Press Ganey loan changes emerge; HUB International brings refinancing deal to market

By Sara Rosenberg

New York, April 16 – In the primary market on Monday, Press Ganey Holdings Inc. tightened the spread and issue price on its incremental first-lien term loan and added a repricing proposal to the mix, and HUB International Ltd. announced and launched new credit facilities to investors.

Also, GTT Communications Inc., BCP Renaissance Parent LLC (Blackstone), Perspecta Inc., Alterra Mountain Co. (Intrawest Resorts Holdings Inc.) and Owens & Minor Inc. joined this week’s primary calendar.

Press Ganey reworked

Press Ganey trimmed pricing on its $90 million incremental first-lien term loan (B2/B) due October 2023 to Libor plus 275 bps from Libor plus 300 bps and changed the issue price to par from 99.75, according to a market source.

Also, the company is now asking to reprice its existing $838 million term loan (B2/B) due October 2023 to Libor plus 275 bps from Libor plus 300 bps, the source said. The repricing is offered at par.

With the addition of the repricing, the company is resetting the 101 soft call protection on the incremental and existing term loan for six months instead of having it expire on April 23, 2018.

The term loan debt has a 1% Libor floor, which matches the existing floor.

Commitments were due at 5 p.m. ET on Monday, moved up from 5 p.m. ET on Wednesday.

Credit Suisse Securities (USA) LLC is leading the deal.

The incremental loan will be used to repay revolver borrowings and second-lien debt.

Press Ganey is a Wakefield, Mass.-based provider of patient experience measurement, performance analytics and strategic advisory solutions for health care organizations.

HUB holds call

HUB International emerged in the morning with plans to host a lender call at 2 p.m. ET on Monday to launch roughly $3.7 billion of senior secured credit facilities, a market source said.

The facilities consist of a $400 million five-year revolver, a C$130 million five-year revolver, a $3.05 billion seven-year covenant-light term loan B and a C$200 million seven-year covenant-light term loan B.

After the call, talk on the U.S. term loan B was announced at Libor plus 300 bps to 325 bps with a 25 bps step-down at 4.25 times first-lien net leverage, a 0% Libor floor and an original issue discount of 99.5, and talk on the Canadian term loan B surfaced at CDOR plus 350 bps to 375 bps with a 0% floor and a discount of 99.5, the source continued. Both term loans have 101 soft call protection for six months.

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

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading the deal that will be used to repay existing revolver and term loan B borrowings, senior unsecured OpCo notes and senior contingent cash pay notes.

HUB is a Chicago-based insurance brokerage.

GTT readies deal

GTT Communications set a lender call for U.S. Investors for 10 a.m. ET on Tuesday and a bank meeting for European investors in London for Wednesday to launch a $1,331,000,000 seven-year covenant-light first-lien term loan and a €640 million seven-year covenant-light first-lien term loan, a market source remarked.

The term loans have a 0% floor and 101 soft call protection for six months, the source added. Spread and original issue discount talk are not yet available.

Commitments are due at 5 p.m. ET on April 26.

Credit Suisse is the left lead on the deal that will be used to refinance existing debt and help fund the acquisition of Interoute for about €1.9 billion.

GTT Communications is a McLean, Va.-based cloud networking provider. Interoute is an operator of one of Europe’s largest independent fiber networks and cloud networking platforms.

BCP Renaissance on deck

BCP Renaissance scheduled a lender call for 10 a.m. ET on Tuesday to launch a $1.25 billion senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B.

BCP Renaissance is the owner of Blackstone’s interest in Rover Pipeline LLC, which transports natural gas from the Marcellus and Utica Shale production areas.

Perspecta coming soon

Perspecta will hold a bank meeting on Wednesday to launch $3 billion of senior credit facilities, a market source said.

The facilities consist of a $2.6 billion of pro rata bank debt and a $400 million term loan B.

Initial pricing on the pro rata facilities is expected to be Libor plus 162.5 bps to 175 bps, the source added. Term loan B pricing is not yet available.

MUFG, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Mizuho and RBC Capital Markets are leading the deal that will be used to help fund the spin-off of the company from DXC Technology, to refinance existing debt and for general corporate purposes.

Perspecta will then be combined with Vencore Holding Corp. and KeyPoint Government Solutions to create a mission-enabled, end-to-end IT services and mission solutions provider to government customers.

Pro forma total leverage for the transaction is expected to be 3.7 times.

Alterra joins calendar

Alterra Mountain scheduled a lender call for Tuesday to launch a $1.56 billion term loan B due July 2024 that is talked at Libor plus 275 bps to 300 bps, a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Friday, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Alterra is a Denver-based mountain resort and adventure company.

Owens & Minor sets meeting

Owens & Minor surfaced with plans to hold a bank meeting at 2 p.m. ET in New York on Wednesday to launch a seven-year covenant-light term loan B, a market source remarked.

Bank of America Merrill Lynch is leading the deal that will be used with a new term loan A to fund the acquisition of the surgical and infection prevention business of Halyard Health Inc.

Owens & Minor is a Mechanicsville, Va.-based health care solutions company.

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