TransDigm breaks; Steinway tweaks deal; Robertshaw, Advantage Sales revise deadlines

By Sara Rosenberg

New York, Feb. 12 – TransDigm Inc.’s term loan G made its way into the secondary market on Monday, with levels quoted above its issue price.

Moving to the primary market, Steinway Musical Instruments Inc. set the spread on its term loan at the low end of guidance and revised the original issue discount, and Robertshaw US Holding Corp. and Advantage Sales & Marketing Inc. accelerated the commitment deadlines on their loan transactions.

In addition, Oryx Southern Delaware Holdings LLC, Openlink Financial LLC (Ocean Bidco Inc.) and OCI Beaumont (OCI Partners LP) released price talk with launch.

Also, W.R. Grace & Co., Shutterfly Inc., Kofax (Project Leopard Holdings), Genworth Financial Inc., VAC (VAC Germany Holding GMBH and New VAC US LLC), Medical Solutions Holdings Inc., Masergy Communications Inc. and Liquidnet Holdings Inc. joined this week’s primary calendar.

TransDigm frees up

TransDigm’s $1.81 billion first-lien term loan G (Ba2/B+) due August 2024 began trading on Monday, with levels quoted at par 1/8 bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 250 basis points with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Barclays, UBS Investment Bank, RBC Capital Markets, Credit Agricole, Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used to reprice an existing term loan G down from Libor plus 300 bps with a 0.75% Libor floor.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for use on commercial and military aircraft.

Raycom holds steady

Also in trading, Raycom TV Broadcasting LLC’s $598.5 million term loan B due Aug. 23, 2024 was quoted at par 1/8 bid, par 5/8 offered, in line with where it broke for trading on Friday, a market source said.

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

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 0% Libor floor.

Raycom is a Montgomery, Ala.-based broadcaster and owner and operator of television stations.

Steinway updated

Switching to the primary market, Steinway Musical Instruments finalized pricing on its $235 million seven-year covenant-light term loan B (B3/B) at Libor plus 375 bps, the tight side of the Libor plus 375 bps to 400 bps talk, and moved the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Monday and allocations are expected on Tuesday, the source said.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing term loan B.

Steinway, owned by Paulson & Co., is an Astoria, N.Y.-based musical instruments company.

Robertshaw moves deadline

Robertshaw accelerated the commitment deadline on its $655 million of credit facilities to noon ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

The facilities consist of a $50 million ABL revolver, a $480 million seven-year covenant-light first-lien term loan (B1/B) and a $125 million eight-year covenant-light second-lien term loan (Caa1/CCC+).

Talk on the first-lien term loan is Libor plus 375 bps with a 1% 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 825 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by One Rock Capital Partners LLC.

Robertshaw is an Itasca, Ill.-based designer and manufacturer of systems and controls used in residential and commercial appliances, HVAC and transportation applications.

Advantage Sales accelerated

Advantage Sales & Marketing moved up the commitment deadline on its fungible $350 million incremental covenant-light term loan B-2 (B) due July 25, 2021 to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, according to a market source.

Pricing on the incremental loan matches existing term loan pricing at Libor plus 325 bps with a 1% Libor floor, and the incremental debt is talked at an original issue discount of 97.6.

The incremental and the existing term loan B-2 will get 101 soft call protection for six months.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, CB&T and Jefferies LLC are leading the deal that will be used to consolidate Daymon Worldwide into Advantage Sales to create a single credit group by paying off the outstanding Daymon credit facilities and to provide funding for acquisitions under letters of intent.

Advantage Sales is an Irvine, Calif.-based sales and marketing agency.

Oryx reveals talk

Oryx held its bank meeting on Monday, launching its $800 million seven-year first-lien term loan (B2/B+) at talk of Libor plus 325 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

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

The company’s $840 million of credit facilities also include a $40 million super priority revolver.

Commitments are due on Feb. 26, the source said.

Jefferies LLC and Citigroup Global Markets Inc. are leading the deal that will be used to repay $90 million of outstanding bank debt and to fund a distribution to the company’s current owners.

Oryx is an oil gathering and transportation business in the Delaware Basin.

Openlink guidance

Openlink Financial came out with price talk on its $520 million equivalent U.S. dollar and euro seven-year term loan B with its morning New York bank meeting, a market source remarked. A bank meeting for European investors will take place in London on Tuesday.

Talk on the U.S. term loan is Libor plus 575 bps and talk on the euro term loan is Euribor plus 525 bps, the source continued. Both tranches are talked with a 1% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $541 million equivalent of senior secured credit facilities also include a $21 million five-year revolver.

Commitments are due in two weeks, the source added.

UBS Investment Bank is leading the deal that will be used to help fund the acquisition of the company by ION Investment Group from Hellman & Friedman.

Openlink is a Uniondale, N.Y.-based provider of trading and risk management solutions for commodity, energy, corporate and financial services organizations. ION is a provider of trading and workflow automation software solutions to financial institutions, central banks, governments and corporations.

OCI holds call

OCI Beaumont surfaced in the morning with plans to hold a lender call at 3 p.m. ET on Monday to launch a $400 million seven-year term loan B talked at Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

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

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 to partially repay an outstanding subordinated related party term loan.

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

W.R. Grace sets launch

W.R. Grace will hold a lender call at noon ET on Wednesday to launch $900 million of first-lien senior secured term loan debt, a market source remarked.

The debt is split between a $300 million term loan B-1 and a $600 million term loan B-2, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance existing debt and for mergers and acquisitions.

W.R. Grace is a Columbia, Md.-based product development and manufacturing company that produces and sells specialty chemicals and materials.

Shutterfly timing emerges

Shutterfly set a lenders’ presentation for 10:30 a.m. ET on Tuesday to launch its previously announced $825 million senior secured term loan B, according to a market source.

The commitment described the loan as a covenant-light term loan due Aug. 17, 2024 expected to be priced at Libor plus 300 bps and include 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the acquisition of Lifetouch for $825 million in cash and refinance certain debt at Lifetouch.

Closing is expected in the second quarter, subject to regulatory approval and customary conditions.

Shutterfly is a Redwood City, Calif.-based online retailer and manufacturer of personalized products and services. Lifetouch is an Eden Prairie, Minn.-based school photography company.

Kofax repricing

Kofax scheduled a lender call for 1:30 p.m. ET on Tuesday to launch a $559 million covenant-light first-lien term loan due July 2023 talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

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.

Genworth coming soon

Genworth Financial will hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a $450 million five-year senior secured term loan (B+), a market source said.

Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used with cash on hand to repay existing debt and transaction fees and expenses, and could be used to pay the company’s 6.515% senior unsecured notes due May 2018.

Closing is expected in early March.

Genworth Financial is a Richmond, Va.-based holding company that provides a diversified mix of life, annuity, long-term care and mortgage insurance solutions.

VAC joins calendar

VAC scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch $230 million of credit facilities, a market source remarked.

The facilities consist of a $30 million revolver and a $200 million seven-year covenant-light first-lien term loan that includes 101 soft call protection for six months, the source added.

Commitments are due on Feb. 26.

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

VAC is a provider of highly specialized magnetic alloys and components serving diverse end markets.

Medical Solutions on deck

Medical Solutions will hold a lender call at 10 a.m. ET on Tuesday to launch an add-on loan, according to a market source.

UBS Investment Bank is the left lead on the deal that will be used to fund an acquisition.

Medical Solutions is an Omaha-based provider of health care staffing solutions for hospitals.

Masergy plans call

Masergy Communications set a loan lender call for 11:30 a.m. ET on Tuesday, according to a market source.

Jefferies LLC is leading the transaction.

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

Liquidnet readies deal

Liquidnet Holdings scheduled a loan lender call for 1:30 p.m. ET on Tuesday to launch a Jefferies LLC-led transaction, a market source remarked.

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

Barracuda closes

In other news, the buyout of Barracuda Networks Inc. by Thoma Bravo LLC for $27.55 in cash per share has been completed, a news release said.

To help fund the transaction, Barracuda got $835 million of senior secured credit facilities consisting of a $75 million revolver (B2/B-/BB-), a $555 million first-lien term loan (B2/B-/BB-) and a $205 million second-lien term loan (Caa2/CCC+/CCC+).

Pricing on the first-lien term loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor and was sold at a discount of 99.5. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was lowered from talk in the range of Libor plus 350 bps to 375 bps and the discount was modified from 99.5, and pricing on the second-lien term loan was trimmed from talk in the range of Libor plus 750 bps to 775 bps and the discount was tightened from 99.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and UBS Investment Bank led the deal.

Barracuda is a Campbell, Calif.-based provider of cloud-enabled security and data protection solutions.

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