes and to fund a dividend distribution to equity investors.

Closing is expected on Wednesday.

Vivid Seats is a Chicago-based secondary ticket marketplace for live sports, concerts and theater events.

First Data firms, trades

First Data set pricing on its $4,368,000,000 and €154 million first-lien term loans due March 24, 2021 (Ba3/BB) at Libor/Euribor plus 300 bps, the tight end of the Libor/Euribor plus 300 bps to 325 bps talk, a market source remarked.

The term loans still have no floor, a par issue price and 101 soft call protection for six months.

With final terms in place, the U.S. term loan made its way into the secondary market and levels were quoted at 100 1/8 bid, 100 3/8 offered, the source added.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to reprice existing U.S. and euro term loans down from Libor/Euribor plus 400 bps with no floor.

First Data is an Atlanta-based provider of payment processing solutions.

Alkermes sets spread, breaks

Alkermes finalized pricing on its $288 million senior secured covenant-light term loan B-1 (Ba3/BB) due Sept. 25, 2021 at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, according to a market source.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

By late day, the term loan freed up for trading, with levels quoted at 99¾ bid, 100¼ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to amend and extend the existing term loan B-1 due Sept. 25, 2019 priced at Libor plus 275 bps with a 0.75% Libor floor.

Closing is expected during the week of Oct. 10.

Alkermes is a Dublin-based biopharmaceutical company.

PetSmart frees up

PetSmart’s $4,246,000,000 senior secured covenant-light term loan B due March 10, 2022 began trading too, with levels quoted at par bid, 100¼ offered, according to a trader.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Closing is expected during the week of Oct. 10.

PetSmart is a Phoenix-based specialty pet retailer.

Casella starts trading

Casella Waste System’s credit facility also hit the secondary market, with its $350 million seven-year covenant-light term loan B quoted at par bid, 100¾ offered, a trader said.

Pricing on the term loan B is Libor plus 300 bps with a step-down to Libor plus 275 bps when consolidated net leverage is 3.75 times. The debt has a 1% Libor floor and 101 soft call protection for six months, and was issued at a discount of 99.5.

The company’s $510 million credit facility (B1/B+), which is expected to close on Oct. 17, also includes a $160 million five-year revolver priced at Libor plus 300 bps.

During syndication, pricing on the term loan was lowered from Libor plus 325 bps, the step-down was added and the discount was changed from 99, and the revolver was upsized from $150 million.

Bank of America Merrill Lynch is leading the deal that will be used to redeem 7¾% senior subordinated notes due 2019, to repay in full an existing senior secured asset-based revolver and letter-of-credit facility, which matures on Feb. 26, 2020, and for working capital and other purposes.

Casella is a Rutland, Vt.-based solid waste, recycling and resource management services company.

Micron tops par

Micron Technology’s $748,125,000 covenant-light term loan B due April 26, 2022 broke as well, with levels seen at 100½ bid, 101 offered, a trader remarked.

Pricing on the loan is Libor plus 375 bps with no Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice the existing term loan B from Libor plus 600 bps with no Libor floor.

Closing is expected on Oct. 27.

Micron is a Boise, Idaho-based semiconductor company.

Platform changes emerge

Back in the primary market, Platform Specialty Products downsized its U.S. dollar seven-year term loan B to $1,530,325,000 from $1,647,000,000 and left pricing unchanged at Libor plus 400 bps with a 1% floor and an original issue discount of 99.5, according to a market source.

On the flip side, the company’s euro seven-year term loan B was upsized to €383.5 million from about €282 million, pricing was cut to Euribor plus 375 bps from Euribor plus 400 bps, and the discount was modified to 99.75 from 99.5, the source said, adding that the 1% floor was left intact.

Also, a springing maturity was added to the credit agreement under which if the company’s 6.5% senior notes due 2022 have not been prepaid or redeemed in full on or before Nov. 2, 2021, then the term loans will be fully due and payable on that date.

Both term loans include 101 soft call protection for six months.

Platform refinancing

Proceeds from Platform’s new term loans will be used with balance sheet cash to refinance the company’s existing senior secured U.S. term loan B-1, U.S. term loan B-2 and euro term loan C-1.

Barclays, Credit Suisse Securities (USA) LLC and Nomura are leading the deal.

Commitments for the revised deal were due at 1 p.m. ET on Friday, the source added.

Platform is a West Palm Beach, Fla.-based producer of high-technology specialty chemicals and a provider of technical services.

Fort Dearborn revised

Fort Dearborn upsized its seven-year covenant-light first-lien term loan to $480 million from $455 million, trimmed pricing to Libor plus 400 bps from Libor plus 450 bps and tightened the original issue discount to 99.5 from 99, according to a market source, who said the loan still has a 1% Libor floor and 101 soft call protection for six months.

The company also downsized its eight-year covenant-light second-lien term loan to $145 million from $170 million and flexed pricing to Libor plus 850 bps from talk of Libor plus 875 bps to 900 bps, the source continued. This tranche still has a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two.

In addition, the pricing step-downs were removed from both term loans, the MFN sunset was eliminated and the MFN provision was set to apply to all aspects of the incremental.

Recommitments were due by 11 a.m. ET on Friday.

Fort Dearborn lead banks

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets LLC and Credit Suisse Securities (USA) LLC are leading Fort Dearborn’s $625 million of term loans.

Proceeds will be used to help fund the buyout of the company by Advent International from KRG Capital Partners, with management retaining a minority stake in the company.

Closing is expected on Oct. 19, subject to customary conditions.

Fort Dearborn is an Elk Grove, Ill.-based supplier of high-impact prime labels for the consumer goods industry.

Rocket reworks deal

Rocket Software raised its seven-year covenant-light first-lien term loan to $675 million from $630 million and trimmed pricing to Libor plus 425 bps from talk of Libor plus 450 bps to 475 bps, while leaving the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, a market source said.

As for the eight-year covenant-light second-lien term loan, it was reduced to $195 million from $215 million and pricing was set at Libor plus 950 bps, the wide end of the Libor plus 925 bps to 950 bps talk, the source continued. This tranche still has a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two.

The company’s now $905 million credit facility also includes a $35 million revolver.

Recommitments were due at 3 p.m. ET on Friday, the source added.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt, to pay a shareholder distribution and to finance an acquisition.

Rocket Software is a Waltham, Mass.-based software development firm.

PAE restructured

PAE Holding downsized its six-year covenant-light first-lien term loan to $500 million from $550 million, raised pricing to Libor plus 550 bps from talk of Libor plus 475 bps to 500 bps and widened the original issue discount to 98 from 99, according to a market source. The loan still has a 1% Libor floor and 101 soft call protection for six months.

Meanwhile, the company’s seven-year covenant-light second-lien term loan was downsized to $210 million from $175 million, pricing was increased to Libor plus 950 bps from Libor plus 900 bps, and the discount was changed to 97 from 98, the source said. The 1% Libor floor and call protection of 102 in year one and 101 in year two were unchanged.

Commitments were due at 1 p.m. ET on Friday.

Bank of America Merrill Lynch, Citizens Bank, SunTrust Robinson Humphrey Inc. and Morgan Stanley Senior Funding Inc. are leading the $710 million in term loans that will refinance existing debt and fund a dividend.

PAE is an Arlington, Va.-based provider of support services for the U.S. government, its allied partners and international organizations.

Kronos discloses guidance

Also in the primary market, Kronos came out with price talk on its first- and second-lien term loans as its lender call took place on Friday morning, a source remarked.

The $2.3 billion seven-year covenant-light first-lien term loan B (B2/B-) is talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the $1 billion eight-year covenant-light second-lien term loan (Caa2/CCC) is talked at Libor plus 825 bps to 850 bps with a 1% Libor floor, a discount of 99 and call protection of non-callable for one year, then at 102 in year two and 101 in year three, the source continued.

The company’s $3.4 billion credit facility also includes a $100 million five-year revolver (B2/B-).

Commitments are due on Oct. 18, the source added.

Nomura, Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Kronos is a Chelmsford, Mass.-based provider of workforce management software.

Forterra releases talk

Forterra held its lender call in the morning, and shortly before the event kicked, spread talk of Libor plus 400 bps was announced on its $1 billion seven-year covenant-light first-lien term loan (B1/B+), according to a market source.

When the deal was announced on Thursday, it was already revealed that the loan is guided with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Commitments are due at 2 p.m. ET on Oct. 18.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

Forterra is an Irving, Texas-based manufacturer of drainage and water transmission pipe and products.

Portillo’s launches

Portillo’s disclosed price talk on its $71 million add-on first-lien term loan (B2/B-) and $25 million add-on second-lien term loan (Caa2/CCC) with its lender call, a market source said.

The first-lien term loan is talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 800 bps with a 1% Libor floor and a discount of 98, the source added.

Consents are due on Oct. 17 and new money commitments are due on Oct. 20.

UBS Investment Bank and Jefferies Finance LLC are leading the $96 million in add-on term loans that will be used to pay a dividend.

Portillo’s, a Berkshire Partners portfolio company, is an Oak Brook, Ill.-based restaurant company.

Coty holds call

Coty hosted a lender call on Friday to launch a repricing of its $500 million term loan B due October 2022 and a €665 million term loan B due October 2022, and to launch an $800 million incremental term loan A and a €325 million incremental term loan B, according to a market source.

Talk on the U.S. loan repricing is Libor plus 250 bps to 275 bps with no floor and a par issue price, versus current pricing of 300 bps with a 0.75% Libor floor, and talk on the euro loan repricing is Euribor plus 275 bps to 300 bps with no floor and a par issue price, versus current pricing of Euribor plus 275 bps with a 0.75% floor, the source said.

J.P. Morgan Securities LLC is leading the deal.

Proceeds from the incremental loans will be used by the New York-based beauty company to repay debt and for general corporate purposes, the source added.

Rackspace timing announced

Rackspace emerged with plans to hold a bank meeting at 10:30 a.m. ET in New York on Thursday to launch its proposed senior secured credit facility, according to a market source.

The company had said in filings with the Securities and Exchange Commission that the credit facility is expected to be sized at $2,225,000,000, split between a $225 million revolver and a $2 billion term loan.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that will help fund the buyout of the company by Apollo Global Management LLC for $32.00 per share in cash, or $4.3 billion, including the assumption of $43 million of net cash.

Other funds for the transaction are expected to come from $1.2 billion in senior unsecured notes and up to $1,707,000,000 in equity.

Closing is anticipated in the fourth quarter, subject to the conclusion of the applicable antitrust waiting periods in the United States, the European Union and Israel, stockholder approval and other customary conditions.

Rackspace is a San Antonio-based managed cloud company.

Party City on deck

Party City set a lender call for Tuesday to launch a $1,327,000,000 covenant-light first-lien term loan (B1/B) due Aug. 19, 2022 talked at 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.

Proceeds will be used to reprice an existing term loan down from Libor plus 325 bps with a 1% Libor floor.

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

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

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery.

Husky plans loan

Husky Injection Molding Systems will hold a lender call at 3 p.m. ET on Tuesday to launch a $160 million add-on first-lien term loan, according to a market source.

Goldman Sachs Bank USA, TD Securities (USA) LLC, Barclays, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used to repay second-lien borrowings.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.

Deluxe joins calendar

Deluxe Entertainment Services scheduled a lender call for 11 a.m. ET on Thursday to launch a non-fungible $75 million incremental first-lien term loan, according to a market source.

Macquarie Capital (USA) Inc. is leading the deal that will be used to fund an acquisition and add cash to the balance sheet.

Deluxe is a Los Angeles-based provider of digital asset creation, management and distribution services.

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