Flexera Software, MedRisk allocate; Consolidated Container launches loan repricing

By Paul A. Harris

Portland, Ore., Jan. 25 – CLO-driven demand for paper is keeping the leveraged loan market well bid, which is the key factor for an investor who took a telephone call on Tuesday.

Repricings may be diminishing spreads, and the Libor floor may be following the passenger pigeon into extinction, but on a price basis the performance of the asset class has been rock solid, thanks mainly to the rampant CLO demand.

And although it seems as though repricings dominate the news, the 2018 market has been fifty-fifty new paper and repricings, the investor said, adding that a lot of potential repricing candidates remain within their six-month call protection.

Retail cash, in particular ETF cash, has tended to be mixed since late last year, the investor said.

However, flows are mildly positive in 2018, to date.

It's conceivable that in a rising-rate environment the stock market might be laying claim to some of that retail cash.

And if the 10-year Treasury hits 3% some retail cash will perhaps migrate into government paper as well, the investor said.

In the primary market, the loan paper of Flexera Software LLC and MedRisk LLC allocated and broke higher.

And Consolidated Container Co. LLC launched the repricing of its $603.5 million term loan B.

Flexera allocates

Flexera Software's upsized $550 million Libor plus 325 basis points eight-year second-lien term loan (B1/B-) priced at 99.75, allocated and traded to 100.75 bid, 101.75 offered. The deal, which was upsized from $525 million, had been talked at 99.50.

The downsized $125 million Libor plus 725 bps second-lien loan (Caa1/CCC+) priced at 99.5 and broke to 101 bid. Initial talk on that tranche was 750 bps to 775 bps at 99.

Both tranches have a 1% Libor floor.

Jefferies LLC, Barclays and Bank of America Merrill Lynch are the bookrunners on the deal.

Proceeds will be used with equity to refinance existing debt and fund the purchase of a minority equity stake in the company by TA Associates.

MedRisk allocates

The MedRisk $445 million Libor plus 300 bps seven-year first-lien term loan (B2/B) priced at 99.75, allocated and broke to 100.25 bid. The deal, which has a 0% Libor floor, had been talked at 325 bps to 350 bps with an original issue discount of 99.5.

The $200 million Libor plus 675 bps eight-year second-lien term loan (Caa2/CCC+) priced at 99.5, allocated and also broke to 100.25 bid. The second-lien deal, which also has a 0% Libor floor, had been talked at 725 bps to 750 bps, at a discount of 99.

Jefferies, Antares Capital, Barclays and Nomura are the lead arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by the Carlyle Group from TA Associates.

Consolidated Container talk

Consolidated Container launched the repricing of its $603.5 million term loan B due May 22, 2024 (B3/B+) on Thursday with talk of Libor plus 300 bps.

The loan has a 1% Libor floor and is being offered at par.

The bookrunners for the repricing are Barclays, Citigroup, Credit Suisse and Macquarie with Barclays on the left. Barclays is the administrative agent.

Commitments are due by 12 p.m. ET on Feb. 1.

Compuware sets talk

Compuware Corp. set price talk at Libor plus 375 bps to 400 bps for the repricing of its existing first-lien term loan and a $45 million incremental facility.

The transaction, launched with a call on Thursday, will have a 1% Libor floor and be offered at par.

Jefferies is the lead bank.

Part of the proceeds from the incremental loan will be used to pay down existing second-lien debt.

MSX add-on allocates

The MSX International upsized €100 million add-on first-lien term loan B due January 2024 allocated on Thursday.

The deal, which was upsized from €85 million, priced at Euribor plus 475 bps with a 0% floor for Euribor and a price of par.

Previously the add-on was talked at Euribor plus 550 bps with a 0% floor and an offer price of par, matching current pricing on the term loan B.

HSBC and Nomura are the bookrunners on the deal. RBC is the agent.

Proceeds from the incremental loan will be used to fund an acquisition and to pay related fees and expenses. The additional funds from the upsizing will be used to repay revolving credit facility borrowings.

Global University widens

Global University Systems (GUS Finco II) widened pricing on the euro and dollar tranches of its planned new credit facility and shifted funds between the tranches.

The seven-year euro term loan B was increased to €340 million from the launch size of €300 million and pricing was eased to Euribor plus 475 bps versus initial price thoughts of Euribor plus 425 bps.

Left unchanged were the price of 99.5 and the 0% floor for Euribor.

The seven-year dollar term B was downsized to $100 million from $150 million at launch and pricing was similarly widened out to Libor plus 475 bps from Libor plus 425 bps originally.

Again the price of 99.5 and the 0% floor, in this case for Libor, were left unchanged.

Global University made no changes to its £150 million seven-year term B, which continues to be priced at Libor plus 450 bps with a 0% Libor floor.

Commitments are now due by 7 a.m. ET on Jan. 26, pushed back from Jan. 24.

The facility also includes a £75 million six-year revolver talked at Libor plus 375 bps with a 0% Libor floor.

HSBC is the global coordinator on the deal (B3/B/BB-), and Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs and BMO Capital Markets are bookrunners and mandated lead arrangers.

Proceeds will be used to refinance existing debt, including the Lake Bridge International plc senior secured notes due 2020, and to fund an acquisition.

Zotec bank meeting Friday

Zotec Partners will hold a bank meeting at 10 a.m. ET on Friday to launch a $325 million credit facility (B3).

The facility includes a $305 million first-lien term loan and a $20 million revolver.

Goldman Sachs and Wells Fargo are the leads with Goldman on the left.

Syniverse launching loan

Syniverse Holdings Inc. will launch a $1.67 billion credit facility with a bank meeting scheduled for 1 p.m. ET on Monday.

The facility includes a $1,552,000,000 first-lien term loan facility and a $120 million revolver.

Goldman Sachs and Barclays are the lead arrangers with Goldman on the left.

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