ECi, Aristocrat, HUB, TNS, Flexera break; Avantor, Wilshire, Waste, Multi-Color revised

By Sara Rosenberg

New York, Sept. 19 – ECi Software Solutions’ credit facilities emerged in the secondary market on Tuesday, with the first-and second-lien term loans quoted above their original issue discounts, and Aristocrat Leisure Ltd. and HUB International Ltd. broke too.

Also, TNS Inc. downsized its add-on term loan B, and Flexera Software LLC modified the original issue discount on its add-on term loan, and then both of these deals freed up for trading as well.

In more happenings, Avantor reduced its U.S. term loan size and increased its euro term loan amount, revised original issue discount talk on the debt and sweetened the call protection, and Wilshire Grand Center (Hanjin International Corp.) tightened spread and issue price on its term loan B.

In addition, Waste Industries (Wrangler Buyer Corp.) set pricing on its term loan, added a step-down and modified the issue price, Multi-Color Corp. upsized its term loan B while tightening the spread and original issue discount, and International Equipment Solutions LLC accelerated the commitment deadline on its term loan B.

Furthermore, West Corp. (Olympus Merger Sub Inc.), Caesars Resort Collection LLC, Ring Container Technologies, PSC/HydroChem, MW Industries, Authentic Brands Group, Ultra Petroleum Corp. and Institutional Shareholder Services Inc. (ISS) released price talk with launch, and Odyssey Logistics & Technology Corp. joined this week’s primary calendar.

ECi Software tops OIDs

ECi Software Solutions’ credit facilities broke for trading on Tuesday, with the $380 million first-lien term loan B (B2/B) quoted at 99¾ bid, par ½ offered and the $140 million second-lien term loan (Caa2/CCC) quoted at 99½ bid, 101 offered, according to traders.

Pricing on the first-lien term loan is Libor plus 425 basis points 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 800 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan firmed at the high end of the Libor plus 400 bps to 425 bps talk and the discount widened from 99.5, and the discount on the second-lien loan finalized at the tight end of the 98.5 to 99 talk.

The company’s $570 million of credit facilities also provide for a $50 million revolver (B2/B).

ECi lead banks

Bank of America Merrill Lynch and RBC Capital Markets Corp. are leading ECi Software’s credit facilities, with Bank of America the left lead on the first-lien and RBC the left lead on the second-lien.

Proceeds will be used to help fund the buyout of the company by Apax Partners from the Carlyle Group and Level Equity. Carlyle will retain a minority ownership position in the company.

Concurrent with this transaction, the Macola, JobBOSS and MAX businesses of Exact Software, a current Apax Funds portfolio company, will be combined with ECi. These businesses provide enterprise resource planning software applications to a wide range of manufacturers.

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

ECi is a Fort Worth, Texas-based provider of enterprise resource planning software solutions to small- and medium-sized businesses across the distribution, field services, building and construction and manufacturing industries.

Aristocrat frees up

Aristocrat Leisure’s term debt hit the secondary market too, with the $425 million seven-year incremental senior secured covenant-light term loan B quoted at par bid, par ½ offered and the repriced $950 million senior secured covenant-light term loan B due Oct. 20, 2021 quoted at par 1/8 bid, par ½ offered, a market source said.

Pricing on the term loans is Libor plus 200 bps with a 0% Libor floor, and the debt has 101 soft call protection for six months. The incremental loan was sold at a discount of 99.75, and the repricing was issued at par.

During syndication, pricing on the incremental loan was set at the low end of the Libor plus 200 bps to 225 bps talk and the discount was tightened from 99.5, and the repricing request was added to the transaction.

Citigroup Global Markets Inc. is leading the deal (Ba1/BB+) for the Sydney, Australia-based provider of gaming services. UBS Investment Bank is the administrative agent.

The incremental loan will be used with existing cash to fund the acquisition of Plarium Global Ltd., a Herzliya, Israel-based social gaming company, for $500 million, and the repricing will take the existing term loan down from Libor plus 225 bps with a 0% Libor floor.

Closing on the incremental is expected at the end of October and closing on the repricing is expected late this month.

HUB hits secondary

HUB International’s fungible $350 million add-on term loan B (B1/B) due Oct. 2, 2020 began trading too, with levels quoted at par 3/8 bid, par 5/8 offered, a trader said.

Pricing on the add-on term loan matches existing term loan B pricing, which is Libor plus 325 bps at more than 4 times net first-lien leverage and Libor plus 300 bps at less than or equal to 4 times net first-lien leverage and a 1% Libor floor. Currently, the company is at the Libor plus 300 bps rate on its term loan B, but it will step up to Libor plus 325 bps because leverage will be above 4 times upon completion of the add-on.

The add-on term loan was issued at par and has 101 soft call protection for six months.

On Monday, the issue price on the term loan was tightened from 99.75.

Nomura and Macquarie Capital (USA) Inc. are leading the deal that will be used to repay revolver borrowings and to fund cash to the balance sheet.

Closing is expected during the week of Sept. 25.

HUB is a Chicago-based insurance brokerage.

TNS trims size, trades

TNS reduced its add-on first-lien term loan B size to $143 million from $150 million as the decision was made to use more cash from the balance sheet to repay its second-lien term loan, a market source remarked.

Pricing on the add-on term loan is Libor plus 400 bps with no Libor floor and an original issue discount of 99.75, and the debt includes 101 soft call protection for six months.

With final terms in place, the add-on term loan B made its way into the secondary market and levels were quoted at par 3/8 bid, par 7/8 offered, the source added.

Along with the add-on term loan B, the company is getting a $50 million add-on to its revolver.

SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. are leading the deal.

TNS is a Reston, Va.-based provider of data communications and interoperability services.

Flexera tweaked, breaks

Flexera Software moved the original issue discount on its fungible $130 million add-on term loan (B1/B) due April 2, 2020 to 99.75 from 99.51, a market source remarked.

As before, pricing on the add-on term loan matches existing term loan pricing at Libor plus 350 bps with a 1% Libor floor.

Recommitments were due at noon ET on Tuesday and shortly thereafter the loan freed to trade with levels quoted at par bid, par ¾ offered, the source added.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Flexera is an Itasca, Ill.-based software company.

Avantor restructures

Avantor cut its U.S. seven-year first-lien term loan to $1,802,000,000 from $2,401,000,000 and lifted its euro seven-year first-lien term loan to €1 billion from €500 million, changed original issue discount talk on both loans to a range of 98 to 98.5 from 99, and extended the 101 soft call protection on the loans to one year from six months, according to a market source.

The U.S. term loan is still priced at Libor plus 400 bps with a 1% Libor floor and the euro term loan is still priced at Euribor plus 425 bps with a 0% floor.

The company’s credit facilities (B2/B/BB) also include a $250 million revolver.

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

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC and Jefferies LLC are leading the deal.

Avantor buying VWR

Proceeds from Avantor’s credit facilities will be used to help fund its acquisition of VWR International LLC for $33.25 in cash per share, reflecting an enterprise value of about $6.4 billion, and to fund a distribution to equity holders.

The company also plans on getting $1,401,000,000 in senior secured notes, €500 million in senior secured notes, $2.25 billion in senior unsecured notes and preferred equity financing, and using cash on hand for the transaction.

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

Following the closing, New Mountain Capital will be the lead shareholder of the combined company.

Avantor is a Center Valley, Pa.-based supplier of ultra-high-purity materials for the life sciences and advanced technology industries. VWR is a Radnor, Pa.-based provider of product, supply chain, and service solutions to laboratory and production customers.

Wilshire cuts pricing

Wilshire Grand Center lowered the spread on its $600 million three-year senior secured term loan B (Ba3/B+) to Libor plus 250 bps from Libor plus 300 bps and adjusted the original issue discount to 99.75 from 99.5, a market source said.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Commitments are still due at noon ET on Wednesday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt, fund cash to the balance sheet and pay transaction-related fees and expenses.

Wilshire Grand is a hotel and mixed-use building.

Waste Industries updated

Waste Industries firmed pricing on its $890 million seven-year covenant-light first-lien term loan at Libor plus 300 bps, the low end of revised talk of Libor plus 300 bps to 325 bps and the high end of initial talk of Libor plus 275 bps to 300 bps, according to a market source.

Furthermore, a step-down was added to the term loan to Libor plus 275 bps at 0.5 times inside closing leverage and the issue price was changed to par from 99.5, the source said, adding that the 0% Libor floor and 101 soft call protection for six months were unchanged.

The company’s $1.09 billion of credit facilities (B1/B) also include a $200 million five-year revolver.

Final commitments were due at 5 p.m. ET on Tuesday.

Barclays, Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with $305 million in senior notes to help fund the acquisition of the company by HPS Investment Partners LLC and Equity Group Investments from Macquarie Infrastructure Partners.

Closing is expected late this month, subject to customary regulatory approvals.

Waste Industries is a Raleigh, N.C.-based provider of non-hazardous solid waste collection, transfer, recycling and disposal services.

Multi-Color modified

Multi-Color raised its seven-year covenant-light term loan B to $500 million from $400 million, cut pricing to Libor plus 225 bps from Libor plus 250 bps and changed the original issue discount to 99.75 from 99.5, while leaving the 0% Libor floor and 101 soft call protection for six months unchanged, a market source remarked.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and KeyBanc Capital Markets leading the deal that will be used to help fund the acquisition of the labels division of Constantia Flexibles GmbH, to refinance an existing revolver and for general corporate purposes.

The transaction purchase price is about $1.3 billion and will be settled in cash and 3.4 million shares of Multi-Color stock issued to Constantia Flexibles at a price of $75.00 per share.

Closing is expected in the fiscal quarter ending Dec. 31, subject to customary conditions.

Multi-Color is a Cincinnati-based label maker.

International Equipment accelerated

International Equipment Solutions moved up the commitment deadline on its $215 million term loan B (B3/B+) due August 2022 to 5 p.m. ET on Tuesday from noon ET on Thursday, a market source said.

Talk on the loan is Libor plus 550 bps when net first-lien leverage is 3.25 times and Libor plus 500 bps when net first-lien leverage is less than 3.25 times, with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year.

Bank of America Merrill Lynch and PNC Capital Markets LLC are leading the deal that will be used to refinance an existing term loan.

International Equipment is an Oak Brook, Ill.-based equipment company.

West discloses guidance

Also in the primary, West Corp. held its bank meeting on Tuesday afternoon and, a few hours before the event kicked off, price talk on its $2.7 billion seven-year covenant-light first-lien term loan was announced at Libor plus 325 bps to 350 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $3.05 billion senior secured deal (Ba3/B/BB+) also includes a $350 million revolver.

Commitments are due on Oct. 2.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the credit facilities that will be used with $1.35 billion in senior unsecured notes and up to $1.3 billion in equity to fund the buyout of the company by Apollo Global Management LLC for $23.50 per share in cash. The transaction has an enterprise value of about $5.1 billion, including net debt.

Closing is expected in the second half of the year, subject to regulatory approvals, stockholder approval and other customary conditions.

West is an Omaha-based provider of communication and network infrastructure services.

Caesars Resort holds meeting

Caesars Resort Collection had its bank meeting in the afternoon, and its $4.7 billion seven-year covenant-light first-lien term loan was launched at talk of Libor plus 250 bps to 275 bps with a 0% Libor floor and an original issue discount of 99.5, a market source said.

The term loan has 101 soft call protection for six months.

The company’s $5.7 billion of credit facilities (Ba3/BB) also include a $1 billion revolver.

Commitments are due at 5 p.m. ET on Sept. 28.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to finance the combination of Caesars Growth Properties Holdings LLC and Caesars Entertainment Resort Properties LLC, including a refinancing of debt at both entities.

Caesars Resort is an owner of a collection of casino properties.

Ring Container reveals talk

Ring Container Technologies released price talk of Libor plus 300 bps to 325 bps with no floor and an original issue discount of 99.5 on its $445 million seven-year covenant-light term loan that launched with a bank meeting during the session, a market source remarked.

The company is also getting a $30 million delayed-draw term loan talked with a ticking fee of 35 bps from days 61 to 120, half the margin from days 121 to 180 and Libor plus the full margin thereafter, the source added.

Commitments are due at noon ET on Sept. 28.

Bank of America Merrill Lynch, BMO Capital Markets and Antares Capital are leading the deal that will be used to help fund the buyout of the company by MSD Partners LP from Carl Ring and his family.

Closing is expected in the fourth quarter.

Ring Container is an Oakland, Tenn.-based blow molder of high-density polyethylene and polyethylene terephthalate plastic bottles for the food service, retail food and other end-use markets.

PSC/HydroChem launches

PSC/HydroChem announced price talk on its $430 million seven-year first-lien term loan B and $140 million eight-year second-lien term loan with its morning bank meeting, according to a market source.

Talk on the first-lien term loan is Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 825 bps to 850 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Oct. 3.

Goldman Sachs Bank USA and Jefferies LLC are leading the $570 million in term loans that will be used to help fund PSC’s acquisition of Aquilex Holdings LLC, the owner of HydroChem, from Centerbridge Partners LP.

Closing is expected this year, subject to customary conditions.

PSC, a portfolio company of Littlejohn & Co. LLC, and HydroChem are providers of industrial cleaning services to the industrial and energy infrastructure markets.

MW terms surface

MW Industries disclosed talk on its $385 million seven-year first-lien term loan (B) and $120 million eight-year second-lien term loan (CCC+) in connection with its morning bank meeting, according to a market source.

The first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $575 million of credit facilities also include a $70 million five-year revolver (B).

Commitments are due on Sept. 27, the source added.

RBC Capital Markets, Citigroup Global Markets Inc., Jefferies LLC, Citizens Bank and Antares Capital are leading the deal that will be used to help fund the buyout of the company by American Securities from Genstar.

MW Industries is a Rosemont, Ind.-based designer and manufacturer of springs and other specialty engineered metal components for diverse end markets.

Authentic Brands details

Authentic Brands Group held its lender call, at which time lenders were presented with $1.07 billion of credit facilities split between a $75 million revolver (B1/B), a $685 million seven-year first-lien term loan (B1/B) and a $310 million eight-year second-lien term loan (Caa1/CCC+), a market source said.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due at noon ET on Monday.

Bank of America Merrill Lynch is the left lead on the deal that will be used to help refinance existing credit facilities, fund a dividend payment and finance an acquisition.

Authentic Brands is a New York-based brand development and licensing company.

Ultra Petroleum releases talk

Ultra Petroleum came out with talk of Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months on its fungible $175 million incremental term loan B that launched with a morning lender call, according to a market source.

Spread and floor on the incremental loan matches existing term loan pricing.

Commitments are due at 5 p.m. ET on Monday, the source said.

Barclays, BMO Capital Markets, Capital One and Goldman Sachs Bank USA are leading the deal that will be used to repay reserve-based lending revolver borrowings and to pay transaction related fees.

Ultra Petroleum is a Houston-based independent exploration and production company.

Institutional Shareholder guidance

Institutional Shareholder Services announced price talk on its first-and second-lien term loans in connection with its bank meeting, a market source remarked.

The $275 million seven-year covenant-light first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the $110 million eight-year second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source added.

Commitments are due on Oct. 3.

The company’s $450 million of credit facilities also include a $40 million five-year revolver and a $25 million seven-year with one-year undrawn availability delayed-draw term loan.

Antares Capital and Golub Capital are leading the deal that will be used to help fund buyout of the company by Genstar Capital from Vestar Capital Partners for $720 million.

Closing is expected by early fourth quarter, subject to customary conditions.

Institutional Shareholder Services is a Rockville, Md.-based provider of corporate governance and responsible investment solutions to financial market participants.

Odyssey readies deal

Odyssey Logistics & Technology set a bank meeting for 10 a.m. ET in New York on Wednesday to launch $380 million of credit facilities, a market source said.

The facilities consist of a $50 million revolver, a $245 million seven-year covenant-light first-lien term loan and an $85 million eight-year covenant-light second-lien term loan.

The first-lien term loan has a 1% Libor floor and 101 soft call protection for six months, and the second-lien term loan has a 1% Libor floor and call protection of 102 in year one and 101 in year two, the source added.

Commitments are due at 5 p.m. ET on Oct. 4.

Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by The Jordan Co.

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

Odyssey Logistics is a Danbury, Conn.-based provider of multi-modal transportation solutions and transportation management.

AlixPartners sets deadline

In other news, AlixPartners LLP came out with a commitment deadline of the close of business on Sept. 26 for its $1,377,000,000 covenant-light term loan B (B2/B+) due April 2024 that launched with a morning lender call, according to a market source.

As previously reported, talk on the term loan is Libor plus 275 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 300 bps with a 1% Libor floor.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

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