Autoparts, Syncsort, Minimax Viking break; Global Eagle Entertainment changes surface

By Sara Rosenberg

New York, Dec. 21 – Autoparts Holdings (Fram Group Holdings Inc.) finalized the spread on its first-lien term loan at the wide end of talk and then freed up for trading on Wednesday, and Syncsort Inc. and Minimax Viking broke as well.

Also during the session, Global Eagle Entertainment Inc. increased the size of its first-lien term loan, widened the spread as well as the original issue discount, sweetened the call protection and eliminated plans for a second-lien term loan.

Autoparts firms, trades

Autoparts set pricing on its $215 million five-year first-lien term loan at Libor plus 675 basis points, the high end of the Libor plus 650 bps to 675 bps talk, and left the 1% Libor floor, original issue discount of 98 and 101 soft call protection for one year unchanged, according to a market source.

Earlier in syndication, the term loan was downsized from $245 million.

With final terms in place, the term loan made its way into the secondary market on Wednesday, and levels were quoted at 98½ bid, 99½ offered, the source said.

The company’s $240 million credit facility also includes a $25 million ABL revolver.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help refinance existing debt. As a result of the recent term loan downsizing, $30 million of equity is being used for the refinancing as well.

Autoparts is a Lake Forest, Ill.-based manufacturer of filtration products and spark plugs for the automotive aftermarket.

Syncsort frees up

Syncsort’s credit facility broke for trading, with the $290 million six-year first-lien term loan (B2/B+) seen at 99 bid, par offered and the $65 million seven-year second-lien term loan (Caa2/CCC+) seen at 98½ bid, 100½ offered, a trader said.

The first-lien term loan is priced at Libor plus 525 bps with a 1% Libor floor and was sold at an original issue discount of 99. This tranche has 101 soft call protection for one year.

Pricing on the second-lien term loan is Libor plus 950 bps with a 1% Libor floor, and it was issued at a discount of 98.5. The loan has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $280 million, pricing was lifted from Libor plus 450 bps, and the call protection was extended from six months, and the second-lien term loan was downsized from $80 million, and pricing was increased from Libor plus 900 bps.

Syncsort lead banks

Credit Suisse Securities (USA) LLC, Antares Capital and SunTrust Robinson Humphrey are leading Syncsort’s $390 million credit facility, which includes a $35 million revolver (B2/B+) in addition to the term loans.

Proceeds will be used to fund the acquisition of Trillium Software from Harte Hanks Inc. and to refinance existing debt.

Due to the changes to the term loan sizes, the company will use $5 million more of cash on hand to fund the transaction.

Closing is subject to regulatory approvals and other customary conditions.

Syncsort, a Clearlake Capital Group portfolio company, is a Woodcliff Lake, N.J.-based provider of enterprise software and data solutions. Trillium is a Burlington, Mass.-based provider of data quality solutions.

Minimax hits secondary

Minimax Viking’s $357.8 million term loan B freed to trade too, with levels quoted at 100¾ bid, 101¼ offered, a trader remarked.

Pricing on the U.S. term loan B is Libor plus 275 bps with a 0.75% 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 company is also getting a €304.1 million term loan B priced at Euribor plus 300 bps with no floor and issued at par. This tranche also has 101 soft call protection for six months.

During syndication, the discount on the U.S. term loan B firmed at the tight end of the 99.5 to 99.75 talk, and the discount on the euro term loan B was tightened from talk of 99.5 to 99.75.

Deutsche Bank Securities Inc. is the left bookrunner on the deal that will be used to amend and extend by three years to August 2023 the company’s existing term loan B’s.

Closing is expected on Dec. 30.

Minimax Viking is a Bad Oldesloe in Schleswig-Holstein, Germany-based fire protection company.

Global Eagle reworked

Back in the primary market, Global Eagle Entertainment increased its first-lien term loan to $500 million from $460 million, raised pricing to Libor plus 600 bps from Libor plus 525 bps, moved the original issue discount to 97 from talk of 98 to 99 and changed the call protection to now non-callable for one year, then hard call protection of 102 in year two and 101 in year three, from 101 soft call protection for six months, according to a market source.

In addition, the first-lien term loan maturity was shortened to six years from seven years, the 18-month MFN sunset was removed, setting the 50 bps MFN for the life of the deal, and the excess cash flow sweep was increased to 75% with step-downs, from 50%, the source said.

And, add-backs for cost savings, operating expense reductions and synergies were capped to 25% of consolidated EBITDA and the realization period for such transactions and initiatives was set to 18 months, from no cap and 24 months.

Global Eagle incremental

Global Eagle also modified the incremental allowance to the sum of $50 million, from $75 million, and an unlimited amount subject to, with respect to any first-lien incremental facility, closing date first-lien net leverage, with respect to any secured incremental facility, 4 times secured net leverage, from closing date secured net leverage, and with respect to any unsecured incremental facility 4.75 times total net leverage, from 5 times.

The first-lien term loan still has a 1% Libor floor.

Commitments were due at 5 p.m. ET on Wednesday.

Global Eagle drops second-lien

Along with the changes to the first-lien term loan, Global Eagle eliminated a $125 million eight-year second-lien term loan from its proposed capital structure, the source said.

The second-lien term loan had been talked at Libor plus 950 bps with a 1% Libor floor, a discount of 98, and hard call protection of 102 in year one and 101 in year two.

The company’s now $585 million senior secured deal (BB-) still provides for an $85 million five-year revolver.

Citigroup Global Markets Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance a roughly $265 million first-lien term loan, a roughly $92 million second-lien term loan and about $39 million of revolver borrowings at Emerging Markets Communications LLC and for general corporate purposes.

The reduced proceeds raised from the credit facility due to the removal of the second-lien term loan will decrease cash to the balance sheet, the source added.

Global Eagle is a Marina Del Rey, Calif.-based provider of satellite-based connectivity and media.

Ansira closes

In other news, the buyout of Ansira Partners Inc. by Advent International from KRG Capital Partners has been completed, according to a news release.

To help fund the transaction, Ansira got a new $300 million unitranche credit facility priced at Libor plus 650 bps with a 1% Libor floor and an original issue discount of 99.

The facility includes a $25 million revolver, a $240 million term loan and $35 million delayed-draw term loan.

The term loans have call protection of 102 in year one and 101 in year two.

Antares Capital led the deal.

Ansira is a St. Louis-based data-driven, technology-enabled marketing solutions provider.

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