Herbalife, Sesac, Tradesmen, Sivantos, US Foods, Select Medical, Hemisphere Media break

By Sara Rosenberg

New York, Feb. 13 – Herbalife’s credit facility emerged in the secondary market on Monday, with the first-lien term loan trading above its original issue discount, and Sesac Holdings, Tradesmen International Inc., Sivantos Group (Auris Luxembourg III Sarl), US Foods Inc., Select Medical Holdings Corp. and Hemisphere Media Group Inc. freed up too.

Moving to the primary market, WaveDivision Holdings LLC lifted the spread on its term loan repricing and removed the Libor floor, and Infiltrator Water Technologies LLC changed the original issue discount on its incremental first-lien term loan.

Also, Neustar Inc., Solera Holdings Inc. and Ivanti Software Inc. released talk with launch, and Mallinckrodt International Finance SA, KeyPoint Government Solutions Inc., Wabash National Corp., CSP Technologies North America LLC, Formula 1 (Delta Topco Ltd.) and TriMark joined this week’s calendar.

Herbalife tops OID

Herbalife’s credit facility began trading on Monday, with the $1.3 billion six-year first-lien term loan quoted at 99 bid, par offered on the break and then it rose to par bid, par ¾ offered, according to market sources.

Pricing on the term loan is Libor plus 550 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 hard call protection for 18 months.

During syndication, the term loan was upsized from $1,175,000,000, pricing was increased from Libor plus 375 bps, the discount was set at the tight end of revised talk of 97 to 98 but wide of initial talk of 99, and the call protection was changed from revised talk of 102 in year one and 101 in year two and initial talk of a 101 soft call for six months.

Also during syndication, the maturity of the term loan was shortened from seven years, the MFN sunset was removed, amortization was raised to 7.5% per annum from 1% per annum, the covenant-light status was changed through the addition of a total leverage covenant, the $430 million freebie basket on the incremental was removed and the incremental ratios were changed to gross leverage from net leverage.

Herbalife getting revolver

Along with the first-lien term loan, Herbalife’s $1.45 billion credit facility includes a $150 million revolver.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to refinance an existing revolver and for general corporate purposes.

Herbalife is a Los Angeles-based nutrition and weight management company

Sesac starts trading

Another deal to break was Sesac, with its $385 million first-lien term loan quoted at par bid, par ¾ offered and its $140 million second-lien term loan quoted at 99¼ bid, par ½ offered, a trader said.

Pricing on the first-lien term loan is Libor plus 325 bps with 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.

The second-lien tem loan is priced at Libor plus 725 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

On Friday, the first-lien term loan was upsized from $365 million, pricing was set at the low end of the Libor plus 325 bps to 350 bps talk, and the discount was tightened from 99.5, and the second-lien term loan was downsized from $160 million with pricing trimmed from Libor plus 750 bps.

The company’s $565 million credit facility also includes a $40 million revolver.

Jefferies Finance LLC and Guggenheim are leading the deal that will be used to help fund the buyout of the Nashville, Tenn.-based music rights organization by Blackstone from Rizvi Traverse Management.

Closing is expected by the end of this quarter.

Tradesmen hits secondary

Tradesmen’s credit facility began trading too, with the $255 million seven-year first-lien term loan quoted at 99¼ bid, par ¼ offered and the $55 million eight-year second-lien term loan quoted at 98 bid, par offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 1,000 bps with a 1% Libor floor and was issued at a discount of 98. This tranche has call protection of 102 in year one and 101 in year two.

The company’s $350 million credit facility also provides for a $40 million cash flow revolver.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal.

Tradesmen being acquired

Proceeds from Tradesmen’s credit facility will be used to help fund its buyout by Blackstone from Wellspring Capital Management LLC.

During syndication, the first-lien term loan was upsized from $230 million, pricing was lifted from Libor plus 425 bps and the step-down was eliminated, and the second-lien term loan was downsized from $80 million, pricing was increased from talk of Libor plus 850 bps to 875 bps and the discount was changed from 98.5.

In addition, during syndication, the MFN sunset was eliminated, the free/clear accordion basket was reduced to $40 million from $60 million, the 1 times of EBITDA accordion grower was eliminated, the inside maturity debt prong in the accordion was eliminated, the excess cash flow sweep was increased to 75%, and add-backs to EBITDA were capped at 25%.

Closing is expected this week.

Tradesmen is a Macedonia, Ohio-based agency-based provider of outsourced skilled craftsmen to non-residential construction and industrial contractors.

Sivantos frees up

Sivantos’ $590 million covenant-light term loan due January 2022 broke, with levels seen at par bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 300 bps with a 25-bps step-down at 4.5 times net total leverage and a 1% Libor floor. The loan was issued at par and has 101 soft call protection for six months.

The company is also getting a €409 million covenant-light term loan due January 2022 priced at Euribor plus 350 bps with a 25-bps step-down at 4.5 times net total leverage and no floor. This tranche was also issued at par and includes 101 soft call protection for six months.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are the global coordinators on the deal, with Goldman the left lead on the U.S. loan and Deutsche the left lead on the euro loan. UBS AG is a joint bookrunner.

Proceeds will be used to revise pricing on the company’s existing U.S. and euro term loans from Libor/Euribor plus 325 bps with a 1% floor.

Closing is expected on Feb. 27.

Sivantos is a Singapore-based manufacturer and wholesaler of hearing aid devices.

US Foods begins trading

US Foods’ $2,189,000,000 senior secured covenant-light term loan B (BB) due June 27, 2023 freed up too, with levels quoted at par ¼ bid, par ¾ offered, a market source remarked.

The term loan is priced at Libor plus 275 bps with a 0.75% Libor floor, and was issued at par. The debt has 101 soft call protection for six months.

During syndication, the company eliminated from the term loan a 25 bps step-down when consolidated secured leverage is 2.25 times.

Citigroup Global Markets Inc., KKR Capital Markets, BMO Capital Markets, Goldman Sachs Bank USA, ING, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will reprice the existing term loan down from Libor plus 300 bps with a 0.75% Libor floor.

Closing is targeted for Friday.

US Foods is a Chicago-based broadline foodservice distributor.

Select Medical breaks

Select Medical’s $1.15 billion seven-year term loan (Ba2/BB-) also hit the secondary market, with levels quoted at 99¾ bid, par ¼ offered, a source said.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for one year.

Last week, pricing on the term loan firmed at the low end of the Libor plus 350 bps to 375 bps talk, the call protection was extended from six months and the MFN sunset was removed.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing term loan E and term loan F borrowings.

Select Medical is a Mechanicsburg, Pa.-based health care company.

Hemisphere levels surface

Hemisphere Media Group’s $225 million seven-year term loan B (B2) broke, with levels quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the loan is Libor plus 350 bps with no Libor floor, and the debt was sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

During syndication, pricing on the loan firmed at the high end of the Libor plus 325 bps to 350 bps talk, and the discount was set at the wide end of the 99.5 to 99.75 talk.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice and extend an existing term loan B due 2020 that is priced at Libor plus 400 bps with a 1% Libor floor.

Hemisphere Media is a Coral Gables, Fla.-based Spanish-language media company.

BWIC announced

In more trading news, a $191.1 million Bid Wanted In Competition surfaced, with bids due at noon ET on Tuesday, a trader remarked.

Some of the names in the portfolio are American Airlines Inc., Change Healthcare Holdings Inc., Energy Transfer Equity LP, Kindred Healthcare Inc., Presidio LLC, SS&C Technologies, United Air Lines Inc. and Ziggo BV.

There are about 99 issuers in the BWIC, the trader added.

WaveDivision tweaked

Switching to the primary market, WaveDivision raised pricing on its $620.4 million term loan to Libor plus 275 bps from Libor plus 250 bps and eliminated the 1% Libor floor so that there is no floor, a market source said.

As before, the term loan has a par issue price and 101 soft call protection for six months.

Commitments were due at noon ET on Monday, the source added.

Wells Fargo Securities LLC, Jefferies Finance LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 1% Libor floor.

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

Infiltrator modifies OID

Infiltrator Water Technologies tightened the original issue discount on its $100 million incremental covenant-light first-lien term loan (B2/B) to 99.875 from 99.5, according to a market source.

The incremental loan is priced at Libor plus 350 bps with a 1% Libor floor, in line with existing term loan pricing, and the debt has 101 soft call protection for six months.

Commitments are still due at noon ET on Tuesday, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance an existing second-lien term loan.

Closing is targeted for Feb. 22.

Infiltrator Water is an Old Saybrook, Conn.-based provider of engineered plastic chambers, synthetic aggregate leach fields, tanks and accessories for the onsite wastewater and stormwater industries.

Neustar sets guidance

Neustar held its bank meeting on Monday, and with the event, talk on its $1.65 billion in term loans was announced, a market source remarked.

Talk on the $350 million 2.5-year first-lien term loan B-1 (Ba3) is Libor plus 325 bps with no Libor floor and an original issue discount of 99.5, talk on the $950 million seven-year first-lien term loan B-2 (Ba3) is Libor plus 375 bps to 400 bps with a 1% Libor floor and a discount of 99 to 99.5, and talk on the $350 million eight-year second-lien term loan (B3) is Libor plus 800 bps to 850 bps with a 1% Libor floor and a discount of 98.5 to 99, the source continued.

The first-lien term loans have 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.

Commitments are due at noon ET on Feb. 28, the source added.

Neustar lead banks

Bank of America Merrill Lynch, UBS Investment Bank, Jefferies Finance LLC, Credit Suisse Securities (USA) LLC, Mizuho, Societe Generale and Angel Island Capital are leading Neustar’s term loans.

Proceeds will be used with equity to fund the buyout of the company by Golden Gate Capital for $33.50 per share in cash. The transaction is valued at about $2.9 billion, including debt to be refinanced.

Closing is expected by the end of the third quarter, subject to shareholder approval, regulatory approval and other customary conditions.

Neustar is a Sterling, Va.-based provider of real-time information services.

Solera details emerge

Solera Holdings launched on its lender call a repricing of its $1,789,000,000 term loan talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

The company also launched a repricing of its €640 million term loan talked at Euribor plus 300 bps to 325 bps with a 0.75% floor, an original issue discount of 99.875 to par and 101 soft call protection for six months, the source said.

Commitments are due on Friday.

Nomura Securities Co. Ltd. is the left lead on the deal that will reprice the existing U.S. and euro term loans down from Libor/Euribor plus 475 bps with a 1% floor.

Solera is a Westlake, Texas-based provider of software and services to the automobile insurance claims processing industry.

Ivanti seeks incremental

Ivanti Software launched during the session a fungible $30 million incremental covenant-light term loan B due Jan. 20, 2024 talked at Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99.75 to par, a market source said.

Commitments are due on Tuesday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used for general corporate purposes.

Ivanti, formerly known as LANDesk Software Group Inc., is a South Jordan, Utah-based user-centered IT management company.

Mallinckrodt on deck

Also in the primary market, Mallinckrodt set a lender call for 11:30 a.m. ET on Tuesday to launch a $1,862,000,000 term loan B due Sept. 24, 2024 that includes 101 soft call protection for six months, according to a market source.

Deutsche Bank Securities Inc. is leading the deal.

The new loan will be used to amend and extend existing term loan B and term loan B-1 debt due March 19, 2021.

Commitments from existing lenders are due at 5 p.m. ET on Feb. 21 and new money commitments are due at noon ET on Feb. 23, the source added.

Mallinckrodt is a U.K.-based specialty pharmaceutical company.

KeyPoint deal surfaces

KeyPoint Government Solutions will hold a bank meeting at 10:30 a.m. ET on Wednesday to launch a $265 million credit facility, a market source said.

The facility consists of a $15 million revolver and a $250 million senior secured term loan B, the source added.

Barclays is leading the deal that will be used to refinance the company’s existing term loan, fund a dividend to shareholders and pay transaction-related fees and expenses.

KeyPoint is a Loveland, Colo.-based provider of background investigative services for the federal government.

Wabash readies loan

Wabash National scheduled a lender call for Tuesday to launch a repricing of its $189.5 million term loan talked at Libor plus 275 bps with no Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due on Feb. 21, the source added.

Wells Fargo Securities LLC is leading the deal that will reprice the existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Wabash is a Lafayette, Ind.-based diversified industrial manufacturer and a producer of semi-trailers and liquid transportation systems.

CSP coming soon

CSP Technologies will hold a lender call at 3 p.m. ET on Tuesday to launch a $12 million incremental first-lien term loan due Jan. 30, 2022 and a repricing of its $165.9 million first-lien term loan due Jan. 30, 2022, according to a market source.

Barclays is leading the deal.

The incremental loan will be used to term out outstanding borrowings under the company’s existing revolver, the source added.

CSP is an Auburn, Ala.-based manufacturer of polymer containers primarily for the pharmaceutical and consumer industries.

Formula 1 joins calendar

Formula 1 set a lender call for 10 a.m. ET on Tuesday to launch a refinancing of its $3,145,000,000 first-lien term loan, and as part of the transaction, the company plans to repay up to $300 million of the first-lien term loan with excess cash on the balance sheet, sources said.

KKR Capital Markets is the lead on the deal.

Formula 1 is a motorsports business.

TriMark plans call

TriMark will hold a call for loan lenders at 10 a.m. ET on Tuesday, according to a market source.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal.

TriMark is a South Attleboro, Mass.-based provider of equipment, supplies and design services to the foodservice industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.