Idera, Filtration Group, Ivanti, Belmond, Sterling break; Exela, Horseshoe Baltimore revised

By Sara Rosenberg

New York, June 27 – Idera moved some funds between its first-and second-lien term loans and firmed spreads at the high end of guidance, and Filtration Group Corp. set pricing on its term loan at the wide end of talk and extended the call protection, and then both of these deals freed up for trading on Tuesday.

Also, Ivanti Software Inc. upsized its incremental term loan B and firmed the issue price at the wide side of talk before hitting the secondary market, and deals from Belmond Interfin Ltd. and Sterling Talent Solutions broke as well.

In more happenings, Exela Technologies reduced the size of its term loan B, widened the spread and original issue discount, and extended the call protection, Horseshoe Baltimore (CBAC Gaming LLC) lifted pricing on its term loan, added a step-down and sweetened the call premium, and DexKo Global Inc. and Archroma disclosed price talk with launch.

Idera reworked, frees up

Idera upsized its seven-year covenant-light first-lien term loan to $550 million from $525 million and set pricing at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk, while leaving the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

Also, the company downsized its eight-year covenant-light second-lien term loan to $150 million from $175 million and firmed pricing at Libor plus 900 bps, the high end of the Libor plus 875 bps to 900 bps talk, the source said. This tranche still has a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

The company’s $730 million of credit facilities also include a $30 million revolver.

Recommitments were due at noon ET on Tuesday and then the debt broke for trading with the first-lien term loan quoted at 99½ bid, par ½ offered and the second-lien term loan quoted at 98½ bid, the source added.

Jefferies LLC and RBC Capital Markets LLC are leading the deal that will help fund the buyout of the company by HGGC LLC. Current owner, TA Associates, will retain a significant stake in the company.

Idera is a Houston-based provider of software tools for databases.

Filtration tweaked, trades

Filtration Group finalized pricing on its $1,154,000,000 senior secured term loan B due November 2020 at Libor plus 300 bps, the high end of the Libor plus 275 bps to 300 bps talk, and extended the 101 soft call protection to one year from six months, a market source said.

The term loan, which will be sized at $1,151,000,000 pro forma for a June 30 repayment, still has a 0% Libor floor and a par issue price.

With terms set, the loan made its way into the secondary market and levels were seen at par bid, par 3/8 offered, another source added.

Goldman Sachs Bank USA, BMO Capital Markets and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

Closing is expected during the week of July 3.

Filtration Group is a Chicago-based manufacturer and distributor of filtration products to end markets.

Ivanti updated, tops OID

Ivanti Software raised its fungible senior secured covenant-light incremental first-lien term loan B due Jan. 20, 2024 to $45 million from $40 million and finalized the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source remarked.

Pricing on the incremental loan is Libor plus 425 bps with a 1% Libor floor.

After final terms were set, the incremental loan broke for trading, with levels quoted at 99¼ bid, 99¾ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used for general corporate purposes, including to partially fund the acquisition of Project Ranger.

Closing is expected on Thursday.

Ivanti, formerly known as LANDesk Software Group Inc., is a South Jordan, Utah-based user-centered IT management company.

Belmond hits secondary

Belmond Interfin’s credit facilities freed to trade as well, with the $400 million seven-year term loan B quoted at 99 5/8 bid, par 3/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 275 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The company’s roughly $700 million of senior secured credit facilities (B2/BB) also include a $100 million multi-currency revolver and a €179 million term loan B.

The euro term loan B is priced at Euribor plus 300 bps with a 0% floor, and was issued at par. This tranche has 101 soft call protection for six months.

During syndication, pricing on the U.S. term loan B finalized at the low end of the Libor plus 275 bps to 300 bps talk, and the spread on the euro term loan B firmed at the low end of the Euribor plus 300 bps to 325 bps talk while the issue price was tightened from 99.5.

Barclays, Fifth Third and J.P. Morgan Securities LLC are leading the deal that will be used to refinance substantially all of the company’s existing debt.

Closing is expected on July 3.

Belmond is a London-based luxury hotel company and sophisticated adventure travel operator.

Sterling Talent breaks

Sterling Talent Solutions’ $646 million first-lien term loan B (B2/B) due June 19, 2024 started trading too, with levels quoted at par ¼ bid, 101 offered, a market source remarked.

Pricing on the loan is Libor plus 425 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection through Sept. 24.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets LLC and ING are leading the deal that will be used to amend and extend an existing $492 million first-lien term loan due 2022 that is priced at Libor plus 425 bps with a 1% Libor floor and will be reduced to $491.1 million pro forma for a June 30 amortization payment, to repay an outstanding revolver balance and to repay an existing $140 million second-lien term loan.

During syndication, the issue price on the $155 million of incremental term loan B debt raised was tightened from 99.75, the extension fee offered on the existing first-lien term loan was changed to 12.5 bps from 25 bps and the 101 soft call was shortened from six months.

Sterling Talent Solutions is a Seattle-based provider of comprehensive employment and background screening services.

Exela changes surface

Back in the primary market, Exela Technologies trimmed its six-year term loan B to $350 million from $525 million, raised pricing to Libor plus 700 bps from Libor plus 550 bps, moved the original issue discount to 98 from 99 and extended the 101 sift call protection to one year from six months, a market source said.

The term loan B still has a 1% Libor floor.

The company’s $450 million of senior secured credit facilities also include a $100 million revolver.

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

RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Natixis Securities Americas LLC and KKR Capital Markets LLC are leading the deal.

With the term loan B downsizing, the company upsized its secured notes offering to $1 billion from $525 million and eliminated plans to issue $300 million in unsecured notes.

Exela formation

Proceeds from Exela’s credit facilities and notes will be used to help fund its creation through the merger of Quinpario Acquisition Corp. 2, SourceHOV LLC and Novitex Holdings Inc. Shareholders of SourceHOV and Novitex are rolling 100% of the current equity, and will be the majority shareholders of the combined company.

Other funds for the roughly $2.8 billion transaction will come from cash from Quinpario, rollover equity and cash on hand at closing.

Closing is expected this quarter, subject to customary conditions, regulatory approvals, receipt of approvals from Quinpario stockholders and receipt of proceeds from debt and equity financing.

Quinpario is a St. Louis-based special purpose acquisition company. SourceHOV, majority owned by HandsOn Global Management LLC, is an Irving, Texas-based provider of Transaction Processing Solutions and Enterprise Information Management solutions. Novitex is a West Stamford, Conn.-based provider of technology-driven managed services that is owned by Apollo Global Management LLC.

Horseshoe revises deal

Horseshoe Baltimore lifted pricing on its $300 million seven-year covenant-light term loan B to Libor plus 400 bps from Libor plus 350 bps, added a step-down to Libor plus 375 bps at corporate ratings of B2/B with a stable outlook, extended the 101 soft call protection to one year from six months and removed the MFN sunset, according to a market source.

As before, the term loan has a 0% Libor floor and an original issue discount of 99.

The company’s $315 million of senior secured credit facilities (B3/B) also include a $15 million five-year revolver.

Commitments were scheduled to be due on Tuesday.

Wells Fargo Securities LLC, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will refinance an existing credit facility and an existing furniture, fixtures and equipment financing facility.

Pro forma total leverage will be 4.5 times based on March 31 last-12-months adjusted EBITDA of $68.4 million and 3.9 times based on adjusted EBITDAM.

CBAC, a joint venture between Caesars Growth Partners LLC and several other third parties, is the owner and operator of the Horseshoe Baltimore Casino in Baltimore.

DexKo reveals guidance

DexKo held its New York bank meeting on Tuesday morning and shortly before the event kicked off price talk on its first-and second-lien term loans was announced, a market source remarked. A bank meeting for European investors will take place at 8 a.m. ET in London on Wednesday.

Talk on the $570 million seven-year first-lien term loan (B2/B) is Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99.5, talk on the €357 million seven-year first-lien term loan (B2/B) is Euribor plus 450 bps to 475 bps with a 0% floor and a discount of 99.5, and talk on the $250 million eight-year second-lien term loan (Caa1/CCC+) is Libor plus 825 bps to 850 bps with a 1% Libor floor and a discount of 98.5, the source continued.

The first-lien term loans have 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.

The credit facilities also include a $150 million revolver (B2/B).

DexKo being acquired

Proceeds from DexKo’s credit facilities will be used to help fund its buyout by KPS Capital Partners LP. Upon closing, DexKo’s existing controlling shareholder, the Sterling Group LP, will continue to own a minority stake in the company.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are leading the debt financing.

Commitments are due at 5 p.m. ET on July 11.

Closing is expected around mid-year, subject to customary conditions and approvals.

DexKo is a Novi, Mich.-based supplier of highly engineered running gear technology, chassis assemblies and related components.

Archroma floats OID talk

Archroma came out with original issue discount talk of 99.5 on its $225 million first-lien term loan B-2 and €455 million first-lien term loan B-1 that launched with a lender meeting during the session, a market source remarked.

Both term loans are talked at Libor/Euribor plus 425 bps to 450 bps with a 0% floor and 101 soft call protection for six months.

Commitments are due on July 7, the source added.

The company’s credit facilities also include a $200 million eight-year second-lien term loan that was privately placed.

Bank of America Merrill Lynch and HSBC are leading the deal that will be used to refinance existing debt, with Bank of America the left lead on the U.S. first-lien term loan and HSBC the left lead on the euro first-lien term loan and the second-lien term loan.

Archroma is a Reinach, Switzerland-based provider of specialty chemicals for the textile, paper and emulsions sectors.

Oasis getting investment

In other news, it was revealed on Tuesday that Oasis Outsourcing Holdings Inc. will be getting a substantial equity investment from Kelso & Co. concurrently with its debt financing transaction that is currently in market, a market source said.

Kelso will be joining Stone Point Capital and management as investors in the company.

As previously reported, Oasis is in the process of syndicating a $325 million six-year first-lien term loan and an $85 million seven-year second-lien term loan to refinance existing debt and fund a small acquisition.

The first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the 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.

RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are leading the term loans.

Oasis is a West Palm Beach, Fla.-based provider of comprehensive and cost-effective HR outsourcing services to small- and medium-sized businesses.

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