Xperi frees to trade; United PF discloses talk; Hamilton Projects, Hearthside on deck

By Sara Rosenberg

New York, June 1 – Xperi Corp. reduced the size of its term loan B and firmed the original issue discount within revised price talk, and then the debt made its way into the secondary market on Monday.

In other news, United PF Holdings LLC released price guidance on its incremental first-lien term loan with its lender call, and Hamilton Projects Acquiror LLC and Hearthside Food Solutions LLC (H-Foods Holdings LLC) joined this week’s primary loan calendar.

Xperi updated

Xperi trimmed its five-year covenant-lite term loan B (Ba3/BB-) to $1.05 billion from $1.1 billion and set the original issue discount at 90.5, within adjusted talk in the range of 90 to 92 and wide of initial talk of 96, according to a market source.

As before, the term loan is priced at Libor plus 400 basis points with a 0% Libor floor and has 101 soft call protection for one year.

Earlier in syndication, the term loan maturity was shortened from six years, and amortization was changed to 5% per annum in years one, two and three, and 7.5% per annum onwards.

BofA Securities, Inc., RBC Capital Markets and Barclays are leading the deal.

Xperi starts trading

Late in the day, Xperi’s term loan B broke for trading, with levels quoted at 91 bid on the open and, shortly thereafter, the debt moved up to 94¼ bid, 95¼ offered, a trader added.

Proceeds will be used to refinance Xperi’s debt and TiVo Corp.’s debt in connection with the merger of the two companies, which was completed on Monday.

Xperi and TiVo merged in an all-stock transaction, representing about $3 billion of combined enterprise value. The merger agreement provided for a 0.455 fixed exchange ratio.

Xperi is a San Jose, Calif.-based licenser of technologies and intellectual property. TiVo is a San Jose, Calif.-based provider of technology and services for digital video recorders.

United PF guidance

United PF Holdings held its lender call on Monday afternoon and announced talk on its $100 million incremental first-lien term loan due Dec. 30, 2026 at Libor plus 900 bps with a 1% Libor floor and an original issue discount of 97, a market source remarked.

The term loan is non-callable for one year, then at 101 in year two.

Commitments are due on Thursday, the source added.

Jefferies LLC is leading the deal that will be used to pay down an outstanding revolver balance and fund excess cash to the balance sheet.

United PF is an Austin, Tex.-based operator of Planet Fitness clubs.

Hamilton readies deal

Hamilton Projects set a lender call for 10 a.m. ET on Tuesday to launch $1.015 billion of senior secured credit facilities, according to a market source.

The facilities consist of a $115 million revolver and a $900 million first-lien term loan B, the source said.

Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund the acquisition of Liberty Energy Center and Patriot Energy Center by Carlyle Power Partners and EIG Management Co.

Liberty and Patriot are two natural gas-fired combined cycle gas power plants located in the PJM-MAAC capacity zone. The plants have a combined generating capacity of 1,671 MW.

Hearthside joins calendar

Hearthside Food Solutions emerged with plans to hold a lender call at 12:30 p.m. ET on Tuesday to launch a non-fungible $100 million incremental first-lien term loan B-3 due May 2025, a market source said.

Talk on the incremental term loan is Libor plus 500 bps with a 1% Libor floor, an original issue discount of 96 to 97 and 101 soft call protection for one year, the source added.

Commitments are due at 5 p.m. ET on Thursday.

Barclays is the left lead on the deal that will be used to repay revolver borrowings.

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

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