St. George’s, Flynn, Conduent, Novolex, Standard Media, Electrical Components break

By Sara Rosenberg

New York, June 22 – St. George’s University set the spread on its term loans at the low side of talk and modified the ticking fee on the delayed-draw tranche, and Flynn Restaurant Group LP raised pricing on its first-lien term loan and finalized the spread on its second-lien term loan at the wide end of guidance, and them both of these deals hit the secondary market on Friday.

Also, Conduent Business Services LLC firmed pricing on its term loan B at the high end of talk before freeing up, and loans from Novolex (Flex Acquisition Co. Inc.), Standard Media Group LLC and Electrical Components International Inc. broke as well.

In other news, MedPlast Holdings Inc. lowered pricing on its first-and second-lien term loans, Alterra Mountain Co. (Intrawest Resorts Holdings Inc.) upsized its add-on term loan and modified the issue price, and Young Innovations Inc. withdrew its term loan repricing from market.

St. George’s updated, trades

St. George’s University finalized pricing on its $675 million seven-year term loan B and $210 million delayed-draw term loan B at Libor plus 350 basis points, the low end of the Libor plus 350 bps to 375 bps talk, according to a market source.

Also, the ticking fee on the delayed-draw term loan was changed to half the spread from days 31 to 60 and the full spread thereafter, from half the spread from days 61 to 120 and the full spread thereafter, the source said.

As before, the term loan debt has a 0% Libor floor and an original issue discount of 99.5, with the 50 bps paid on the delayed-draw tranche at the time of the draw, the term loan has 101 soft call protection for six months, and the delayed-draw term loan availability period is 12 months.

On Friday afternoon, the term loan debt began trading and levels were quoted at 99¾ bid, par ¾ offered, another source added.

Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are leading the $885 million in term loans that will be used to refinance an existing term loan B and fund an acquisition.

Closing is expected during the week of July 16.

St. George’s is a Grenada, West Indies-based educational institution providing students with medical degrees as well as veterinary and liberal arts graduate and undergraduate degrees.

Flynn tweaked, frees up

Flynn Restaurant Group lifted pricing on its $400 million seven-year covenant-light first-lien term loan (B2/B) to Libor plus 350 bps from talk in the Libor plus 325 bps area, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

Also, the company set pricing on its $100 million eight-year covenant-light second-lien term loan (Caa2/CCC+) at Libor plus 700 bps, the high end of the Libor plus 675 bps to 700 bps talk, the source said. This tranche still has a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

The debt surfaced in the secondary market during the session, with the first-lien term loan quoted at 99¾ bid, par ½ offered and the second-lien term loan quoted at 99 bid, par offered, a trader added.

Bank of America Merrill Lynch, Citizens Bank, Fifth Third, KKR Capital Markets and Wells Fargo Securities LLC are leading the $500 million in term loans that will be used to refinance existing credit facilities at Bell American and Pan American into a combined structure, repay subordinated debt and fund cash to the balance sheet for future acquisitions and general corporate purposes.

Flynn Restaurant is a San Francisco-based restaurant franchisee operator.

Conduent firms, breaks

Conduent Business Services finalized the spread on its $840 million term loan B due Dec. 7, 2023 at Libor plus 250 bps, the high end of the Libor plus 225 bps to 250 bps talk, a market source said.

The term loan B still has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

After terms firmed up, the B loan freed up for trading and levels were quoted at par 1/8 bid, par 5/8 offered, a trader added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B due Dec. 7, 2023 down from Libor plus 300 bps with a 0% Libor floor. J.P. Morgan Securities LLC is the administrative agent.

The company is also repricing its $750 million revolver and $728 million term loan A (of which $314 million is denominated in euros) to Libor/Euribor plus 175 bps from Libor/Euribor plus 225 bps and is extending the maturities of these tranches by one year to Dec. 7, 2022. Lenders were offered a 10 bps extension fee.

Closing is expected on June 26.

Conduent is a Florham Park, N.J.-based provider of business process services with expertise in transaction-intensive processing, analytics and automation.

Novolex hits secondary

Novolex’s $1.4 billion seven-year incremental first-lien term loan made its way into the secondary market, with levels quoted at par bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 325 bps with a leverage-based step-down and a 0% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1.3 billion and the discount tightened from 99.5.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Jefferies LLC, Goldman Sachs Bank USA, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund the acquisition of the Waddington Group from Newell Brands Inc.

Novolex, a Carlyle portfolio company, is a Hartsville, S.C.-based packaging company that serves the retail, grocery, food service, hospitality, institutional and industrial markets. Waddington is a Covington, Ky.-based manufacturer and marketer of packaging and disposables serving the foodservice, bakery, deli, produce and confectionery markets.

Standard Media tops OIDs

Standard Media Group’s credit facilities began trading, with the $245 million seven-year first-lien term loan (B+/BB) quoted at 99¾ bid, par ¼ offered and the $90 million eight-year second-lien term loan (CCC+/CCC+) quoted at 99½ bid, par ½ offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

The company’s $350 million of senior secured credit facilities also include a $15 million revolver.

RBC Capital Markets, Capital One and Citizens Bank are leading the deal that will be used to help fund the acquisition of nine television stations from Sinclair Broadcast Group Inc. for $441.7 million in cash.

Closing is subject to regulatory approval, the closing of the Sinclair/Tribune Media Co. merger and other customary conditions.

Standard Media is a broadcast television company.

Electrical Components breaks

Electrical Components’ credit facilities also freed to trade, with the $583 million seven-year first-lien term loan seen at 99¼ bid, par offered and the $115 million eight-year second-lien term loan seen at 94 bid, 96 offered, a market source said.

Pricing on the first-lien term loan is Libor plus 425 bps with a 0% Libor floor and it was sold at an original issue discount of 99. The loan has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 850 bps with a 0% Libor floor and was issued at a discount of 94. This tranche has hard call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien term loan was upsized from $570 million, pricing was lifted from talk in the range of Libor plus 375 bps to 400 bps and the discount was changed from 99.5. Additionally, the second-lien term loan was downsized from $125 million, pricing was increased from talk in the range of Libor plus 775 bps to 800 bps, the discount widened from revised talk of 96 and initial talk of 99, and the hard call protection was revised from 102 in year one and 101 in year two.

The company’s $798 million of credit facilities also include a $100 million five-year revolver.

Electrical Components leads

Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets, Bank of America Merrill Lynch and Jefferies LLC are leading Electrical Components’ credit facilities.

Proceeds will be used to help fund the buyout of the company by Cerberus Capital Management LP from KPS Capital Partners LP. The $3 million in extra funds raised from the first-lien term loan upsizing will be used to cover the wider original issue discounts.

Closing is subject to customary conditions.

Electrical Components is a St. Louis-based manufacturer of wire harnesses, control boxes and value-added assembly services for consumer appliance and specialty-industrial applications.

MedPlast cuts pricing

Back in the primary market, MedPlast trimmed the spread on its $500 million seven-year covenant-light first-lien term loan (B) to Libor plus 375 bps from talk in the Libor plus 400 bps to 425 bps range, and on its $225 million eight-year covenant-light second-lien term loan (CCC+) to Libor plus 775 bps from talk in the Libor plus 800 bps to 825 bps range, a market source remarked.

As before, the first-lien term loan has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan has a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

The company’s $795 million senior secured deal also includes a $70 million five-year revolver (B).

Recommitments were due at 5 p.m. ET on Friday, the source added.

RBC Capital Markets LLC, Jefferies LLC, KeyBanc Capital Markets LLC and Citizens Bank are leading the deal that will be used to fund the acquisition of Integer Holdings Corp.’s Advanced Surgical and Orthopedics product lines for $600 million in cash.

Closing is expected in the third quarter, subject to customary conditions, including antitrust clearances.

JLL Partners and Water Street Healthcare Partners are the sponsors.

MedPlast is a Tempe, Ariz.-based services provider to the medical device industry.

Alterra reworked

Alterra Mountain raised its fungible add-on term loan to $80 million from $50 million and changed the issue price to par from 99.875, according to a market source.

Pricing on the add-on term loan is Libor plus 300 bps with a 0% Libor floor, and the debt has 101 soft call protection until October.

J.P. Morgan Securities LLC is leading the deal that will be used to fund an acquisition.

Alterra is a Denver-based mountain resort and adventure company.

Young Innovations pulled

Young Innovations shelved the repricing of its $294 million funded term loan that was talked at Libor plus 350 bps with a 25 bps step-down, a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Jefferies LLC was leading the deal that would have repriced the term loan down from Libor plus 400 bps with a 25 bps step-down and a 1% Libor floor.

Young Innovations is an Algonquin, Ill.-based developer and manufacturer of consumable dental products.

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