Royal Oak, Ravago Holdings free to trade; U.S. Security revises commitment deadline

By Sara Rosenberg

New York, June 30 – Royal Oak Enterprises LLC’s credit facility emerged in the secondary market on Thursday, with the term loan B seen trading above its original issue discount, and Ravago Holdings America Inc.’s term loan broke too.

Moving to the primary market, U.S. Security Associates Inc. extended the commitment deadline on its credit facility, and Mediware Information Systems Inc. pulled its loan transaction from market.

Royal Oak hits secondary

Royal Oak Enterprises’ credit facility began trading on Thursday, with the $325 million covenant-light term loan B quoted at 99 5/8 bid, 100 1/8 offered, a trader said.

Pricing on the term loan B is Libor plus 475 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year, which was extended from six months during syndication.

The company’s $365 million credit facility also includes a $40 million revolver.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to help fund the buyout of the company by Mariposa Capital.

Royal Oak is a Roswell, Ga.-based maker of charcoal products.

Ravago tops OID

Ravago’s $325 million term loan (B2/BB) broke as well, with levels quoted at 99˝ bid, par offered, according to a trader.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the deal that will be used to refinance existing debt.

Ravago is a provider of distribution, resale, compounding and recycling service for plastic and elastomeric raw materials.

Internet Brands steady

Also, in the secondary market, Internet Brands Inc.’s fungible $175 million incremental funded first-lien term loan due July 8, 2021 was seen at 99 1/8 bid, 99 5/8 offered during the session, in line with where it broke for trading on Wednesday, a trader remarked.

Pricing on the incremental term loan is Libor plus 400 bps with a step-down at net first-lien leverage of 3.75 times and a 1% Libor floor, which matches existing term loan pricing. The new debt was sold at an original issue discount of 99.04.

Credit Suisse Securities (USA) LLC, KKR Capital Markets and RBC Capital Markets LLC are leading the deal that is being used to fund a dividend.

During syndication, a $150 million delayed-draw term loan with a 12-month availability period was eliminated from the transaction. This tranche was going to be used for future general corporate purposes and for future acquisitions.

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

U.S. Security moves deadline

Switching to the primary market, U.S. Security Associates pushed out the commitment deadline on its $525 million senior secured credit facility (B2/B+) to 5 p.m. ET on July 6 from 5 p.m. ET on June 29, according to a market source.

The facility includes a $75 million revolver, and a $450 million seven-year term loan B talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Goldman Sachs & Co., KeyBanc Capital Markets LLC and ING are leading the deal that will be used to refinance existing bank debt.

U.S. Security Associates is a Roswell, Ga.-based safety and security services company.

Mediware shelves deal

Mediware Information Systems withdrew its $330 million credit facility (B2/B) from the primary market, a source remarked.

The facility consisted of a $30 million revolver, and a $300 million term loan talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

SunTrust Robinson Humphrey Inc. was leading the deal that was going to be used to refinance existing debt and fund a distribution to shareholders.

Mediware is a Lenexa, Kan.-based provider of specialized healthcare IT solutions for automating and managing complex health care processes.

Bats Global closes

In other news, Bats Global Markets Inc. completed its $750 million credit facility (BB-) that includes a $100 million three-year revolver and a $650 million seven-year term loan B, a news release said.

Pricing on the term loan is Libor plus 350 bps with a step-down to Libor plus 325 bps at 2 times senior secured leverage and no Libor floor. The debt was sold at an original issue discount of 99.5.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 350 bps to 375 bps talk, the step-down was added and the discount finalized at the tight end of the 99 to 99.5 talk.

Bank of America Merrill Lynch, Barclays and Deutsche Bank Securities Inc. led the deal that was used to refinance an existing $100 million revolver and $656 million term loan B.

Bats Global Markets is a Kansas City-based operator of exchanges and services for financial markets.

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