Zayo, Electric Lightwave react to acquisition news; Valeant weakens; Save-A-Lot tweaks deal

By Sara Rosenberg

New York, Nov. 30 – Zayo Group Holdings Inc.’s term loan B was bid lower in the secondary market on Wednesday following an announcement by the company that it intends to take on additional debt to fund the acquisition of Electric Lightwave, but Electric Lightwave’s first-lien term loan was higher on the news.

In more trading happenings, Valeant Pharmaceuticals International Inc.’s term loans dropped with chatter that the company’s discussions to sell its Salix Pharmaceuticals business may have come to an end.

Meanwhile, in the primary market, Save-A-Lot set the spread on its term loan B at the high end of guidance, widened the original issue discount and extended the call protection.

Also, Lightstone Generation LLC, American Airlines Inc., Axalta Coating Systems, Oberthur Technologies Group SAS, Aptean Inc., Cinemark USA Inc., Eastern Power LLC (TPF II Power LLC) and Quikrete Co. released price talk with launch.

Furthermore, GlobalLogic, E.W. Scripps Co. and MKS Instruments Inc. joined this week’s new issue calendar.

Zayo bid softens

Zayo Group’s term loan B saw a weakening on the bid side in trading on Wednesday after news emerged that the company plans on getting new debt to help fund its $1.42 billion acquisition of Electric Lightwave, according to a trader.

The term loan B was quoted at 100 3/8 bid, 100 7/8 offered, versus 100½ bid, 100 7/8 offered previously, the trader said.

Along with new debt, the company intends to use cash on hand to finance the acquisition.

Closing is expected in the first quarter of 2017, subject to customary regulatory approvals and conditions.

Electric Lightwave gains

In reaction to the same news, Electric Lightwave’s first-lien term loan showed the opposite response, with levels moving up to par bid, 100½ offered from 99 bid, par offered, the trader said.

The company’s second-lien term loan was quoted at 101 bid, 101½ offered, the trader added.

Zayo is a Boulder, Colo.-based provider of communications infrastructure services. Electric Lightwave, formerly known as Integra Telecom, is a Vancouver, Wash.-based provider of infrastructure and telecom services.

Valeant retreats

Valeant’s term loans were lower in trading with rumors that the company’s talks to sell its Salix business have fallen apart, according to a trader.

The term loan F was quoted at 98 7/8 bid, down from 99¼ bid, 99½ offered, the term loan E was quoted at 98¾ bid, 99 1/8 offered, down from 98 7/8 bid, 99 3/8 offered, and the term loan D was quoted at 99 bid, 99¼ offered, down from 99 1/8 bid, 99½ offered, the trader said.

On Tuesday, the company said in a press release that it has initiated a significant sales force expansion to focus on potential primary care physician prescribers of Xifaxan for irritable bowel syndrome with diarrhea and Relistor for opioid induced constipation, both products of the Salix business.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

TricorBraun trades

Also in the secondary market, TricorBraun’s $600 million covenant-light term loan was quoted at par bid, 100½ offered on Wednesday morning, after breaking during the previous session, a trader remarked.

Pricing on the term loan, as well as on a $60 million delayed-draw term loan, is Libor plus 375 bps with a 1% Libor floor, and the debt was sold at an original issue discount of 99. There is 101 soft call protection for one year. The delayed-draw loan has a ticking fee of half the spread for the first 90 days and the full spread thereafter.

The company’s $735 million credit facility (B2/B) also includes a $75 million revolver.

During syndication, pricing on the term loans firmed at the high end of the Libor plus 350 bps to 375 bps talk, the discount was set at the wide end of the 99 to 99.5 talk, the call protection was extended from six months, the delayed-draw availability period was reduced to one year from two years, the ticking fee was modified from half the spread for the first year and the full spread thereafter, the MFN sunset was removed, the $50 million MFN carve-out was eliminated, and certain EBITDA addbacks were capped at 25% of EBITDA.

Antares Capital, Nomura and Guggenheim Securities are leading the deal that help funds the buyout of the St. Louis-based distributor of plastic and glass packing products by AEA Investors LP from CHS Capital.

Save-A-Lot revised

Switching to the primary market, Save-A-Lot updated pricing on its $740 million seven-year senior secured covenant-light term loan B (B2/B) to Libor plus 600 basis points, versus prior talk of Libor plus 575 bps to 600 bps, changed the original issue discount to 97 from 99 and pushed out 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.

Commitments and document comments are due at 5 p.m. ET on Thursday, the source said.

The company’s $990 million credit facility also includes a $250 million five-year ABL revolver.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc. and BMO Capital Markets Corp. are leading the deal.

Save-A-Lot being acquired

Proceeds from Save-A-Lot’s credit facility will be used to help fund its buyout by Onex Corp. from Supervalu Inc. for $1,365,000,000 in cash, subject to customary closing adjustments.

Secured and total leverage is around 3.5 times.

Closing is expected during the week of Dec. 5, dependent on regulatory approvals and other customary conditions.

Save-A-Lot is a hard-discount grocery retailer.

Lightstone talk surfaces

Lightstone Generation held its bank meeting on Wednesday, and with the event, talk on its $1,575,000,000 seven-year covenant-light term loan B was announced at Libor plus 475 bps to 500 bps with a 1% Libor floor and an original issue discount of 99, a market source said.

The company’s $1,825,000,000 credit facility (Ba3/BB-) also includes a $100 million revolver and a $150 million funded letter-of-credit facility (term loan C).

Commitments are due at noon ET on Dec. 13, the source added.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, RBC Capital Markets, Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will support the roughly $2.17 billion buyout of the company by Blackstone and ArcLight Capital Partners LLC from American Electric Power.

Closing is expected in the first quarter of 2017, subject to regulatory approvals.

Lightstone Generation is a portfolio of four power generation facilities.

American Airlines details

American Airlines launched on its afternoon lender call a $1 billion seven-year senior secured term loan B (Ba1/BB+) talked at Libor plus 250 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a source remarked.

Commitments are due at 5 p.m. ET on Dec. 7, the source added.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Credit Agricole, ICBC and US Bank are leading the deal that will be used to repay a 2019 term loan and for general corporate purposes.

Closing is targeted for Dec. 15.

American Airlines is a Fort Worth-based airline company.

Axalta holds call

Axalta Coating Systems hosted its lender call in the morning, launching its $1,775,000,000 term loan B due February 2023 and a €187 million term loan B due February 2023 with talk of Libor/Euribor plus 250 bps with a 0.75% floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, according to a market source.

Commitments/consents are due at noon ET on Tuesday, the source said.

Barclays is leading the deal (Ba1/BBB-) that will be used with cash on hand to refinance $1,775,000,000 in term loans due 2020 priced at Libor plus 275 bps with a 1% Libor floor and €187 million of term loans due 2020 priced at Euribor plus 300 bps with a 1% Euribor floor and to pay related transaction fees and expenses.

Axalta is a Philadelphia-based manufacturer, marketer and distributor of coatings systems.

Oberthur sets guidance

Oberthur Technologies held its London bank meeting, and launched its €2.1 billion seven-year U.S. and euro term loan at talk of Libor/Euribor plus 425 bps to 450 bps with no floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

A bank meeting for U.S. investors will take place at 10 a.m. ET in New York on Thursday.

The company’s €2.4 billion equivalent senior secured credit facility (B2/B-/B+) also includes a €300 million multi-currency six-year revolver priced at Euribor plus 400 bps with no floor.

Commitments are due on Dec. 14.

Oberthur lead banks

Deutsche Bank, Goldman Sachs International and Morgan Stanley are jointly leading syndication on Oberthur Technologies’ euro tranche, and Goldman Sachs is the left lead bookrunner on the U.S. tranche.

The new credit facility will be used to help fund the acquisition of Morpho for a total enterprise value of €2.5 billion and to refinance existing Oberthur debt, including €190 million senior notes due 2020.

Pro forma net total leverage is 4.3 times based on pro forma September 2016 last-12-months EBITDA of €461 million.

Oberthur Technologies is a France-based provider of chip-based digital authentication products and solutions with an expertise in digital security processes, software and cryptography. Morpho is a provider of security and identity solutions.

Aptean terms surface

Aptean came out with price talk on its $730 million senior secured credit facility as the company held its lenders’ presentation on Wednesday, according to a market source.

The $70 million five-year revolver (B2/B) is talked at Libor plus 475 bps with no Libor floor, the $470 million six-year covenant-light first-lien term loan B (B2/B) is talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $190 million seven-year covenant-light second-lien term loan (Caa2/CCC+) is talked at Libor plus 900 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Dec. 14.

Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing credit facilities and fund a dividend.

Aptean is an Alpharetta, Ga.-based provider of enterprise application software.

Cinemark releases talk

Cinemark launched with a lender call its $664 million covenant-light term loan B due May 8, 2022 at talk of Libor plus 225 bps with no Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Dec. 9, the source added.

Barclays is leading the deal that will reprice the existing term loan from Libor plus 275 bps with no Libor floor.

Cinemark is a Plano, Texas-based motion picture exhibitor.

Eastern Power guidance

Eastern Power came out with talk of Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99 on its fungible $200 million incremental senior secured term loan B due Oct. 2, 2021 that launched with a lender call, according to a market source.

The incremental loan, as well as the existing term loan B, will get 101 soft call protection for six months, the source said.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund a one-time dividend.

In connection with this transaction, the company is seeking an amendment to its existing $1,446,912,314 term loan B, and lenders are offered a 50-bps consent fee, the source added.

Commitments and consents are due on Tuesday.

Eastern Power is an owner of gas-fired electric generating stations.

Quikrete launches

Quikrete held its call, launching its fungible $100 million covenant-light add-on first-lien term loan (B+) with original issue discount talk of 99.5 and its $200 million 7.5-year covenant-light second-lien term loan (B-) with price talk of Libor plus 650 bps with a 0.75% Libor floor and an original issue discount of 99, a source said.

As previously reported, pricing on the add-on first-lien loan is Libor plus 325 bps with a 0.75% Libor floor.

The first-lien loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due on Dec. 9.

Wells Fargo Securities LLC is leading the $300 million of term loans that will be used to help fund the acquisition of a concrete pipe manufacturing business from Rinker Materials, a subsidiary of Cemex SAB de CV, for about $500 million plus an additional $40 million purchase price contingent on future performance.

Closing is expected in the first quarter of 2017, subject to regulatory approval and customary conditions.

Quikrete is an Atlanta-based manufacturer of packaged concrete and related products.

Ansira deadline emerges

In more primary news, Ansira Partners Inc. set a commitment deadline of Dec. 14 for its $300 million unitranche credit facility that launched with a bank meeting during the session, according to a market source.

As previously reported, the facility –split between a $25 million revolver, a $240 million term loan and $35 million delayed-draw term loan – is talked at Libor plus 650 bps with a 1% Libor floor and an original issue discount of 99.

The term loans have call protection of 102 in year one and 101 in year two.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by Advent International from KRG Capital Partners.

Closing is expected by year-end, subject to customary conditions.

Ansira is a St. Louis-based data-driven, technology-enabled marketing solutions provider.

GlobalLogic on deck

GlobalLogic intends to host a lender meeting on Thursday to launch a $300 million term loan B (B1/B) talked at Libor plus 425 bps to 450 bps with a 1% Libor floor and an original issue discount of 99, a market source remarked.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance bank debt and some PIK notes.

GlobalLogic is a California-based provider of software R&D services.

E.W. Scripps repricing

E.W. Scripps will hold a lender call on Thursday to launch a repricing of its $391.5 million covenant-light term loan B due November 2020 that is talked at Libor plus 250 bps with no Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on Dec. 7, the source said.

Wells Fargo Securities LLC is leading the deal that will reprice the existing term loan B from Libor plus 275 bps with a 0.75% Libor floor.

E.W. Scripps is a Cincinnati-based media company.

MKS joins calendar

MKS Instruments scheduled a lender call for 11 a.m. ET on Thursday to launch a repricing of its $628 million term loan B due April 29, 2023 from Libor plus 350 bps with a 0.75% Libor floor, a market source said.

Barclays is leading the deal.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.