Edelman Financial, United Site Services free to trade; Kraton, LDiscovery updates emerge

By Sara Rosenberg

New York, Dec. 16 – Edelman Financial Center LLC raised the spread on its term loan B, firmed the original issue discount at the wide end of guidance, extended the call protection and then broke for trading on Wednesday, and United Site Services Inc.’s add-on term loan hit the secondary as well.

In more happenings, Kraton Polymers LLC set pricing on its term loan B at the high end of talk and modified the issue price, and LDiscovery LLC increased the size of its delayed-draw term loan while finalizing the spread on its debt at the tight side of guidance.

Edelman reworked, trades

Edelman Financial lifted pricing on its $230 million seven-year covenant-light term loan B to Libor plus 550 basis points from Libor plus 500 bps, finalized the original issue discount at 98, the wide end of the 98 to 99 talk, pushed out the 101 soft call protection to one year from six months and removed the MFN sunset, according to a market source.

As before, the term loan has a 1% Libor floor.

The company’s $260 million senior secured credit facility (B1/B+) also includes a $30 million five-year revolver priced at Libor plus 500 bps with no floor, in line with initial talk.

Commitments for the revised deal were due at 10 a.m. ET on Wednesday, and with final terms in place, the debt allocated and freed up for trading later in the day, with the term loan B quoted at 98¼ bid, 99¼ offered in the secondary market, a trader added.

Morgan Stanley Senior Funding Inc. and UBS AG are leading the deal, which will be used to help fund the buyout of the independent financial planning firm by Hellman & Friedman LLC.

Closing is expected on Dec. 18.

United Site Services frees up

United Site Services’ fungible $60 million add-on term loan began trading too, with levels seen at 99 bid, 99½ offered, a source said.

Pricing on the add-on loan is Libor plus 475 bps with a 1% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 99.

Last week, the add-on term loan was upsized from $50 million due to strong demand.

Antares Capital is the lead on the deal.

Proceeds will be used to fund future add-on acquisitions.

United Site Services is a Westborough, Mass.-based provider of portable sanitation solutions.

Kraton revisions surface

Back in the primary market, Kraton Polymers firmed pricing on its $1.35 billion six-year senior secured term loan B (Ba3/B+) at Libor plus 500 bps, the wide end of the Libor plus 475 bps to 500 bps talk, and modified the original issue discount to 92 from 98, a market source remarked.

The term loan still has a 1% Libor floor and 101 soft call protection for one year.

Commitments to the updated deal were due on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Nomura Securities International Inc. and Deutsche Bank Securities Inc. are leading the loan, which will be used to help fund the $1.37 billion acquisition of Arizona Chemical Holdings Corp. from American Securities LLC and to refinance existing debt.

Closing is expected in late 2015 or early 2016.

Kraton is a Houston-based producer of engineered polymers and styrenic block copolymers. Arizona Chemical is a biorefiner of pine chemicals with executive offices in Jacksonville, Fla., and Almere, the Netherlands.

LDiscovery tweaks deal

LDiscovery raised its six-year delayed-draw term loan to $40 million from $30 million as a result of strong demand, according to a market source.

Additionally, pricing on the delayed-draw loan and on a $100 million six-year term loan B firmed at Libor plus 475 bps, the low end of the Libor plus 475 bps to 500 bps talk, while the 1% Libor floor and original issue discount of 99 were left intact, the source said.

The company’s now $155 million credit facility also includes a $15 million five-year revolver.

Recommitments were due on Wednesday afternoon, the source added.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by Carlyle Group, which is expected to close late this year.

LDiscovery is a McLean, Va.-based technology-enabled provider of information discovery and governance services serving principally blue-chip corporations and law firms.

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