Plaskolite breaks; Endurance retreats with Constant Contact acquisition; T-Mobile reworked

By Sara Rosenberg

New York, Nov. 2 – Plaskolite’s credit facility hit the secondary market on Monday, with the first-lien term loan trading above its original issue discount, and Endurance International Group Inc.’s term loan was softer with news of an acquisition that would result in additional debt.

Switching to the primary market, T-Mobile USA Inc. increased the size of its term loan B while reducing pricing, and Veritas Technologies Corp. and U.S. Renal Care Inc. released price talk with launch.

Plaskolite starts trading

Plaskolite’s credit facility freed up for trading on Monday, with the $312.5 million seven-year covenant-light first-lien term loan (B1/B+) quoted at 99½ bid, par offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 475 basis points with a step-down to Libor plus 450 bps when total net leverage is 5 times and a 1% Libor floor. The tranche has 101 soft call protection for one year and was issued at a discount of 99.

During syndication, the first-lien term loan was upsized from $305 million, pricing was finalized at the high end of the Libor plus 450 bps to 475 bps talk, the step-down was added, the call protection was extended from six months and the MFN sunset was removed.

The company’s $457.5 million credit facility also includes a $40 million five-year revolver (B1/B+) priced at Libor plus 450 bps with no floor and a $105 million privately placed second-lien term loan (Caa1/CCC+).

Plaskolite being acquired

Proceeds from Plaskolite’s credit facility will be used to help fund its buyout by Charlesbank Capital Partners.

The funds from the first-lien term loan upsizing will fund a roughly $7.5 million acquisition that is expected to close in November. Since the company was going to draw on its revolver for the acquisition, the term loan increase did not represent incremental leverage but provides Plaskolite with additional ongoing liquidity.

Antares Capital and Keybanc Capital Markets are leading the financing.

Closing is expected on Tuesday.

Plaskolite is a Columbus, Ohio-based manufacturer of acrylics and other plastic products.

Endurance weakens

Endurance International’s term loan dropped to 98½ bid, 99¼ offered from 99 7/8 bid, par 1/8 offered as the company disclosed plans to get a new $735 million incremental term loan and issue $350 million of senior unsecured notes to help fund its purchase of Constant Contact Inc. for $32 per share in cash, or about $1.1 billion, a market source said.

Credit Suisse Securities (USA) LLC and Goldman Sachs are leading the debt financing.

With the acquisition, Endurance expects to extend the maturity of its existing term loan, company officials said in a conference call.

Closing is expected in the first quarter of 2016, subject to Constant Contact shareholder approval and other customary conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

Combined estimated pro forma secured leverage is 4.3 times and unsecured leverage is 5.2 times based on 2015 adjusted EBITDA of $395 million and $55 million of run rate synergies.

Endurance is a Burlington, Mass.-based provider of web hosting and online services. Constant Contact is a Waltham, Mass.-based online marketing company.

T-Mobile revisions emerge

Moving to the primary market, T-Mobile USA raised its seven-year covenant-light term loan B to $2 billion from $1 billion and trimmed pricing to Libor plus 275 bps from Libor plus 300 bps, according to a market source, who said the 0.75% Libor floor and original issue discount of 99.5 were unchanged.

Commitments were due at the end of the day on Monday, the source added.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the loan that will be used for general corporate purposes, which may include the acquisition of additional spectrum.

T-Mobile is a Bellevue, Wash.-based provider of wireless communications.

Veritas discloses guidance

Veritas Technologies held its bank meeting on Monday, launching its $2.45 billion seven-year covenant-light term loan and €760 million seven-year covenant-light term loan with talk of Libor/Euribor plus 450 bps to 475 bps with a 1% floor, an original issue discount of 98 to 99 and 101 soft call protection for six months, market sources said.

The company’s secured credit facility (B1/B+) also includes a $300 million five-year revolver.

Commitments are due at 5 p.m. ET on Nov. 12, sources added.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., UBS AG, Jefferies Finance LLC, Barclays, Citigroup, Credit Suisse Securities (USA) LLC and Goldman Sachs are leading the debt that will help fund the $8 billion buyout of the company by the Carlyle Group from Symantec Corp.

The company is also expected to use $500 million of secured notes, $1,775,000,000 of unsecured notes and equity for the buyout.

Closing is expected around year’s end, subject to regulatory approvals and other conditions.

Veritas is a Mountain View, Calif.-based provider of storage and server management software solutions.

U.S. Renal launches

U.S. Renal Care had its bank meeting in the afternoon, and with the event, talk on its first- and second-lien term loans was announced, according to a market source.

The $1.75 billion seven-year first-lien covenant-light term loan (B) is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $265 million eight-year second-lien covenant-light term loan (CCC+) is talked at Libor plus 800 bps with a 1% Libor floor, a discount of 98, and call protection of 102 in year one and 101 in year two, the source said.

The company’s $2,165,000,000 credit facility also includes a $150 million five-year revolver (B).

Commitments are due at 5 p.m. ET on Nov. 13, the source added.

Barclays, J.P. Morgan Securities LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt in connection with the merger of U.S. Renal and DSI Renal.

Closing on the merger is expected by the end of the fourth quarter, subject to regulatory and certificate of need approval in certain states.

Nashville-based DSI Renal and Plano, Texas-based U.S. Renal are providers of dialysis services.

Sirius Computer closes

In other news, the buyout of Sirius Computer Solutions Inc. by Kelso & Co. from Thoma Bravo and Harvey Najim, the company’s founder, has been completed, a news release said.

For the buyout, the San Antonio-based provider of data center-focused technology integration services got a $655 million credit facility consisting of a $60 million revolver (Ba3/B+), a $445 million seven-year covenant-light first-lien term loan (Ba3/B+) and a $150 million eight-year covenant-light second-lien term loan (B3/B-).

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor, and it was issued at a discount of 98. The tranche has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 950 bps with a 1% Libor floor and was issued at 97. This debt has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was lifted from talk of Libor plus 425 bps to 450 bps, the discount was revised from 99 and the call protection was extended from six months, and the spread on the second-lien term loan was raised from talk of Libor plus 875 bps to 900 bps while the discount widened from 98.5.

Credit Suisse, Barclays and Citigroup led the deal.

Integro buyout wraps

The acquisition of Integro Ltd. by Odyssey Investment Partners LLC has been completed, according to a news release.

To help fund the transaction, Integro got a new $440 million credit facility that includes a $50 million five-year revolver, a seven-year first-lien term loan split between a $195 million funded tranche and a $75 million delayed-draw tranche and an eight-year second-lien term loan split between a $105 million funded tranche and a $15 million delayed-draw tranche.

Pricing on the first-lien term debt is Libor plus 575 bps with a 1% Libor floor, and it sold at an original issue discount of 96. The debt has 101 soft call protection for one year.

The second-lien debt is priced at Libor plus 925 bps with a 1% Libor floor and was issued at a discount of 98. This debt is non-callable for one year, then at 103 in year two and 101 in year three.

First-lien leverage is 3.7 times, and second-lien leverage is 5.7 times.

Integro lead banks

Goldman Sachs and Jefferies led Integro’s credit facility, which underwent a number of revisions during syndication.

Some of the changes were that the funded first-lien term loan was downsized from $220 million, the delayed-draw first-lien term loan was reduced from $90 million, pricing was lifted from talk of Libor plus 475 bps to 500 bps, the discount was revised from 99, the call protection was extended from six months and the delayed draw was modified so that it would fully fund at close into escrow as opposed to having a ticking fee of half the coupon from days 31 to 60 and the full coupon plus the floor thereafter.

Also during syndication, the funded second-lien loan was upsized from $80 million, the second-lien delayed-draw piece was added, pricing was changed from talk of Libor plus 875 bps to 900 bps, the discount was adjusted from 98.5, and the call protection was sweetened from 102 in year one and 101 in year two.

Other changes included increasing the excess cash flow sweep, reducing the incremental allowance, removing the 18-month MFN sunset and revising the permitted acquisition definition.

Integro is a New York-based insurance brokerage and risk management firm.

B&G Foods completes loan

B&G Foods Inc. closed on its $750 million seven-year second secured term loan B (Ba3/BB+) that was used to help fund the acquisition of the Green Giant and Le Sueur brands from General Mills Inc. for about $765 million, according to a news release.

Pricing on the loan is Libor plus 300 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $500 million, reducing the amount of funds to be borrowed under the company’s revolver for the acquisition; pricing was cut from talk of Libor plus 325 bps to 350 bps; and the discount firmed at the tight end of the 99 to 99.5 guidance.

Barclays, Bank of America Merrill Lynch, RBC, Credit Suisse, Deutsche Bank and BMO Capital Markets led the deal.

Senior secured leverage is 3.6 times, and net total leverage is 5.8 times.

B&G Foods is a Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable foods. The Green Giant and Le Sueur brands are leaders in the frozen and canned vegetables market.

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