Imagine! Print breaks; Valeant partially rebounds; ON Semiconductor changes surface

By Sara Rosenberg

New York, March 16 – Imagine! Print Solutions LLC’s credit facility emerged in the secondary market on Wednesday, with the term loan B quoted above its original issue discount, and Valeant Pharmaceuticals International Inc.’s term loans improved a bit from recent losses.

Meanwhile, in the primary market, ON Semiconductor Corp. raised the size of its term loan B, modified the original issue discount and extended the call protection, and Sensus USA Inc. came out with price talk on its term loan in connection with its bank meeting.

Imagine! frees up

Imagine! Print Solutions’ credit facility began trading on Wednesday, with the $325 million six-year term loan B quoted at 99½ bid, 100¼ offered, according to a trader.

Pricing on the B loan is Libor plus 600 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for one year.

During syndication, the term loan B was upsized from $320 million, the spread was set at the low end of the Libor plus 600 bps to 625 bps talk, the discount was tightened from 97, and the call protection was extended from six months.

The company’s $365 million credit facility (B2/B) also includes a $40 million five-year revolver.

RBC Capital Markets LLC and Societe Generale are leading the deal.

Imagine! funding buyout

Proceeds from Imagine! Print’s credit facility will be used to help finance its acquisition by Oak Hill Capital Partners from its founder, Bob Lothenbach, who will retain a significant minority ownership position.

Funds from the recent term loan B upsizing are being used to reduce the equity component for the buyout. Equity comprises about 50% of the transaction.

Closing is expected this quarter, subject to HSR approval and other customary conditions.

Imagine! is a Minneapolis-based provider of printed in-store marketing solutions.

Valeant inches higher

Valeant Pharmaceuticals’ term loans regained some of the losses they experienced during the previous session as the secondary market in general was a little better, sources remarked.

The term loan E was quoted at 93½ bid, 94 offered, up from 92 bid, 92¾ offered, the term loan F was quoted at 93½ bid, 94 offered, up from 92¼ bid, 93 offered, and the C and D term loans were quoted at 94½ bid, 95 offered, up from 92½ bid, 93½ offered, one trader said.

The loans had dropped on Tuesday after the company released preliminary unaudited fourth quarter numbers, and cut guidance for the first quarter of 2016 and full-year 2016.

At the beginning of this week, prior to the earnings and guidance news, the term loan E was seen at 94½ bid, 95 offered, the term loan F was 94 5/8 bid, 95 1/8 offered, and the term loans C and D were 95 bid, 95¾ offered.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

BWIC announced

Also in trading, a roughly $280 million Bid Wanted In Competition emerged, and market participants are being asked for bids by 10:30 a.m. ET on Thursday, a trader said.

Some of the names in the portfolio include American Airlines Inc., Aramark Corp., Berry Plastics Corp., BJ’s Wholesale Club Inc., Charter Communications, Delta Air Lines Inc., First Data Corp., Harland Clarke Holdings Corp., Kronos Inc., Nexeo Solutions LLC, Sabre Inc., Sourcehov LLC, Trinet HR Corp., Valeant Pharmaceuticals and Zayo Group LLC.

There are about 177 issuers in the portfolio, the trader added.

ON Semiconductor tweaks deal

Switching to the primary market, ON Semiconductor increased its seven-year covenant-light term loan B to $2.2 billion from $2 billion, moved the original issue discount to 98.5 from 98, pushed out the 101 soft call protection to one year from six months and eliminated the MFN sunset, market sources said.

Pricing on the term loan remained at Libor plus 450 bps with a 0.75% Libor floor.

Regarding the five-year revolver, it will be upsized from its initial amount of $400 million, and although the new size has not yet firmed up, it is known that the tranche will be at least $600 million, sources remarked.

Recommitments are due by 11 a.m. ET on Thursday.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, HSBC Securities (USA) Inc. and SMBC are leading the deal (Ba1).

ON buying Fairchild

Proceeds from ON Semiconductor’s credit facility will be used to finance the acquisition of Fairchild Semiconductor International Inc. for $20.00 per share in an all-cash transaction valued at about $2.4 billion.

As a result of the term loan B upsizing and the intention to draw $200 million under the revolver, the company is no longer planning to issue $400 million of senior unsecured notes, sources added.

Closing on the acquisition is expected in the second quarter, but the term loan will fund into escrow no later than 31 days following allocation and the original issue discount will be earned at funding into escrow.

ON Semiconductor is a Phoenix-based semiconductor company. Fairchild Semiconductor is a San Jose, Calif.-based semiconductor company.

Sensus USA reveals talk

Sensus USA held its bank meeting on Wednesday morning, launching its $625 million seven-year first-lien term loan with price talk of Libor plus 550 bps with a 1% Libor floor and an original issue discount of 98, according to a market source.

As previously reported, the term loan has 101 soft call protection for one year.

The term loan launched at a slightly larger size than the $620 million amount described when the deal was first announced on Monday.

Along with the term loan, the company’s $700 million credit facility (B2/B) includes a $75 million five-year revolver.

Commitments are due at 5 p.m. ET on March 30.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt.

Sensus is a Raleigh, N.C.-based provider of advanced utility infrastructure systems and metering technologies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.