Autokiniton, ION Markets, Cornerstone Building, Hyland break; Culligan, Soliant tweak deals

By Sara Rosenberg

New York, March 26 – Autokiniton US Holdings Inc. lowered pricing on its term loan B, modified the step-downs and tightened the original issue discount, and ION Markets reduced the size of its U.S. term loan, increased the size of its euro term loan and changed original issue discounts on both tranches, and then both of these deals began trading on Friday.

Also, Cornerstone Building Brands Inc. set the spread on its term loan B at the high end of talk and widened the issue price before breaking for trading, and Hyland Software Inc.’s bank debt made its way into the secondary market as well.

In other news, Culligan Holding Inc. (AI Aqua Merger Sub Inc.) decreased its repriced first-lien term loan B size, raised pricing on the debt as well as on a delayed-draw term loan, and revised the delayed-draw ticking fee.

Furthermore, Soliant upsized its term loan B, firmed the spread at the low end of guidance and adjusted the original issue discount, Teneo accelerated the commitment deadline for its incremental first-lien term loan and LGC announced price talk on its U.S. and euro term loan B with its investor call.

Autokiniton flexes

Autokiniton trimmed pricing on its $810 million seven-year second secured covenant-lite term loan B (B) to Libor plus 450 basis points from Libor plus 475 bps, and changed the step-downs to one 25 bps step-down at 0.5x inside of closing date net first-lien leverage and one 25 bps step-down upon a successful initial public offering, from a 25 bps step-down at 0.5x inside of closing date net first-lien leverage and a 25 bps step-down at 1x inside of closing date net first-lien leverage, according to a market source.

The company also adjusted the original issue discount on the term loan to 99.75 from talk in the range of 99 to 99.5, revised MFN to 50 bps with a 12-month sunset from 75 bps with a six-months sunset, and added that lender calls and management discussion and analysis are now required for all quarters, the source said.

Changes were made to material IP transfer restrictions and guarantee release for non-wholly owned subsidiaries as well.

As before, the term loan has a 0.5% Libor floor and 101 soft call protection for six months.

Autokiniton hits secondary

Recommitments for Autokiniton’s term loan B were due at noon ET on Friday and the debt began trading in the afternoon, with levels quoted at par bid, par ½ offered, another source added.

Citigroup Global Markets Inc., BofA Securities Inc., Barclays, Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to refinance an existing term loan A, term loan B-1 and term loan B-2.

Closing is expected during the week of March 29.

Autokiniton is a New Boston, Mich.-based provider of automotive components and assembly solutions.

ION changes emerge

ION Markets trimmed its U.S. seven-year covenant-lite first-lien term loan to $1.65 billion from $1.8 billion and raised its euro seven-year covenant-lite first-lien term loan to €1.75 billion from €1.5 billion, resulting in an increase to the total deal size to about €3.1 billion equivalent from around €3 billion equivalent, a market source remarked.

Also, the original issue discount talk on the U.S. term loan was revised to a range of 99.5 to 99.75 from just 99.5, and then finalized at 99.75, and discount talk on the euro term loan was adjusted to a range of 99.75 to par from just 99.75, and then firmed at par, the source said.

As before, the U.S. term loan is priced at Libor plus 475 bps with a 0% Libor floor, the euro term loan is priced at Euribor plus 425 bps with a 0% floor and both loans have 101 soft call protection for six months.

ION starts trading

Recommitments for ION Markets’ were due at noon ET on Friday and the U.S. term loan freed to trade in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Credit Suisse is the physical bookrunner on the deal. Standard Chartered and UBS are joint bookrunners.

The loans will refinance debt, fund general corporate purposes and pay transaction fees and expenses.

ION Markets is a provider of trading automation, analytics and infrastructure to financial market participants. The loan borrowers are ION Trading Finance Ltd. and ION Trading Technologies Sarl.

Cornerstone updated, breaks

Cornerstone Building Brands set pricing on its $2.6 billion seven-year term loan B (B1/B+) at Libor plus 325 bps, the high end of the Libor plus 300 bps to 325 bps talk, and revised the original issue discount to 99.5 from 99.75, according to a market source.

The term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Friday and the term loan B began trading later in the day, with levels quoted at 99½ bid, par offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used with balance sheet cash to extend the maturity of an existing $2.498 billion term loan B due 2025 and fund the redemption of 8% senior notes due 2026.

The company also plans to extend the maturity of its $611 million ABL credit facility to April 12, 2026 and extend the maturity of its $115 million revolver to April 12, 2026.

Cornerstone Building is a Cary, N.C.-based manufacturer of exterior building products.

Hyland frees up

Hyland Software’s bank debt broke for trading too, with the fungible $140 million incremental covenant-lite first-lien term loan (B1/B-) due July 2024 quoted at par bid, par 3/8 offered and the $670 million covenant-lite second-lien term loan (Caa1/CCC) due July 2025 quoted at par ¼ bid, a market source remarked.

Pricing on the incremental first-lien term loan is Libor plus 350 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.75.

The second-lien term loan is priced at Libor plus 625 bps with a 0.75% Libor floor and has 101 hard call protection for one year. Of the total second-lien term loan amount, $120 million is an incremental loan that was issued at a discount of 99.75, and the remainder is a repricing of the existing second-lien loan that was issued at par.

During syndication, the incremental first-lien term loan was upsized from $110 million, the incremental second-lien portion was downsized from $150 million resulting in a reduction of the total tranche size from $700 million, and the original issue discount on the first-and second-lien incremental debt was tightened from 99.5.

Hyland buying Nuxeo

Proceeds from Hyland’s incremental debt will be used to fund the acquisition of Nuxeo, a content services platform and digital asset management provider.

The repricing will take the existing second-lien term loan down from Libor plus 700 bps with a 0.75% Libor floor.

Credit Suisse Securities (USA) LLC is the lead on the deal.

Closing is expected in April.

Hyland is a Westlake, Ohio-based content services platform provider.

Culligan reworked

Back in the primary market, Culligan scaled back its repriced covenant-lite first-lien term loan B (B2/B) due December 2023 to roughly $397 million from roughly $665 million, a market source said.

In addition, pricing on the repriced loan and on the $100 million covenant-lite delayed-draw term loan (B2/B) due December 2023 was lifted to Libor plus 375 bps from Libor plus 325 bps, and the delayed-draw term loan ticking fee was revised to Libor plus the coupon starting on day one from half the margin from days 46 to 90 and the full margin thereafter, the source added.

The term loan debt still has a 1% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Friday.

In connection the pricing flex, the repriced term loan and delayed-draw term loan will no longer be fungible with the company’s existing term loan B-1 priced at Libor plus 325 bps.

Morgan Stanley Senior Funding Inc. is the left lead on the deal.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

Soliant revised

Soliant lifted its term loan B to $320 million from $300 million, firmed pricing at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, and tightened the original issue discount to 99.25 from 99, according to a market source.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

JPMorgan Chase Bank is leading the deal that will be used to refinance an existing term loan and fund a dividend.

Soliant is an Atlanta-based provider of health care jobs and staffing services.

Teneo tweaks timing

Teneo moved up the commitment deadline for its fungible $150 million incremental first-lien term loan (B2/B) due July 2025 to noon ET on Monday from end of day on Tuesday, a market source remarked.

Like the existing term loan, the incremental term loan is priced at Libor plus 525 bps with a 1% Libor floor.

The incremental term loan is talked with an original issue discount talk of 98.5 to 99 and has 101 soft call protection for six months.

Goldman Sachs Bank USA is leading the deal that will be used to fund the acquisition of Deloitte UK’s restructuring services business.

CVC Capital Partners is the sponsor.

Teneo is a New York-based CEO advisory firm.

LGC guidance

LGC held its investor call on Friday morning and announced price talk on its £496 million equivalent U.S. and euro covenant-lite term loan B due April 2027, according to a market source.

Talk on the U.S. term loan tranche is Libor plus 350 bps with a 0.5% Libor floor and an original issue discount of 99.5, and talk on the euro term loan tranche is Euribor plus 325 bps to 350 bps with a 0% floor and a discount of 99.5, the source said. Both tranches have 101 soft call protection for six months.

Commitments are due at 7 a.m. ET on Thursday.

HSBC and Morgan Stanley are the joint global coordinators and physical bookrunners on the deal. Barclays, BNP Paribas, Credit Agricole, KKR Capital Markets, Mizuho, MUFG, Natixis, NatWest, Nomura and SMBC are joint bookrunners. Wilmington Trust is the agent.

The term loan borrowings will be used to refinance some existing debt, fund a shareholder distribution and pay related transaction fees and expenses.

LGC is a U.K.-based life sciences tools company.

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