Asurion term loans rise; Greatbatch, FullBeauty, SiteOne, Technicolor price talk surfaces

By Sara Rosenberg

New York, Sept. 22 – Asurion LLC’s term loan B-1 was stronger in trading on Tuesday as talk of an upcoming lender call hit the market and some buyers started to fill in following about two weeks of selling pressure.

Moving to the primary market, Greatbatch Ltd., FullBeauty Brands, SiteOne Holding LLC (renamed from JDA Holding LLC) and Technicolor released price talk on their new loan deals with launch, and Sirius Computer Solutions Inc. and DigiCert joined this week’s calendar.

Asurion loans gain

Asurion’s term loans rose in the secondary market on Tuesday as buyers surfaced with investors getting more comfortable with trading levels after about two weeks of pressure, and lenders were told that the company would be hosting a lender call on Thursday, according to traders.

The term loan B-1 was quoted by one trader at 94 bid, 95½ offered, up around half a point on the day.

A second trader had the B-1 quoted at 95 bid, 96 offered, up from 94 bid, 95 offered, and the B-4 loan quoted at 94½ bid, 95½ offered, up from 92¾ bid, 93¾ offered.

The debt started to come under attack earlier this month when Apple announced a new plan to directly finance iPhone purchases so consumers don’t have to go through wireless carriers, which in turn caused lenders to panic that this would adversely affect Asurion’s business.

Prior to the Apple announcement, Asurion’s term loan B-1 was probably wrapped around the 99 area, the first trader added.

Asurion is a Nashville-based provider of technology protection services.

Greatbatch sets talk

Switching to the primary market, Greatbatch held its bank meeting on Tuesday morning, and shortly before the event kicked off, price talk on its $1,025,000,000 seven-year term loan B was announced, according to a market source.

The term loan B is talked at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99, the source said, and as previously reported, the debt has 101 soft call protection for six months.

The company’s $1,525,000,000 credit facility (B1/B+) also includes a $200 million five-year revolver and a $300 million six-year term loan A talked at Libor plus 325 bps, subject to a leverage-based grid, and an original issue discount of 99.75, the source continued.

Commitments are due on Oct. 8.

Greatbatch lead banks

Credit Suisse Securities (USA) LLC, M&T Bank and Keybanc Capital Markets are leading Greatbatch’s credit facility, with Credit Suisse the left lead on the term loan B and M&T the left lead on the revolver and term loan A.

Proceeds will be used to help fund the acquisition of Lake Region Medical.

Greatbatch is a Frisco, Texas-based medical device company. Lake Region is a Wilmington, Mass.-based provider of outsourced manufacturing and engineering services to the medical device industry.

FullBeauty launches

FullBeauty Brands disclosed price talk on its first- and second-lien term loans with its bank meeting, a source said.

The $820 million seven-year first-lien term loan (B1/B-) is talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $345 million eight-year second-lien term loan (Caa1/CCC) is talked at Libor plus 850 bps with a 1% Libor floor, a discount of 98 to 98.5 and call protection of 102 in year one and 101 in year two, the source continued.

The company’s $1.29 billion credit facility also includes a $125 million ABL revolver.

Commitments are due on Oct. 2, the source added.

FullBeauty being acquired

Proceeds from FullBeauty’s credit facility will be used to help fund its buyout by Apax Partners LLP from Charlesbank Capital Partners and Webster Capital. Following closing, Charlesbank will maintain a substantial ownership interest in the company.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Jefferies Finance LLC and Deutsche Bank Securities Inc. are leading the debt, with JPMorgan left on the first-lien and Goldman left on the second-lien.

Closing is expected during the fourth quarter, subject to customary conditions.

FullBeauty Brands is a New York-based catalog retailer and online marketplace for plus-size consumers.

SiteOne guidance emerges

SiteOne came out with talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $350 million six-year first-lien term loan B that launched with a morning bank meeting, according to a market source.

Commitments are due on Oct. 6, the source said.

UBS Securities LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

SiteOne is an Alpharetta, Ga.-based wholesale distributor of landscape supplies for green industry professionals, including irrigation supplies.

Technicolor holds call

Technicolor had its lender call in the morning, launching its fungible €375 million-equivalent incremental term loan with talk of Libor/Euribor plus 400 bps with a 1% floor and an original issue discount of 99 to 99.5, a market source remarked.

Commitments are due on Oct. 5, the source added.

Goldman Sachs International is leading the loan that will be used with an up to €225 million rights offering and about €100 million of cash on hand to fund the acquisition of the Connected Devices division of Cisco and The Mill.

Pro forma expected leverage will be 1.7 times at the end of this year.

Technicolor is a France-based technology company focused on the media and entertainment sector.

Sirius on deck

Sirius Computer Solutions set a bank meeting for 10 a.m. ET in New York on Thursday to launch a $655 million credit facility, a market source said.

The facility consists of a $60 million revolver (B+), a $445 million seven-year covenant-light first-lien term loan (B+) and a $150 million eight-year covenant-light second-lien term loan (B-).

The first-lien term loan has a 1% Libor floor and 101 soft call protection for six months, and the second-lien term loan has a 1% Libor floor and call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due at 5 p.m. ET on Oct. 8.

Credit Suisse Securities (USA) LLC, Barclays and Citigroup Global Markets Inc. are leading the deal that will help fund the buyout of the company by Kelso & Co. from Thoma Bravo and founder Harvey Najim.

Closing is expected in the fourth quarter, subject to regulatory approvals and other closing conditions.

Sirius is a San Antonio-based provider of data center-focused technology integration services.

DigiCert timing, structure

DigiCert scheduled a bank meeting for Thursday afternoon to launch a $15 million revolver and a $220 million first-lien term loan led by Jefferies Finance LLC, according to a market source.

The company’s $345 million credit facility also includes a $110 million second-lien loan that was privately placed.

Previously, it was known that the deal was going to be late-September business and that it would have a first- and second-lien structure, but details were unavailable.

Proceeds will be used to help fund the buyout of the company by Thoma Bravo LLC from TA Associates, however, TA Associates will remain a minority shareholder in the company.

DigiCert is a Lehi, Utah-based provider of digital certificates.

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