Dynegy, Evoqua, Wheelabrator, NAB, Learfield, VICI, Ascensus, Hyperion, ABC and more break

By Sara Rosenberg

New York, Dec. 15 – A number of deals began trading on Friday, including Dynegy Inc., Evoqua Water Technologies (EWT Holding III Corp.), Wheelabrator Technologies Inc. (Granite Acquisition Inc.), North American Bancard (NAB Holdings LLC), Learfield Communications LLC and Tradesmen International LLC.

Also, VICI Properties Inc. firmed the spread on its term loan at the low end of guidance and modified the issue price, Ascensus Inc. set pricing on its incremental and repriced term loan debt at the tight side of talk, and Hyperion Insurance Group Ltd. finalized pricing on its term loans at the low side of guidance and removed the step-down, and then all of these deals broke for trading too.

In addition, ABC Financial Inc. set the spread on its first-lien term loan at the high end of guidance, Refresco firmed pricing on its term loans at the tight end of talk, and Glass Mountain Pipeline Holdings LLC set pricing on its term loan B at the low end of talk, and then these loans hit the secondary market as well.

Furthermore, Go Wireless reduced the size of its term loan, lifted pricing and sweetened the call premium, and BenefitMall (BMC Acquisition Inc.) widened spread and original issue discount on its term loan and extended the call protection.

And, CenseoHealth/Advance Health (Chloe Ox Parent LLC) trimmed pricing on its term loan, EVO Payments International finalized pricing on its term loan at the low side of talk, and Royal Oak Enterprises LLC (Ozark Holdings LLC) extended the commitment deadline on its term loan.

Dynegy frees up

Dynegy’s $2,018,000,000 senior secured term loan B (Ba3/BB) due February 2024 surfaced in the secondary market on Friday, with levels quoted at par 1/8 bid, par ½ offered, according to a market source.

Pricing on the term loan B is Libor plus 275 basis points with a 25 bps step-down if at least Ba3/BB- corporate ratings and a 1% Libor floor. The debt has 101 soft call protection for six months and was issued at par.

Current corporate ratings are B2/B+.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Investment Bank, Barclays and RBC Capital Markets are leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 1% Libor floor.

Dynegy is a Houston-based energy company.

Evoqua begins trading

Evoqua’s $796 million covenant-light first-lien term loan (B2/B) due December 2024 freed to trade as well, with levels quoted at par ½ bid, 101 offered, a market source said.

Pricing on the term loan is Libor plus 300 bps with a 25 bps step-down subject to B1/B+ ratings with a stable outlook and a 1% Libor floor. The loan was issued at par and has 101 soft call protection for six months.

On Thursday, pricing on the term loan firmed at the low end of the Libor plus 300 bps to 325 bps talk and the step-down was added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to extend an existing term loan from January 2021 and reprice the debt from Libor plus 375 bps with a 1% Libor floor.

Lenders were offered a 25 bps amendment fee.

Evoqua is a Warrendale, Pa.-based provider of equipment and services for water treatment.

Wheelabrator hits secondary

Wheelabrator Technologies’ bank debt began trading with the strip of $125 million incremental term loan C (B1/B+) due December 2021, repriced $48 million term loan C (B1/B+) due December 2021 and repriced $1.21 billion term loan B (B1/B+) due December 2021 debt quoted at par ¼ bid, 101 offered, according to a trader.

Pricing on the term loans is Libor plus 350 bps with a 1% Libor floor. The incremental loan was sold at an original issue discount of 99.75 and the repricings were issued at par. The loans include 101 soft call protection for six months.

During syndication, pricing on the term loans was increased from Libor plus 300 bps and the discount on the incremental loan was tightened from 99.5.

Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are leading the deal that is expected to close on Wednesday.

Proceeds from the incremental loan will be used to fund letters of credit, and the repricings will take the existing term loan B and C debt down from Libor plus 400 bps with a 1% Libor floor.

Wheelabrator amendment

Along with the term loan debt, Wheelabrator sought an amendment to its credit agreement, including its existing $247 million second-lien term loan (B3/B-) due December 2022, which was approved.

Under the amendment, the accordion free and clear basket shared between the first- and second-lien term loans is being reduced to $150 million from $350 million, a 1.1 times minimum debt service coverage ratio covenant is being added, and the capital structure is becoming portable with a change-of-control subject to ratings reaffirmation.

Pricing on the second-lien loan is unchanged at Libor plus 725 bps with a 1% Libor floor but lenders are getting 101 soft call protection for six months and a 5 bps consent fee.

Wheelabrator is a Hampton, N.H.-based owner and operator of waste-to-energy facilities and independent power-producing facilities.

NAB tops par

North American Bancard’s $638 million covenant-light first-lien term loan (B2/B) due June 2024 broke too, with levels seen at par 1/8 bid, par 5/8 offered, a trader said.

Pricing on the term loan is Libor plus 300 bps with a 25 bps step-down at senior secured net leverage of less than 2.75 times and a 1% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing term loan due June 2024 priced at Libor plus 325 bps with a 1% Libor floor.

North American Bancard is a Troy, Mich.-based merchant acquirer for payment processing.

Learfield breaks

Learfield Communications’ total $389 million incremental covenant-light first-lien term loan due Dec. 1, 2023 started trading, with the $47 million tranche quoted at par ¾ bid, 101¼ offered and the $342 million tranche quoted at par ½ bid, 101 offered, according to a trader.

Pricing on the incremental loan debt is Libor plus 325 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and the new debt was sold at a discount of 99.75. The incremental loan has 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 90 and the full spread thereafter.

During syndication, the loan was upsized from $364 million and the discount was tightened from 99.5.

The $47 million tranche will fund in January to finance the AMC transaction and, due to the recent upsize, to repay $25 million of existing second-lien term loan borrowings, and the $342 million tranche is expected to fund in the first quarter of 2018 upon closing of the merger of Learfield and IMG College, a subsidiary of WME | IMG.

Deutsche Bank Securities Inc., UBS Investment Bank, KKR Capital Markets, Antares Capital, SunTrust Robinson Humphrey Inc., Barclays, J.P. Morgan Securities LLC and RBC Capital Markets are leading the deal.

Learfield is a Plano, Texas-based provider of collegiate sports multimedia rights administration and marketing services. IMG College represents schools, conferences and other collegiate institutions across multimedia rights, licensing, marketing, ticketing, seating, publishing, radio and digital.

Tradesmen levels surface

Tradesmen’s $105 million incremental first-lien term loan due February 2024 was yet another deal to break and levels were seen at 101 bid, 101¾ offered, a trader said.

Pricing on the incremental loan is Libor plus 450 bps with a 1% Libor floor, which matches existing first-lien term loan pricing, and the new debt was sold at an original issue discount of 99.75. The incremental and the existing first-lien term loan will get 101 soft call protection for six months.

During syndication, the incremental loan was upsized from $90 million and the discount was modified from 99.5.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used for acquisition financing and, due to the recent upsizing, to pay down second-lien term loan borrowings.

The company is also amending its credit agreement to refresh the $40 million incremental free and clear at close.

Including the incremental loan, the first-lien term loan will total $359 million.

Closing is expected during the week of Dec. 18.

Tradesmen is a Macedonia, Ohio-based agency-based provider of outsourced skilled craftsmen.

VICI modified, hits secondary

VICI Properties finalized pricing on its $2.2 billion seven-year first-lien term loan at Libor plus 225 bps, the tight end of the Libor plus 225 bps to 250 bps talk, and moved the original issue discount to 99.75 from 99.5, according to a market source.

The term loan still has a 25 bps pricing step-down following a qualified initial public offering, a 0% Libor floor, 101 soft call protection for six months and a ticking fee of half the margin from days 31 to 60 and the full margin from days 61 to 90.

Previously, the term loan was downsized from $2.35 billion as an equity private placement was upsized.

The company’s $2.6 billion of senior secured credit facilities (Ba3/BB+) also include a $400 million revolver.

Recommitments were due at noon ET on Friday, and in the afternoon the term loan freed to trade with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

VICI lead banks

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading VICI Properties’ credit facilities.

Proceeds will be used with the equity to refinance the company’s existing first-lien term loan and first-lien notes, to repurchase existing mezzanine debt and for the acquisition of Harrah’s Las Vegas Hotel and Casino from Caesars Entertainment Corp. for about $1.14 billion.

Closing is expected this month.

VICI Properties is a Las Vegas-based real estate investment trust that owns gaming, hospitality and entertainment destinations.

Ascensus updated, trades

Ascensus firmed pricing on its $150 million incremental first-lien term loan due December 2022 and repricing of its existing $460 million first-lien term loan due December 2022 at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and set the original issue discount on the incremental loan at 99.75, the tight end of the 99.5 to 99.75 talk, a market source remarked.

Of the total incremental loan amount, $100 million will be funded and $50 million is delayed draw.

As before, the term loan debt has a 1% Libor floor and 101 soft call protection for six months, the repricing has a par issue price, and the delayed-draw piece has a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

After terms finalized, the loans made their way into the secondary market, with the incremental strip of funded and delayed-draw term loan debt quoted at par 1/8 bid, par 5/8 offered and the repriced term loan quoted at par 3/8 bid, par 7/8 offered, the source added.

Credit Suisse Securities (USA) LLC is leading the deal (B2).

The incremental loan will be used to fund tuck-in acquisitions, and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Ascensus is a Dresher, Pa.-based service provider of retirement and college savings plans.

Hyperion tweaked, frees up

Hyperion Insurance set the spread on its $925 million seven-year covenant-light term loan B and €200 million seven-year covenant-light term loan B at Libor/Euribor plus 350 bps, the low end of the Libor/Euribor plus 350 bps to 375 bps talk, eliminated from both loans the 25 bps step-down at first-lien net leverage of 4.25 times or lower and fixed the 50 bps MFN for life on incremental debt, according to a market source.

The U.S. term loan has a 1% Libor floor, the euro term loan has a 0% floor, and both term loans have an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s roughly $1.33 billion equivalent of senior secured credit facilities (B2/B) also include a £125 million five-year revolver priced at Libor plus 350 bps with a 0% Libor floor.

By Friday afternoon, the U.S. term loan broke for trading at par bid, par ½ offered, a trader added.

Morgan Stanley Senior Funding Inc., Barclays, J.P. Morgan Securities plc, RBC Capital Markets, HSBC Securities (USA) Inc., Lloyds Securities Inc., NatWest Markets and ING Capital LLC are leading the deal that will be used to refinance existing debt, to fund near-term acquisitions, to fund the Lockbox Account, for general corporate purposes and to pay related fees and expenses.

Hyperion is a London-based insurance intermediary group.

ABC firms, starts trading

ABC Financial finalized pricing on its $260 million seven-year first-lien term loan (B2/B) at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source said.

The first-lien term loan then freed to trade, with levels seen at par bid, par ¾ offered, the source added.

The company’s $400 million of senior secured credit facilities also include a $25 million five-year revolver (B2/B) and a $115 million privately placed eight-year second-lien term loan with hard call protection of 102 in year one and 101 in year two.

Jefferies LLC, Macquarie Capital and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Thoma Bravo LLC.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

ABC Financial is a Little Rock, Ark.-based software and payment processing company.

Refresco sets terms, breaks

Refresco firmed pricing on its $620 million seven-year covenant-light term loan B and €1,217,000,000 seven-year covenant-light term loan B at Libor/Euribor plus 325 bps, the low end of the Libor/Euribor plus 325 bps to 350 bps talk, and on its £200 million seven-year covenant-light term loan B at Libor plus 400 bps, the low side of the Libor plus 400 bps to 425 bps talk, a market source remarked.

Also, the original issue discount on the sterling loan was changed to 99.5 from 99.25.

All of the term loans (B+) still have a 0% Libor floor and 101 soft call protection for six months, and the U.S. and euro term loans still have and an original issue discount of 99.5.

The U.S. term loan began trading during the session, with levels quoted at 99 5/8 bid, par offered, the source added.

JPMorgan is the lead on the U.S. loan, and BNP Paribas, Credit Suisse and JPMorgan are the leads on the euro and sterling loans. Deutsche Bank, ABN Amro Bank, Rabobank and Mizuho are passive bookrunners.

Proceeds will be used to help fund the buyout of the company by PAI Partners SAS and British Columbia Investment Management Corp. for €20 in cash per ordinary share for a consideration of €1,623,000,000.

Refresco is a Rotterdam, the Netherlands-based bottler of beverages.

Glass Mountain firms, trades

Glass Mountain Pipeline set pricing on its $300 million seven-year term loan B at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source said.

By late afternoon, the term loan B hit the secondary market and levels were seen at 99½ bid, par ½ offered, a trader added.

The company’s $325 million of senior secured credit facilities (B2/B) also include a $25 million five-year revolver.

Morgan Stanley Senior Funding and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the acquisition of Glass Mountain by BlackRock Inc.’s Global Energy and Power Infrastructure Fund, in partnership with Navigator Energy Services, from SemGroup Corp. and NGL Energy Partners LP.

Closing is expected during the week of Dec. 18.

Glass Mountain is a midstream asset consisting of a fully integrated, roughly 260-mile crude transportation system linking the Stack, Mississippi Lime and Granite Wash plays to Cushing, Okla.

Go Wireless reworked

In more happenings, Go Wireless cut its senior secured term loan to $350 million from $400 million, increased pricing to Libor plus 650 bps from Libor plus 600 bps and extended the 101 soft call protection to one year from six months, while leaving the 1% Libor floor and original issue discount of 99 unchanged, a market source remarked.

UBS Investment Bank is leading the deal that will be used to refinance existing debt, to fund a dividend, which was reduced with the term loan downsizing, and for general corporate purposes.

Go Wireless is a Verizon authorized retailer.

BenefitMall changes emerge

BenefitMall raised pricing on its $230 million seven-year covenant-light first-lien term loan to Libor plus 525 bps from talk in the range of Libor plus 475 bps to 500 bps, modified the original issue discount to 99 from 99.5 and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan still has a 1% Libor floor.

The company’s $270 million of credit facilities (B2/B) also include a $40 million revolver.

Recommitments were due at 5 p.m. ET on Friday, the source said.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used with equity to fund the buyout of the company by the Carlyle Group from an investor group led by Austin Ventures.

Closing is expected this year, subject to customary conditions.

BenefitMall is a Dallas-based provider of employee benefits and payroll services to small and medium sized businesses.

CenseoHealth cuts pricing

CenseoHealth lowered the spread on its $260 million seven-year covenant-light first-lien term loan to Libor plus 500 bps from Libor plus 525 bps, a market source said.

The term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $295 million of credit facilities (B) also include a $35 million revolver.

Recommitments were due at 4 p.m. ET on Friday, the source added.

UBS Investment Bank and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of CenseoHealth LLC and Drynachan LLC (Advance Health) by New Mountain Capital for a combined $565 million in enterprise value.

CenseoHealth is a Dallas-based provider of in-home health assessments conducted by physicians. Advance Health is a Chantilly, Va.-based provider of managed care prospective health solutions.

EVO sets spread

EVO Payments firmed pricing on its $570 million term loan at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and kept the 1% Libor floor and par issue price intact, a market source remarked.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 500 bps with a 1% Libor floor.

EVO Payments is an Atlanta-based payments processor and acquirer for merchants, independent sales organizations, financial institutions, government organizations and multinational corporations.

Royal Oak revises timing

Royal Oak Enterprises pushed out the commitment deadline on its $371.5 million term loan B due July 1, 2023 to 5 p.m. ET on Monday from noon ET on Friday, a market source said.

Talk on the term loan is Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Barclays and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance an existing term loan B.

The company will remain privately rated by both Moody’s and Standard & Poor’s, the source added.

Royal Oak is a Roswell, Ga.-based maker of charcoal products.

Sedgwick allocates

Sedgwick Claims Management Services Inc. allocated on Friday its fungible $735 million incremental first-lien term loan B (B) due 2021 and fungible $200 million second-lien term loan (CCC+) due 2022 in line with initial talk, according to a market source.

Pricing on the first-lien term loan is Libor plus 275 bps with a 1% Libor floor and it was sold at an original issue discount of 99.51, and pricing on the second-lien term loan is Libor plus 575 bps with a 1% Libor floor and it was sold at a discount of 99.26.

The incremental first-lien term loan and the existing term loan B with which it is fungible are getting 101 soft call protection for six months.

KKR Capital Markets is leading the $935 million in term loans that will be used to fund the acquisition of Cunningham Lindsey, a Tampa, Fla.-based loss adjusting, claims management and risk solutions firm.

Closing is subject to customary conditions and regulatory approvals.

Sedgwick, which is majority owned by KKR, is a Memphis, Tenn.-based provider of technology-enabled risk and benefits solutions.

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