Triple Point breaks; Asset Acceptance returning; Kinetic moves deadline; eCommerce upsizes

By Sara Rosenberg

New York, Oct. 18 - Triple Point Technology Inc.'s credit facility made its way into the secondary market during Tuesday's trading session, with the term loan quoted above its original issue discount price.

In more loan happenings, Asset Acceptance Capital Corp. emerged with plans to re-approach the market with a refinancing deal after shelving a similar transaction a few months ago due to unfavorable conditions.

Additionally, Kinetic Concepts Inc.'s term loan tranches have been met with strong demand on the back of recent changes, resulting in a slight acceleration of the commitment deadline, eCommerce Industries Inc. upsized its credit facility, and Renaissance Learning Inc. finalized pricing on its first-lien loan.

Furthermore, AGCO Corp. and CBRE Group Inc. released price talk on their credit facilities, and SkillSoft Ltd. came out with original issue discount guidance on its incremental loan, as all three deals launched.

Triple Point frees up

Triple Point Technology's credit facility started trading on Tuesday, with the $165 million six-year term loan quoted at 97 bid on the break, and then it moved up to 98 bid, according to a market source.

Pricing on the term loan is Libor plus 650 basis points with a 1.5% Libor floor, and it was sold at an original issue discount of 96. There is 101 soft call protection for one year.

During syndication, the term loan was downsized from $185 million loan, the spread was flexed up from Libor plus 600 bps and the discount was widened from 97.

Also, with the changes to the funded term loan, the company canceled plans for a $50 million delayed-draw term loan that was going to be available for funding until February and would have been used for acquisition financing.

Triple Point lead banks

Credit Suisse Securities (USA) LLC and GE Capital Markets are the lead banks on Triple Point's $185 million credit facility (B1), which also includes a $20 million five-year revolver.

Proceeds will be used to help fund the buyout of the company by Welsh, Carson, Anderson & Stowe from ABRY Partners.

Other funds for the transaction will come from mezzanine debt and equity.

Triple Point is a Westport, Conn.-based provider of software for end-to-end commodity management.

Asset Acceptance readies deal

Moving to the primary, Asset Acceptance Capital came out with plans to hold a conference call at 11 a.m. ET on Thursday to launch a proposed $275 million credit facility that will be used to refinance existing debt, according to a market source.

The facility consists of a $100 million five-year revolver and a $175 million six-year term loan B, with price talk still to be determined, the source remarked.

A refinancing deal was already tried by the company earlier this year, but in May, the decision was made to pull that transaction due to market conditions.

The withdrawn facility consisted of a $175 million six-year term loan B talked at Libor plus 400 bps to 425 bps with a 1.5% Libor floor, an original issue discount of 99 and 101 soft call protection in year one, and a $100 million five-year revolver.

Asset Acceptance led by JP

J.P. Morgan Securities LLC is the lead bank on Asset Acceptance's upcoming credit facility and was the lead on the pulled deal as well.

The credit facility that is being taken out with this new transaction includes a $100 million revolver due June 5, 2012 and a term loan due June 5, 2013. As of June 30, there was $132.6 million outstanding under the term loan and $38.5 million drawn on the revolver.

Pricing on the existing facility can range from Libor plus 300 bps to 350 bps based on liquidity.

Asset Acceptance is a Warren, Mich.-based purchaser and collector of defaulted or charged-off accounts receivable portfolios from consumer credit originators.

Kinetic changes deadline

Also on the new deal front, Kinetic Concepts revised the commitment deadline on its credit facility to noon ET on Wednesday from 5 p.m. ET on Wednesday, being that its $2.2 billion of term loan debt is oversubscribed as a result of revisions that were made earlier this week, according to sources.

The debt is comprised of a $250 million to $300 million five-year term loan C and a $1.9 billion to $1.95 billion seven-year term loan B. Of the total term loan B amount, about $300 million to $400 million is expected to be done in euros.

At launch, the deal was launched as a single $2.2 billion seven-year term B, but the decision was made on Monday to carve out a shorter dated term loan tranche because of interest from CLOs and banks.

And, originally, based on filings with the Securities and Exchange Commission, it was thought that the B loan would be sized at $2.6 billion, but it ended up launching with a smaller size as the company's second-lien senior secured notes offering was upsized to $1.65 billion from $1.25 billion.

Kinetic price talk

Price talk on Kinetic Concepts' term loan B is Libor plus 575 bps with a 1.25% Libor floor and an original issue discount of 95½ to 96. The tranche is non-callable for one year then at 101 in year two.

When the term loan C was introduced to the capital structure, call protection on the term loan B was revised from a soft call of 102 in year one and 101 in year two.

The term loan C is expected to price 75 bps inside the term loan B, so if the spread on the B loan finalizes at Libor plus 575 bps, the C loan would come at Libor plus 500 bps. Also, the term C has a 1.25% floor, discount talk of 95½ to 96 and 101 soft call protection for one year.

Kinetic Concepts' $2.4 billion senior secured credit facility (Ba3/BB-), which may allocate later this week, also provides for a $200 million five-year revolver.

Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC are leading the deal and are seeking commitments by Wednesday.

Kinetic being acquired

Proceeds from Kinetic Concepts' credit facility, notes, $900 million of unsecured debt and $1.75 billion of equity will be used to fund its buyout by Apax Partners, Canada Pension Plan Investment Board and the Public Sector Pension Investment Board for $68.50 per share in cash. The transaction is valued at $6.3 billion, including outstanding debt.

The form in which the unsecured debt comes is still to be determined. It was thought that it would be issued in the high-yield market, but the tranche was dropped last week. There is a $900 million senior unsecured bridge loan backing this financing.

Total leverage is 6.0 times last-12-months EBITDA, and first-lien leverage is 2.9 times.

Closing is expected on Nov. 4, subject to certain conditions, including shareholder approval that will be sought at a meeting on Oct. 28, and regulatory approval.

Kinetic Concepts is a San Antonio-based medical technology company.

eCommerce adds tranche

eCommerce Industries upsized its credit facility to $162 million from $142 million by adding a new $20 million delayed-draw term loan that has a 100 bps unused fee, according to a market source.

As before, the facility also includes a $3 million revolver and a $139 million term loan.

Pricing on all tranches is around 7½%, including coupon and Libor floor, and the debt was sold at an original issue discount of 981/2.

Golub Capital is leading the deal that is being used to refinance existing debt and fund a small acquisition.

eCommerce is a Fort Worth, Texas-based developer of industry-specific business operations software and integrated supply chain automation.

Renaissance firms pricing

Renaissance Learning set pricing on its $175 million first-lien term loan (B1/BB-) at Libor plus 625 bps with a 1.5% Libor floor and an original issue discount of 96, according to a market source.

By comparison, talk at launch had been Libor plus 600 bps to 625 bps with a 1.5% floor and a discount of 96 to 97.

As before, the loan has 101 soft call protection for one year.

The company's $270 million credit facility also includes a $20 million revolver (B1/BB-) and a $75 million second-lien term loan.

RBC Capital Markets LLC and BMO Capital Markets Corp. are the lead banks on the deal.

Renaissance funding buyout

Proceeds from Renaissance Learning's credit facility will be used to help fund its acquisition by Permira Funds for $15 per share in cash for shares held by co-founders Terrance and Judith Paul, and $16.60 per share in cash for all other shares. The aggregate purchase price is approximately $455 million.

Originally, Permira was offering $14.85 per share in cash, or roughly $440 million, but the price was increased after a competing bid emerged from Plato Learning Inc. for $15.50 per share in cash.

In connection with raising the purchase price, Permira increased the equity component of the transaction to $215.8 million from $196.7 million.

Closing is expected on Oct. 19, now that shareholder approval for the transaction was received at a special meeting on Oct. 17.

Renaissance Learning is a Wisconsin Rapids, Wis.-based provider of technology-based school improvement and student assessment programs for K-12 schools.

AGCO sets talk

In other news, AGCO held a bank meeting in Georgia on Tuesday to officially kick off syndication on its $900 million five-year unsecured credit facility, and in connection with the event, it was announced that opening pricing on the deal would be Libor plus 150 bps, according to a market source.

The facility consists of a $500 million revolver, which has a 25 bps commitment fee, and a $400 million term loan A.

Rabobank is the underwriter on the deal that will be used to help fund the acquisition of GSI Holdings Corp. from Centerbridge Partners LP for $940 million and to refinance existing credit lines.

Closing is expected before the end of the year, subject to regulatory approval.

AGCO is a Duluth, Ga.-based manufacturer and distributor of agricultural equipment. GSI is an Assumption, Ill.-based manufacturer of grain storage and protein production systems.

CBRE launches loan

CBRE Group held a bank meeting as well, launching a roughly $250 million senior secured sterling term loan A-1 due May 2016 at pricing that is in line with existing term loan A pricing - a range of Libor plus 200 bps to 375 bps based on leverage, according to market sources.

HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are the lead banks on the deal that is being marketed to existing lenders, and are asking for commitments by early November.

Proceeds will be used to enhance the company's overall financial flexibility and for general corporate purposes. Earlier this year, the company was thinking about doing a $250 million equity offering. However, plans for the stock deal have been dropped, and this term loan A-1 is essentially acting as a replacement, sources explained.

CBRE is a Los Angeles-based commercial real estate services firm.

Skillsoft reveals OID

Another deal to launch on Tuesday was SkillSoft's $90 million incremental senior secured term loan (Ba3/BB-) due May 2017, which is being shopped at an original issue discount of 96 to 97, according to a market source.

Prior to launch, it was disclosed that pricing on the loan is Libor plus 475 bps with a 1.75% Libor floor - in line with current term loan pricing. However, the existing term loan was sold at a discount of 99 when it was obtained back in May.

Commitments are due on Oct. 25, but there is chatter that the deadline may be accelerated, the source said.

Morgan Stanley Senior Funding, Inc. and Barclays Capital Inc. are leading the deal that will be used to help fund the purchase of the Element K business from NIIT Ltd. for $110 million in cash.

SkillSoft is a Nashua, N.H.-based provider of on-demand e-learning and performance support services for global enterprises, government, education and small- to medium-sized businesses.

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