Sensus updated, breaks atop OID; MGM Growth Properties, American Renal price talk surfaces

By Sara Rosenberg

New York, April 1 – Sensus USA Inc. modified the original issue discount on its first-lien term loan, and then the debt made its way into the secondary market on Friday with levels quoted above the adjusted issue price.

In more happenings, details on MGM Growth Properties Operating Partnership LP’s credit facility, including structure and price talk, were released in connection with its bank meeting.

Also, American Renal Holdings Inc. revealed pricing guidance on its add-on term loan, Samsonite International SA came out with timing on the launch of its credit facility and an updated structure, and AssuredPartners Inc. joined the near-term calendar.

Sensus tweaks OID, trades

Sensus revised the original issue discount on its $625 million seven-year first-lien term loan to 97 from 98, while keeping pricing at Libor plus 550 basis points with a 1% Libor floor, according to a market source.

The term loan still has 101 soft call protection for one year.

The company’s $700 million credit facility (B2/B) also includes a $75 million five-year revolver.

Recommitments were due by 10 a.m. ET on Friday, and the term loan began trading shortly thereafter, with levels quoted at 97¼ bid, 97¾ offered, a trader remarked.

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.

MGM details emerges

MGM Growth Properties held its bank meeting on Friday morning and, in connection with the event, it was disclosed that the senior secured credit facility (BB) is sized at $2.75 billion and split between a $600 million five-year revolver, a $300 million five-year term loan A and a $1.85 billion seven-year covenant-light term loan B, according to a market source.

The term loan B is talked at Libor plus 400 bps to 425 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

Based on an 8-K filed with the Securities and Exchange Commission, pricing on the revolver and term loan A is expected at Libor plus 275 bps.

Commitments are due at noon ET on April 8, the source added.

MGM lead banks

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading MGM Growth Properties’ credit facility.

Proceeds will be used with $1.05 billion of senior unsecured notes and $800 million of equity to repay about $4 billion of debt that the operating partnership is expected to assume from MGM Resorts International and some of its subsidiaries, to help pay around $150 million of fees and expenses associated with the financings and related transactions and for general corporate purposes.

At closing, $150 million is expected to be drawn under the revolver.

MGM Growth Properties is Las Vegas-based real estate investment trust that is being spun off from MGM Resorts, a Las Vegas-based operator of resorts and casinos.

American Renal sets talk

American Renal disclosed talk of Libor plus 350 bps with a 1.25% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months on its $60 million add-on first-lien term loan that launched with a lender call during the session, a market source remarked.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

With the add-on, pricing on the company’s existing first-lien term loan will be increased to Libor plus 350 bps with a 1.25% Libor floor from Libor plus 325 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., Barclays and Goldman Sachs Bank USA are leading the add-on term loan that will be used with proceeds from a proposed initial public offering of common stock to refinance in full a second-lien term loan.

The add-on term loan had come to market in January with talk of Libor plus 375 bps with a 1.25% Libor floor, a discount of 99 and a 101 soft call for six months but was pulled later that month due to a delay in the IPO.

American Renal is a Beverly, Mass.-based provider of dialysis services.

Samsonite readies launch

Also on the primary front, Samsonite set a bank meeting for 10 a.m. ET in New York on Tuesday to launch its $2,425,000,000 senior secured credit facility, according to a market source.

The facility consists of a $500 million revolver, a $1.25 billion term loan A and a $675 million term loan B, the source said.

By comparison, the company had previously said that the credit facility consisted of a $500 million revolver and a $1,925,000,000 seven-year term loan.

Morgan Stanley Senior Funding, Inc., HSBC Bank USA, SunTrust Robinson Humphrey Inc., MUFG, Barclays, Citizens Capital Markets, ING, Fifth Third and Bank of China are leading the deal.

Samsonite buying Tumi

Proceeds from Samsonite’s credit facility will be used to help fund the acquisition of Tumi Holding Inc. for $26.75 per share in cash, an equity value of about $1.82 billion, and to refinance existing credit facilities at both companies.

Cash on hand will also be used to fund the acquisition.

Closing is expected in the second half of this year, subject to the receipt of approvals by Samsonite and Tumi shareholders, the receipt of required regulatory approvals and the satisfaction of other customary conditions.

Hong Kong-based Samsonite and South Plainfield, N.J.-based Tumi are manufacturers of bags and luggage.

AssuredPartners joins calendar

AssuredPartners scheduled a conference call for Monday to launch a $110 million incremental first-lien term loan talked at Libor plus 475 bps with a 1% Libor floor and an original issue discount that is still to be determined, a market source said.

Bank of America Merrill Lynch is the left lead on the deal that will be used to pay down revolver borrowings, to fund acquisitions and for general corporate purposes.

AssuredPartners is a Lake Mary, Fla.-based provider of property and casualty and employee benefits insurance brokerage services.

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