Avaya up on asset sale buzz; Mattress Firm rises; Oasis Outsourcing, Truck Hero tweak deals

By Sara Rosenberg

New York, Aug. 8 – Avaya Inc.’s term loans rose by a number of points in trading on Monday in response to chatter about a potential sale of its call center business and Mattress Firm Holding Corp.’s term loan was better as the company revealed that it is being acquired by Steinhoff International Holdings NV.

Moving to the primary market, Oasis Outsourcing Holdings Inc. modified the original issue discount on its incremental first-lien term loan, Truck Hero Inc. set the spread on its term loan B at the low end of talk and extended the call protection, and Polyconcept and NEW Asurion Corp. accelerated the commitment deadlines on their term loans.

Also, Dayton Power & Light Co. and Boyd Gaming Corp. released price talk with the launches of their deals, Ziggo came to market with a refinancing transaction and M/A-COM Technology Solutions Holdings Inc. (Macom) launched an add-on term loan.

Furthermore, OpenLink International Inc. approached lenders with an extension of its credit facility, and Amplify Snack Brands Inc., Veresen Midstream and Western Digital Corp. joined this week’s primary calendar.

Avaya strengthens

Avaya saw its term loans gain considerably in the secondary market on Monday as rumors circulated that the company may be selling its call center business, according to a trader.

The term loan B-3 was quoted at 88 bid, 90 offered, up from 80 bid, 82 offered, the term loan B-6 was quoted at 85 bid, 87 offered, up from 78 bid, 79 offered, and the term loan B-7 was quoted at 79½ bid, 81 offered, up from 74½ bid, 75½ offered, the trader said.

Avaya is a Santa Clara, Calif.-based provider of business collaboration and communications services.

Mattress Firm gains

Mattress Firm’s term loan moved up to par 1/8 bid, par 3/8 offered from 99¼ bid, 99¾ offered following news that the company is being purchased by Steinhoff for $64 per share in cash, a trader remarked.

The transaction has a total equity value of about $2.4 billion and an enterprise value of roughly $3.8 billion, including net debt.

Closing is expected by the end of the third quarter, subject to regulatory approvals, satisfaction of a majority tender condition and other customary conditions.

Mattress Firm is a Houston-based mattress retailer. Steinhoff is a Stellenbosch, South Africa-based integrated retailer that manufactures, sources and sells furniture, household goods and clothing.

BWIC announced

A $319.5 million loan Bid Wanted In Competition surfaced, with bids due at 10 a.m. ET on Wednesday, according to a trader.

Some of the names in the portfolio include Amaya, Clondalkin Acquisition BV, DJO Finance LLC, First Data Corp., Huntsman International LLC, Intelsat Jackson Holdings SA, iStar Financial Inc., MTL Publishing LLC, Novelis Inc., Omnova Solutions Inc., Revlon Consumer Products Corp., Starwood Property Trust Inc. and West Corp.

There are about 120 issuers in the portfolio, the trader added.

Oasis tweaks deal

Switching to the primary market, Oasis Outsourcing changed the original issue discount on its fungible $75 million incremental first-lien term loan due Dec. 31, 2021 to 99.75 from 99.5, and left pricing at Libor plus 475 basis points with a 1% Libor floor, a market source said.

Commitments for new money are due at noon ET Tuesday, the source continued.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund the acquisition of a Tennessee-based Professional Employer Organization for about $33 million, and to opportunistically pay down the company’s existing $60 million second-lien term loan.

In connection with the transaction, the company is seeking an amendment to its existing first-lien loan that would reset the 101 soft call protection for six months, modify the incremental allowance and permit the repayment of the second-lien term loan, the source added.

Lenders are being offered a 12.5 bps amendment fee and consents are due at 5 p.m. ET on Tuesday.

Oasis Outsourcing, a Stone Point Capital owned company, is a West Palm Beach, Fla.-based provider of comprehensive and cost-effective HR outsourcing services to small- and medium-sized businesses.

Truck Hero updates deal

Truck Hero finalized pricing on its $525 million seven-year term loan B (B2/B) at Libor plus 475 bps, the tight end of the Libor plus 475 bps to 500 bps talk and extended the 101 soft call protection to one year from six months, while leaving the 1% Libor floor and original issue discount of 99 unchanged, according to a market source.

Included in the term loan B is a $115 million delayed-draw tranche.

The ticking fee on the delayed-draw portion was revised to the full spread plus the floor starting on day 31, from the full spread from days 31 to 60 and the full spread plus the floor thereafter, the source said.

Commitments were due by 3 p.m. ET on Monday.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Antares Capital, Ares, Citizens Bank, KeyBanc Capital Markets, Raymond James and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and for acquisition financing.

Truck Hero is an Ann Arbor, Mich.-based designer and manufacturer of accessories for pickup trucks.

Polyconcept shutting early

Polyconcept moved up the commitment deadline on its $435 million seven-year senior secured first-lien term loan B (B1/B) to 5 p.m. ET on Wednesday from noon ET on Thursday, according to a market source.

The term loan is talked at Libor plus 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Goldman Sachs & Co., RBC Capital Markets and Natixis are leading the deal the will be used to help fund the buyout of the company by Charlesbank Capital Partners from Investcorp.

Along with the first-lien term loan, the company is getting an $88 million ABL revolver (BB-) and a privately placed $175 million second-lien term loan.

Polyconcept is a supplier of promotional products.

NEW Asurion moves deadline

NEW Asurion accelerated the commitment deadline on its $550 million five-year HoldCo unsecured PIK contingent covenant-light term loan to 11 a.m. ET on Tuesday from Thursday, a market source remarked.

The loan is talked at Libor plus 950 bps plus 75 bps for any PIK amount, with a 1% Libor floor, an original issue discount of 98 to 98.5, and call protection of non-callable for one year, then at 102 in year two and 101 in year three.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to fund an equity tender offer and to pay transaction-related fees and expenses.

NEW Asurion is a Nashville-based provider of consumer product protection programs.

Dayton releases talk

Also in the primary market, Dayton Power and Light came out with talk of Libor plus 350 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $445 million senior secured six-year first-lien covenant-light term loan B (Baa2) that launched with a lender presentation on Monday afternoon, according to a market source.

Commitments are due on Aug. 18, the source said.

Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance the company’s existing 1.875% first mortgage bonds due 2016.

Dayton Power is a Dayton, Ohio-based power company.

Boyd sets guidance

Boyd Gaming held its lender call at 1 p.m. ET, launching a $700 million seven-year covenant-light term loan B (Ba3/BB/BB+) with talk of Libor plus 325 bps with a 0.75% Libor floor and an original issue discount of 99.5, a market source said.

Commitments are due on Aug. 16, the source added.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used with cash proceeds from the Borgata sale to refinance existing Peninsula debt and for general corporate purposes.

As part of the transaction, the Peninsula entity, which is currently an unrestricted subsidiary, will be consolidated into the Boyd capital structure.

Boyd is a Las Vegas-based operator of gaming entertainment properties.

Ziggo holds call

Ziggo hosted a lender call at 11 a.m. ET to launch a $750 million and €750 million eight-year term loan B talked at Libor plus 300 bps/Euribor plus 375 bps with no floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on Thursday, the source said.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Scotiabank are the global coordinators on the deal and mandated lead arrangers with ABN Amro, BNP Paribas Securities Corp., Goldman Sachs Bank USA, ING Capital Markets, Morgan Stanley Senior Funding Inc. and Rabobank. Scotia is the administrative agent.

Ziggo, a Utrecht, Netherlands-based television, internet and telephone services provider, will use the new debt to refinance some of a U.S. term loan due in January 2022 and a euro term loan due in March 2021.

Macom seeks add-on

Macom Technology held its lender call, launching a $175 million add-on term loan due May 8, 2021 with talk of Libor plus 375 bps with a 0.75% Libor floor and an original issue discount that is a slight premium to 99 to ensure fungibility, probably 99.05, a source remarked.

Commitments are due on Aug. 17, the source added.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Citizens Bank are leading the debt that will be used to add cash to the balance sheet.

Macom is a Lowell, Mass.-based supplier of high-performance analog RF, microwave, millimeterwave and photonic semiconductor products.

OpenLink comes to market

OpenLink launched via a lender call at 11 a.m. ET a $357.5 million credit facility that consists of a $32.5 million revolver due April 2019 talked at Libor plus 625 and a $325 million first-lien term loan due July 2019 talked at Libor plus 650 bps with a 1.25% Libor floor and 101 hard call protection for one year, a market source said.

Proceeds will be used to extend the maturity of the company’s existing revolver and the first-lien term loan. The minimum extension amount is 90%.

Lenders are being offered a 150 bps extension fee/original issue discount, the source added.

Commitments are due at 3 p.m. ET on Friday.

Credit Suisse Securities (USA) LLC is leading the transaction.

OpenLink is a Uniondale, N.Y.-based provider of cross-asset trading, risk management and operations processing software services.

Amplify readies deal

Amplify Snack Brands set a bank meeting for Tuesday to launch a $650 million senior secured credit facility, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The facility consists of a $50 million five-year revolver that will be unfunded at close, and a $600 million seven-year covenant-light term loan that includes a 1% Libor floor and 101 soft call protection for six months.

Commitments are due on Aug. 24 and closing is expected on Aug. 26.

Jefferies Finance LLC, Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of Crisps Topco Ltd. (Tyrrells) from Investcorp and management for £278 million in cash and about 2.1 million shares of Amplify’s common stock, and to refinance existing debt.

The acquisition is subject to customary conditions including approval by regulators.

Pro forma for the transaction, net leverage is 5.7x based on LTM June 30 pro forma combined adjusted EBITDA of $104.4 million.

Austin, Texas-based Amplify and Herefordshire, England-based Crisps Topco are snack food companies.

Veresen joins calendar

Veresen Midstream emerged with plans to hold a lender call at 11 a.m. ET on Tuesday to launch a $300 million term loan B due March 31, 2022, according to a market source.

RBC Capital Markets is leading the deal.

Veresen Midstream is a Calgary, Alta.-based jointly owned limited partnership between Veresen Inc. and Kohlberg Kravis Roberts & Co. LP that was formed in March 2015 to build, own, and operate natural gas gathering and processing infrastructure in Western Canada.

Western Digital on deck

Western Digital scheduled a lender call for Tuesday to launch a $3 billion covenant-light term loan B due April 2023 talked at Libor plus 400 bps to 425 bps with a 0.75% Libor floor and a par issue price, a market source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice the company’s existing term loan B from Libor plus 550 bps with a 0.75% Libor floor.

With the repricing, existing lenders will get paid down at 101 as a result of current call protection.

Also, the existing term loan B is getting paid down to $3 billion from $3.75 billion with cash on hand.

Western Digital is an Irvine, Calif.-based developer and manufacturer of digital storage solutions.

© 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.