Mitel Networks, Gateway Casinos break; Valtris, Altice France, Intermedia update deals

By Sara Rosenberg

New York, July 13 – Mitel Networks Corp.’s credit facilities surfaced in the secondary market on Friday, with the first-and second-lien term loans quoted above their original issue discounts, and Gateway Casinos & Entertainment Ltd. broke as well.

Moving to the primary market, Valtris Specialty Chemicals (Polymer Additives Inc.) relaunched its first-and second-lien term loans with wider price talk, Altice France lifted pricing on its term loan B-13, modified the original issue discount and extended the call protection, and Intermedia set the spread on its term loan at the high side of guidance and the issue price at the tight end of talk.

Furthermore, VetCor Professional Practices LLC released pricing guidance with launch, and CLEAResult and Technimark LLC joined the near-term primary calendar.

Mitel hits secondary

Mitel Networks’ credit facilities began trading on Friday, with the $1.12 billion seven-year first-lien term loan quoted at par 3/8 bid, par 7/8 offered and the $260 million eight-year second-lien term loan quoted at 99 bid, par offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 basis points with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 875 bps with a 0% Libor floor and was issued at a discount of 98. This tranche has hard call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien term loan was upsized from $1.02 billion, pricing firmed at the low end of the Libor plus 450 bps to 475 bps talk and the discount was changed from 99.5. Also, the second-lien term loan was downsized from $360 million, the spread finalized at the high end of the Libor plus 850 bps to 875 bps talk, the discount widened from 99 and the call protection was revised from 102 in year one and 101 in year two.

The company’s $1.48 billion of senior secured credit facilities include a $100 million revolver as well.

Mitel lead banks

Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and TD Securities (USA) LLC are leading Mitel’s credit facilities.

Proceeds will be used with up to $700 million of equity to fund the buyout of the company by Searchlight Capital Partners LP for $11.15 per common share in cash. The all-cash transaction is valued at about $2 billion, including net debt.

Closing is expected during the second half of this year, subject to customary conditions, including receipt of shareholder, regulatory and court approvals.

Mitel is an Ottawa-based provider of communications software solutions.

Gateway frees up

Gateway Casinos’ fungible $105 million add-on term loan B due March 13, 2025 broke too, with levels seen at 99 7/8 bid, par 3/8 offered, a trader remarked.

The add-on term loan B is priced at Libor plus 300 bps with a step-down to Libor plus 275 bps following an initial public offering and a 0% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

On Thursday, the add-on loan was upsized from $80 million and the discount was set at the tight end of the 99 to 99.5 talk.

Morgan Stanley Senior Funding Inc. is leading the deal. BMO Capital Markets is the administrative agent.

The new debt will be used to fund the acquisition of the Ontario Central Gaming Bundle, which consists of two current sites, Georgian Downs and Casino Rama, and one future site, Wasaga Beach/Collingwood, to fund general corporate purposes and to pay related fees and expenses.

Closing is expected during the week of July 16.

Gateway Casinos is a Burnaby, B.C.-based owner of gaming properties.

Valtris updated

Over in the primary market, Valtris Specialty Chemicals relaunched in the morning its $300 million seven-year covenant-light first-lien term loan (B3/B) at revised talk of Libor plus 450 bps to 475 bps with a 0% Libor floor and an original issue discount of 99, and its $105 million eight-year covenant-light second-lien term loan (Caa2/CCC+) at revised talk of Libor plus 850 bps to 875 bps with a 0% Libor floor and a discount of 98, according to a market source.

The first-lien term loan still has 101 soft call protection for six months, and the second-lien term loan still has call protection of 102 in year one and 101 in year two.

When the deal first came to market with a bank meeting on June 14, the first-lien term loan was talked at Libor plus 400 bps with a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan was talked at Libor plus 800 bps with a 0% Libor floor and a discount of 99.

In addition, updated June numbers were posted with the relaunch and those numbers showed higher EBITDA and leverage of 5.1 times, down from 5.4 times initially, the source continued.

Valtris funding acquisition

Valtris will use the new term loans to finance the purchase of certain assets from Ineos, subject to regulatory approvals, and to refinance existing debt.

Commitments are due at 5 p.m. ET on July 24, the source added.

Deutsche Bank Securities Inc. and RBC Capital Markets are leading on the $405 million in term loans.

Valtris, an H.I.G. Capital portfolio company, is an Independence, Ohio-based manufacturer of specialty chemicals producing a diverse set of polymer modifiers, lubricants and stabilizers primarily used as additives in the production of plastics.

Altice reworked

Altice France raised pricing on its $2 billion eight-year term loan B-13 to Libor plus 400 bps from Libor plus 375 bps, changed the original issue discount to 97.5 from 99, extended the 101 soft call protection to one year from six months and eliminated the 12-month MFN sunset, a market source remarked.

The term loan still has a 0% Libor floor.

Commitments were due at 1:30 p.m. ET on Friday, the source added.

J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., Credit Agricole, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., ING Capital Markets, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used to refinance about half of the company’s existing first-lien notes due 2022.

In connection with the new term loan B-13, pricing on the company’s existing term loan B-12 will be lifted to Libor plus 368.75 bps from Libor plus 300 bps as a result of existing MFN protection in the B-12 tranche.

Altice is a cable and telecommunications company.

Intermedia firms terms

Intermedia set pricing on its $260 million seven-year term loan B at Libor plus 600 bps, the high end of the Libor plus 575 bps to 600 bps talk, and finalized the original issue discount at 99, the tight end of the 98 to 99 talk, a market source said.

As before, the term loan B has a 1% Libor floor and 101 soft call protection for one year.

The company’s $285 million of credit facilities (B3/B) also include a $25 million five-year revolver.

TD Securities (USA) LLC is leading the deal that will be used to refinance existing first- and second-lien term loans.

Intermedia, a Madison Dearborn Partners portfolio company, is a Mountain View, Calif.-based provider of Unified Communications as a Service and business cloud applications software.

VetCor sets guidance

Also on the new deal front, VetCor Professional Practices held its lender call on Friday and launched its $450 million seven-year first-lien term loan (B2/B) at talk of Libor plus 300 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The first-lien term loan has 101 soft call protection for six months.

The company’s $830 million of senior secured credit facilities also include a $50 million five-year revolver (B2/B), a $95 million pre-placed delayed-draw first-lien term loan (B2/B), a $195 million eight-year pre-placed second-lien term loan (Caa2/CCC+) and a $40 million pre-placed delayed-draw second-lien term loan (Caa2/CCC+).

The second-lien term loan has hard call protection of 102 in year one and 101 in year two, and the delayed-draw term loans have a 24-month commitment period.

VetCor being acquired

Proceeds from VetCor’s credit facilities will be used to fund its buyout by Oak Hill Capital Partners.

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

Jefferies LLC and Golub Capital are leading the deal.

As part of the transaction, the company will receive a significant new investment from existing shareholders Harvest Partners LP, Cressey & Co. LP and management.

VetCor is a Hingham, Mass.-based owner and operator of veterinary hospitals.

CLEAResult on deck

CLEAResult set a bank meeting for 10 a.m. ET in New York on Tuesday to launch $660 million of credit facilities, a market source said.

The facilities consist of an $85 million revolver, a $425 million first-lien term loan and a $150 million second-lien term loan, the source added.

Goldman Sachs Bank USA, UBS Investment Bank, Credit Suisse Securities (USA) LLC and KeyBanc Capital Markets are leading the deal that will be used to help fund the buyout of the company by TPG Growth and Rise Fund from General Atlantic. Goldman is the left lead on the first-lien loan and UBS is the left lead on the second-lien loan.

Closing on the buyout is expected later this year, subject to customary conditions, including regulatory approval.

CLEAResult is an Austin, Texas-based provider of energy efficiency solutions for utility companies.

Technimark readies deal

Technimark scheduled a bank meeting in New York for Thursday to launch $325 million of credit facilities, according to a market source.

The facilities consist of a $50 million five-year revolver and a $275 million seven-year covenant-light term loan, the source said.

Antares Capital and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing debt.

Technimark, a PPC Partners portfolio company, is an Asheboro, N.C.-based manufacturer of high-value injection-molded components.

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