Energy Transfer, Sprint, TKC, Acelity, Zekelman, Hyland, Power Products, Cast & Crew break

By Sara Rosenberg

New York, Jan. 31 – A number of deals freed up for trading on Tuesday, including Energy Transfer Equity, Sprint Corp., TKC Holdings Inc., Acelity LP Inc., Zekelman Industries, Hyland Software Inc., Power Products LLC and Cast & Crew Payroll LLC.

Meanwhile, in the primary market, Onvoy LLC increased the size of its first-lien term loan as its second-lien term loan amount was scaled back and tightened the spread and original issue discount on the first-lien tranche.

Also, Innocor Inc. moved some funds between its first-and second-lien term loans and widened the spread and original issue discount on the second-lien tranche, and Victory Capital Operating LLC upsized its add-on term loan and finalized the issue price at the tight end of guidance.

In addition, Blackhawk Mining LLC, ADT Corp., Greenway Health LLC, Berry Plastics Corp., Sesac Holdings, Ineos Group Holdings SA, Freedom Mortgage Corp. and Engility Corp. released price talk with launch, and Windstream Services LLC and Scientific Games Corp. joined this week’s primary calendar.

Energy Transfer tops OID

Energy Transfer Equity’s $2.2 billion seven-year first-lien term loan (Ba2/BB/BB+) made its way into the secondary market on Tuesday, with levels quoted at par bid, par ¼ offered, according to a market source.

The term loan is priced at Libor plus 275 basis points with no Libor floor and was sold at an original issue discount of 99.75. The debt includes 101 soft call protection for six months.

On Monday, pricing on the loan finalized at the high end of the Libor plus 250 bps to 275 bps talk, and the discount was modified from 99.5.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc., DNB, BBVA, TD Securities (USA) LLC, PNC, Natixis and SMBC are leading the deal that will be used to refinance existing term loans.

Energy Transfer is a Dallas-based midstream oil and gas company.

Sprint revised, trades

Sprint changed the issue price on its $4 billion seven-year term loan B to par from most recent talk of a range of 99.5 to 99.75 and initial talk of just 99.5, a market source said.

As before, pricing on the loan is Libor plus 250 bps with a 0.75% Libor floor, and the debt has 101 soft call protection for six months.

Earlier in syndication, the term loan was upsized from $1.5 billion, and pricing was trimmed from talk of Libor plus 300 bps to 325 bps.

With final terms in place, the term loan B freed up for trading, and levels were seen at par 1/8 bid, par ¼ offered, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes.

Sprint is an Overland Park, Kan.-based communications services company.

TKC frees to trade

TKC Holdings’ credit facility began trading, with the $1.1 billion six-year first-lien term loan quoted at par ¼ bid, 101 offered on the break and then it moved to par ½ bid, 101 offered, and the $260 million seven-year second-lien term loan quoted at par bid, 101 offered, a market source remarked.

Pricing on the first-lien term loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor, and it was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $1.05 billion, pricing was trimmed from revised talk of Libor plus 400 bps and initial talk of Libor plus 400 bps to 425 bps, and the discount was tightened from 99. Also, the second-lien term loan was downsized from $300 million, pricing finalized at the low end of the revised talk of Libor plus 750 bps to 775 bps, and down from prior talk of Libor plus 800 bps and initial talk of Libor plus 825 bps to 850 bps, and the discount was tightened from revised talk of 98.5 and initial talk of 98.

TKC getting revolver

In addition to the first-and second-lien term loans, TKC’s $1.41 billion credit facility includes a $50 million revolver.

Jefferies Finance LLC and KKR Capital Markets are leading the deal, with Jefferies the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

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

TKC is a St. Louis-based provider of commissary, food service and related technology products to the corrections industry, and a provider of in-room coffee service to hotels and motels.

Acelity hits secondary

Acelity’s $1,085,000,000 covenant-light term loan broke too, with levels seen at par bid, par 3/8 offered, a source said.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for one year.

The company is also getting a €239 million covenant-light term loan priced at Euribor plus 300 bps with a 1% floor, and issued at a discount of 99.75. This tranche also has 101 soft call protection for one year.

During syndication, the U.S. term loan was downsized from $1,115,000,000 and the spread firmed at the low end of the Libor plus 325 bps to 350 bps talk, the euro term loan was upsized from $225 million euro-equivalent, pricing was cut from talk of Euribor plus 325 bps to 350 bps and the discount was revised from 99.5, and the call protection on both tranches was extended from six months.

Acelity refinancing

Proceeds from Acelity’s term loans will be used with some of the proceeds from the sale of its LifeCell business to Allergan for $2.9 billion in cash to refinance existing term loans due in 2020 and 9 5/8% second-lien notes.

Bank of America Merrill Lynch is the left lead on the loan deal (B1).

Acelity is a San Antonio-based advanced wound care and regenerative medicine company.

Zekelman levels surface

Zekelman Industries’ $100 million incremental term loan B due June 14, 2021 and repriced $821 million term loan B due June 14, 2021 emerged in the secondary market, with levels quoted at par 3/8 bid, par 7/8 offered on the break and then it rose to par 5/8 bid, 101 1/8 offered, a market source remarked.

Pricing on the term loan debt is Libor plus 375 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

On Monday, pricing on the term debt was trimmed from talk of Libor plus 400 bps to 425 bps.

Goldman Sachs Bank USA is leading the deal.

The incremental loan will be used for mergers and acquisitions and general corporate purposes, and the repricing will take the existing term loan down from Libor plus 500 bps with a 1% Libor floor.

Closing is expected in mid-February.

Zekelman Industries, formerly known as JMC Steel, is a Chicago-based manufacturer of industrial steel pipe and tubular products.

Hyland starts trading

Hyland Software’s $155 million incremental first-lien term loan due July 2022 and repricing of its existing $616 million covenant-light first-lien term loan due July 2022 also freed to trade, with levels quoted at par ¼ bid, par 5/8 offered, according to a market source.

Pricing on the term loan debt is Libor plus 325 bps with a 25 bps step-down at 3.5 times first-lien leverage and a 0.75% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

On Monday, pricing on the term debt firmed at the low end of the Libor plus 325 bps to 350 bps talk, and the issue price on the incremental term loan was changed from 99.5.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal.

Proceeds from the incremental loan will be used to repay an existing second-lien term loan, and the repricing will take the existing first-lien term loan down from Libor plus 375 bps with a 1% Libor floor.

Hyland is a Westlake, Ohio-based enterprise content-management software developer.

Power Products frees up

Power Products’ credit facility began trading as well, with the $270 million covenant-light first-lien term loan (B1/B) seen at 99¾ bid, par ¾ offered on the break, and then it moved up to par ½ bid, 101¼ offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5, after tightening on Monday from 99. The debt has 101 soft call protection for six months.

The company’s senior secured credit facility also includes a $30 million revolver (B1/B) and a $92.5 million privately placed second-lien term loan.

RBC Capital Markets is leading the deal that will be used to help fund the buyout of the company by Genstar Capital for $496 million.

First-lien leverage is 4.2 times and total leverage is 5.6 times.

Power Products is a Menomonee Falls, Wis.-based manufacturer and supplier of electrical products for construction and maintenance, recreational marine and specialty vehicles, industrial power, and transportation.

Cast & Crew breaks

Another deal to free up was Cast & Crew’s $366 million first-lien term loan, with levels quoted at par ¼ bid, 101 offered, a trader said.

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

On Friday, the loan was upsized from $346 million.

RBC Capital Markets LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor, and, due to the recent upsizing, to add cash to the balance sheet.

Cast & Crew, a Silver Lake portfolio company, is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry.

Onvoy reworked

Over in the primary market, Onvoy raised its seven-year covenant-light first-lien term loan (B) to $550 million from $500 million, lowered pricing to Libor plus 450 bps from Libor plus 500 bps and moved the original issue discount to 99.5 from 98.5, according to a market source.

As before, the first-lien term loan has a 1% Libor floor and 101 soft call protection for six months.

With the first-lien term loan upsizing, the company’s privately placed second-lien term loan was trimmed to $130 million from $180 million, the source said.

The company’s $715 million credit facility also includes a $35 million revolver (B).

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC and Regions Bank are leading the debt.

Onvoy being acquired

Proceeds from the credit facility and equity will be used to help fund Onvoy’s merger with Inteliquent Inc. that will take place in connection with Inteliquent’s buyout by GTCR LLC.

Inteliquent is being purchased for $23.00 in cash per share of common stock. The value of the transaction is about $800 million.

Closing is expected this quarter, subject to approval from Inteliquent stockholders, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as well as FCC and state regulatory approvals and other customary conditions.

Onvoy is a Plymouth, Minn.-based communications enabler. Inteliquent is a Chicago-based interconnection partner for communications service providers.

Innocor modifies deal

Innocor upsized its seven-year covenant-light first-lien term loan to $450 million from $425 million and extended the 101 soft call protection to one year from six months, while leaving pricing at Libor plus 475 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

As for the eight-year covenant-light second-lien term loan, it was downsized to $100 million from $125 million, pricing was lifted to Libor plus 1,000 basis points from Libor plus 900 bps, and the original issue discount was revised to 96 from 98, the source said. This tranche still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

Furthermore, the 12-month MFN sunset was removed and the 50 bps MFN was applied to all pari passu loans, the incremental unlimited ratio basket was changed to up to 3 times first-lien leverage, 4 times junior lien and 4.5 times unsecured from up to 3.25 times first-lien, 4.25 times junior-lien and 4.5 times unsecured, and the asset-sale step-down was modified.

The changes to the term loan sizes are subject to final ratings of no worse than B2/B corporate, B2/B on the first-lien loan and Caa1/CCC+ on the second-lien loan, the source continued.

Innocor lead banks

Barclays, Bank of America Merrill Lynch, Macquarie Capital (USA) Inc., Mizuho and Wells Fargo Securities LLC are the bookrunners on Innocor’s credit facility, with Barclays left on the first-lien and Bank of America left on the second-lien.

Along with the term loans, the $675 million senior secured credit facility includes a $125 million asset-based revolver.

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

Proceeds will be used to help fund the buyout of the company by Bain Capital Private Equity from Sun Capital Partners Inc., which is expected to close this quarter.

Innocor is a Red Bank, N.J.-based designer and manufacturer of advanced foam products for commercial and retail channels.

Victory updates surface

Victory Capital lifted its add-on term loan to $125 million from $100 million and set the issue price at par, the tight end of the 99.75 to par talk, according to a market source.

Pricing on the add-on term loan is still Libor plus 750 bps with a 1% Libor floor.

Commitments were due at 5 p.m. ET on Tuesday, moved up from Thursday, the source said.

RBC Capital Markets is leading the deal that will be used to fund a dividend.

With this transaction, the company is amending its existing credit facility to allow for the one-time dividend, and lenders were offered a 25 bps amendment fee.

Victory Capital is a Brooklyn, Ohio-based asset management firm.

Blackhawk sets guidance

Also in the primary market, Blackhawk Mining released talk of Libor plus 800 bps to 850 bps with a 1% Libor floor and an original issue discount of 98 on its $660 million five-year first-lien term loan that launched with a bank meeting in the morning, according to a market source.

The term loan has hard call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments are due on Feb. 9, the source said.

Jefferies Finance LLC is leading the deal that will be used to refinance existing ABL-A and ABL-B facilities, legacy Blackhawk debt, a first-lien term loan and a 1.5-lien term loan, to cash collateralize letters of credit and to pay fees and expenses.

Blackhawk Mining is a Lexington, Ky.-based producer of coal, operating nine active coal mining complexes in West Virginia and Kentucky.

ADT floats OID

ADT had its lender call, launching its fungible $800 million covenant-light incremental term loan due May 2, 2022 with original issue discount talk of 99.5, a market source remarked.

The incremental term loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with existing term loan pricing, and has 101 soft call protection for six months, the source added.

Commitments are due at noon ET on Feb. 7.

Barclays, Deutsche Bank Securities Inc., RBC Capital Markets and Citigroup Global Markets Inc. are leading the deal that will be used to fund distributions to the company’s equity holders and pay related fees and expenses.

Apollo is the sponsor.

ADT is a security services company.

Greenway launches

Greenway Health LLC launched on Tuesday its $530 million seven-year covenant-light first-lien term loan at talk of 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, according to a market source.

The company’s $560 million credit facility (B-) also includes a $30 million five-year revolver.

Commitments are due on Feb. 14, the source added.

Jefferies Finance LLC, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

Greenway Health is a Carrollton, Ga.-based provider of clinical, financial, administrative and connectivity information solutions to physician practices.

Berry comes to market

Berry Plastics launched in the morning, without a lender call, $1,965,000,000 in term loans talked at Libor plus 225 bps with no Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

The term loans are split between a $1,151,000,000 term loan K due February 2020 and an $814 million term loan L due January 2021, the source continued.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing $1,351,000,000 term loan D due February 2020 and an $814 million term loan G due January 2021 from Libor plus 250 bps with a 1% Libor floor.

At closing, which is expected late next week, the company plans to repay $200 million of the term loan D.

Cashless roll commitments are due at 5 p.m. ET on Monday, and new money commitments are due at 5 p.m. ET on Feb. 7, the source added.

Berry is an Evansville, Ind.-based provider of plastic consumer packaging and engineered materials.

Sesac details emerge

Sesac released tranching on its $565 million credit facility and price talk on the first-and second-lien term loans with its bank meeting, according to a market source.

The facility consists of a $40 million revolver (B2/B+), a $365 million first-lien term loan (B2/B+) and a $160 million second-lien term loan (Caa2/CCC+).

Talk on the first-lien term loan is Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Feb. 10.

Jefferies Finance LLC, Guggenheim and Blackstone are leading the deal that will be used to help fund the buyout of the company by Blackstone from Rizvi Traverse Management.

Closing is expected by the end of this quarter.

Sesac is a Nashville, Tenn.-based music rights organization.

Ineos releases talk

Ineos disclosed price talk on its new €575 million U.S. dollar-equivalent term loan B due 2024, new €575 million term loan B due 2024, up to $1,489,000,000 term loan due March 31, 2022 and up to €1,934,000,000 term loan due March 31, 2022 with its morning lender call, according to a market source.

The new U.S. 2024 term loan B and the U.S. 2022 term loan are talked at Libor plus 275 bps to 300 bps with no Libor floor, and the new euro 2024 term loan B and euro 2022 term loan are talked at Euribor plus 250 bps to 275 bps with a 0.75% floor, the source said. The 2024 term loans are offered with an original issue discount of 99.75 and the 2022 term loans are offered at par.

Barclays and Bank of America Merrill Lynch are the global coordinators and joint lead arrangers on the deal, and joint bookrunners with Credit Suisse, Goldman Sachs, J.P. Morgan Securities LLC and Lloyds.

Ineos, a Rolle, Switzerland-based chemical company, will use the new term loans to repay existing notes due 2019, and the 2022 term loans will be used to reprice and extend existing U.S. and euro 2020 term loans and reprice existing U.S. and euro 2022 term loans.

Commitments/consents are due at 5 p.m. ET on Feb. 7.

Freedom reveals terms

Freedom Mortgage held its bank meeting, launching its $350 million five-year term loan B (B1/BB-) with talk of Libor plus 600 bps with a 1% Libor floor, an original issue discount of 98 and 101 hard call protection for one year, a market source said.

Commitments are due at 5 p.m. ET on Feb. 14, the source added.

Barclays, J.P. Morgan Securities LLC and Nomura are leading the deal that will be used for general corporate purposes, including potential strategic acquisitions of Mortgage Servicing Rights.

Freedom Mortgage is a Mount Laurel, N.J.-based top tier residential mortgage company engaged in the origination, servicing, selling and securitizing of primarily agency-eligible residential mortgage loans.

Engility launches

Engility held its lender call, and, with the event, released talk on its $195 million term loan B-1 due Aug, 12, 2020 and $608 million term loan B-2 due Aug, 12, 2023 with its lender call on Tuesday, a source remarked.

Talk on the term loan B-1 is Libor plus 300 bps to 325 bps with no Libor floor, and talk on the term loan B-2 is Libor plus 350 bps to 375 bps with a 1% Libor floor, with both tranches having a par issue price and 101 soft call protection for six months, the source continued.

Amortization is 10% per annum on the term loan B-1 and 1% per annum on the term loan B-2.

Morgan Stanley Senior Funding Inc., KKR Capital Markets LLC, Barclays, SunTrust Robinson Humphrey Inc., Regions Capital Markets, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the $803 million in senior secured term loans that will be used to reprice an existing term loan B-1 due 2020 from Libor plus 425 bps with no Libor floor and an existing term loan B-2 due 2023 from Libor plus 475 bps with a 1% Libor floor.

Consents/commitments are due at 5 p.m. ET on Friday, the source added.

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

Windstream readies loan

Windstream Services set a lender call for 10 a.m. ET on Wednesday to launch a $580 million seven-year first-lien term loan talked at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Feb. 7, the source added.

Credit Suisse Securities (USA) LLC is the left lead bank on the deal that will be used to refinance an existing term loan.

Windstream is a Little Rock, Ark.-based provider of advanced communication and broadband, phone and digital TV services.

Scientific Games on deck

Scientific Games plans to hold a lender call at 10 a.m. ET on Wednesday for credit facility lenders, according to a market source.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Fifth Third Bank, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and PNC are leading the transaction.

Scientific Games is a New York-based developer of technology-based products and services and associated content for gaming and lottery markets.

Columbus McKinnon closes

In other news, Columbus McKinnon Corp. closed on its acquisition of Stahl CraneSystems, a Germany-based manufacturer of explosion-protected hoists and crane components, from Konecranes plc, a news release said.

To help fund the acquisition and to refinance existing debt, Columbus McKinnon got a new $545 million credit facility (Ba3/B+) led by J.P. Morgan Securities LLC that is comprised of a $100 million five-year revolver and a $445 million seven-year covenant-light first-lien term loan B.

Pricing on the revolver is Libor plus 250 bps with no Libor floor and a 40 bps undrawn fee, and it was sold at an original issue discount of 99.5. The term loan B is priced at Libor plus 300 bps with a 1% Libor floor, and was issued at a discount of 99.5. Included in the B loan is 101 soft call protection for one year.

During syndication, the revolver was upsized from $75 million, and the term loan saw pricing reduced from talk of Libor plus 325 bps to 350 bps and the discount tightened from 99.

Pro forma net debt to adjusted EBITDA is 3.6 times.

Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of material handling products, technologies and services.

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