Sequa, Advantage Sales break; Misys, TierPoint revise deals; Truck Hero, Quikrete set talk

By Sara Rosenberg

New York, April 26 – Sequa Corp.’s credit facilities allocated and broke for trading on Wednesday, with the first-lien term loan quoted above its original issue discount, and Advantage Sales & Marketing hit the secondary market too.

Meanwhile, in the primary market, Misys Ltd. upsized its U.S first- and second-lien term loans, downsized its euro second-lien term loan and updated price talk, and TierPoint LLC raised the spread on its first-lien term loan.

Also, Truck Hero Inc. and Quikrete Co. came out with price talk on their loan transactions with launch, and Alexander Mann Solutions, Caesars Entertainment Resort Properties LLC and Coronado Coal LLC are getting ready to bring new deals to market.

Sequa starts trading

Sequa’s credit facilities freed to trade on Wednesday, with the $920 million 4.5-year covenant-light first-lien term loan B quoted at par ½ bid, 101¼ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 550 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The company’s $1,405,000,000 in senior secured credit facilities also include a $135 million revolver and a $350 million five-year covenant-light second-lien term loan.

The second-lien term loan is priced at Libor plus 900 bps with a 1% Libor floor and was issued at a discount of 99. This tranche is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the first-lien term loan was upsized from a revised amount of $900 million and an initial size of $600 million, pricing was reduced from Libor plus 575 bps, the discount was changed from 99 and the call protection was shortened from one year. Also, the spread on the second-lien term loan was trimmed from talk of Libor plus 1,000 bps to 1,050 bps, the discount was tightened from 98 and the call protection was revised from non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

Sequa recapitalizing

Proceeds from Sequa’s credit facilities, which are expected to close on Friday, will be used to fund a recapitalization/refinancing of existing debt.

Due to the recent upsizings to the first-lien term loan, the company eliminated plans to sell $300 million of first-lien senior secured bonds and the redemption of stub notes is being pre-funded.

The company currently expects that $30 million of its notes won’t be exchanged so the minimum threshold is being reduced and the notes will remain outstanding but will be redeemed at some point post-closing.

Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the debt.

Sequa is a Palm Beach Gardens, Fla.-based aerospace and diversified industrial company.

Advantage Sales tops OID

Advantage Sales & Marketing’s $225 million incremental term loan B (B1) emerged in the secondary market too, with levels quoted at 97¼ bid, 97¾ offered, a trader remarked.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 97, after widening during syndication from 98.

Bank of America Merrill Lynch is leading the deal that will be used to fund acquisitions and pay down revolving credit facility borrowings.

Advantage Sales is an Irvine, Calif.-based sales and marketing agency.

Misys restructures

Moving to the primary market, Misys lifted its U.S. seven-year covenant-light first-lien term loan B to $3.42 billion from $3.12 billion and set the spread at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, while leaving the 1% Libor floor, original issue discount talk of 99 to 99.5 and 101 soft call protection for six months intact, a source said.

Regarding the company’s €1 billion seven-year covenant-light first-lien term loan B, pricing was lowered to Euribor plus 325 bps from talk of Euribor plus 400 bps to 425 bps, and the floor was changed to 1% from 0%. This tranche still has discount talk of 99 to 99.5 and 101 soft call protection for six months.

In addition, the company upsized its U.S. eight-year covenant-light second-lien term loan to $980 million from $850 million, lowered pricing to Libor plus 725 bps from talk of Libor plus 775 bps to 800 bps and revised the discount to 99 from 98.5, the source continued.

The company’s euro eight-year covenant-light second-lien term loan was scaled back to €250 million from €280 million, the spread firmed at Euribor plus 725 bps, the low end of the Euribor plus 725 bps to 750 bps talk, and discount talk was revised to a range of 98.5 to 99 from just 98.5.

The second-lien loans still have a 1% floor and hard call protection of 102 in year one and 101 in year two.

Included in the loans is a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Misys revolver pricing

Along with the term loan updates, Misys set pricing on its $400 million five-year multi-currency revolver at Libor plus 350 bps, the tight end of the Libor plus 350 bps to 375 bps talk, the source remarked. This tranche continues to have a 0% Libor floor.

Commitments are due at 4 p.m. ET on Thursday for the U.S. tranches and at 5 p.m. UK time on Thursday for the euro tranches.

Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading the senior secured credit facilities, with Morgan Stanley left on the U.S. term loan B, Citi left on the euro term loan B and Barclays left on the second-lien debt.

Misys buying DH

Proceeds from Misys credit facilities will be used with preferred equity and equity to fund the acquisition of DH Corp. for C$25.50 per share in cash, including the assumption of all debt obligations including the issued convertible debentures, for a total enterprise value of about C$4.8 billion, and to refinance existing debt.

As a result of the upsizing to the credit facilities, the company eliminated plans for a super holdco term loan, the source added.

Closing is expected before the end of the third quarter, subject to court approval, the approval of DH’s shareholders and other customary conditions.

Misys, a Vista Equity Partners portfolio company, is a London-based provider of financial services software. DH is a Toronto-based financial technology provider.

TierPoint flexes first-lien

TierPoint lifted pricing on its $700 million seven-year covenant-light first-lien term loan (B2/B+/BB) to Libor plus 375 bps from talk of Libor plus 325 bps to 350 bps and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

The company’s $1,095,000,000 in credit facilities also include a $175 million five-year revolver and a $220 million eight-year covenant-light second-lien loan (Caa2/CCC+/B-).

Talk on the second-lien term loan remained at Libor plus 725 bps to 750 bps with a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two, with the ability to redeem all of the debt with proceeds from a bond offering at 101 in the first year.

Commitments are due at noon ET on Thursday, accelerated from Friday, the source said.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Fifth Third, ING, Barclays, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing term loans and a revolver. RBC is left lead on the first-lien debt and Credit Suisse is left lead on the second-lien debt.

TierPoint is a St. Louis-based provider of hybrid IT solutions.

Truck Hero reveals talk

In more primary happenings, Truck Hero held its bank meeting on Wednesday, and with the event, talk on its $675 million seven-year covenant-light first-lien term loan and $250 million eight-year covenant-light second-lien term loan was disclosed, according to a market source.

The first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor and a discount of 98.5, the source said.

As previously reported, the first-lien term loan has 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $1,025,000,000 in senior secured credit facilities also includes a $100 million five-year revolver.

Commitments are due on May 10, the source added.

Truck Hero lead banks

Jefferies Finance LLC, Antares Capital, Golub, Citizens Bank, Natixis and SunTrust Robinson Humphrey Inc. are leading Truck Hero’s credit facilities.

Proceeds will be used to help fund the buyout of the company by CCMP Capital Advisors LLC. TA Associates, the current holders of a majority interest in Truck Hero, and founding chief executive officer Bill Reminder and chief operating officer Kelly Kneifl will remain significant investors in the company.

Closing is expected this quarter, subject to customary conditions.

Truck Hero is an Ann Arbor, Mich.-based provider of truck bed covers and other truck and Jeep accessories.

Quikrete holds call

Quikrete hosted a lender call at 3 p.m. ET, launching its $2,594,000,000 term loan B due November 2023 at talk of Libor plus 275 bps with a step-down to Libor plus 250 bps based on leverage, no Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 3 p.m. ET on May 3, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B from Libor plus 325 bps with a 0.75% Libor floor.

Quikrete is an Atlanta-based manufacturer of packaged concrete and related products.

Alexander Mann coming soon

Alexander Mann Solutions set a bank meeting for 3 p.m. ET in New York on Thursday to launch $305 million in credit facilities (B2/B+), according to a market source.

The facilities consist of a $40 million revolver and a $265 million seven-year first-lien term loan talked at Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on May 11.

Credit Suisse Securities (USA) LLC, ING Capital and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Alexander Mann is a Berkshire, England-based talent acquisition and management business.

Caesars Entertainment on deck

Caesars Entertainment Resort Properties scheduled a call for 1 p.m. ET on Thursday to launch a new loan deal to current and prospective lenders, a market source remarked.

Citigroup Global Markets Inc. is leading the transaction.

Caesars Entertainment Resort, a wholly owned subsidiary of Caesars Entertainment Corp., is a Las Vegas-based owner of casinos.

Coronado Coal plans loan

Coronado Coal will hold a lender meeting on Thursday to launch a $200 million covenant-light term loan B, a market source said.

Bank of America Merrill Lynch is the left lead on the deal that will be used to fund a dividend.

Coronado Coal is a Beckley, W.Va.-based producer of high-quality metallurgical coal.

© 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.