SuperValu, Virtu, Gypsum, High Liner break; Fortress Investment, Market Track tweak deals

By Sara Rosenberg

New York, June 2 – SuperValu Inc. firmed the spread on its term loan B at the low side of guidance and tightened the original issue discount before freeing up for trading on Friday, and deals from Virtu Financial Inc. (VFH Parent LLC), Gypsum Management and Supply Inc. (GYP Holdings III Corp.) and High Liner Foods Inc. hit the secondary market as well.

In more happenings, Fortress Investment Group LLC added a pricing grid to its term loan B, and Market Track widened the spread on its first-lien term loan.

Also, Grocery Outlet (GOBP Holdings Inc.) and Masergy Communications Inc. released price talk with launch, and Surgery Center Holdings Inc., USIC Holdings Inc. and Six Flags Entertainment Corp. joined the near-term primary calendar.

SuperValu updated

SuperValu finalized pricing on its $840 million seven-year covenant-light senior secured term loan B (Ba3/BB-/BB) at Libor plus 350 basis points, the low end of the Libor plus 350 bps to 375 bps talk, and moved the original issue discount to 99.75 from 99.5, according to a market source.

In addition, the MFN sunset was removed from the term loan and a springing maturity was added to 91 days prior to the maturity date of each of the company’s 2021 and 2022 notes to the extent those notes are not refinanced or repaid, the source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The term loan is split between a $525 million funded tranche and a $315 million delayed-draw tranche.

There is a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

Goldman Sachs Bank USA, RBC Capital Markets, Barclays, Credit Suisse Securities (USA) LLC, BMO Capital Markets and Citigroup Global Markets Inc. are leading the deal.

SuperValu frees up

Recommitments from SuperValu’s term loan B were due at noon ET on Friday, and then the debt made its way into the secondary market, with levels quoted at par bid, 100¾ offered, the source added.

Proceeds will be used to refinance an existing $524 million senior secured term loan B due 2019 and to help fund the acquisition of Unified Grocers Inc. for about $114 million in cash, plus the assumption and repayment of Unified Grocers’ net debt of about $261 million at closing.

Closing on the term loan is expected on Thursday.

SuperValu is an Eden Prairie, Minn.-based supermarket operator and wholesale grocery distributor. Unified Grocers is a retailer-owned wholesale grocery cooperative.

Virtu hits secondary

Virtu Financial’s $1.15 billion 4.5-year senior secured term loan B also broke, with levels seen at 100¾ bid, 101¼ offered, a trader said.

Pricing on the loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $825 million as the company’s bond offering was downsized to $500 million from $825 million, pricing was set at the low end of the Libor plus 375 bps to 400 bps talk, the discount was tightened from revised talk of 99.75 and initial talk of 99.5, and amortization was reduced to 7.5% from 10%.

Virtu buying KCG

Proceeds from Virtu’s term loan, notes, and the sale of $750 million of common stock will be used to fund the acquisition of KCG Holdings Inc. for $20.00 per KCG share, or a total of about $1.4 billion, and to refinance existing debt at Virtu and KCG.

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

Closing on the term loan is expected in late June.

Virtu is a New York-based technology-enabled market maker and liquidity provider to the financial markets. KCG is a New York-based independent securities firm.

Gypsum begins trading

Gypsum Management and Supply’s $578 million covenant-light first-lien term loan due April 1, 2023 broke for trading too, with levels seen at 100¼ bid, 100 5/8 offered, according to a market source.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

On Thursday, the term loan was upsized from $528 million and pricing firmed at the low end of the Libor plus 300 bps to 325 bps talk.

Credit Suisse Securities is leading the deal that will be used to reprice an existing $478 million term loan from Libor plus 350 bps with a 1% Libor floor and extend the maturity from 2021 and to repay the company’s ABL borrowings.

Gypsum Management is a Tucker, Ga.-based distributor of wallboard, acoustical products and other specialty building materials.

High Liner breaks

High Liner Foods’ fungible $70 million add-on term loan B due April 24, 2021 (B2/B+) freed up as well, with levels quoted at 100¼ bid, 101 offered, a trader said.

Pricing on the add-on term loan B is Libor plus 325 bps with a 1% Libor floor, in line with existing term loan B pricing, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

RBC Capital Markets is leading the deal that will be used to help fund the acquisition of Rubicon Resources LLC. However, initially, the company will draw on its ABL facility to fund the acquisition.

Including the add-on, the term loan B will total $338 million.

High Liner is a Lunenburg, N.S.-based processor and marketer of frozen seafood. Rubicon is a Culver City, Calif.-based seafood company.

World Triathlon steady

Also in trading, World Triathlon Corp.’s $30 million incremental first-lien term loan due June 2021 was quoted at par bid, 100¼ offered, in line with where it broke for trading late Thursday, a market source remarked.

Pricing on the incremental loan is Libor plus 425 bps with a 1% Libor floor, and it was issued at par.

UBS Investment Bank is leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

World Triathlon is an owner and operator of Ironman triathlon events.

Fortress adds grid

Back in the primary market, Fortress Investment Group added a pricing grid to its $1.4 billion five-year covenant-light term loan B that calls for a step-down to Libor plus 250 bps at 3 times consolidated leverage and a step-down to Libor plus 225 bps at 2 times consolidated leverage, according to a market source.

Opening pricing on the term loan B is still Libor plus 275 bps with a 0% Libor floor and an original issue discount of 99.75.

The term loan has 101 soft call protection for six months and a ticking fee of half the spread starting on day 31, which is when the loan will fund into escrow, and the full spread from day 91 and thereafter.

Earlier in syndication, pricing on the term loan B was reduced from Libor plus 325 bps, the discount was tightened from 99.5, and the MFN sunset was eliminated.

Recommitments were due from lenders on Friday, the source said.

Fortress getting revolver

Along with the term loan B, Fortress Investment Group’s $1.49 billion of credit facilities (Baa3/BB-/BB+) include a $90 million 4.5-year revolver.

The credit agreement is expected to be posted on Monday, comments are due on Wednesday and allocations are targeted for Thursday.

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.

Market Track ups spread

Market Track raised pricing on its $225 million seven-year covenant-light first-lien term loan (B2) to Libor plus 425 bps from talk of Libor plus 375 bps to 400 bps, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source remarked.

The company’s $350 million in credit facilities also include a $30 million revolver (B2) and a $95 million privately placed second-lien term loan.

Allocations went out on Friday and closing is expected on Monday, the source added.

Antares Capital and Golub Capital are leading the deal that will be used to help fund the buyout of the company by Vista Equity Partners.

Chicago-based Market Track is a subscription-based provider of promotional and brand advertising data, analysis and insight services to advertising agencies, retailers and consumer product companies.

Grocery Outlet sets talk

Grocery Outlet held its lender call on Friday, launching its $528,977,159 senior secured covenant-light term loan B due Oct. 21, 2021 at talk of 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.

Consents/commitments are due at noon ET on Thursday, the source said.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities and Jefferies LLC are leading the deal that will be used to reprice an existing term loan B from Libor plus 400 bps with a 1% Libor floor.

Grocery Outlet is an Emeryville, Calif.-based grocery store operator.

Masergy holds call

Masergy Communications launched with a lender call in the morning a repricing of its $346 million first-lien term loan talked at Libor plus 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due on Thursday, the source added.

Jefferies is leading the deal that will take pricing on the term loan down from Libor plus 450 bps with a 1% Libor floor.

Masergy is a Plano, Texas-based provider of hybrid networking, managed security and cloud communications solutions.

Surgery Center timing

Also in the primary market, Surgery Center surfaced with plans to hold a bank meeting on Wednesday to launch its previously announced $1.37 billion of senior secured credit facilities, according to a market source.

The facilities consist of a $75 million five-year revolver and a $1.29 billion seven-year senior secured covenant-light term loan.

Included in the term loan is 101 soft call protection for six months, the source said.

Jefferies and KKR Capital Markets are leading the bank debt that will be used with $335 million of bonds to fund the acquisition of National Surgical Healthcare Inc. from Irving Place Capital for about $760 million and to refinance an existing term loan.

As part of the transaction, Bain Capital Private Equity will acquire H.I.G. Capital’s existing equity stake in Surgery Partners, and preferred equity coming from Bain will be around $295 million.

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

Surgery Center is a Nashville-based healthcare services company. National Surgical is a Chicago-based owner and operator of surgical facilities in partnership with local physicians.

USIC readies deal

USIC Holdings set a lender call for 1:30 p.m. ET on Monday to launch a $40 million incremental first-lien term loan due 2023 and a repricing of its existing $633 million first-lien term loan due 2023, a market source remarked.

Goldman Sachs Bank USA and Morgan Stanley Senior Funding are leading the deal (B).

The incremental loan will be used to add cash to the balance sheet, and the repricing will take the existing term loan down from Libor plus 375 bps with a 1% Libor floor.

USIC is an Indianapolis-based provider of underground utility locating services.

Six Flags on deck

Six Flags scheduled a lender call for Monday to launch a $544,750,000 term loan B talked at Libor plus 200 bps with no Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 3 p.m. ET on June 9, the source said.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 225 bps with no Libor floor.

Six Flags is a Grand Prairie, Texas-based regional theme park company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.