Aldevron, Edgewell, Hostess break; Inmarsat, Shutterfly, Cerence, Advanced Computer revised

By Sara Rosenberg

New York, Sept. 20 – Aldevron LLC finalized pricing on its first-lien term loan B at the high side of talk and adjusted the Libor floor, and then the debt freed to trade on Friday above its original issue discount.

Also, Edgewell Personal Care Co. shifted some funds between its term loans and set the spread on the B tranche at the low side of guidance before breaking for trading, and Hostess Brands LLC’s term loan surfaced in the secondary market as well.

In more happenings, Inmarsat plc reduced the size of its term loan B, increased the spread and modified original issue discount guidance, and Shutterfly Inc. downsized its term loan B, widened the margin and the issue price, and sweetened amortization.

Furthermore, Cerence Inc. raised spread talk on its term loan B and set the original issue discount at the wide side of guidance, and Advanced Computer Software Group Ltd. reworked its U.S. and GBP term loan sizes, and firmed the spread on the U.S. tranche at the low end of talk while removing the step-down.

Additionally, Wells Enterprises Inc. firmed pricing on its add-on term loan B at the low end of talk, added a step-down and tightened the original issue discount, Culligan Holding Inc. (AI Aqua Merger Sub Inc.) released price talk with launch, and Shearer’s Foods LLC, High Liner Foods Inc. and Patriot Rail & Ports joined the near-term primary calendar.

Aldevron tweaked, trades

Aldevron set pricing on its $740 million seven-year covenant-lite first-lien term loan B (B1/B) at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, and changed the Libor floor to 1% from 0%, according to a market source.

The first-lien term loan still has an original issue discount of 99 and 101 soft call protection for six months.

On Friday, the first-lien term loan B began trading and levels were quoted at par bid, par ¾ offered, a trader added.

The company’s $1.125 billion of credit facilities also include a $125 million five-year revolver (B1/B) and a $260 million privately placed eight-year covenant-lite second-lien term loan.

Morgan Stanley Senior Funding Inc., Antares Capital and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of a majority interest in the company by EQT Partners AB and pay related fees and expenses. Existing private equity sponsor TA Associates will retain a minority stake in the company.

Closing is expected in the fourth quarter.

Aldevron is a Fargo, N.D.-based supplier of nucleic acids, proteins and antibodies.

Edgewell modified

Edgewell Personal Care reduced its seven-year covenant-lite term loan B to $600 million from $610 million, firmed pricing at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and changed the ticking fee to half the spread from days 31 to 60, the full spread from days 61 to 90 and the full spread plus Libor onwards, from half the spread from days 46 to 75, the full spread from days 76 to 100 and the full spread plus Libor onwards, a market source said.

As before, the term loan B has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

With the term loan B downsizing, the company increased its term loan A to $575 million from $565 million, the source added.

The company’s $1.6 billion of senior secured credit facilities (Ba2/BB-) also include a $425 million revolver.

Edgewell frees up

During the session, Edgewell’s credit facilities emerged in the secondary market, with the term loan B quoted at 99¾ bid, par ¼ offered, another source added.

The new debt will be used with cash on hand to fund the acquisition of Harry’s Inc. in a cash and stock transaction that values Harry’s at $1.37 billion. About 79% of the total value of the transaction will be paid in cash and 21% will be paid in Edgewell common stock. Upon closing, Harry’s shareholders will own about 11% of Edgewell.

BofA Securities, Inc., MUFG, Barclays, TD Securities (USA) LLC, Standard Chartered, BMO Capital Markets, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are leading the credit facilities.

Closing is expected by the end of the first quarter of 2020, subject to customary conditions and regulatory approval.

Edgewell is a Shelton, Conn.-based pure-play consumer products company. Harry’s is a New York-based seller of shaving tools and skin care products.

Hostess hits secondary

Hostess Brands’ $979 million covenant-lite first-lien term loan (B1/BB-) due August 2025 also broke for trading, with levels seen at 99 7/8 bid, par ¼ offered, a market source said.

Pricing on the term loan is Libor plus 225 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead arranger on the deal that will be used to refinance an existing term loan due 2022 priced at Libor plus 225 bps with a 0.75% Libor floor.

Hostess is a Kansas City, Mo.-based sweet baked goods company.

Inmarsat reworked

Back in the primary market, Inmarsat trimmed its seven-year term loan B to $2 billion from $2.7 billion, lifted pricing to Libor plus 450 bps from talk in the range of Libor plus 400 bps to 425 bps, revised original issue discount talk to a range of 98 to 99 from just 99 and made changes to documentation, according to a market source.

As before, the term loan has a 0% Libor floor.

The company’s now $2.7 billion of credit facilities also include a $700 million revolver.

Commitments were due at 4 p.m. ET on Friday, extended from noon ET on Friday, the source added.

Barclays, BofA Securities, Inc. and UBS Investment Bank are leading the deal that will be used 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.

The senior secured notes offering that will also help fund the buyout was upsized to $1.825 billion from $1.125 billion with the term loan downsizing.

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

Inmarsat is a London-based satellite telecommunications company.

Shutterfly sets changes

Shutterfly scaled back its seven-year first-lien term loan B to $1 billion from $1.285 billion, flexed pricing to Libor plus 550 bps from Libor plus 525 bps, moved the original issue discount to 97 from talk in the range of 98 to 99 and modified amortization to 6.5% per annum from 5% per annum, a market source remarked.

The term loan still has a 0% Libor floor.

The company’s now $1.3 billion of senior secured credit facilities (B1/B) also include a $300 million revolver.

Commitments are due at 5 p.m. ET on Monday, extended from 5 p.m. ET on Friday, the source added.

Barclays, Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets LLC, Mizuho and UBS Investment Bank are leading the deal.

Shutterfly upsizes notes

In connection with the term loan B downsizing, Shutterfly increased its senior secured note offering to $785 million from $500 million.

The new loan and bond debt will be used with equity to fund the buyout by Apollo Global Management LLC of Shutterfly for $51.00 per share in cash, or an enterprise value of about $2.7 billion, and the buyout of Snapfish LLC. Shutterfly and Snapfish will then be merged into one company.

Closing is expected by early in the fourth quarter, subject to customary conditions, including approval by Shutterfly stockholders and regulatory approval.

Shutterfly is a Redwood City, Calif.-based retailer and manufacturing platform for personalized products and communications. Snapfish is a San Francisco-based internet-based retailer of photography products.

Cerence flexes

Cerence revised price talk on its $425 million first-lien term loan B to a range of Libor plus 425 bps to 450 bps from Libor plus 375 bps and set the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

The company’s $500 million of credit facilities (B2/B) also include a $75 million revolver.

Commitments remain due at 5 p.m. ET on Monday, the source added.

Barclays is the left lead on the deal that will be used to support the spinoff of Nuance Communications Inc.’s automotive software business segment into a new, independent, publicly traded company named Cerence.

Cerence is a Burlington, Mass.-based builder or automotive cognitive assistance solutions to power natural and intuitive interactions between automobiles, drivers and passengers, and the broader digital world.

Advanced Computer retranches

Advanced Computer Software cut its U.S. seven-year covenant-lite first-lien term loan B to $330 million from $407 million, finalized pricing at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, and removed the 25 bps step-down at 4.5x first-lien net leverage, a market source remarked.

Additionally, the company upsized its pound sterling seven-year covenant-lite first-lien term loan B to £285 million from £200 million and made some revisions to documentation.

Pricing on the pound sterling term loan remained at Libor plus 475 bps, and both term loans still have a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s credit facilities (B2/B-) also include a £75 million five-year revolver.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the refinancing and recapitalization of the company, pay fees and expenses related to the transaction, and, due to the additional total term loan proceeds of roughly $25 million being raised, for general corporate purposes.

Closing is expected in early October.

Advanced Computer is a U.K.-based provider of software and IT services.

Wells Enterprises updated

Wells Enterprises set the spread on its $185 million add-on covenant-lite term loan B (B1/BB-) due 2025 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, added a step-down to Libor plus 275 bps when issuer ratings are Ba3/BB- with stable outlooks or better, and adjusted the original issue discount to 99.75 from 99.5, according to a market source.

The add-on term loan still has a 0% Libor floor and 101 soft call protection for six months, which will also be added to the existing term loan.

Recommitments were due at 2 p.m. ET on Friday, 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 on Sept. 27.

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

Culligan reveals talk

Culligan held its lender call on Friday and announced original issue discount talk of 97 for its fungible $200 million incremental covenant-lite term loan B (B2/B-) due December 2023, a market source said.

The incremental term loan is priced at Libor plus 425 bps with a 1% Libor floor and has 101 soft call protection for six months.

Commitments are due at noon ET on Sept. 27, the source added.

Morgan Stanley Senior Funding Inc., RBC Capital Markets and BMO Capital Markets Corp. are leading the deal that will be used to repay revolver borrowings, fund pending acquisitions and add cash to the balance sheet.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

Shearer’s on deck

Shearer’s Foods set a lender call for 10 a.m. ET on Monday to launch a $701 million covenant-lite first-lien term loan (B3/B-) due March 2022 that is talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Sept. 27, the source said.

Credit Suisse Securities (USA) LLC and Antares Capital are leading the deal, which will be used to extend the maturity of the company’s existing first-lien term loan by nine months. The existing term loan is currently priced at Libor plus 425 bps with a 1% Libor floor.

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

High Liner joins calendar

High Liner Foods scheduled a bank meeting for Wednesday to launch a $300 million term loan B, a market source remarked.

RBC Capital Markets is leading the deal that will be used to refinance an existing term loan B.

High Liner is a Lunenburg, N.S.-based processor and marketer of frozen seafood.

Patriot timing emerges

Patriot Rail & Ports will hold a bank meeting in New York on Wednesday to launch its previously announced $325 million of credit facilities, according to a market source.

The facilities consist of a $40 million revolver and a $285 million term loan B.

RBC Capital Markets and Barclays are leading the deal that will be used to help fund the buyout of the company by First State Investments.

Closing is expected in the fourth quarter.

Patriot Rail is a Jacksonville, Fla.-based owner of a portfolio of short-line railroads, port terminals and related infrastructure assets, providing transportation and logistics solutions.

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