RV Retailer, HudsonRiver, Golden Nugget, SRS break for trading; Addison moves deadline

By Sara Rosenberg

New York, Jan. 13 – RV Retailer set the spread on its incremental term loan B and repricing of its existing term loan B at the high end of guidance, and Hudson River Trading LLC increased the size of its incremental first-lien term loan B and changed the original issue discount, and then these deals freed to trade on Thursday.

Other deals to make their way into the secondary market during the session, included Golden Nugget LLC (Fertitta Entertainment LLC) and SRS Distribution Inc.

In more happenings, Addison Group accelerated the commitment deadline for its term loan B, and NortonLifeLock Inc., Intelsat Jackson Holdings SA, XLerate Group (American Auto Auction Group LLC) and RelaDyne Inc. announced price talk with launch.

Additionally, Syniverse Holdings Inc. and Planet Home Lending LLC joined the near-term calendar.

RV updated, trades

RV Retailer firmed pricing on its fungible $200 million incremental term loan B due February 2028 and repricing of its existing $596 million term loan B due February 2028 at SOFR+CSA plus 375 basis points, the high end of the SOFR+CSA plus 350 bps to 375 bps talk, according to a market source.

As before, the term loan debt (B1/BB-) has a 0.75% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection, the incremental term loan has an original issue discount of 99.5 and the repricing has a par issue price.

Th term loan debt freed to trade on Thursday afternoon, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Goldman Sachs Bank USA is leading the deal.

The incremental term loan will be used to fund the company’s near-term acquisition pipeline and the repricing will change pricing on the existing term loan from Libor plus 400 bps with a 0.75% Libor floor.

Redwood Capital is the sponsor.

RV Retailer is a recreational vehicle retail company.

Hudson tweaked, frees

Hudson River Trading raised its fungible incremental first-lien term loan B due March 18, 2028 (Ba2/BB-/BB) to $225 million from $100 million and adjusted the original issue discount to 98.75 from 98.56, a market source remarked.

Pricing on the incremental term loan remained at SOFR+CSA plus 300 bps with a 0% floor. CSA is 0.11448% for one month, 0.26161% for three months and 0.42826% for six months.

With this transaction, the company is amending its existing facility to migrate to SOFR subject to a negative consent amendment, and amending its revolver to allow for the securing of a pari passu revolver under the existing general liens basket.

Recommitments were due at 11:30 a.m. ET on Thursday and the incremental term loan broke for trading later in the day, with levels quoted at 99¼ bid, 99¾, the source added.

Goldman Sachs Bank USA, BofA Securities Inc. and JPMorgan Chase Bank are leading the deal that will be used for general corporate purposes, including additional trading capital.

Closing is expected on Friday.

Hudson River Trading is a New York-based electronic market maker and liquidity provider.

Golden Nugget breaks

Golden Nugget’s $3.3 billion seven-year first-lien term loan began trading during the session, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is SOFR+CSA plus 400 bps with two leverage-based step-downs and a 0.5% floor. The debt was sold at an original issue discount of 99.75, and has 101 soft call protection for six months and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

During syndication, the term loan was downsized from a revised amount of $3.45 billion but upsized from an initial amount of $1.85 billion, and the discount was tightened from 99.5.

The company’s $3.8 billion of credit facilities also include a $500 million five-year revolver.

Golden Nugget refinancing

Golden Nugget will use the new credit facilities to help refinance about $4.6 billion of existing debt, including 6.75% senior notes due 2024 and 8.75% senior subordinated notes due 2025, to pay fees and expenses related to the transactions and for general corporate purposes.

The transaction is also being funded from $1 billion of senior secured notes, upsized from a revised amount of $850 million but downsized from an initial amount of $1.85 billion, and $1.25 billion of senior unsecured notes, which were downsized from $1.85 billion.

Jefferies LLC, Deutsche Bank Securities Inc., Rabobank, Capital One, Citigroup Global Markets Inc., Citizens Bank, KeyBanc Capital Markets, Morgan Stanley Senior Funding Inc., Truist and PNC are leading the credit facilities.

Golden Nugget is a Las Vegas-based diversified restaurant, hospitality, entertainment and gaming company.

SRS hits secondary

SRS Distribution’s non-fungible $800 million incremental term loan due 2028 freed to trade too, with levels quoted at par bid, par ¼ offered, a market source said.

Pricing on the term loan is SOFR+10 bps CSA plus 350 bps with a 25 bps step-down at 3.6x net first-lien leverage and a 0.5% floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, the term loan was upsized from $700 million, pricing was lowered from SOFR plus 375 bps, the step-down was added and the discount firmed at the tight end of the 99 to 99.5 talk.

BofA Securities Inc. and Barclays are leading the deal that will be used to help fund acquisitions, including the recently completed purchase of AquaCentral, a distributor of pool equipment and supplies, from Tenex Capital Management and, due to the recent upsizing, for general corporate purposes.

SRS Distribution is a McKinney, Tex.-based building materials distributor.

Addison accelerated

Back in the primary market, Addison Group moved up the commitment deadline for its $525 million term loan B (B) to 5 p.m. ET on Tuesday from Wednesday, a market source remarked.

Talk on the term loan is Libor plus 450 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company is also getting a $65 million ABL revolver.

KKR Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Trilantic North America from Odyssey Investment Partners LLC.

Addison Group is a Chicago-based professional services firm specializing in talent solutions and consulting services.

NortonLifeLock launches

NortonLifeLock launched on its Thursday afternoon call its up to $3.6 billion seven-year covenant-lite term loan B (Ba1/BB/BBB-) at talk of SOFR+CSA plus 225 bps to 250 bps with a 0.5% floor and an original issue discount of 99.5, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan B has 101 soft call protection for six months.

Commitments are due at noon ET on Jan. 27.

In August, the company raised a $1.75 billion five-year term loan A. The size of the term loan B may be reduced with up to $500 million of additional term loan A borrowings.

Pricing on the term loan A can range from SOFR+CSA plus 112.5 bps to 175 bps based on credit ratings and total leverage, with a 0% floor, and lenders are offered a 25 bps new money upfront fee for term loan A commitments.

NortonLifeLock leads

BofA Securities Inc., Wells Fargo Securities LLC, Bank of Nova Scotia, Mizuho, Truist Securities, MUFG, BNP Paribas Securities Corp. and BMO Capital Markets are leading NortonLifeLock’s financing.

The term loans will be used with about $1.8 billion of cash on hand and Norton equity to be issued to fund the acquisition of Avast. The transaction values Avast’s ordinary share capital between $8.1 billion and $8.6 billion, depending on Avast shareholders’ elections.

Pro forma total leverage is 4.2x and secured leverage is 3.2x based on LTM Oct. 1, 2021 reported pro forma adjusted EBITDA of $2.2 billion, including $280 million of expected annual gross cost synergies.

NortonLifeLock is a Tempe, Ariz.-based provider of consumer cyber safety. Avast is a Prague-based provider of digital security and privacy.

Intelsat guidance

Intelsat held its call in the morning, launching its up to $3.375 billion DIP-to-exit seven-year term loan (B3/B+/BB-), of which $2.875 billion will be syndicated, at talk of SOFR+CSA plus 425 bps to 450 bps with a 0.5% floor and an original issue discount of 99, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Jan. 25, the source added.

Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used with $3 billion of senior secured bonds, which will not be syndicated, to fund the company’s emergence from Chapter 11.

Intelsat is a Luxembourg-based satellite telecommunications company.

XLerate proposed terms

XLerate Group came out with price talk on its $570 million six-year first-lien term loan (B2/B-) and $180 million seven-year second-lien term loan (Caa2/CCC) shortly before its morning bank meeting kicked off, a market source remarked.

Talk on the first-lien term loan is SOFR+CSA plus 475 bps to 500 bps with a 25 bps step-down at 0.5x inside closing total net leverage, a 0.75% floor and an original issue discount of 99, and talk on the second-lien term loan is SOFR+CSA plus 850 bps to 875 bps with a 25 bps step-down at 0.5x inside closing total net leverage, a 0.75% floor and a discount of 98, the source continued.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

XLerate getting revolver

In addition to the first- and second-lien term loans, XLerate’s $810 million of credit facilities include a $60 million five-year revolver (B2/B-).

Commitments are due at 4 p.m. ET on Jan. 27, the source added.

Jefferies LLC, BofA Securities Inc. and BMO Capital Markets are leading the deal that will be used with new cash equity to fund the acquisition of America’s Auto Auction by Brightstar Capital Partners-owned XLerate.

Carmel, Ind.-based XLerate and Dallas based America’s Auto Auction are vehicle auction companies.

RelaDyne sets talk

RelaDyne launched on its morning call its $540 million seven-year first-lien term loan (B2/B) at talk of SOFR plus 450 bps with a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Jan. 27, the source added.

The company’s $855 million of credit facilities also include a $150 million ABL revolver and a $165 million eight-year privately placed second-lien term loan.

RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, Macquarie Capital (USA) Inc. and Golub Capital are leading the deal that will be used to support the recently completed buyout of the company by American Industrial Partners from Audax Private Equity, and refinance an existing roughly $450 million first-lien term loan and a roughly $140 million second-lien term loan.

RelaDyne is a Cincinnati-based provider of lubricants and distributor of less-than-truckload fuel, diesel exhaust fluid, chemicals and other related products.

Syniverse coming soon

Syniverse will hold a lender call at 1 p.m. ET on Tuesday to launch its previously announced $1 billion seven-year term loan, a market source remarked.

The term loan has 101 soft call protection for six months, the source added.

Barclays, Goldman Sachs Bank USA, Mizuho, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and Societe Generale are leading the deal that will be used to refinance the company’s existing capital structure in connection with its merger with M3-Brigade Acquisition II Corp., a publicly traded special purpose acquisition company.

The merger agreement implies an initial enterprise value for Syniverse of $2.85 billion.

The Carlyle Group, Syniverse’s current majority owner, will retain all of its current investment in Syniverse and be the largest shareholder in the newly publicly traded company.

Syniverse is a Tampa, Fla.-based technology provider of mission-critical mobile platforms for carriers and enterprises.

Planet Home on deck

Planet Home Lending set a lender call for Tuesday to launch a $300 million five-year term loan talked at SOFR+CSA plus 425 bps to 450 bps with a 0.5% floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due on Feb. 1, the source added.

M&T Bank is leading the deal that will be used to refinance existing debt and fund the company’s growth.

Plant Home is a mortgage lender.

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