Bay Club, Inteva free to trade; Xplornet revises term loan; Mediware, Redbox set launches

By Sara Rosenberg

New York, Aug. 31 – The Bay Club’s credit facility made its way into the secondary market on Wednesday after undergoing pricing revisions during syndication, and Inteva Products LLC’s term loan broke as well.

Moving over to the primary market, Xplornet Communications Inc. modified the original issue discount on its term loan as a result of strong demand from investors.

Additionally, Mediware Information Systems Inc. joined next week’s new issue calendar with a new credit facility that had been attempted but was then pulled in June, and Redbox Automated Retail LLC came out with timing on the launch of its credit facility.

Bay Club starts trading

Bay Club’s credit facility broke for trading on Wednesday, with the $350 million six-year first-lien term loan (B3) quoted at 98 bid, 99 offered and the $75 million one-year asset-sale bridge loan (Ba3) quoted at 99 bid, par offered, according to a trader.

Pricing on the term loan and asset-sale loan is Libor plus 650 basis points with a 1% Libor floor. The term loan was sold at an original issue discount of 98 and includes 101 soft call protection for one year. The asset-sale loan was issued at a discount of 99.

During syndication, pricing on the term loan and asset-sale loan was lifted from talk of Libor plus 500 bps to 550 bps, the discount on the term loan widened from 99, and the discount on the asset-sale loan was revised from 99.5.

The company’s $445 million credit facility also includes a $20 million five-year revolver (Ba3).

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt.

Bay Club is a San Francisco-based active lifestyle and hospitality company with a network of 24 country clubs across 10 campuses.

Inteva hits secondary

Inteva Products’ $180 million five-year term loan B (B+) freed up for trading too, with levels quoted at 99¾ bid, 100¾ offered, a source remarked.

Pricing on the term loan is Libor plus 850 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. The debt has hard call protection of 102 in year one and 101 in year two.

When the company first came to market in July, it was seeking a $250 million seven-year term loan talked at Libor plus 525 bps to 550 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months. However, on July 23, the loan was relaunched at the smaller size and with the more investor-friendly terms.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Well Fargo Securities LLC and TD Securities (USA) LLC are leading the deal that will be used to refinance existing debt and to prefund capital expenditures for recent business wins.

The company cancelled plans to use proceeds for a dividend when the term loan was downsized.

Inteva is a Troy, Mich.-based designer, manufacturer and assembler of highly engineered closure systems, roof systems, interior systems, motors and electronics for automotive original equipment manufacturers.

Xplornet tweaks discount

Switching to the primary market, Xplornet Communications changed the original issue discount on its $285 million five-year term loan (B1/B) to 99 from 98.5 and left pricing unchanged at Libor plus 600 bps with a 1% Libor floor, a market source said.

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

The company’s $335 million credit facility also includes a $50 million revolver (Ba3/B+).

Allocations are targeted to go out next week, the source added.

SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp. and Jefferies Finance LLC are leading the deal that will be used to refinance existing senior secured notes.

Xplornet is a Woodstock, New Brunswick-based rural-focused broadband service provider.

Mediware returning

Mediware Information Systems set a lender call for Sept. 8 to launch a $330 million credit facility (B), split between a $30 million revolver and a $300 million seven-year term loan B according to a market source.

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

Net leverage is 4.5 times, the source said.

In June, the company had launched a credit facility with the same structure and use of proceeds, but the deal was withdrawn from market shortly thereafter. Talk on the pulled term loan was 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.

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

Redbox readies launch

Redbox Automated Retail scheduled a bank meeting for Sept. 7 to launch its previously announced $440 million senior secured credit facility, a market source said.

The facility consists of a $40 million revolver and a $400 million first-lien term loan, the source added.

Recent filings with the Securities and Exchange Commission said that the revolver will mature in 4.5 years, the term loan will mature in five years, and the term loan will have a 1% Libor floor and 101 soft call protection for one year.

Jefferies Finance LLC, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the deal that is being done in connection with the buyout of Redbox’s parent company, Outerwall Inc., by Apollo Global Management LLC for $52.00 per share in cash. The transaction has a total enterprise value of about $1.6 billion, including net debt.

Closing on the buyout is expected during the third quarter, subject to satisfaction of a minimum tender condition, the receipt of regulatory approvals and other customary conditions.

Redbox is a provider of DVD, Blu-ray and video game rentals via automated retail kiosks.

CLEAResult allocates

CLEAResult on Wednesday allocated its $325 million credit facility that consists of a $40 million five-year revolver and a $285 million seven-year term loan, according to a market source.

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 99. The debt has 101 soft call protection for one year.

During syndication, the term loan was downsized from $330 million, pricing was lifted from talk of Libor plus 475 bps to 500 bps and the call protection was extended from six months, the source said.

KeyBanc Capital Markets, Citizens Bank and Nomura are leading the deal that will be used to fund a dividend, the amount of which was reduced with the term loan downsizing, and to refinance existing debt.

CLEAResult is an Austin, Texas-based designer, marketer and implementer of energy programs.

M/A-COM closes

In other news, M/A-COM Technology Solutions Holdings Inc. closed on its $250 million add-on term loan (B+) due May 8, 2021, according to an 8-K filed with the Securities and Exchange Commission.

The add-on loan is priced at Libor plus 375 bps with a 0.75% Libor floor and was sold at an original issue discount of 99.05.

During syndication, the add-on term loan was upsized from $175 million.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Citizens Bank led the deal that was used to add cash to the balance sheet.

M/A-COM is a Lowell, Mass.-based supplier of high-performance analog RF, microwave, millimeterwave and photonic semiconductor products.

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