Post, Alexander Mann, Hyperion, ION break; Axalta, Emerald, Boyd, Tibco revisions emerge

By Sara Rosenberg

New York, May 17 – Post Holdings Inc.’s term loan B made its way into the secondary market on Wednesday above its original issue discount and Alexander Mann Solutions, Hyperion Insurance Group Ltd. and ION Media Networks Inc. began trading too.

Moving to the primary market, Axalta Coating Systems U.S. Holdings Inc. increased the size of its term loan, trimmed pricing and modified the issue price, and Emerald Expositions Holding Inc. tightened the original issue discount on its term loan and added a pricing step-down.

In addition, Boyd Corp. set pricing on its first-and second-lien term loans at the wide end of revised talk and Tibco Software Inc. upsized its add-on term loan.

Also, Fortress Investment Group and CommScope Inc. released talk with launch, and Zodiac Pool Solutions LLC surfaced with new deal plans.

Post starts trading

Post Holdings’ $2.2 billion seven-year first-lien term loan B (Ba2/BB-) freed to trade on Wednesday, with levels quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the term loan is Libor plus 225 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

On Tuesday, the term loan was upsized from $2 billion, the spread was reduced from Libor plus 250 bps and the discount was tightened from 99.5.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Barclays, Nomura, Rabobank, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS Investment Bank, SunTrust Robinson Humphrey Inc., BMO Capital Markets, RBC Capital Markets, Goldman Sachs Bank USA, Co-Bank, PNC and HSBC Securities (USA) Inc. are leading the deal.

Proceeds will be used by the St. Louis-based cereal, food and nutrition company to help fund the £1.4 billion acquisition of Weetabix Ltd. from Bright Food Group and Baring Private Equity Asia and to fund tender offers for $800 million of 7¾% senior notes due 2024 and $400 million of 8% senior notes due 2025.

Alexander Mann frees up

Alexander Mann Solutions’ credit facilities broke as well, with the $265 million seven-year first-lien term loan seen at 99¼ bid, par offered, a market source said.

Pricing on the term loan is Libor plus 550 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the high end of the Libor plus 525 bps to 550 bps talk.

The company’s $305 million in credit facilities (B2/B+) also include a $40 million revolver.

Credit Suisse Securities (USA) LLC, ING Capital and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt and to fund a shareholder distribution.

Alexander Mann is a Berkshire, England-based talent acquisition and management business.

Hyperion hits secondary

Hyperion Insurance Group’s roughly $800 million repriced senior secured first-lien term loan B due April 29, 2022 began trading too, with levels quoted at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the loan is Libor plus 400 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Proceeds will be used to reprice an existing term loan from Libor plus 450 bps with a 1% Libor floor.

The company is also getting a €150 million senior secured first-lien term loan B due April 29, 2022 priced at Euribor plus 400 bps with a 0% floor and issued at par. This tranche also has 101 soft call protection for six months.

On Tuesday, the add-on euro loan was upsized from €100 million, pricing was cut from talk of Euribor plus 425 bps to 450 bps and the issue price firmed at the tight end of the 99.75 to par talk. The funds from the upsizing are being used to pay down the repriced U.S. term loan to the roughly $800 million amount from $854,390,863.

Hyperion lead banks

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Lloyds are leading Hyperion’s U.S. and euro term loans.

In addition to the U.S. loan paydown, the add-on euro term loan will be used to repay outstanding revolver borrowings, to fund near-term acquisitions and for general corporate purposes.

Closing is expected on May 30.

Hyperion is a London-based insurance intermediary group.

ION Media breaks

ION Media Networks’ $1,077,000,000 term loan B also freed up, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the 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.

During syndication, pricing on the term loan firmed at the wide end of the Libor plus 275 bps to 300 bps talk.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

ION is a West Palm Beach, Fla., television broadcast network.

Axalta reworks loan

Switching to the primary market, Axalta Coating Systems raised its seven-year covenant-light term loan to $2 billion from $450 million, lowered price talk to Libor plus 200 bps from a range of Libor plus 225 bps to 250 bps and moved the original issue discount talk to 99.875 from 99.75, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Commitments continue to be due at 3 p.m. ET on Friday, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to fund the acquisition of Valspar Corp.’s North American industrial wood coatings business for $420 million in cash and, because of the upsizing, to refinance an existing term loan due in 2023.

Axalta is a Philadelphia-based manufacturer, marketer and distributor of high-performance coatings systems.

Emerald tweaked

Emerald Expositions changed the original issue discount on its $565 million seven-year term loan to 99.75 from 99.5 and added a pricing step-down to Libor plus 275 bps when net leverage is 2.75 times, according to a market source.

Initial pricing on the term loan remained at Libor plus 300 bps with a 0% Libor floor and the loan still has 101 soft call protection for six months.

The company’s $715 million in credit facilities (B1/BB) also include $150 million revolver.

Recommitments were due at noon ET on Wednesday, the source added.

Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, RBC Capital Markets LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance an existing revolver and term loan.

Emerald Expositions is a San Juan Capistrano, Calif.-based operator of business-to-business trade shows.

Boyd updates terms

Boyd set pricing on its $730 million first-lien term loan (B2) at Libor plus 475 bps, the high end of the revised range of Libor plus 450 bps to 475 bps and up from initial talk in the range of Libor plus 375 bps to 400 bps, according to a market source. This tranche still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Additionally, the company firmed the spread on its $285 million second-lien term loan (Caa2) at Libor plus 875 bps, the high end of revised talk of Libor plus 850 bps to 875 bps, and up from initial talk of Libor plus 800 bps, and revised the hard call protection to 103 in year one, 102 in year two and 101 in year three, from 102 in year one and 101 in year two, the source said. This loan still has a 1% Libor floor and a discount of 98.

Also, the MFN sunset and the asset sale proceed step-down were eliminated, the excess cash flow sweep was increased to 75%, the free and clear accordion was reduced to $120 million from $160 million with the grower eliminated, the first-and second-lien incremental incurrence ratios were decreased by 0.25 times, to 4.25 times and 6 times, respectively, the available amount was reduced to $35 million, and restricted payments and investment baskets were tightened.

Previously in syndication, the discount on the first-lien term loan widened from 99.5, and the discount on the second-lien term loan was revised from 99.

Boyd getting revolver

Boyd’s $1.09 billion in credit facilities, which allocated on Wednesday, also provide for a $75 million revolver.

Antares Capital, Societe Generale and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the acquisition of Aavid Thermalloy, a Laconia, N.H.-based design engineering and manufacturing corporation focused on thermal management solutions.

Boyd, a Genstar Capital portfolio company, is a Modesto, Calif.-based designer and manufacturer of highly engineered, specialty material-based thermal management and environmental sealing solutions.

Tibco lifts loan size

Tibco Software raised its add-on term loan (B1) to $225 million from $150 million and left pricing at Libor plus 450 bps with a 1% Libor floor and a par issue price, according to a market source.

Allocations were in the process of going out late in the day on Wednesday, the source said.

KKR Capital Markets and Jefferies Finance LLC are leading the deal that will be used for general corporate purposes.

Tibco is a Palo Alto, Calif.-based infrastructure and business intelligence software company.

Fortress reveals guidance

In more primary news, Fortress Investment Group held its bank meeting on Wednesday, launching its $1.4 billion five-year covenant-light term loan B at talk of Libor plus 325 bps with a 0% Libor floor and an original issue discount of 99.5, a market source remarked.

The term loan B has 101 soft call protection for six months.

The company’s $1.49 billion credit facilities (Baa3/NA/BB+) also include a $90 million 4.5-year revolver.

Commitments are due on June 1.

Deutsche Bank Securities Inc. is leading the deal that will be used with $1,775,000,000 in equity from Softbank Group Corp. and cash from Fortress’ balance sheet to fund the acquisition of Fortress by Softbank for about $3.3 billion in cash.

Closing is expected in the second half of this year subject to regulatory approvals and other customary conditions.

Fortress is a New York-based alternative asset management firm.

CommScope sets talk

CommScope came out with talk of Libor plus 200 bps to 225 bps with no Libor floor, a par issue price and 101 soft call protection for six months on its $1,096,000,000 term loan B that launched with a morning lender call, a market source said.

Commitments are due on May 23, the source added.

Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan B from Libor plus 250 bps with a 0.75% Libor floor.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

Zodiac readies deal

Zodiac Pool Solutions set a lender call for 1 p.m. ET on Thursday to launch a $519 million covenant-light first-lien term loan (B3/B) due Dec. 20, 2023 talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 24, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing first-lien term loan from Libor plus 450 bps with a 1% Libor floor.

Zodiac Pool is a Paris-based manufacturer of residential pool equipment and automation solutions.

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