Vistra Group breaks; Kenan Advantage accelerates deadline; CGG terminates term loan plans

By Sara Rosenberg

New York, July 21 – Vistra Group’s credit facility freed up for trading on Tuesday, and Numericable’s term loan debt was slightly lower to unchanged following word that the company is seeking additional term loan borrowings.

Meanwhile, in the primary market, Kenan Advantage Group Inc. moved up the commitment deadline on its credit facility and CGG Holding (U.S.) Inc. withdrew its term loan from market.

Also, Cast & Crew Entertainment Services, Hill-Rom Holdings Inc. and 888 Holdings Ltd. plc came out with price talk with launch, Lightower Fiber Networks and Mohegan Tribal Gaming Authority circulated original issue discount guidance on their add-on term loans, and Asurion LLC and Antares Capital surfaced with new deal plans.

Vistra begins trading

Vistra’s credit facility hit the secondary market on Tuesday, with the $257.5 million seven-year first-lien covenant-light term loan (B1) quoted at par bid, 100¾ offered and the €238 million seven-year first-lien covenant-light term loan (B1) quoted at 100¼ bid, 101 offered, according to a trader.

In addition, the company’s $100 million eight-year second-lien term loan (B2) and its €78.5 million eight-year second-lien term loan (B2) were seen at par bid, the trader said.

Pricing on the first-lien term loan debt is Libor/Euribor plus 375 basis points with a 1% floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

The second-lien term loans are priced at Libor/Euribor plus 800 bps with a 1% floor, and were issued at 99.5. This debt has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loans was lowered from talk of Libor/Euribor plus 400 bps to 425 bps, and the discount was tightened from 99, and pricing on the second-lien debt firmed at the low end of the Libor/Euribor plus 800 bps to 825 bps talk while the discount was modified from 98.5.

Vistra getting revolver

Along with the first-and second-lien term loans, Vistra’s $750 million credit facility provides for a $50 million revolver (B1).

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and DBS Bank are leading the deal that will be used to help fund the buyout of the company by Baring Private Equity Asia from IK Investment Partners.

Closing is subject to regulatory approvals.

Vistra Group is a Hong Kong-based provider of company formations, trust, corporate and fund administration services.

Numericable down to flat

Numericable’s term loan B-1 and B-2 debt was quoted by some traders as a little weaker on the day and by others as unchanged after the company launched a new €800 million-equivalent U.S. dollar and euro seven-year first-lien covenant-light term loan.

The B-1 and B-2 loans were quoted by one trader at 100½ bid, 100¾ offered, down an eighth of a point from Monday, and by another trader at 100½ bid, 101 offered, in line with prior levels.

Proceeds from the new term loan will be used to refinance revolver borrowings.

The new term loan, which launched with a call at 10:30 a.m. ET on Tuesday, is talked at Libor/Euribor plus 325 bps with a 0.75% floor, an original issue discount of 99.5 and 101 soft call protection for six months, and commitments are due on Friday, a market source said.

Credit Suisse Securities (USA) LLC and BNP Paribas Securities Corp. are the joint physical bookrunners on the deal, and Barclays, Credit Agricole, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Nomura and RBC Capital Markets are also bookrunners.

Numericable is a Lille, France-based cable operator. The borrowers on the term loan are Numericable-SFR SA and Numericable US LLC.

Kenan revises timing

Kenan Advantage accelerated the commitment deadline on its $1,025,000,000 senior secured credit facility (Ba3/BB) to noon ET on Tuesday from July 27 due to strong demand, a market source said.

The facility consists of a $125 million revolver, a $750 million term loan and $150 million delayed-draw term loan that can only be used for permitted acquisitions.

Talk on the term loans is Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Of the total delayed-draw term loan amount, some is being sold as a strip with the funded term loan and some is being held by relationship banks.

KeyBanc Capital Markets LLC and Goldman Sachs Bank USA are leading the deal that will be used with $405 million of bonds to help fund the buyout of the company by Omers Private Equity from Goldman Sachs Capital Partners and Centerbridge Partners.

Closing is expected in the third quarter.

Kenan Advantage is a North Canton, Ohio-based provider of liquid bulk transportation services.

CGG pulls loan

CGG Holding shelved its $350 million six-year senior secured term loan (Ba1/B+) that was talked at Libor plus 750 bps with a 1% Libor floor, an original issue discount of 95 and 101 soft call protection for one year, according to a source.

Before the decision was made to withdraw the transaction, pricing on the loan had been lifted from Libor plus 650 bps, the discount was revised from 98.5, a 4.5 times total net leverage test was added to the initially covenant-light deal and a springing maturity was added three months inside any bond maturing after the company’s 2017 notes.

Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp. and RBC Capital Markets were leading the deal that was going to be used to repay revolver borrowings and for general corporate purposes.

CGG is a Paris-based manufacturer of seismic equipment and a provider of geoscience services.

Cast & Crew reveals talk

Cast & Crew Entertainment Services held its bank meeting on Tuesday morning, and with the event, price talk on its first-and second-lien term loans was disclosed, according to a market source.

The $270 million seven-year first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, and the $95 million eight-year second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $430 million credit facility also includes a $65 million five-year revolver.

Commitments are due on Aug. 4, the source added.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Societe Generale are leading the deal that will be used to help fund the buyout of the company by Silver Lake from ZM Capital, subject to customary conditions.

First-lien leverage is 4.4 times, and total leverage is around 6 times.

Cast & Crew is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry.

Hill-Rom launches

Hill-Rom Holdings launched with a bank meeting its $725 million seven-year term loan B with talk of Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

The company’s $2,225,000,000 senior secured credit facility (Ba1/BBB) also includes a $500 million revolver and a $1 billion term loan A.

Commitments are due at noon ET on July 30, the source added.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citizens Bank and PNC Capital Markets are leading the deal that will be used to help fund the acquisition of Welch Allyn Inc., a Skaneateles Falls, N.Y.-based manufacturer of medical diagnostic equipment, for about $1,625,000,000 in cash and around 8.1 million newly issued shares of Hill-Rom common stock.

The Chicago-based medical technology company also received a commitment for a $500 million senior unsecured bridge loan to fund the acquisition.

Leverage will be 4.5 times.

Closing is expected by the end of September, subject to regulatory approval and other conditions.

888 guidance emerges

888 Holdings came out with talk of Libor/Euribor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $600 million-equivalent U.S. dollar and euro covenant-light six-year term loan, a source remarked.

The U.S. tranche of the term loan is expected to be greater than or equal to $350 million.

The company’s $650 million-equivalent credit facility also includes a $50 million five-year multi-currency revolver.

A bank meeting for European investors took place in London on Tuesday, and a bank meeting for U.S. investors will take place at 10 a.m. ET in New York on Wednesday.

Commitments from European lenders are due on Aug. 4 and from U.S. lenders are due on Aug. 5, the source added.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used to help fund the acquisition of bwin.party digital entertainment plc for about £898.3 million. bwin.party shareholders will get 39.45p in cash and 0.404p in new 888 shares.

888 and bwin.party are Gibraltar-based online gaming companies.

Lightower sets discount talk

Lightower Fiber Networks launched with a call its fungible $829 million add-on first-lien term loan due April 2020 with original issue discount talk of 99 to 99.5, according to a market source.

The add-on term loan is priced at Libor plus 325 bps with a 0.75% Libor floor, in line with the company’s existing first-lien term loan, and all of the debt will get 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC, Jefferies Finance LLC, Morgan Stanley Senior Funding, SunTrust Robinson Humphrey Inc., UBS AG and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the company’s $1.9 billion merger with Fibertech Networks.

Closing is expected in the third quarter, subject to regulatory approvals.

Lightower is a Boxborough, Mass.-based provider of custom, high-capacity network services. Fibertech, a Court Square Capital Partners portfolio company, is a Rochester, N.Y.-based provider of fiber-optic based network services.

Mohegan releases discount

Mohegan Tribal Gaming Authority held its call in the morning, launching its fungible $90 million add-on term loan with original issue discount talk of 99.5, a market source said.

The add-on term loan is priced in line with the company’s existing term loan at Libor plus 450 bps with a 1% Libor floor.

Commitments are due on July 28, the source added.

Citizens Bank is leading the deal that will be used to partially refinance the company’s 11% senior subordinated notes due 2018.

Mohegan Tribal is an Uncasville, Conn.-based operator of gaming and entertainment enterprises.

Asurion joins calendar

Asurion set a lender call for 10:30 a.m. ET on Wednesday to launch $1.15 billion of term loans, according to a market source.

The debt consists of a $700 million seven-year first-lien term loan and a fungible $450 million add-on second-lien term loan, the source remarked.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance an existing $250 million term loan and for general corporate purposes, including buying minority equity.

Asurion is a Nashville-based provider of technology protection services.

Antares coming soon

Antares Capital scheduled a bank meeting for 11 a.m. ET in New York on Monday to launch a $3.2 billion five-year senior secured credit facility that includes a $2 billion revolver and a $1.2 billion term loan A, a market source said.

Pricing on the revolver and term loan A will be on a ratings-based grid.

Commitments are due by 5 p.m. ET on Aug. 12.

The company is also seeking a $10,706,000,000 asset-based facility, the source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are leading the deal that will be used to help fund the $12 billion acquisition of the company by CPPIB Credit Investments Inc., a subsidiary of Canada Pension Plan Investment Board, from GE Capital.

Closing is expected in the third quarter, subject to customary regulatory approvals and conditions.

Antares is a Chicago-based lender to middle market private equity sponsors.

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