Extended Stay America, Sensata Technologies updated; ADT revises commitment deadline

By Sara Rosenberg

New York, Sept. 10 – Extended Stay America Inc. (ESH Hospitality Inc.) modified the original issue discount on its term loan B on Tuesday, and Sensata Technologies Inc. revealed that it intends to reduce the size of its amended and extended term loan B.

In more primary happenings, ADT Inc. (Prime Security Services Borrower LLC) accelerated the commitment deadline for its term loan B.

Also, Inmarsat plc, Cumulus Media Inc., ALKU LLC, B&G Foods Inc., Virtu Financial LLC (VFH Parent LLC) and Wells Enterprises Inc. released price talk with launch, and ZelisRedCard, Merrill Corp. and MeridianLink emerged with new deal plans.

Extended Stay tweaked

Extended Stay America adjusted the original issue discount on its $631 million seven-year covenant-lite term loan B (Ba2/BB+) to 99.75 from 99.5, according to a market source.

As before, the term loan is priced at Libor plus 200 basis points with a 0% Libor floor and has 101 soft call protection for six months.

Recommitments are due at 11 a.m. ET on Wednesday, the source said.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to amend and extend $631 million of the company’s existing term loan B due 2023. The remaining $500 million term loan B balance will be repaid with proceeds from a senior note offering, which was upsized to $750 million from $500 million.

The extra bond proceeds raised will be used for general corporate purposes.

Extended Stay is a Charlotte, N.C.-based owner and operator of company-branded hotels.

Sensata downsizing

Sensata Technologies anticipates trimming its seven-year covenant-lite senior secured term loan B to $472 million from roughly $913 million, a market source said.

Talk on the term loan is Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months.

Commitments and consents are due at noon ET on Sept. 17.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Barclays, BofA Securities, Inc., Mizuho Bank and RBC Capital Markets are leading the deal that will be used to amend and extend an existing term loan B due Oct. 14, 2021 that is currently priced at Libor plus 175 bps with a 0% Libor floor.

The term loan B size was reduction was announced on Tuesday when the company surfaced with plans to issue $450 million of senior notes and use the proceeds from that offering to pay down the existing term loan B from roughly $913 million.

In addition to the extension, the credit agreement amendment would increase the incremental, and revise some operational and restrictive covenants to provide greater flexibility and permissions.

Sensata is a producer of sensors and controls for manufacturers in the automotive, appliance, aircraft, industrial and HVAC markets.

ADT accelerated

ADT moved up the commitment deadline for its $3.025 billion to $3.275 billion seven-year senior secured term loan B (Ba3/BB-) to noon ET on Thursday from noon ET on Friday, according to a market source.

Talk on the term loan is Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The term loan has a springing maturity to 90 days inside the maturity date of any applicable debt, and negative covenants are substantially consistent with the existing credit agreement, with some updates to provide for additional strategic and financial flexibility, including amendments to the limitations on incremental debt, investments and restricted payments.

Barclays is leading the loan that will be used with $500 million to $750 million of first-lien senior secured notes to refinance an existing first-lien term loan due 2022 priced at Libor plus 275 bps with a 1% Libor floor and first-lien senior secured notes due 2020, and to pay associated fees, expenses and early call premiums.

ADT is a Boca Raton, Fla.-based provider of monitored security and interactive home and business automation solutions.

Inmarsat releases talk

Also in the primary market, Inmarsat held its bank meeting on Tuesday and revealed talk on its $2.7 billion term loan B at Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $3.4 billion of credit facilities (B+) also include a $700 million revolver.

Commitments are due at noon ET on Sept. 20, the source added.

Barclays, BofA Securities, Inc. and UBS Investment Bank are leading the deal that will be used with $1.125 billion of senior secured notes to help fund the buyout of the company by Apax, Warburg Pincus, Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board for $7.21 in cash per share, or about $3.4 billion.

Closing is expected in the fourth quarter, subject to regulatory clearances and other conditions.

Inmarsat is a London-based satellite telecommunications company.

Cumulus proposed terms

Cumulus Media came out with talk of Libor plus 400 bps with an original issue discount of 99 and 101 soft call protection for six months on its $525 million term loan B (B) that launched with a bank meeting during the session, according to a market source.

Commitments are due on Sept. 19, the source said.

BofA Securities, Inc. is leading the deal, which will be used to repay an existing term loan.

Cumulus Media is an Atlanta-based radio broadcaster.

ALKU sets guidance

ALKU launched at its bank meeting its $218 million term loan B at talk of Libor plus 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $248 million of credit facilities (B2/B-) also include a $30 million revolver.

Commitments are due on Sept. 24, the source said.

Societe Generale and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by FFL Partners.

ALKU is an Andover, Mass.-based provider of temporary and contractual consultants in the technology, health care IT, life sciences and government sectors.

B&G holds call

B&G Foods surfaced in the morning with plans to hold a lender call at 2 p.m. ET to launch a $450 million seven-year covenant-lite term loan B (Ba2/BB) talked at Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Sept. 17, the source added.

Barclays is the left lead on the deal that will be used with $450 million of senior notes to refinance the company’s existing $700 million of 4.625% senior notes due 2021, to pay down revolver borrowings and to pay related fees and expenses.

Closing is expected on Oct. 11.

To allow for the prepayment of the senior notes, a majority consent is required from existing revolver lenders plus new term loan B lenders. Also, the definition of specified change of control is being modified to delete the continuing director clause.

Pro forma for the transaction, net secured debt is 1.5x and net total debt is 5.9x.

B&G Foods is a Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable food, frozen food and household products.

Virtu OID talk

Virtu Financial held its lender call in the afternoon and disclosed original issue discount talk of 99.5 on its fungible $525 million incremental senior secured first-lien term loan (//BB-) due March 1, 2026, according to a market source.

Like the existing term loan, the incremental term loan is priced at Libor plus 350 bps with a 0% Libor floor, and has 101 soft call protection that expires March 2020.

Amendment consents are due at noon ET on Friday and commitments are due at 2 p.m. ET on Sept. 17.

Jefferies LLC is leading the deal that will be used to redeem second-lien notes due 2022.

Virtu is a New York-based financial services firm that leverages cutting edge technology to deliver liquidity to the markets and innovative, transparent trading solutions.

Wells Enterprises launches

Wells Enterprises launched at its meeting on Tuesday its $185 million add-on term loan B (BB-) at talk of Libor plus 300 bps to 325 bps with a 0% 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 at 5 p.m. ET on Sept. 24, the source said.

BMO Capital Markets is leading the deal that will be used to fund the acquisition of the Halo Top ice cream brand from Eden Creamery LLC.

Closing is expected this month, subject to customary conditions.

The add-on term loan is expected to be fungible with the company’s existing $273 million term loan B due March 2025, which is currently priced at Libor plus 275 bps with a 0% Libor floor.

Wells Enterprises is a Le Mars, Iowa-based ice cream and frozen treat manufacturer.

ZelisRedCard on deck

ZelisRedCard scheduled a lenders’ presentation for 10:30 a.m. ET in New York on Thursday to launch $1.65 billion of senior secured credit facilities, a market source said.

The facilities consist of a $150 million revolver and a $1.5 billion first-lien term loan B, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to support the merger of Zelis Healthcare Corp. and RedCard Holdings LLC and the acquisition of a significant interest in the combined entity by Bain Capital. Parthenon Capital is an existing investor in both companies.

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

Zelis is a Bedminster, N.J.-based provider of integrated health care cost management and payments solutions. RedCard is a St. Louis-based provider of health care payments and communications optimization.

Merrill joins calendar

Merrill set a bank meeting for 1:30 p.m. ET in New York on Thursday to launch a $400 million first-lien term loan, according to a market source.

Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance an existing term loan B and fund a dividend to shareholders.

Merrill is a St. Paul, Minn., SaaS-based provider of secure collaboration solutions for professionals.

MeridianLink readies loan

MeridianLink emerged with plans to hold a lender call on Thursday to launch a fungible $60 million incremental first-lien term loan, a market source remarked.

Antares Capital and Golub Capital are leading the deal.

The company’s existing first-lien term loan is sized at about $352 million.

MeridianLink, a Thoma Bravo LLC portfolio company, is a Costa Mesa, Calif.-based provider of SaaS-based solutions to financial institutions that simplify loan decisioning, deposit/loan originations and workflow challenges.

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