Process Solutions, Flexera break; ION tweaked; Charter NEX, Radiology Partners accelerated

By Sara Rosenberg

New York, April 30 – Process Solutions set the spread on its first-lien term loan at the wide end of guidance, and Flexera Software LLC shifted some funds between its incremental first-and second-lien term loans and tightened original issue discounts on the debt, and then both of these deals freed up for trading on Tuesday.

Also, ION Investment Group made some documentation changes to its term loans and extended the commitment deadline, and Charter NEX US Inc. and Radiology Partners Inc. moved up the commitment deadlines for their incremental first-lien term loans.

In addition, Oryx Midstream Services (Lower Cadence Holdings LLC), Avolon, Royalty Pharma and AL Midcoast Holdings LLC disclosed price talk with launch, and Alliant Holdings Intermediate LLC emerged with new deal plans.

Process updated, trades

Process Solutions firmed pricing on its $355 million seven-year covenant-lite first-lien term loan at Libor plus 600 basis points, the high end of the Libor plus 575 bps to 600 bps talk, a market source remarked.

The term loan still has a 0% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

The company’s $405 million of credit facilities (B/BB-) also include a $50 million revolver.

After pricing finalized, the term loan broke for trading on Tuesday at 98 bid, 99 offered, the source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA 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 from Newell Brands.

Closing is expected this quarter, subject to regulatory approval and other customary conditions.

Process Solutions is a Greenville, S.C.-based manufacturer and material sciences company that offers custom-designed plastic, nylon, monofilament and zinc products in the health care, consumer and industrial end markets.

Flexera revised

Flexera Software raised its fungible incremental first-lien term loan due February 2025 to $235 million from $220 million and modified the original issue discount to 99.5 from 99, according to a market source.

Furthermore, the company trimmed its fungible incremental second-lien term loan due February 2026 to $25 million from $40 million and changed the discount to 99 from 98.75, the source said.

As before, the incremental first-lien term loan is priced at Libor plus 350 bps with a 25 bps leverage based step-down and a 1% Libor floor and has 101 soft call protection for six months, and the incremental second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor, in line with existing second-lien loan pricing, and has the same call protection as the existing second-lien loan.

In connection with this transaction, pricing on the company’s existing first-lien term loan is being increased to Libor plus 350 bps from Libor plus 325 bps, and a corresponding amendment is being done, for which lenders were offered a 15 bps amendment fee.

Flexera frees up

During the session, Flexera’s incremental debt surfaced in the secondary market, with the first-lien term loan quoted at 99¾ bid, par ¼ offered and the second-lien term loan quoted at 99¼ bid, par offered, another source added.

Jefferies LLC is leading the $260 million of incremental term loans that will be used to fund a distribution to shareholders.

Flexera is an Itasca, Ill.-based provider of software and services that enable software publishers and device makers to install, enforce and deploy software licenses.

ION changes emerge

Back in the primary market, ION Investment Group increased amortization on its $2.21 billion equivalent of term loans (B3) to 3% in year one, 4% in year two, 5% in year three and 1% per annum thereafter, from 1% per annum, according to a market source.

Also, the company added an 18-month limitation on debt funded acquisitions, incremental leverage that requires an amendment and additional dividends, the source said.

And, the commitment deadline was extended to the close of business on Friday from a revised deadline of Tuesday and an initial deadline of April 24.

The debt is split between a $400 million equivalent U.S. and euro four-year term loan and a $1.81 billion equivalent U.S. and euro seven-year term loan.

ION proposed terms

Price talk on ION’s U.S. four-year term loan is Libor plus 475 bps with a 0% Libor floor and an original issue discount of 99, and talk on the euro four-year term loan is Euribor plus 425 bps with a 1% floor and a discount of 99.

The U.S. seven-year term loan is talked at Libor plus 550 bps with a 0% Libor floor and a discount of 98.5, and the euro seven-year term loan is talked at Euribor plus 500 bps with a 1% floor and a discount of 98.5.

The term debt has 101 soft call protection for one year.

Last week, the deal was revised to add the four-year tranche and downsize the seven-year tranche from $2.2 billion equivalent, and extend the call protection from six months.

UBS Investment Bank is leading the deal that will be used for the refinancing of ION’s corporates division, which include Openlink Financial LLC, Wall Street Systems, Triple Point Technology and Allegro.

ION is a provider of mission-critical trading and workflow automation software solutions to financial institutions, central banks, governments and corporations.

Charter NEX tweaks timing

Charter NEX revised the commitment deadline for its $660 million non-fungible incremental first-lien term loan due May 16, 2024 to 3 p.m. ET on Wednesday from Friday, a market source said.

Talk on the term loan is Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company is also getting a $25 million incremental revolver due May 16, 2022.

Jefferies LLC and Nomura are leading the deal that will be used to fund the merger of Charter NEX and Next Generation Films.

Leonard Green and Oak Hill are the sponsors.

Closing is expected by June.

Charter NEX is a manufacturer of highly engineered specialty films, focused on the stable food and medical end-markets. Next Generation is a supplier of specialty films.

Radiology Partners accelerated

Radiology Partners moved up the commitment deadline for its fungible $240 million incremental first-lien term loan B to 5 p.m. ET on Wednesday from noon ET on Thursday, a market source remarked.

Talk on the incremental term loan is Libor plus 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection until Aug. 12.

Barclays, Deutsche Bank Securities Inc., Fifth Third Bank and Golub are leading the incremental first-lien term loan that will be used with a $120 million privately placed incremental second-lien term loan to fund acquisitions currently under letters of intent.

Including the incremental debt, the company’s first-lien term loan will total $1,403,000,000.

New Enterprise Associates is the sponsor.

Radiology Partners is an El Segundo, Calif.-based radiology physician practice management company.

Oryx releases talk

Oryx Midstream Services held its bank meeting on Tuesday and disclosed talk for its $1.5 billion seven-year term loan B (B2/B/BB) at Libor plus 450 bps with a 0% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on May 10, the source said.

The $1.65 billion of credit facilities also include a $150 million five-year super-priority revolver.

Barclays, Goldman Sachs Bank USA, RBC Capital Markets and Jefferies LLC are leading the debt that will be used to help fund the roughly $3.6 billion acquisition of the company by Stonepeak Infrastructure Partners, to refinance the existing Oryx Southern Delaware Holdings LLC facility, to consolidate Oryx Southern Delaware Holdings and Oryx Delaware Holdings LLC into a single borrower, to fund the required reserve accounts and for general corporate purposes.

Oryx, a Midland, Tex.-based midstream crude operator in the Permian Basin, is being bought from Quantum Energy Partners, Post Oak Energy Capital, Concho Resources, WPX Energy and other investors.

Avolon sets guidance

Avolon came out with talk of Libor plus 150 bps to 175 bps with a 0.75% Libor floor, an original issue discount of 99.75 to 99.875 and 101 soft call protection for six months on its $3,381,768,173 term loan B-3 due Jan. 15, 2025 that launched with a morning call, a market source remarked.

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

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to reprice an existing term loan B-3 down from Libor plus 200 bps with a 0.75% Libor floor.

Avolon is an Ireland-based provider of aircraft leasing and lease management services.

Royalty Pharma launches

Royalty Pharma launched in the morning its $800 million seven-year incremental term loan B at talk of Libor plus 225 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

Commitments are due at noon ET on May 7, the source said.

Bank of America Merrill Lynch is the left lead on the deal that will be used with a $200 million term loan A and cash on hand to fund the potential acquisition of a royalty stream in Keytruda, a medicine that may treat certain cancers by working with the immune system.

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

Midcoast holds call

AL Midcoast Holdings surfaced in the morning with plans to host a lender call at 2 p.m. ET on Tuesday to launch a fungible $50 million incremental first-lien term loan due August 2025 talked with an original issue discount of 99.75, a market source remarked.

Like the existing first-lien term loan, the incremental loan is priced at Libor plus 550 bps with a 0% Libor floor.

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

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

Midcoast is a provider of natural gas and natural gas liquids services.

Alliant joins calendar

Alliant Holdings scheduled a lender call for 11 a.m. ET on Wednesday to launch a $505 million incremental senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the debt that will be used to fund a distribution, repay revolver borrowings, fund general corporate purposes and pay related fees and expenses.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

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