US Foods, Seminole Tribe, DynCorp, CEC Entertainment, Aptean, KORE Wireless free to trade

By Sara Rosenberg

New York, Aug. 15 – US Foods Holding Corp. modified the original issue discount on its incremental term loan B and Seminole Tribe of Florida firmed the issue price on its incremental term loan B at the tight end of guidance, and then both of these deals broke for trading on Thursday.

Also, DynCorp International sweetened the Libor floor, call protection and amortization on its term loan B before freeing up, and deals from CEC Entertainment Inc., Aptean and KORE Wireless Group Inc. surfaced in the secondary market as well.

In more trading happenings, Revlon Inc.’s term loan B was better on buzz that the company hired a bank to help it explore strategic options.

Returning to the primary market, Ancestry.com Operations Inc. lifted the spread on its term loan B and set the original issue discount at the wide side of talk, and Q Holding Co. eliminated the repricing proposal from its term loan B but is still planning on extending the debt’s maturity.

US Foods updated, breaks

US Foods moved the original issue discount on its $1.5 billion seven-year incremental senior secured term loan B (Ba3) to 99.5 from 99, according to a market source.

As before, the term loan is priced at Libor plus 200 basis points with a 0% Libor floor, and has 101 soft call protection for six months.

Books closed at 11 a.m. ET on Thursday and the loan began trading later in the session, with levels quoted at par bid, par ¼ offered, a trader added.

J.P. Morgan Securities LLC and BofA Securities Inc. are leading the deal that will be used with existing liquidity resources to fund the $1.8 billion acquisition of SGA’s Food Group of Companies.

Closing is subject to regulatory approval and other customary conditions.

US Foods is a Rosemont, Ill.-based food company and foodservice distributor. SGA’s Food Group of Companies is a Scottsdale, Ariz.-based provider of foodservice solutions.

Seminole firms, trades

Seminole Tribe of Florida finalized the original issue discount on its fungible $300 million incremental term loan B (Baa2/BBB) due July 2024 at 99.75, the tight end of the 99.5 to 99.75 talk, a market source said.

The incremental term loan is priced at Libor plus 175 bps with a 0% Libor floor.

The incremental term loan freed to trade during the session and levels were seen at par bid, par 3/8 offered, the source added.

BofA Securities Inc., Fifth Third, U.S. Bank, Capital One, PNC Capital Markets and Citizens Bank are leading the deal that will be used to refinance existing debt, fund project capital expenditures and finance future investments in projects.

Seminole Tribe of Florida is a Hollywood, Fla.-based Indian tribe that owns and operates gaming and resort facilities.

DynCorp tweaked, frees up

DynCorp increased the Libor floor on its $360 million six-year term loan B to 1% from 0%, extended the 101 soft call protection to two years from one year and increased amortization to 5% per annum from 2.5% per annum, according to a market source.

Pricing on the term loan is Libor plus 600 bps with an original issue discount of 97.

Earlier in syndication, the spread on the term loan was raised from talk in the range of Libor plus 500 bps to 525 bps and the discount was changed from 98.5.

The company’s $430 million of senior secured credit facilities (Ba3/BB) also include a $70 million five-year revolver.

On Thursday, the term loan B broke for trading and was quoted at 97 bid, 98 offered, a trader added.

BofA Securities Inc., Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and Barclays are leading the deal that will be used with cash on hand to refinance the company’s capital structure, including its $390.5 million of 11 7/8% senior secured second-lien notes due 2020.

DynCorp is a McLean, Va.-based provider of aviation, logistics, training, intelligence and operational solutions.

CEC tops OID

CEC Entertainment’s $760 million seven-year covenant-lite first-lien term loan (B2/B-) began trading too, with levels quoted at 96¼ bid, 97¼ offered, a market source remarked.

Pricing on the term loan is Libor plus 650 bps with a 1% Libor floor, and it was sold at an original issue discount of 96. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from talk in the range of Libor plus 550 bps to 575 bps, the floor was revised from 0%, the discount widened from 99 and the call protection was extended from six months.

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

CEC is an Irving, Texas-based operator of family dining and entertainment stores through Chuck E. Cheese and Peter Piper Pizza brands.

Aptean hits secondary

Aptean’s fungible $75 million incremental first-lien term loan (B2/B-) also broke, with levels quoted at 99½ bid, par offered, according to a market source.

Pricing on the incremental first-lien term loan is Libor plus 425 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 99.5. The loan has 101 soft call protection for six months.

The company is also getting a fungible $37 million incremental second-lien term loan (CCC+) priced at Libor plus 850 bps with a 0% Libor floor, which matches existing second-lien pricing. The incremental was sold at a discount of 99.

Golub Capital is leading the deal that will be used to fund the acquisition of Sanderson, a U.K.-based provider of digital technology solutions and managed services.

Aptean, a TA Associates and Vista Equity Partners portfolio company, is an Alpharetta, Ga.-based provider of mission-critical, industry-specific enterprise software solutions.

KORE starts trading

KORE Wireless Group’s fungible $35 million incremental first-lien term loan due December 2024 freed up as well, with levels quoted at 99 bid, 99½ offered, a market source remarked.

Pricing on the incremental term loan is Libor plus 550 bps with a 0% Libor floor, in line with existing first-lien term loan pricing, and the new debt was sold at an original issue discount of 99.

UBS Investment Bank is leading the deal that 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.

Revlon gains

Also in trading, Revlon’s term loan B was higher and wider with chatter that the company is exploring strategic options with help from Goldman Sachs, according to a market source.

The term loan B was quoted at 75 bid, 80 offered, up from 74 bid, 76 offered on Wednesday, the source said.

Revlon is a New York-based beauty company.

Ancestry flexes

Back in the primary market, Ancestry lifted pricing on its $1.15 billion seven-year covenant-lite term loan B (B2/B) to Libor plus 425 bps from Libor plus 400 bps and set the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source said.

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

Also, the company will now increase pricing on its existing term loan due 2023 to Libor plus 375 bps.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., KKR Capital Markets, Barclays, BofA Securities Inc., RBC Capital Markets and UBS Investment Bank are leading the deal. JPMorgan is the administrative agent.

In connection with this transaction, the company is seeking an amendment to and partial repayment of its existing $1.75 billion term loan B and an amendment and extension of its existing $100 million revolver.

Aside from repaying a portion of the existing term loan B, the new term loan will be used with cash on the balance sheet to fund a dividend to shareholders, and pay fees and expenses.

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

Ancestry is a Lehi, Utah-based online family history resource.

Q Holding revised

Q Holding rescinded the repricing request from its $275 million term loan B, however, the extension of the maturity to December 2023 from December 2021 is still being worked on, according to a market source.

The extended term loan B is expected to be priced at Libor plus 500 bps with a 1% Libor floor, in line with current term loan B pricing, the source said.

Previously, the extended term loan had been talked at Libor plus 450 bps to 475 bps with a 1% Libor floor and an original issue discount of 99.5 for new money lenders.

Consenting lenders are being offered a 50 bps fee.

RBC Capital Markets and ING Capital are leading the deal.

Q Holding, a portfolio company of 3i Group, is a Solon, Ohio-based provider of highly engineered products and elastomeric solutions for the global life sciences and electrical management markets.

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