Veritext breaks; Authentic, WideOpenWest, Installed, Paragon, Secretariat and more set talk

By Sara Rosenberg

New York, Dec. 1 – Veritext Corp. (VT TopCo Inc.) saw its incremental first-lien and incremental delayed-draw term loans make their way into the secondary market on Wednesday, and the debt was bid above their original issue discounts.

Over in the primary market, Authentic Brands Group, WideOpenWest Finance LLC (WOW!), Installed Building Products Inc., Paragon Films (Secure Acquisition Inc.), Secretariat International, Cast & Crew Entertainment Services and OEConnection announced price talk with launch.

Also, Digital Room, Protective Industrial Products Inc., Generation Bridge II LLC, Circor International Inc., ICU Medical Inc. and ScionHealth (Knight Health Holdings LLC) joined this week’s new issue calendar.

Veritext frees up

Veritext’s fungible $150 million incremental first-lien term loan due Aug. 4, 2025 and fungible $26.25 million incremental delayed-draw first-lien term loan that is available until Aug. 4, 2023 broke for trading on Wednesday, with the strip of debt quoted at 99 5/8 bid, according to a market source.

Pricing on the term loan debt (B2/B) is Libor plus 375 basis points with a 0.75% Libor floor, in line with existing first-lien term loan pricing. The incremental term loan was sold at an original issue discount of 99.25 and the incremental delayed-draw term loan was issued at a discount of 99.5, to be paid at the time of drawing. The debt has 101 soft call protection until Feb. 4, 2022 and the delayed-draw ticking fee is the full spread at close.

Jefferies LLC is leading the deal that will be used to fund a distribution to shareholders.

Pro forma for the transaction, the first-lien term loan will total $550 million and the delayed-draw term loan will total $96.25 million.

Veritext is a Livingston, N.J.-based provider of deposition and litigation support solutions for law firms and corporations.

Authentic proposed terms

Moving to the primary market, Authentic Brands held its lender call in the afternoon and announced price talk on its $1.675 billion seven-year incremental first-lien term loan (B1/B) and $500 million eight-year second-lien term loan (Caa1/CCC+), a market source said.

Price talk on the first-lien term loan is SOFR + CSA plus 350 bps to 375 bps with a 0.5% floor and an original issue discount of 99 to 99.5, and talk on the second-lien term loan is SOFR + CSA plus 650 bps with a 0.5% floor and a discount of 99, the source continued.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

Commitments are due at noon ET on Dec. 10, the source added.

Authentic buying Reebok

Authentic Brands will use the new term loans to fund its acquisition of Reebok from adidas for up to €2.1 billion, with the majority to be paid in cash at closing of the transaction and the remainder comprised of deferred and contingent consideration, and to finance a recapitalization in connection with the purchase of significant equity stakes in Authentic Brands by CVC Capital Partners and HPS Investment Partners.

BofA Securities Inc., Goldman Sachs Bank USA, KeyBanc Capital Markets, Jefferies LLC and UBS Investment Bank are leading the first-lien loan. BofA Securities is the lead on the second-lien loan.

Authentic Brands is a New York-based acquirer and manager of consumer brands in the fashion, sports and celebrity/entertainment sectors. Reebok is a footwear and clothing company.

WideOpenWest talk

WideOpenWest released talk of SOFR plus 300 bps with a 0.5% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months on its $730 million covenant-lite first-lien term loan B (B1/BB) due December 2028 that launched with a call in the morning, according to a market source.

Commitments are due at noon ET on Dec. 8, the source added.

Morgan Stanley Senior Funding Inc., KeyBanc Capital Markets, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Regions Bank, Wells Fargo Securities LLC and M&T Bank are leading the deal, which will be used to refinance an existing term loan B and pay related fees and expenses.

WideOpenWest is an Englewood, Colo.-based broadband services provider.

Installed holds call

Installed Building Products held its call in the afternoon and launched its $500 million seven-year term loan B (Ba2/BB+) at talk of Libor plus 225 bps to 250 bps with a 0.5% Libor floor and an original issue discount of 99.5, a market source remarked.

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

Commitments are due at noon ET on Dec. 14, the source added.

RBC Capital Markets is the left lead on the deal that will be used to refinance an existing $200 million term loan B due April 2025 as well as for acquisitions, other growth initiatives and general corporate purposes.

Closing is expected this month.

Installed Building Products is a Columbus, Ohio-based installer of insulation and complementary building products.

Paragon guidance

Paragon Films came out with price talk on its $345 million seven-year first-lien term loan (B2/B-) and $100 million eight-year second-lien term loan (Caa2/CCC) shortly before its morning lender call began, according to a market source.

Talk on the first-lien term loan, which includes a$45 million delayed-draw tranche, is Libor plus 475 bps to 500 bps with a 0.5% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 0.5% Libor floor and a discount of 98.5, the source said.

Ticking fees on the delayed-draw are half the margin from days 61 to 120 and the full margin thereafter.

The first-lien term 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 at noon ET on Dec. 14.

Paragon lead banks

Credit Suisse Securities (USA) LLC, BMO Capital Markets, KKR Capital Markets and RBC Capital Markets are leading Paragon Films’ term loans.

The new debt will be used to help fund the buyout of the company by Rhone Capital.

Closing is expected this year.

Paragon Films is a Broken Arrow, Okla.-based manufacturer of ultra high-performance cast stretch films that are principally used to unitize product loads while in storage and transit.

Secretariat proposed terms

Secretariat International launched on its morning call its $190 million seven-year first-lien term loan and $30 million delayed-draw first-lien term loan at talk of Libor plus 475 bps with a 0.75% Libor floor and an original issue discount of 99, a market source said.

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

Commitments are due at noon ET on Dec. 15, the source added.

KeyBanc Capital Markets, Jefferies LLC and Bank of Ireland are leading the deal that will be used with a $70 million eight-year privately placed second-lien term loan to help fund the acquisition of the company by JLL Continuation Fund from another JLL fund and to refinance existing debt.

Secretariat is a specialty consulting firm providing independent advisory services and expert testimony to clients involved in disputes or litigation related to construction delays or damages.

Cast & Crew talk

Cast & Crew announced talk of Libor plus 375 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months on its non-fungible $250 million seven-year incremental first-lien term loan B that launched with an afternoon call, according to a market source.

Ticking fees on the incremental term loan are half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due on Dec. 9, the source added.

Goldman Sachs Bank USA and RBC Capital Markets are leading the deal, which will be used to fund the acquisition of The Team Cos., a Los Angeles-based payroll and production management solutions company servicing the advertising, music, and concert tours and live events industries, from TorQuest Partners.

Cast & Crew is a Burbank, Calif.-based provider of software and services to the entertainment production industry.

OEConnection launches

OEConnection held its lender meeting in the morning, launching a fungible $120 million incremental first-lien term loan talked with an original issue discount of 99.03, a market source remarked.

Like the existing loan, the incremental first-lien term loan is priced at Libor plus 400 bps with no floor.

Commitments are due on Dec. 8, the source added.

Antares Capital is leading the deal that will be used with a $120 million pre-placed incremental second-lien term loan and a $100 million pre-placed PIK preferred to fund the acquisition of Opstrax, a provider of OEM/aftermarket parts procurement and logistics software.

Genstar is the sponsor.

Pro forma for the transaction, the first-lien term loan will total $723 million.

OEConnection is a Cleveland-based provider of SaaS solutions that help drive genuine OE parts sales and services across the entire automotive system.

Digital Room readies deal

Digital Room set a bank meeting for Thursday to launch its previously announced $340 million first-lien term loan (B2), according to a market source.

The company’s $530 million of senior secured credit facilities also include a $50 million revolver (B2) and a $140 million privately placed second-lien term loan (Caa2).

UBS Investment Bank, BNP Paribas Securities Corp., Nomura and CBAM are leading the deal that will be used with equity to fund the buyout of the company by Sycamore Partners.

Digital Room is a Sherman Oaks, Calif.-based provider of customized marketing solutions to small- and medium-sized businesses.

Protective Industrial on deck

Protective Industrial Products will hold a lender call at 1 p.m. ET on Thursday to launch a fungible $80 million add-on covenant-lite term loan B due 2027 talked with an original issue discount of 99.5, a market source said.

Pricing on the add-on term loan is Libor plus 400 bps with a 0.75% Libor floor, in line with existing term loan pricing, and all of the debt is getting 101 soft call protection for six months.

Commitments are due on Dec. 9, the source added.

Antares Capital, Citizens Bank and Bank of Ireland are leading the deal that will be used to fund an acquisition.

Pro forma for the transaction, the term loan B will total $650 million.

Protective Industrial Products is a Latham, N.Y.-based provider of personal protective equipment and industrial safety products.

Generation coming soon

Generation Bridge II scheduled a lender call for 10 a.m. ET on Thursday to launch $365 million of senior secured term loans, according to a market source.

The debt is split between a $325 million seven-year term loan B and a $40 million seven-year term loan C, the source said.

Commitments are due at 5 p.m. ET on Dec. 15.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and MUFG are leading the deal that will be used to fund the acquisition of power generation facilities from PSEG.

Generation Bridge is an operator of power generation facilities.

Circor joins calendar

Circor International emerged with plans to hold a lender call at 10 a.m. ET on Friday to launch $630 million of credit facilities, a market source remarked.

The facilities consist of a $100 million five-year revolver and a $530 million seven-year term loan B, the source added.

Truist Securities, Citizens Bank and KeyBanc Capital Markets are leading the deal that will be used to refinance existing debt and pay transaction related fees.

Circor is a Burlington, Mass.-based provider of mission critical flow control products and services for the industrial and aerospace & defense markets.

ICU readies loan

ICU Medical will hold a lender call at 11 a.m. ET on Thursday to launch an $850 million seven-year senior secured term loan B, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Barclays, Wells Fargo Securities LLC, BofA Securities Inc., Bank of the West, Citigroup Global Markets Inc., MUFG, US Bank and KeyBanc Capital Markets are leading the deal that will be used to help fund the acquisition of Smiths Medical, a medical device company, from Smith Group plc for $1.85 billion in cash and the issuance of 2.5 million shares of common stock.

ICU Medical is a San Clemente, Calif.-based manufacturer of medical devices used in vascular therapy, critical care and oncology applications.

ScionHealth plans call

ScionHealth set a lender call for 1 p.m. ET on Thursday to launch a $450 million seven-year senior secured term loan B, a market source said.

The term loan has 101 soft call protection for six months, the source added.

Barclays is the left lead on the deal that will be used to fund the acquisition of Kindred Healthcare’s long-term acute care business and 18 of LifePoint Health’s community hospitals and associated health systems.

ScionHealth is a Louisville, Ky.-based healthcare services company being formed in connection with the acquisition by LifePoint of Kindred.

The launch of ScionHealth and the acquisition of Kindred are expected to be completed by the end of the year.

© 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.