Epiq Systems emerges in secondary market; Northeast Wind Capital, WaveDivision pull deals

By Sara Rosenberg

New York, Aug. 23 - Epiq Systems Inc. finalized the original issue discount on its term loan at the wide side of guidance, and the debt then freed up for trading on Friday above that discount price.

In other news, Northeast Wind Capital II LLC and WaveDivision Holdings LLC pulled their deals from market, and Quikrete joined the early September calendar with an acquisition financing transaction.

Epiq Systems breaks

Epiq Systems' credit facility hit the secondary on Friday, with the $300 million term loan quoted at 99¼ bid, par ¼ offered, according to a trader.

Pricing on the loan is Libor plus 375 basis points with a 1% Libor floor and it was sold at a discount of 99 after firming at the high end of the 99 to 99½ talk, a source remarked. There is 101 soft call protection for six months.

In addition to the term loan, the company's $400 million senior secured credit facility (B1/BB-) includes a $100 million revolver.

KeyBanc Capital Markets LLC is leading the deal that will be used to refinance existing debt and provide greater capital flexibility.

Epiq is a provider of technology-enabled solutions for electronic discovery, bankruptcy and class action administration.

Northeast Wind pulled

Over in the primary, Northeast Wind Capital removed its $325 million seven-year senior secured term loan B (Ba3/BB-) from market, according to sources.

The loan was talked at Libor plus 425 basis points with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BNP Paribas Securities Corp., KeyBanc Capital Markets LLC and Union Bank were leading the deal that was going to be used to refinance existing debt.

Northeast Wind Capital, the owner of a portfolio of wind projects, is a joint venture between First Wind Holdings and Emera Inc. First Wind owns 51% of the portfolio and Emera owns the remaining 49%.

WaveDivision shelved

Furthermore, WaveDivision removed from market plans to reprice its term loan B to Libor plus 275 bps with a 0.75% Libor floor from Libor plus 300 bps with a 1% Libor floor, and its revolver to Libor plus 375 bps from Libor plus 450 bps, a market source said.

Under the proposal, the repriced term loan B was being offered at par and had 101 soft call protection for six months.

Wells Fargo Securities LLC, RBC Capital Markets, Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey Inc. were leading the deal.

WaveDivision is a Kirkland, Wash.-based owner and operator of broadband cable systems.

Quikrete on deck

In more primary happenings, Quikrete set a bank meeting for Sept. 10 to launch a $1.62 billion credit facility, according to a market source.

The facility consists of a $200 million ABL revolver, a $1.23 billion first-lien term loan B and a $190 million second-lien term loan, the source said.

Wells Fargo Securities LLC is leading the deal that will be used to fund the acquisition of Custom Building Products Inc., a Seal Beach, Calif.-based producer of mortar, sealant, grout, backerboard, tools and associated products, from Kelso & Co.

Quikrete is an Atlanta-based manufacturer of packaged concrete and related products for the building and home improvement markets.

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