E.W. Scripps breaks; Hostess, Applied revised; WIRB-Copernicus, Liaison tweak timing

By Sara Rosenberg

New York, Dec. 11 – E.W. Scripps Co.’s term loan B-1 surfaced in the secondary during Wednesday’s market hours and was trading above par.

In other news, Hostess Brands LLC tightened the original issue discount on its add-on term loan, Applied Systems Inc. modified issue prices on its incremental first- and second-lien term loans, and Generac Power Systems Inc. set the issue price on its term loan B at the tight end of talk.

Also, WIRB-Copernicus Group and Liaison (LI Group Holdings Inc.) accelerated the commitment deadlines for their term loans, and NFP Corp. and Refinitiv joined this week’s primary calendar.

E.W. Scripps frees up

E.W. Scripps’ $761 million covenant-lite term loan B-1 due May 1, 2026 broke for trading on Wednesday, with levels quoted at par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the term loan is Libor plus 250 basis points with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Wells Fargo Securities LLC is the left lead on the deal that will be used to reprice an existing term loan B-1 down from Libor plus 275 bps.

E.W. Scripps is a Cincinnati-based broadcasting and digital media company.

Hostess tightens OID

Switching to the primary market, Hostess Brands modified the original issue discount on its fungible $140 million covenant-lite add-on term loan (BB-) due August 2025 to 99.75 from 99.25, according to a market source.

Like the existing term loan, the add-on term loan is priced at Libor plus 225 bps with a 0.75% Libor floor and has 101 soft call protection until April 1, 2020.

Recommitments were due at 5 p.m. ET on Wednesday, the source said.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Nomura and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with cash on hand to fund the acquisition of Voortman Cookies Ltd. from Swander Pace Capital for about $320 million in cash, including a customary working capital adjustment.

Closing is expected in early January, subject to customary conditions.

Post-synergy pro forma leverage is anticipated to be 4.5x.

Hostess is a Kansas City, Mo.-based packaged food company. Voortman is a Burlington, Ont.-based manufacturer of wafers as well as sugar-free and specialty cookies.

Applied Systems modified

Applied Systems tightened the original issue discount on its fungible $150 million incremental first-lien term loan B due Sept. 19, 2024 to 99.25 from 99.03, and on its fungible $60 million incremental second-lien term loan due Sept. 19, 2025 to 99.75 from 99.5, a market source remarked.

Pricing on the incremental first-lien term loan is Libor plus 325 bps with a step-down to Libor plus 300 bps at 4.75x net first-lien leverage and a 1% Libor floor, in line with existing first-lien term loan pricing, and the incremental second-lien term loan is priced at Libor plus 700 bps with a 1% Libor floor, in line with the existing second-lien term loan.

Recommitments were due at 4 p.m. ET on Wednesday and allocations are targeted for Thursday.

Nomura is leading the deal that will be used to fund the acquisition of Indio Technologies Inc., a provider of a workflow management platform that delivers a suite of web-based solutions for insurance agencies.

Closing is expected during the week of Dec. 16, the source added.

Applied Systems is a University Park, Ill.-based cloud software provider to the property & casualty and benefits insurance industry.

Generac updated

Generac Power Systems firmed the issue price on its $830 million seven-year term loan B (BB) at par, the tight end of the 99.875 to par talk, a market source said.

The term loan is priced at Libor plus 175 bps with a 0% Libor floor, and has 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to amend and extend an existing term loan due 2023.

Generac is a Waukesha, Wis.-based designer and manufacturer of generators.

WIRB-Copernicus accelerated

WIRB-Copernicus Group moved up the commitment deadline for its $920 million first-lien term loan (B2/B) to 5 p.m. ET on Thursday from 5 p.m. ET on Friday, according to a market source.

Talk on the first-lien term loan is Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1.39 billion of credit facilities also include a $125 million revolver (B2/B) and a $345 million privately placed second-lien term loan.

Barclays, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BMO Capital Markets, Golub Capital and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners LP.

Closing is expected in the first quarter of 2020, subject to customary approvals.

WIRB-Copernicus is a Princeton, N.J.-based provider of clinical trial optimization solutions.

Liaison revises deadline

Another deal to update timing was Liaison, as the deadline for its $225 million seven-year covenant-lite first-lien term loan was accelerated to 5 p.m. ET on Thursday from 5 p.m. ET on Monday, a market source said.

The term loan is talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $240 million of credit facilities (B2/B) also include a $15 million revolver.

Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Meritage Group.

Liaison is an admission management software provider for higher education.

NFP readies deal

NFP set a lender call for Thursday to launch a $125 million incremental term loan B, according to a market source.

BofA Securities, Inc. is leading the debt that will be used for mergers and acquisitions.

NFP is a New York-based insurance broker and consultant.

Refinitiv on deck

Refinitiv scheduled a lender call for Thursday to launch a new loan transaction, a market source remarked.

BofA Securities, Inc. is leading the deal.

Refinitiv is a data and financial technology platform.

Walker & Dunlop wraps

Walker & Dunlop Inc. completed syndication of its $298 million term loan B in line with talk 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.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading. Wells Fargo is the administrative agent.

Proceeds will be used to reprice an existing term loan B down from Libor plus 225 bps with a 0% Libor floor.

Walker & Dunlop is a Bethesda, Md.-based provider of commercial real estate financial services.

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