AssuredPartners dips on buyout news; Vistra Group, Jackson Hewitt, V. Group revise deals

By Sara Rosenberg

New York, July 20 – AssuredPartners Inc. saw its first-lien term loan move a bit lower in the secondary market on Monday after news surfaced that the company is being acquired.

Switching to the primary market, Vistra Group lowered the spread on its first-lien term loan, firmed pricing on its second-lien term loan at the low end of guidance and tightened original issue discounts on both tranches, and Jackson Hewitt Tax Service Inc. reduced the size of its term loan B.

In addition, V. Group adjusted the issue price on its add-on first-lien term loan, and C.H.I. Overhead Doors Inc. moved up the commitment deadline on its credit facility.

Also, Charter Communications Inc., Jarden Corp. and Ardent Legacy Acquisitions Inc. released talk with launch, and Navistar International Corp., Global Healthcare Exchange LLC, Water Pik Inc. and The Mohegan Tribal Gaming Authority joined this week’s new issue calendar.

AssuredPartners softens

AssuredPartners’ first-lien term loan was a little weaker in trading following an announcement that the company is being acquired by Apax Partners from GTCR, according to a trader.

The first-lien term loan was quoted at par bid, 100˝ offered, down from 100 1/8 bid, 100 5/8 offered, the trader said.

Closing on the buyout is expected in the third quarter, subject to customary regulatory clearances.

To help fund the transaction, the company has received a debt commitment from Bank of America Merrill Lynch, RBC Capital Markets and Morgan Stanley Senior Funding Inc.

AssuredPartners is a Lake Mary, Fla.-based provider of property and casualty and employee benefits insurance brokerage services.

Vistra reworks deal

Moving to the new deal front, Vistra Group trimmed pricing on its $515 million seven-year U.S dollar and euro first-lien covenant-light term loan (B1) to Libor/Euribor plus 375 bps from talk of Libor/Euribor plus 400 bps to 425 bps and moved the original issue discount to 99.5 from 99, while leaving the 1% floor and 101 soft call protection for six months intact, a market source said.

Also, pricing on the company’s $185 million eight-year U.S. dollar and euro second-lien term loan (B2) was set at Libor/Euribor plus 800 bps, the tight end of the Libor/Euribor plus 800 bps to 825 bps talk, and the discount was changed to 99.5 from 98.5, the source continued. This tranche still has a 1% floor and call protection of 102 in year one and 101 in year two.

The company’s $750 million credit facility includes a $50 million revolver (B1) as well.

Recommitments from U.S. investors were due at the end of the day on Monday, and are due from European investors at 10 a.m. BST on Tuesday, the source added.

Vistra lead banks

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and DBS Bank are leading Vistra’s credit facility.

Proceeds will be used to help fund the buyout of the company by Baring Private Equity Asia from IK Investment Partners.

Closing is subject to regulatory approvals.

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

Jackson Hewitt downsizes

Jackson Hewitt reduced its five-year term loan B to $200 million from $250 million, according to a market source.

Talk on the loan is Libor plus 575 bps to 600 bps with a 1% Libor floor, an original issue discount of 99 and modified hard call protection of 102 in year one and 101 in year two.

The company’s now $230 million credit facility also includes a $30 million first-out revolver.

RBC Capital Markets LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Jackson Hewitt is a Parsippany, N.J.-based provider of full-service individual federal and state income tax return preparation.

V. Group tweaks loan

V. Group tightened the issue price on its fungible $90 million add-on first-lien term loan (B1) to par from talk of 99 to 99.5 and moved up the commitment deadline to Tuesday from Wednesday, a market source said.

The add-on term loan is priced in line with the existing first-lien term loan at Libor plus 400 bps with a 1% Libor floor.

Goldman Sachs Bank USA is leading the deal that will be used to help repay the company’s second-lien term loan.

V. Group is a supplier of a broad range of specialist outsourcing services to asset owners and operators in the shipping, offshore, leisure and defense sectors.

C.H.I. Overhead revises timing

C.H.I. Overhead Doors accelerated the commitment deadline on its $475 million credit facility to noon ET on Friday from July 28, a source remarked.

The facility consists of a $40 million revolver (B2/B+), a $300 million seven-year first-lien term loan (B2/B+) talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, a discount of 99.5 and 101 soft call protection for six months and a $135 million eight-year second-lien term loan (Caa2/CCC+) talked at Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two.

UBS AG and KKR Capital Markets leading the deal that will be used to help fund the buyout of the company by KKR from Friedman Fleischer & Lowe LLC.

C.H.I. Overhead is an Arthur, Ill.-based manufacturer and marketer of overhead garage doors.

Charter holds call

Also in the primary, Charter hosted a lender call at 11:30 a.m. ET on Monday to launch a $3.5 billion seven-year term loan H (Ba1/BBB-) talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

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

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS AG and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the acquisitions of Time Warner Cable Inc. and Bright House Networks.

Time Warner Cable is being purchased in a cash and stock deal valued at $78.7 billion, and Bright House Networks is being bought from Advance/Newhouse Partnership for $10.4 billion.

Closing on is expected to occur by the end of this year, subject to approval by both Charter and Time Warner Cable shareholders, regulatory review and other customary conditions.

The combination of Stamford, Conn.-based Charter with Time Warner Cable and Bright House will create a broadband services and technology company with 23.9 million customers in 41 states.

Jarden details surface

Jarden had its call in the morning, at which time it was disclosed that the company is seeking $600 million of new term loan debt split between a fungible add-on term loan B-1 due Sept. 30, 2020 and a new seven-year term loan B-2, with tranche sizes still to be determined, a source remarked.

The add-on and the B-2 loan are talked at Libor plus 275 bps with no Libor floor, in line with the company’s existing term loan B-1, and all of the term debt will get 101 soft call protection for six months.

Original issue discount talk on the add-on loan is 99.5 to 99.75 and on the new term loan B-2 is 99 to 99.25, the source continued.

Commitments are due on July 27.

Barclays, Credit Suisse Securities (USA) LLC and UBS AG are leading the deal.

Jarden buying Waddington

Proceeds from Jarden’s term loans will be used to help fund the acquisition of Waddington Group Inc. from Olympus Partners and other stockholders for about $1.35 billion.

In addition, the company plans to use proceeds from the sale of common stock and cash on hand to fund the acquisition.

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

Jarden is a Boca Raton, Fla.-based diversified consumer products company. Waddington is a Covington, Ky.-based manufacturer and marketer of disposable tableware for commercial, foodservice and retail markets.

Ardent sets talk

Ardent Legacy Acquisitions released talk of Libor plus 575 bps with a 1% Libor floor, an original issue discount in the 99 area and 101 soft call protection for six months on its $250 million first-lien term loan that launched with an afternoon lender call, according to a market source.

Commitments are due on July 27, the source said.

Bank of America Merrill Lynch and Barclays are leading the deal.

Proceeds will be used to fund an acquisition and for general corporate purposes.

Ardent is a Nashville-based private-for-profit hospital system.

Navistar coming soon

Navistar scheduled a lender call for Tuesday to launch a $1.04 billion five-year senior secured term loan that is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to sources.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal.

Proceeds will be used to refinance an existing $697.5 million senior secured term loan due August 2017 and provide additional liquidity.

Navistar is a Lisle, Ill.-based manufacturer and seller of commercial and military trucks, buses, and diesel engines, and a provider of service parts for trucks and trailers.

Global Healthcare readies deal

Global Healthcare Exchange surfaced with plans to hold a bank meeting at 10 a.m. ET on Wednesday to launch a $400 million credit facility, according to a market source.

The facility consists of a $25 million revolver, and a $375 million seven-year term loan B talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt.

Net total leverage is about 4.9 times, the source added.

Global Healthcare Exchange is a Louisville, Colo.-based provider of healthcare supply chain solutions.

Water Pik on deck

Water Pik set a lender call for Thursday to launch add-on first-and second-lien term loans for a dividend recapitalization, a market source said.

GE Capital Markets is leading the deal.

The company’s existing credit facility was obtained in 2013 as a $25 million revolver at Libor plus 475 bps, a $215 million covenant-light first-lien term loan at Libor plus 475 bps with a 1% Libor floor and a $95 million second-lien term loan at Libor plus 875 bps with a 1% Libor floor.

The 2013 financing was done to help fund the company’s buyout by MidOcean Partners.

Water Pik is a Fort Collins, Colo.-based marketer and supplier of branded oral health and replacement showerhead products.

Mohegan joins calendar

Mohegan Tribal Gaming Authority scheduled a call for 11 a.m. ET on Tuesday to launch a $90 million add-on term loan, according to a market source.

Citizens Bank is leading the deal that will be used to help refinance the company’s 11% senior subordinated notes due 2018.

Mohegan Tribal is an Uncasville, Conn.-based operator of gaming and entertainment enterprises.

Summit Materials closes

In other news, Summit Materials LLC completed its acquisition of a 1.2 million short-ton capacity cement plant in Davenport, Iowa, and seven cement distribution terminals from Lafarge North America, refinancing of an existing term loan B due 2019 and repayment of senior notes due 2020, a news release said.

To help fund the transaction, Summit got a new $650 million seven-year covenant-light term loan B (B1/BB) priced at Libor plus 325 bps, after firming during syndication at the tight end of the Libor plus 325 bps to 350 bps talk. The term loan has a 1% Libor floor and 101 soft call protection for six months, and was sold at an original issue discount of 99.5.

The company also got a $235 million revolver priced at Libor plus 325 bps.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays and RBC Capital Markets LLC led the deal.

Summit is a Denver-based construction materials company.

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