Nexstar breaks; Juice Plus+, Holley/Driven, Surgery Partners, Authentic Brands update deals

By Sara Rosenberg

New York, Oct. 18 – Nexstar Broadcasting Group Inc.’s term loan B made its way into the secondary market on Thursday and the debt was seen trading above its issue price.

Over in the primary market, Juice Plus+ (JP Intermediate II LLC) upsized its term loan, lowered the spread and modified the original issue discount, and Holley Performance Products/Driven Performance Brands (Holley Purchaser Inc.) lifted pricing, widened the issue price and extended the call protection on its funded term loan.

Also, Surgery Partners Inc. (Surgery Center Holdings Inc.) increased the size of its incremental term loan and firmed the issue price at the tight end of guidance, and Authentic Brands Group LLC (ABG Intermediate Holdings 2 LLC) set the issue price on its incremental first-lien term loan at the narrow side of talk.

Furthermore, First Eagle Holdings Inc., Walker & Dunlop Inc. and McAfee LLC revealed price talk with launch, and Gray Television Inc., Cabot Microelectronics Corp. and Concrete Pumping Holdings Inc. came out with timing on the launch of their term loans.

Nexstar hits secondary

Nexstar Broadcasting Group’s $1,657,000,000 covenant-light term loan B due Jan. 17, 2024 began trading on Thursday, with levels quoted at par ¼ bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 225 basis points with a 0% Libor floor, and the debt was issued at par. The loan has 101 soft call protection for six months.

During syndication, the issue price on the term loan firmed at the tight end of the 99.875 to par talk.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., Barclays and Wells Fargo Securities LLC are leading the deal.

The Irving, Texas-based diversified media company’s $2,676,000,000 of senior secured credit facilities (Ba3/BB+) also include an $853 million five-year term loan A and a $166 million five-year revolver, both priced at Libor plus 175 bps. The term loan A was issued at par.

Proceeds will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0% Libor floor and to partially pay down the existing term loan B from $1,807,000,000, to refinance a $703 million term loan A due January 2023 and to refinance a $166 million revolver due 2023.

Closing is expected on Oct. 26.

Juice Plus+ reworked

Switching to the primary market, Juice Plus+ lifted its seven-year first-lien term loan to $450 million from $438 million, cut pricing to Libor plus 550 bps from Libor plus 600 bps and revised the original issue discount to 99 from 98.5, a market source said.

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

The company’s now $500 million of credit facilities (B2/B+) also include a $50 million revolver.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund the buyout of the company by Altamont Capital.

Juice Plus+ is a Collierville, Tenn.-based provider of whole food based nutritional products.

Holley/Driven modified

Holley Performance/Driven Performance raised pricing on its $380 million seven-year first-lien term loan to Libor plus 500 bps from Libor plus 450 bps, changed the original issue discount to 99 from 99.5 and extended the 101 soft call protection to one year from six months, while leaving the 0% Libor floor intact, a market source remarked.

Additionally, the company detached the $20 million first-lien delayed-draw term loan from the funded term loan and the tranche is no longer offered for syndication, the source continued.

Furthermore, the MFN sunset and first-lien MFN adjustment exceptions were removed, asset sale sweep step-downs were removed, the 5% market capitalization provision for post-IPO dividends was eliminated, the unlimited junior debt prepayment provision was removed, a requirement for quarterly lender calls was added, and step-downs were added to the 8.5 times initial total gross leverage maintenance covenant, to 8 times total gross leverage in September 2021, 7.5 times total gross leverage in March 2024 and 7 times total gross leverage in March 2025.

Holley getting revolver

Along with the term loan debt, Holley/Driven’s $450 million of senior secured credit facilities (B2/B-) include a $50 million five-year revolver.

Allocations are targeted for Tuesday and closing is expected on Oct. 26, the source added.

UBS Investment Bank, SunTrust Robinson Humphrey Inc., MUFG and Cowen are leading the deal that will be used to fund the combination of Holley Performance Products and Driven Performance Brands by Sentinel Capital Partners.

Holley Performance Products is a Bowling Green, Ky.-based automotive performance company. Driven Performance Brands is a Santa Rosa, Calif.-based provider of automotive aftermarket products.

Surgery tweaked

Surgery Partners raised its incremental term loan due Aug. 31, 2024 to $180 million from $115 million and finalized the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

Like the existing term loan, the incremental loan is priced at Libor plus 325 bps with a step-down to Libor plus 300 bps at secured net leverage of 3.45 times and a 1% Libor floor.

Recommitments were due at noon ET on Thursday and allocations went out late in the day, another source added.

Jefferies LLC is leading the deal that will be used to fund an existing pipeline of potential transactions and replenish proceeds from previous acquisitions.

Surgery Partners is a Nashville-based healthcare services company.

Authentic Brands firms

Authentic Brands set the original issue discount on its $100 million incremental covenant-light first-lien term loan due Sept. 29, 2024 at 99.75, the tight side of the 99.5 to 99.75 talk, a market source said.

The incremental term loan is priced at Libor plus 350 bps with a 1% Libor floor, in line with the existing first-lien term loan, and has has 101 soft call protection for six months.

Bank of America Merrill Lynch, Barclays and KeyBanc Capital Markets are leading the deal that will be used to fund the acquisition of Vince Camuto, a footwear and accessories organization, in partnership with DSW Inc., a footwear and accessories retailer, for about $375 million, to provide liquidity for the potential purchase of home furnishings manufacturer and retailer’s Heritage Home Group’s Broyhill and Thomasville & Co. brands, and for other corporate purposes.

Authentic Brands is a New York-based acquirer and manager of consumer brands in the fashion, sports and celebrity/entertainment sectors.

First Eagle sets talk

In more primary happenings, First Eagle held its lender call on Thursday and announced talk on its $1.61 billion covenant-light term loan B due December 2024 at Libor plus 250 bps to 275 bps with no Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months, according to a market source.

The company’s $1.81 billion of senior secured credit facilities also include a $200 million revolver due December 2022.

Commitments are due at noon ET on Oct. 26, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt and for general corporate purposes.

First Eagle is a New York-based independent, privately held asset management firm.

Walker & Dunlop guidance

Walker & Dunlop launched with a morning bank meeting its $250 million seven-year term loan B (Ba2/BBB-) at talk of Libor plus 225 bps to 250 bps with a 0% 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 Nov. 1.

Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing term loan B and for general corporate purposes.

Walker & Dunlop is a Bethesda, Md.-based provider of commercial real estate financial services.

McAfee launches

McAfee came out with talk of Libor/Euribor plus 375 bps with a 0% floor, a par issue price and 101 soft call protection for six months on its $2,851,013,910 senior secured covenant-light term loan B (B1/B) due Sept. 29, 2024 and €650,802,180 senior secured covenant-light term loan B (B1/B) due Sept. 29, 2024 that launched with a morning call, a market source remarked.

Commitments/consents are due at 5 p.m. ET on Wednesday, the source added.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Investment Bank and Mizuho Bank are leading the deal that will be used to reprice existing U.S. and euro term loans.

McAfee is a Santa Clara, Calif.-based cybersecurity company.

Gray Television on deck

Gray Television scheduled a lender call for 2 p.m. ET on Monday to launch a $2.15 billion seven-year incremental covenant-light term loan B that has 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Oct. 30, the source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to help fund the acquisition of Raycom Media Inc. and refinance certain debt.

Raycom is being bought for $3,647,000,000 in total proceeds, consisting of $3,547,000,000 in enterprise value and $100 million of Raycom cash. The consideration will consist of $2.85 billion in cash, $650 million in a new series of preferred stock and 11.5 million shares of Gray common stock.

Closing is expected in the fourth quarter, subject to customary conditions and regulatory approvals.

Gray Television is an Atlanta-based television broadcast company. Raycom is a Montgomery, Ala.-based broadcaster and owner and operator of television stations.

Cabot timing surfaces

Cabot Microelectronics set a bank meeting for Monday to launch its previously announced $1,065,000,000 seven-year term loan B, according to a market source.

Also, talk on the term loan emerged at Libor plus 200 bps to 225 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, the source said.

The company’s $1,265,000,000 senior secured deal (Ba2/BB+) also includes a $200 million revolver.

Commitments are due at noon ET on Nov. 1, the source added.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal that will be used to help fund the acquisition of KMG Chemicals Inc. for $55.65 in cash and 0.2 of a share of Cabot Microelectronics common stock per share, for a transaction value of about $1.6 billion, and to refinance KMG’s existing debt.

Closing is subject to customary conditions, including HSR clearance and approval by KMG shareholders.

Cabot is an Aurora, Ill.-based supplier of chemical mechanical planarization polishing slurries and CMP pads to the semiconductor industry. KMG is a Fort Worth, Texas-based producer of specialty chemicals and performance materials for the semiconductor, industrial wood preservation, and pipeline and energy markets.

Concrete Pumping coming soon

Concrete Pumping will hold a bank meeting at 10 a.m. ET in New York on Monday to launch a $350 million seven-year covenant-light first-lien term loan that has 0% Libor floor and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Nov. 2, the source added.

Credit Suisse Securities (USA) LLC, Jefferies LLC and Stifel are leading the deal that will be used to help fund the acquisition of the company by Industrea Acquisition Corp. from majority shareholder Peninsula Pacific, select members of management and former manager shareholders.

In addition to the term loan, the company is getting a $60 million ABL revolver led by Wells Fargo.

Closing is expected in the fourth quarter.

Concrete Pumping is a concrete pumping services and concrete environmental waste management solutions provider.

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