Solar Winds, Neustar set talk; Aecom upsizes; PSAV tightens

By Paul A. Harris

Portland, Ore., Feb. 22 – The cash flows of the dedicated bank loan funds have generally returned to the green, according to a bank loan trader who added that the funds were basically flat on Wednesday, with inflows of $10 million on the day.

As the market awaited the weekly report on the cash flows of the fund from Lipper US Fund Flows, the expectation was for weekly inflows of $115 million, the source said.

Flows had been mixed earlier in the month, mainly because of selling in the high-yield market causing some managers to have to raise cash.

In some cases, in order to achieve that managers had to relinquish higher quality assets such as bank loans, the trader said.

In Thursday's primary market SolarWinds Inc. disclosed price talk on its $1.93 billion first-lien term loan due February 2024.

Neustar Inc. set talk for a $1.23 billion credit facility in two term loan B tranches.

And PSAV increased its seven-year first-lien term loan to $1,105,000,000 from $1.03 billion and decreased its 7.5-year second-lien term loan to $210 million from $285 million, and tightened talk.

SolarWinds talk

SolarWinds Inc. disclosed price talk on its $1.93 billion first-lien term loan due February 2024 in connection with its launch on Thursday.

The first-lien term loan is talked at Libor plus 300 basis points to 325 bps with a 0% Libor floor and an original issue discount of 99.75, the source said.

Included in the first-lien term loan is 101 soft call protection for six months.

The company is also getting a $375 million second-lien term loan that was privately placed.

Commitments are due on March 5.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and Nomura are the lead banks on the deal.

Proceeds will be used to refinance existing credit facilities maturing 2023 that are priced at Libor plus 350 bps with a 1% Libor floor.

Neustar $1.23 billion loans

Neustar Inc. set talk for a $1.23 billion credit facility in two term loan B tranches with the launch via a lender call.

A $129 million term loan B-1 due Jan. 8, 2020 is talked at Libor plus 250 basis points to 275 bps with a 0% Libor floor and a par offer price.

The existing term loan B-1 is $258 million in size and carries a coupon of Libor plus 325 bps.

The facility also includes a $1,102,000,000 term loan B-2 due Aug. 8, 2024, which is talked at Libor plus 325 bps to 350 bps with a 0% Libor floor.

The price for new money is 99.75 and existing lenders will be rolled over at par.

The soft call protection will be reset at 101 for six months.

Neustar’s existing term loan B-2 is $973 million in size and pays interest at Libor plus 375 bps.

The term B-2 will be increased with $129 million of incremental borrowing.

Both existing loans have a 0% Libor floor and the maturities of the new loans match the existing loans.

As with the current facility, there will be no financial covenants.

Commitments are due March 1.

Bank of America Merrill Lynch is the arranger on the deal.

Aecom upsizes, firms pricing

Aecom Technology Corp. increased its seven-year term loan B to $600 million from $500 million and set pricing at Libor plus 175 basis points, the low end of the Libor plus 175 bps to 200 bps talk.

Additionally, the original issue discount on the term loan was revised to par from 99.75.

The term loan still has a 0% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Bank of America Merrill Lynch is the left lead arranger on the deal.

Proceeds will be used with new Canadian and Australian dollar term loans to refinance the company’s existing term loan A and 5¾% senior notes due 2022.

PSAV shifts proceeds, tightens talk

PSAV increased its seven-year first-lien term loan to $1,105,000,000 from $1.03 billion and decreased its 7.5-year second-lien term loan to $210 million from $285 million, according to a market source.

Additionally, pricing on the first-lien term loan (B2/B) was tightened to Libor plus 325 basis points from talk of Libor plus 350 bps to 375 bps, the source said.

The original issue discount was revised to 99.75 from 99.5 previously.

The first-lien term loan still has a 1% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Pricing on the second-lien term loan (Caa2/CCC+) was revised to Libor plus 725 bps from talk of Libor plus 750 bps to 775 bps.

The original issue discount was revised to 99.25 from 99 previously.

As before, the second-lien term loan has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two. It has no amortization.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc., KKR Capital Markets and Sumitomo Mitsui are the leads on the deal.

Recommitments were due Thursday.

Proceeds will be used to refinance an existing first-lien term loan and to fund a dividend.

Accudyne finalizes repricing

Accudyne Industries LLC finalized pricing on its $822,937,500 senior secured covenant-light term loan B due Aug. 18, 2024.

The deal came at par with an interest rate of Libor plus 325 basis points with a 25 bps step-down at 4.25 times total net leverage, atop a 1% Libor floor.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

Proceeds will be used to reprice an existing term loan down from Libor plus 375 bps with a 25 bps step-down at 4.25 times total net leverage and a 1% Libor floor.

Post talks $2.2 billion repricing

Post Holdings, Inc. launched a repricing of its $2.2 billion term loan B due May 24, 2024 on Thursday.

Talk is for a coupon of Libor plus 200 basis points with a 0% Libor floor, offered at par.

Soft call protection at 101 will be reset for six months.

Commitments are due by 12 p.m. ET on Feb. 28.

Barclays is left bookrunner with Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley and Wells Fargo also acting as bookrunners. Barclays is additionally administrative agent.

SIG Combibloc repricing launch

SIG Combibloc Group AG launched a repricing of its $1.2 billion term loan B due March 13, 2022 without a call on Thursday.

The repriced loan is talked at Libor plus 250 basis points to 275 bps with a 1% floor for Libor and a par offer price.

Soft call protection at 101 will be reset for six months.

Barclays is the left lead bookrunner and administrative agent and Nomura is also a bookrunner for the transaction.

Although there was no call for the repricing, the company was scheduled to hold an earnings conference call on Thursday.

Kraton repricing call Friday

Kraton Corp. said it plans to reprice the existing term loans under its senior secured term loan facility, extend the maturity by three years to March 2025 and increase borrowings under the euro-denominated tranche by about $100 million to $200 million.

The lender call is set for Friday.

J.P. Morgan, Deutsche Bank and Credit Suisse are joint lead arrangers and joint bookrunners for the financing.

Assystem to launch Tuesday

Assystem Technology Services will launch a €197.4 million add-on to its covenant-light term loan B due September 2024 at a bank meeting scheduled for Tuesday in London.

The add-on will be fungible with the existing €277 million term loan.

Pricing will be Euribor plus 475 basis points with a 0% Euribor floor and an original issue discount of 99.5.

Credit Agricole, HSBC, Natixis and Societe Generale are the joint bookrunners.

Proceeds will be used to finance the acquisition of SGS Group, to refinance some of SGS’ debt and to pay fees and expenses.

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