Level 3, Veresen Midstream, Freedom Mortgage break; Solera, TriMark, Black Knight updated

By Sara Rosenberg

New York, Feb. 17 – Level 3 Financing Inc.’s term loan B made its way into the secondary market on Friday above its original issue discount, and deals from Veresen Midstream LP and Freedom Mortgage Corp. began trading too.

Meanwhile, in the primary market, Solera Holdings Inc. firmed pricing on its U.S. and euro term loans at the low end of guidance, and TriMark (TMK Hawk Parent Corp.) lowered the spread on its tack-on first-lien term loan and added a repricing of its existing loan to the mix.

In addition, Black Knight Financial Services Inc. trimmed pricing on its term loan B, and Avantor Performance Materials and Pike Corp. surfaced with new deal plans.

Level 3 starts trading

Level 3 Financing’s $4.61 billion seven-year covenant-light term loan B freed up for trading on Friday, with levels seen at par ¼ bid, par ½ offered, a trader remarked.

Pricing on the loan is Libor plus 225 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99.75. The debt includes 101 soft call protection for six months.

During syndication, the term loan firmed at the high end of revised talk of $3.61 billion to $4.61 billion, and was increased from an initial amount of $2.61 billion, and pricing was cut from Libor plus 250 bps.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an $815 million term loan B-3 due in 2019 and a $1,795,500,000 term loan B due in 2020 and, due to the recent upsizing, a $2 billion term loan B-2 due in 2022.

Level 3 is a Broomfield, Colo.-based provider of communications services to enterprise, government and carrier customers.

Veresen tops par

Another deal to break was Veresen Midstream’s $714 million term loan B due March 31, 2022, with levels quoted at par 3/8 bid, par 7/8 offered, according to a trader.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

RBC Capital Markets 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.

Veresen is a Calgary, Alta.-based jointly owned limited partnership between Veresen Inc. and Kohlberg Kravis Roberts & Co. LP that was formed in March 2015 to build, own and operate natural gas gathering and processing infrastructure in Western Canada.

Freedom hits secondary

Freedom Mortgage’s $450 million five-year term loan B also began trading, with levels quoted at par ¾ bid, 101½ offered by early afternoon, a trader said.

Pricing on the term loan is Libor plus 550 bps with a 1% Libor floor, and it was issued at a discount of 99. The debt has 101 hard call protection for one year.

On Thursday, the term loan was upsized from $350 million, pricing was trimmed from Libor plus 600 bps and the discount was tightened from 98.

Barclays, J.P. Morgan Securities LLC and Nomura are leading the deal that will be used for general corporate purposes, including potential strategic acquisitions of Mortgage Servicing Rights.

Closing is targeted for Thursday.

Freedom Mortgage is a Mount Laurel, N.J.-based top tier residential mortgage company engaged in the origination, servicing, selling and securitizing of primarily agency-eligible residential mortgage loans.

Solera firms terms

Switching to the primary market, Solera set pricing on its $1,789,000,000 term loan at Libor plus 325 bps, the tight end of the Libor plus 325 bps to 350 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source said.

Furthermore, the company finalized pricing on its €640 million term loan at Euribor plus 300 bps, the low end of the Euribor plus 300 bps to 325 bps talk, and set the issue price at par, the tight end of the 99.875 to par talk, the source continued. This tranche still has a 0.75% floor and 101 soft call protection for six months.

Nomura Securities Co. Ltd. is the left lead on the deal that will be used to reprice existing U.S. and euro term loans down from Libor/Euribor plus 475 bps with a 1% floor.

Allocations are targeted for Tuesday, the source added.

Solera is a Westlake, Texas-based provider of software and services to the automobile insurance claims processing industry.

TriMark reworked

TriMark cut pricing on its $77.5 million tack-on first-lien term loan due Oct. 1, 2021 to Libor plus 400 bps from Libor plus 425 bps and firmed the issue price at par, the tight end of the 99.75 to par talk, according to a market source. The loan still has a 1% Libor floor.

Also, the company is now asking to reprice its existing $359 million covenant-light first-lien term loan due Oct. 1, 2021 to Libor plus 400 bps with a 1% Libor floor from Libor plus 425 bps with a 1% Libor floor.

The repricing is offered at par, and all of the first-lien term loan debt will get 101 soft call protection for six months, the source said.

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

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal.

The incremental loan will be used to fund a tuck-in acquisition.

TriMark is a South Attleboro, Mass.-based provider of equipment, supplies and design services to the foodservice industry.

Black Knight flexes

Black Knight Financial Services lowered pricing on its $394 million term loan B due 2022 to Libor plus 225 bps from talk of Libor plus 250 bps to 275 bps, and left the 0.75% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months unchanged, a market source said.

Recommitments are due on Tuesday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 0.75% Libor floor.

Black Knight is a Jacksonville, Fla.-based provider of integrated technology, services, data and analytics.

Avantor readies deal

Avantor Performance Materials set a bank meeting in New York for Tuesday morning to launch a $1.88 billion credit facility, according to a market source.

The facility consists of a $75 million five-year revolver, a $1,425,000,000 seven-year covenant-light first-lien term loan and a $380 million eight-year covenant-light second-lien term loan, the source said.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

Avantor is a Center Valley, Pa.-based provider of performance materials and solutions for the life sciences and advanced technology markets.

Pike joins calendar

Pike scheduled a lenders’ presentation for 2 p.m. ET on Tuesday to launch a $720 million senior secured credit facility, a market source remarked.

The facility consists of a $100 million revolver, a $490 million first-lien term loan and a $130 million second-lien term loan, the source added.

Morgan Stanley Senior Funding Inc., KeyBanc Capital Markets Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used by chief executive officer Eric Pike, Global Partnership Investing, ClearSky and NextEra to buy out the current sponsor, Court Square Capital Partners, and refinance existing bank debt.

Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.

PLZ Aeroscience allocates

In other news, PLZ Aeroscience Corp. allocated and was scheduled to close on its $464.5 million covenant-light term loan on Friday, a market source said.

Pricing on the loan is Libor plus 350 bps with a step-down to Libor plus 325 bps at total net leverage of 3.75 times and a 1% Libor floor. The debt was issued at par and includes 101 soft call protection for six months.

Antares Capital is leading the deal that is being used to refinance an existing term loan.

PLZ is a manufacturer of specialty aerosol products.

Russell Investments wraps

Russell Investments’ fungible $200 million add-on term loan B due 2023 allocated as well, according to a market source.

The loan is priced at Libor plus 575 bps with a 1% Libor floor, and was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Barclays, Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund a one-time distribution to shareholders and pay transaction related fees and expenses.

Closing is expected on Thursday, the source said.

Russell Investments is a Seattle-based asset manager.

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