Caesars Growth, Asurion break atop par; Inmar, Garda, Radio Systems, Accuride update deals

By Sara Rosenberg

New York, April 24 – Caesars Growth Properties Holdings LLC’s incremental first-lien term loan and repriced term loan hit the secondary market on Monday above their issue price, and Asurion LLC’s term loan B-5 freed to trade as well.

Switching to the primary market, Inmar Inc. trimmed spread on its first- and second-lien term loans and added a step-down to the first-lien tranche, and Garda World Security Corp. is considering downsizing its term loan B to accommodate the potential results of a bond redemption offer.

Also, Radio Systems Corp. lowered pricing on its term loan B, added a step-down and set the issue price at the tight side of guidance, and Accuride Corp. revised the original issue discount on its add-on term loan B.

In addition, Misys Ltd. accelerated the commitment deadline on its credit facilities, and Truck Hero Inc. joined this week’s primary calendar.

Caesars Growth frees up

Caesars Growth Properties’ $175 million incremental first-lien term loan due May 2021 and repricing of its $1,143,000,000 term loan due May 2021 began trading on Monday, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the term loan debt is Libor plus 300 basis points with a 25 bps leverage-based step-down and a 1% Libor floor. The debt has 101 soft call protection for six months and was issued at par.

On Friday, pricing on the term loan debt was lowered from Libor plus 325 bps, the step-down was added and the issue price firmed at the tight end of the 99.75 to par talk.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the deal.

The incremental loan will be used to refinance the Cromwell term loan and the repricing will take the existing term loan down from Libor plus 525 bps with a 1% Libor floor.

Caesars Growth is a Las Vegas-based casino properties owner.

Asurion starts trading

Asurion’s $1,372,000,000 term loan B-5 (Ba3) broke for trading too, with levels seen at par ¼ bid, par 5/8 offered, a trader said.

Pricing on the B-5 loan is Libor plus 300 bps with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the spread on the loan firmed at the low end of the Libor plus 300 bps to 325 bps talk and the issue price finalized at the tight end of the 99.875 to par talk.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan.

Asurion is a Nashville-based provider of technology protection services.

Inmar flexes lower

Moving to the primary market, Inmar cut pricing on its $580 million seven-year covenant-light first-lien term loan (B1/B) to Libor plus 350 bps from Libor plus 375 bps and added a 25 bps leverage-based step-down, while keeping the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, a market source said.

Regarding the company’s $175 million eight-year covenant-light second-lien term loan (Caa1/CCC+), the spread was scaled back to Libor plus 800 bps from Libor plus 825 bps, the source continued. The 1% Libor floor, discount of 98.5 and call protection of 102 in year one and 101 in year two were unchanged.

The company’s $830 million in credit facilities also include a $75 million revolver (B1/B).

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

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to help fund the buyout of the company by Omers Private Equity and management from ABRY Partners.

Closing is expected this quarter, at which time ABRY will remain a significant shareholder in the company.

Inmar is a Winston-Salem, N.C.-based provider of technology-enabled promotion and inventory, logistics and settlement services.

Garda may cut size

Garda World Security is contemplating trimming its seven-year senior secured covenant-light term loan B by up to $240 million to $740 million-equivalent from $980 million-equivalent and its new senior notes offering by $130 million to $500 million from $630 million depending on if bondholders decline a redemption offer, according to a market source.

The source explained that in connection with the change of control triggered by Rhône Capital’s acquisition of a majority equity interest in the company, holders of the existing senior notes are being offered a 101 change of control offer, and up to $357 million of the existing bonds may choose to decline the offer and roll into the new capital structure.

Any reduction of the new term loan will be done through a par prepayment on the closing date, expected to occur on or about May 15, and term loan lenders will retain the difference between the original issue discount and par on any prepaid amounts.

Also, the credit agreement will permit remaining existing senior notes to be refinanced in the future with new term loans up to the amount of any downsize, plus the amount of any premiums, fees and accrued interest in connection with the refinancing, the source continued.

Garda lead banks

Barclays, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., TD Securities (USA) LLC and Societe Generale are leading Garda’s credit facilities, which also provide for a $240 million revolver.

The term loan B is split between a U.S. dollar and Canadian dollar piece, with the U.S. tranche talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, and the Canadian tranche talked at CDOR plus 425 bps with a 1% floor and a discount of 99 to 99.5. Both tranches include 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Tuesday.

Proceeds will be used to help fund a refinancing and recapitalization.

If the term loan and the bonds are downsized by the full amount, net secured leverage will be 2.9 times, down from 3.8 times under the original structure, and net total leverage will be 6.2 times, down from 6.3 times under the original structure, the source added.

Garda is a Montreal-based provider of cash logistics and security solutions.

Radio Systems revised

Radio Systems reduced pricing on its $300 million seven-year term loan B (B1) to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, added a step-down to Libor plus 325 bps when total net leverage is less than 3 times, firmed the original issue discount at 99.5, the tight end of the 99.25 to 99.5 talk, and removed the 18 month sunset from the 50 bps MFN protection, a market source remarked.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Recommitments are due at 3 p.m. ET on Tuesday, the source added.

Fifth Third Bank is leading the deal that will be used to refinance existing debt.

Radio Systems is a Knoxville, Tenn.-based manufacturer of pet products.

Accuride tweaks OID

Accuride modified the original issue discount on its fungible $50 million add-on term loan B to 99.5 from 99, and left pricing at Libor plus 700 bps with a 1% Libor floor, a market source said.

Commitments were still due at 5 p.m. ET on Monday, the source added.

RBC Capital Markets is leading the deal that will be used with additional sponsor equity to fund an acquisition.

Accuride is an Evansville, Ind.-based supplier of components to the commercial vehicle industries.

Misys moves deadline

In more primary happenings, Misys accelerated the commitment deadline on its $5.75 billion in senior secured credit facilities to 4 p.m. ET on Thursday for U.S. tranches and 5 p.m. UK time on Thursday for euro tranches, from May 3, according to a market source.

The facilities include a $400 million five-year multi-currency revolver (NA/NA/BB+), a $3.12 billion seven-year covenant-light first-lien term loan B (NA/NA/BB+), a €1 billion seven-year covenant-light first-lien term loan B (NA/NA/BB+), an $850 million eight-year covenant-light second-lien term loan (NA/NA/BB-) and a €280 million eight-year covenant-light second-lien term loan (NA/NA/BB-).

Talk on the revolver is Libor plus 350 bps to 375 bps with a 0% Libor floor, talk on the U.S. term loan B is Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, talk on the euro term loan B is Euribor plus 400 bps to 425 bps with a 0% floor and a discount of 99 to 99.5, talk on the U.S. second-lien loan is Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 98.5, and talk on the euro second-lien loan is Euribor plus 725 bps to 750 bps with a 1% floor and a discount of 98.5.

The term loan B’s have 101 soft call protection for six months, and the second-lien term loans have hard call protection of 102 in year one and 101 in year two.

Misys buying DH

Proceeds from Misys’ credit facilities will be used to help fund the acquisition of DH Corp. for C$25.50 per share in cash, including the assumption of all debt obligations including the issued convertible debentures, for a total enterprise value of about C$4.8 billion, and to refinance existing debt.

Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading the deal, with Morgan Stanley left lead on the U.S. term loan B, Citi left lead on the euro term loan B and Barclays left lead on the second-lien debt.

Other funds for the transaction will come from preferred equity and equity.

Closing is expected before the end of the third quarter, subject to court approval, the approval of DH’s shareholders and other customary conditions.

Misys, a Vista Equity Partners portfolio company, is a London-based provider of financial services software. DH is a Toronto-based financial technology provider.

Truck Hero on deck

Truck Hero set a bank meeting for 10:30 a.m. ET on Wednesday to launch $1,025,000,000 in senior secured credit facilities that will be used to help fund its previously announced buyout by CCMP Capital Advisors LLC, according to a market source.

The facilities consist of a $100 million five-year revolver, a $675 million seven-year covenant-light first-lien term loan that includes 101 soft call protection for six months, and a $250 million eight-year covenant-light second-lien term loan that has call protection of 102 in year one and 101 in year two, the source said.

Jefferies Finance LLC, Antares Capital, Golub, Citizens Bank, Natixis and SunTrust Robinson Humphrey Inc. are leading the deal.

Upon closing, which is expected this quarter, subject to customary conditions, TA Associates, the current holders of a majority interest in Truck Hero, and founding chief executive officer Bill Reminder and chief operating officer Kelly Kneifl will remain significant investors in the company.

Truck Hero is an Ann Arbor, Mich.-based provider of truck bed covers and other truck and Jeep accessories.

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