TI Auto, VeriFone, Confie Seguros break; AmSurg, TeamViewer, Novitex, Academi tweak deals

By Sara Rosenberg

New York, July 1 – TI Automotive Ltd.’s term loan B made its way into the secondary market on Tuesday and traded above its original issue discount price, VeriFone Inc. and Confie Seguros freed up, and Healogics Inc. saw levels surface on its first- and second-lien debt.

Moving to the primary, AmSurg Corp. trimmed the size of its term loan B due to an increase to its bond amount, and TeamViewer upsized its U.S. first-lien term loan, widened spreads and the original issue discounts on all of its term loans while sweetening the call protection on its second-lien tranche.

Also, Novitex Acquisition LLC (Pitney Bowes Management Services) decreased the size of its first-lien term loan while lifting pricing, setting the offer price at the wide end of guidance and extending the call protection, and the company also upsized its second-lien term loan, while Academi Holdings LLC downsized its first-lien term loan as pricing flexed higher and added a second-lien term loan tranche.

TI Automotive frees up

TI Automotive’s $1.25 billion term loan B broke for trading on Tuesday, with levels quoted at 99 7/8 bid, par 3/8 offered, according to a trader.

The term loan B is priced at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 99½. There is 101 soft call protection for one year.

Recently, pricing on the loan was reduced from talk of Libor plus 350 bps to 375 bps and the discount finalized at the tight end of the 99 to 99½ talk.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt and fund a dividend.

TI Automotive is an Auburn Hills, Mich.-based supplier of fluid storage, carrying and delivery technology.

VeriFone tops OID

VeriFone’s credit facility began trading too, with the $200 million seven-year covenant-light term loan B seen at par bid, par ½ offered, a trader said.

Pricing on the B loan is Libor plus 275 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

The company’s $1.3 billion credit facility (Ba3/BB) also includes a $500 million five-year revolver and a $600 million five-year term loan A.

During syndication, the term loan B was downsized from $250 million, pricing was reduced from talk of Libor plus 300 bps to 325 bps and the call protection was extended from six months, the revolver was upsized from $400 million and the term loan A was increased from $550 million.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, RBC Capital Markets, Wells Fargo Securities LLC and Barclays are leading the deal that will be used to refinance existing debt.

VeriFone is a San Jose, Calif.-based company that makes secure electronic payment equipment.

Confie Seguros breaks

Confie Seguros allocated and freed to trade its fungible add-on debt, with the $75 million add-on first-lien term loan quoted at par ¼ bid, par ¾ offered and the $35 million add-on second-lien term loan quoted at 101 bid, 101½ offered, according to a market source.

Pricing on the add-on first-lien term loan is Libor plus 450 bps with a 1.25% Libor floor, in line with the existing first-lien term loan, and it was sold at an original issue discount of 99½.

The second-lien term loan matches existing second-lien pricing at Libor plus 900 bps with a 1.25% Libor floor, and the new debt was issued at 99¾.

During syndication, the add-on first-lien term loan was upsized from $65 million and the discount firmed at the tight end of the 99 to 99½ talk, and the add-on second-lien term loan was downsized from $45 million while the discount was changed from 99½.

RBC Capital Markets and GE Capital Markets are leading the deal that will be used by the New York-based provider of personal insurance to fund the acquisition of Personable Holdings Inc.

Healogics levels emerge

Also in trading, Healogics’ $420 million seven-year first-lien covenant-light term loan (B2/B) was seen at par ¼ bid, par ¾ offered on Tuesday and its $200 million eight-year second-lien covenant-light term loan (Caa2/CCC+) was seen at 99 bid, par offered after allocating late in the day on Monday, according to sources.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and it was issued at 99. The debt is non-callable for one year, then 102 in year two and 101 in year three.

The company’s $720 million credit facility also includes a $100 million revolver (B2/B).

During syndication, the second-lien loan was downsized from $220 million, pricing was raised from Libor plus 750 bps and the call protection was sweetened from 102 in year one and 101 in year two, and the first-lien term loan was upsized from $400 million and the spread firmed at the wide end of the Libor plus 400 bps to 425 bps talk.

Healogics funding buyout

Proceeds from Healogic’s credit facility will be used to help fund its purchase by Clayton, Dubilier & Rice from Metalmark Capital and Scale Venture Partners for $910 million.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are leading the facility, with JPMorgan left lead on the first-lien debt and Credit Suisse left lead on the second-lien loan.

Closing is expected this quarter or next quarter.

Healogics is a Jacksonville, Fla.-based provider of advanced wound-care services.

AmSurg downsizes

Switching to the primary, AmSurg cut its seven-year covenant-light term loan B to $870 million from $1.09 billion while keeping talk at Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, a market source said.

With the term loan downsizing, the company’s senior unsecured notes offering was upsized to $1.1 billion from $880 million.

The company’s now $1.17 billion senior secured credit facility also includes $300 million five-year revolver.

Commitments are due at 5 p.m. ET on July 8.

Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Bank of America Merrill Lynch, Jefferies Finance LLC and Wells Fargo Securities LLC are leading the deal.

AmSurg funding acquisition

Proceeds from AmSurg’s credit facility, bonds, cash on hand, the issuance of common stock and a mandatory convertible preferred offering will be used to fund the $2.35 billion acquisition of Sheridan Healthcare from Hellman & Friedman LLC, to repay revolver borrowings and existing senior secured notes, for working capital and to add cash to the balance sheet.

Closing is expected in mid-July, subject to customary conditions and regulatory approvals.

Amsurg is a Nashville-based acquirer, developer and operator of ambulatory surgery centers. Sheridan Healthcare is a Sunrise, Fla.-based provider of multi-specialty outsourced physician services to hospitals, ambulatory surgery centers and other health-care facilities.

TeamViewer restructures

TeamViewer lifted its first-lien covenant-light term loan (B1/B) to $320 million from $310 million, raised pricing to Libor plus 500 bps from talk of Libor plus 450 bps to 475 bps, changed the original issue discount to 97½ from 99 and shortened the maturity to 6½ years from seven years, according to a market source.

Also, pricing on the €100 million first-lien covenant-light term loan (B1/B) was increased to Euribor plus 525 bps from talk of Euribor plus 475 bps to 500 bps, the discount was modified to 97½ from 99 and the maturity was cut to 6½ years from seven years, the source said.

Both first-lien term loans still have a 1% floor and 101 soft call protection for one year.

Meanwhile, pricing on the $125 million second-lien covenant-light term loan (Caa1/CCC+) was raised to Libor plus 850 bps from talk of Libor plus 800 bps to 825 bps, the discount widened to 97 from 98½, the call protection was changed to 103 in year one, 102 in year two and 101 in year three, from 102 in year one and 101 in year two, and the maturity was shortened to seven years from eight years.

As before, the second-lien loan has a 1% Libor floor.

TeamViewer getting revolver

Along with the first- and second-lien term loans, TeamViewer’s credit facility includes a $35 million five-year revolver (B1/B).

In addition to the pricing and structural changes, the excess cash flow sweep was revised to 75% above 4.75 times net total secured leverage, with step-downs to 50% above 4.25 times, 25% above 3.75 times and 0% below 3.75 times net total secured leverage, from 50% with step-downs to 25% below 5 times net total secured leverage and 0% below 4.50 times, the source continued.

Furthermore, the incremental allowance was modified to $75 million plus unlimited amounts subject to 4 times first-lien net secured leverage and 5.25 times total net secured leverage, from $100 million plus unlimited amounts subject to 4.2 times first-lien net secured leverage and 5.4 times total net secured leverage.

TeamViewer readies allocations

Recommitments for TeamViewer’s U.S. debt were due at 5 p.m. ET on Tuesday and recommitments for the euro debt are due noon BST on Wednesday, with allocations expected on Wednesday as well.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Nomura are leading the deal that will be used to help fund the buyout of the company by Permira, and the first-lien term loan upsizing amount will be used to cover the larger original issue discounts.

TeamViewer is a Germany-based provider of secure remote support software and Online Meetings.

Novitex revises deal

Novitex reduced its six-year first-lien term loan to $305 million from $355 million, raised pricing to Libor plus 625 bps from talk of Libor plus 575 bps to 600 bps, set the original issue discount at 99, the wide end of the 99 to 99½ talk, and extended the 101 soft call protection to one year from six months, a source said, adding that the 1.25% Libor floor was unchanged.

On the flip side, the seven-year second-lien term loan was increased to $140 million from $100 million, while pricing was left at Libor plus 1,050 bps with a 1.25% Libor floor and an original issue discount of 99, and the call protection remained at 102 in year one and 101 in year two.

Recommitments were due at 5 p.m. ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC and UBS AG are leading the now $445 million of term loans that will be used to refinance existing bank debt and fund a dividend.

Novitex is a Stamford, Conn.-based provider of mail and print outsourcing services.

Academi changes surface

Academi reduced its five-year first-lien term loan to $200 million from $280 million and lifted pricing to the Libor plus 500 bps area from Libor plus 425 bps, while the 1% Libor floor and original issue discount of 99 were unchanged, a source remarked.

With the first-lien downsizing, the company added an $80 million second-lien term loan to its capital structure that is talked in the 10% area, the source continued.

The company’s credit facility also includes a five-year revolver.

Bank of America Merrill Lynch is leading the deal that will be used to fund the acquisition of Constellis Group Inc., to refinance existing debt and for general corporate purposes.

Academi is a McLean, Va.-based provider of training and security services focused on counterterrorism, force protection, law enforcement and security operations. Constellis is a provider of security, support and advisory services to government, multinational corporations and international organizations.

Brickman closes

In other news, Brickman Group Ltd. LLC completed its acquisition of ValleyCrest Cos. LLC, a news release said.

To fund the acquisition, Brickman got a fungible $725 million incremental first-lien term loan due December 2020 priced at Libor plus 300 bps with a 1% Libor floor, in line with the existing $735 million first-lien covenant-light term loan, and sold at an original issue discount of 99. All of the first-lien term debt has 101 soft call protection for six months.

The company also got a $100 million revolver.

Jefferies Finance LLC, Macquarie Capital (USA) Inc., Mizuho Bank, Sumitomo Mitsui Banking Corp., Nomura and KKR Capital Markets led the $825 million deal (B2/B) and Morgan Stanley Senior Funding Inc. is the administrative agent.

Brickman is a Rockville, Md.-based provider of landscape maintenance and snow removal services. ValleyCrest is a Calabasas, Calif.-based landscape services company.

West wraps

West Corp. closed on an amendment to its senior secured credit facility, providing for a $350 million five-year delayed-draw term loan A-1 available until Dec. 31 and a $300 million five-year revolver, a news release said.

Pricing on the term loan A and the revolver is Libor plus 225 basis points with step-downs based on leverage.

Wells Fargo Securities LLC and Deutsche Bank Securities Inc. led the deal

Proceeds will be used to redeem notes.

West is an Omaha-based technology-driven communication services provider.

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