Ellucian, McGraw-Hill, Interline break; CEVA, Zuffa, Hudson Products, Knowledge revised

By Sara Rosenberg

New York, March 12 - Ellucian's term loan freed up for trading on Wednesday with levels seen above its issue price, and McGraw-Hill Global Education Holdings LLC and Interline Brands Inc. hit the secondary market as well.

Moving to the primary, CEVA Group plc widened the price talk and original issue discount on its term loan and sweetened the call protection, Zuffa LLC upsized its term loan and set pricing at the high end of talk, and Hudson Products Corp. lowered the spread on its term loan.

Also, Knowledge Universe Education LLC firmed pricing on its term loan at the low end of guidance while revising the original issue discount and call protection, and Avast accelerated the commitment deadline on its credit facility.

Furthermore, Kindred Healthcare Inc., Entegris Inc. and Progrexion (PGX Holdings Inc.) came out with price talk in connection with their launches.

Ellucian starts trading

Ellucian's (Sophia LP) $998 million term loan B (B1) due July 19, 2018 surfaced in the secondary market on Wednesday, with levels quoted at par ¼ bid, par 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 300 basis points with a 1% Libor floor and it was issued at par. There is 101 soft call protection for six months.

During syndication, a step-down in pricing to Libor plus 275 bps at net total opco leverage of 5.35 times was removed.

Proceeds will reprice an existing term loan down from Libor plus 325 bps with a 1.25% Libor floor.

Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal.

Ellucian is a Fairfax, Va.-based provider of software and services to the education community.

McGraw-Hill frees up

McGraw-Hill Global Education's roughly $688 million first-lien covenant-light term loan (B2/B+) due March 2019 also began trading, with levels quoted at par ¾ bid, 101¼ offered, a trader said.

The term loan is priced at Libor plus 475 bps with a 1% Libor floor and was issued at par. There is 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan from Libor plus 775 bps with a 1.25% Libor floor.

McGraw-Hill Education is a New York-based digital learning company.

Interline tops OID

Interline Brands' $350 million first-lien term loan B (B2/B) broke as well, with levels seen at par bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor and it was sold at an original issue discount of 993/4. There is 101 soft call protection for six months.

Recently, pricing on the loan was cut from Libor plus 350 bps and the discount was tightened from 991/2.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Keybanc Capital Markets are leading the deal that will be used to fund a tender offer expiring on March 25 for the company's 7½% notes due 2018, to pay down some revolver debt and for working capital and general corporate purposes.

Interline is a Jacksonville, Fla.-based distributor and direct marketer of broad-line maintenance, repair and operations products to the facilities maintenance end-market.

CEVA changes emerge

In the primary market, CEVA raised the price talk on its $875 million seven-year first-lien covenant-light term loan to Libor plus 550 bps to 575 bps from Libor plus 500 bps, revised the original issue discount to 98 from 99, and modified the soft call protection to 102 in year one and 101 in year two from 101 for six months, according to a market source.

The term loan, of which $275 million is for a synthetic letter-of-credit facility, still has a 1% Libor floor.

The company's $1,125,000,000 credit facility (B2/B-) also includes a $250 million five-year revolver.

Commitments are due at 3 p.m. ET on Thursday, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., UBS Securities LLC and Apollo are leading the deal that will be used with $825 million in notes to refinance existing credit facility and bond debt, and pre-fund letters of credit.

Tender offers for the London-based supply chain management company's notes expire on March 31.

Zuffa tweaks deal

Zuffa lifted its term loan (BB+) due February 2020 to $475 million from $446 million and firmed the spread at Libor plus 300 bps, the wide end of the Libor plus 275 bps to 300 bps talk, according to a market source.

As before, the term loan has a 0.75% Libor floor, a par offer price and 101 soft call protection for one year.

Recommitments were due at noon ET on Wednesday and allocations are targeted for Thursday morning, the source remarked.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and RBC Capital Markets are leading the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor, and the funds from the upsizing will be used to repay revolver borrowings.

Zuffa is a Las Vegas-based sports and media company that owns the Ultimate Fighting Championship (UFC).

Hudson trims spread

Hudson Products cut pricing on its $270 million five-year covenant-light term loan to Libor plus 400 bps from talk of Libor plus 425 bps to 450 bps, and kept the 1% Libor floor, original issue discount of 99½ for new money and 101 soft call protection for six months intact, a market source said.

The company's $300 million credit facility (B2/B-) also includes a $30 million 41/2-year revolver.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing debt and fund a dividend.

Hudson Products is a Beasley, Texas-based designer and manufacturer of air-cooled heat exchanger equipment to serve the oil, gas and petrochemical processing industries.

Knowledge updates terms

Knowledge Universe Education finalized pricing on its $270 million seven-year term loan B at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, changed the original issue discount to 99½ from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan still has a 1% Libor floor.

Commitments for the company's $340 million credit facility (B), which also includes a $70 million five-year revolver, are due at 5 p.m. ET on Thursday.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and BMO Capital Markets are leading the deal that will be used to refinance existing debt.

Knowledge Universe is a Singapore-based provider of early childhood and teacher education.

Avast revises deadline

Avast moved up the commitment deadline on its $460 million credit facility (B1/B+) to 5 p.m. ET on Friday from Tuesday, according to a market source.

The facility consists of a $40 million five-year revolver, and a $420 million six-year first-lien covenant-light term loan talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, UBS Securities LLC and Jefferies Finance LLC are leading the deal that will be used to help fund a major investment in the company by CVC Capital Partners that values the company at $1 billion.

Closing is expected this month.

Avast is a Czech Republic-based provider of security software for PCs, smartphones and tablets.

Kindred sets talk

Kindred Healthcare held its lender call on Wednesday, launching its $1 billion senior secured seven-year term loan B with talk of Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99½ to 99¾ and 101 soft call protection for six months, according to an 8-K filed with the Securities and Exchange Commission.

Also, the company's $750 million five-year ABL revolver was launched at Libor plus 200 bps to 250 bps based on availability with a 37.5 bps undrawn fee and a 25 bps upfront fee.

Term loan B commitments are due on March 25 and revolver commitments are due on March 26, the filing said. Closing is targeted for April 9.

J.P. Morgan Securities LLC is leading the $1.75 billion credit facility that will be used with other unsecured debt to refinance existing secured and senior unsecured debt.

Pro forma for the transaction, the Louisville, Ky.-based health care services company will have senior secured leverage of 3.18 times and total leverage of 4.58 times based on Dec. 31 adjusted EBITDA of $361 million.

Atkore launches

Atkore held its bank meeting, launching its $420 million seven-year first-lien covenant-light term loan (B3) with talk of Libor plus 400 bps with a 1% Libor floor and an original issue discount of 991/2, and its $250 million 71/2-year second-lien covenant-light term loan (Caa2) with talk of Libor plus 725 bps with a 1% Libor floor and a discount of 99, a source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at noon ET on March 25, the source added.

Deutsche Bank Securities Inc., UBS Securities LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities LLC are leading the $670 million deal that will fund the acquisition of the remaining 37% of Atkore by Clayton, Dubilier & Rice and refinance existing debt.

Atkore is a Harvey, Ill.-based manufacturer of primarily non-residential building products.

Entegris reveals guidance

Entegris disclosed talk of Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $460 million seven-year covenant-light term loan B (Ba3/BB+) that launched with a meeting during the session, a market source said.

Commitments are due at 3 p.m. ET on March 25, the source added.

The company's $545 million senior secured credit facility also includes an $85 million asset-based revolver.

Goldman Sachs Bank USA is leading the deal.

At close, the company expects to have 3.3 times of total debt to 2013 pro forma EBITDA, or two times EBITDA on a net basis.

Entegris buying ATMI

Proceeds from Entegris' credit facility will be used with $360 million of senior unsecured notes to fund the acquisition of ATMI Inc. for $34 in cash, or about $1.15 billion on a fully diluted basis.

Closing is expected in the second quarter, subject to the regulatory approvals of both U.S. and international regulators, approval by ATMI shareholders and other customary conditions.

Entegris is a Billerica, Mass.-based provider of products for purifying, protecting and transporting critical materials used in processing and manufacturing in semiconductor and other high-tech industries. ATMI is a Danbury, Conn.-based provider of specialty semiconductor materials, and safe, high-purity materials handling and delivery services.

Progrexion discloses pricing

Progrexion launched with a meeting its $325 million seven-year first-lien covenant-light term loan with talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company's $330 million first-lien credit facility (B2/B) also includes a $5 million revolver.

Commitments are due at 5 p.m. ET on March 21, the source remarked.

Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal that will be used by the provider of credit repair services to refinance existing debt and fund a dividend.

Synarc-BioCore closes

In other news, the creation of Synarc-BioCore Holdings LLC through the merger of CCBR-Synarc, a Newark, Calif.-based provider of clinical services to pharmaceutical and biotechnology companies, and BioClinica Inc., a Newton, Pa.-based provider of integrated, technology-enhanced clinical trial management services, has been completed, a news release said.

For the merger, Synarc-BioCore got a new $365 million credit facility that includes a $40 million revolver (B1/B-), a $225 million seven-year first-lien covenant-light term loan (B1/B-) and a $100 million eight-year second-lien covenant-light term loan (Caa1/CCC).

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and KeyBanc Capital Markets led the deal.

Synarc pricing details

Pricing on Synarc-BioCore's first-lien term loan is Libor plus 450 bps, after finalizing during syndication at the wide end of the Libor plus 425 bps to 450 bps talk. The loan has a 1% Libor floor and 101 soft call protection for six months, and was sold at an original issue discount of 99.

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

Synarc-BioCore is a clinical imaging and patient recruitment company for pharmaceutical and CRO clinical trials.

Accellent wraps

Accellent Inc. closed on its purchase of Lake Region Medical, according to a news release, and to help fund the transaction, the company got a new $1.13 billion credit facility.

The facility consists of a $75 million five-year revolver (B2/B), an $835 million seven-year first-lien term loan (B2/B) priced at Libor plus 350 bps with a 1% Libor floor, sold at par and having 101 soft call for six months, and a $220 million eight-year second-lien term loan (Caa2/CCC+) priced at Libor plus 650 bps with a 1% Libor floor, sold at 99¾ and having call protection of 102 in year one and 101 in year two.

During syndication, the first-lien loan was lifted from $795 million, the spread came at the low end of the Libor plus 350 bps to 375 bps talk and the offer price moved from 991/2, and the second-lien loan was trimmed from $260 million, the spread was cut from talk of Libor plus 725 bps to 750 bps and the discount was changed from 99.

UBS Securities LLC (left on first-lien), Goldman Sachs Bank USA (left on second-lien) and KKR Capital Markets LLC led the deal for Accellent, a Wilmington, Mass.-based provider of fully integrated outsourced manufacturing and engineering services to the medical device industry.

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