Oversubscribed Tacala prices, allocates; Convergint shifts funds, tightens pricing

By Paul A. Harris

Portland, Ore., Jan. 26 – The term loans of Staples fell briefly on Friday on news reports that chief executive officer Shira Goodman is leaving the company.

The loan paper got as low as 98½ bid, down ¾ of a point, before the Street realized there was nothing in the story likely to impact the company's credit profile, a trader said.

That determination made, the loans regained the lost ground.

Elsewhere the retail cash flows of the dedicated leveraged loan funds were positive in the most recent week, the trader said.

The funds saw $477 of inflows in the week to last Wednesday's close.

The Thursday daily cash flows to the loan funds were also positive at $35 million, the source said.

In the primary market an oversubscribed Tacala Cos. $335 million Libor plus 325 basis points first-lien term loan priced at 99.75 and allocated on Friday.

And Convergint Technologies (Gopher Sub Inc.) moved $45 million of funds into its new first-lien term loan from the second-lien tranche and narrowed pricing on all the term loans.

Tacala's oversubscribed first-lien allocates

The Tacala $335 million Libor plus 325 basis points first-lien term loan priced at 99.75 and allocated on Friday, a trader said.

There was a par ¾ bid in the market from an investor who wanted to be involved, the source said, adding that the deal was five-times oversubscribed, and locating a lender willing to relinquish paper at par ¾ will be extremely difficult.

The deal was talked at 350 bps.

KKR Capital Markets and Wells Fargo Securities LLC are the leads on the deal.

The facility also has a $115 million second-lien term loan talked at Libor plus 750 bps and a price of 99.

Both tranches have 0% Libor floors.

Proceeds will be used to refinance existing debt and fund a dividend.

Convergint shifts funds, tightens pricing

Convergint Technologies (Gopher Sub Inc.) moved $45 million of funds into its new first-lien term loan from the second-lien tranche and narrowed pricing on all the term loans.

The seven-year first-lien term loan (B2/B) is now $620 million in size, increased from $575 million, and priced at Libor plus 300 basis points with an issue price of 99.75 and a 0.75% Libor floor.

Convergint launched the loan at Libor plus 350 bps with a 0.75% Libor floor and a price of 99.5.

Of the total loan, $60 million is delayed-draw and $560 million funded, up from $40 million and $535 million, respectively, at launch.

The second-lien loan is reduced to $186 million from $211 million (Caa2/CCC) while pricing is narrowed to Libor plus 675 bps at 99.5 with a 0.75% Libor floor from Libor plus 750 bps with a 0.75% Libor floor and OID of 99 originally.

Recommitments were due on Friday.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Jefferies LLC, RBC Capital Markets and Bank of America Merrill Lynch are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Ares Management.

Upsized Spectrum allocated

The upsized Spectrum Plastics Group term loans allocated Friday.

The seven-year covenant-light first-lien term loan was expanded to $455 million from $430 million originally, and pricing was lowered to Libor plus 325 basis points from talk of Libor plus 350 bps. The original issue discount was narrowed to 99.875 from talk of 99.5.

The eight-year second-lien term loan was upsized to $175 million from $160 million, and pricing was cut to Libor plus 700 bps from Libor plus 750 bps. The OID was tightened to 99.5 from 99.

No change was made to the size of a $45 million seven-year delayed-draw first-lien term loan.

All the loans continue to have a 1% Libor floor.

Antares Capital, KeyBanc Capital Markets, Bank of Ireland and Citizens are the joint lead arrangers on the deal.

Proceeds will be used to help fund the acquisition of the company by AEA Investors from Kohlberg & Co.

Global University Systems allocates

The Global University Systems term loans allocated.

A €340 million Euribor plus 475 bps seven-year term loan B, 0% Euribor floor, priced at 99.50. Spread talk was 425 bps.

A $100 million Libor plus 475 bps seven-year term loan B, 0% Libor floor, priced at 99.50. Spread talk was 425 bps.

The facility also includes a £150 million Libor plus 450 bps term loan B, 0% Libor floor. The reoffer price was not available at press time. Spread talk was 450 bps.

HSBC is the global coordinator on the deal, and Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs and BMO Capital Markets are bookrunners and mandated lead arrangers.

Proceeds will be used to refinance existing debt, including the Lake Bridge International plc senior secured notes due 2020, and to fund an acquisition.

Zotec talk Libor plus 425 to 450 bps

Zotec Partners launched its $305 million seven-year first-lien term loan (B3) with price talk of Libor plus 425 basis points to 450 bps.

The loan has a 1% Libor floor and is being offered at a price of 99.5.

The facility, launched at a meeting on Friday, also includes a $20 million revolver.

Goldman Sachs and Wells Fargo are the leads with Goldman on the left.

Commitments are due by Feb. 6.

ASG Technologies repricing at low end

ASG Technologies Group, Inc. finalized its repricing of its $299 million first-lien term loan due July 2024 (B2/B) at the low end of talk.

Terms on the loan were set at Libor plus 350 basis points, the tight end of talk for a coupon of Libor plus 350 bps to 375 bps.

There is a step down by 25 bps if senior secured net leverage is less than 2.7 times.

The par issue price and the 1% Libor floor remain unchanged from talk.

Commitments were due by 12 p.m. ET on Friday and allocations were expected later in the day.

The repricing will take the loan down from its current level of Libor plus 475 bps with a step down to Libor plus 450 bps.

Credit Suisse is the lead.

Arclin moves up timing

Arclin moved up timing on a repricing of its $478 million term loan due February 2024 (B2/B+) and $40 million incremental term loan (B2/B+).

Commitments are due at noon ET Monday. The previous deadline was Tuesday.

Talk on the loans is Libor plus 350 basis points to 375 bps.

The repriced term loan is being offered at par while the incremental loan, which has the same maturity, is offered at 99.75.

Both have a 1% Libor floor.

The borrower is New Arclin U.S. Holding Corp.

Credit Suisse is the lead on the deal.

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