XPO, Prospect, Lineage, Equian, Kofax, DuPage, Liquidnet, Lamar, Masergy and more break

By Sara Rosenberg

New York, Feb. 16 – A number of deals made their way into the secondary market on Friday, including XPO Logistics Inc., Prospect Medical Holdings Inc., Lineage Logistics LLC, Equian LLC, Kofax (Project Leopard Holdings), DuPage Medical Group and Liquidnet Holdings Inc.

Also, Lamar Media Corp. set the original issue discount on its term loan B at the middle of revised talk, Masergy Communications Inc. firmed its first-lien debt at the low end of talk and changed the Libor floor, Hargray Communications Group Inc. changed the issue price and ticking fee on its incremental term loan, and Clarion Events widened the spread and issue price on its incremental term loan B, and then these deals freed up for trading too.

In addition, OCI Beaumont (OCI Partners LP) increased the size of its term loan B, firmed the spread at the low end of guidance, added a step-down, tightened the original issue discount and sweetened the call premium, and On Assignment Inc. modified the issue price on its incremental term loan B.

Furthermore, SS&C Technologies Holdings Inc. released price talk on its term loan with its bank meeting, and Omnova Solutions Inc. and Solera Holdings Inc. emerged with new deal plans.

XPO starts trading

XPO Logistics’ $1,503,000,000 seven-year term loan B (Ba1/BB+) freed to trade on Friday, with levels quoted at par ¼ bid, par 5/8 offered, according to a market source.

The term loan is priced at Libor plus 200 basis points with a 0% Libor floor and was issued at par. The tranche includes 101 soft call protection for six months.

On Thursday, the issue price on the loan was changed from 99.75 and certain revision were made to fixed dollar covenant baskets.

Citigroup Global Markets Inc. is the lead arranger on the deal that will be used to refinance existing term loan borrowings. Morgan Stanley Senior Funding Inc. is the administrative agent.

Closing is expected on Feb. 23.

XPO Logistics is a Greenwich, Conn.-based provider of supply chain solutions.

Prospect Medical levels surface

Prospect Medical’s $1.1 billion six-year covenant-light first-lien term loan B began trading, with levels quoted at 99¼ bid, par ¼ offered, a market source said.

Pricing on the term loan is Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for 18 months.

During syndication, the first-lien term loan was upsized from $1.05 billion, the spread was increased from talk in the range of Libor plus 500 bps to 525 bps, the discount was modified from 99 and the call protection was extended from six months. Also, the company eliminated plans for a $200 million seven-year second-lien term loan that was talked at Libor plus 900 bps to 925 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt, reduce the underfunded pension liability and fund a dividend to shareholders.

Prospect Medical is a Los Angeles-based provider of health care and physician services.

Lineage tops issue price

Lineage Logistics’ $550 million seven-year covenant-light first-lien term loan broke for trading and levels were seen at par 1/8 bid, par ½ offered, a trader remarked.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Thursday, the term loan was upsized from $500 million and the issue price was moved from 99.5.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing debt.

Lineage Logistics is an Irvine, Calif.-based cold storage warehousing and logistics company.

Equian frees up

Equian’s fungible $315 million incremental covenant-light term loan B (B2/B) due May 19, 2024 and repriced $422,875,000 covenant-light term loan B (B2/B) due May 19, 2024 emerged in the secondary market in the afternoon, with levels quoted at par ¼ bid, par ¾ offered, a trader said.

The term debt is priced at Libor plus 325 bps with a 1% Libor floor and has 101 soft call protection for six months. The incremental loan was sold at an original issue discount of 99.75 and the repricing was issued at par.

During syndication, pricing on the debt firmed at the low end of the Libor plus 325 bps to 350 bps talk, and, prior to that, the spread on the incremental loan was lowered from Libor plus 375 bps and the repricing was added to the transaction.

Morgan Stanley Senior Funding Inc., Barclays and Deutsche Bank Securities Inc. are leading the deal.

Proceeds from the incremental loan will be used to fund the acquisition of OmniClaim, and the repricing will take the existing term loan down from Libor plus 375 bps with a 1% Libor floor.

Closing is expected during the week of Feb. 19.

Equian is an Indianapolis-based payment integrity platform.

Kofax hits secondary

Kofax’s $559 million covenant-light first-lien term loan due July 2023 also began trading, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Thursday, pricing on the loan was reduced from talk in the range of Libor plus 425 bps to 450 bps.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used to reprice an existing term loan down from Libor plus 550 bps with a 1% Libor floor.

Kofax is an Irvine, Calif.-based provider of software solutions and services across multi-channel capture and financial process automation markets.

DuPage breaks

DuPage Medical Group’s $469 million covenant-light first-lien term loan (B1/B) due August 2024 freed up, with levels seen at par 1/8 bid, par 5/8 offered, a market source remarked.

The loan is priced at Libor plus 275 bps with a 0.75% Libor floor and was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 0.75% Libor floor.

DuPage is a Downers Grove, Ill.-based multi-specialty physician group.

Liquidnet above par

Liquidnet’s $195 million senior secured first-lien term loan (B1/B+) due May 2024 broke as well and the debt was quoted at par ¼ bid, a market source said.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Liquidnet is a New York-based regulated agency securities broker.

Lamar firms, tops OID

Lamar Media finalized the original issue discount on its $600 million term loan B (BBB-) at 99.875, the middle of revised talk of 99.75 to par and tight of initial talk in the range of 99.5 to 99.75, according to a market source.

The loan is still priced at Libor plus 175 bps with a 0% Libor floor and has 101 soft call protection for six months.

On Thursday, the term loan was upsized from $400 million and pricing was cut from Libor plus 200 bps.

With terms firmed up, the loan made its way into the secondary market and levels were seen at par 5/8 bid, 101 offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt.

Lamar Media is a Baton Rouge, La.-based outdoor advertising company.

Masergy revised, frees up

Masergy Communications set pricing on its fungible $25 million add-on first-lien term loan (B2/B) and repriced $344 million (B2/B) senior secured first-lien term loan at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, and changed the Libor floor to 1% from 0%, a market source said.

The first-lien term loan debt still has a par issue price and 101 soft call protection for six months.

After terms finalized, the first-lien debt broke for trading, with levels quoted at par 1/8 bid, par 3/8 offered, the source added.

Jefferies LLC and Antares Capital are the leads on the deal.

The add-on loan will be used to repay $20 million of the second-lien term loan to bring the balance to $120 million from $140 million currently and for fees, expenses and accrued interest in connection with the transaction, and the first-lien term loan repricing will take the existing loan down from Libor plus 375 bps with a 1% Libor floor.

Masergy is a Plano, Texas-based provider of hybrid networking, managed security and cloud communications solutions.

Hargray tweaked, trades

Hargray Communications Group tightened the issue price on its fungible $60 million incremental covenant-light first-lien term loan B due May 2024 to par from 99.75, and revised the ticking fee to half the margin from days 46 to 90 and the full margin thereafter, from half the margin from days 31 to 90 and the full margin thereafter, according to a market source.

The incremental loan is priced at Libor plus 300 bps with a 25 bps step-down at 4.75 times first-lien leverage and a 1% Libor floor, which matches existing term loan pricing.

Commitments were due at noon ET on Friday and then the loan started trading, with levels quoted at par ¼ bid, par 3/ 4 offered, a trader added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a tuck-in acquisition.

Hargray is a Hilton Head Island, S.C.-based broadband communications and entertainment provider.

Clarion flexes, breaks

Clarion Events raised pricing on its $190 million incremental covenant-light term loan B due October 2024 to Libor plus 500 bps from Libor plus 450 bps and moved the original issue discount to 98 from talk in the range of 99 to 99.5, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at 10:30 a.m. ET on Friday and then the loan freed up with levels quoted at 98½ bid, 99 offered, another source added.

HSBC Securities (USA) Inc., Natixis, Societe Generale, NatWest Markets and Barclays are leading the deal that will be used to refinance debt at Global Sources and fund a dividend to shareholders in connection with the merger of Clarion Events and Global Sources. Both companies are already owned by Blackstone.

Clarion Events is a London-based events organizer. Global Sources is a Hong-Kong based business-to-business media company.

OCI reworked

In more happenings, OCI Beaumont lifted its seven-year term loan B to $455 million from $400 million, finalized pricing at Libor plus 425 bps, the tight end of the Libor plus 425 bps to 450 bps talk, added a step-down to Libor plus 400 bps at 2.75 times total net leverage, changed the original issue discount to 99.875 from 99.5 and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan includes 50 bps MFN for life.

As before, the term loan has a 0% Libor floor.

Commitments were due at noon ET on Friday, the source said.

Bank of America Merrill Lynch is the left lead on the deal that will be used to refinance the company’s existing term loan B, to repay revolver borrowings and, due to the upsizing, to repay in full, instead of in part, an outstanding subordinated related party term loan.

OCI Beaumont is a Nederland, Texas-based integrated methanol and ammonia facility.

On Assignment updated

On Assignment adjusted the issue price on its $822 million seven-year incremental covenant-light term loan B (Ba2/BB) to par from 99.75, according to a market source.

The incremental loan is still priced at Libor plus 200 bps with a 0% Libor floor and has 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the deal that will be used to help fund the acquisition of ECS Federal LLC from Roy Kapani, the company’s majority owner and founder, and Lindsay Goldberg for $775 million in cash.

As before, the company is seeking an amendment to its existing $578 million term loan B due June 5, 2022 that is priced at Libor plus 200 bps with a 0% Libor floor in order to allow for the transaction, and existing lenders are being offered a 7.5 bps amendment fee and 101 soft call protection for six months on the existing term loan B.

Commitments/consents continue to be at 5 p.m. ET on Tuesday, the source said.

Closing is expected on April 2, subject to regulatory approvals and customary conditions at which time the company plans to change its name to ASGN Inc.

On Assignment is a Calabasas, Calif.-based provider of IT and professional services in the technology, creative/digital, engineering and life sciences sectors. ECS is a Fairfax, Va.-based provider of cyber security, cloud, DevOps, IT modernization and advanced science and engineering solutions to government enterprises.

SS&C reveals guidance

SS&C Technologies held its bank meeting in the morning, launching its $5.63 billion seven-year covenant-light first-lien term loan (Ba3/BB) at talk of Libor plus 250 bps to 275 bps with no Libor floor and an original issue discount of 99.5, a market source said.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on March 1, the source added.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays and JPMorgan Chase Bank are leading the deal that will be used to help fund the acquisition of DST Systems Inc. for $84 per share plus assumption of debt, equating to an enterprise value of about $5.4 billion.

Closing is expected by the third quarter, subject to DST’s stockholder approval, clearances by the relevant regulatory authorities and other customary conditions.

SS&C is a Windsor Conn.-based provider of financial services software and software-enabled services. DST is a Kansas City, Mo.-based provider of proprietary technology-based information processing and servicing solutions.

Omnova on deck

Omnova Solutions scheduled a lender call for 2 p.m. ET on Tuesday to launch a $306 million term loan B (B1/B) due August 2023 talked at Libor plus 325 bps with a 0% 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 Feb. 26, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 425 bps with a 1% Libor floor.

Omnova is a Beachwood, Ohio-based innovator of performance-enhancing chemistries and surfaces for commercial, industrial and residential end uses.

Solera joins calendar

Solera Holdings will hold a lender call at 10 a.m. ET on Tuesday to launch a new loan deal, according to a market source.

Nomura, Jefferies LLC, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the transaction.

Solera is a Westlake, Texas-based provider of risk and asset management software services to the automotive and property marketplace.

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