MHS Holdings, RSA Security free to trade; thyssenkrupp softens; Angus Chemical updated

By Sara Rosenberg

New York, July 1 – MHS Holdings Inc. (Deliver Buyer Inc.) increased the size of its incremental first-lien term loan B before freeing up for trading late in the day on Wednesday, and the debt was quoted above its original issue discount.

Also in trading, RSA Security (Redstone Buyer LLC) saw its first-lien term loan make its way into the secondary market, and thyssenkrupp Elevator’s U.S. term loan weakened slightly from its previous day’s break levels.

In more happenings, Angus Chemical Co. raised the total size of its term loan and finalized the U.S. and euro tranche sizes.

MHS upsized, breaks

MHS Holdings lifted its non-fungible incremental first-lien term loan B (B3/B-) due May 1, 2024 to $145 million from $125 million, a market source said.

As before, the term loan is priced at Libor plus 625 basis points with a 1% Libor floor and an original issue discount of 97, and has 101 hard call protection for one year.

Late Wednesday, the incremental broke for trading and was quoted at 98½ bid, a trader added.

RBC Capital Markets is leading the deal that will be used to repay revolver borrowings.

Closing is expected during the week of July 6, the source added.

MHS, a Thomas H. Lee Partners LP portfolio company, is a Louisville, Ky.-based provider of e-commerce infrastructure.

RSA hits secondary

RSA Security’s $1.05 billion seven-year covenant-lite first-lien term loan (B1/B/BB+) began trading on Wednesday too, with levels quoted at 98¼ bid, 99 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 500 basis points with a step-down to Libor plus 475 bps at 0.5x inside closing date leverage and a 1% Libor floor. The debt was sold at an original issue discount of 98, and has 101 soft call protection for one year and amortization of 1% per annum.

During syndication, the pricing step-down was added to the first-lien term loan and the discount finalized at the tight end of the 97 to 98 talk.

The company’s $1.425 billion credit facilities also include a $75 million revolver (B1/B/BB+), and a $300 million second-lien term loan (Caa1/B-/B-) that was pre-placed with a Clearlake-led investor group.

Upon launching earlier this month, the first-lien term loan was upsized from $1 billion and the second-lien term loan was downsized from $350 million.

RSA being acquired

Proceeds from RSA’s credit facilities will be used to help fund the buyout of the company by a consortium led by Symphony Technology Group, Ontario Teachers’ Pension Plan Board and AlpInvest Partners from Dell Technologies for $2.075 billion.

UBS Investment Bank, Jefferies LLC, Barclays and Deutsche Bank Securities Inc. provided the debt commitment.

RSA is a provider of digital risk solutions, including threat detection and response, identity and access management, integrated risk management and omnichannel fraud prevention.

thyssenkrupp dips

thyssenkrupp Elevator’s $2.875 billion seven-year first-lien term loan B (B1/B/B+) was quoted by one trader at 98 bid, 98½ offered and by a second trader at 98 bid, 98 1/8 offered, down from 98¼ bid, 98¾ offered when the debt freed to trade late Tuesday.

The company is also getting a €1.015 billion seven-year first-lien term loan B (B1/B/B+).

Pricing on the U.S. and euro term loans is Libor/Euribor plus 425 bps with a 0% floor and the tranches were sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

During syndication, the U.S. term loan was upsized from a revised amount of $2.815 billion and an initial size of roughly €2.05 billion equivalent, the euro term loan was upsized from €1 billion, and the discount firmed at the tight end of the revised 97.5 to 98 talk and tight of initial talk in the range of 96 to 97. Also, a €500 million term loan A was eliminated from the capital structure.

thyssenkrupp leads

Goldman Sachs Bank USA, UBS Investment Bank, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets are leading thyssenkrupp Elevator’s bank debt, with Goldman the left lead on the U.S. loan and UBS the left lead on the euro loan.

Proceeds will be used to help fund the buyout of the company by Advent International, Cinven and RAG-Stiftung.

Other funds for the transaction will come from $1.56 billion of senior secured notes, $445 million of senior notes, €1.1 billion of senior secured notes, €500 million of floating-rate notes and €650 million of senior notes.

Closing is expected by the end of the third quarter, subject to customary closing conditions and regulatory approvals.

thyssenkrupp Elevator is a Germany-based provider of elevator technology.

Angus tweaked

Back in the primary market, Angus Chemical raised its U.S. and euro term loan to about $530 million equivalent from around $500 million equivalent, and set the breakdown as a $251 million U.S. piece and a €248 million euro piece, a market source remarked.

The U.S. and euro term loans are priced at Libor/Euribor plus 425 bps with an original issue discount of 98.5 and include 101 soft call protection for one year. The U.S. term loan has a 1% Libor floor and the euro term loan has a 0% floor.

Previously in syndication, pricing on the term debt was trimmed from Libor/Euribor plus 450 bps and the discount was changed from talk in the range of 97 to 98.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Angus is a Buffalo Grove, Ill.-based manufacturer and marketer of specialty and fine chemicals.

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