Institutional Shareholder frees up; Terex revised; Tallgrass, Quorum Business accelerated

By Sara Rosenberg

New York, March 4 – Institutional Shareholder Services Inc. shifted some funds between its first- and second-lien term loans, and then the first-lien debt made its way into the secondary market on Monday, with levels quoted above its original issue discount.

In more happenings, Terex Corp. lowered the spread on its incremental first-lien term loan B-1 and tightened the issue price, and Tallgrass Energy LP and Quorum Business Solutions (QBS Parent Inc.) moved up the commitment deadlines on their term loans.

Furthermore, Power Solutions (Panther BF Aggregator 2 LP) disclosed price talk on its term loans with its New York bank meeting, and TruGreen LP and Nine West joined this week’s primary calendar.

Institutional tweaks loans

Institutional Shareholder Services lifted its seven-year first-lien term loan to $505 million from $495 million and scaled back its eight-year second-lien term loan to $190 million from $200 million, a market source said.

The first-lien term is still priced at Libor plus 450 basis points with a 25 bps step-down when net first-lien leverage is less than 4.5 times, a 0% Libor floor and an original issue discount of 99 and has 101 soft call protection for six months.

Meanwhile, the second-lien term loan ended up being privately placed by the sponsor, the source continued. At launch, the second-lien term loan had been talked at Libor plus 850 bps with a 0% Libor floor, a discount of 98 to 98.5 and hard call protection of 102 in year one and 101 in year two.

The company’s $735 million of credit facilities also include a $40 million five-year revolver.

Institutional breaks

On Monday, Institutional Shareholder’s first-lien term loan freed up for trading, with levels quoted at 99¼ bid, the source added.

Antares Capital and Golub Capital are leading the deal that will be used to refinance existing debt and fund the acquisition of Strategic Insights.

Institutional Shareholder, a Rockville, Md.-based provider of corporate governance and responsible investment solutions to financial market participants, was acquired by Genstar Capital in October 2017. Strategic Insights, a New York-based provider of critical and proprietary data, business, intelligence, research and marketing services to the asset management community, was acquired by Genstar in June 2014.

Terex changes emerge

Back in the primary market, Terex trimmed pricing on its non-fungible $200 million incremental first-lien term loan B-1 (Ba2/BBB-) due Jan. 31, 2024 to Libor plus 275 bps from Libor plus 300 bps and moved the original issue discount to 99.5 from talk in the range of 98.5 to 99, according to a market source.

Also, a step-down to Libor plus 250 bps was added to the term loan based on corporate ratings of at least Ba3/BB-.

As before, the incremental term loan has a 0.75% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Monday, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc., Credit Agricole, Commerzbank and Barclays are leading the deal that will be used to repay revolver borrowings.

Terex is a Westport, Conn.-based lifting and material handling solutions company.

Tallgrass modifies deadline

Tallgrass Energy accelerated the commitment deadline on its $1,155,000,000 seven-year first-lien term loan (B1/B+/BB-) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

Talk on the term loan is Libor plus 525 bps with a 0% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year.

Credit Suisse Securities, Citigroup Global Markets Inc., Jefferies LLC and MUFG are leading the deal that will be used to help fund Blackstone Infrastructure Partners’ acquisition of a controlling interest in the company for total cash consideration of about $3.3 billion.

Closing is expected this quarter, subject to customary conditions.

Tallgrass Energy is a Leawood, Kan.-based growth-oriented midstream energy infrastructure company.

Quorum Business accelerated

Quorum Business Solutions moved up the commitment deadline on its fungible $90 million covenant-light incremental first-lien term loan (B2/B/BB-) due September 2025 to 5 p.m. ET on Wednesday from noon ET on Friday, according to a market source.

Talk on the incremental term loan is Libor plus 425 bps with a 0% Libor floor, an original issue discount of 98.375 and 101 soft call protection for six months.

Credit Suisse Securities and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the acquisition of Coastal Flow Measurement Inc., a Houston-based energy measurement services and software company.

With this transaction, the company will increase pricing on its existing first-lien term loan to Libor plus 425 bps from Libor plus 400 bps.

Quorum is a provider of software to energy companies.

Power Solutions guidance

Also in the primary market, Power Solutions held its New York bank meeting on Monday and announced price talk on its $3.2 billion seven-year term loan B and $2.25 billion equivalent euro seven-year term loan B, according to a market source. A bank meeting for European investors will take place in London on Tuesday.

Talk on the U.S. term loan is Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 98.5, and talk on the euro term loan is Euribor plus 400 bps to 425 bps with a 0% floor and a discount of 99, the source said.

Commitments are due at noon ET on March 14.

Power Solutions leads

J.P. Morgan Securities LLC is the left lead on Power Solutions’ U.S. term loan B, and Barclays is the left lead on the euro term loan B. Filings with the Securities and Exchange Commission listed Credit Suisse, Bank of America Merrill Lynch, BMO Capital Markets, CIBC Capital Markets, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, RBC Capital Markets, Bank of Nova Scotia and TD Securities as leads on the debt as well. JPMorgan is the administrative agent.

The $5.45 billion equivalent of term loans (Ba3//BB) will be used with bonds and equity to fund the acquisition of Johnson Controls’ power solutions business by Brookfield Business Partners LP and Caisse de depot et placement du Quebec for around $13.2 billion.

Closing is expected by June 30, 2019, subject to customary conditions, including regulatory approvals.

Power Solutions is a supplier of low voltage automotive batteries.

TruGreen joins calendar

TruGreen scheduled a lender call for 1 p.m. ET on Tuesday to launch a $965 million seven-year first-lien term loan B (B1) talked at Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on March 12, the source added.

J.P. Morgan Securities is the left lead on the deal that will be used to refinance an existing $790 million first-lien term loan due April 2023 and fund a $234 million distribution to be used to purchase the equity stake held by the Scotts Miracle-Gro Co.

TruGreen is a Memphis-based provider of lawn care, tree & shrub and mosquito services.

Nine West on deck

Nine West set a lender call for 10 a.m. ET on Tuesday to launch a $325 million first-lien term loan, a market source said.

Goldman Sachs Bank USA is leading the deal that will be used to fund the company’s emergence from bankruptcy.

Nine West is a New York-based designer, wholesaler and brand licensor of denim, women’s apparel and jewelry.

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