New Fortress, XPO, Chromaflo break; SS&C gains; Power Solutions, TruGreen, Travelport revised

By Sara Rosenberg

New York, March 14 – New Fortress Energy (NFE Atlantic Holdings LLC) adjusted the Libor floor and call protection on its term loan B before freeing up for trading on Thursday, and deals from XPO Logistics Inc. and Chromaflo Technologies broke as well.

In other happenings, SS&C Technologies Holdings Inc.’s bank debt headed higher in the secondary market following news of a planned loan pay down.

Back in the primary market, Power Solutions (Panther BF Aggregator 2 LP) upsized its U.S. term loan B while setting the spread at the low end of revised talk, and reduced pricing on its euro term loan B, and TruGreen LP lowered pricing on its term loan B.

Also, Travelport Worldwide Ltd. adjusted spread and original issue discount guidance on its first-lien term loan, and set pricing on its second-lien term loan at the wide end of talk, and Sorenson Communications LLC increased the size of its term loan and modified the issue price.

Furthermore, Ascensus Inc. firmed the original issue discount on its incremental first-lien term loan at the tight side of guidance, and Datto Inc. and Quick Base disclosed price talk on their new loan transactions with launch.

New Fortress tweaked

New Fortress Energy lifted the Libor floor on its $500 million five-year term loan B to 1.5% from 0% and changed the hard call protection to non-callable for two years, then at 103 in year three and 101 in year four, from revised talk of non-callable for one year, then 103 in year two, 102 in year three and 101 in year four, and initial talk of 103 in year one and 101 in year two, according to a market source.

The loan has 0 bps MFN on the incremental fixed dollar basket for pari first-lien debt, the source said.

Pricing on the term loan B is Libor plus 825 basis points with an original issue discount of 96.

Previously in syndication, the term loan was scaled back from $750 million, the spread was increased from Libor plus 500 bps, the discount was revised from 98 and the maturity was shortened from seven years.

New Fortress frees up

Late in the afternoon on Thursday, New Fortress Energy’s term loan B hit the secondary market, and levels were quoted at 96¼ bid, 97¼ offered, a trader added.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used to complete the construction of infrastructure, including liquefaction and terminal facilities, to support contracted cash flows, to repay existing debt and for general corporate purposes.

Closing is expected during the week of March 18.

New Fortress Energy is a New York-based energy infrastructure company.

XPO tops OID

XPO Logistics’ non-fungible $500 million covenant-lite incremental term loan B-1 (Baa3/BBB-) due February 2025 freed up too, with levels quoted at 99¾ bid, par ¼ offered, a trader remarked.

Pricing on the term loan B-1 is Libor plus 250 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

On Wednesday, the discount on the term loan B-1 was tightened from 99.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the deal that will be used for general corporate purposes, including to fund purchases of the company’s common stock as part of a previously announced share repurchase plan, and to pay related fees and expenses.

Closing is expected during the week of March 18.

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

Chromaflo begins trading

Chromaflo Technologies’ non-fungible $60 million covenant-lite incremental term loan B (B2/B) due Nov. 18, 2023 broke as well, with levels seen at 99¼ bid, par ¼ offered, according to a trader.

Pricing on the incremental term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and KeyBanc Capital Markets are leading the deal that will be used to partially refinance an existing second-lien term loan.

Closing is expected during the week of March 18.

Chromaflo is an Ashtabula, Ohio-based manufacturer of chemical and pigment dispersions for architectural and industrial coatings.

SS&C rises

Also in trading, SS&C Technologies’ term loans B-3, B-4 and B-5 strengthened after the company announced that it would use proceeds from a senior notes offering to repay some of the outstanding B-3 loan borrowings, a market source said.

Upon being announced in the morning, the bond offering was sized at $750 million, but late in the day it was upsized to $2 billion with the additional proceeds earmarked for further repayment of term loans.

The term loan B-3 and term loan B-4 were quoted at 99¼ bid, 99½ offered in the morning when news of the bond deal first hit and at 99 5/8 bid, par offered after the upsizing, the source continued. By comparison, this debt was quoted at 98 3/8 bid, 98 7/8 offered on Wednesday.

Regarding the company’s term loan B-5, it was quoted at 99 bid, 99 3/8 offered in the morning and at 99 5/8 bid, par offered post-upsizing of the bonds, up from 98½ bid, 99 offered in the prior session, the source added.

The company’s term loan B-1 was unchanged on the day at 99 bid, par offered.

SS&C is a Windsor, Conn.-based provider of investment and financial software-enabled services and software for the financial services and health care industries.

Power Solutions reworked

Switching back to the primary market, Power Solutions increased its U.S. seven-year term loan B to $4.2 billion from $3.2 billion and firmed pricing at Libor plus 350 bps, the tight end of revised talk of Libor plus 350 bps to 375 bps and down from initial talk in the range of Libor plus 400 bps to 425 bps, a market source remarked.

Furthermore, the company cut pricing on its $2.25 billion equivalent euro seven-year term loan B to Euribor plus 375 bps from revised talk of Euribor plus 400 bps and initial talk in the range of Euribor plus 400 bps to 425 bps talk, the source continued.

Both term loans have a 0% floor and 101 soft call protection for one year, the U.S. term loan is being sold at an original issue discount of 99 and the euro term loan is being issued at a discount of 99.5.

Earlier in syndication, the discount on the U.S. term loan was adjusted from 98.5, the discount on the euro term loan was modified from 99, and the call protection on both tranches was extended from six months.

Recommitments for the U.S. term loan were due at 4 p.m. ET on Thursday and recommitments for the euro term loan are due at 10 a.m. UK time on Friday, the source added.

Power Solutions being acquired

Power Solutions will use its now $6.45 billion equivalent of term loans (Ba3/B+/BB) to help fund its acquisition by Brookfield Business Partners LP and Caisse de depot et placement du Quebec from Johnson Controls for around $13.2 billion.

The company will also use $1 billion of senior secured notes, which were trimmed from $2 billion with the U.S. term loan upsizing, €660 million of senior secured notes, $1.95 billion of senior unsecured notes, and equity to fund the buyout.

J.P. Morgan Securities LLC is the left lead on the U.S. term loan B, and Barclays is the left lead on the euro term loan B. Filings with the Securities and Exchange Commission listed Credit Suisse, Bank of America Merrill Lynch, BMO Capital Markets, CIBC Capital Markets, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, RBC Capital Markets, Bank of Nova Scotia and TD Securities as leads too.

Closing is expected by June 30, 2019, subject to customary conditions, including regulatory approvals.

Power Solutions is a supplier of low voltage automotive batteries.

TruGreen cuts spread

TruGreen lowered pricing on its $965 million seven-year first-lien term loan B (B1/B) to Libor plus 375 bps from Libor plus 400 bps, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months intact, according to a market source.

Books closed at 5 p.m. ET on Thursday and allocations are expected on Friday, the source said.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to refinance an existing $790 million first-lien term loan due April 2023 and fund a $234 million distribution to be used to purchase the equity stake held by the Scotts Miracle-Gro Co.

TruGreen is a Memphis, Tenn.-based provider of lawn care, tree & shrub and mosquito services.

Travelport adjusts talk

Travelport moved price talk on its $2.8 billion seven-year covenant-lite first-lien term loan (B2/B+) to a range of Libor plus 475 bps to 500 bps from a range of Libor plus 450 bps to 475 bps, adjusted the original issue discount talk to a range of 98 to 98.5 from just 98, and extended the 101 soft call protection to one year from six months, a market source said. This tranche still has a 0% Libor floor.

Also, pricing on the company’s $500 million eight-year covenant-lite second-lien term loan (Caa2/CCC+) was set at Libor plus 900 bps, the high end of the Libor plus 850 bps to 900 bps talk, while the 0% Libor floor, discount of 97 and call protection of 102 in year one and 101 in year two were unchanged, the source added.

The company’s $3.45 billion of credit facilities include a $150 million revolver (B2/B+) as well.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., Credit Suisse Securities (USA) LLC and Barclays are leading the debt that will be used with up to $1.08 billion of equity to fund the buyout of the Langley, U.K.-based travel technology company by Siris Capital Group LLC and Evergreen Coast Capital Corp. for $15.75 per share in cash. The transaction is valued at about $4.4 billion.

Closing is expected next quarter, subject to shareholder and regulatory approvals.

Sorenson sets changes

Sorenson Communications raised its five-year covenant-lite first-lien term loan (B2/BB-) to $700 million from $675 million and modified the original issue discount to 96 from 95, according to a market source.

The term loan is still priced at Libor plus 650 bps with a 0% Libor floor, and has 101 soft call protection for one year.

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

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

Sorenson is a Salt Lake City-based provider of end-to-end communication technology services for the deaf and hard of hearing.

Ascensus updated

Ascensus set the original issue discount on its fungible $94 million incremental first-lien term loan (B2/B-) due December 2022 at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

As before, the incremental term loan is priced at Libor plus 400 bps with a 1% Libor floor, and has 101 soft call protection for six months.

Commitments remained due at 5 p.m. ET on Thursday, the source said.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Barclays are leading the deal that will be used to fund a tuck-in acquisition and a shareholder distribution.

In connection with this transaction, pricing on the company’s existing first-lien term loan will be increased to Libor plus 400 bps with a 1% Libor floor from Libor plus 350 bps with a 1% Libor floor for fungibility.

Ascensus is a Dresher, Pa.-based service provider of retirement and college savings plans.

Datto reveals guidance

In more primary happenings, Datto held its bank meeting on Thursday morning and, shortly before the event began, price talk on its $550 million seven-year covenant-lite first-lien term loan (B2/B) was announced at Libor plus 475 bps to 500 bps with a 0% Libor floor and an original issue discount of 99, a market source remarked.

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

Commitments are due on March 28.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Datto is a Norwalk, Conn.-based provider of data protection and IT solutions to small and medium-sized businesses.

Quick Base discloses talk

Quick Base came out with talk of Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $275 million seven-year covenant-lite first-lien term loan (B1/B) that launched with a bank meeting during the session, according to a market source.

Commitments are due on March 27, the source said.

The company is also getting a $40 million five-year revolver (B1/B) and a $140 million privately placed covenant-lite second-lien term loan.

Golub Capital and Neuberger Berman are the joint lead arrangers and joint bookrunners on the first-lien facilities. Carlyle Global Credit is a joint lead arranger and the administrative agent on the second-lien loan.

The new debt will be used to help fund the buyout of the company by Vista Equity Partners. Quick Base’s current investor, Welsh, Carson, Anderson & Stowe, is reinvesting in the company as part of the transaction.

Quick Base is a Cambridge, Mass.-based provider of platform-as-a-service application development tools that allow non-technical users to develop and deploy their own apps that streamline day-to-day functions.

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