HelpSystems frees up; Sabre sets talk; Rocket, MetroNet, Global Healthcare, Ascensus on deck

By Sara Rosenberg

New York, May 11 – HelpSystems’ bank debt made its way into the secondary market on Tuesday afternoon, with the incremental first-lien term loan bid in line with its issue price and the second-lien term loan quoted above par.

Meanwhile, in the primary market, Sabre Industries Inc. released price talk on its first-lien term loan with launch, and Rocket Software Inc., MetroNet, Global Healthcare Exchange LLC and Ascensus joined this week’s primary calendar.

HelpSystems breaks

HelpSystems’ new loans freed to trade on Tuesday, with the fungible $235 million incremental first-lien term loan (B2/B-) quoted at par bid, par ½ offered and the $355 million second-lien term loan quoted at par ½ bid, according to a market source.

Pricing on the incremental first-lien term loan is Libor plus 475 basis points with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection through June 22.

The second-lien term loan, of which $65 million is an incremental tranche and $290 million is a repricing of an existing second-lien term loan, is priced at Libor plus 675 bps with a 0.75% Libor floor and was issued at par. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the incremental first-lien term loan was upsized from $170 million, the incremental second-lien term loan was downsized from $130 million and the repricing of the existing second-lien term loan was added to the transaction. Also, the issue price on the second-lien debt was tightened from talk in the range of 99.5 to 99.75 and initial talk on the incremental piece at launch of just 99.5. And, the incremental second-lien loan was revised to a fungible tranche from non-fungible.

HelpSystems leads

Golub Capital and Stone Point Capital are the joint lead arrangers on HelpSystems’ term loans. Jefferies is the agent on the first-lien debt and Golub is taking over as the agent on the second-lien debt.

Proceeds from the incremental term loans will be used to fund two tuck-in acquisitions and a minority recapitalization, and the second-lien term loan repricing will take pricing down from Libor plus 800 bps with a 1% Libor floor.

Pro forma for the transaction, the first-lien term loan will total $1.366 billion.

HelpSystems, a portfolio company of TA Associates, HGGC and Charlesbank, is an Eden Prairie, Minn.-based provider of cybersecurity and automation software.

Sabre reveals guidance

Moving to the primary market, Sabre Industries held its lender call on Tuesday morning and announced talk on its $875 million seven-year first-lien term loan (B1/B) at Libor plus 375 bps with a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source remarked.

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

The company is also getting a $345 million privately placed second-lien term loan.

Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the debt that will be used to help fund the buyout of the company by Blackstone from The Jordan Co.

Closing is expected this quarter, subject to customary conditions.

Sabre is an Alvarado, Tex.-based designer and manufacturer of highly engineered, mission-critical overhead steel poles, towers, battery storage solutions, and related services for electrical utility and telecom end markets.

Rocket readies loan

Rocket Software set a lender call for 10 a.m. ET on Thursday to launch an $825 million incremental term loan B, according to a market source.

RBC Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used with balance sheet cash to fund the acquisition of ASG Technologies, a Naples, Fla.-based provider of information management and mainframe systems performance management, from Evergreen Coast Capital.

Closing is subject to receipt of applicable regulatory approvals and other customary conditions.

The company currently has an existing roughly $1.27 billion term loan B priced at Libor plus 425 bps with a 0% Libor floor.

Rocket Software, a Bain Capital portfolio company, is a Waltham, Mass.-based provider of enterprise infrastructure software.

MetroNet joins calendar

MetroNet scheduled a lender call for 2 p.m. ET on Wednesday to launch a $585 million first-lien term loan B and a $65 million first-lien delayed-draw term loan, a market source said.

The company is also getting an $85 million privately placed second-lien term loan and a $175 million privately placed second-lien delayed-draw term loan.

Goldman Sachs Bank USA, Fifth Third, Citizens Bank and TD Securities (USA) LLC are leading the deal that will be used to refinance existing debt and for general corporate purposes.

The company announced last month that it is getting an investment from KKR and a new investment from its current investor Oak Hill Capital.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

MetroNet is an Evansville, Ind.-based provider of fiber optic high-speed broadband services.

Global Healthcare on deck

Global Healthcare Exchange will hold a lender call at 9:30 a.m. ET on Wednesday to launch a fungible $100 million incremental term loan talked with an original issue discount of 98.5, according to a market source.

Pricing on the incremental term loan is Libor plus 325 bps with a 1% Libor floor.

Commitments are due at 5 p.m. ET on May 19, the source added.

JPMorgan Chase Bank is leading the deal that will be used with a $260 million privately placed second-lien term loan to redeem preferred equity and refinance an existing second-lien term loan.

Global Healthcare Exchange is a Louisville, Colo.-based provider of cloud-based health care supply chain management technology and services.

Ascensus coming soon

Ascensus plans to hold a lender call on Wednesday to launch a $1.05 billion seven-year first-lien term loan (B-), a market source remarked.

JPMorgan Chase Bank is the left lead on the deal that will be used with a privately placed second-lien term loan to help fund the buyout of the company by Stone Point Capital and GIC from Genstar Capital, Aquiline Capital Partners and Atlas Merchant Capital. Genstar and Aquiline will maintain a minority stake in the company.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Ascensus is a Dresher, Pa.-based tech-enabled solutions provider focused on recordkeeping and administration in the U.S. tax advantages savings market.

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