CDW, AssuredPartners, ABC, Loparex, Altisource, Filtration, Ply Gem and many more break

By Sara Rosenberg

New York, March 29 – A number of deals freed up for trading on Thursday, including CDW LLC, AssuredPartners Inc., ABC Supply (American Builders & Contractors Supply Co. Inc.), Loparex International Holding BV, Altisource Holdings Sarl, Filtration Group Corp., Grosvenor Capital Management and Coty Inc.

Also, before emerging in the secondary market as well, Ply Gem Holdings Inc. raised pricing on its term loan B and sweetened the call premium, Stars Group Inc. updated its U.S. and euro term loan sizes and pricing, and Arch Coal Inc. finalized pricing on its term loan at the wide side of talk.

Additionally, Cast & Crew Entertainment Services LLC raised pricing on its term loan, and TravelClick Inc. increased the size of its incremental term loan, modified the issue price and firmed the spread on the debt, as well as on its repriced term loan, at the high end of guidance, and then these deals broke for trading too.

In more happenings, Dole Food Co. Inc. raised pricing on its term loan B, KBR Inc. lifted the spread on its term loan B, and Inovalon Holdings Inc. widened the spread and original issue discount on its term loan B and extended the call protection.

Furthermore, MKS Instruments Inc. and Central Security Group Inc. disclosed price talk with launch, and Peabody Energy Corp. and Compass Group Diversified Holdings LLC surfaced with new deal plans.

CDW frees to trade

CDW’s $1,468,068,625 senior secured covenant-light term loan B due Aug. 17, 2023 hit the secondary market, with levels quoted at par 3/8 bid, par 5/8 offered, a trader remarked.

Pricing on the term loan is Libor plus 175 basis points with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Barclays, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC, MUFG, Capital One, Goldman Sachs Bank USA, RBC Capital Markets and U.S. Bank are leading the deal that will be used to reprice an existing term loan B down from Libor plus 200 bps with a 0% Libor floor.

Closing is expected on Tuesday.

CDW is a Lincolnshire, Ill.-based technology solutions provider to business, government, education and health care organizations.

AssuredPartners above par

AssuredPartners’ $1,518,000,000 covenant-light term loan B (B2/B) due Oct. 22, 2024 freed up too, with levels quoted at par 1/8 bid, par ½ offered, according to a trader.

Pricing on the tem loan is Libor plus 325 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Wednesday, the spread on the loan was increased from Libor plus 300 bps, the issue price for new dollars was changed from talk in the range of 99.75 to 99.875 and the issue price for rolled dollars was set at the tight end of the 99.875 to par talk.

Bank of America Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., RBC Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice an existing term loan B, and the $250 million of incremental term loan debt being raised will be used to pay down borrowings under the existing revolver, fund acquisitions expected to be completed before the transaction closes and reset liquidity for future acquisitions.

AssuredPartners is a Lake Mary, Fla.-based provider of property and casualty and employee benefits insurance brokerage services.

ABC Supply breaks

ABC Supply’s $1,856,000,000 covenant-light term loan B (B1/BB+) due Oct. 31, 2023 began trading in the afternoon, with levels quoted at par bid, par ½ offered, a market source said.

The term loan is priced at Libor plus 200 bps with a 0.75% Libor floor and was issued at par. Included in the debt is 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0.75% Libor floor.

Closing is expected during the week of April 2.

ABC Supply is a Beloit, Wis.-based building products distributor.

Loparex tops OID

Loparex International’s credit facilities emerged in the secondary market, with the $320 million seven-year senior secured first-lien term loan seen at par ½ bid, 101 offered, according to a market source.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

On Wednesday, pricing on the term loan was reduced from Libor plus 450 bps and the discount was tightened from 99.

The company’s $350 million of credit facilities (B2/B) also include a $30 million five-year revolver.

Jefferies LLC, ABN Amro and Rabobank are leading the deal that will be used to refinance existing bank debt and repay shareholder loans.

Loparex is a developer and producer of specialty release liner product solutions.

Altisource starts trading

Altisource’s credit facilities broke for trading, with the $412 million six-year senior secured covenant-light term loan B due March 31, 2024 quoted at 99¼ bid, 99¾ offered, a trader said.

Pricing on the term loan is Libor plus 400 bps with 1% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for one year.

On Wednesday, pricing on the term loan finalized at the high end of the Libor plus 375 bps to 400 bps talk, the call protection was extended from six months and the incremental was reduced to $125 million.

The company’s $427 million of senior secured credit facilities (B3/B+) also include a $15 million five-year revolver priced at Libor plus 400 bps with a 0% Libor floor, after firming recently at the high end of the Libor plus 375 bps to 400 bps talk.

Morgan Stanley Senior Funding Inc. is leading the deal that will refinance an existing term loan B.

Total leverage is 3.3 times and net leverage is 2.1 times.

Closing is expected on Tuesday.

Altisource is a Luxembourg-based service provider and marketplace for the real estate and mortgage industries.

Filtration Group breaks

Filtration Group’s $1,344,000,000 seven-year senior secured first-lien term loan B (B2/B) also freed up, with levels quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the loan is Libor plus 300 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The company is also getting a €250 million seven-year senior secured first-lien term loan B (B2/B) priced at Euribor plus 350 bps with a 0% floor and issued at a discount of 99.75. This tranche has 101 soft call protection for six months as well.

On Wednesday, pricing on the U.S. loan was reduced from talk in the range of Libor plus 325 bps to 350 bps, pricing on the euro loan firmed at the low end of the Euribor plus 350 bps to 375 bps talk, and the discount on both tranches was modified from 99.5.

Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to fund mergers and acquisitions and to refinance existing debt.

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

Grosvenor hits secondary

Grosvenor Capital Management’s $466 million senior secured term loan B due March 2025 began trading too, with levels seen at par ¼ bid, 101 offered, a market source said.

Pricing on the term loan is Libor plus 275 bps with a 1% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

On Wednesday, pricing on the loan firmed at the low end of the Libor plus 275 bps to 300 bps talk and the discount was revised from 99.5.

Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used to amend and extend an existing term loan B due August 2023 and priced at Libor plus 300 bps with a 1% Libor floor.

Grosvenor Capital is a Chicago-based independent alternative asset management firm.

Coty frees up

Coty’s $1.4 billion seven-year term loan B surfaced in the secondary market during the session, with levels seen at 99 7/8 bid, par 1/8 offered, according to a market source.

The term loan is priced at Libor plus 225 bps with a 0% Libor floor and was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The company is also getting a $1,046,000,000 equivalent euro seven-year term loan B priced at Euribor plus 250 bps with a 0% floor that was issued at a discount of 99.75. This tranche has 101 soft call protection for six months as well.

On Wednesday, the U.S. term loan was upsized from $1 billion and pricing was set at the high end of the Libor plus 200 bps to 225 bps talk, and the euro term loan was downsized from $1.5 billion equivalent and the spread firmed at the high end of the Euribor plus 225 bps to 250 bps talk.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to refinance existing debt.

The company is also getting about $1.5 billion in notes, downsized recently from $2 billion with the balance being made up by a revolver draw.

Coty is a New York-based beauty company.

Ply Gem sets changes

Ply Gem increased pricing on its $1,755,000,000 seven-year term loan B (B2/B) to Libor plus 375 bps from talk in the range of Libor plus 300 bps to 325 bps, extended the 101 soft call protection to one year from six months and changed the MFN to 50 bps for life from 75 bps with a six-month sunset, a market source remarked.

Revisions were also made to, among other things, the excess cash flow sweep, incremental allowance and EBITDA addbacks.

The term loan still has a 0% Libor floor and an original issue discount of 99.5.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies LLC, MUFG, Natixis, RBC Capital Markets LLC, Societe Generale and UBS Investment Bank are leading the deal.

Ply Gem begins trading

Commitments for Ply Gem’s term loan were due at 11 a.m. ET on Thursday and then the debt freed up with levels quoted at par bid, par ½ offered, another source added.

Proceeds will be used to help fund its buyout by Clayton, Dubilier & Rice for $21.64 per share in cash. The transaction is valued at about $2.4 billion.

Clayton, Dubilier & Rice has also entered into a definitive agreement to acquire Atrium Windows & Doors and combine the company with Ply Gem to create an exterior building products company with total revenue of more than $2.4 billion in 2017.

The transactions are expected to close simultaneously in the second quarter and are subject to the receipt of customary closing conditions, including regulatory approvals.

Ply Gem is a Cary, N.C.-based building products manufacturer. Atrium is a provider of windows and doors to the new construction and repair and remodel markets.

Stars finalized

Stars Group set its U.S. seven-year covenant-light term loan at $2.17 billion and its euro seven-year covenant-light term loan at €500 million, reflecting a shift of $5 million to the euro loan from the U.S. loan and Thursday’s amortization payment, according to a market source.

Furthermore, pricing on the U.S. term loan firmed at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, pricing on the euro term loan finalized at Euribor plus 325 bps, the low end of the Euribor plus 325 bps to 350 bps talk, and the MFN sunset was removed, the source said.

The term loans still have a 0% floor, an original issue discount of 99.75, or a 25 bps extension for those cashless rolling, and 101 soft call protection for six months.

Stars surfaces in secondary

Late in the session, Stars Group’s U.S. term loan began trading, with levels quoted at par bid, par ½ offered, another source added.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., Barclays and BMO Capital Markets are leading the term loans (B2/B+) that will be used to amend and extend a $1,891,000,000 term loan and a €381 million equivalent term loan, and the $425 million in incremental debt raised will be used to fund recent acquisitions and repay second-lien term loan borrowings.

Closing is expected late during the week of April 2.

Stars Group is a Toronto-based provider of technology-based products and services in the gaming and interactive entertainment industries.

Arch Coal firms, breaks

Arch Coal set the spread on its $298 million covenant-light first-lien term loan B due March 2024 at Libor plus 275 bps, the high end of the Libor plus 250 bps to 275 bps talk, a market source said.

The term loan still has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

B late afternoon, the term loan started trading and levels were quoted at par bid, par ½ offered, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 1% Libor floor.

Arch Coal is a St. Louis-based coal producer.

Cast & Crew revised, trades

Cast & Crew Entertainment Services lifted pricing on its $494 million covenant-light first-lien term loan B due Sept. 27, 2024 to Libor plus 275 bps from Libor plus 250 bps, and left the 25 bps step-down at either 3.5 times first-lien net leverage or upon the consummation of an initial public offering, 0% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

The loan then surfaced in the secondary market and levels were quoted at par 1/8 bid, par ½ offered, a trader added.

RBC Capital Markets is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 0% Libor floor.

Cast & Crew, a Silver Lake portfolio company, is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry.

TravelClick tweaked, frees up

TravelClick lifted its incremental first-lien term loan (B1/B-) due May 6, 2021 to $44 million from $34 million and revised the issue price to par from 99.75, according to a market source.

Additionally, the company set pricing on the incremental loan and on the repricing of its existing $444 million first-lien term loan (B1/B-) due May 6, 2021 at Libor plus 350 bps, the wide end of the Libor plus 325 bps to 350 bps talk, the source said.

As before, the term loan debt has a 1% Libor floor and 101 soft call protection for six months, and the repricing has a par issue price.

Recommitments were due at 11 a.m. ET on Thursday and then then loan freed to trade with levels quoted at par 1/8 bid, par 5/8 offered, another source added.

Credit Suisse Securities (USA) LLC and ING are leading the deal.

The incremental loan will be used to repay a portion of the company’s second-lien term loan and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor.

TravelClick is a New York-based provider of solutions to the hospitality industry.

Dole lifts spread

Dole Food increased pricing on its $938,125,000 senior secured term loan B due April 6, 2024 to Libor plus 275 bps from Libor plus 250 bps, and left the 1% Libor floor, original issue discount of 99.875 and 101 soft call protection for six months intact, according to a market source.

Commitments/consents were due at noon ET on Thursday, the source said.

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

Closing is expected on Tuesday.

Dole is a Westlake Village, Calif.-based fruit and vegetables company.

KBR flexes

KBR widened pricing on its $800 million seven-year covenant-light term loan B to Libor plus 375 bps from talk in the range of Libor plus 300 bps to 325 bps, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source remarked.

The company’s $2.2 billion of senior secured credit facilities (B1/B+) also include a $400 million five-year delayed-draw term loan A, a $500 million five-year revolver and a $500 million five-year performance letter-of-credit facility.

Bank of America Merrill Lynch is the left lead on the deal that will be used to finance the $355 million acquisition of SGT from Kamco Holdings, to refinance existing revolver borrowings, to fund KBR’s share in a joint venture and for general corporate purposes.

KBR is a Houston-based provider of full life-cycle professional services and technologies supporting the government services and hydrocarbons markets.

Inovalon reworks loan

Inovalon raised pricing on its $980 million seven-year covenant-light term loan B to Libor plus 350 bps from talk in the range of Libor plus 275 bps to 300 bps, moved the original issue discount to 98.5 from 99.5 and extended the 101 soft call protection to one year from six months, a market source said.

The term loan still has a 0% Libor floor.

The company’s $1.08 billion of senior secured credit facilities (B2/B) also include a $100 million five-year revolver.

Recommitments were due at 3 p.m. ET on Thursday and allocations are expected on Monday.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used with cash on hand to fund the acquisition of Ability Network for $1.1 billion in cash and $100 million in restricted Inovalon stock.

Closing is expected in April, subject to customary conditions and regulatory approvals.

Pro forma net debt to adjusted EBITDA will be about 4.1 times at year-end 2018.

Inovalon is a Bowie, Md.-based technology company. Ability is a Minneapolis-based cloud-based software-as-a-service technology company.

MKS reveals guidance

MKS Instruments held its lender call on Thursday, launching its $398.5 million first-lien term loan B due April 29, 2023 at talk of Libor plus 175 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on April 5, the source said.

Barclays is leading the deal that will be used to reprice an existing term loan B.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes.

Central Security launches

Central Security Group emerged early in the day with plans to hold a lender call at 10 a.m. ET to launch a $25 million incremental first-lien term loan due Oct. 6, 2021 talked with an original issue discount of 99.5, a market source remarked.

Like the existing loan, the incremental loan is priced at Libor plus 562.5 bps with a 1% Libor floor.

The incremental loan has 101 soft call protection for six months.

Commitments are due on April 5, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to pay down revolver borrowings.

Central Security is a Tulsa, Okla.-based provider of alarm monitoring services.

Peabody on deck

Peabody Energy set a lender call for 1 p.m. ET on Monday to launch a $446 million senior secured first-lien term loan, a market source said.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan B and extend the maturity by three years.

Peabody is a St. Louis-based private sector coal company.

Compass readies call

Compass Group Diversified Holdings scheduled a call for 11 a.m. ET on Monday for credit facility lenders, according to a market source.

Bank of America Merrill Lynch is leading the deal.

Compass Group is a Westport, Conn.-based acquirer, owner and manager of a diverse group of subsidiaries operating within the industrial and branded consumer industries.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.