Vistra Group frees to trade above OID; CHG Healthcare, MHS Holdings deal updates emerge

By Sara Rosenberg

New York, May 8 – Vistra Group’s first-lien term loan surfaced in the secondary market on Tuesday, and the debt was seen trading above its original issue discount.

Switching to the primary market, CHG Healthcare Services Inc. modified the issue price on its add-on first-lien term loan, and MHS Holdings Inc. widened the spread on its add-on term loan B and repricing of its existing term loan B.

Also, Covia Holdings Corp., SRS Distribution Inc., ION Trading Finance Ltd., LifeScan Global Corp., Miller’s Ale House Inc., Trinseo SA, Everi Payments and Securus Technologies Holdings Inc. released price talk with launch.

Additionally, Insight Global (IG Investments Holdings LLC), Interior Logic Group Holdings IV LLC, Playa Hotels & Resorts NV and BroadStreet Partners Inc. joined this week’s primary calendar.

Vistra hits secondary

Vistra Group’s roughly $575 million senior secured first-lien term loan (B2/B) due October 2022 began trading on Tuesday, with levels quoted at par bid, par ¾ offered, according to a market source.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor and it was sold at an original issue discount of 99.875. The loan has 101 soft call protection for six months.

On Monday, the discount on the term loan was tightened from 99.75.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Nomura are leading the deal that will be used to refinance an existing $285.9 million first-lien term loan priced at Libor plus 325 bps with a 1% Libor floor, to fund an acquisition and for general corporate purposes.

Closing is expected during the week of May 21.

Baring Private Equity is the sponsor.

Vistra Group is a provider of company formations, trust, corporate and fund administration services.

CHG tweaks loan

Over in the primary market, CHG Healthcare changed the issue price on its fungible $270 million add-on covenant-light first-lien term loan due June 2023 to par from 99.75, according to a market source.

As before, pricing on the add-on term loan is Libor plus 300 bps with a 1% Libor floor, in line with existing term loan pricing, and all of the first-lien term loan debt is getting 101 soft call protection for six months.

Jefferies LLC, Goldman Sachs Bank USA, Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to repay second-lien notes.

In connection with this transaction, the company is looking to amend its existing credit agreement to allow incremental ratio debt up to 5.5 times and to permit the repayment of the notes.

Commitments/consents were due at 2 p.m. ET on Tuesday, moved up from noon ET on Wednesday, the source added.

The first-lien term loan will total $1,577,200,000 including the add-on amount.

CHG is a Salt Lake City-based health care staffing firm.

MHS ups spread

MHS Holdings lifted pricing on its fungible $200 million add-on term loan B (B2/B) and repricing of its existing $263 million term loan B (B2/B) to Libor plus 425 bps from Libor plus 375 bps, a market source said.

The term loan debt still has a 1% Libor floor and 101 soft call protection for six months, the add-on term loan is still talked with an original issue discount of 99.75 and the repricing is still offered at par.

Commitments are due at 5 p.m. ET on Wednesday, pushed out from 5 p.m. ET on Tuesday, the source added.

RBC Capital Markets is the left lead on the deal.

The add-on term loan will be used to fund a dividend and the repricing will take the existing loan down from Libor plus 500 bps with a 1% Libor floor.

MHS, a Thomas H. Lee Partners LP portfolio company, is a Louisville, Ky.-based provider of e-commerce infrastructure.

Covia discloses guidance

Covia Holdings held its bank meeting on Tuesday, launching its $1.65 billion seven-year covenant-light first-lien term loan at talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The term loan has a step-up in pricing to Libor plus 400 bps at 2.5 times net leverage and step-downs to Libor plus 350 bps at 1.5 times net leverage to less than 2 times net leverage and Libor plus 325 bps at less than 1.5 times net leverage, the source said.

The company’s $1.85 billion of credit facilities (Ba3/BB) also include a $200 million five-year revolver.

Commitments are due at noon ET on May 17, the source added.

Barclays and BNP Paribas Securities Corp. are leading the deal. Barclays is the administrative agent.

Covia funding merger

Proceeds from Covia’s credit facilities will be used help fund its creation through the merger of Unimin Corp. with Fairmount Santrol, to refinance some existing debt at both companies and for general corporate purposes.

As part of the merger, Fairmount shareholders, including equity award holders, will receive $170 million in cash, or about $0.74 per share based on Fairmount’s current diluted share count, and will own 35% of the combined company.

Net leverage is 2.9 times based on LTM first quarter 2018 pro forma adjusted EBITDA and 2.3 times post synergies.

Closing is expected in late May/early June, subject to the approval of Fairmount shareholders, the receipt of regulatory approvals and the satisfaction of other customary conditions.

Unimin is a New Canaan, Conn.-based application-focused minerals company. Fairmount Santrol is a Chesterfield, Ohio-based provider of high-performance sand and sand-based product solutions used by oil and gas exploration and production companies to enhance the productivity of their wells.

SRS launches

SRS Distribution launched at its morning bank meeting its $1.3 billion seven-year covenant-light term loan B at talk of Libor plus 325 bps to 350 bps with a 25 bps step-down at 0.5 times inside closing net first-lien leverage, a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on May 17, the source added.

The company’s $1.7 billion of credit facilities also include a $400 million ABL revolver.

Bank of America Merrill Lynch, Barclays, UBS Investment Bank, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Nomura and RBC Capital Markets are leading the deal that will be used with $380 million of unsecured notes to help fund the buyout of the company by Leonard Green & Partners LP from Berkshire Partners.

With the transaction, Berkshire Partners and members of management will be rolling part of their equity investment in SRS.

SRS Distribution is a McKinney, Texas-based roofing products distributor.

ION price guidance

ION Trading Finance held its New York bank meeting during the session and revealed talk on its $2.1 billion equivalent U.S. and euro senior secured incremental covenant-light first-lien term loan, according to a market source. A bank meeting for European investors will take place in London on Thursday.

Talk on the U.S. loan is Libor plus 375 bps to 400 bps and talk on the euro loan is Euribor plus 350 bps, the source said. Both tranches are talked with a 1% floor, a discount of 99.5 and 101 soft call protection for six months.

Commitments are due on May 23, the source added.

UBS Investment Bank is leading the deal that will be used to help fund the acquisition of Fidessa Group plc for £38.703 per share. The transaction is valued at about £1.5 billion.

In addition to the term loan, the company has received a commitment for a €20 million incremental rev olver, and ION Investment Corp. Sarl has received a commitment for a $200 million 180-day senior unsecured bridge loan that is not expected to be sold.

ION Trading is a software provider of trading, treasury and workflow solutions. Fidessa is provider of trading, investment and information solutions for the financial community.

LifeScan holds meeting

LifeScan announced price talk on its $1.4 billion seven-year covenant-light first-lien term loan (B1/B+) and $350 million eight-year covenant-light second-lien term loan (Caa1/B) in connection with its afternoon bank meeting, a market source said.

Talk on the first-lien term loan is Libor plus 450 bps with a 0% 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 850 bps with a 0% Libor floor, a discount of 98.5 to 99 and hard call protection of 103 in year one, 102 in year two and 101 in year three, the source added.

Commitments are due at noon ET on May 23.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies LLC, Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets are leading the $1.75 billion in term loans that will be used to fund the buyout of the company by Platinum Equity from Johnson & Johnson in a transaction valued at about $2.1 billion.

LifeScan is a marketer of blood glucose monitoring products with headquarters in Chesterbrook, Pa., and Zug, Switzerland.

Miller’s reveals talk

Miller’s Ale House released price talk of Libor plus 450 bps to 475 bps with a 0% Libor floor and an original issue discount of 99.5 on its $250 million seven-year first-lien term loan in connection with its morning bank meeting, according to a market source.

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

The company’s $285 million of credit facilities also include a $35 million revolver.

Commitments are due on May 21, the source said.

Jefferies LLC, Barclays and KeyBanc Capital Markets are leading the deal that will be used to refinance existing debt.

Miller’s Ale House is an Orlando, Fla.-based restaurant and sports bar chain.

Trinseo proposed terms

Trinseo announced talk of Libor plus 200 bps with a 0% Libor floor and a par issue price on its $697 million covenant-light term loan B due September 2024 (Ba2/BB+) that launched with a call in the morning, a market source remarked.

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

Commitments are due at noon ET on Monday.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0% Libor floor.

Trinseo is a Berwyn, Pa.-based materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber.

Everi shops repricing

Everi Payments launched in the morning an $814 million term loan talked at Libor plus 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments/consents are due at noon ET on Friday, the source said.

Jefferies LLC 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.

Everi Payments is a Las Vegas-based provider of video and mechanical reel gaming content and solutions, integrated gaming payment solutions and compliance and efficiency software solutions.

Securus floats OID

Securus Technologies came out with original issue discount talk of 99.5 on its fungible $350 million incremental covenant-light first-lien term loan (B2/B) due November 2024 that launched with a morning call, a market source said.

Like the existing loan, the incremental term loan is priced at Libor plus 450 bps with a 1% Libor floor and has 101 soft call protection through Nov. 1, 2018.

The incremental loan has a ticking fee of half the spread from days 46 to 75 and the full spread thereafter.

Commitments are due at noon ET on May 16.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of Inmate Calling Solutions and to repay existing revolver borrowings.

Closing is expected in the third quarter.

Securus is a Dallas-based provider of advanced inmate communications, investigative technologies and information management solutions to the corrections industry.

Insight readies deal

Also in the primary market, Insight Global scheduled a lender call for 10 a.m. ET on Wednesday to launch a $1,083,000,000 seven-year first-lien term loan talked at Libor plus 300 bps to 325 bps with a 1% 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 May 18, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing $896 million term loan priced at Libor plus 350 bps with a 1% Libor floor and the $187 million in incremental debt will be used to fund a distribution to shareholders.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

Interior Logic coming soon

Interior Logic Group emerged with plans to hold a bank meeting at 10:30 a.m. ET in New York on Thursday to launch a $400 million seven-year covenant-light term loan B, according to a market source.

Bank of America Merrill Lynch is the left lead on the deal that will be used to refinance existing debt and pay related fees and expenses in connection with the cashless merger of Littlejohn & Co.’s portfolio company Interior Specialists Inc. LLC, a provider of interior design, design center management and installation services, and Platinum Equity's portfolio company Interior Logic Group.

Closing is expected in the second quarter.

Interior Logic is an Irvine, Calif.-based provider of design center services and interior finish solutions.

Playa on deck

Playa Hotels & Resorts set a lender call for noon ET on Wednesday to launch a fungible $100 million add-on covenant-light term loan B due April 2024 and a repricing of its existing $904 million covenant-light term loan B due April 2024, according to a market source.

Talk on the term loan debt is Libor plus 275 bps with a 1% Libor floor and 101 soft call protection for six months, the source said. The add-on term loan is talked with an original issue discount of 99.75 to par and the repricing is offered at par.

Commitments are due at 5 p.m. ET on May 16, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal.

The add-on term loan will be used to support the acquisition of five all-inclusive resorts from Sagicor Group Jamaica Ltd. and the repricing will take the existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Playa Hotels is an owner, operator and developer of all-inclusive resorts.

BroadStreet joins calendar

BroadStreet Partners will hold a lender call at 1 p.m. ET on Wednesday to launch a fungible $15 million add-on term loan B and a repricing of its existing $579 million term loan B, a market source said.

Commitments are due at noon ET on May 16, the source added.

RBC Capital Markets, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and ING are leading the deal.

The add-on term loan will be used to repay revolver borrowings.

BroadStreet is a Columbus, Ohio-based insurance broker.

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