TransDigm, Microsemi, Gates, Packers, 84, Insight, Beasley, Vistra, Blucora, Melissa break

By Sara Rosenberg

New York, Nov. 17 – A number of deals freed up for trading during Friday’s market hours, including TransDigm Inc., Microsemi Corp., Gates Global LLC, Packers Sanitation Services Inc. and 84 Lumber Co.

Also, Insight Global (IG Investments Holdings LLC) firmed the spread on its term loan at the high end of guidance, and Beasley Mezzanine Holdings LLC set pricing on its credit facilities at the low side of talk, and then these deals broke for trading too.

In addition, Vistra Group set the split on its add-on U.S. and euro first-lien term loan, Blucora Inc. firmed the spread on its term loan at the tight side of guidance and Melissa & Doug (MND Holdings III Corp.) finalized pricing on its term loan at the low end of talk, before making their way into the secondary market.

Furthermore, ESH Hospitality Inc. finalized pricing on its term loan at the high end of talk and added a step-down, and Transcendia firmed the spread on its term loan at the wide side of guidance and extended the call protection.

TransDigm starts trading

TransDigm’s term debt made its way into the secondary market, with the fungible $798 million incremental term loan F due June 2023 and repriced $2,857,000,000 term loan F due June 2023 quoted at par bid, par ¼ offered and the repriced $1,503,000,000 term loan E due May 2022 quoted at par 1/8 bid, par 3/8 offered, according to a market source.

Pricing on the term loans is Libor plus 275 basis points with a 0% Libor floor. The incremental loan was sold at an original issue discount of 99.875, and the repriced loans were issued at par. All of the term debt includes 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal (Ba2/B+).

Proceeds from the incremental loan will be used to refinance a term loan D, and the term loan F and term loan E repricings will take the existing loans down from Libor plus 300 bps with a 0.75% Libor floor.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for use on commercial and military aircraft.

Microsemi hits secondary

Microsemi’s $794.7 million covenant-light term loan due Jan. 15, 2023 began trading too, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 200 bps with a 0% 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 down from Libor plus 225 bps with a 0% Libor floor and amend the existing credit facilities.

Closing is expected on Tuesday.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor solutions.

Gates frees up

Gates Global’s $1,734,000,000 covenant-light term loan B due March 2024 broke as well, with levels seen at par 3/8 bid, par 7/8 offered, a market source said.

Pricing on the term loan is Libor plus 300 bps with a 25 bps initial public offering step-down and a 1% Libor floor. The loan was issued at par and has 101 soft call protection for six months.

The company is also getting a €655 million covenant-light term loan B due March 2024 priced at Euribor plus 325 bps with a 25 bps initial public offering step-down and a 0% floor. This tranche was issued at par and has 101 soft call protection for six months as well.

Credit Suisse is the left lead on the deal that will be used to reprice an existing U.S. term loan from Libor plus 325 bps with a 1% Libor floor and an existing euro term loan from Euribor plus 350 bps with a 0% floor.

Gates is a Denver-based aftermarket-focused manufacturer of power transmission belts and fluid power products.

Packers levels emerge

Packers Sanitation Services’ credit facilities broke during the session, with the $600 million seven-year first-lien term loan quoted at par ¼ bid, par 5/8 offered, a market source said.

Pricing on the term loan is Libor plus 325 bps with a 25 bps step-down at 4.5 times net first-lien leverage and a 1% Libor floor. The loan was issued at par and has 101 soft call protection for six months.

On Thursday, the term loan was upsized from $575 million, the spread finalized at the low end of the Libor plus 325 bps to 350 bps talk and the issue price was tightened from 99.5.

The company’s $650 million of credit facilities also include a $50 million revolver.

Jefferies LLC and Nomura are leading the deal that will be used with $275 million of privately placed senior unsecured notes, downsized recently from $280 million, to recapitalize the structure of the company and fund a distribution to shareholders, which was increased due to the term loan upsizing.

Packers Sanitation is a Kieler, Wis.-based provider of mission-critical outsourced cleaning and sanitation services to the food processing industry.

84 Lumber frees up

84 Lumber’s $343.4 million covenant-light term loan B due Oct. 25, 2023 was another deal to surface in the secondary, and levels were seen at 101 bid, 101½ offered, a market source said.

Pricing on the loan is Libor plus 525 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for one year.

On Thursday, pricing on the loan was lifted from from Libor plus 475 bps and the call protection was extended from six months.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B from Libor plus 575 bps with a 1% Libor floor.

84 Lumber is an Eighty Four, Pa.-based supplier of building materials, manufactured components and services for single and multi-family residences and commercial buildings.

Insight sets spread, trades

Insight Global firmed pricing on its $899 million first-lien term loan (B1/B) due October 2021 at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months intact, according to a market source.

After terms finalized, the loan freed to trade and levels were quoted at par ¼ bid, par ½ offered, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

Beasley firms, breaks

Beasley Mezzanine, a subsidiary of Beasley Broadcast Group Inc., finalized pricing on its $20 million five-year revolver and $225 million six-year first-lien term loan B at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, a market source remarked.

The revolver still has a 0% Libor floor, an original issue discount of 99.5 and a 50 bps unused fee, stepping down to 37.5 bps at 3.5 times first-lien net leverage, and the term loan still has a 1% Libor floor, a discount of 99.5 and 101 soft call protection for six months.

With terms set, the debt began trading and the term loan was quoted at par ¼ bid, 101 offered, another source added.

Guggenheim and U.S. Bank NA are leading the $245 million of senior secured credit facilities (B1/BB-) that will be used to refinance existing bank debt.

Expected pro forma gross leverage is 4 times and expected pro forma net leverage is 3.8 times.

Beasley is a Naples, Fla.-based large- and mid-size market radio broadcaster.

Vistra updated

Vistra Group finalized tranching on its $80 million equivalent add-on first-lien U.S. and euro term loan (B2/B), with $35 million of the debt a U.S. piece sold at discount of 99.75 and $45 million equivalent of the debt a euro piece issued at par, according to a market source.

Pricing on the U.S. add-on term loan and on a $252 million repriced first-lien term loan (B2/B) is Libor plus 325 bps with a 1% Libor floor, and pricing on the euro add-on term loan and on a €385 million repriced first-lien term loan (B2/B) is Euribor plus 325 bps with a 0% floor. All of the first-lien term loans include 101 soft call protection for six months.

On Thursday, pricing on the euro first-lien term loan debt was lowered from Euribor plus 350 bps and the issue price for the euro add-on was revised from 99.75.

The company is also getting a $36 million repriced second-lien term loan (B3/CCC+) and a €29 million repriced second-lien term loan (B3/CCC+) priced at Libor/Euribor plus 725 bps, with the U.S. tranche having a 1% Libor floor and the euro tranche having a 0% floor. These tranches are non-callable for one year.

All of the repricings were offered with a 10 bps amendment fee.

Vistra starts trading

Vistra Group’s U.S. first-lien term loan debt broke for trading during the session and levels were quoted at par bid, 101 offered, a trader added.

Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are leading the debt.

The add-on term loan will be used to prepay a portion of the existing second-lien term loan debt resulting in the $36 million and €29 million tranche sizes. The repricings will take the U.S. first-lien term loan down from Libor plus 375 bps with a 1% Libor floor, revise euro first-lien term loan pricing from Euribor plus 300 bps with a 1% floor, and take the second-lien term loans down from Libor/Euribor plus 800 bps with a 1% Libor floor.

Closing is expected during the week of Nov. 20.

Vistra Group is a provider of company formations, trust, corporate and fund administration services.

Blucora sets terms, breaks

Blucora Inc. firmed pricing on its $350 million covenant-light first-lien term loan (B1/BB-) due May 2024 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, according to a market source.

The term loan still has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

The term loan freed to trade in the afternoon at par ¼ bid, par ¾ offered, a trader added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 375 bps with a 1% Libor floor.

Blucora is a Bellevue, Wash.-based technology-enabled financial solutions provider focused on tax preparation and financial advisory services.

Melissa firms, tops par

Melissa & Doug set pricing on its $259 million covenant-light first-lien term loan due June 2024 at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and left the 1% Libor floor and a par issue price unchanged, a market source remarked.

The loan then broke for trading at par ¼ bid, par ¾ offered, a trader added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Melissa & Doug is a specialty toy brand with an educational focus.

ESH finalizes pricing

ESH Hospitality, a subsidiary of Extended Stay America Inc., set pricing on its $1,287,000,000 covenant-light term loan B due August 2023 at Libor plus 225 bps, the high end of the Libor plus 200 bps to 225 bps talk, and added a step-down to Libor plus 200 bps when corporate ratings are Ba3/BB- with stable outlooks, a market source said.

The term loan still has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Barclays, Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0% Libor floor.

Closing is expected on Tuesday.

Extended Stay is a Charlotte, N.C.-based owner/operator of company-branded hotels.

Transcendia tweaks deal

Transcendia set pricing on its $295 million first-lien senior secured term loan B (B2/B) due May 2024 at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the term loan has a 1% Libor floor and a par issue price.

Goldman Sachs Bank USA and KeyBanc Capital Markets LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 1% Libor floor.

Closing is expected during the week of Nov. 20, the source added.

Transcendia is a Franklin Park, Ill.-based provider of custom engineered specialty films materials across a broad range of end-markets.

Go Daddy allocates

In other news, Go Daddy Operating Co. LLC’s $2,489,000,000 senior secured covenant-light term loan B due February 2024 allocated on Friday, a market source remarked.

The term loan is priced at Libor plus 225 bps with a step-down to Libor plus 200 bps at a Ba2 corporate rating from Moody’s and a 0% Libor floor. The loan was issued at par and has 101 soft call protection for six months.

On Thursday, pricing on the term loan was increased from Libor plus 200 bps, the step-down was added and the issue price firmed at the tight end of the 99.875 to par talk.

Deutsche Bank Securities Inc. and KKR Capital Markets are the joint lead arrangers on the deal and joint bookrunners with Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Societe Generale. Barclays is the administrative agent.

Proceeds will be used to reprice an existing term loan down from Libor plus 250 bps with a 0% Libor floor.

Closing is expected on Wednesday, the source added.

Go Daddy is Scottsdale, Ariz.-based provider of web hosting and domain names.

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