Loparex, Select Medical, Midcontinent Communications, Ineos, Access CIG free to trade

By Sara Rosenberg

New York, July 29 – Loparex International Holding BV downsized its term loans, finalized pricing on its first-lien tranche at the high end of guidance and lifted pricing on its second-lien loan before breaking for trading on Monday.

Also, Select Medical Corp. upsized its add-on term loan B, firmed pricing at the low side of talk, modified the issue price and freed to trade, and deals from Midcontinent Communications, Ineos Enterprises and Access CIG LLC hit the secondary market as well.

In more happenings, ArisGlobal (Athos Merger Sub LLC) raised the spread on its first-lien term loan and extended the call protection, and Knowlton Development Corp. increased the size of its incremental first-lien term loan and tightened the original issue discount.

Furthermore, WestJet Airlines Ltd. and KORE Wireless Group Inc. released price talk with launch, and DigiCert Inc., World Triathlon Corp., Sedgwick Claims Management Services Inc., United Site Services and Savage Enterprises LLC joined this week’s primary calendar.

Loparex reworked, breaks

Loparex trimmed its seven-year first-lien term loan to $370 million from $390 million and set pricing at Libor plus 450 basis points, the high end of the Libor plus 425 bps to 450 bps talk, according to a market source.

Also, the eight-year second-lien term loan was scaled back to $140 million from $160 million, pricing was flexed up to Libor plus 875 bps from Libor plus 850 bps and the tranche was changed to privately placed from being syndicated, the source said.

As before, both term loans have a 0% Libor floor, and the first-lien term loan has an original issue discount of 99 and 101 soft call protection for six months.

The company’s now $560 million of senior secured credit facilities also include a $50 million five-year revolver.

On Monday, the first-lien term loan emerged in the secondary market and was quoted at 99½ bid, par offered, the source added.

Jefferies LLC, Barclays and Nomura are leading the deal that will help fund the buyout of Loparex, a manufacturer of silicone release liners, by Pamplona Capital Management from Intermediate Capital Group.

Due to the reduction in term loan funds, the equity component for the transaction was increased.

Select Medical revised, trades

Select Medical increased its fungible add-on term loan B due March 6, 2025 to $500 million from $400 million, set the spread at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, and changed the original issue discount to 99.5 from 99, a market source remarked.

The add-on term loan still has a 0% Libor floor and 101 soft call protection for six months.

In the afternoon, the add-on term loan B freed to trade and was quoted at 99 7/8 bid, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used with $550 million of bonds, upsized from $500 million, to repay revolver borrowings, to redeem in full $710 million of 6.375% senior notes due 2021 and for general corporate purposes.

The company is also extending the maturity date of its revolving credit facility by two years to March 6, 2024 and amending its credit agreement to increase the maximum permitted total net leverage ratio.

Select Medical is a Mechanicsburg, Pa.-based health care company.

Midcontinent hits secondary

Midcontinent Communications’ $650 million seven-year covenant-lite first-lien term loan B broke for trading as well, with levels quoted at par 3/8 bid, par 5/8 offered, according to a trader.

Pricing on the term loan is Libor plus 225 bps with a step-down to Libor plus 200 bps when leverage gets below 3.5x and a 0% Libor floor. The loan was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the term loan was downsized from $685 million as the company upsized its senior note offering to $350 million from $300 million, the step-down was added and the discount was tightened from 99.5.

SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, CoBank, TD Securities (USA) LLC and MUFG are leading the deal that will be used to repay existing bank debt and notes.

Midcontinent Communications is a Sioux Falls, S.D.-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

Ineos tops OID

Ineos, a London-based producer of intermediate chemicals, saw its $450 million seven-year term loan B freed up too, with levels quoted at 99¼ bid, par ¼ offered, a trader said.

Pricing on the U.S. term loan B is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

The company is also getting a €420 million equivalent five-year term loan A, and a €580 million seven-year term loan B priced at Euribor plus 400 bps with a 0% floor and issued at a discount of 99. The euro term loan B has 101 soft call protection for six months.

During syndication, the U.S. term loan B was downsized from €525 million equivalent, the euro term loan B was upsized from €525 million and the term loan A was upsized from €350 million equivalent. Also, pricing on the U.S. and euro term loan B’s was increased from talk in the range of Libor/Euribor plus 325 bps to 350 bps and the discount firmed at the wide end of the 99 to 99.5 talk. And, the floor on the U.S. term loan was revised from 0%, and changes were made to MFN, restricted payments, acquisition/acquired debt, excess cash flow sweep, ticking fee holiday construct, and cap on cost savings EBITDA add-backs.

Barclays, BNP Paribas and NatWest Markets are leading the deal that will be used to fund acquisitions, refinance existing debt and pay transaction expenses.

Access CIG frees up

Access CIG’s fungible $150 million incremental first-lien term loan (B2/B) due February 2025 also began trading, with levels quoted at 99 3/8 bid, 99 7/8 offered, according to a market source.

Pricing on the add-on term loan is Libor plus 375 bps with a 0% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 99.25. The debt has 101 soft call protection for six months.

The company is also getting a fungible $50 million incremental first-lien delayed-draw term loan (B2/B) that has been privately placed.

Jefferies LLC, Golub, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used to fund 13 immediately actionable acquisitions under letters of intent.

Access CIG is a Livermore, Calif.-based provider of physical and digital records and information management services.

ArisGlobal tweaks deal

Back in the primary market, ArisGlobal lifted pricing on its $240 million seven-year covenant-lite first-lien term loan to Libor plus 500 bps from talk in the range of Libor plus 450 bps to 475 bps and extended the 101 soft call protection to one year from six months, a market source said.

The term loan still has a 0% Libor floor and an original issue discount of 99.

The company’s $270 million of credit facilities (B2/B-) also include a $30 million revolver.

Final commitments were due at 5 p.m. ET on Monday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by Nordic Capital.

ArisGlobal is a Coral Gables, Fla.-based developer of cloud-based software for pharmaceutical and R&D companies.

Knowlton sets changes

Knowlton Development raised its fungible incremental first-lien term loan due Dec. 21, 2025 to $105 million from $85 million and adjusted the original issue discount to 99.75 from 99.5, a market source remarked.

The incremental term loan is priced at Libor plus 425 bps with a 0% Libor floor.

Commitments remained due at 5 p.m. ET on Monday, the source added.

Jefferies LLC is the left lead on the deal that will be used to fund an acquisition and the funds from the upsizing will be used for general corporate purposes.

Knowlton Development is a Quebec-based custom formulator and solution services partner to beauty, personal care and home/industrial care companies.

WestJet discloses guidance

WestJet Airlines held its bank meeting on Monday and announced talk on its $1,955,000,000 seven-year first-lien term loan at Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $2,305,000,000 of credit facilities (Ba2/BB-/BB+) also include a $350 million revolver.

Commitments are due at noon ET on Aug. 8, the source said.

Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, Citigroup Global Markets Inc., UBS Investment Bank, BMO Capital Markets, Bank of Nova Scotia and TD Securities (USA) LLC are leading the debt that will be used with equity to fund the buyout of the company by Onex Corp. for C$31.00 per share. The transaction is valued at about C$5 billion, including assumed debt.

Closing is expected in the latter part of 2019 or early 2020, subject to court and shareholder approval, and regulatory approvals.

WestJet is a Calgary, Alta.-based airline company.

KORE floats talk

KORE Wireless Group came out with original issue discount talk of 99 on its fungible $35 million incremental first-lien term loan that launched with a lender call during the session, a market source remarked.

The incremental term loan is priced at Libor plus 550 bps with a 0% Libor floor, in line with the existing first-lien term loan.

Commitments are due on Aug. 8, the source added.

UBS Investment Bank is leading the deal, which will be used to fund an acquisition.

KORE Wireless is an Alpharetta, Ga.-based provider of integrated software platform to enterprises to deploy, manage and optimize their Internet-of-Things environments.

DigiCert readies deal

DigiCert set a bank meeting for 10 a.m. ET in New York on Tuesday to launch $1,675,000,000 of first-lien credit facilities, according to a market source.

The first-lien facilities consist of a $125 million revolver, and a $1.55 billion seven-year covenant-lite first-lien term loan talked with a 0% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Aug. 13.

The company is also getting a $550 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Macquarie Capital (USA) Inc., UBS Investment Bank, Barclays, Deutsche Bank Securities Inc., Golub and Antares Capital are leading the deal that will help fund the buyout of the company by Clearlake Capital Group LP and TA Associates, an existing investor. Clearlake and TA will be equal partners in the company.

Closing is expected in the second half of this year, subject to customary regulatory approvals and conditions.

DigiCert is a Lehi, Utah-based provider of digital certificates, certificate management solutions and public-key infrastructure solutions.

World Triathlon on deck

World Triathlon scheduled a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch $290 million of credit facilities, a market source said.

The facilities consist of a $25 million revolver, and a $265 million seven-year covenant-lite first-lien term loan talked with 101 soft call protection for six months, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance an existing revolver and term loan.

World Triathlon is an owner, operator and licenser of participatory events under brands including Ironman and Rock ‘n’ Roll Marathon Series.

Sedgwick coming soon

Sedgwick Claims Management Services will hold a lender call at 10 a.m. ET on Tuesday to launch a $1.1 billion seven-year covenant-lite incremental term loan B, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

BofA Securities Inc., Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc., Barclays, Goldman Sachs Bank USA, Wells Fargo Securities LLC, BNP Paribas Securities Corp., TCG, Citizens Bank, Credit Agricole, Fifth Third Bank, ING, KKR Capital Markets and MUFG are leading the deal that will be used to fund the acquisition of York Risk Services Group.

Closing is subject to customary conditions and regulatory approvals.

Sedgwick is a Memphis, Tenn.-based provider of technology-enabled risk, benefits and integrated business solutions. York is a Jersey City, N.J.-based provider of claims administration, managed care, specialized loss adjusting, pool administration and loss control solutions.

United Site plans call

United Site Services set a lender call for 10 a.m. ET on Tuesday to launch a fungible $150 million add-on covenant-lite first-lien term loan due August 2024 talked with an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Pricing on the add-on term loan is Libor plus 375 bps with a 1% Libor floor.

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

BofA Securities Inc. is leading the deal, which will be used to fund acquisitions and to add liquidity.

United Site Services is a Westborough, Mass.-based provider of portable restrooms, temporary fence and related site services.

Savage joins calendar

Savage Enterprises emerged with plans to hold a lender call at 10 a.m. ET on Tuesday to launch a repricing of its existing $960,250,000 first-lien term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal.

Savage is a Salt Lake City-based supply chain provider.

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