Activision Blizzard, PRA, Quikrete, Miller Heiman, Nine Entertainment plan September launches

By Sara Rosenberg

New York, Aug. 30 - A list of new deals for launch has steadily been building up for the early September primary loan market, including Activision Blizzard Inc., PRA Holdings Inc., Quikrete, Miller Heiman and Nine Entertainment Pty. Ltd.

Activision readies meeting

Activision Blizzard will hold a bank meeting on Wednesday to launch a $2.5 billion senior secured credit facility, a market source recently said.

The credit facility consists of a $250 million five-year revolver and a $2.25 billion seven-year covenant-light term loan B.

Based on filings with the Securities and Exchange Commission, revolver pricing is expected at Libor plus 250 basis points with a 37.5 bps unused fee and term B pricing is expected at Libor plus 275 bps with a 0.75% Libor floor. The B loan is anticipated to have 101 soft call protection for six months.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to fund Activision's acquisition from Vivendi of around 429 million company shares and certain tax attributes in exchange for roughly $5.83 billion in cash, or $13.60 per share.

Simultaneously, ASAC II LP, an investment vehicle led by Activision chief executive officer Bobby Kotick and co-chairman Brian Kelly, will purchase about 172 million company shares from Vivendi for around $2.34 billion in cash, or $13.60 per share, and following completion, Activision will be an independent company with the majority of its shares owned by the public.

Activision bridge loans

With the commitment for the new credit facility, Activision got a commitment for a $1 billion senior secured bridge loan priced at Libor plus 412.5 bps with a 0.75% Libor floor and a $1.5 billion senior unsecured bridge loan priced at Libor plus 550 bps with a 0.75% Libor floor for an eight-year tranche and Libor plus 612.5 bps with a 0.75% Libor floor for a 10-year tranche.

All of the bridge loans have a spread increase of 25 bps per annum if the borrower has not received ratings of at least Ba2/BB, and every three months, pricing on the bridge loans will step up by 50 bps until it hits a cap.

The plan is to issue $1 billion of high-yield first-lien secured notes and $1.5 billion of high-yield unsecured notes in place of getting the bridge loans.

Other funds for Activision's stock buyback will come from around $1.2 billion of cash on hand.

Closing is expected by the end of September, subject to customary conditions.

Activision Blizzard is a Santa Monica Calif.-based interactive entertainment publishing company.

PRA coming soon

PRA Holdings is scheduled to hold a bank meeting at 12:30 p.m. ET in New York on Wednesday to launch a $950 million credit facility that includes a $125 million five-year revolver and an $825 million seven-year first-lien term loan, according to a market source.

UBS Securities LLC, Jefferies Finance LLC, Credit Suisse Securities (USA) LLC, KKR Capital Markets and Citigroup Global Markets Inc. are leading the deal.

Proceeds will be used to help fund KKR's buyout of PRA International from Genstar Capital LLC and ReSearch Pharmaceutical Services Inc. from Warburg Pincus and the merger of the two companies.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

PRA is a Raleigh, N.C.-based contract research organization that provides outsourced clinical development services to the biotechnology and pharmaceutical industries. ReSearch Pharmaceutical is a Fort Washington, Pa.-based provider of outsourced clinical development services.

Quikrete on deck

Quikrete will be holding a bank meeting on Sept. 10 to launch a $1.62 billion credit facility, according to a market source.

The facility consists of a $200 million ABL revolver, a $1.23 billion first-lien term loan B and a $190 million second-lien term loan.

Wells Fargo Securities LLC is leading the deal that will be used to fund the acquisition of Custom Building Products Inc. from Kelso & Co.

Quikrete is an Atlanta-based manufacturer of packaged concrete and related products for the building and home improvement markets. Custom Building Products is a Seal Beach, Calif.-based producer of mortar, sealant, grout, backerboard, tools and associated products for the installation and care of ceramic tile and stone.

Miller Heiman prepares deal

Miller Heiman recently set a bank meeting for Wednesday morning to launch a $273 million credit facility.

The facility consists of a $40 million five-year revolver and a $233 million six-year term loan B talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a source previously told Prospect News.

GE Capital Markets and BMO Capital Markets are leading the transaction that will be used with $65 million of subordinated PIK notes to fund the acquisition of IPI.

Miller Heiman is a Denver-based provider of corporate sales training.

Nine plans loan

Nine Entertainment is set to host a conference call at 10:30 a.m. ET on Wednesday to launch a U.S. equivalent A$200 million pari passu first-lien term loan B due Feb. 5, 2020 that has a 0.75% Libor floor.

UBS Securities is the left lead bookrunner on the deal.

Proceeds will be used to fund the acquisition of WIN Perth.

Nine Entertainment is an Australian diversified media and entertainment group.

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