Aspen Dental, Securus, RCN Cable, Intrawest break; Zayo softens with repricing, amendment

By Sara Rosenberg

New York, April 27 – Aspen Dental Management Inc., Securus Technologies Holdings Inc., RCN Cable (RCN Services Telecom LLC) and Intrawest Operations Group LLC all saw their loan deals free up for trading during Monday’s market hours, and Zayo Group LLC’s term loan was lower on repricing and amendment news.

Moving to the primary market, Sterigenics International Inc. and Royalty Pharma Investments Finance Trust released talk with launch, and Hyland Software Inc. approached investors with a tack-on term loan.

Also, National Surgical Healthcare Inc. and Black Knight InfoServ LLC began circulating pricing guidance ahead of their bank meetings, and SIG Combibloc Group AG (Onex Wizard Acquisition), A. Schulman Inc. and ConvergeOne Holdings Corp. joined this week’s calendar.

Aspen Dental tops OID

Aspen Dental Management’s credit facility hit the secondary market on Monday, with levels on the $400 million covenant-light term loan quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 450 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

During syndication, the term loan was upsized from $380 million, pricing was lowered from talk of Libor plus 475 bps to 500 bps, the discount was revised from 99, the call protection was extended from six months, and the MFN sunset was removed.

The company’s $435 million credit facility also includes a $35 million revolver.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, BMO Capital Markets, Deutsche Bank Securities Inc. and GE Capital Markets are leading the deal that will be used with privately placed unsecured debt to fund the recapitalization of the East Syracuse, N.Y.-based dental support organization by American Securities LLC, in partnership with current owners, Ares Management LP and Leonard Green & Partners LP, and management.

Securus frees up

Securus Technologies’ $205 million incremental covenant-light term loan B-2 due April 2020 also broke for trading, with levels seen at 99¼ bid, par ¼ offered, a trader remarked.

Pricing on the term loan B-2 is Libor plus 425 bps, after firming last week at the tight end of the Libor plus 425 bps to 450 bps talk. The loan has a 1% Libor floor, 101 soft call protection for six months and a ticking fee of half the margin beginning on May 1 and the full coupon beginning on June 1, and was issued at an original issue discount of 99.

Deutsche Bank Securities and BNP Paribas Securities Corp. are leading the deal that will be used to fund the acquisition of JPay Inc., a Miami-based provider of inmate payments, email and tablet products.

Closing is expected in July.

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

RCN Cable breaks

RCN Cable’s $759.2 million term loan due March 2020 began trading as well, with levels quoted at par ¼ bid, a source said.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Proceeds will be used to reprice an existing term loan from Libor plus 350 bps with a 1% Libor floor.

SunTrust Robinson Humphrey Inc. is leading the deal for the cable provider.

Intrawest starts trading

Intrawest Operations’ $592.8 million term loan due Dec. 9, 2020 freed up too, with levels quoted at par ½ bid, par ¾ offered, according to a trader.

The term loan is priced at Libor plus 375 bps with a 1% Libor floor, and was issued at par. Included in the tranche is 101 soft call protection for one year.

During syndication, pricing on the loan firmed at the wide end of the Libor plus 350 bps to 375 bps talk, and the call protection was extended from six months.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities and Deutsche Bank Securities are leading the deal that will be used to reprice an existing term loan from Libor plus 450 bps with a 1% Libor floor.

Intrawest, a Denver-based mountain resort and adventure company, expects to close on the repricing on or around Friday.

Zayo retreats

Also in trading, Zayo Group’s term loan dropped to par bid, par 3/8 offered from par ½ bid, par 7/8 offered as the company launched a repricing of the existing $1,995,404,032 term loan and amendment to the maturity and other covenants and provisions, a trader said.

The amended term loan (B+) was launched with a 2 p.m. ET lender call, and commitments are due on Thursday. Closing is expected on May 5.

Talk on the $1,995,404,032 seven-year senior secured covenant-light term loan B is Libor plus 275 bps with a 0.75% to 1% Libor floor, a par issue price and 101 soft call protection for six months, a source added.

Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs Bank USA, Citigroup Global Markets Inc., RBC Capital Markets and SunTrust Robinson Humphrey are the joint bookrunners on the deal and joint lead arrangers with J.P. Morgan Securities LLC.

Zayo is a Boulder, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

Sterigenics discloses pricing

In other happenings, Sterigenics held its bank meeting on Monday, and with the event, talk on its $1.05 billion seven-year term loan B came out at Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

The company’s $1.2 billion credit facility (B1/B) also includes a $150 million five-year revolver.

JPMorgan is leading the deal that will be used to help fund the company’s recapitalization with Warburg Pincus and GTCR.

GTCR purchased Sterigenics in 2011, and Warburg Pincus’ portion of the equity for the recapitalization will come from Warburg Pincus Private Equity XI LP.

Closing is expected this quarter.

Sterigenics is an Oak Brook, Ill.-based provider of contract sterilization, gamma technologies and medical isotopes.

Royalty Pharma guidance

Royalty Pharma disclosed issue price talk of 99¾ to par on its $1 billion add-on term loan B-4 due Nov. 9, 2020 that launched with an afternoon call, a source remarked.

Pricing on the add-on loan matches the existing term loan B-4 at Libor plus 275 bps with a 0.75% Libor floor.

Commitments are due on Friday, the source added.

Bank of America Merrill Lynch, Goldman Sachs Bank USA and JPMorgan are leading the deal that will be used to refinance the company’s existing term loan B-1.

Royalty Pharma is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

Hyland comes to market

Hyland Software emerged in the morning with plans to hold a lender call at 3 p.m. ET to launch a $100 million tack-on first-lien covenant-light term loan due February 2021 that is talked at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99½, according to a market source.

The spread and floor on the tack-on term loan matches existing first-lien term loan pricing, and, with this transaction, all of the first-lien term debt will get 101 soft call protection for six months, the source said.

Commitments are due at noon ET on May 4.

Credit Suisse Securities and Goldman Sachs Bank USA are leading the deal that will be used to fund a distribution to shareholders.

Hyland is a Westlake, Ohio-based enterprise content-management software developer.

National Surgical floats talk

National Surgical released talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $365 million seven-year covenant-light term loan B in preparation of its Tuesday bank meeting, according to a market source.

Of the total term loan amount, $50 million is delayed draw.

The company’s $405 million senior secured credit facility also includes a $40 million revolver.

JPMorgan is leading the deal that will be used with pre-placed junior debt to fund the acquisition of a majority interest in Optim Healthcare, a Savannah, Ga.-based orthopedic-focused health system, and for general corporate purposes.

Closing is expected this quarter, subject to approval by the U.S. Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

National Surgical is a Chicago-based owner and operator of surgical hospitals and surgery centers.

Black Knight terms emerge

Black Knight InfoServ disclosed guidance of Libor plus 325 bps to 350 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $400 million seven-year term loan B that is slated to launch with a bank meeting on Tuesday, according to a market source.

The company’s $1.6 billion senior secured credit facility (Ba2/BB) also includes a $400 million five-year revolver and an $800 million five-year term loan A.

JPMorgan is leading the deal that will be used to repay, in part, a mirror loan and intercompany loans from Fidelity National Financial Inc., the indirect parent of Black Knight InfoServ.

Closing is subject to the completion of the initial public offering of the class A common stock of Black Knight Financial Services Inc. and market conditions.

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

SIG Combibloc on deck

SIG Combibloc set a lender call for 10 a.m. ET on Tuesday to launch a repricing of its $1,225,000,000 and €1.05 billion covenant-light term loans due March 13, 2022 from Libor/Euribor plus 425 bps with a 1% floor, a market source said.

The loans currently have 101 soft call protection until March 13, 2016.

Consents/commitments are due at 5 p.m. ET on Thursday, and closing is targeted for May 13, the source added.

Barclays is leading the deal.

SIG Combibloc is a Switzerland-based supplier of carton packaging and filling machines for beverages and food.

A. Schulman coming soon

A. Schulman will hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a new senior secured credit facility, according to a market source.

The facility consists of a $300 million five-year revolver, a $200 million five-year term loan A, a $425 million seven-year term loan B and a €145 million seven-year term loan B, the source said.

JPMorgan and Bank of America Merrill Lynch are leading the deal that will be used to help fund the acquisition of Citadel Plastics Holdings Inc. from HGGC and Charlesbank Capital Partners for $800 million.

Closing is expected in the third quarter, subject to standard conditions.

A. Schulman is an Akron, Ohio-based supplier of high-performance plastic compounds, powders and resins. Citadel is a Chicago-based specialty engineered plastics company.

ConvergeOne readies call

ConvergeOne scheduled a lender call for 2 p.m. ET on Tuesday to launch a $50 million tack-on first-lien term loan due June 2020 to existing lenders only, according to a market source.

Price talk on the tack-on loan is Libor plus 500 bps with a 1% Libor floor, in line with the existing first-lien term loan, and an original issue discount of 99½, the source said, adding that there is 101 soft call protection through June on all of the debt.

Commitments are due at 5 p.m. ET on Friday.

Credit Suisse Securities is leading the deal that will be used to fund two acquisitions and for general corporate purposes.

ConvergeOne is an Eagan, Minn.-based provider of data, communications, collaboration and customer interaction solutions and managed services.

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