Verifone, API break; Stats sets talk; Berry, Delek, Omnia, Anvil/Smith-Cooper join primary

By Sara Rosenberg

New York, May 6 – Verifone Systems Inc. increased the size of its incremental first-lien term loan and finalized the issue price at the wide end of guidance, and then the debt surfaced in the secondary market, with levels quoted above its original issue discount.

Also, API Technologies Corp. modified the original issue discount on its first-lien term loan B before freeing up for trading on Monday afternoon.

In more happenings, Stats LLC released price talk with launch, and Berry Global Group Inc., Delek US Holdings Inc., Omnia Partners Inc. and Anvil International/Smith Cooper International hopped on this week’s primary calendar.

Verifone updated, frees up

Verifone Systems raised its fungible incremental first-lien term loan due Aug. 20, 2025 to $425 million from $300 million and firmed the original issue discount at 99, the wide end of the 99 to 99.5 talk, according to a market source.

The incremental term loan is priced at Libor plus 400 basis points with a 0% Libor floor, which matches existing first-lien term loan pricing, and has a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Recommitments were due at noon ET Monday, and the term loan freed to trade in the afternoon, with levels quoted at 99½ bid, par offered, another source added.

Credit Suisse Securities (USA) LLC, RBC Capital Markets and Barclays are leading the deal that will be used for general corporate purposes including potential mergers and acquisitions, and, because of the upsizing, to refinance in full the company’s second-lien term loan.

Verifone is a San Jose, Calif.-based company that makes secure electronic payment equipment.

API tweaked, trades

API Technologies tightened the original issue discount on its $245 million first-lien term loan B (B2/B) due May 9, 2026 to 99.5 from 99, a market source said.

As before, the first-lien term loan is priced at Libor plus 425 bps with a 0% Libor floor and has 101 soft call protection for six months.

Recommitments were due at noon ET on Monday and, by late day, the term loan B broke for trading, with levels seen at 99¾ bid, 100¼ offered, the source added.

The company’s $435 million of credit facilities also include a $50 million undrawn revolver (B2/B), a $90 million privately placed second-lien term loan and a $50 million privately placed second-lien delayed-draw term loan.

RBC Capital Markets, UBS Investment Bank and Antares Capital are leading the deal that will be used to help fund the buyout of the company by AEA Investors from J.F. Lehman & Co.

Closing is expected on Thursday.

API is a Marlborough, Mass.-based provider of high-performance RF, microwave, millimeterwave, power and security solutions for defense, aviation, communications and other commercial and industrial end markets.

Stats reveals guidance

In other news, Stats held its lender presentation on Monday and announced talk on its $400 million seven-year covenant-lite first-lien term loan B at Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on May 17, the source added.

The Chicago-based sports data, technology, statistics and content company is also getting a £50 million five-year revolver and a $140 million privately placed second-lien term loan.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, HSBC Bank USA, Mizuho Bank, Barclays and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the acquisition of Perform, a London-based sports content company, from DAZN Group and to pay fees and expenses related to the transaction.

The acquisition of Perform was enabled by an investment from Vista Equity Partners.

Closing is expected in the second half of this year, subject to customary conditions and regulatory approvals.

Berry on deck

Berry Global Group emerged with plans to hold a bank meeting in London on Wednesday and a bank meeting at 10 a.m. ET in New York on Thursday to launch $4.2 billion equivalent of term loans, according to a market source.

The debt is split between a $2.7 billion seven-year covenant-lite term loan B and a $1.5 billion equivalent euro seven-year covenant-lite term loan B, the source said.

Goldman Sachs, Wells Fargo, J.P. Morgan, Morgan Stanley and RBC are leading the deal that will be used to help fund the acquisition of RPC Group plc for 793p per share in cash, or about £5 billion, including the refinancing of RPC’s net debt, and to pay fees and expenses associated with the transaction and refinancing of a term loan S due 2020.

Closing is expected early in the third quarter, subject to customary conditions.

Berry is an Evansville, Ind.-based supplier of a non-woven, flexible and rigid products used within consumer and industrial end markets. RPC is a U.K.-based provider of plastic and recycled products for packaging and selected non-packaging markets.

Delek joins calendar

Delek US Holdings set a lender call for 9 a.m. ET on Tuesday to launch a fungible $250 million add-on covenant-lite term loan B due March 30, 2025, a market source remarked.

The add-on term loan has 101 soft call protection.

Commitments are due at noon ET on May 15, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to repay borrowings under the company’s ABL facility and pay transaction-related fees and expenses.

The company’s existing term loan B is sized at $693 million.

Delek is a Brentwood, Tenn.-based Permian-based integrated downstream energy company.

Omnia readies loan

Omnia Partners scheduled a lender call for Tuesday to launch a $160 million add-on first-lien term loan, according to a market source.

The company is also getting a $46 million pre-placed add-on second-lien term loan.

Barclays, Jefferies LLC and Fifth Third are leading the debt that will be used to fund a distribution to shareholders.

TA Associates is the sponsor.

Omnia is a Franklin, Tenn.-based group purchasing organization.

Anvil/Smith coming soon

Anvil /Smith Cooper set a bank meeting for Wednesday to launch $840 million of term loans, a market source said.

The debt consists of a $690 million seven-year first-lien term loan (B) talked at Libor plus 425 bps with two 25 bps step-downs based on net first-lien leverage, a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months and a $150 million eight-year second-lien term loan (CCC+) talked at Libor plus 825 bps with a 0% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source added.

Commitments are due at noon ET on May 17.

J.P. Morgan Securities LL is leading the deal that will be used to help fund the merger of Anvil and Smith-Cooper. The combined company will be majority owned by Tailwind Capital.

Closing is expected this quarter, subject to customary conditions.

Anvil is an Exeter, N.H.-based designer, manufacturer and provider of products that connect and support piping systems. Smith-Cooper is a Commerce, Calif.-based designer and provider of pipes, valves and fittings.

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