Telenet, Chromaflo, Murray, Camping World, Quikrete, Zep, Dayton break; Houghton weakens

By Sara Rosenberg

New York, Nov. 3 – Telenet (Telenet International Finance Sarl/Telenet Financing USD LLC) upsized its U.S. and euro term loans, set spreads at the low end of guidance and tightened the issue price on the euro piece, and then the debt freed up for trading on Thursday.

Chromaflo Technologies LLC moved some funds between its first- and second-lien term loans and finalized issue prices, and Murray Energy Corp. widened the original issue discount on its term loan B-3, and then both of these broke as well.

Deals from Camping World Good Sam, Quikrete Co., Zep Inc. and Dayton Superior Corp. also broke into the secondary market during the session, and Houghton Mifflin Harcourt’s term loan softened following the release of third quarter numbers.

Back in the primary market, Infoblox Inc. lifted pricing on its first- and second-lien term loans, modified original issue discounts and revised the call premium on the first-lien tranche, and ServiceMaster Global Holdings Inc. increased its term loan B size, firmed the spread at the low end of talk and revised the call premium.

Also, Acrisure LLC upsized its first-lien term loan, set pricing at the high end of talk and extended the call protection, and Winnebago Industries Inc. set pricing on its term loan B at the high end of guidance, extended the call protection, added a financial covenant and adjusted amortization.

Furthermore, WME IMG LLC accelerated the commitment deadline on its add-on term loan, Inmar came out with price talk on its add-on term loan with launch, and Innovative XCessories & Services LLC and IPS Corp. emerged with new deal plans.

Telenet changes emerge

Telenet raised its U.S. senior secured term loan B due Jan. 31, 2025 to $1.5 billion from $750 million and finalized pricing at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, while leaving the original issue discount of 99.5 intact, according to a market source.

Also, the company upsized its euro senior secured term loan B due Jan. 31, 2025 to €1.6 billion from €500 million, firmed pricing at Euribor plus 325 bps, the low end of the Euribor plus 325 bps to 350 bps talk, and revised the issue price to par from 99.75, the source said.

Both term loans (B1/B+/BB) still have no floor and 101 soft call protection for six months.

Proceeds will be used to refinance a €474.1 million facility W due June 2022 priced at Euribor plus 325 bps with no floor, an €882.9 million facility Y due June 2023 priced at Euribor plus 350 bps with no floor, an €800 million facility AA due June 2023 priced at Euribor plus 350 bps with no floor and an $850 million facility AD due June 2024 priced at Libor plus 350 bps with a 0.75% Libor floor.

Telenet starts trading

After final terms were announced on Thursday, the U.S. term loan B made its way into the secondary market with levels quoted at 100½ bid, 100 7/8 offered, the source added.

The bookrunners on the U.S. term loan B are Goldman Sachs Bank USA, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., ING Capital Markets, J.P. Morgan Securities LLC, Rabobank, RBC Capital Markets and SG Americas Securities LLC, with Goldman the left lead. Bookrunners on the euro term loan B are BNP Paribas, Deutsche Bank, Goldman Sachs, JPMorgan, RBC, RBS, Scotiabank and SG, with BNP the left lead.

In addition to the new term loans, the company is in the process of extending the outstanding commitments under its undrawn €381 million revolver to June 2023 from September 2020, with pricing remaining at Euribor plus 275 bps.

Telenet is a Mechelen, Belgium-based cable operator.

Chromaflo reworked

Chromaflo Technologies lifted its seven-year covenant-light first-lien term loan B to $360 million from $345 million and set the original issue discount at 99.5, the tight end of revised talk of 99 to 99.5, and tighter than original talk of 99, a market source remarked.

Pricing on the first-lien term loan is still Libor plus 400 bps, after firming on Wednesday at the low end of the Libor plus 400 bps to 425 bps talk. The debt has a 1% Libor floor and 101 soft call protection for six months.

With the first-lien term loan upsizing, the eight-year covenant-light second-lien term loan was trimmed to $120 million from $135 million and the discount firmed at 98.5, the wide end of revised talk of 98.5 to 99, and in line with initial talk of 98.5, the source continued.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor, and has hard call protection of 102 in year one and 101 in year two. On Wednesday, the spread on this tranche was set at the low end of the Libor plus 800 bps to 825 bps talk.

Finally, with the last round of changes to terms, the MFN sunset was eliminated.

Chromaflo frees up

After terms finalized, the debt broke for trading, with the first-lien term loan B quoted at par bid, 100½ offered and the second-lien term loan quoted at 99 bid, par offered, a trader added.

The company’s $530 million senior secured credit facility also includes a $50 million five-year revolver (B2/B) priced at Libor plus 400 bps.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, KeyBanc Capital Markets LLC and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company by American Securities.

Closing is expected during the week of Nov. 14.

Chromaflo is an Ashtabula, Ohio-based manufacturer of chemical and pigment dispersions for architectural and industrial coatings.

Murray tweaks OID, trades

Murray Energy modified the original issue discount on its $175 million senior secured first-lien term loan B-3 (Caa1/B-) due April 16, 2020 to 88.5 from talk of 92 to 93, according to a market source.

Pricing on the term loan is still at Libor plus 775 bps with a 1% Libor floor.

With pricing terms set, the term loan B-3 broke for trading and levels were seen at 88½ bid, 90 offered, the source said.

Goldman Sachs Bank USA is leading the deal that will be used to refinance an existing senior secured term loan B-1 due April 2017.

Closing is expected during the week of Nov. 7, the source added.

Murray Energy is a St. Clairsville, Ohio-based coal company.

Camping World breaks

Camping World’s $645 million senior secured term loan B (B1/BB+) due November 2023 began trading as well, with levels quoted at 99¾ bid, 100½ offered, a trader said.

Pricing on the term loan B is Libor plus 375 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing debt.

Closing is expected on Tuesday.

Camping World is a Lincolnshire, Ill.-based seller of RVs and supplier of RV parts, supplies and accessories.

Quikrete tops OID

Another deal to hit the secondary was Quikrete, with its $2.3 billion seven-year covenant-light term loan B (B1/BB-) quoted at 100¼ bid, 100¾ offered, according to a market source.

The term loan B is priced at Libor plus 325 bps with a 0.75% Libor floor, and was issued at a discount of 99.5. The debt includes 101 soft call protection for six months.

During syndication, the term loan B was upsized from $2,245,000,000, the Libor floor was reduced from 1% and the discount was tightened from 99.

The company’s $2,625,000,000 credit facility also includes a $325 million five-year ABL revolver.

Wells Fargo Securities LLC is leading the deal that will be used to fund the acquisition of Contech and refinance existing debt.

Quikrete is an Atlanta-based manufacturer of packaged concrete and related products.

Zep hits secondary

Zep’s $355 million term loan also freed up, with levels seen at 100¼ bid, 100¾ offered, according to a market source.

The term loan is priced at Libor plus 400 bps with a 1% Libor floor, and was issued at par. The debt includes 101 soft call protection for six months.

Jefferies Finance LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 450 bps with a 1% Libor floor.

Zep is an Atlanta-based consumable chemical packaged goods company.

Dayton frees to trade

Dayton Superior’s $210 million five-year term loan B (Caa1/B/B+) broke, with levels quoted at 98 bid, 99 offered, a market source said.

Pricing on the term loan B is Libor plus 800 basis points with a 1% Libor floor, and it was sold at an original issue discount of 97. The debt has hard call protection of 102 in year one and 101 in year two.

During syndication, the term loan B was downsized from $225 million, pricing was raised from Libor plus 700 bps, the call protection was sweetened from just 101 for one year, and the maturity was shortened from six years.

Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt.

Dayton Superior is a Miamisburg, Ohio-based supplier to the non-residential concrete construction industry.

Houghton Mifflin falls

In more trading happenings, Houghton Mifflin’s term loan dropped to 96 bid, 98 offered from 98 bid, 99 offered as the company released financial results for the third quarter, a trader said.

For the quarter, net income was $90 million, or $0.73 per diluted share, compared with $131 million, or $0.94 per diluted share, for the same period in 2015.

And, net sales for the quarter were $533 million, down from $576 million last year, and adjusted EBITDA was $168 million, compared with $192 million in the prior year.

The company also lowered its full year 2016 outlook for net sales to between $1.32 and $1.38 billion from between $1,485,000,000 and $1,555,000,000 due to weaker-than-expected results in the domestic education market.

Houghton Mifflin is a Boston-based provider of pre-K-12 education content, services and technology solutions.

Infoblox revised

Returning to the primary market, Infoblox increased pricing on its $500 million seven-year covenant-light first-lien term loan (B1/B-/BB-) to Libor plus 500 bps from Libor plus 450 bps, changed the original issue discount to 98 from talk of 99 to 99.5 and pushed out the 101 soft call protection to one year from six months, while leaving the 1% Libor floor unchanged, according to market sources.

In addition, pricing on the company’s $250 million eight-year covenant-light second-lien term loan (Caa1/CCC/CCC+) was lifted to Libor plus 850 bps from Libor plus 825 bps and the discount was modified to 98 from talk of 98.5 to 99, sources said. This tranche still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $800 million senior secured credit facility also includes a $50 million five-year revolver (B1/B-/BB-).

Recommitments were due at 1 p.m. ET on Thursday, sources added.

Infoblox being acquired

Proceeds from Infoblox’s credit facility will be used with $755 million in equity to fund its buyout by Vista Equity Partners for $26.50 per share of common stock in cash, or about $1.6 billion.

Bank of America Merrill Lynch, RBC Capital Markets LLC, Barclays, Deutsche Bank Securities Inc. and Macquarie Capital (USA) Inc. are leading the credit facility, with Bank of America left lead on the first-lien loan and RBC left lead on the second-lien loan.

Closing is expected in the company’s fiscal second quarter, subject to customary conditions and regulatory approvals.

Infoblox is a Santa Clara, Calif.-based provider of Actionable Network Intelligence to enterprise, government and service provider customers.

ServiceMaster upsizes

ServiceMaster lifted its term loan B due 2023 to $1.65 billion from $1.5 billion, set pricing at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, and extended the 101 soft call protection to one year from six months, a source said.

The term loan B still has no Libor floor and an original issue discount of 99.75.

The company’s now $1.95 billion credit facility also includes a $300 million revolver due 2019.

J.P. Morgan Securities LLC is the left lead bank on the deal that will be used with $750 million of senior unsecured notes to refinance about $2.4 billion of existing term loan B debt due 2021 and a $300 million revolver due 2019.

The notes were downsized from $1 billion with the term loan B upsizing, and the $100 million reduction in the total amount of term loan B and bond debt being obtained will reduce pro forma cash on the balance sheet, the source added.

ServiceMaster is a Memphis-based provider of residential and commercial services.

Acrisure updated

Acrisure increased its first-lien term loan to $1.26 billion from $1,175,000,000, of which $195 million will be delayed-draw, up from $110 million, firmed pricing at Libor plus 475 bps, the wide end of the Libor plus 450 bps to 475 bps talk, and extended the 101 soft call protection to one year from six months, a market source remarked.

The first-lien term loan still has a 1% Libor floor and an original issue discount of 99.

J.P. Morgan Securities LLC, Antares Capital, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Madison Capital are leading the deal that will be used to help fund the management-led buyout of the company, led by Greg Williams, chief executive officer and co-founder, and a consortium of minority investors from Genstar Capital and to refinance existing debt.

In addition to the first-lien term loan, the company plans on getting a $200 million revolver and a $305 million privately placed second-lien term loan.

Acrisure is a Caledonia, Mich.-based insurance brokerage.

Winnebago modifies loan

Winnebago firmed pricing on its $300 million seven-year secured term loan B (B2/BB-) at Libor plus 450 bps, the wide end of the Libor plus 425 bps to 450 bps talk, extended the 101 soft call protection to one year from six months, added a net leverage covenant opening at 3.5 times to the previously covenant-light loan and increased amortization to 3%, stepping up to 5% beginning December 2017, from 1% per annum, a source said.

As before, the term loan B has a 1% Libor floor and an original issue discount of 99.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

The company’s $425 million credit facility also includes a $125 million five-year asset-based revolver.

J.P. Morgan Securities LLC is leading the deal that will be used with $60 million of cash to fund the acquisition of Grand Design Recreational Vehicle Co. for about $395 million in cash and $105 million of newly issued Winnebago shares.

Winnebago is a Forest City, Iowa-based manufacturer of recreation vehicles. Grand Design is a manufacturer of towable recreation vehicles.

WME IMG moves deadline

WME IMG accelerated the commitment deadline on its fungible $100 million add-on term loan (B1) to 2 p.m. ET on Thursday from Friday, a market source remarked.

The term loan is talked at Libor plus 425 bps with a 1% Libor floor and a par issue price.

KKR Capital Markets is leading the deal that will be used for acquisitions and other corporate purposes.

WME IMG is an entertainment, sports and fashion company.

Inmar reveals talk

Inmar held its lender meeting on Thursday, launching its fungible $125 million add-on term loan at talk of Libor plus 350 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.

As part of the transaction, pricing on the company’s existing term loan will be lifted from Libor plus 325 bps with a 1% Libor floor to match pricing on the add-on loan, the source said.

Commitments are due on Nov. 15.

BNP Paribas Securities Corp. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund an acquisition.

Inmar is a Winston-Salem, N.C.-based provider of tech enabled promotion and inventory, logistics and settlement services.

Innovative XCessories on deck

Innovative XCessories set a bank meeting for 10:30 a.m. ET on Tuesday to launch a $420 million credit facility, a market source remarked.

The facility consists of a $20 million revolver and a $400 million term loan B, the source continued.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Pro forma net leverage is 3.9 times, the source added.

Innovative XCessories, an Olympus Partners portfolio company, is a Huntsville, Ala.-based provider of upfit services and accessories to the automotive aftermarket and original equipment manufacturers.

IPS joins calendar

IPS surfaced with plans to hold a bank meeting on the morning of Nov. 10 to launch $420 million of term loans, split between a $310 million seven-year first-lien term loan and a $110 million eight-year second-lien term loan, according to a market source.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

IPS, a portfolio company of Nautic Partners LLC, is a Compton, Calif.-based manufacturer of solvent cements, primers and sealants, plumbing and roofing products, and structural and assembly adhesives.

EMI done at talk

In other news, EMI Music Publishing wrapped the repricing of its $1,071,000,000 term loan at talk of Libor plus 275 bps with no Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

UBS Investment Bank leading the deal.

The repricing will take the term loan down from Libor plus 300 bps with a 1% Libor floor.

EMI Music is a New York-based music publisher.

Expera closes

Expera Specialty Solutions LLC closed on its $335 million credit facility (B2/BB-) that includes a $50 million revolver and a $285 million seven-year term loan B, a news release said.

Pricing on the term loan B is Libor plus 475 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan B firmed at the low end of the Libor plus 475 bps to 500 bps talk.

Deutsche Bank Securities Inc. and Barclays led the deal that was used to refinance existing debt and fund a distribution to shareholders.

Expera, a KPS Capital Partners LP portfolio company, is a Kaukauna, Wis.-based manufacturer of specialty paper and protective packaging products for the industrial & technical, food, and pressure-sensitive release liner segments.

Rackspace wraps

The buyout of Rackspace Hosting Inc. by Apollo Global Management LLC for $32.00 per share in cash has been completed, according to a news release.

To help fund the transaction, Rackspace got a new $2,225,000,000 senior secured facility (Ba2/BB+/BB+) that includes a $225 million five-year revolver and a $2 billion seven-year covenant-light term loan B.

Pricing on the term loan B is Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan B was reduced from Libor plus 425 bps and the discount was tightened from 99.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, RBC Capital Markets and Credit Suisse Securities (USA) LLC led the deal.

Pro forma for the transaction, the San Antonio-based managed cloud company has net secured leverage of 2.5 times and net total leverage of 4 times based on LTM June 30 pro forma adjusted EBITDA of $810 million.

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