Shape frees up; Ceridian revised; International Textile, Bomgar, Micron, MW, Quincy set talk

By Sara Rosenberg

New York, April 4 – Shape Technologies Group Inc. (Waterjet Holdings Inc.) lowered the spread on its term loan, added a step-down and then made its way into the secondary market on Wednesday.

In more happenings, Ceridian HCM raised pricing on its term loan B and added a rating-based step-down, and International Textile Group Inc., Bomgar Corp., Micron Technology Inc., MW Industries and Quincy Media Inc. released price talk with launch.

Additionally, Heartland Dental LLC and Pelican Products Inc. joined this week’s primary calendar.

Shape flexes, breaks

Shape Technologies trimmed pricing on its $300 million seven-year covenant-light first-lien term loan (B2/B) to Libor plus 300 basis points from talk in the range of Libor plus 325 bps to 350 bps and added a 25 bps step-down with an upgrade to the corporate family rating to B1/B+, according to a market source.

The corporate family rating is currently B2/B.

As before, the term loan has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday and the loan freed to trade in the afternoon with levels quoted at par bid, par ˝ offered, a trader added.

Credit Suisse Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt.

Shape Technologies is a Kent, Wash.-based provider of automation solutions utilizing ultra-high pressure technology.

Ceridian revised

Ceridian HCM widened pricing on its $680 million seven-year covenant-light term loan B to Libor plus 325 bps from talk in the range of Libor plus 275 bps to 300 bps and added a step-down to Libor plus 300 bps at a B2 corporate rating, a market source said.

Currently, the corporate rating is B3.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Additionally, the term loan has a ticking fee of half the spread from days 30 to 90 and the full spread thereafter.

The company’s $980 million of credit facilities (B3/B-) also include a $300 million revolver.

Commitments continue to be due at 5 p.m. ET on Thursday, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to refinance existing debt.

Ceridian is a provider of cloud HCM technology and offers a broad range of human resources software and service solutions.

International Textile talk

International Textile Group held its bank meeting on Wednesday and announced price talk on its $575 million seven-year covenant-light first-lien term loan (B1/B) and $135 million eight-year covenant-light second-lien term loan (B3/B-), a market source remarked.

The first-lien term loan is talked at Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 850 bps to 875 bps with a 0% Libor floor, a discount of 98.5 and hard call protection of 103 in year one, 102 in year two and 101 in year three, the source added.

Commitments are due at noon ET on April 18.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies LLC and HSBC Securities (USA) Inc. are leading the $710 million of term loans that will be used to fund the acquisition of American & Efird and to refinance existing debt.

International Textile Group is a Greensboro, N.C.-based manufacturer of industrial and technical threads and woven fabrics. American & Efird is a Mt. Holly, N.C.-based manufacturer of sewing thread, embroidery thread and technical textiles.

Bomgar terms surface

Bomgar launched at its bank meeting its $240 million seven-year first-lien term loan at talk of Libor plus 375 bps to 400 bps with a 0% Libor floor and an original issue discount of 99.5, a market source said.

The first-lien term loan has 101 soft call protection for six months.

Commitments are due on April 16, the source added.

The company’s $360 million of credit facilities also include a $25 million revolver, and a $95 million privately placed eight-year second-lien term loan that has call protection of 102 in year one and 101 in year two.

Jefferies LLC and Golub are leading the deal, which will be used to help fund the buyout of the company by Francisco Partners.

Bomgar is a Ridgeland, Miss., provider of remote support and privileged access management solutions to enterprise customers.

Micron reveals guidance

Micron Technology came out with talk of Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months on its $736,875,000 senior secured covenant-light term loan B due April 26, 2022 that launched with a morning call, according to a market source.

Commitments/consents are due at 5 p.m. ET on Monday, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B due 2022 down from Libor plus 200 bps with a 0% Libor floor.

Micron is a Boise, Idaho-based semiconductor company.

MW Industries launches

MW Industries launched on its call its fungible $75 million add-on first-lien term loan and repricing of its existing $384 million first-lien term loan at talk of Libor plus 350 bps with a 0% Libor floor and 101 soft call protection for six months, a market source said.

The add-on term loan is talked with an original issue discount of 99.75 and the repricing is offered at par, the source added.

Commitments are due on April 11.

RBC Capital Markets is leading the deal.

The add-on will be used to fund an acquisition and the repricing will take the existing term loan down from Libor plus 400 bps with a 0% Libor floor.

MW Industries is a Rosemont, Ind.-based designer and manufacturer of springs and other specialty engineered metal components for diverse end markets.

Quincy holds call

Quincy Media emerged in the morning with plans to hold a lender call at 11:30 a.m. ET to launch a $213.4 million term loan B due Nov. 2, 2022 talked at Libor plus 275 bps with a 1% Libor floor and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on April 11, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 1% Libor floor.

Quincy Media is a Quincy, Ill.-based media company.

Heartland on deck

Heartland Dental scheduled a bank meeting for 10 a.m. ET on Thursday to launch $1,285,000,000 of credit facilities, according to a market source.

The facilities consist of a $135 million revolver, a $1 billion seven-year first-lien term loan and a $150 million seven-year delayed-draw for two years term loan, the source said.

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

Jefferies LLC, KKR Capital Markets, TD Securities (USA) LLC, BMO Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by KKR from Ontario Teachers’ Pension Plan and other existing shareholders.

Heartland Dental is an Effingham, Ill.-based dental support organization.

Pelican readies deal

Pelican Products set a lender presentation for 11 a.m. ET on Thursday to launch $530 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $30 million ABL revolver, a $380 million first-lien term loan and a $120 million second-lien term loan, the source added.

Morgan Stanley Senior Funding Inc. and Jefferies LLC are leading the deal that will be used to refinance existing debt.

Pelican Products is a Torrance, Calif.-based protective case and lighting equipment manufacturer.

HelpSystems closes

In other news, HGGC LLC completed its acquisition of a majority stake in HelpSystems LLC, according to a news release.

To help fund the transaction, HelpSystems got $735 million of senior secured credit facilities that include a $40 million revolver (B2/B-), a $495 million seven-year first-lien term loan (B2/B-) and a $200 million eight-year second-lien term loan (Caa2/CCC).

The first-lien term loan is priced at Libor plus 375 bps with a 0% Libor floor and was sold at an original issue discount of 99.75, and the second-lien term loan is priced at Libor plus 775 bps with a 0% Libor floor and was issued at a discount of 99.5.

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

During syndication, pricing on the first-lien term loan firmed at the high end of the Libor plus 350 bps to 375 bps talk and the discount was changed from 99.5, and the discount on the second-lien loan tightened from 99.

Jefferies LLC, Antares Capital and Ares led the deal.

HelpSystems is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity, and business intelligence software.

© 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.