AlixPartners term debt reacts to refinancing plans; Filtration Group modifies issue price

By Sara Rosenberg

New York, July 14 – AlixPartners LLP’s first-lien term loan B debt was stronger and its second-lien term loan was weaker in the secondary market on Tuesday after refinancing news surfaced.

Meanwhile, in the primary market, Filtration Group Corp. tightened the original issue discount on its add-on first-lien term loan, and Ascena Retail Group Inc., Builders FirstSource Inc., EagleView Technology Corp., C.H.I. Overhead Doors Inc. and MediaOcean LLC released price talk with launch.

Furthermore, Ascend Learning brought a small add-on term loan to market, and Linxens, Hostess, AccentCare, Alion Science and Technology Corp. and Vistage surfaced with new deal plans.

AlixPartners moves around

AlixPartners’ term loans B-1 and B-2 moved higher in the secondary market on Tuesday, while its second-lien term loan softened following news that the debt will be refinanced with a new $1.1 billion seven-year covenant-light term loan B (B2/B+), according to a trader.

The term loan B-1 was quoted at par bid, 100¼ offered, up from 99 7/8 bid, 100 3/8 offered, the term loan B-2 was quoted at par bid, 100¼ offered, up from 99 5/8 bid, 100 1/8 offered, and the second-lien term loan was quoted at par bid, 100½ offered, down from 101½ bid, 102½ offered, the trader said.

The company plans to launch the new term loan B with a call at 10 a.m. ET on Wednesday.

The new term loan has 101 soft call protection for six months. Price talk is not yet available.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC and UBS AG are leading the deal.

In addition to refinancing the term loans, the new debt will fund a distribution to shareholders.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

Filtration tweaks discount

Moving to the primary market, Filtration Group modified the original issue discount on its fungible $93 million add-on first-lien term loan to 99.75 from 99.5, a market source remarked.

Pricing on the add-on term loan matches the existing term loan at Libor plus 325 basis points with a 1% Libor floor.

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

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

Ascena discloses talk

Ascena Retail Group held its bank meeting on Tuesday, launching its $1.8 billion seven-year covenant-light senior secured term loan B (Ba2/BB+) with talk of Libor plus 350 bps to 375 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Goldman Sachs Bank USA and Guggenheim Securities LLC are leading the debt.

In addition, the company is getting a $600 million five-year ABL revolver priced at Libor plus 125 bps to 150 bps based on excess availability and a 20 bps to 25 bps unused fee.

Commitments are due on July 28.

Ascena buying ANN

Proceeds from Ascena’s term loan, about $143 million in ABL revolver borrowings and $150 million of balance sheet cash will be used to help fund the acquisition of ANN Inc. and refinance some existing debt.

ANN is being purchased for $37.34 in cash and 0.68 of a share of Ascena common stock in exchange for each share of ANN common stock. The enterprise value of ANN is about $2 billion.

Closing is expected during the week of Aug. 17, subject to customary conditions, including the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and ANN shareholder approval.

Total debt will be 2.2 times, and net debt will be 1.9 times.

Ascena is a Mahwah, N.J.-based specialty retailer offering clothing, shoes and accessories for missy and plus-size women. ANN is a New York-based women’s specialty retail fashion company.

Builders FirstSource launches

Builders FirstSource released talk of Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99 on its $550 million seven-year covenant-light term loan B (B3/BB-) that launched with an afternoon bank meeting, a source said.

As previously reported, the term loan B has 101 soft call protection for six months.

Commitments are due on July 23, the source added.

The company’s $1.35 billion credit facility also includes an $800 million ABL revolver.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and Keybanc Capital Markets are leading the deal.

Builders acquiring ProBuild

Proceeds from Builders FirstSource’s credit facility will be used with $750 million of senior notes and $100 million in new equity via a marketed follow-on offering to fund the acquisition of ProBuild Holdings LLC for about $1.63 billion.

Additionally, the company plans to roll over $350 million of existing Builders FirstSource senior secured notes and will assume $304 million in existing lease finance obligations.

Pro forma net debt to adjusted EBITDA is 5.6 times.

Closing is expected in the second half of this year, subject to customary conditions and regulatory approvals.

Builders FirstSource is a Dallas-based supplier and manufacturer of structural and related building products for residential new construction. ProBuild is a Denver-based supplier of lumber and building materials to professional builders and contractors.

EagleView reveals terms

EagleView Technology released pricing guidance on its $360 million senior secured credit facility in connection with its morning bank meeting, according to a market source.

The $20 million five-year revolver (B2/B) is talked at Libor plus 375 bps with no floor, the $240 million seven-year first-lien covenant-light term loan B (B2/B) is talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $100 million eight-year second-lien covenant-light term loan (Caa2/CCC+) is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said. The revolver and first-lien term loan have a leverage-based pricing grid.

Commitments are due on July 28, the source added.

Morgan Stanley Senior Funding Inc. and Nomura Securities International Inc. are leading the deal that will be used to help fund the buyout of the company by Vista Equity Partners.

EagleView is a Bothell, Wash.-based technology provider of aerial imagery, data analytics and GIS solutions.

C.H.I. Overhead sets guidance

C.H.I. Overhead Doors came out with price talk on its first- and second-lien term loans as the debt was launched to investors with a morning bank meeting, a market source said.

Talk on the $300 million seven-year first-lien term loan is Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the $135 million eight-year second-lien term loan is Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source continued.

The company’s $475 million credit facility also includes a $40 million revolver.

Commitments are due on July 28, the source added.

UBS AG and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by KKR from Friedman Fleischer & Lowe LLC.

C.H.I. Overhead is an Arthur, Ill.-based manufacturer and marketer of overhead garage doors.

MediaOcean comes to market

MediaOcean had its bank meeting on Tuesday, and its $225 million seven-year first-lien covenant-light term loan (B2/B) was launched with talk in the Libor plus 475 bps area with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due on July 28, the source added.

The company’s $335 million credit facility also includes a $20 million five-year revolver (B2/B) and a $90 million eight-year second-lien term loan (Caa2/CCC+) that was pre-placed.

Macquarie Capital (USA) Inc. is leading the deal that will be used to help fund the buyout of the company by Vista Equity Partners.

Closing is expected in the third quarter.

MediaOcean is a New York-based software company for the advertising sector.

Ascend Learning holds call

Ascend Learning held a call at 2 p.m. ET on Tuesday to launch a fungible $20 million add-on term loan (B2) due 2019 with original issue discount of 99.75, according to a market source.

The add-on, like the existing term loan, is priced at Libor plus 450 bps with a 1% Libor floor, and has 101 soft call protection through December.

Commitments are due at 3 p.m. ET on Thursday, the source said.

Bank of America Merrill Lynch, GE Capital Markets and Barclays are leading the deal that will be used for acquisition financing and general corporate purposes.

Ascend Learning is a Burlington, Mass., and Leawood, Kan.-based provider of technology-based learning services focused on student training and testing results in health care and other vocational fields.

Linxens on deck

Also in the primary, Linxens scheduled bank meetings for 10 a.m. ET in New York on Thursday and 7:30 a.m. ET in London on Friday to launch new first- and second-lien term loans including a $500 million seven-year first-lien covenant-light term loan, a €230 million seven-year first-lien covenant-light term loan and a $256 million eight-year second-lien covenant-light term loan, according to a market source.

The U.S. first-lien term loan is talked at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, the euro first-lien term loan is talked at Euribor plus 475 bps with no floor and a discount of 99, and the second-lien term loan is talked at Libor plus 850 bps with a 1% Libor floor and a discount of 99, the source said.

Included in the first-lien debt is 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 5 p.m. ET on July 30, the source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Natixis and Nomura are leading the deal that will help fund the buyout of the company by CVC Capital.

Linxens is a France-based designer and manufacturer of smart card connectors.

Hostess coming soon

Hostess emerged with plans to hold a bank meeting at 2 p.m. ET in New York on Thursday to launch a $1,325,000,000 credit facility, a market source remarked.

The facility consists of a $100 million revolver, an $825 million seven-year first-lien covenant-light term loan with a 1% Libor floor and 101 soft call protection for six months, and a $400 million eight-year second-lien covenant-light term loan with a 1% Libor floor and call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due at 5 p.m. ET on July 30.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., UBS AG, Morgan Stanley Senior Funding Inc., RBC Capital Markets and Nomura are leading the deal that will be used to refinance existing debt and fund a shareholder dividend.

Hostess is a sweet baked goods company.

Alion readies deal

Alion Science and Technology will hold a bank meeting on Thursday morning to launch $400 million of term loans, a source said.

The debt consists of a $280 million first-lien term loan and a $120 million second-lien term loan, the source added.

Jefferies Finance LLC, Credit Suisse Securities (USA) LLC and UBS AG are leading the deal that will be used to refinance existing debt.

Closing is conditioned on the company’s planned public offering.

Alion is a McLean, Va.-based research and development, IT and operational services company.

AccentCare joins calendar

AccentCare set a bank meeting for Monday to launch a $170 million senior credit facility, according to a market source.

The facility consists of a $30 million five-year revolver, a $105 million six-year first-lien term loan B and a $35 million seven-year second-lien term loan, the source said.

GE Capital Markets is leading the deal that will be used to refinance existing debt.

AccentCare is a Dallas-based home health provider.

Vistage plans loan

Vistage will hold a bank meeting at 10 a.m. ET on Thursday to launch a $150 million term loan B that is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a source remarked.

SunTrust Robinson Humphrey Inc. and Credit Suisse Securities (USA) LLC are leading the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

Vistage is a San Diego, Calif.-based for-profit membership organization of CEOs.

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