Sedgwick reduces pricing; Cornerstone accelerates deadline; Xplornet readies deal

By Sara Rosenberg

New York, May 20 – In the primary market on Wednesday, Sedgwick Claims Management Services Inc. lowered the spread on its term loan and changed the call protection, and Cornerstone OnDemand Inc. moved up the commitment deadline for its first-lien term loan B.

And, in more happenings, Xplornet Communications Inc. joined this week’s primary loan calendar.

Sedgwick flexes

Sedgwick Claims Management Services trimmed pricing on its $300 million term loan (B2/B) to Libor plus 425 basis points from Libor plus 475 bps, according to a market source.

In addition, the call protection was modified to non-callable for one year, then at par, from non-callable for one year, then a 101 soft call for six months, the source said.

As before, the term loan has a 1% Libor floor and an original issue discount of 96.

Recommitments were due at 3:30 p.m. ET on Wednesday, the source said.

BofA Securities, Inc. is leading the deal that will be used to increase liquidity.

Sedgwick is a Memphis, Tenn.-based provider of technology-enabled risk, benefits and integrated business solutions.

Cornerstone tweaks timing

Cornerstone OnDemand accelerated the commitment deadline for its $1,004,700,000 covenant-lite first-lien term loan B due April 22, 2027 to 10 a.m. ET on Friday from noon ET on May 28, a market source remarked.

Talk on the term loan B is Libor plus 425 bps with a 0% Libor floor, an original issue discount of 95 to 96 and 101 soft call protection for one year.

The company’s $1,154,700,000 of senior secured credit facilities (B1/B) also include a $150 million five-year revolver.

Morgan Stanley Senior Funding Inc., BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Jefferies LLC and BMO Capital Markets Corp. are leading the deal.

Proceeds from the credit facilities, which closed on April 22, were used to help fund the acquisition of Saba Software from Vector Capital for about $1.295 billion, consisting of $1.262 billion in cash and 1,110,352 shares of common stock.

Cornerstone is a Santa Monica, Calif.-based people development company. Saba is a Dublin, Calif.-based provider of learning, performance and recruiting product solutions.

Xplornet on deck

Xplornet set a lender call for 11:30 a.m. ET on Thursday to launch a C$1.275 billion U.S. dollar equivalent seven-year covenant-lite first-lien term loan (B3/B-) that includes 101 soft call protection for one year, according to a market source.

Commitments are due at 5 p.m. ET on May 28, the source said.

The company is also getting a C$150 million revolver.

Credit Suisse Securities (USA) LLC, Barclays, BMO Capital Markets and Natixis are leading the deal, which will be used to help fund the acquisition of the company by Stonepeak Infrastructure Partners. Current chairman of the board Steve Weed, and his fund WaveDivision Capital, will remain material investors in the business.

Closing on the acquisition is subject to regulatory approval.

Xplornet is a Woodstock, New Brunswick-based broadband service provider in Canada.

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