Aristocrat, Milk Specialties, On Assignment, Infiltrator, Datapipe, Safway, Engility break

By Sara Rosenberg

New York, Aug. 4 – Deals from Aristocrat Leisure Ltd., Milk Specialties Global, On Assignment Inc. and Infiltrator Water Technologies LLC made their way into the secondary market on Thursday, and Datapipe Inc.’s incremental loans broke as well following a slight change in tranche sizes.

Also, Safway Group Holding LLC increased the size of its term loan B and extended the call protection, and Engility Corp. upsized its term loan B-2, firmed pricing at the low end of talk and tightened the issue price, and reduced the spread on its term loan B-1, and then both deals freed up for trading too.

Furthermore, ION Trading Finance Ltd. established its add-on term loan as all euro denominated, lowered the spread and revised the original issue discount, and Oasis Outsourcing Holdings Inc. accelerated the commitment deadline on its incremental term loan.

Additionally, WideOpenWest Finance LLC, NEW Asurion Corp. and Headwaters Inc. came out with price talk on their loan transactions, and Medical Depot Inc. emerged with new deal plans.

Aristocrat starts trading

Aristocrat Leisure’s $1.07 billion first-lien term loan due October 2021 broke for trading, with levels seen at 100 1/8 bid, 100½ offered, according to a trader.

Pricing on the loan is Libor plus 275 basis points with a 0.75% Libor floor, and it was issued at par. The tranche has 101 soft call protection for six months.

On Wednesday, pricing on the loan was reduced from Libor plus 300 bps.

UBS Investment Bank and Goldman Sachs Bank USA are leading the deal that will be used to reprice the company’s existing first-lien term loan down from Libor plus 375 bps with a 1% Libor floor.

Aristocrat Leisure is a Sydney, Australia-based provider of gaming services.

Milk Specialties tops OID

Milk Specialties’ credit facility freed up too, with the $475 million seven-year covenant-light first-lien term loan quoted at 99 7/8 bid, 100 3/8 offered on the break and then it moved up to par bid, 100½ offered, a source remarked.

The term loan is priced at Libor plus 500 bps, after flexing on Wednesday from Libor plus 575 bps. The debt includes a 1% Libor floor and 101 soft call protection for six months and was sold at an original issue discount of 99.

The company’s $525 million credit facility (B2/B+) also includes a $50 million revolver.

Credit Suisse Securities (USA) LLC, RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by American Securities LLC from Kainos Capital.

Milk Specialties is an Eden Prairie, Minn.-based human and animal nutrition company.

On Assignment frees up

On Assignment’s roughly $700 million term loan B began trading too, with levels quoted at par bid, 100½ offered, a trader said.

Pricing on the loan is Libor plus 275 bps with a 0.75% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B from Libor plus 300 bps with a 0.75% Libor floor.

On Assignment is a Calabasas, Calif.-based provider of diversified professional staffing solutions.

Infiltrator Water breaks

Another deal to make its way into the secondary market was Infiltrator Water Technologies’ $242.5 million first-lien term loan due May 27, 2022, with levels quoted at par bid, 100½ offered, a trader remarked.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor, and it was issued at par. The loan has 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice the company’s existing first-lien term loan.

Infiltrator Water is an Old Saybrook, Conn.-based provider of engineered plastic chambers, synthetic aggregate leach fields, tanks and accessories for the onsite wastewater and stormwater industries.

Datapipe hits secondary

Datapipe’s incremental term loans also began trading, with the $95 million incremental first-lien term loan (B1/B) quoted at 99½ bid, 100¼ offered and the $20 million incremental second-lien term loan (Caa2/CCC+) quoted at 98½ bid, 99½ offered, according to a market source.

The incremental first-lien term loan is priced at Libor plus 475 bps with a 1% Libor floor, and was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

Pricing on the incremental second-lien term loan is Libor plus 800 bps with a 1% Libor floor, and it was issued at a discount of 98.5. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien loan was upsized from $90 million and the second-lien loan was downsized from $25 million.

The company’s $120 million in incremental bank debt also includes a $5 million revolver (B1/B).

Jefferies Finance LLC is leading the deal that will be used to fund an acquisition.

Datapipe is a Jersey City, N.J.-based managed hosting and cloud services provider.

Safway tweaked, trades

In more happenings, Safway lifted its senior secured seven-year covenant-light term loan B to $785 million from $775 million, pushed out the 101 soft call protection to one year from six months and eliminated the MFN sunset, according to a market source.

Pricing on the term loan B was unchanged at Libor plus 475 bps with a 1% Libor floor and an original issue discount of 99.

Commitments were due at 1 p.m. ET on Thursday and then the debt freed up for trading late in the session at par bid, 100½ offered, a trader added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Closing is expected during the week of Aug. 15.

Safway is a Waukesha, Wis.-based provider of access, scaffolding, insulation, fireproofing, surface preparation and coatings solutions.

Engility revised

Engility raised its seven-year term loan B-2 to $680 from $600 million, finalized pricing at Libor plus 475 bps, the low end of the Libor plus 475 bps to 500 bps talk, and moved the original issue discount to 99.5 from 99, while keeping the 1% Libor floor intact, a market source remarked.

Also, pricing on the company’s $200 million four-year term loan B-1 was cut to Libor plus 425 bps from talk of Libor plus 450 bps to 475 bps, the source continued. This tranche still has no floor and an original issue discount of 99.5.

As before, both term loans have 101 soft call protection for six months, amortization on the term loan B-1 is 10% per annum and amortization on the term loan B-2 is 1% per annum.

Commitments were due at 2 p.m. ET on Thursday.

Engility begins trading

With final terms in place, Engility’s $880 million of senior secured term loans broke for trading, with the term loan B-1 and the term loan B-2 both quoted at par bid, 100½ offered, a trader added.

Morgan Stanley Senior Funding Inc., Barclays, SunTrust Robinson Humphrey Inc., Regions Bank, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and KKR Capital Markets are leading the deal.

Proceeds will be used with $300 million of senior unsecured notes to refinance existing debt.

The notes offering was downsized from $380 million with the term loan B-2 upsizing.

Closing is expected during the week of Aug. 15.

Engility is a Chantilly, Va.-based provider of integrated services for the U.S. government.

ION Trading reworks loan

ION Trading Finance, a provider of trading, treasury and workflow solutions, firmed its €200 million seven-year add-on term loan as all euro denominated, whereas at launch, the currency of the debt was described as to be determined, and price talk was released on a potential U.S. piece, a market source said.

Additionally, pricing on the add-on term loan was cut to Euribor plus 325 bps from Euribor plus 350 bps, and the original issue discount was changed to 99.75 from talk of 99 to 99.5, the source continued.

As before, the loan has a 1% floor and 101 soft call protection for six months.

Talk on the contemplated U.S. piece had been Libor plus 325 bps with a 1% Libor floor and a discount of 99 to 99.5.

The company’s €240 million senior secured bank deal (B+) also includes a €40 million revolver.

UBS Investment Bank is leading the deal that will be used to repay existing debt and to fund a dividend, and with the transaction, the company is also looking to extend its existing loan maturities by two years.

Recommitments were due by 5 p.m. ET on Thursday, the source added.

Oasis moves deadline

Oasis Outsourcing accelerated the commitment deadline on its fungible $75 million incremental first-lien term loan due Dec. 31, 2021 to noon ET on Tuesday from noon ET on Aug. 11, according to a market source.

Pricing on the incremental term loan is Libor plus 475 bps with a 1% Libor floor, and it is talked with an original issue discount of 99.5.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund the acquisition of a Tennessee-based Professional Employer Organization with about 600 clients representing around 14,500 worksite employees for about $33 million, and to opportunistically pay down the outstanding $60 million second-lien term loan.

With the transaction, the company is seeking an amendment for which lenders are being offered a 12.5-bps amendment fee.

Amendment signatures are due at noon ET on Tuesday, also revised from noon ET on Aug. 11.

Oasis Outsourcing, a Stone Point Capital owned company, is a West Palm Beach, Fla.-based provider of comprehensive and cost-effective HR outsourcing services to small- and medium-sized businesses.

WideOpenWest holds call

Also in the primary market, WideOpenWest surfaced early in the morning with plans to hold a lender call at 10 a.m. ET to launch a $2,065,000,000 seven-year term loan B (B), and, once the call took place, talk on the loan was announced at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on Aug. 11, the source said.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance an existing term loan B, partially redeem the company’s 13 3/8% senior subordinated notes due 2019 and fund the acquisition of NuLink.

Denver-based WideOpenWest and Newnan, Ga.-based NuLink are providers of data, video and telephone services.

NEW Asurion guidance

NEW Asurion Corp. launched with its morning call its $550 million five-year HoldCo unsecured PIK contingent covenant-light term loan with talk of Libor plus 950 bps plus 75 bps for any PIK amount, a 1% Libor floor and an original issue discount of 98 to 98.5, a market source said.

The loan is non-callable for one year, then at 102 in year two and 101 in year three.

Commitments are due on Aug. 11, the source added.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the debt that will be used to fund an equity tender offer and to pay transaction related fees and expenses.

NEW Asurion is a Nashville-based provider of consumer product protection programs.

Headwaters releases talk

Headwaters disclosed talk of Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $350 million covenant-light add-on term loan B (B1/BB-) due March 2022 that launched with a morning bank meeting, a market source remarked.

Commitments are due at noon ET on Aug. 11, the source added.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading the debt that will be used to fund the acquisition of Krestmark Industries LP for $240 million and to refinance 7¼% senior notes due 2019.

Headwaters is a South Jordan, Utah-based building products manufacturer. Krestmark is a Dallas-based manufacturer of vinyl windows.

Medical Depot on deck

Medical Depot set a lender call for Tuesday to launch a $40 million incremental term loan due September 2019, according to a market source.

Pricing on the incremental term loan is Libor plus 425 basis points with a 1% Libor floor, in line with pricing on the company’s existing $220 million term loan.

Capital One is leading the deal that will be used to fund a tack on acquisition and for general corporate needs.

Medical Depot (doing business as Drive DeVilbiss Healthcare) is a Port Washington, N.Y.-based maker of medical equipment, including mobility, respiratory, bath and personal care, sleep, accessibility and rehabilitation products.

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