Electro, Microsemi, Rovi, Service King, Avaya break; Grifols, Vistra, TransUnion revised

By Sara Rosenberg

New York, Jan. 23 – Electro Rent Corp. lifted pricing on its first-lien term loan, widened the original issue discount and extended the call protection, and Microsemi Corp. upsized its term loan B and finalized pricing at the tight end of guidance, and then both deals made their way into the secondary market, and Rovi Solutions Corp., Service King Collision Repair Centers and Avaya Inc. freed up too.

In more happenings, Grifols trimmed the spread on its term loan B, and Vistra Operations Co. LLC tightened the issue price on its term loan B and term loan C repricing.

Also, TransUnion LLC removed the Libor floor from its term loan B-2 and set the issue price at the tight side of talk, and Atotech BV and Caliber Collision accelerated the commitment deadlines on their credit facilities.

In addition, SolarWinds Inc., Zekelman Industries, ProQuest LLC, Gray Television Inc., Pinnacle Foods Finance LLC, Polycom Inc. and PrimeSource Building Products (PriSo Acquisition Corp.) released price talk with launch.

Furthermore, Apple Leisure Group, Tradesmen International Inc., Limetree Bay Terminals LLC, iStar Inc., RadNet Management Inc., Homer City Generation LP and UFC Holdings LLC joined this week’s primary calendar.

Electro Rent reworked

Electro Rent raised pricing on its $475 million seven-year covenant-light first-lien term loan (B3/B) to Libor plus 500 basis points from the Libor plus 475 bps area, moved the original issue discount to 98.5 from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

Also, the unlimited accordion first-lien net leverage ratio was reduced by 0.25 times to 3.05 times, the fixed charge coverage ratio test for unlimited accordion usage was removed, the 12-month MFN sunset was eliminated so that there is 50 bps MFN for life, and the usage of the available amount basket was changed to be subject to 3.55 times total net leverage from 3.8 times for acquisitions and dividends and 4 times for investments, the source said.

The term loan still has a 1% Libor floor.

Commitments were due at 11 a.m. ET on Monday.

Electro Rent tops OID

In the afternoon, Electro Rent’s first-lien term loan broke for trading and levels were quoted at 99¾ bid, par ¾ offered, a trader added.

Deutsche Bank Securities Inc., Barclays, BMO Capital Markets Corp. and Goldman Sachs Bank USA are leading the company’s $635 million credit facility, which also includes an $85 million revolver (B3/B) and a privately placed $75 million second-lien term loan (Caa2/B-).

Proceeds will be used to help fund the acquisition of Microlease from Lloyds Development Capital.

Closing is expected this quarter.

Platinum Equity is the sponsor.

Electro Rent is a Van Nuys, Calif.-based provider of specialty testing and measurement equipment services. Microlease is a London-based equipment services and distribution provider to the test and measurement industry.

Microsemi revised trades

Microsemi raised its senior secured covenant-light term loan B due Jan. 15, 2023 to $909.7 million from $674.7 million and firmed pricing at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, a market source said.

The term loan still has no Libor floor, a par issue price and 101 soft call protection for six months.

Recommitments were due at 2:30 p.m. ET on Monday, and then the loan hit the secondary market, with levels quoted at par ¼ bid, par ¾ offered, a trader remarked.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing $674.7 million term loan B down from Libor plus 300 bps with a 0.75% Libor floor, and, due to the upsizing, to pay down revolver borrowings, the source added.

Closing is expected on Wednesday.

Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor solutions.

Rovi hits secondary

Rovi’s $682.5 million senior secured term loan B (Ba2/BB+) due July 2, 2021 freed to trade as well, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 250 bps with a 0.75% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B.

Closing is expected on Thursday.

Rovi is a Santa Clara, Calif.-based technology company that became a wholly-owned subsidiary of TiVo Corp. in conjunction with the September 2016 transaction.

Service King frees up

Service King’s $609 million term loan B hit the secondary market too, with levels seen at par ½ bid, 101 offered, according to a trader.

Pricing on the loan is Libor plus 275 bps, after firming during syndication at the low end of the Libor plus 275 bps to 300 bps talk. The loan has a 1% Libor floor and 101 soft call protection for six months and was issued at par.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Service King is a Dallas-based operator of a chain of automobile body repair centers.

Avaya starts trading

Avaya’s $725 million 12-month debtor-in-possession term loan also broke for trading, with one trader quoting the loan at 102 5/8 bid, 103 3/8 offered and a second trader quoting it at 102 7/8 bid, 103 7/8 offered.

The DIP, which has $425 million in interim availability, is priced at Libor plus 750 bps with a 1% Libor floor, and was sold at an original issue discount of 99.

Citigroup Global Markets Inc. is the agent on the deal that will be used to repay borrowings under the company’s pre-petition ABL facilities, cash collateralize letters of credit and incremental liquidity needs.

Avaya is a Santa Clara, Calif.-based provider of business collaboration and communications services. The Chapter 11 case number is 17-10089.

SunGard wraps 101

SunGard Public Sector’s $290 million covenant-light first-lien term loan was quoted at par ½ bid, 101½ offered, pretty much in line with where it broke for trading on Friday, a trader remarked.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The company’s $450 million credit facility also includes a $40 million revolver and a $120 million covenant-light second-lien term loan priced at Libor plus 850 bps with a 1% Libor floor. The second-lien loan was issued at a discount of 99 and has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $275 million, pricing was lowered from talk of Libor plus 450 bps to 475 bps, and the discount was changed from 99, the second-lien term loan spread was cut from Libor plus 875 bps and the discount tightened from 98.5, and the MFN sunset provision was eliminated.

SunGard funding buyout

Proceeds from SunGard Public Sector’s credit facility will be used to help fund its acquisition by Vista Equity Partners from Fidelity National Information Services.

As a result of the recent first-lien term loan upsizing, the equity for the transaction was reduced by $9 million, and balance sheet cash was increased by $6 million.

Antares Capital and Golub Capital are leading the debt.

SunGard Public Sector is a Lake Mary, Fla.-based provider of mission-critical software solutions that serve the needs of public administration and public safety officials.

Grifols flexes lower

Back in the primary market, Grifols cut pricing on its $3 billion eight-year term loan B to Libor plus 225 bps from Libor plus 250 and removed the 18-month MFN sunset, a market source remarked.

The term loan B still has no Libor floor, a discount of 99.75 and 101 soft call protection for six months.

Commitments were due at noon ET on Monday, and allocations are expected on Tuesday, the source said.

The company’s $6.3 billion credit facility (Ba2) also includes a $300 million six-year revolver and a $3 billion six-year term loan A, both talked at Libor plus 150 bps to 175 bps. A $650 million euro-equivalent carve-out was added to the term loan A, the source added.

Nomura, Bank of America Merrill Lynch, Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are leading the deal, with Nomura left on the term loan B and Bank of America left on the revolver and term loan A.

Proceeds will be used with cash on the balance sheet to fund the acquisition of the Nucleic Acid Testing donor screening unit from Hologic for $1.85 billion and to refinance existing debt.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Grifols is a Sant Cugat del Valles, Barcelona-based health care company.

Vistra tweaks deal

Vistra Operations modified the issue price on the repricing of its $2.85 billion covenant-light term loan B due August 2023 and $650 million covenant-light term loan C due August 2023 to par from 99.875, according to a market source.

The term loans are still priced at Libor plus 275 bps with a 0.75% Libor floor and include 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Monday, the source said.

Deutsche Bank Securities Inc. is leading the deal that will reprice the term loan B and the term loan C down from Libor plus 400 bps with a 1% Libor floor.

Vistra, formerly known as Texas Competitive Electric Holdings Co. LLC, is a Dallas-based power generator and retail electric provider.

TransUnion updated

TransUnion eliminated the 0.75% Libor floor from its $1.9 billion covenant-light term loan B-2 (B1/BB-) due April 2023 and finalized the issue price at par, the tight end of the 99.875 to par talk, a market source remarked.

As before, the term loan B-2 is priced at Libor plus 250 bps and has 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B-2 from Libor plus 275 bps with a 0.75% Libor floor, remove the existing pricing grid, and extend the maturity from April 2021.

TransUnion is a Chicago-based provider of information management and risk management services.

Atotech moves deadline

Atotech accelerated the commitment deadline on its $1.65 billion credit facility (B+) to 5 p.m. ET on Monday from noon ET on Wednesday, a market source said.

The facility consists of a $250 million five-year revolver and a $1.4 billion seven-year covenant-light senior secured term loan B, inclusive of up to $500 million which at the option of the company and with the approval of Bank of China may be redenominated in RMB.

Talk on the term loan B is Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Barclays, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Nomura, RBC Capital Markets LLC and Bank of China are leading the deal.

Atotech being acquired

Proceeds from Atotech’s credit facility will be used with equity and senior notes to fund the company’s buyout by the Carlyle Group from Total for $3.2 billion and to refinance existing debt.

Net secured leverage is 4.4 times and net total leverage is 5.8 times.

Closing is subject to approval by the relevant antitrust authorities.

Atotech is a manufacturer of specialty plating chemicals and equipment.

Caliber shutting early

Caliber Collision moved up the commitment deadline on its $1,165,000,000 credit facility to 5 p.m. ET on Wednesday from noon ET on Friday, according to a market source.

The facility consists of a $115 million revolver (B1/B+), a $750 million seven-year first-lien term loan (B1/B+), a $50 million delayed-draw seven-year first-lien term loan (B1/B+) and a $250 million eight-year second-lien term loan (Caa1/CCC+).

Talk on the first-lien term loan debt is Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, RBC Capital Markets, SunTrust Robinson Humphrey Inc., Golub Capital and Antares Capital are leading the deal that will be used to refinance existing debt, to fund a dividend and for general corporate purposes.

Caliber Collision is a Lewisville, Texas-based operator of automotive collision repair centers.

SolarWinds reveals talk

Also in the primary market, SolarWinds held its lender call, launching its $1,692,000,000 first-lien term loan due Feb. 5, 2023 at talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at the close of business on Thursday, the source said.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

SolarWinds is an Austin, Texas-based provider of IT network and systems infrastructure management software.

Zekelman details emerge

Zekelman Industries revealed with its lender call that it is seeking a $100 million incremental term loan B due June 14, 2021 and a repricing of its existing $821 million term loan B due June 14, 2021, talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Goldman Sachs Bank USA is leading the deal.

The incremental loan will be used for mergers and acquisitions and general corporate purposes, and the repricing will take the existing term loan down from Libor plus 500 bps with a 1% Libor floor.

Closing is targeted for mid-February.

Zekelman Industries, formerly known as JMC Steel, is a Chicago-based manufacturer of industrial steel pipe and tubular products.

ProQuest guidance

ProQuest came out with talk of Libor plus 425 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $713 million term loan B due Oct. 24, 2021 that launched with a call during the session, a source said.

Commitments are due at the close of business on Thursday, the source added.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will reprice the existing term loan down from Libor plus 475 bps with a 1% Libor floor.

ProQuest is an Ann Arbor, Mich.-based provider of digital content and Software as a Service solutions primarily for the academic community.

Gray discloses terms

Gray Television held its lender call, launching its extended $556.4 million term loan due February 2024 at talk of Libor plus 250 bps with no Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due on Feb. 1, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to extend and reprice an existing term loan due June 2021 that is currently priced at Libor plus 318.75 bps with a 0.75% Libor floor.

With the term loan transaction, the company is looking to extend its revolver to February 2022 from July 2020 and increase the size to $100 million from $60 million.

Gray Television is an Atlanta-based television broadcast company.

Pinnacle Foods refinancing

Pinnacle Foods held a lender call to launch a $2,462,000,000 credit facility (BB+) that will be used with about $220 million of cash from the balance sheet to refinance an existing $150 million revolver, a $1.41 billion term loan G, a $508 million term loan H and a $545 million term loan I, according to a market source.

The proposed facility consists of a $200 million revolver due 2022, and a $2,262,000,000 term loan due 2024 talked at Libor plus 225 bps with no Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source said.

Consents/commitments are due at noon ET on Friday.

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal.

Senior secured leverage is 3.2 times and total leverage is 4.3 times.

Closing is expected on Feb. 3.

Pinnacle Foods is a Parsippany, N.J.-based manufacturer, marketer and distributor of food products.

Polycom launches

Polycom announced plans to hold a lender call at 3 p.m. ET to launch a repricing of its $725 million first-lien term loan that is talked at Libor plus 500 bps to 525 bps with a 1% Libor floor, a par issue price and 101 soft call protection through September, according to a market source.

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

RBC Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will reprice the existing term loan down from Libor plus 650 bps with a 1% Libor floor.

Polycom is a San Jose, Calif.-based provider of secure video, voice and content solutions.

PrimeSource holds call

PrimeSource Building Products emerged in the morning with plans to host a lender call at 1 p.m. ET to launch a repricing of its $426 million term loan due May 2022 at talk of Libor plus 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

Deutsche Bank Securities Inc. is leading the deal that will reprice the existing term loan down from Libor plus 350 bps with a 1% Libor floor.

PrimeSource is a Dallas-based two-step building products distributor.

Apple sets meeting

Apple Leisure Group scheduled a bank meeting for 3 p.m. ET in New York on Tuesday to launch a $950 million credit facility, according to a market source.

The facility consists of a $125 million revolver, a $600 million seven-year covenant-light first-lien term loan and a $225 million eight-year covenant-light second-lien term loan, the source said.

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

Commitments are due at 5 p.m. ET on Feb. 7, the source added.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by KKR and KSL Capital Partners from Bain Capital Private Equity.

Closing is expected this quarter, subject to customary regulatory approvals.

Apple Leisure is a Philadelphia-based hospitality company.

Tradesmen joins calendar

Tradesmen International will hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch $310 million in term loans, according to a market source.

The debt consists of a $230 million seven-year first-lien term loan and an $80 million eight-year second-lien term loan, the source said.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Blackstone from Wellspring Capital Management LLC.

Closing is expected this quarter.

Tradesmen is a Macedonia, Ohio-based agency-based provider of outsourced skilled craftsmen to non-residential construction and industrial contractors.

Limetree deal surfaces

Limetree Bay Terminals set a bank meeting for 10:30 a.m. ET on Wednesday to launch a $440 million first-lien senior secured term loan, a market source said.

Barclays and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund future growth capital expenditure needs, pay related fees and expenses and provide a distribution to the sponsor, ArcLight Capital Partners.

Limetree Bay is a Christiansted, Virgin Islands-based owner of the oil terminal at Limetree Bay, St. Croix, U.S. Virgin Islands.

iStar readies loan

iStar scheduled a call for 10 a.m. ET on Tuesday to launch a $450 million senior secured term loan talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

J.P. Morgan Securities LLC, Barclays and Bank of America Merrill Lynch are leading the deal.

Proceeds will be used to help refinance an existing $497 million senior secured term loan priced at Libor plus 450 bps with a 1% Libor floor.

iStar is a New York-based investor and developer of real estate and real estate related projects.

RadNet plans repricing

RadNet Management will hold a lender call at noon ET on Tuesday to launch a repricing of its existing $479 million term loan B due June 30, 2023 from Libor plus 375 bps with a 1% Libor floor, a source said.

Barclays is leading the deal.

RadNet is a Los Angeles-based owner and operator of outpatient diagnostic imaging centers.

Homer City on deck

Homer City Generation set a lenders’ call for 2 p.m. ET on Wednesday to launch a $150 million senior secured term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. is leading the loan that will be used to fund a cash collateralized letter of credit account or to directly collateralize obligations, to collateralize hedging obligations, to fund the debt service reserve account, to pay associated fees and expenses, and for general corporate purposes.

Homer City Generation is an Indiana, Pa.-based operator of coal-fired electric generating units.

UFC coming soon

UFC Holdings scheduled a lender call for 11:30 a.m. ET on Tuesday to launch a repricing of its first-lien term loan, according to a market source.

KKR Capital Markets LLC is leading the deal.

The $1,375,000,000 first-lien term loan closed last year at Libor plus 400 bps with a 1% Libor floor.

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

Shoes for Crews wraps

In other news, Shoes for Crews completed syndication of its fungible $25 million add-on first-lien term loan at an original issue discount of 99.5, in line with talk, a source remarked.

The add-on loan is priced at Libor plus 500 bps with a 1% Libor floor.

Antares Capital is leading the deal that allocated last week.

Proceeds will be used to fund the acquisition of the SureGrip Footwear subsidiary of Genesco.

Shoes for Crews is a West Palm Beach, Fla.-based supplier of slip-resistant footwear for the workplace. SureGrip is a marketer of occupational, slip-resistant footwear for the hospitality, grocery, foodservice, health care and industrial markets.

Solera done at terms

Solera Holdings Inc. wrapped syndication of its fungible $300 million incremental term loan B due March 2023 (Ba3/B) at initial talk of Libor plus 475 bps with a 1% Libor floor, a par issue price and 101 soft call protection until March, according to a market source.

Nomura Securities Co., Ltd., Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that allocated late Friday.

Proceeds will be used to fund the acquisition of Autodata from Bowmark Capital and Rothschild & Co.’s Five Arrows Principal Investments.

Solera is a Westlake, Texas-based provider of software and services to the automobile insurance claims processing industry. Autodata is a U.K.-based provider of technical information and knowledge solutions for the automotive service, maintenance and repair industry.

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