Paradigm, Sage Products break; LightSquared, Internet Brands, Informatica update loan sizes

By Sara Rosenberg

New York, June 2 – Paradigm Outcomes’ (Paradigm Acquisition Corp.) credit facility freed up for trading on Tuesday, with the term loan quoted above its original issue discount, and Sage Products Holdings III LLC’s term loan emerged in the secondary as well.

Meanwhile, in the primary market, LightSquared reduced the size of its first-lien term loan, Internet Brands Inc. upsized its incremental first-lien term loan and Informatica Corp. increased the amount of its U.S. term loan B.

Also, Academy Ltd. (Academy Sports + Outdoors) and PlayPower Inc. released price talk with launch, and Spectrum Brands Inc., Sivantos Group (formerly known as Siemens Audiology Solutions), Alere Inc. and Camin Cargo Control joined this week’s primary calendar.

Paradigm tops OID

Paradigm Outcomes’ credit facility hit the secondary market on Tuesday, with the $223,110,000 seven-year covenant-light first-lien term loan quoted at 99 bid, par offered, according to a trader.

Pricing on the term loan is Libor plus 500 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98.5. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $222 million, pricing was increased from Libor plus 450 bps, the discount was changed from 99, the call protection was extended from six months, and revisions were made to the excess cash flow sweep, the incremental allowance and the restricted payments capacity.

The company’s $248,110,000 credit facility (B1/B) also includes a $25 million revolver.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Summit Partners LP from Lightyear Capital.

Paradigm is a Walnut Creek, Calif.-based provider of catastrophic and complex case management for the workers’ compensation industry.

Sage frees up

Sage Products’ roughly $576 million first-lien term loan due Dec. 13, 2019 began trading too, with levels seen at par 1/8 bid, par ½ offered, a trader remarked.

Pricing on the loan, which includes $25 million of add-on debt that was added during syndication, is Libor plus 325 bps with a 1% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

Barclays and Deutsche Bank Securities Inc. are leading the deal.

Proceeds from the add-on will be used to repay a portion of the company’s second-lien term loan debt, and the remaining funds will be used to reprice the company’s existing roughly $551 million first-lien term loan from Libor plus 400 bps with a 1% Libor floor.

Leverage through the first-lien is 4.1 times, total leverage is 5.8 times, and net total leverage is 5.7 times.

Sage Products is a Cary, Ill.-based developer of products primarily for hospital intensive care units, which help prevent hospital-acquired conditions.

LightSquared trims size

Switching to the primary market, LightSquared cut its five-year first-lien term loan to $1.5 billion from $1.75 billion and left pricing at Libor plus 875 bps PIK with a 1% Libor floor and an original issue discount of 97, according to a market source.

As before, the loan is non-callable for two years, then at 104 in year three and 102 in year four, and has a ticking fee of 1% for the first 90 days, 1.5% for days 91 to 120, 2.5% for days 121 to 150 and 3% thereafter.

Previously in syndication, pricing on the term loan was raised from Libor plus 775 bps PIK, the call protection was sweetened from non-callable for one year, then at 102 in year two and 101 in year three, and the ticking fee was changed from 1% for the first 120 days and 2% after 120 days.

Credit Suisse Securities, Jefferies Finance LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund the company’s exit from Chapter 11 and refinance debtor-in-possession facilities.

LightSquared is a Reston, Va.-based wireless communications company.

Internet Brands tweaks deal

Internet Brands raised the size of its incremental first-lien term loan due July 8, 2021 to $175 million from $100 million, according to a market source, who said the loan is still priced at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99.5, and still has 101 soft call protection through July 2015.

The spread, floor and call protection on the incremental loan are in line with the company’s existing first-lien term loan.

Commitments are due at 11 a.m. ET on Wednesday.

Credit Suisse Securities, RBC Capital Markets and KKR Capital Markets are leading the deal that will be used for general corporate purposes.

The borrowers are MH Sub I LLC and Micro Holding Corp.

Internet Brands is an El Segundo, Calif.-based provider of vertically focused online media and software services.

Informatica upsizes

Informatica lifted its U.S. dollar seven-year covenant-light term loan B to $1.71 billion from a most recent amount of $1,705,000,000, according to a market source.

The U.S. tranche underwent a number of size changes before ending up at the new final amount, as it was increased from $1,605,000,000 when the company’s bond offering was downsized to $650 million from $750 million, and, prior to that, decreased from $1,875,000,000 when the company added a €250 million seven-year covenant-light term loan B to the capital structure.

The U.S. and euro term loans are priced at Libor/Euribor plus 350 bps with a 25 bps step-down at 6.25 times net total leverage, a 1% floor and a discount of 99.75, and have 101 soft call protection for six months.

Earlier in syndication, pricing on the term loans was lowered from Libor/Euribor plus 375 bps and the discount was revised from 99.5.

The company’s now $2.13 billion senior secured credit facility (B2/B) also includes a $150 million revolver.

Informatica lead banks

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities, Macquarie Capital (USA) Inc., Morgan Stanley Senior Funding, Nomura Securities International Inc., RBC Capital Markets and Deutsche Bank Securities are leading Informatica’s credit facility.

Proceeds will be used with the bonds and about $2,542,000,000 in equity to fund the buyout of the company by Permira funds and Canada Pension Plan Investment Board for $48.75 in cash per share. The transaction is valued at $5.3 billion.

Closing is targeted for the second or third quarter, subject to shareholder and regulatory approval.

Informatica is a Redwood City, Calif., provider of enterprise data integration software and services.

Academy reveals guidance

In more primary news, Academy held its call on Tuesday afternoon, launching its $1,825,000,000 seven-year term loan B (B2/B) with talk of Libor plus 350 bps to 375 bps with a 25 bps initial public offering step-down, a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

The company’s $2,475,000,000 credit facility also includes a $650 million ABL revolver.

Commitments are due on June 11, the source added.

Morgan Stanley Senior Funding, KKR Capital Markets, Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Mizuho and Wells Fargo Securities LLC are leading the term loan B, with Morgan Stanley on the left. JPMorgan is the left lead arranger on the revolver.

Proceeds, along with cash on hand, will be used by the Katy, Texas-based sports, outdoor and lifestyle retailer to refinance all of its existing debt and fund a one-time dividend.

PlayPower talk emerges

PlayPower came out with pricing guidance on its first-and second-lien term loans with its morning bank meeting, according to a market source.

The $150 million first-lien term loan (B2/B) is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $44 million second-lien term loan (Caa2/CCC+) is talked at Libor plus 850 bps to 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.

The company’s $224 million credit facility also includes a $30 million revolver (B2/B).

Commitments are due in two weeks, the source added.

Societe Generale is leading the deal that will be used to help fund the buyout of the company by Littlejohn & Co. LLC from Apollo Investment Corp., which is expected to close this quarter.

Senior leverage is 3.9 times, and total leverage is 5 times.

PlayPower is a Huntersville, N.C.-based designer, manufacturer and distributor of commercial playgrounds as well as indoor and outdoor recreational equipment.

Spectrum readies deal

Spectrum Brands set a lender call for 11 a.m. ET on Wednesday to launch a new credit facility that includes a $500 million revolver, a $1.45 billion seven-year covenant-light term loan, a €300 million seven-year covenant-light term loan and a C$75 million seven-year covenant-light term loan, sources said.

The term loans have 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on June 11, sources added.

Deutsche Bank Securities and Credit Suisse Securities are leading the deal that will be used to refinance an existing $400 million ABL revolver, about $1.58 billion in term loans and $300 million of 6.75% notes due 2020.

Spectrum Brands is a Middleton, Wis.-based diversified consumer products company.

Sivantos coming soon

Sivantos Group scheduled a lender call for 8 a.m. ET on Thursday to launch a repricing of its $600 million and €305 million covenant-light term loans due January 2022 that is talked at Libor/Euribor plus 325 bps with a 1% floor, a par issue price and 101 soft call protection for six months, according to a market source.

Also, with the repricing, the 25 bps step-down in the term loans will take effect at 4.5 times total net leverage instead of at 5 times total net leverage, the source said.

At close, a few months ago, the term loans priced at Libor/Euribor plus 450 bps with a 1% floor.

The company is also seeking an amendment to its credit agreement to align the general dividend basket to the bond indenture, which would add an additional €40 million or 11% of net total adjusted assets dividend basket to the existing documentation.

Commitments are due at 5 p.m. ET on June 11, the source added.

Goldman Sachs Bank USA and Deutsche Bank Securities are the global coordinators on the deal, with Goldman left on the U.S. debt and Deutsche left on the euro debt. UBS AG is a joint bookrunner.

Sivantos is a Singapore-based manufacturer and wholesaler of hearing aid devices.

Alere on deck

Alere surfaced with plans to hold a lender call at 11 a.m. ET on Wednesday to launch a $1.95 billion credit facility, sources said.

The facility consists of a $250 million five-year revolver, a $600 million five-year term loan A and a $1.1 billion seven-year covenant-light term loan B, sources continued.

Goldman Sachs Bank USA, GE Capital Markets, JPMorgan, RBC Capital Markets, DNB, Citizens Bank and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt.

Alere is a Waltham, Mass.-based provider of near-patient diagnosis, monitoring and health management.

Camin plans loan

Camin Cargo Control set a bank meeting for June 9 to launch a $150 million six-year term loan talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount that is still to be determined and 101 soft call protection for six months, according to a market source.

Citizens Bank is leading the deal.

Proceeds will be used to help fund the buyout of the company by Metalmark Capital.

Camin Cargo Control is a Linden, N.J.-based provider of inspection and laboratory testing services to the petroleum industry.

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