Young Innovations, Sage Auto free up; Big Ass Solutions tweaked; Intralinks moves deadline

By Sara Rosenberg

New York, Nov. 6 – Young Innovations Inc. finalized pricing on its first-lien term loan debt at the wide end of guidance and added a leverage-based step-down before breaking for trading on Monday, and Sage Automotive Interiors Inc.’s term loan hit the secondary market as well.

In more happenings, Big Ass Solutions (Big Ass Fans LLC) trimmed pricing on its term loan and added a step-down, and Intralinks Holdings Inc. accelerated the commitment deadline on its credit facilities.

Also, First Data Corp., Avast Software, American Airlines Inc., United Airlines Inc., Summit Materials LLC, Entercom/CBS Radio, B&G Foods Inc., Excelitas Technologies Corp., Hearthside Group Holdings LLC and Utility One Source (UOS LLC) released price talk with launch.

Furthermore, ON Semiconductor Corp., Lighthouse Network LLC, Vistra Group, LSC Communications Inc. and National Vision Inc. joined this week’s primary calendar.

Young Innovations firms

Young Innovations set pricing on its $270 million seven-year covenant-light funded first-lien term loan (B2/B-) and $67.5 million seven-year covenant-light first-lien delayed-draw term loan (B2/B-) at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, and added a 25 bps step-down at less than 4.25 times net first-lien leverage, according to a market source.

The term debt still has a 1% Libor floor and an original issue discount of 99.5, the first-lien term loan still has 101 soft call protection for six months, and the delayed-draw loan still has a 12-month delayed-draw period and a ticking fee of 100 bps after 60 days.

Previously in syndication, the delayed-draw term loan was downsized from $100 million, and the original issue discount was changed to be paid upfront at closing instead of paid at the time of the draw.

Young starts trading

With final terms in place, Young Innovations’ strip of funded and delayed-draw first-lien term loan debt surfaced in the secondary market, and levels were quoted at par bid, par ¾ offered, the source added.

The company’s $507.5 million of credit facilities also include a $50 million revolver (B2/B-) and a $120 million eight-year second-lien term loan that was preplaced.

Jefferies LLC, Antares Capital, Madison Capital and Neuberger Berman are leading the deal that will be used to help fund the buyout of the company by Jordan Co.

Young Innovations is an Algonquin, Ill.-based developer and manufacturer of consumable dental products.

Sage Automotive tops OID

Sage Automotive’s fungible $85 million incremental first-lien term loan (B2/B) due November 2022 began trading too, with levels seen at 99¾ bid, par ¼ offered, a market source said.

Pricing on the incremental loan is Libor plus 500 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Last week, pricing on the incremental term loan was reduced from talk in the range of Libor plus 525 bps to 550 bps. With the flex, pricing on the incremental term loan matches existing first-lien term loan pricing.

UBS Investment Bank is leading the deal that will be used to fund a dividend.

Clearlake Capital Group is the sponsor.

Existing lenders were offered a 50 bps amendment fee.

Sage Automotive is a Greenville, S.C.-based supplier of specialty designed, high-performance textiles and premium fabrics to the automotive industry.

BWIC announced

Also in trading, a $552.5 million bid wanted in competition emerged, with bids due at 11 a.m. ET on Tuesday, a trader remarked.

Some of the names in the portfolio are ADT Corp., American Airlines Inc., Calpine Construction, Envision Healthcare Corp., LA Fitness, Moneygram International, Revlon Consumer Products Corp., Vizient Inc. and Zebra Technologies Corp.

There are about 134 issuers in the BWIC, the trader added.

Big Ass flexes

Back in the primary market, Big Ass Solutions lowered the spread on its $250 million 6.5-year covenant-light first-lien term loan to Libor plus 425 bps from talk in the range of Libor plus 475 bps to 500 bps and added a 25 bps step-down at 1 time inside closing net secured leverage, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $290 million of credit facilities (B2/B) also include a $40 million revolver.

Commitments were due at noon ET on Monday, the source said.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Lindsay Goldberg.

Big Ass Solutions is a Lexington, Ky.-based producer of high volume, low speed and connected fans.

Intralinks updates timing

Intralinks moved up the commitment deadline on its $650 million of senior secured credit facilities to 5 p.m. ET on Wednesday from Thursday, a market source remarked.

The facilities consist of a $50 million five-year revolver (B2/B), a $450 million seven-year covenant-light first-lien term loan (B2/B) and a $150 million eight-year covenant-light second-lien term loan (Caa2/B-).

Talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

RBC Capital Markets, Golub Capital and Macquarie Capital are leading the deal that will be used to help fund the roughly $1 billion buyout of the company by Siris Capital Group LLC from Synchronoss Technologies Inc.

Closing is expected in mid-November, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other foreign antitrust regulatory approvals.

Intralinks is a New York-based provider of cloud-based virtual data room and highly secure team collaboration solutions to financial institutions and enterprises.

First Data launches

First Data launched in the morning a $3,892,000,000 first-lien term loan due April 2024 at talk of Libor plus 225 bps with a 25 bps step-down subject to a Ba3 rating from Moody’s, no floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 10 a.m. ET on Thursday, the source said.

Credit Suisse and KKR Capital Markets are leading the deal that will be used to reprice an existing term loan down from Libor plus 250 bps.

First Data is an Atlanta-based provider of payment processing solutions.

Avast holds call

Avast Software held a lender call at 10 a.m. ET Monday to launch a $1,229,000,000 covenant-light term loan B due September 2023 and a €508 million covenant-light term loan B due September 2023, a market source said.

Talk on the U.S. term loan is Libor plus 275 bps with a 1% Libor floor, and talk on the euro term loan is Euribor plus 300 bps with a 0% floor. Both loans are talked with an original issue discount of 99.75 to par and 101 soft call protection for six months, the source added.

Commitments are due at noon ET on Thursday.

Credit Suisse is leading the deal that will be used to reprice an existing U.S. term loan from Libor plus 325 bps with a 1% Libor floor and an existing euro term loan from Euribor plus 350 bps with a 0% floor.

Avast is a Prague-based maker of security software.

American Airlines repricing

American Airlines launched without a call a $1.25 billion senior secured term loan B due Dec. 14, 2023 at talk of Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Existing lender commitments are due at 5 p.m. ET on Thursday, and new lender commitments are due at noon ET on Friday, the source said.

Citigroup Global Markets Inc., Barclays, Credit Suisse, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, ICBC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Credit Agricole, Standard Chartered Bank, SMBC, U.S. Bank and Texas Capital Bank are leading the deal that will be used to reprice an existing term loan due Dec. 14, 2023 from Libor plus 250 bps with a 0.75% Libor floor.

Closing is expected on Nov. 14, the source added.

American Airlines is a Fort Worth, Texas-based airline company.

United Airlines deal emerges

United Airlines launched a $1,493,000,000 senior secured term loan due April 1, 2024 at talk of Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 1 p.m. ET on Thursday, the source added.

Barclays is leading the deal that will be used to reprice an existing term loan down from Libor plus 225 bps with a 0% Libor floor.

United Airlines is a Chicago-based airline operator.

Summit Materials details

Summit Materials held its call in the afternoon, launching a $635 million seven-year term loan B at talk of Libor plus 225 bps to 250 bps with a 0% 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 Thursday, the source said.

Bank of America Merrill Lynch is leading the deal that will be used to replace an existing term loan due 2022 that is priced at Libor plus 275 bps with a 0.75% Libor floor.

Summit Materials is a Denver-based construction materials company.

Entercom comes to market

Entercom/CBS Radio surfaced in the morning with plans to hold a conference call at 2 p.m. ET to launch an $830 million seven-year incremental term loan B-1 (Ba3) talked at Libor plus 275 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used to roll the legacy term loan B into the incremental term loan B-1.

Entercom/CBS Radio is a Philadelphia-based radio broadcasting company.

B&G Foods launches

B&G Foods held a lender call at 2 p.m. ET to launch a $640 million term loan B due Nov. 2, 2022 and a $700 million five-year revolver, a market source remarked.

Talk on the term loan is Libor plus 200 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, and talk on the revolver is Libor plus 125 bps to 175 bps based on leverage with a 0% Libor floor and a discount of 99.75, the source continued.

Barclays is leading the deal that will be used to reprice an existing term loan B and revolver, expand the revolver from $500 million and extend the revolver maturity date to a five-year maturity with a 90-day springing maturity to the existing term loan B.

The company is also seeking an amendment to the financial leverage covenant under the credit agreement to change it to 7 times from 6.5 times currently.

Term loan B lenders are being offered at 12.5 bps amendment fee, and revolver lenders are being offered a 15 bps amendment fee, the source added.

Commitments/consents are due at noon ET on Nov. 14. Cashless roll is available.

B&G is a Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable and frozen foods.

Excelitas reveals guidance

Excelitas Technologies announced price talk on its $505 million seven-year first-lien term loan (B-), €250 million seven-year first-lien term loan (B-) and $260 million eight-year second-lien term loan (CCC+) with its New York bank meeting on Monday, a market source said. A bank meeting for European investors will take place in London on Tuesday.

Talk on the U.S. first-lien term loan is Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months. Talk on the euro first-lien term loan is Euribor plus 375 bps to 400 bps with a 0% floor, a discount of 99.5 and 101 soft call protection for six months. Talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

Commitments are due at noon ET on Nov. 17.

JPMorgan is the left lead on the deal that will be used to help fund the buyout of the company by AEA Investors from Veritas Capital, which is expected to close this quarter.

Excelitas is a Waltham, Mass.-based optoelectronics provider to military and defense customers and commercial original equipment manufacturers.

Hearthside shops loan

Hearthside Group hosted a lender call at 11 a.m. ET to launch a fungible $70 million add-on term loan B due June 2, 2021 at talk of Libor plus 300 bps with a 1% Libor floor, in line with existing term loan B pricing, and an original issue discount of 99.75 to par, according to a market source.

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

Barclays is leading the deal that will be used to help fund the acquisition of Standard Functional Foods Group, a Nashville-based contract manufacturer of nutritional and functional bars, from Standard Candy Co. and to pay related fees and expenses.

Closing is subject to regulatory approval and customary conditions.

Hearthside is a Downers Grove, Ill.-based manufacturer of grain-based food and snack products.

Utility One seeks add-on

Utility One Source held a lender call at 1 p.m. ET, launching a fungible $50 million incremental covenant-light first-lien term loan B due April 18, 2023 at talk of Libor plus 550 bps with a 1% Libor floor, an issue price of 102 to 102.5 and call protection of non-callable until April 18, 2018, then at 102 for one year, a market source remarked.

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

Morgan Stanley, Citigroup and RBC are leading the deal that will be used for general corporate purposes, including to support additional rental equipment investments.

Utility One is a Kansas City, Mo.-based provider of equipment and service solutions to the utility and infrastructure sectors.

ON Semi joins calendar

ON Semiconductor will hold a lender call at 9:30 a.m. ET on Tuesday to launch a $1,205,000,000 covenant-light term loan B due March 2023 talked at Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments from existing lenders are due at noon ET on Nov. 13, and commitments from new lenders are due at noon ET on Tuesday, the source said.

Deutsche Bank, Bank of America Merrill Lynch, BMO Capital Markets, HSBC Securities (USA) Inc., SMBC and MUFG are leading the deal that will be used to reprice an existing term loan down from Libor plus 225 bps with a 0% Libor floor.

In connection with the repricing, the term loan B is being paid down by $400 million to the $1,205,000,000 amount with funds from a revolver draw. The company is upsizing its revolver to $1 billion from $600 million so its liquidity position will be unchanged, the source added.

ON Semiconductor is a Phoenix-based semiconductor company.

Lighthouse readies deal

Also in the primary market, Lighthouse Network set a bank meeting for 9:30 a.m. ET in New York on Tuesday to launch $600 million of credit facilities, a market source remarked.

The facilities consist of a $40 million revolver, a $390 million seven-year covenant-light first-lien term loan with a 1% Libor floor and 101 soft call protection for six months and a $170 million eight-year covenant-light second-lien term loan with a 1% Libor floor and call protection of 102 in year one and 101 in year two, the source added.

Commitments are due on Nov. 17.

Credit Suisse, Deutsche Bank and Citizens Bank are leading the deal that will be used to fund a tuck-in acquisition and to refinance existing debt.

Lighthouse, formerly known as Harbortouch LLC, is an Allentown, Pa.-based independent merchant acquirer and payment solutions provider.

Vistra Group on deck

Vistra Group scheduled a lender call for 10:30 a.m. ET on Wednesday to launch first- and second-lien term loans, according to a market source.

The debt consists of an $80 million equivalent add-on first-lien U.S. and euro term loan, a $252 million repriced first-lien term loan, a €385 million repriced first-lien term loan, a $36 million repriced second-lien term loan and a €29 million repriced second-lien term loan, the source said.

Goldman Sachs Bank USA and HSBC are leading the deal.

The add-on term loan will be used to prepay a portion of the existing second-lien term loan debt resulting in the $36 million and €29 million tranche sizes.

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

LSC coming soon

LSC Communications will hold a call on Tuesday to launch a loan deal led by Bank of America Merrill Lynch, a market source said.

LSC is a Chicago-based provider of digital print, print-related services and office products.

National Vision plans call

National Vision set a loan lender call for 2:30 p.m. ET on Tuesday, according to a market source.

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal.

National Vision is a Duluth, Ga.-based optical retailer.

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