Surgery Center, Securus, International Seaways, WEX, Jacuzzi break; Kofax, Coveris revised

By Sara Rosenberg

New York, June 20 – A number of deals freed up for trading on Tuesday, including Surgery Center Holdings Inc., Securus Technologies Holdings Inc., International Seaways Operating Corp., WEX Inc. and Jacuzzi Brands LLC.

Switching to the primary market, Kofax (Project Leopard Holdings) increased the size of its term loan, added a pricing step-down and tightened the original issue discount, Coveris Holdings SA raised pricing on its U.S. and euro term loans, sweetened the call protection, modified maturities and revised the extension fee offered to existing lenders, and Envision Healthcare Corp. firmed the issue price on its term loan at the tight side of guidance.

Additionally, Bowlmor AMF, Venator Materials plc and Mitchell International Inc. released price talk with launch, and Liquidnet Holdings Inc., MKS Instruments Inc., Ivanti Software Inc. and Immucor Inc. joined this week’s calendar.

Surgery Center hits secondary

Surgery Center’s credit facilities started trading on Tuesday, with the $1.29 billion seven-year senior secured covenant-light term loan quoted at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the term loan is Libor plus 325 basis points with a step-down to Libor plus 300 bps at 0.25 times inside closing net secured leverage and a 1% Libor floor. The loan was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

On Monday, pricing on the term loan finalized at the low end of the Libor plus 325 bps to 350 bps talk, the step-down was added and the discount was tightened from 99.5.

The company’s $1,365,000,000 of senior secured credit facilities (B1/B) also include a $75 million five-year revolver.

Jefferies LLC and KKR Capital Markets are leading the deal.

Surgery buying National Surgical

Proceeds from Surgery Center’s credit facilities and $370 million of bonds, which were upsized recently from $335 million, will be used to help fund the acquisition of National Surgical Healthcare Inc. from Irving Place Capital for about $760 million and to refinance an existing term loan.

In connection with the transaction, Bain Capital Private Equity will acquire H.I.G. Capital’s existing equity stake in Surgery Partners, and will contribute preferred equity.

Closing is expected this year, subject to regulatory approvals and other customary conditions.

Surgery Center is a Nashville-based health care services company. National Surgical is a Chicago-based owner and operator of surgical facilities in partnership with local physicians.

Securus starts trading

Securus’ credit facilities broke for trading as well, with the $875 million seven-year covenant-light first-lien term loan (B2/B) quoted at 99¾ bid, par ½ offered and the $282.5 million eight-year covenant-light second-lien term loan (Caa2/CCC+) quoted at par bid, 101 offered, a trader said.

Pricing on the first-lien term loan is Libor plus 450 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 one year.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor, and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

Both term loans have a ticking fee of half the spread for days 31-60, the full spread from days 61 to 90 and the full spread plus the greater of Libor or the Libor floor thereafter.

During syndication, the first-lien term loan was upsized from $870 million and the second-lien term loan was upsized from $280 million to cover expected ticking fees payable at close, pricing the on the first-lien term loan increased from talk of Libor plus 375 bps to 400 bps and the call protection was extended from six months, and pricing on the second-lien term loan firmed at the high end of the Libor plus 800 bps to 825 bps talk.

Securus lead banks

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Jefferies LLC, Morgan Stanley Senior Funding Inc. and BNP Paribas Securities Corp. are leading Securus’ credit facilities.

Along with the term loans, the $1,307,500,000 of credit facilities include a $150 million super-priority revolver (BB).

Proceeds will be used to help fund the buyout of the company by Platinum Equity from ABRY Partners.

Securus is a Dallas-based provider of advanced inmate communications, investigative technologies and information management solutions to the corrections industry.

International Seaways tops OID

International Seaways’ credit facilities also freed to trade, with the $500 million five-year first-lien term loan quoted at 98½ bid, par offered, a market source said.

Pricing on the term loan is Libor plus 550 bps with a 1% Libor floor, and it was sold at an original issue discount of 98. The loan has hard call protection of 102 in year one and 101 in year two.

During syndication, the term loan was downsized from $550 million, pricing was increased from talk of Libor plus 475 bps to 500 bps, the discount widened from 99, the call protection was revised from a 101 soft call for six months, amortization was sweetened to 2.5% in year one and 5% thereafter from 1% per annum, the net loan-to-value covenant was reduced to 65% from 75%, the 50% excess cash flow sweep was set for life and starts in 2017, instead of being 50% with step-downs starting in 2018, and the incremental was changed to $50 million from $50 million plus unlimited to 3 times gross leverage.

The New York-based tanker company’s $550 million of senior secured credit facilities also include a $50 million 4.5-year super-priority revolver.

Jefferies LLC, J.P. Morgan Securities LLC and UBS Investment Bank are leading the deal that will be used to refinance existing bank debt and for general corporate purposes, including fleet renewal and growth.

WEX breaks

WEX’s $1,191,000,000 term loan B (BB-) emerged in the secondary market, with levels seen at par 1/8 bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 275 bps with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan B down from Libor plus 350 bps with a 0.75% Libor floor.

WEX is a South Portland, Maine-based provider of corporate payment solutions.

Jacuzzi levels surface

Another deal to break was Jacuzzi Brands’ $170 million six-year term loan B (B3/B), with levels quoted at 98¼ bid, 99¼ offered, a market source remarked.

Pricing on the loan is Libor plus 700 bps with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt has call protection of 102 in year one and 101 in year two.

Nomura and Citizens Bank are leading the deal that will be used to refinance existing debt and fund an acquisition.

Jacuzzi Brands is a Chino Hills, Calif.-based manufacturer and distributor of branded bath and plumbing products.

Kofax tweaks deal

Moving to the primary market, Kofax raised its six-year covenant-light first-lien term loan to $560 million from $505 million, added a 25 bps pricing step-down subject to 0.5 times inside closing first-lien net leverage and changed the original issue discount to 99.75 from 99, according to a market source.

Initial pricing on the term loan is still Libor plus 550 bps with a 1% Libor floor, and the debt still has 101 soft call protection for six months.

The company’s now $620 million of credit facilities (B) also include a $60 million revolver.

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

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Thoma Bravo from Lexmark International Inc.

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

Kofax is an Irvine, Calif.-based provider of software solutions and services across multi-channel capture and financial process automation markets.

Coveris reworked

Coveris Holdings lifted pricing on its $510 million first-lien term loan to Libor plus 425 bps from Libor plus 400 bps and on its €402 million first-lien term loan to Euribor plus 400 bps from Euribor plus 350 bps, extended the 101 soft call protection to one year from six months and changed maturities to June 2022 from June 2024, a market source said.

Proceeds will be used to extend existing term loan maturities from May 18, 2019 and revise pricing from Libor/Euribor plus 350 bps with a 1% floor.

The extension fee offered to existing U.S. and euro loan lenders was increased to 50 bps from 25 bps, the source continued.

As before, both term loans have a 1% floor and original issue discount talk of 99.5 for new money lenders or upsizes of existing positions, to the extent paper becomes available.

Commitments are due by the close of business on Thursday, the source added.

Goldman Sachs Bank USA is leading the deal (B2/B) for Coveris, a Sun Capital Partners Inc. portfolio company based in Chicago that manufactures and distributes packaging solutions and coated film technologies.

Envision sets issue price

Envision Healthcare firmed the issue price on its $500 million incremental term loan B at par, the tight end of the 99.75 to par talk, a market source remarked.

As before, pricing on the incremental loan is Libor plus 300 bps with a 0.75% Libor floor, and the debt has 101 soft call protection until Dec. 17.

J.P. Morgan Securities LLC is leading the deal that will be used to fund acquisition opportunities currently in the company’s pipeline that are expected to be completed during the second and third quarters and to repay any amounts outstanding under its asset-based revolver.

At March 31, the company had $3.49 billion outstanding under its term loan B due 2023.

Envision Healthcare is a provider of physician-led services and post-acute care and ambulatory surgery services with co-headquarters in Nashville, Tenn., and Greenwood Village, Colo.

Bowlmor reveals guidance

Also in the primary market, Bowlmor AMF held its bank meeting on Tuesday, and with the event, talk on its $535 million seven-year first-lien term loan and $160 million eight-year second-lien term loan was announced, according to a market source.

Talk on he first-lien term loan is Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 875 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are leading the $695 million in term loans that will be used to help fund the buyout of the company by Atairos Group Inc. from a group of previous investors led by Cerberus Capital Management LP.

Bowlmor AMF is a New York-based operator of bowling centers.

Venator discloses talk

Venator Materials came out with talk of Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $350 million term loan B (Ba3/BB) that launched with a meeting during the session, a market source said.

Commitments are due on June 29, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used with an expected $300 million notes offering to help fund the spin-off of the company from Huntsman Corp.

Venator is a manufacturer and marketer of chemical products comprising a range of pigments and additives to color and protect buildings and reduce energy consumption.

Mitchell launch

Mitchell International held its lender call, launching its fungible $70 million incremental term loan due Oct. 12, 2020 at talk of Libor plus 350 bps with a 1% Libor floor, in line with existing term loan pricing, and a par issue price, a market source remarked.

Commitments are due at 3 p.m. ET on Thursday, the source added.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to repay existing debt and fund cash to the balance sheet for general corporate purposes.

Mitchell is a San Diego-based provider of technology, connectivity and information solutions to the property and casualty claims and collision repair industries.

Liquidnet on deck

Liquidnet scheduled a bank meeting for 10:30 a.m. ET on Thursday to launch a $200 million seven-year senior secured first-lien term loan (B1) that includes 101 soft call protection for six months, according to a market source.

Jefferies LLC is leading the deal.

The new debt will be used to refinance an existing term loan, to fund the acquisition of OTAS Technologies, and for general corporate purposes, including capital expenditures and potential future acquisitions.

Liquidnet is a New York-based regulated agency securities broker that operates a trading platform connecting asset managers to trade equities and fixed income securities. OTAS is a London-based analytics platform that delivers actionable market intelligence and context to institutional traders and portfolio managers.

MKS readies loan

MKS Instruments set a lender call for 2 p.m. ET on Wednesday to launch a $575 million term loan B due April 29, 2023, a market source remarked.

Barclays is leading the deal that will be used to reprice an existing term loan B from Libor plus 275 bps with a 0.75% Libor floor.

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.

Ivanti joins calendar

Ivanti Software will hold a lender call at 11 a.m. ET on Wednesday to launch a $40 million senior secured incremental first-lien term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used for general corporate purposes and to partially fund a near term acquisition target.

Ivanti, formerly known as LANDesk Software Group Inc., is a South Jordan, Utah-based user-centered IT management company.

Immucor plans call

Immucor scheduled a call for credit facility lenders for 11 a.m. ET on Wednesday, a market source said.

J.P. Morgan Securities LLC is leading the deal.

Immucor is a Norcross, Ga.-based provider of transfusion and transplantation diagnostic products.

ADT allocates

In other news, ADT Corp.’s $3,554,000,000 senior secured covenant-light first-lien term loan due May 2, 2022 allocated on Tuesday, according to a market source.

Pricing on the term loan is Libor plus 275 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for one year.

During syndication, the spread on the loan was set at the high end of the Libor plus 250 bps to 275 bps talk and the call protection as extended from six months.

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

Closing is expected on June 29.

ADT is a security services company.

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