Technicolor frees up; Go Daddy up with refinancing; Rocket Software, Dutch withdrawn

By Sara Rosenberg

New York, April 28 - Technicolor's (Tech Finance & Co. SCA) term debt emerged in the secondary market on Monday with levels seen above its original issue discount price, and Go Daddy Operating Co. LLC's term loan B strengthened on refinancing news.

Moving to the primary, Rocket Software Inc. and Dutch LLC removed their deals from market, and Ortho-Clinical Diagnostics Inc. and KCA Deutag disclosed talk on their deals with launch.

In addition, US Ecology Inc. released price talk ahead of its bank meeting, and Jason Inc., Anchor Glass Container Corp., Affinion Group Inc., Koppers Inc. and Press Ganey Associates Inc. (PGA Holdings Inc.) joined the near-term calendar.

Technicolor hits secondary

Technicolor's term debt freed up for trading on Monday, with the $872 million term loan due July 10, 2020 quoted at par bid, par ½ offered, according to a trader.

Pricing on the U.S. term loan and a €317 million term loan due July 10, 2020 is Libor/Euribor plus 450 basis points with a 1% floor and they were sold at an original issue discount of 991/2. The tranches include 101 soft call protection for six months.

During syndication, the U.S. term loan was upsized from $844 million, the euro term loan was downsized from €321 million, pricing on the tranches was lifted from talk of Libor/Euribor plus 400 bps to 425 bps and the offer price was revised from par on the existing and 99½ on new money.

Morgan Stanley Senior Funding Inc. is leading the senior secured deal that will be used to reprice existing U.S. and euro term loans from Libor/Euribor plus 600/625 bps with a 1.25% floor.

The technology company focused on the media and entertainment sector expects the deal to close on Wednesday.

Go Daddy rises

Go Daddy's term loan B moved to 99½ bid, par offered from 99 bid, to 99½ offered in trading as investors were told that the company will be refinancing the debt, a trader said.

Go Daddy will hold a conference call at 9 a.m. ET on Tuesday to launch a $1.25 billion credit facility that consists of a $150 million five-year revolver and a $1.1 billion seven-year covenant-light term loan B talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, a source said.

In addition to repaying the existing B loan and replacing the existing revolver, the new deal will be used by the Scottsdale, Ariz.-based provider of web hosting and domain names to fund a dividend.

The term loan that is being taken out is priced at Libor plus 300 bps with a 1% Libor floor.

Lead banks, Deutsche Bank Securities Inc., Barclays, RBC Capital Markets, KKR Capital Markets, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc., are asking for commitments by the end of the day on Thursday.

Rocket pulls loans

Over in the primary, Rocket Software removed its $725 million of term loans from market due to unfavorable conditions, a market source remarked.

The debt included a $550 million first-lien covenant-light term loan (B1/B+) talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call for six months.

In addition, the company was shopping a $175 million second-lien covenant-light term loan (Caa1/B-) talked at Libor plus 725 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Jefferies Finance LLC was leading the deal that was going to be used to refinance existing and fund a dividend.

Rocket Software is a Waltham, Mass.-based software development firm.

Dutch shelved

Dutch LLC withdrew from market its $200 million six-year term loan B (B2/BB-) that was talked at Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, according to a market source.

Bank of America Merrill Lynch and RBC Capital Markets were leading the deal that was going to be used to refinance existing debt.

Dutch is a designer, manufacturer, marketer and wholesaler of apparel.

Ortho-Clinical pricing

Also in the primary, Ortho-Clinical Diagnostics held a bank meeting on Monday, launching its $2,175,000,000 seven-year term loan B with talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, according to a market source.

The company's $2,525,000,000 senior secured deal (B1/B) also includes a $350 million five-year revolver.

Commitments are due on May 7, the source said.

Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS Securities LLC and Nomura are leading the deal that will be used with equity and bonds to fund the buyout of the company by the Carlyle Group from Johnson & Johnson for $4.15 billion.

Closing is expected in the middle of this year, subject to customary regulatory approvals.

Ortho-Clinical Diagnostics is a Raritan, N.J.-based provider of services for screening, diagnosing, monitoring and confirming diseases.

KCA releases guidance

KCA Deutag came out with talk of Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 98½ to 99 and call protection of 102 in year one and 101 in year two on its new six-year secured term loan (B3) that launched during the session, according to a market source.

Commitments are due on May 12, the source said.

Proceeds from the loan and a second notes offering will be used to refinance existing bank debt and add a small amount of cash to the balance sheet.

The total amount of new term loan debt and notes is $750 million, with the split still to be determined.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Lloyds Securities LLC are leading the deal.

KCA Deutag is a Scotland-based drilling contractor, managing platform drilling rigs and owning and operating a fleet of jack-up, self-erect tender and land rigs.

US Ecology floats talk

US Ecology disclosed talk on its $415 million seven-year term loan at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source. The yield is 4 1/8%.

As reported earlier, the term loan, along with a $125 million five-year revolver, will launch with a bank meeting at 9:30 a.m. ET on Wednesday.

Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are leading the $540 million credit facility (Ba3) that will be used to help fund the $465 million acquisition of EQ-The Environmental Quality Co., a Wayne, Mich.-based environmental services and waste management company, from Kinderhook Industries LLC.

Closing is expected in the second or third quarter, subject to customary conditions.

US Ecology, a Boise, Idaho-based provider of hazardous and non-hazardous waste management and recycling services, expects leverage to be around 3.3 times 2013 pro forma combined company EBITDA.

Jason sets launch

Jason came out with a bank meeting time and date of 10 a.m. ET in New York on Wednesday to launch its $460 million credit facility, according to a market source.

The facility consists of a $40 million revolver, a $300 million seven-year covenant-light first-lien loan and a $120 million eight-year covenant-light second-lien loan.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used with equity and proceeds from Quinpario Acquisition Corp.'s initial public offering that was completed in August to fund the $538.65 million buyout of the company by Quinpario from Saw Mill Capital LLC, Falcon Investment Advisors LLC and other investors.

Closing is expected in the second quarter, subject to regulatory and shareholder approval.

Jason is a Milwaukee-based manufacturer of items within the seating, finishing, components and automotive acoustics markets. Quinpario is a St. Louis-based special purpose acquisition company.

Anchor Glass timing emerges

Anchor Glass revealed timing on the launch of its previously announced $435 million credit facility, with the bank meeting scheduled to take place at 10:30 a.m. ET in New York on Thursday, a market source said,

The facility consists of a $100 million five-year ABL revolver and a $335 million seven-year first-lien term loan with a 1% Libor floor.

UBS Securities LLC and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by KPS Capital Partners LP from Ardagh Holdings USA Inc.

Closing is expected in the second or third quarter, subject to customary conditions and regulatory approvals.

Anchor Glass is a Tampa, Fla.-based manufacturer of glass packaging products for the beer, liquor, food, beverage and ready-to-drink end markets.

Affinion joins calendar

Affinion Group will hold a call at 11 a.m. ET on Tuesday to launch a $1.27 billion credit facility, according to a market source.

The facility consists of a $120 million revolver due January 2018, a $650 million first-lien term loan due April 2018 and a $500 million second-lien term loan due October 2018, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to amend and extend the company's existing senior secured credit facility.

The new first-lien term loan will replace about $604 million of existing term loan debt that was set to mature in October 2016 and about $46 million of existing revolver borrowings, and the new second-lien term loan will replace about $477.9 million of existing term loan debt that was set to mature in October 2016.

Affinion is a Norwalk, Conn.-based provider of marketing services and loyalty programs.

Koppers readies deal

Koppers set a bank meeting for May 14 in Pittsburgh to launch its previously announced $800 million senior secured credit facility, according to market sources.

It is estimated that the credit facility will consist of a $500 million revolver and a $300 million term loan A, but sizes are still fluid, sources said.

PNC Bank is leading the deal that will be used to fund the $460 million acquisition of the Wood Preservation and Railroad Services businesses of Osmose Holdings Inc.

Closing is expected in the third quarter, subject to regulatory filings and customary conditions.

Koppers is a Pittsburgh-based producer of carbon compounds and treated wood products.

Press Ganey on deck

Press Ganey scheduled a call for 11 a.m. ET on Tuesday to launch a $35 million incremental first-lien term loan, according to a market source.

The company's existing first-lien term loan due April 20, 2018 is sized at about $376.7 million and priced at Libor plus 325 bps with a 1% Libor floor.

Barclays is leading the deal that will be used with cash on hand to repay the company's existing $45 million second-lien term loan.

Press Ganey is a South Bend, Ind.-based provider of health-care performance improvement services.

Technimark closes

In other news, the buyout of Technimark by the Pritzker Group has been completed, according to a news release.

To help fund the transaction, Technimark got a $249 million credit facility consisting of $30 million revolver and a $219 million seven-year term loan B, both priced at Libor plus 350 bps with a 1% Libor floor and sold at an original issue discount of 991/2. Included in the term loan is 101 soft call protection for six months.

GE Capital Markets led the deal.

Technimark is an Asheboro, N.C.-based injection molding company.

Skillsoft completes deal

The purchase of Skillsoft Ltd. by Charterhouse Capital Partners LLP from Berkshire Partners, Advent International and Bain Capital has closed, a news release said.

For the buyout, Skillsoft got a new $1,485,000,000 senior secured credit facility consisting of a $100 million five-year revolver (B1/B-), a $900 million seven-year covenant-light first-lien term loan (B1/B-) and a $485 million eight-year covenant-light second-lien term loan (Caa2/CCC).

Pricing on the first-lien term loan is Libor plus 350 bps with a 1% Libor floor and it was sold at a discount of 991/2. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 675 bps. There is a 1% Libor floor and hard call protection of 102 in year one and 101 in year two, and the debt was sold at 991/4.

Skillsoft lead banks

Barclays, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. led Skillsoft's credit facility.

During syndication, pricing on the first-lien term loan firmed at the wide end of the Libor plus 325 bps to 350 bps talk and the soft call was extended from six months, the spread on the second-lien loan finalized at the high end of the Libor plus 650 bps to 675 bps talk, and the 12 month MFN sunset provision was removed.

SkillSoft is a Dublin, Ireland-based provider of cloud-based learning services.

Stratus Technologies wraps

Stratus Technologies Inc.'s buyout by Siris Capital Group LLC has closed, according to a news release.

For the transaction, Stratus got a $245 million credit facility (B2/B+) comprised of a $20 million revolver and a $225 million seven-year term loan B.

Pricing on the term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at a discount of 99. There is 101 soft call protection for one year.

During syndication, pricing on the term loan firmed at the wide end of the Libor plus 475 bps to 500 bps talk, the discount was changed from 991/2, the soft call was extended from six months and a covenant was added.

SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. led the deal.

Stratus Technologies, a Maynard, Mass.-based provider of infrastructure-based services that keep applications running continuously, has gross leverage of 4.2 times and net leverage of 3.8 times.

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