USIC Holdings, Ocwen Financial, Zebra Technologies, Albertsons, EVO deal updates surface

By Sara Rosenberg

New York, Dec. 1 – In the primary market on Thursday, USIC Holdings Inc. modified pricing and the issue price on its first-lien term loan, and Ocwen Financial Corp. tightened the spread and original issue discount on its term loan B.

Also, Zebra Technologies Corp. firmed the spread on its term loan B at the low end of talk, Albertsons Cos. LLC reworked pricing on its term loans, and EVO Payments International lifted the spread on its first-lien term loan and extended the call protection.

In addition, Wilsonart LLC and MKS Instruments Inc. disclosed price talk with launch, and Q Holding Co. came out with original issue discount guidance on its incremental term loan B.

Furthermore, Syncsort Inc. released timing and structure on its new credit facility, and Global Eagle Entertainment Inc., First American Payments Systems and PSAV (AVSC Holding Corp.) surfaced with new deal plans.

USIC changes emerge

USIC Holdings on Thursday reduced the spread on its $635 million seven-year covenant-light first-lien term loan (B2/B) to Libor plus 375 basis points from Libor plus 400 bps, moved the original issue discount to 99.75 from 99.5 and removed the MFN sunset provision, according to a market source.

The first-lien term loan still has a 1% Libor floor and 101 soft call protection for six months.

Recommitments due at the close of business on Thursday and allocations are targeted for Friday, the source said.

The company’s $885 million credit facility also includes an $85 million revolver (B2/B) and a $165 million privately placed second-lien term loan (Caa2/CCC+).

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and Antares Capital are leading the deal that will be used to fund the recapitalization of the company’s balance sheet.

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

Ocwen flexes lower

Ocwen Financial lowered pricing on its $335 million four-year term loan B (B2) to Libor plus 500 bps from Libor plus 575 bps and changed the original issue discount to 98 from 97, a market source said.

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

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

Barclays, J.P. Morgan Securities LLC, Nomura and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance an existing term loan, pay fees and expenses, and for general corporate purposes.

Ocwen is a West Palm Beach, Fla.-based non-bank mortgage servicer and originator.

Zebra sets spread

Zebra Technologies firmed pricing on its $1,723,000,000 senior secured covenant-light term loan B due Oct. 27, 2021 at Libor plus 250 bps, the tight end of the Libor plus 250 bps to 275 bps talk, a market source said.

The loan still has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

Commitments were due at 4 p.m. ET on Thursday.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 0.75% Libor floor.

Zebra is a Lincolnshire, Ill.-based provider of marking and printing technologies.

Albertsons adjusts pricing

Albertsons revised spreads on its $3,271,000,000 term loan B-4 due August 2021 to Libor plus 300 bps from Libor plus 275 bps and on its $1,142,000,000 term loan B-5 due December 2022 and $1.6 billion term loan B-6 due June 2023 to Libor plus 325 bps from Libor plus 300 bps, according to a market source.

All of the term loans still have a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Thursday, the source said.

A Credit Suisse Securities (USA) LLC-led group is leading the $6,013,000,000 of term loans (Ba3/BB) that will be used to reprice the existing term loan B-4 from Libor plus 350 bps with a 1% Libor floor, and the existing term loan B-5 and term loan B-6 from Libor plus 375 bps with a 1% Libor floor.

Albertsons is a Boise, Idaho-based food and drug retailer.

EVO modified

EVO Payments lifted pricing on its $590 million covenant-light first-lien term loan (B1/B) to Libor plus 500 bps from talk of Libor plus 450 bps to 475 bps and pushed out the 101 soft call protection to one year from six months, a source said.

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

The company’s $845 million credit facility also includes a $100 million revolver (B1/B) and a $155 million covenant-light second-lien term loan (Caa1/B-).

SunTrust Robinson Humphrey Inc. is the left lead on the deal that will be used to refinance existing debt and to fund acquisitions.

Secured leverage will be around 5.5 times.

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

Wilsonart sets guidance

Also in the primary market, Wilsonart held its bank meeting on Thursday, launching its $1.2 billion seven-year covenant-light term loan (B2/B+) with price talk of Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

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

Commitments are due at noon ET on Dec. 12, the source said.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used to refinance existing term loans and fund a distribution to shareholders.

Wilsonart is a Temple, Texas-based engineered surfaces company.

MKS holds call

MKS Instruments launched on its lender call its $628 million covenant-light term loan B due April 29, 2023 with talk of Libor plus 275 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Dec. 8, the source added.

Barclays is leading the deal that will be used to reprice the company’s existing term loan B from Libor plus 350 bps with a 0.75% Libor floor.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes.

Q Holding OID talk

Q Holding released original issue discount talk of 99 on its $113 million incremental term loan B (B3) due December 2021 that launched with a meeting during the session, a market source remarked.

As previously reported, pricing on the incremental loan is Libor plus 500 bps with a 1% Libor floor.

The incremental loan has 101 soft call protection for six months, the source continued.

Commitments are due on Dec. 15.

RBC Capital Markets LLC is leading the deal that will be used to fund the acquisition of Degania Silicone Ltd., a manufacturer of medical catheters.

Including the incremental loan, the term loan B will total $283 million.

Q Holding is a Twinsburg, Ohio-based manufacturer of highly engineered precision-molded elastomeric components used in a broad range of medical, pharmaceutical and electrical management applications.

Syncsort on deck

Syncsort scheduled a bank meeting for 10 a.m. ET in New York on Friday to launch its proposed credit facility, which is now known to be sized at $395 million credit facility, according to a market source.

The facility is split between a $35 million revolver, a $280 million six-year first-lien term loan with a 1% Libor floor and 101 soft call protection for six months, and an $80 million seven-year second-lien term loan with a 1% Libor floor and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Dec. 16.

Credit Suisse Securities (USA) LLC, Antares Capital and SunTrust Robinson Humphrey are leading the deal that will be used to fund the acquisition of Trillium Software from Harte Hanks Inc. and refinance existing debt.

Closing is subject to regulatory approvals and other customary conditions.

Syncsort, a Clearlake Capital Group portfolio company, is a Woodcliff Lake, N.J.-based provider of enterprise software and data solutions. Trillium is a Burlington, Mass.-based provider of data quality solutions.

Global Eagle readies deal

Global Eagle Entertainment set a lender call for 11 a.m. ET on Wednesday to launch a $670 million senior secured credit facility, sources said.

The facility consists of an $85 million revolver (BB-), a $460 million first-lien term loan (BB-) and a $125 million second-lien term loan (B-), sources added.

Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and additional bookrunners are leading the deal that will be used to refinance a roughly $265 million first-lien term loan, a roughly $92 million second-lien term loan and about $39 million of revolver borrowings at Emerging Markets Communications LLC and for working capital, capital expenditures, acquisitions, investments and general corporate purposes.

Global Eagle is a Marina Del Rey, Calif.-based provider of satellite-based connectivity and media.

First American coming soon

First American Payments Systems emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Friday to launch a $370 million credit facility, according to a market source.

The facility consists of a $40 million revolver (B+), a $230 million first-lien term loan (B+) and a $100 million second-lien term loan (CCC+), the source said.

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

First American Payment Systems is a Fort Worth-based payments platform serving small- and medium-sized businesses.

PSAV joins calendar

PSAV scheduled a lender call for 3:30 p.m. ET on Monday to launch an $80 million add-on senior secured term loan B, a market source remarked.

Goldman Sachs Bank USA, Barclays, Macquarie Capital (USA) Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund a distribution to equity holders.

PSAV is a Long Beach, Calif.-based event technology provider.

OWIC’s emerge

Moving to the secondary market, a $354 million Offers Wanted In Competition was announced, with offers due by 11 a.m. ET on Friday, and a $57 million OWIC surfaced, with offers due by noon ET on Friday, according to traders.

Some names in the $354 million OWIC are Aecom Technology Corp., Avago Technologies, Cavium Inc., Communications Sales & Leasing Inc., Entercom Radio LLC, Generac Power Systems Inc., Novelis Inc., Realogy Group LLC, Solera LLC and XPO Logistics Inc. The portfolio includes about 70 issuers.

The $57 million OWIC is comprised of debt from six issuers – Charter Communications, Delta Air Lines Inc., Delos Finance SARL, Flying Fortress Inc., Hilton Worldwide Finance LLC and Nielsen Finance LLC, trader added.

BWIC announced

A $75 million Bid Wanted In Competition surfaced in the morning, with bids due at noon ET on Friday, a trader remarked.

Some of the names in the portfolio are American Airlines Inc., Bass Pro Group LLC, Charter Communications Operating LLC, Fairway Group Acquisition Co., Ineos US Finance LLC, Ocwen Loan Servicing LLC, Sabre Inc., Transdigm Inc., Valeant Pharmaceuticals International Inc. and Weight Watchers International Inc.

There are about 69 issuers in the BWIC, the trader added.

RevSpring closes

In other news, the buyout of RevSpring, a Wixom, Mich.-based billing and consumer communication platform, by GTCR has been completed, according to a news release.

To help fund the transaction, RevSpring got a new $310 million credit facility, consisting of a $20 million revolver (B2/B), a $207 million seven-year first-lien term loan (B2/B) and an $83 million pre-placed second-lien term loan (Caa2/CCC).

Pricing on the first-lien term loan is Libor plus 550 bps with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 soft call protection for six months.

During syndication, pricing on the first-lien term loan was increased from talk of Libor plus 475 bps to 500 bps, and the discount was revised from 99.

Jefferies Finance LLC and Madison Capital led the deal.

Pro forma first-lien leverage is 4.5 times, and second-lien leverage is 6.3 times.

G-III completes deal

G-III Apparel Group Ltd. closed on its acquisition of Donna Karan International Inc. from LVMH Moet Hennessy Louis Vuitton for $650 million, a news release said.

To help fund the transaction, G-III got a new $1 billion senior secured credit facility, split between a $650 million five-year ABL revolver and a $350 million six-year term loan B (B1/BB+).

Pricing on the term B is Libor plus 525 bps with a 1% Libor floor, and it was sold at a discount of 98. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan B was lifted from talk of Libor plus 450 bps to 475 bps, the discount widened from 99, the call protection was extended from six months, amortization was increased to 2.5% per annum from 1%, the 12-month MFN sunset was removed, the incremental allowance was reduced, the excess cash flow sweep was increased, and the first-lien net leverage covenant was revised.

Barclays and J.P. Morgan Securities LLC were the joint lead arrangers on the term loan, and Barclays, JPMorgan and Bank of America Merrill Lynch were the joint lead arrangers on the revolver.

G-III is a New York-based designer, manufacturer and marketer of branded apparel and accessories.

Tessera wraps acquisition

Tessera Technologies Inc. completed its acquisition of DTS Inc. in an all-cash transaction valued at about $850 million, according to a news release.

To help fund the acquisition Tessera got a new $600 million seven-year senior secured covenant-light term loan B (Ba3/BB-) priced at Libor plus 325 bps with a step-down to Libor plus 300 bps at 1.5 times leverage and a 0.75% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for one year.

During syndication, pricing on the term loan firmed at the high end of the Libor plus 300 bps to 325 bps talk, the step-down was added, the discount was set at the wide end of the 99 to 99.5 guidance and the call protection was extended from six months.

RBC Capital Markets and BMO Capital Markets led the deal.

Tessera is a San Jose, Calif.-based licenser of technologies and intellectual property for mobile computing and communications. DTS is a Calabasas, Calif.-based audio technology company.

Envision/Amsurg merge

Envision Healthcare Corp. closed on its merger with Amsurg Corp. in an all-stock transaction at a fixed exchange ratio of 0.334 Amsurg shares per Envision share, a news release disclosed.

To refinance existing credit facilities at Envision and Amsurg, to repay Amsurg’s 2020 notes and for working capital, capital expenditures and other general corporate purposes, Envision got a new $3,495,000,000 term loan B.

Pricing on the term loan B is Libor plus 300 bps with a 0.75% Libor floor, and it was issued at a discount of 99. The debt has 101 soft call protection for one year.

During syndication, the term loan B was upsized from $3,295,000,000 as the company downsized its senior unsecured notes to $550 million from $750 million, pricing firmed at the high end of the Libor plus 275 bps to 300 bps talk, the discount widened from 99.5 and the call protection was extended from six months.

J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC led the deal.

Envision is a healthcare company with co-headquarters in Nashville, Tenn., and Greenwood Village, Colo.

Genesys closes

Genesys completed its acquisition of Interactive Intelligence Group Inc. for $60.50 per share in cash, according to an 8-K filed with the Securities and Exchange Commission.

To help fund the transaction, Genesys got a new $2.25 billion equivalent credit facility (B-) that includes a $150 million five-year revolver, a $1,558,000,000 seven-year covenant-light term loan B and a €520 million seven-year covenant-light euro term loan B.

Pricing on the term loans is Libor/Euribor plus 525 bps with a 1% floor, and they have 101 soft call protection for one year. The U.S term loan was sold at an original issue discount of 98.5 and the euro loan was issued at 99.

Genesys lead banks

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Citigroup Global Markets Inc. and RBC Capital Markets LLC led Genesys’ credit facility.

During syndication, pricing on the term loans was increased from talk of Libor/Euribor plus 475 bps to 500 bps, the discount on the term loan firmed at the midpoint of revised talk of 98 to 99 and wide of initial talk of 99 to 99.5, the discount on the euro term loan finalized at the tight end of revised talk of 98 to 99 and the wide end of initial talk of 99 to 99.5, the call protection was extended from six months, the MFN sunset was removed, and baskets were modified.

Genesys is a Daly City, Calif.-based provider of omnichannel customer experience and contact center solutions. Interactive Intelligence is an Indianapolis-based provider of cloud and on-premise solutions for customer engagement, communications and collaboration.

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