Ascend Learning frees up; Ocwen falls again; Advanced Computer, Alliant, Insight reveal talk

By Sara Rosenberg

New York, Jan. 14 – Ascend Learning tightened the original issue discount on its add-on first-lien term loan and then hit the secondary market on Wednesday, and Ocwen Financial Corp.’s term loan continued to retreat on mortgage license concerns.

In more happenings, Advanced Computer Software Group, Alliant Holdings and Insight Global (IG Investments Holdings LLC) disclosed talk with launch, and SIG Combibloc Group AG came out with timing and structure on its credit facility.

Ascend tweaks OID, breaks

Ascend Learning changed the original issue discount on its $40 million add-on first-lien term loan (B2) due July 31, 2019 to 99 from 98½, according to a market source.

The add-on loan is priced at Libor plus 500 basis points with a 1% Libor floor, which matches existing first-lien term loan pricing.

With final terms in place, the add-on broke for trading on Wednesday and levels were seen at 99½ bid, par offered, a trader added.

Bank of America Merrill Lynch, GE Capital Markets and Barclays are leading the deal that will be used with cash on hand to fund the acquisition of a U.S.-based medical education management services provider.

Burlington, Mass., and Leawood, Kan.-based Ascend Learning is a provider of technology-based learning services focused on student training and testing results in health care and other vocational fields.

Ocwen down some more

Ocwen Financial’s term loan dropped to 92 bid, 93 offered from 93¼ bid, 94¼ offered as investors continued to react to news that California is looking to suspend the company’s mortgage license for a year, according to a trader. On Monday, the loan was quoted at 95¾ bid, 97¼ offered.

On Wednesday, Moody’s Investors Service downgraded Ocwen’s corporate family rating to B3 from B2, senior secured credit facility rating to B3 from B2 and senior unsecured debt rating to Caa1 from B3, citing the potential loss of its license to service loans in California as the reason.

Moody’s said that the California Department of Business Oversight is considering suspending Ocwen’s California license for up to one year and has accused Ocwen of failing to provide documents that show compliance with California’s Homeowners Bill of Rights.

Ocwen is an Atlanta-based servicer and originator of mortgage loans.

Advanced Computer guidance

Back in the primary, Advanced Computer Software Group held its bank meeting on Wednesday, and with the event, talk on its senior secured credit facility was announced, according to a market source.

The $50 million five-year revolver is talked at Libor plus 475 bps to 500 bps with no Libor floor, while the £220.5 million U.S. dollar-equivalent seven-year first-lien term loan B is talked at Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The £100 million seven-year first-lien term loan B is talked at Libor plus 550 bps with no Libor floor, and the £128 million U.S. dollar-equivalent eight-year second-lien term loan is talked at Libor plus 875 bps to 900 bps with a 1% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Jan. 28.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal, with Morgan Stanley left lead on the term loan B and Goldman Sachs the left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the U.K.-based provider of software and IT services by Vista Funds for 140 pence per share, or about £725 million.

Alliant launches

Alliant Holdings launched during the session its $360 million add-on first-lien term loan with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Jan. 23, the source said.

With the add-on, pricing on the existing first-lien term loan will be increased to Libor plus 400 bps with a 1% Libor floor from Libor plus 325 bps with a 1% Libor floor as the debt is expected to be fungible, the source added.

Macquarie Capital (USA) Inc. and KKR Capital Markets LLC are leading the deal for the Newport Beach, Calif.-based specialty insurance brokerage firm.

Proceeds from the add-on will be used to fund acquisitions.

Insight Global discloses talk

Insight Global released talk of Libor plus 475 bps with a 1% Libor floor and an original issue discount of 99 on its $210 million first-lien tack-on covenant-light term loan (B1/B) due October 2021 that launched with a morning call, a market source said.

Also, the company launched the extension of its existing term loan with talk of Libor plus 475 bps with a 1% Libor floor, versus current pricing of Libor plus 425 bps with a 1% Libor floor, the source remarked.

Existing lenders are offered a 5 bps amendment fee and a 20 bps extension fee.

All of the first-lien term loan debt will get 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC is leading the deal for which commitments are due on Jan. 21.

Proceeds from the tack-on will be used to fund a distribution to the sponsor and minority shareholders.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

SIG Combibloc details emerge

SIG Combibloc nailed down timing on the launch of its credit facility, setting a bank meeting in New York for 11 a.m. ET on Tuesday and a bank meeting in London for Jan. 21, according to a market source. The deal was previously labelled as next week’s business with specific dates to be determined.

Also, it surfaced that the credit facility is sized at €2,265,000,000 equivalent, split between a €300 million six-year multicurrency revolver and a €1,965,000,000 U.S. dollar and euro seven-year term loan, the source said.

Barclays, Bank of America Merrill Lynch, Goldman Sachs, Nomura Securities Co. Ltd., RBC Capital Markets, Credit Agricole, Mizuho, RBS Securities Inc., UniCredit and Rabobank are leading the deal that will be used with equity to fund the buyout of the company by Onex Corp. for up to €3.75 billion, of which €3,575,000,000 will be paid at the closing and up to €175 million will be payable based on financial performance in 2015 and 2016.

Net senior secured leverage is 4.6 times and net total leverage is 6.3 times, the source added.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

SIG Combibloc is a Switzerland-based supplier of carton packaging and filling machines for beverages and food.

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