USI, Conduent, Radio One, ProAmpac, Liberty Cablevision break; Mohegan Tribal updates deal

By Sara Rosenberg

New York, April 5 – USI Insurance Services’ credit facilities surfaced in the secondary market on Wednesday, with the term loan B quoted above its original issue discount, and Conduent Business Services LLC and Radio One Inc. broke too.

Also, ProAmpac finalized the issue price on its incremental term loan at the tight side of talk and Liberty Cablevision of Puerto Rico LLC set the original issue discount on its add-on first-lien term loan B at the tight end of guidance, and then both of these deals freed up for trading as well.

In more happenings, Mohegan Tribal Gaming Authority set the spread on its term loan B at the high end of talk and extended the call protection, and ServiceMaster Co. LLC pulled its term loan B repricing from market.

Furthermore, Blucora Inc., Landry’s Inc., Magnolia, Rhodia Acetow, Zest Holdings LLC, Grosvenor Capital Management and UFC Holdings LLC revealed price talk with launch.

Additionally, Inmar Inc. came out with timing and structure on its buyout credit facilities, and Garda World Security Corp. and Dynagas LNG Partners (Arctic LNG Carriers Ltd.) emerged with new deal plans.

USI starts trading

USI Insurance Services’ $1,885,000,000 seven-year term loan B broke for trading on Wednesday, with levels quoted at 99ľ bid, par offered, according to a market source.

Pricing on the term loan is Libor plus 300 basis points with a 25 bps step-down and a 0% Libor floor. The debt has 101 soft call protection for six months and was sold at an original issue discount of 99.5.

On Tuesday, the term loan was upsized to $1,795,000,000 as the company’s bond offering was downsized to $615 million from $705 million, and pricing was trimmed from Libor plus 325 bps.

The company’s $2,085,000,000 in senior secured credit facilities also include a $200 million revolver.

Bank of America Merrill Lynch, KKR Capital Markets, Citigroup Global Markets Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by KKR and Caisse de depot et placement du Quebec from Onex Corp. in a transaction that values the company at $4.3 billion.

Closing is expected by the end of the second quarter, subject to customary conditions, including regulatory approvals.

USI is a Valhalla, N.Y.-based insurance brokerage and consulting firm.

Conduent frees up

Conduent Business Services’ $847,875,000 senior secured term loan B due Dec. 7, 2023 began trading as well, with levels quoted at par 3/8 bid, par 7/8 offered, a market source remarked.

Pricing on the term loan B is Libor plus 400 bps with a 0% Libor floor, and it was issued at par. The loan has 101 soft call protection for six months.

During syndication, the spread on the term loan B firmed at the low end of the Libor plus 400 bps to 425 bps talk.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Mizuho, MUFG, US Bank, KeyBanc Capital Markets, PNC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to reprice an existing term loan B down from Libor plus 550 bps with a 0.75% Libor floor.

Closing is expected on Monday.

Conduent is a Florham Park, N.J.-based provider of business process services with expertise in transaction-intensive processing, analytics and automation.

Radio One tops OID

Radio One’s $350 million six-year term loan B (B2/B) hit the secondary market too, with levels quoted at 99Ľ bid, par offered, according to a trader.

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

During syndication, the spread on the loan was reduced from Libor plus 425 bps, and the discount firmed at the wide end of the 99 to 99.5 talk.

Guggenheim Securities LLC is leading the deal that will be used by the Silver Spring, Md.-based urban-oriented, multimedia company to refinance an existing roughly $345 million term loan due December 2018.

Secured net debt is 4.81 times and total net debt is 7.21 times.

Closing is expected on April 18.

ProAmpac sets price, breaks

ProAmpac firmed the issue price on its fungible $249 million incremental term loan (B) at par, the tight end of the 99.75 to par talk, a market source said.

As before, pricing on the loan is Libor plus 400 bps with a 1% Libor floor, and the debt has 101 soft call protection through November.

With final terms in place, the incremental loan made its way into the secondary market, and levels were seen at 101 bid, 101˝ offered, a trader added.

Antares Capital and RBC Capital Markets are leading the deal that will be used to fund a proposed acquisition.

Closing is expected on Thursday.

ProAmpac is a Cincinnati-based flexible packaging company.

Liberty updated, trades

Liberty Cablevision of Puerto Rico accelerated the commitment deadline on its $85 million add-on first-lien term loan B (B2/B) due Jan. 7, 2022 to 1 p.m. ET on Wednesday from noon ET on Thursday, and then firmed the original issue discount on the debt at 99.5, the tight end of the 99 to 99.5 talk, a market source remarked.

Pricing on the add-on term loan is Libor plus 350 bps with a 1% Libor floor.

By late day, the add-on term loan broke for trading, and levels were quoted at 99 5/8 bid, par 1/8 offered, a trader added.

Morgan Stanley Senior Funding Inc. and Bank of Nova Scotia are leading the deal that will be used to refinance an equivalent amount of existing second-lien term loan borrowings.

Closing is expected during the week of April 17.

Liberty Cablevision of Puerto Rico is a cable TV service provider in Puerto Rico.

Mohegan tweaks deal

Mohegan Tribal Gaming Authority finalized pricing on its $783 million term loan B due October 2023 at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk, and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the term loan B has a 1% Libor floor and an original issue discount of 99.875.

Citizens Bank is leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor.

Mohegan Tribal is an Uncasville, Conn.-based operator of gaming and entertainment enterprises.

ServiceMaster withdrawn

ServiceMaster removed the repricing of its $1.65 billion term loan B due 2023 from the primary market, a market source said.

Talk on the repricing had been Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months.

J.P. Morgan Securities LLC was leading the deal that would have repriced the term loan B down from Libor plus 250 bps with a 0% Libor floor.

ServiceMaster is a Memphis-based provider of residential and commercial services.

Blucora releases guidance

Also in the primary market, Blucora held its bank meeting on Wednesday morning, and shortly before the event kicked off, talk on its $375 million seven-year covenant-light first-lien term loan surfaced at Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $425 million in credit facilities (B1/BB-) also include a $50 million revolver.

Commitments are due at 5 p.m. ET on April 19.

Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance an existing first-lien term loan and a convertible note.

Blucora is a Bellevue, Wash.-based technology-enabled financial solutions provider focused on tax preparation and financial advisory services.

Landry’s details emerge

Landry’s launched on its afternoon lender call a repricing of its $1,284,000,000 senior secured first-lien term loan due Oct. 4, 2023 talked at Libor plus 250 bps to 275 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 4 p.m. ET on Monday, the source said.

Jefferies Finance LLC, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are leading the deal that that will reprice the existing term loan down from Libor plus 325 bps with a 0.75% Libor floor.

Landry’s is a Houston-based diversified restaurant, hospitality and entertainment company.

Magnolia launches

Magnolia announced talk of Libor plus 500 bps to 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $350 million seven-year term loan B that launched with a bank meeting during the session, a market source said.

The company’s $390 million in credit facilities (B) also include a $40 million revolver.

Commitments are due on April 20, the source added.

Macquarie Capital (USA) Inc. is leading the deal that will be used with equity to fund the buyout of Harris Corp.’s government IT services business by Veritas Capital Fund Management LLC for $690 million.

Closing is expected in the second quarter, subject to regulatory review and other customary conditions.

Magnolia is a Herndon, Va.-based provider of communications, engineering and IT solutions for intelligence, defense and federal civilian customers.

Rhodia sets talk

Rhodia Acetow came out with talk on its €367 million U.S. dollar equivalent seven-year covenant-light term loan and €198 million seven-year covenant-light term loan with its New York bank meeting, a market source remarked. A bank meeting for European investors will take place in London on Thursday.

Talk on the U.S. term loan is Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99, and talk on the euro term loan is Euribor plus 450 bps with a 1% floor and a discount of 99, the source continued.

The company’s €630 million-equivalent in credit facilities (B1/B+) also include a €65 million five-year revolver with a springing leverage test.

Commitments are due at 5 p.m. ET on April 19.

Credit Suisse, Barclays, Deutsche Bank, Goldman Sachs, UBS, RBS and Bank of America Merrill Lynch are leading the deal that will be used to help fund the buyout of the company by Blackstone.

Rhodia is a producer of cellulose acetate flakes and acetate tow.

Zest holds call

Zest Holdings hosted its lender call in the morning, launching its $268 million term loan B due August 2023 at talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments from existing lenders are due at 5 p.m. ET on Tuesday and from new lenders are due at noon ET on April 12.

Deutsche Bank Securities Inc., Citizens Bank and Fifth Third are leading the deal that will be used to merge an existing $218 million term loan B due August 2020 with a $50 million incremental term loan B into one fungible tranche.

Zest is a Carlsbad, Calif.-based developer, manufacturer and supplier of solutions to treat both natural teeth and implant supported restorations.

Grosvenor terms surface

Grosvenor Capital Management had its lender call, at which time the company launched its $90 million add-on first-lien term loan due August 2023 at talk of Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

The spread and floor on the add-on term loan matches existing first-lien term loan pricing.

Commitments are due at noon ET on April 13, the source said.

Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used with cash on balance sheet to refinance the company’s existing senior secured term loan due 2021.

Grosvenor Capital is a Chicago-based independent alternative asset management firm.

UFC comes to market

UFC Holdings held a lender call at 4 p.m. ET to launch a fungible $100 million add-on first-lien term loan (B+) that is talked with a par issue price, a market source said.

The term loan is priced at Libor plus 325 bps with a 1% Libor floor.

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

KKR Capital Markets LLC is leading the deal that will be used to help fund an earn-out and other payments to selling shareholders under a 2016 purchase agreement.

UFC is a Las Vegas-based sports brand and pay-per-view event provider.

Inmar on deck

Inmar set a bank meeting for 10 a.m. ET in New York on Friday to launch $830 million in credit facilities for its previously announced buyout by Omers Private Equity and management from ABRY Partners, according to a market source.

The facilities consist of a $75 million revolver, a $580 million seven-year covenant-light first-lien term loan talked with a 1% Libor floor and 101 soft call protection for six months, and a $175 million eight-year covenant-light second-lien term loan talked with a 1% Libor floor and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on April 21.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal.

Closing is expected in the second quarter.

Post-closing, ABRY will continue to be a significant shareholder in the company.

Inmar is a Winston-Salem, N.C.-based provider of technology-enabled promotion and inventory, logistics and settlement services.

Garda joins calendar

Garda World Security scheduled a bank meeting for Monday to launch $1.22 billion in credit facilities, a market source remarked.

The facilities consist of a $240 million revolver and a $980 million-equivalent senior secured term loan that will include a U.S. dollar tranche and a Canadian dollar tranche, the source added.

Barclays, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., TD Securities (USA) LLC, Societe Generale and Jefferies Finance LLC are leading the deal that will be used with $630 million in senior unsecured notes to fund a refinancing and recapitalization.

Garda is a Montreal-based provider of cash logistics and security solutions.

Dynagas readies loan

Dynagas LNG Partners emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Thursday to launch a $480 million six-year first-lien term loan B talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments are due at 5 p.m. ET on April 20, the source said.

Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will be used to refinance existing bank facilities.

Dynagas is a Monaco-based master limited partnership formed by Dynagas Holding Ltd. that owns six liquefied natural gas carriers employed on multi-year charters.

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