AssuredPartners, Medpace, Flexera Software, Lineage break; Truven dips on add-on plans

By Sara Rosenberg

New York, March 31 - AssuredPartners Inc., Medpace Inc., Flexera Software LLC and Lineage Logistics LLC all made their way into the secondary market on Monday, and Truven Health Analytics Inc.'s term loan was softer with add-on news.

Over in the primary, Millennium Laboratories, Minerals Technologies Inc., Orbitz Worldwide Inc. and McDermott International Inc. released talk with launch, The Men's Wearhouse set timing on its credit facility and DSI Renal joined this week's calendar.

AssuredPartners hits secondary

AssuredPartners' term loans freed up for trading on Monday, with the $420 million seven-year first-lien term loan (B2/B) quoted at 99 7/8 bid, par 5/8 offered, according to a trader.

The first-lien term loan is priced at Libor plus 350 basis points with a 1% Libor floor and was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

The company is also getting a $135 million eight-year second-lien term loan (Caa2/CCC+) priced at Libor plus 675 bps, after flexing recently from Libor plus 700 bps. This tranche has a 1% Libor floor and call protection of 102 in year one and 101 in year two, and was issued at 99.

Bank of America Merrill Lynch (left on first-lien), J.P. Morgan Securities LLC (left on second-lien), RBC Capital Markets, BMO Capital Markets and Madison Capital are leading the $555 million deal that will refinance existing debt and add cash to the balance sheet.

AssuredPartners is a Lake Mary, Fla.-based investor in property and casualty and employee benefits brokerage firms.

Medpace starts trading

Medpace's credit facility also broke, with the $530 million seven-year covenant-light term loan seen at par bid, 101 offered and then it moved to par ½ bid, 101 offered, a trader remarked.

Pricing on the term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps when leverage is 4.75 times. There is a 1% Libor floor and 101 soft call protection for six months and the debt was sold at an original issue discount of 991/2.

During syndication, the step-down was added and the discount was modified from 99.

The company's $590 million credit facility (B2/B+) also includes a $60 million revolver.

Jefferies Finance LLC, Barclays, Credit Suisse Securities (USA) LLC, UBS Securities LLC and Wells Fargo Securities LLC are leading the deal that will help fund the company's buyout by Cinven from CCMP Capital.

Medpace is a Cincinnati-based full-service clinical research organization providing phase 1-4 core development services for drug, biologic and device programs.

Flexera frees up

Flexera's credit facility began trading as well, with the $345 million six-year first-lien term loan (B1/B) quoted at par bid, 101 offered and the $125 million seven-year second-lien term loan (Caa1/CCC+) quoted at par bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 350 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for six months.

The second-lien loan is priced at Libor plus 700 bps with a 1% Libor floor and was sold at 991/2. This debt has call protection of 102 in year one and 101 in year two.

Recently, the spread on the first-lien term loan was cut from Libor plus 375 bps, and the second-lien loan saw pricing revised from Libor plus 725 bps and its issue price tighten from 99.

Flexera getting revolver

In addition to the first- and second-lien term loans, Flexera's $495 million credit facility includes a $25 million five-year revolver (B1/B).

Jefferies Finance LLC, BMO Capital Markets Corp. and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and fund a dividend.

Flexera is a Schaumburg, Ill.-based provider of strategic application usage management services for application producers and their enterprise customers.

Lineage tops OID

Another deal to emerge in the secondary was Lineage Logistics, with is $600 million seven-year first-lien covenant-light term loan quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor and it was sold at an original issue discount of 991/2. There is 101 soft call protection for six months.

The company's $700 million credit facility also includes a $100 million ABL revolver.

Credit Suisse Securities (USA) LLC, Goldman Sachs Banks USA and MCS Capital are leading the deal that will be used to fund the acquisition of Millard Refrigerated Services, an Omaha, Neb.-based third-party warehousing and logistics company, and to refinance existing debt.

Lineage Logistics is a Colton, Calif.-based cold storage warehousing and logistics company.

Truven loan retreats

Also in trading, Truven Health Analytics' term loan dropped to 99 bid, 99¾ offered from 99½ bid, par ¼ offered as news surfaced that the company would be launching a $100 million add-on term loan with a call on Tuesday, according to a trader.

Pricing on the add-on will match the existing term loan at Libor plus 325 bps with a 1.25% Libor floor and a step-down to Libor plus 300 bps when consolidated total leverage is less than 5.5 times. The add-on is being offered at an original issue discount of 98.76.

J.P. Morgan Securities LLC is leading the deal that will be used to fund acquisitions.

Truven is a provider of health care data and data analytics.

Millennium sets talk

Moving to the primary, Millennium Laboratories held its bank meeting on Monday, and prior to the event's start, talk on the $1,765,000,000 seven-year term loan B came out at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, a market source said.

The company's $1,815,000,000 credit facility (B1/B+) also includes a $50 million five-year revolver.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BMO Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

Millennium Laboratories is a San Diego-based specialty diagnostics laboratory.

Minerals Technologies launch

Minerals Technologies launched during the session its $1.56 billion seven-year covenant-light term loan B with talk of Libor plus 250 bps to 275 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

By comparison, filings with the Securities and Exchange Commission, had the term loan expected in the range of Libor plus 225 bps to 275 bps based on corporate credit ratings with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the $1.76 billion senior secured deal (BB) that also includes a $200 million five-year revolver.

Minerals buying Amcol

Proceeds from Minerals Technologies' credit facility along with cash on hand will be used to fund the purchase of Amcol International Corp. for $45.75 per share in cash, for a total value of about $1.7 billion.

Closing is expected in the first half of this year, subject to customary conditions.

Minerals Technologies is a New York-based resource- and technology-based growth company that develops, produces and markets specialty mineral, mineral-based and synthetic mineral products and related systems and services. Amcol is a Hoffman Estates, Ill.-based producer and marketer of specialty minerals and materials used for industrial, environmental and consumer-related applications.

Orbitz guidance emerges

Orbitz disclosed talk of Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99½ on its $450 million seven-year first-lien term loan a few hours before its afternoon bank meeting kicked off, according to a market source.

As previously reported, the term loan has 101 soft call protection for six months.

Commitments are due on April 10 for the company's $525 million credit facility, which also includes a $75 million revolver.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing term loan B and term loan C borrowings.

Orbitz is a Chicago-based online travel agency.

McDermott releases pricing

McDermott held a bank meeting in the afternoon, launching a $300 million five-year term loan B with talk of Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 99 and call protection of non-callable for one year, then a soft call of 102 in year two and 101 in year three, sources remarked.

The company's $700 million in new bank debt also provides for a $400 million three-year first-out letter-of-credit facility.

Goldman Sachs Bank USA is leading the deal that will be used with second-lien senior secured notes to refinance revolver debt and for other general corporate purposes, including the funding of working capital requirements and capital expenditures.

McDermott is a Houston-based engineering, procurement, construction and installation company for offshore oil and gas projects.

Men's Wearhouse timing

Men's Wearhouse scheduled a bank meeting for Tuesday to launch its previously announced $1.6 billion senior secured credit facility that consists of a $500 million five-year asset-based revolver and a $1.1 billion seven-year covenant-light term loan B (Ba2/B+), according to a market source.

Recent filings with the Securities and Exchange Commission have outlined pricing on the revolver at Libor plus 175 bps with a 37.5 bps commitment fee, and the term loan B as expected at Libor plus 375 bps with a 1% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used to help fund the acquisition of Jos. A. Bank Clothiers for $65.00 per share in cash, or $1.8 billion.

Regulatory filings have said that the company would also issue $600 million of senior unsecured notes for the acquisition.

Men's Wearhouse bridge loan

As a back-up for the notes, Men's Wearhouse has received a commitment for a $600 million senior unsecured bridge loan that is priced at Libor plus 675 bps with a 1% Libor floor. The spread will increase by 50 bps every three months until a specified cap is reached.

Closing on the acquisition is expected by the third quarter, subject to the satisfaction of customary conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and the tender of a majority of Jos. A Bank shares.

Men's Wearhouse is a Houston-based specialty retailer of men's apparel. Jos. A. Bank is a Hampstead, Md.-based designer, manufacturer and retailer of men's apparel, footwear and accessories.

DSI Renal readies launch

DSI Renal set a bank meeting in New York on Thursday to launch a $560 million credit facility, according to a market source.

The facility consists of a $40 million five-year revolver, a $360 million seven-year first-lien term loan and a $160 million 71/2-year second-lien term loan, the source said.

RBC Capital Markets, Barclays and GE Capital Markets are leading the deal that will be used to refinance existing debt.

DSI Renal is a Nashville, Tenn.-based provider of dialysis services.

MultiPlan closes

In other news, the buyout of MultiPlan Inc. by Starr Investment Holdings and Partners Group from Silver Lake and BC Partners has been completed, a news release said.

For the transaction, MultiPlan got a new $2,275,000,000 credit facility (B1/B) consisting of a $75 million five-year revolver and a $2.2 billion seven-year term loan B.

Pricing on the B loan is Libor plus 300 bps with a step-down to Libor plus 275 bps when first-lien leverage is 4.25 times. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was sold at 993/4.

During syndication, pricing on the term B firmed at the low end of the Libor plus 300 bps to 325 bps talk, the step-down was added, the discount was changed from 991/2, the call protection was extended from six months, and the MFN provision was tweaked to be applicable to all incremental term loans from only to EBITDA Prong.

Senior secured leverage is 5 times and total leverage is 7.3 times.

Barclays and J.P. Morgan Securities LLC led the deal for the New York-based provider of health care cost management services.

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