Presidio, Albaugh, McAfee, BMC, Mediware, Jeld-Wen, WorldStrides, Sears, SiteOne, McGraw break

By Sara Rosenberg

New York, Dec. 8 – Presidio Inc. firmed the original issue discount on its term loan B at the tight side of guidance, Albaugh LLC upsized its term loan B and McAfee LLC revised the issue price on its U.S. incremental term loan, and then these deals broke for trading on Friday.

Other deals to free up during the session included BMC Software, Mediware Information Systems Inc., Jeld-Wen Inc., WorldStrides, Sears Holdings Corp., SiteOne Landscape Supply Inc. and McGraw-Hill Global Education Holdings LLC.

In more happenings, Research Now/Survey Sampling set the spread on its first-lien term loan and the issue price on its second-lien term loan at the wide end of revised talk, Direct ChassisLink Inc. moved up the commitment deadline on its term loan, and Switch Ltd. surfaced with new deal plans.

Presidio updated, trades

Presidio set the original issue discount on its $741.6 million senior secured covenant-light term loan B due Feb. 2, 2024 at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

As before, pricing on the loan is Libor plus 275 basis points with a 1% Libor floor and the debt has 101 soft call protection for six months.

With final terms in place, the loan hit the secondary market and levels were quoted at par ¼ bid, par ¾ offered, another source said.

Citigroup Global Markets Inc. is leading the deal that will be used to amend and extend by two years an existing term loan B due 2022 and finance the redemption of the company’s $125 million of outstanding 10¼% senior notes due 2023.

With the transaction, the first-lien incurrence test covenant will be revised to 3.75 times first-lien net leverage from 3.25 times and a technical amendment will be done to permit ordinary course non-recourse lease transactions consistent with past practices.

Closing is expected on Jan. 5.

Presidio is a New York-based IT infrastructure solutions provider.

Albaugh upsizes, frees up

Albaugh lifted its seven-year covenant-light term loan B to $350 million from $325 million, and left pricing at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.75, a market source said. The debt has 101 soft call protection for six months.

On Thursday afternoon, pricing on the term loan was set at the low end of the Libor plus 350 bps to 375 bps talk and the discount was revised from 99.5.

The company’s now $450 million of credit facilities also include a $100 million five-year revolver.

Commitments were due at 1 p.m. ET on Friday and by late day the term loan broke for trading at par bid, par ½ offered, a trader added.

HSBC Securities (USA) Inc. is leading the deal that will be used to refinance existing debt. The incremental funds from the term loan B will be used for general corporate purposes, including repaying debt, which comprise of drawn local working capital lines, the source added.

Albaugh is an Ankeny, Iowa-based producer of generic crop protection products.

McAfee tweaked, breaks

McAfee finalized the original issue discount on its $324 million incremental covenant-light first-lien term loan B at 99.625, the middle of revised talk of 99.5 to 99.75 and tight of initial talk in the range of 99 to 99.5, a market source said.

Pricing on the U.S. term loan is Libor plus 450 bps with a 1% Libor floor and the debt has 101 soft call protection for six months

By late afternoon, the U.S. term loan began trading, with levels quoted at 99¾ bid, par offered, a trader added.

The company is also getting a €150 million incremental covenant-light first-lien term loan B priced at Euribor plus 425 bps with a 0% floor. This tranche also has 101 soft call protection through September 2018.

Bank of America Merrill Lynch, Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used to fund the acquisition of Skyhigh Networks, a cloud access security broker.

McAfee is a Santa Clara, Calif.-based cybersecurity company.

BMC frees up

BMC Software’s $150 million tack-on term loan due September 2022 and repriced $2,332,000,000 term loan due September 2022 broke, with levels quoted at par 1/8 bid, par ½ offered, a market source remarked.

Pricing on the term loan debt is Libor plus 325 bps with a 0% Libor floor. The tack-on was issued at a discount of 99.75 and the repricing was issued at par. The debt has 101 soft call protection for six months.

The company is also getting a €240 million tack-on term loan due September 2022 and a repriced €684 million term loan due September 2022 priced at Euribor plus 375 bps with a 0% floor. This debt was issued at par and includes 101 soft call protection for six months.

During syndication, pricing on the U.S. term loans firmed at the low end of the Libor plus 325 bps to 350 bps talk, the discount on the U.S. tack-on was tightened from 99.5, and the issue price on all of the euro debt was set at the tight end of the 99.75 to par talk.

Credit Suisse is the left lead on the deal (B1/B+). Other leads include Goldman Sachs, HSBC and Mizuho.

The tack-on loans will be used to refinance existing debt, the U.S. term loan repricing will take the existing loan down from Libor plus 375 bps with a 1% Libor floor and the euro loan repricing will take the existing loan down from Euribor plus 450 bps with a 0% floor.

BMC is a Houston-based provider of IT digital enterprise management solutions.

Mediware hits secondary

Mediware Information Systems’ $443 million term loan B due 2024 also began trading, with levels quoted at par ¼ bid, par ¾ offered, a trader said.

Pricing on the term 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.

During syndication, pricing on the loan finalized at the high end of the Libor plus 325 bps to 350 bps talk and the issue price for new money was tightened from 99.75.

Bank of America Merrill Lynch is leading the deal that will be used to refinance existing debt.

Mediware is a Lenexa, Kan.-based provider of software for health care and human services providers.

Jeld-Wen above par

Jeld-Wen’s $440 million covenant-light term loan B (Ba2/BB+) due December 2024 freed to trade as well and levels were seen at par 1/8 bid, par 5/8 offered, according to a trader.

The term loan is priced at Libor plus 200 bps with a 25 bps step-down at Ba2/BB corporate ratings and a 0% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

On Thursday, the spread on the loan firmed at the low end of the Libor plus 200 bps to 225 bps talk and the issue price was changed from talk in the range of 99.5 to 99.75.

Current corporate ratings are Ba3/BB-.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, Barclays and J.P. Morgan Securities LLC are leading the deal that will be used with $800 million in notes and cash on hand to refinance an existing term loan so as to extend the maturity date and reduce the interest rates.

The company is also amending its $300 million ABL revolver to extend the maturity to December 2022 from October 2019 and reduce pricing.

Wells Fargo is the administrative agent for the revolver.

Jeld-Wen is a Charlotte, N.C.-based door and window manufacturer.

WorldStrides begins trading

WorldStrides’ $460 million in seven-year senior secured term loans (B1/B) broke too, with levels quoted at par ½ bid, 101 offered, a market source remarked.

Pricing on the term debt is Libor plus 400 bps with a step-down to Libor plus 375 bps subject to first-lien net leverage 0.5 times inside day one closing first-lien net leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

The debt is split between a $425 million term loan B, and a $35 million delayed-draw term loan B that has a ticking fee of half the spread from days 31 to 75 and the full spread thereafter.

On Thursday, pricing on the term debt was cut from talk in the range of Libor plus 425 bps to 450 bps, the step-down was added, the discount was changed from 99.5, the 50 bps MFN was set for life with no carve-outs, the inside maturity clause on the incremental was eliminated, and the leverage based asset sale step-downs were removed.

Goldman Sachs Bank USA and BNP Paribas Securities Corp. are leading the deal that will be used to help fund a strategic investment from Eurazeo and Primavera Capital Group, which is expected to close by year end.

WorldStrides is a Charlottesville, Va.-based educational student travel and study abroad organization.

Sears tops OID

Another deal to hit the secondary market was Sears’ $400 million term loan due January 2020, with levels quoted at 98½ bid, 99 offered, according to a trader.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 98.

Bank of America Merrill Lynch is leading the deal that will be used to extend an existing term loan from June 2018.

Sears is a Hoffman Estates, Ill.-based retailer.

SiteOne breaks

SiteOne’s fungible $52 million add-on term loan B (B2/BB) due April 29, 2022 and repriced $298 million covenant-light term loan (B2/BB) due April 29, 2022 emerged in the secondary market, with levels seen at par 3/8 bid, par ¾ offered, a trader remarked.

Pricing on the term loan debt is Libor plus 275 bps with a 1% Libor floor. The add-on was sold at an original issue discount of 99.875 and the repricing was issued at par. The debt has 101 soft call protection for six months.

UBS Investment Bank, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, HSBC Securities (USA) Inc., ING, J.P. Morgan Securities LLC, Natixis and SMBC are leading the deal.

The add-on will be used to repay ABL revolver borrowings, and the repricing will take the existing term loan down from Libor plus 350 bps with a step-down to Libor plus 325 bps at 2.75 times leverage and a 1% Libor floor.

Closing is expected this month.

SiteOne is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

McGraw frees to trade

McGraw-Hill asked for recommitments to its fungible $150 million incremental first-lien term loan due May 4, 2022 by noon ET on Friday after pulling its $250 million senior PIK toggle notes from market, a market source said.

Shortly thereafter, the term loan broke for trading and levels were seen at 99¾ bid, par 1/8 offered, a trader added.

Pricing on the incremental loan matches existing term loan pricing at Libor plus 400 bps with a 1% Libor floor, and the new debt was sold at an original issue discount of 99.75, after tightening on Thursday from 99.5.

Jefferies LLC is leading the loan that will be used to partially call the company’s existing HoldCo notes.

Under the original financing plans that included the notes issuance, the company was going to repay the HoldCo notes in full.

McGraw-Hill is a New York-based provider of education materials.

Research Now firms

Back in the primary market, Research Now/Survey Sampling finalized pricing on its $700 million seven-year first-lien term loan (B1/B+) at Libor plus 550 bps, the high end of revised talk of Libor plus 525 bps to 550 bps and up from initial talk in the range of Libor plus 450 bps to 475 bps, according to a market source.

The first-lien term loan still has a 1% Libor floor, an original issue discount of 95 and 101 hard call protection for one year.

Additionally, the original issue discount on the company’s $250 million eight-year second-lien term loan (Caa1/B-) was set at 93, the wide end of revised talk in the range of 93 to 94 and wide of initial talk of 98.5, the source said. This tranche is still priced at Libor plus 950 bps with a 1% Libor floor and is non-callable for one year, then at 102 in year two and 101 in year three.

Previously in syndication, the discount on the first-lien term loan was changed from 99 and the call protection was adjusted from a 101 soft call for six months, and pricing on the second-lien term loan was increased from talk in the range of Libor plus 850 bps to 875 bps and the call protection was revised from 102 in year one and 101 in year two. Also, throughout the syndication process revisions were made to, among other things, the incremental allowance, the excess cash flow sweep, the available amount and various definitions.

Research Now revolver

Along with the term loans, Research Now’s $1,045,000,000 senior secured credit facilities provide for a $95 million revolver (B1/B+).

The credit facilities allocated on Friday.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Jefferies LLC and Citizens Bank are leading the deal that will be used to help fund the merger of Research Now and Survey Sampling International and fund a $180 million dividend, reduced earlier from $191 million. The combined company will be privately held, with Court Square Capital Partners and HGGC, the current majority owners of Research Now and Survey Sampling, respectively, remaining as majority owners of the combined business.

Closing is expected by the end of the year, after the standard regulatory review process.

Research Now and Survey Sampling are providers of digital data solutions and technology for consumer and business-to-business survey research.

Direct ChassisLink accelerated

Direct ChassisLink revised the commitment deadline on its $325 million senior secured covenant-light term loan due June 15, 2023 to 5 p.m. ET on Monday from 5 p.m. ET on Wednesday, a market source remarked.

Talk on the term loan is Libor plus 650 bps with a 0% Libor floor, an original issue discount of 99 and hard call protection of 102 in year one and 101 in year two, reducing to 101 in connection with a change of control.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of TRAC Intermodal’s fleet of about 72,000 53-foot domestic chassis and related customer and hosting contracts with Class I railroads and intermodal shipping companies.

Closing is expected in early-to-mid January, subject to customary conditions.

Direct ChassisLink is a Charlotte, N.C.-based provider of chassis leasing.

Switch on deck

Switch set a lender call for 1:30 p.m. ET on Monday to launch a $598.5 million covenant-light term loan B due June 2024, according to a market source.

Commitments are due at noon ET on Dec. 15, the source said.

BMO Capital Markets and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with a step-down to Libor plus 250 bps and a 0% Libor floor.

Switch is a Las Vegas-based developer and operator of data centers.

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