RCN Grande, Virgin Media/O2 updated; Shearer’s Foods, LegalShield, Waystar accelerated

By Sara Rosenberg

New York, Sept. 10 – In the primary market on Thursday, RCN Grande (Radiate Holdco LLC) increased the size of its term loan B and revised original issue discount talk, and Virgin Media/O2 set sizes on its U.S. and euro term loan B’s and firmed the issue price on the U.S. tranche at the wide end of guidance.

Also, Shearer’s Foods LLC, LegalShield and Waystar (Navicure) moved up the commitment deadlines for their first-lien term loans.

Furthermore, EFS Cogen Holdings I LLC (Linden), Allegro Microsystems Inc., Omnitracs LLC, Wabash National Corp. and Aveanna Healthcare LLC released price talk with launch, and Pactiv Evergreen and ASP Navigate Acquisition Corp. joined the near-term primary calendar.

RCN Grande revised

RCN Grande raised its term loan B due September 2026 to $2.69 billion from $1.19 billion, and modified the original issue discount to 99 from revised talk of 98.5 but the discount is at the tight end of initial talk that was in the range of 98.5 to 99, according to a market source.

As before, the term loan is talked at Libor plus 350 basis points to 375 bps with a 0.75% Libor floor and has 101 soft call protection for six months.

Previously in syndication, price talk on the term loan was lowered from Libor plus 400 bps.

Commitments are due at 10 a.m. ET on Friday, the source added.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Societe Generale and UBS Investment Bank are leading the deal that will be used with $1.75 billion of bonds, downsized from $3.25 billion, to repay existing debt and fund a dividend.

RCN Grande is a broadband services provider.

Virgin/O2 updated

Virgin Media/O2 firmed the size on its U.S. dollar denominated covenant-lite term loan B due January 2029 at $1.3 billion and the size on its euro-denominated covenant-lite term loan B due January 2029 at €750 million, a market source said.

Also, the original issue discount on the U.S. term loan B was set at 98.5, the wide end of the 98.5 to 99 talk, the source added.

The U.S. term loan B is still priced at Libor plus 325 bps with a 0% Libor floor.

The term loan B debt has a ticking fee of half the spread for days 46 to 90 and the full spread thereafter, and includes 101 soft call protection for six months.

Virgin/O2 leads

Lead bookrunning mandated lead arrangers on the Virgin Media/O2 term loans are J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and BNP Paribas Securities Corp., with JPMorgan the left lead on the U.S. term loan B. Joint bookrunning mandated lead arrangers are BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse, Goldman Sachs, HSBC Securities, Mediobanca, Mizuho, Morgan Stanley Senior Funding Inc., MUFG, Natixis and the Bank of Nova Scotia. Co-managers are Banco Sabadell, ING and SMBC. Scotia is the administrative agent.

Proceeds from the term loans (Ba3/BB-/BB+) and new notes will be used for general corporate purposes, including payment of any distributions at closing of the joint venture.

Liberty Global plc, the current owner of Virgin Media, and Telefonica SA, the current owner of O2, are merging these operating businesses in the U.K. to form a 50:50 joint venture.

Closing is expected around the middle of 2021, subject to regulatory approvals, consummation of the recapitalizations and other customary conditions.

Virgin Media is an England-based broadband provider. O2 is a Slough, England-based mobile platform.

Shearer’s changes deadline

Shearer’s Foods moved up the commitment deadline for its $985 million seven-year covenant-lite first-lien term loan (B1/B-) to Monday from noon ET on Wednesday, according to a market source.

Talk on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months.

The company is also getting a $340 million privately placed second-lien term loan (Caa1/CCC).

Credit Suisse Securities (USA) LLC, Antares Capital, BMO Capital Markets and Golub are leading the deal that will be used to refinance existing debt and fund a dividend.

Shearer’s Foods is a Massillon, Ohio-based contract manufacturer of snack foods.

LegalShield revises timing

LegalShield accelerated the commitment deadline for its non-fungible $135 million incremental first-lien term loan (B2) due May 2025 to noon ET on Friday from 5 p.m. ET on Monday, a market source remarked.

Talk on the incremental term loan is Libor plus 400 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

RBC Capital Markets and Stone Point Capital Markets are leading the arranger group.

Proceeds will be used with cash on hand to refinance an existing $180 million second-lien term loan due May 2026.

LegalShield is an Ada, Okla.-based provider of subscription-based legal and identity theft protection plans to businesses and individuals. The company is owned by Stone Point Capital, Further Global Capital Management, MidOcean Partners and management.

Waystar accelerated

Waystar moved up the commitment deadline for its non-fungible $620 million incremental first-lien term loan B due October 2026 to Monday from 5 p.m. ET on Wednesday, according to a market source.

The term loan is talked at Libor plus 425 bps with a 0.75% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the acquisition of eSolutions, a revenue cycle technology company, from Francisco Partners.

Closing is expected this year, subject to customary conditions and approvals.

Waystar is a provider of health care payments software. The company is backed by EQT, Canada Pension Plan Investment Board and Bain Capital.

EFS sets guidance

EFS Cogen held its bank meeting on Thursday and announced price talk on its $950 million seven-year term loan B (Ba3/BB-) at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

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

The company’s $1.05 billion of senior secured credit facilities also include a $100 million five-year first-out revolver (Ba2/BB-).

Commitments are due at 5 p.m. ET on Sept. 24, the source added.

Jefferies LLC, Barclays, Citigroup Global Markets Inc., MUFG, BMO Capital Markets and Investec are leading the deal that will be used to refinance existing debt and fund a small distribution to the parent.

EFS Cogen is the owner of a 974 MW natural gas-fired combined cycle cogeneration plant located in Linden, N.J.

Allegro proposed terms

Allegro Microsystems came out with talk of Libor plus 450 bps to 475 bps with a 0.5% Libor floor and an original issue discount of 98.5 on its $325 million seven-year covenant-lite first-lien term loan that launched with a call in the morning, a market source said.

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

Commitments are due at 5 p.m. ET on Sept. 24.

Credit Suisse Securities (USA) LLC, Barclays, Mizuho and SMBC are leading the deal, which will be used to refinance a revolver draw and to fund a shareholder distribution.

Allegro is a Manchester, N.H.-based provider of magnetic sensor and power integrated circuits.

Omnitracs launches

Omnitracs revealed price talk on its first-and second-lien term loans with its lender call in the morning, according to a market source.

Talk on the non-fungible $160 million incremental covenant-lite first-lien term loan (B2/B-) due March 2025 is Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, and talk on the $195 million eight-year covenant-lite second-lien term loan (Caa2/CCC) is Libor plus 800 bps to 825 bps with a 0% Libor floor, a discount of 98, and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on Sept. 22.

Barclays, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and Guggenheim are leading the deal, with Barclays left lead on the first-lien loan and Credit Suisse left lead on the second-lien loan.

The new debt will be used with cash on hand to fund the acquisition of SmartDrive Systems Inc., a San Diego-based provider of video-based safety and transportation intelligence.

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

Omnitracs is a Dallas-based provider of SaaS-based fleet management and data analytics solutions.

Wabash talk emerges

Wabash National launched on its morning call its $150 million seven-year covenant-lite term loan B (Ba3/BB-) at talk of Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99, a market source remarked.

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

Commitments are due at noon ET on Sept. 17.

Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing term loan B due 2022 and for general corporate purposes.

Wabash is a Lafayette, Ind.-based manufacturer of commercial trailer products.

Aveanna price guidance

Aveanna Healthcare released talk of Libor plus 625 bps to 650 bps with a 1% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for one year on its non-fungible $185 million incremental first-lien term loan due March 16, 2024 that launched with an afternoon call, a market source said.

Commitments are due at 5 p.m. ET on Sept. 17, the source added.

Barclays, BMO Capital Markets and Jefferies LLC are leading the deal, which will be used for general corporate purposes including tuck-in acquisitions, fees and expenses, and balance sheet cash.

Bain Capital and J.H. Whitney are the sponsors.

Aveanna Healthcare is an Atlanta-based home health care company.

Pactiv on deck

Pactiv Evergreen set a lender call for 10 a.m. ET on Friday to launch a $1 billion covenant-lite first-lien term loan due February 2026, according to a market source.

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

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

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt.

Pactiv, formerly known as Reynolds Group Holdings Inc., is a Lake Forest, Ill.-based manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons.

ASP readies deal

ASP Navigate scheduled a bank meeting for 2 p.m. ET on Monday to launch $460 million of credit facilities, split between a $60 million five-year revolver, and a $400 million seven-year first-lien term loan that has 101 soft call protection for six months, a market source remarked.

Jefferies LLC, Keybank Capital Markets Inc., Goldman Sachs Bank USA and ING are leading the deal, which will be used with equity to fund American Securities LLC’s acquisition of NN Inc.’s Life Sciences division for $825 million, including $755 million in cash payable at closing of the transaction and an additional $70 million earnout payable in cash based on the 2022 performance of the division.

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

The Life Sciences division designs and manufactures a variety of high-precision components, assemblies, and instruments for the medical and life sciences end market.

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