Macom, Styrolution hit secondary; LPL Holdings, American Axle, KeyPoint changes surface

By Sara Rosenberg

New York, March 8 – Macom Technology Solutions Inc. eliminated the Libor floor from its term loan and added a leverage-based pricing step-down and Ineos Styrolution Group GmbH firmed pricing on its U.S. term loan at the tight end of guidance, and then both of these deals freed up for trading on Wednesday.

In more happenings, LPL Holdings Inc. cut pricing on its term loan B and revised the original issue discount, and American Axle & Manufacturing Holdings Inc. tightened the spread and issue price on its term loan B while also extending the call protection.

Also, KeyPoint Government Solutions Inc. downsized its revolver and term loan B and shortened maturities, increased B loan pricing, extended the call protection and made a number of other documentation changes, and Arctic Glacier LLC and Resolute Investment Managers accelerated the commitment deadlines on their loans.

Furthermore, Greektown Holdings LLC disclosed price talk with launch, and Suddenlink Communications, Camping World Good Sam, Infogroup and Sterling Talent Solutions joined the near-term primary calendar.

Macom tweaked, breaks

Macom Technology Solutions changed the Libor floor on its $590 million first-lien term loan due May 2021 to 0% from 0.75% and added a pricing step-down to Libor plus 275 basis points when gross first-lien leverage is below 2 times, according to a market source.

As before, initial pricing on the loan is Libor plus 300 bps, the debt is offered at par, and there is 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Wednesday, and not too long thereafter the loan began trading with levels quoted at par ½ bid, 101¼ offered, the source said.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Citizens Bank are leading the deal that will be used to reprice an existing term loan from Libor plus 375 bps with a 0.75% Libor floor.

Closing is expected on Friday.

Macom is a Lowell, Mass.-based supplier of high-performance analog RF, microwave, millimeterwave and photonic semiconductor products.

Ineos sets terms, trades

Ineos Styrolution finalized the spread on its $419 million term loan B due 2024 at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, and set the issue price at par, the tight end of the 99.875 to par talk, a market source said.

The U.S. term loan still has a 0% Libor floor and 101 soft call protection for six months.

With terms firmed up, the U.S. term loan broke for trading, and levels were quoted at par ¼ bid, par ¾ offered, a trader added.

Along with the U.S. term loan, the company is also a €623 million term loan B due 2024.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the bookrunners on the deal (Ba3/BB), with Credit Suisse the left lead on the U.S. loan and JPMorgan the left lead on the euro loan.

Proceeds will be used to refinance and extend an existing $419 million term loan B and an existing €623 million term loan B.

Ineos Styrolution is a Frankfurt, Germany-based styrenics supplier with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties.

LPL flexes

LPL Holdings cut pricing on its $1.7 billion term loan B due 2024 to Libor plus 250 bps from talk of Libor plus 275 bps to 300 bps and moved the original issue discount to 99.75 from 99.5, according to a market source.

The term loan B still has a 0% Libor floor and 101 soft call protection for six months.

The company’s $2.2 billion credit facility (Ba2/BB-) also includes a $500 million revolver with pricing that ranges from Libor plus 150 bps to 200 bps based on secured net leverage.

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Citizens Bank, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with $500 million in senior notes due 2025 to refinance existing bank debt.

Closing is expected on Friday.

LPL Holdings is a Boston-based investment company.

American Axle modified

American Axle lowered pricing on its $1.55 billion seven-year term loan B to Libor plus 225 bps from talk of Libor plus 250 bps to 275 bps, revised the original issue discount to 99.75 from 99.5 and extended the 101 soft call protection to one year from six months, a market source said.

The term loan B still has a 0.75% Libor floor.

The company’s $2.45 billion senior secured credit facility (Ba2/BB/BB+) also includes an $800 million five-year revolver and a $100 million five-year term loan A.

J.P Morgan Securities LLC is leading the deal that will be used with $1.2 billion of senior notes to fund the acquisition of Metaldyne Performance Group Inc. for about $1.6 billion in cash and stock, plus the assumption of $1.7 billion in net debt. Each share of Metaldyne’s common stock will be converted into the right to receive $13.50 per share in cash and 0.5 of a share of American Axle common stock.

Closing is expected in the first half of this year, subject to shareholder and regulatory approval.

American Axle is a Detroit-based manufacturer of driveline and drivetrain systems and related components. Metaldyne is a Plymouth, Mich.-based provider of components for use in powertrain and suspension applications.

KeyPoint reworks deal

KeyPoint Government Solutions trimmed its term loan B to $210 million from $250 million, raised pricing to Libor plus 525 bps from Libor plus 425 bps, extended the 101 soft call protection to one year from six months, shortened the maturity to five years from seven years and raised amortization to 5% per annum, paid quarterly beginning first quarter 2018, from 1% per annum, according to a market source.

Also, the term loan B excess cash flow sweep was revised to 75%, stepping down to 50% at total net leverage of 3.5 times, 25% at total net leverage of 2.75 times and 0% at total net leverage of 2 times, from 50% with step-downs to 25% at 3.75 times total net leverage and 0% at 3 times total net leverage.

The term loan B still has a 1% Libor floor and an original issue discount of 99.

Regarding the company’s revolver, it was downsized to $10 million from $15 million, and the maturity was shortened to 4.5 years from five years, the source said.

KeyPoint revises covenant

Another change made to KeyPoint’s credit agreement was that the total net leverage covenant was adjusted to 6 times through Sept. 30 from 6.75 times, 5.75 times through Dec. 31 from 6.5 times, 5.5 times through June 30, 2018 from 6.25 times, 5.25 times through March 31, 2019 from 6 times and 4.25 times through March 31, 2020 from 5 times.

Furthermore, a $10 million available amount starter basket was removed, a $20 million general restricted payments basket was removed, a leverage prong on all ratio-based negative covenants was reduced by 0.75 times, and the incremental allowance was reduced to $10 million plus unlimited amounts up to closing total net leverage from $40 million plus unlimited amounts up to closing total net leverage, the source continued.

Final commitments are due at 5 p.m. ET on Thursday, the source added.

Barclays is leading the deal that will be used to refinance the company’s existing term loan, fund a dividend to shareholders and pay transaction-related fees and expenses.

KeyPoint is a Loveland, Colo.-based provider of background investigative services for the federal government.

Arctic moves deadline

Also in the primary market, Arctic Glacier accelerated the commitment deadline on its $475 million credit facility (B2/B-) to 5 p.m. ET on Friday from 5 p.m. ET on March 15, a market source said.

The facility consists of a $60 million revolver, and a $415 million seven-year covenant-light first-lien term loan talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Societe Generale are leading the deal that will be used to help fund the buyout of the company by the Carlyle Group.

Arctic Glacier is a Winnipeg, Man.-based manufacturer and distributor of packaged ice.

Resolute adjusts timing

Resolute Investment Managers moved up the commitment deadline on its fungible $75 million add-on first-lien term loan to noon ET on Friday from Tuesday, according to a market source.

Pricing on the add-on loan is Libor plus 450 bps with a 1% Libor floor, and the debt is talked with an original issue discount of 99.5.

The add-on and the existing first-lien term loan will get 101 soft call protection for six months.

RBC Capital Markets and Barclays are leading the deal that will be used to help fund the acquisition of a controlling interest of Shapiro Capital Management LLC.

With this transaction, the company is seeking an amendment to its existing credit agreement, and consenting lenders are being offered a 25 bps fee.

Resolute Investment, formerly known as American Beacon Advisors Inc., is an Irving, Texas-based provider of investment advisory services to institutional and retail markets. Shapiro is an Atlanta-based investment adviser.

Greektown sets talk

Greektown Holdings held its bank meeting on Wednesday, launching its $375 million seven-year covenant-light first-lien term loan B (B2) with price talk of Libor plus 325 bps with a 0.75% 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 5 p.m. ET on March 22.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies Finance LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Greektown is a gaming, hotel, dining and entertainment facility in Detroit.

Suddenlink joins calendar

Suddenlink Communications emerged with plans to hold a lender call at 11 a.m. ET on Thursday to launch a $1,265,000,000 eight-year senior secured term loan B talked at Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET Tuesday, the source said.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc., RBC Capital Markets, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Bank of Nova Scotia and TD Securities (USA) LLC are leading the deal that will be used to refinance an existing term loan B and repay some notes.

Suddenlink is a cable and broadband service provider.

Camping World on deck

Camping World Good Sam set a lender call for 11 a.m. ET on Thursday to launch a fungible $80 million add-on first-lien term loan due November 2023 talked with an original issue discount of 99.75, according to a market source.

Pricing on the add-on is Libor plus 375 bps with a 0.75% Libor floor, in line with existing first-lien term loan pricing.

Commitments are due at 5p.m. ET on Monday, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to fund acquisitions.

Camping World is a Lincolnshire, Ill.-based seller of RVs and supplier of RV parts, supplies and accessories.

Infogroup coming soon

Infogroup scheduled a bank meeting for 2 p.m. ET in New York on Monday to launch a new first-lien senior secured term loan, a market source said.

Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Court Square Capital Partners.

Infogroup is a Papillion, Neb.-based provider of data and data-driven marketing services.

Sterling readies deal

Sterling Talent Solutions set a lender call for 11 a.m. ET on Friday to launch a repricing of its $493.6 million term loan B, from Libor plus 475 bps with a 1% Libor floor, a market source remarked.

Goldman Sachs Bank USA and KeyBanc Capital Markets LLC are leading the deal.

Sterling Talent Solutions is a Seattle-based provider of background screening solutions.

Avis closes

In other news, Avis Budget Group Inc. completed its $1.15 billion term loan B due March 2022, according to a news release.

Pricing on the loan is Libor plus 200 bps with a 0% Libor floor, and it was sold at an original issue discount of 99.965. The debt has 101 soft call protection for six months.

During syndication, pricing on the loan firmed at the low end of the Libor plus 200 bps to 225 bps talk and the discount finalized within the 99.875 to par talk.

J.P. Morgan Securities LLC led the deal that was used to refinance an existing term loan due in 2019 priced at Libor plus 225 bps with a 0.75% Libor floor, to reprice an existing term loan due in 2022 from Libor plus 250 bps with a 0.75% Libor floor, and to redeem some floating-rate notes.

Avis is a Parsippany, N.J.-based provider of vehicle rental services.

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