Victory Capital, Idera break; Cengage slides; Janus, Gopher, Weld North, Axilone updated

By Sara Rosenberg

New York, Feb. 8 – Victory Capital Holdings Inc. and Idera Inc.’s new loans freed up for trading on Thursday, Victory’s after an upsize to its term loan B. Meanwhile Cengage Learning Inc.’s term loan weakened with quarterly earnings results that showed a year-over-year decline in adjusted EBITDA.

Also, Janus International Group LLC moved some funds between its first-and second-lien term loans and cut the spread on the first-lien tranche, and Gopher Resource LLC lifted the size of its term loan, lowered pricing, added a step-down and adjusted the issue price.

In addition, Weld North Education LLC widened the spread and original issue discount on its term loan B while also sweetening the call protection, Axilone firmed issue prices on its U.S. and euro first-lien term loans, and Invictus (Fire Safety and Oil Additives Divisions of Israel Chemicals Ltd.) accelerated the commitment deadline on its credit facilities.

Furthermore, Charter NEX US Inc., Overseas Shipholding Group Inc., Boyd Corp. and Sparta Systems Inc. released price talk with launch and TTM Technologies Inc. and Openlink Financial LLC are getting ready to bring their new deals to market.

Victory upsizes, trades

Victory Capital lifted its covenant-light term loan B (BB) to $360 million from $325 million, and left pricing at Libor plus 275 basis points with a 0% Libor floor and an original issue discount of 99.75, according to a market source.

The term loan still has 101 soft call protection for six months.

At the end of last month, pricing on the term loan was cut from talk in the range of Libor plus 300 bps to 325 bps and the discount was revised from 99.5.

The company’s now $410 million of credit facilities also include a $50 million revolver.

Recommitments were due at noon ET on Thursday and then the loan emerged in the secondary market late in the day with levels quoted at par bid, par ¾ offered, a trader said.

RBC Capital Markets and JPMorgan are leading the deal that will be used with funds from an initial public offering to refinance the company’s existing debt. The term loan was upsized as a result of less net proceeds raised from the IPO, the source added.

Victory Capital is a Brooklyn, Ohio-based asset management firm. Crestview Partners and Reverence Capital Partners are the sponsors.

Idera hits secondary

Idera’s $522.4 million first-lien term loan due June 29, 2024 began trading too, with levels quoted at par ¼ bid, 101 offered, a market source remarked.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 500 bps with a 1% Libor floor.

The company’s senior secured credit facilities (B2/B-) also include a $30 million revolver due June 29, 2022 priced at Libor plus 450 bps with a 0% Libor floor.

Idera is a Houston-based provider of software tools for databases.

Cengage retreats

Also in trading, Cengage saw its term loan soften to 93¾ bid, 94¾ offered from 95¾ bid, 96¾ offered after releasing earnings results for the third quarter of fiscal year 2018, a trader said.

For the three months ended Dec. 31, 2017, the company reported total revenues of $326.3 million, versus $322.5 million in the prior year, and net income of $25.5 million, compared to a net loss of $12 million in the previous year.

Adjusted EBITDA for the quarter was $76.2 million, down from $101.2 million in the third quarter of fiscal year 2017.

Cengage is a Boston-based educational content, technology and services company for the higher education and K-12, professional, library and workforce training markets.

Janus restructures

Back in the primary market, Janus International Group lifted its seven-year first-lien term loan to $470 million from $440 million and trimmed pricing to Libor plus 300 bps from Libor plus 350 bps, while leaving the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months intact, according to a market source.

Also, the company downsized its eight-year second-lien term loan to $100 million from $130 million, the source said. As before, this tranche is priced at Libor plus 775 bps with a 1% Libor floor and a discount of 99, and has hard call protection of 102 in year one and 101 in year two.

The company’s $620 million of credit facilities also include a $50 million ABL revolver.

Recommitments are due at noon ET on Friday, the source added.

UBS Investment Bank, Jefferies LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Clearlake Capital Group.

Janus is a Temple, Ga.-based manufacturer of roll up and swing doors, hallway systems and re-locatable storage units for the self-storage industry.

Gopher changes emerge

Gopher Resource upsized its seven-year covenant-light first-lien term loan to $475 million from $450 million, lowered pricing to Libor plus 325 bps from talk in the range of Libor plus 375 bps to 400 bps, added a 25 bps step-down at senior secured net leverage of less than 4.5 times and narrowed the original issue discount to 99.75 from 99.5, a market source remarked.

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

The company’s now $515 million of credit facilities (B2/B) also include a $40 million revolver.

Commitments are due at 11 a.m. ET on Friday, the source added.

Credit Suisse Securities (USA) LLC, Barclays and BMO Capital Markets are leading the deal that will be used to fund the acquisition of the company by Energy Capital Partners.

Gopher is a recycler of lead-acid batteries.

Weld North revised

Weld North Education lifted pricing on its $300 million seven-year covenant-light term loan B to Libor plus 425 bps from talk in the range of Libor plus 375 bps to 400 bps, changed the original issue discount to 99 from 99.5 and extended the 101 soft call protection to one year from six months, a market source said.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

The company’s $355 million of senior secured credit facilities (B2/B-) also include a $55 million revolver.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

RBC Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the acquisition by Silver Lake Partners of a majority stake in the company from KKR.

Weld North LLC’s other platform companies, Performance Matters and The Learning House, are not included in the Silver Lake transaction.

Weld North Education is a digital education technology company focused on developing digital curriculum and tools for preK-12th grade.

Horizon Global modified

Horizon Global lifted its term loan B (B1/B) due 2024 to $385 million from $380 million, raised pricing to Libor plus 500 bps from Libor plus 450 bps, changed the original issue discount talk to a range of 98 to 98.5 from a range of 99 to 99.5, and extended the 101 soft call protection to one year from six months, a market source remarked.

The term loan still has a 1% Libor floor.

J.P. Morgan, Wells Fargo Securities LLC, Bank of America Merrill Lynch and Jefferies LLC are leading the deal that will be used with cash on hand to fund the €169 million purchase of the Brink Group from H2 Equity Partners and to refinance an existing term loan.

Closing is expected by the end of the second quarter, subject to customary conditions, including receipt of regulatory approvals.

Horizon is a Troy, Mich.-based manufacturer of branded towing and trailering equipment. Brink is a Staphorst, Netherlands-based manufacturer of towbars, wiring kits and towing accessories.

Axilone updates deal

Axilone set the original issue discount on its €45 million equivalent U.S. seven-year first-lien term loan at 99.75, the tight end of the 99.5 to 99.75 talk, and on its €245 million seven-year first-lien term loan at par, the tight end of revised talk of 99.75 to par and tight of initial talk of 99.5, according to a market source.

Pricing on the U.S. term loan remained at Libor plus 400 bps with a 0% Libor floor, and pricing on the euro first-lien term loan remained at Euribor plus 375 bps with a 0% floor. Both tranches still have 101 soft call protection for six months.

The company’s €420 million of senior secured credit facilities also include a €50 million six-year revolver and, an €80 million 7.5-year second-lien term loan priced at Euribor plus 775 bps with a 1% floor and a discount of 98. The second-lien term loan is non-callable for one year, then at 102 in year two and 101 in year three.

Previously in syndication, the first-lien term loan was upsized to €290 million equivalent from €265 million and the U.S. carve-out was added, pricing on the euro first-lien term loan was cut from Euribor plus 400 bps, and the second-lien term loan was downsized from €90 million while the discount firmed from talk in the 98 area.

Axilone allocates

With final terms in place, allocations on Axilone’s credit facilities were communicated to lenders on Thursday, the source added.

Barclays and RBC are the active bookrunners on the deal and mandated lead arrangers with Credit Suisse. Barclays is the administrative agent.

The credit facilities will be used to finance the acquisition of Ileos Group SAS and Ileos USA by Citic Capital Partners, refinance existing debt and pay related fees and expenses.

Axilone is a Paris-based manufacturer of plastic and metal packaging for the lipstick, fragrance and skin care segments.

Invictus moves deadline

Invictus accelerated the commitment deadline on its $815 million of credit facilities to noon ET on Monday from noon ET on Feb. 15, according to a market source.

The facilities consist of a $100 million five-year revolver (B1/B+/BB+), a $545 million seven-year first-lien term loan (B1/B+/BB+) and a $170 million eight-year second-lien term loan (Caa1/CCC+/B).

Talk on the first-lien term loan is Libor plus 350 bps to 375 bps with a 0% 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 750 bps to 775 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Barclays, Goldman Sachs USA and HSBC Securities (USA) Inc. are leading the deal, with Barclays the administrative agent on the first-lien debt and Goldman the administrative agent on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by SK Capital from Israel Chemicals Ltd. for about $1 billion.

Closing is expected in the first half of this year, subject to regulatory approvals and other customary conditions.

Invictus is a St. Louis-based formulator and manufacturer of fire management chemicals.

Charter NEX launches

In more primary happenings, Charter NEX launched on its call on Thursday its $609 million term loan at talk of Libor plus 300 bps with a 25 bps leverage based step-down, a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 4 p.m. ET on Monday, the source added.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a step-down and a 1% Libor floor.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

Overseas Shipholding talk

Overseas Shipholding held its lender call in the morning, launching its $380 million extended senior secured term loan due August 2022 at talk of Libor plus 575 bps with a 1% Libor floor, a 50 bps amendment fee and soft call protection of 102 in year one and 101 in year two, according to a market source.

The term loan will amend and extend an existing term loan that will be paid down by $75 million from its current size of $455 million, the source said.

Commitments are due at noon ET on Feb. 15.

Goldman Sachs Bank USA is leading the deal.

Overseas Shipholding is a Tampa, Fla.-based provider of transportation services for crude oil and refined products.

Boyd reveals guidance

Boyd Corp. came out with talk of Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99.5 on its $210 million non-fungible term loan that launched with a morning call, a market source said.

The term loan has 101 soft call protection until May 16, 2018 to coincide with the call protection on the company’s existing roughly $726 million term loan.

Commitments are due on Feb. 21, the source added.

Antares Capital, SG Americas and Macquarie Capital are leading the deal that will be used to fund an acquisition.

Boyd, a portfolio company of Genstar Capital, is a Modesto, Calif.-based designer and manufacturer of highly engineered, specialty material-based thermal management, vibration damping, EMI management and environmental sealing solutions.

Sparta holds call

Sparta Systems held its call, launching its $239 million term loan at talk of Libor plus 350 bps with a 25 bps leverage based step-down, a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at 3 p.m. ET on Monday, the source added.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a step-down and a 1% Libor floor.

Sparta Systems is a Hamilton N.J.-based provider of quality management system software to the pharmaceutical, medical device and CPG industries.

TTM coming soon

TTM Technologies scheduled a lender call for 2 p.m. ET on Friday to launch a $300 million add-on term loan B due Sept. 28, 2024, according to a market source.

Barclays, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with $300 million of new unsecured debt and cash on hand to fund the acquisition of Anaren Inc. for about $775 million in cash from affiliates of Veritas Capital.

Closing is expected in the first half of this year, subject to customary conditions, including regulatory approvals.

TTM is a Costa Mesa, Calif.-based printed circuit board manufacturer. Anaren is a Syracuse, N.Y.-based designer and manufacturer of high-frequency RF and microwave microelectronics, components and assemblies for the space, defense and telecommunications sectors.

Openlink on deck

Openlink Financial set a bank meeting in New York for 10:30 a.m. ET on Monday and a bank meeting in London for Tuesday to launch $541 million equivalent of senior secured credit facilities, a market source remarked.

The facilities consist of a $21 million five-year revolver and a $520 million equivalent U.S. and euro seven-year term loan B, the source added.

UBS Investment Bank is leading the deal that will be used to help fund the acquisition of the company by ION Investment Group from Hellman & Friedman.

Openlink is a Uniondale, N.Y.-based provider of trading and risk management solutions for commodity, energy, corporate and financial services organizations. ION is a provider of trading and workflow automation software solutions to financial institutions, central banks, governments and corporations.

FirstLight well met

In other news, syndication of FirstLight Fiber’s fungible $30 million add-on term loan B (B-) due 2024 “went very well” and the anticipation is that allocations will go out on Friday, a market source said.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor and it is offered at par.

TD Securities is leading the deal that will be used to pay down revolver borrowings and fund capital expenditures.

Including the add-on, the term loan will total around $304 million.

FirstLight Fiber is an Albany, N.Y.-based bandwidth infrastructure provider.

Cision closes

Cision Ltd. (Canyon Cos. Sarl) closed on its $1,032,000,000 covenant-light term loan B (B2/B) due June 2023 and €249 million covenant-light term loan B (B2/B) due June 2023, according to a news release.

Pricing on the U.S. term loan B is Libor plus 325 bps with a 0% Libor floor pricing on the euro loan is Euribor plus 350 bps with a 0% floor. Both tranches were issued at par and have 101 soft call protection for six months.

Deutsche Bank Securities Inc. led the deal that was used to reprice existing U.S. and euro term loans down from Libor/Euribor plus 425 bps.

The company’s credit facilities also include a $75 million revolver priced at Libor plus 325 bps.

Cision is a Chicago-based software-as-a-service platform for communications professionals.

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