Immucor gains as repricing fades; Hudson's, TMS, Digital, Hyperion, Catalina, Britax revised

By Sara Rosenberg

New York, Oct. 3 - Immucor Inc.'s term loan headed higher in trading on Thursday after the company shelved its repricing proposal due to market conditions.

Moving to the primary, Hudson's Bay Co. upsized its first-lien term loan B, lifted price talk, extended the soft call protection and added a second-lien term loan tranche to its capital structure.

Also, TMS International Corp. raised the size of its term loan B, reduced the spread and shortened the call protection, Digital Insight reworked first- and second-lien term loan pricing, and Hyperion Insurance Group Ltd. widened the coupon and discount price on its debt while also beefing up the call premiums.

Additionally, Catalina Marketing Corp. downsized its term loan and increased price talk, Britax reduced its U.S. term loan size and added euro and Australian dollar tranches, and Insight Global (IG Investment Holdings LLC) started circulating price talk on its upcoming add-on first-lien term loan.

Furthermore, details on timing and structure emerged on Neiman Marcus Group Ltd. Inc.'s buyout financing, and Excelitas Technologies Corp. nailed down the launch date on its credit facility.

Immucor inches up

Immucor's covenant-light term loan due Aug. 19, 2018 gained some ground in the secondary market as plans to reprice the debt were terminated, according to a trader.

The loan was quoted at par bid, 101 offered, up from 99 7/8 bid, par 5/8 offered, the trader said.

Under the repricing plan, the company was looking to bring the spread down to Libor plus 325 basis points from Libor plus 375 bps, while keeping the 1.25% Libor floor in place.

The pulled $662 million senior secured covenant-light term loan B-2 due Aug. 19, 2018 was being offered at par and had 101 soft call protection for six months.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were leading the deal.

Immucor is a Norcross, Ga.-based provider of automated instrument-reagent systems to the blood transfusion industry.

Hudson's Bay reworked

Over in the primary, Hudson's Bay lifted the size of its seven-year first-lien senior secured term loan B to $2 billion from $1.9 billion, revised talk to Libor plus 375 bps to 400 bps from Libor plus 325 bps to 350 bps and extended the 101 soft call to one year from six months, sources said. The 1% Libor floor and original issue discount of 99 were left intact.

Furthermore, the company added a $300 million eight-year second-lien term loan to its deal that will launch with a call on Monday, sources continued.

Due to the increase in the amount of term loan debt, the company eliminated plans for a $400 million senior unsecured notes offering.

The company's now roughly $4 billion credit facility also includes a C$750 million ABL revolver and a $950 million ABL revolver.

Recommitments for the first-lien term loan were due at 5 p.m. ET on Thursday.

Hudson's Bay buying Saks

Proceeds from Hudson's Bay term loans, $357 million in revolver borrowings, $1 billion of equity, including $500 million from Ontario Teachers' Pension Plan and $250 million from West Face Capital Inc., and cash on hand will refinance some existing debt and fund the acquisition of Saks Inc. for $16.00 per share in an all-cash transaction valued at about $2.9 billion, including debt.

Bank of America Merrill Lynch and RBC Capital Markets are leading the credit facility.

Closing is expected by year-end, subject to approval by Saks shareholders, regulatory approvals and other customary conditions.

Leverage will be around 5.7 times.

Hudson's Bay is an Ontario-based operator of department stores. Saks is a New York-based retailer of clothes and accessories for men, women, children and the home.

TMS changes emerge

TMS International lifted its term loan B due October 2020 to $425 million from $400 million, flexed pricing to Libor plus 350 bps from Libor plus 375 bps and shortened the 101 soft call protection to six months from one year, according to a market source. The 1% Libor floor and original issue discount of 99½ were unchanged.

The company's now $600 million senior secured credit facility also includes a $175 million asset-based revolver.

J.P. Morgan Securities LLC and Goldman Sachs Bank USA are leading the deal that will be used with $275 million of notes and $314 million in equity to fund the buyout of the company by certain members of the Pritzker family for $17.50 per share in a transaction valued at about $1 billion, including refinanced third-party debt.

The senior unsecured notes offering was downsized from $300 million with the term loan upsizing.

Closing is expected in the fourth quarter, subject to expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.

TMS is a Glassport, Pa.-based provider of outsourced industrial services to steel mills.

Digital Insight revised

Digital Insight set the spread on its $385 million covenant-light first-lien term loan at Libor plus 375 bps, versus earlier talk of Libor plus 375 bps to 400 bps if corporate ratings were B2/B or better, or Libor plus 400 bps to 425 bps if corporate ratings were lower than B2/B, according to a market source.

Additionally, the Libor floor on the first-lien term loan was reduced to 1% from 1.25% and the original issue discount was tightened to 99½ from 99, the source said, adding that there is still 101 soft call protection for six months.

Regarding the $215 million covenant-light second-lien term loan, the spread was set at Libor plus 775 bps, compared to prior talk of Libor plus 775 bps to 800 bps if corporate ratings were B2/B or better and Libor plus 800 bps to 825 bps if corporate ratings were lower than B2/B, the source remarked.

The second-lien loan also saw its Libor floor move to 1% from 1.25%, its discount modified to 99 from 98½ and its call protection shortened to 102 in year one and 101 in year two, from 103 in year one, 102 in year two and 101 in year three.

Jefferies Finance LLC is leading the $620 million credit facility, which also includes a $20 million revolver, and will be used with about 47% in equity to back the already completed $1,025,000,000 buyout of Intuit Financial Services (renamed Digital Insight) by Thoma Bravo from Intuit Inc.

Digital Insight is a Menlo Park, Calif., provider of technology solutions to financial institutions.

Hyperion flexes up

Hyperion moved pricing on its $250 million senior secured term loan B (B1/B) due 2019 to Libor plus 475 bps from Libor plus 425 bps, widened the discount to 98½ from 99 and changed the soft call protection to 102 in year one and 101 in year two from a 101 soft call, a source remarked. The loan still has a 1% Libor floor.

Recommitments are due at 10 a.m. ET on Friday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and fund pipeline acquisitions.

Hyperion is a London-based insurance intermediary business.

Catalina restructures

Catalina Marketing trimmed its term loan to a range of $775 million to $790 million from $955 million and lifted price talk to Libor plus 400 bps to 425 bps from Libor plus 350 bps to 375 bps, while leaving the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, according to a market source.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., BMO Capital Markets and GE Capital Markets are leading the deal.

Proceeds will be used to refinance existing debt, however due to the term loan downsizing, the company is leaving opco notes in place, the source added.

Catalina Marketing is a St. Petersburg, Fla.-based provider of precision marketing services.

Britax tweaks tranching

Britax cut its U.S. term loan to $280 million from $370 million and revised talk to Libor plus 375 bps from Libor plus 375 bps to 400 bps, according to a market source. The loan still has a 1% Libor floor and 101 soft call protection for six months, and is offered with original issue discount talk of 99 to 991/2.

With the U.S. term loan downsizing, the company added a €50 million term loan and an A$25 million term loan to its capital structure, the source said.

He added that Britax does a lot of business in those jurisdictions and, therefore, a structure with foreign currency tranches fits its revenue stream.

Recommitments are due at 5 p.m. ET on Monday.

Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are leading the deal (B1) that will be used to refinance existing debt.

Britax is an England-based designer, manufacturer and marketer of child car seats, strollers, baby carriers and accessories.

Insight Global floats talk

Insight Global set talk of Libor plus 475 bps with a 1.25% Libor floor and an original issue discount of 99 on its $130 million first-lien covenant-light tack-on term loan due October 2019 that will launch with a conference call at 11 a.m. ET on Friday, according to market sources.

The tack-on loan has 101 soft call protection through October 2013, just like the existing first-lien term loan as the debt is fungible. Spread, Libor floor and maturity on the tack-on debt also match the existing loan.

Commitments are due on Oct. 11, sources remarked.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, RBC Capital Markets LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance the company's existing second-lien term loan.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

Neiman readies deal

Neiman Marcus set a bank meeting for 1:30 p.m. ET in New York on Monday to launch its $3.75 billion credit facility that will be used to help fund its $6 billion buyout by Ares Management LLC and Canada Pension Plan Investment Board from TPG and Warburg Pincus, according to sources.

The facility consists of a $2.95 billion seven-year first-lien covenant-light term loan and an $800 million five-year ABL revolver, sources said, adding that commitments are due on Oct. 16.

Credit Suisse Securities (USA) LLC, RBC Capital Markets, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are the bookrunners on the term loan, and Deutsche Bank, Credit Suisse, RBC, Bank of America Merrill Lynch, GE Capital Markets, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BMO Capital Markets, SunTrust Robinson Humphrey Inc. and UBS Securities LLC are the bookrruners on the revolver.

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

Neiman Marcus is a Dallas-based luxury retailer.

Excelitas timing emerges

Excelitas revealed that a bank meeting will take place at 1:30 p.m. ET in New York on Oct. 10 to launch its $945 million credit facility, which was previously labeled as likely next week's business, according to a market source.

The facility consists of a $40 million five-year revolver, a $620 million seven-year first-lien term loan that includes a $40 million delayed-draw tranche and a $285 million 71/2-year second-lien term loan, the source said.

UBS Securities LLC, Credit Suisse Securities (USA) LLC and MCS Capital Markets are leading the deal that will be used to help fund the acquisition of Qioptiq, a Luxembourg-based designer and manufacturer of high performance photonic products and solutions.

Excelitas is a Waltham, Mass.-based provider of specialty lighting and sensor components, subsystems and integrated products to OEMs for health, environmental and security segments.

Jarden closes

Jarden Corp., a Rye, N.Y.-based provider of a diverse range of consumer products, completed its $750 million seven-year term loan B-1 (Ba1/BBB-), a news release said.

Pricing on the B-1 loan is Libor plus 275 bps with no Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

During syndication, the discount on the loan was tightened from 99 and the size firmed at the full amount of the company's planned incremental debt, so plans for an add-on to its existing term loan B due March 31, 2018 were eliminated. The add-on had been talked at Libor plus 250 bps with no floor, in line with existing term loan B pricing, and was offered at a discount of 991/2.

Barclays, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC led the deal that was used to help fund the $1.75 billion purchase of South Deerfield, Mass.-based candle company Yankee Candle Investments LLC from Madison Dearborn Partners LLC.

Secured leverage is 3.1 times and net total leverage is 3.6 times, excluding an accounts receivables securitization.

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