ClubCorp term loan lower on buyout; Liquidnet, Archroma release final loan terms

By Sara Rosenberg

New York, July 10 – In the secondary market on Monday, ClubCorp’s term loan was softer following news that the company is being acquired by Apollo Global Management LLC.

Moving to the primary market, Liquidnet Holdings Inc. trimmed pricing on its first-lien term loan, and Archroma updated pricing on its U.S. and euro first-lien term loans.

Also, Hayward Industries Inc., YRC Worldwide Inc., Asurion LLC, Toledo Molding & Die Inc. and Sky Betting & Gaming released price talk with launch.

In addition, Global Tel*Link Corp. Inc., HD Supply Waterworks Ltd., eResearchTechnology Inc., U.S. Security Associates Inc., ASG Technologies Group Inc. and Arterra Wines Canada Inc. joined this week’s calendar.

ClubCorp dips

ClubCorp’s term loan headed lower in trading on Monday after it was announced that the company is being acquired by Apollo Global Management LLC, according to a trader.

The term loan was quoted at 100 3/8 bid, 100¾ offered, down from 100 5/8 bid, 100 7/8 offered, the trader said.

Apollo is purchasing the company for $17.12 per share in cash, or about $1.1 billion.

Financing for the transaction is being provided by Citigroup, RBC, Barclays, Credit Suisse and Deutsche Bank.

Closing is expected in the fourth quarter, subject to shareholder approval and other customary conditions.

ClubCorp is a Dallas-based owner and operator of private golf and country clubs and business, sports and alumni clubs.

Liquidnet flexes

Switching to the primary market, Liquidnet Holdings lowered pricing on its $200 million seven-year senior secured first-lien term loan (B1/B+) to Libor plus 425 basis points from talk of Libor plus 475 bps to 500 bps, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were due at noon ET on Monday, the source said.

Jefferies LLC is leading the deal that will be used to refinance an existing term loan, to fund the acquisition of OTAS Technologies and for general corporate purposes, including capital expenditures and potential future acquisitions.

Liquidnet is a New York-based regulated agency securities broker that operates a trading platform connecting asset managers to trade equities and fixed-income securities. OTAS is a London-based analytics platform that delivers actionable market intelligence and context to institutional traders and portfolio managers.

Archroma sets terms

Archroma finalized pricing on its $225 million first-lien term loan B-2 (B1/B) at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source remarked.

As for the company’s $455 million seven-year euro equivalent covenant-light first-lien term B-1 (B1/B), pricing was cut to Euribor plus 400 bps from talk of Euribor plus 425 bps to 450 bps, and the discount was tightened to 99.75 from 99.5, the source continued. This tranche still has a 0% floor and 101 soft call protection for six months.

The company’s $880 million equivalent credit facilities also include a $200 million eight-year privately placed second-lien term loan (Caa1).

Bank of America Merrill Lynch and HSBC are leading the deal that will be used to refinance existing debt, with Bank of America the left lead on the U.S. first-lien term loan and HSBC the left lead on the euro first-lien term loan and the second-lien term loan.

Archroma is a Switzerland-based provider of specialty chemicals for the textile, paper and emulsions sectors.

Sungard tweaked

Sungard Availability Services removed the minimum extension size from its request to extend its $896 million term loan B (B1) by 2.5 years to September 2021, according to a market source.

Furthermore, the company added MFN to the extended term loan and a springing maturity.

Talk on the term loan remained at Libor plus 700 bps with a 150 bps step-down at 2.75 times net secured leverage, a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

J.P. Morgan Securities LLC is leading the deal.

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

SunGard Availability Services is a Wayne, Pa.-based provider of disaster recovery services, managed IT services, information availability consulting services and business continuity management software.

Hayward reveals guidance

Also in the primary market, Hayward Industries held its bank meeting on Monday, launching its $850 million seven-year covenant-light first-lien term loan B (B3) at talk of Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due on July 19, the source added.

Bank of America Merrill Lynch, Jefferies, Morgan Stanley Senior Funding Inc. and Nomura are leading the deal that will be used to help fund the buyout of the company by a partnership led by CCMP Capital Advisors LP and MSD Partners LP and including the Alberta Investment Management Corp.

The company is also getting a $285 million privately placed second-lien term loan (Caa2).

Closing is expected in the third quarter, subject to customary conditions.

Hayward is an Elizabeth, N.J.-based manufacturer of residential and commercial pool equipment.

YRC comes to market

YRC emerged in the morning with plans to hold a lender call at 2 p.m. ET to launch a $600 million first-lien term loan due July 2022, according to a market source.

The term loan is talked at Libor plus 850 bps with a step-down to Libor plus 650 bps at 2 times leverage, a 1% Libor floor, an original issue discount of 99 and call protection of non-callable for one year, then at 101 in year two, the source said.

Commitments are due at 5 p.m. ET on July 20.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to extend the existing first-lien term loan from February 2019 and reprice it from Libor plus 750 bps with a 1% Libor floor.

YRC is an Overland Park, Kan.-based less-than-truckload carrier.

Asurion launches

Asurion hosted a lender meeting at 1 p.m. ET to launch an $800 million add-on first-lien term loan B-5 (B+) due November 2023, talked at Libor plus 300 bps with a 0% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection through Nov. 4, and a $1.8 billion eight-year second-lien term loan (B-), talked at Libor plus 600 bps to 625 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, a market source said.

The spread and floor on the add-on term loan B-5 matches existing term loan B-5 pricing.

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

Bank of America Merrill Lynch is the left lead on the $2.6 billion of term loans that will be used to refinance an existing second-lien term loan and to pre-fund the repayment of the company’s existing unsecured term loan due 2021 that would take place when the loan becomes callable after Aug. 31.

Asurion is a Nashville-based provider of technology protection services.

Toledo seeks loan

Toledo Molding & Die launched with a 1:30 p.m. ET bank meeting a $180 million seven-year senior secured first-lien term loan B talked at Libor plus 500 bps to 525 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.

BMO Capital Markets is leading the deal.

The company is also getting a $40 million ABL revolver that is being held by BMO Harris Bank.

Proceeds will be used to help fund the buyout of the company by Monomoy Capital Partners.

Toledo Molding is a Toledo, Ohio-based full-service automotive supplier of highly-engineered thermoplastic components and assemblies for interiors, air induction systems, HVAC, fluid reservoirs, and functional plastics.

Sky talk surfaces

Sky Betting & Gaming disclosed price talk on its £810 million seven-year equivalent dollar and sterling term loan in connection with its London bank meeting on Monday, a market source remarked. A bank meeting for U.S. investors will take place at 10 a.m. ET in New York on Tuesday.

The U.S. term loan is talked at Libor plus 375 bps, and the sterling term loan is talked at Libor plus 450 bps, with both talked with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source added.

The company’s £845 million equivalent of credit facilities also include a £35 million revolver.

Commitments are due on July 2.

Goldman Sachs Bank USA, Barclays and NatWest Markets are leading the deal that will be used to refinance an existing £340 million term loan B and to make a one-off distribution to shareholders.

Sky Betting, a CVC portfolio company, is an online betting and gaming company, operating predominately in the United Kingdom with recent expansion to Italy and Germany.

Global Tel joins calendar

Global Tel*Link scheduled a lender call for 2 p.m. ET on Tuesday to launch a $165 million fungible incremental first-lien term loan due May 2020 talked at Libor plus 400 bps with a 1.25% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on July 21, the source added.

Credit Suisse Securities is leading the deal that will be used to fund a tuck-in acquisition.

In connection with the incremental loan, pricing on the company’s existing term loan will be increased to Libor plus 400 bps with a 1.25% Libor floor from Libor plus 375 bps with a 1.25% Libor floor.

Global Tel*Link is a Reston, Va.-based provider of technology solutions to the corrections industry.

Waterworks sets meeting

HD Supply Waterworks will hold a bank meeting on Wednesday to launch a $1,075,000,000 seven-year first-lien term loan B (B+) talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on July 20, the source said.

J.P. Morgan Securities, Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice from HD Supply Holding Inc. for $2.5 billion.

Closing is expected during HD Supply’s third quarter of fiscal 2017, subject to customary conditions, including regulatory approvals.

HD Supply Waterworks is a St. Louis-based distributor of water, sewer, storm and fire protection products.

eResearchTechnology on deck

eResearchTechnology scheduled a lender call for 9:30 a.m. ET on Tuesday to launch a $210 million fungible incremental first-lien term loan and a repricing of its existing $559 million term loan B due 2023, a market source remarked.

Goldman Sachs Bank USA, Jefferies and Bank of America Merrill Lynch are leading the deal.

eResearchTechnology is a Philadelphia-based provider of software-enabled clinical research solutions to pharmaceutical, biopharmaceutical and contract research organizations.

U.S. Security readies deal

U.S. Security Associates set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $100 million add-on term loan B (B2/B) due 2023 and a repricing of its existing $447 million term loan B (B2/B) due 2023, according to a market source.

Goldman Sachs Bank USA is leading the deal.

U.S. Security Associates is a Roswell, Ga.-based safety and security services company.

ASG coming soon

ASG Technologies scheduled a bank meeting for 8:30 a.m. ET in New York on Wednesday to launch a $300 million seven-year first-lien term loan that includes 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on July 26, the source added.

Credit Suisse Securities and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and pay related fees and expenses.

ASG is a Naples, Fla.-based infrastructure software company.

Arterra plans call

Arterra Wines Canada will hold a lender call at 10:30 a.m. ET on Tuesday regarding its existing $258.7 million senior secured term loan B due December 2023, a market source said.

Morgan Stanley Senior Funding is leading the transaction.

Arterra, formerly known as Constellation Brands Canada, is a Mississauga, Ont.-based producer and distributor of wine brands.

Kofax closes

In other news, the acquisition of Kofax (Project Leopard Holdings) by Thoma Bravo from Lexmark International Inc. has been completed, according to a news release.

To help fund the transaction, Kofax got $620 million of credit facilities (B2/B) that include a $60 million revolver and a $560 million six-year covenant-light first-lien term loan.

Pricing on the term loan is Libor plus 550 bps with a 25-bps pricing step-down subject to 0.5 times inside closing first-lien net leverage and a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $505 million, the step-down was added, and the discount was tightened from 99.

Credit Suisse Securities, Goldman Sachs Bank USA and UBS Investment Bank led the deal.

Kofax is an Irvine, Calif.-based provider of software solutions and services across multi-channel capture and financial process automation markets.

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