SMG Holdings, WEX, Focus Financial, EagleView break; Spectrum Plastics revises deadline

By Sara Rosenberg

New York, Jan. 12 – The secondary market saw a few deals free up for trading on Friday, including SMG Holdings Inc. (Stadium Management Group), WEX Inc. and Focus Financial Partners LLC.

Additionally, EagleView Technology Corp. firmed the spread on its term loan B at the low end of guidance and then it too made its way into the secondary market, with the term loan trading above its issue price.

In more happenings, Spectrum Plastics Group accelerated the commitment deadline on its credit facilities, and Phoenix Services International LLC and Concentra Group Holdings LLC launched their new loan transactions to investors.

Furthermore, MedRisk LLC, AMG Advanced Metallurgical Group NV and Vizient Inc. joined the near-term primary calendar.

SMG hits secondary

SMG Holdings’ credit facilities broke for trading on Friday, with the $415 million seven-year first-lien covenant-light term loan seen by one trader at par 3/8 bid, par 7/8 offered and by a second trader at 101 bid, 101½ offered.

The company’s $180 million eight-year second-lien covenant-light term loan was quoted by the second trader at 102½ bid, 103½ offered.

Pricing on the first-lien term loan is Libor plus 325 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99.875. The loan has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 700 bps with a 0% Libor floor and was issued at a discount of 99.75. This tranche has call protection of 102 in year one and 101 in year two.

The company’s $650 million of credit facilities include a $55 million revolver as well.

SMG lead banks

Jefferies LLC, Nomura and Macquarie Capital (USA) Inc. are leading SMG’s credit facilities, with Jefferies left on the first-lien and Nomura left on the second-lien.

During syndication, the first-lien term loan was upsized from $395 million, pricing was cut from Libor plus 350 bps and the discount was tightened from 99.5. Also, the second-lien term loan was downsized from $200 million, the spread was lowered from Libor plus 750 bps and the discount was revised from 99.

Proceeds will be used to help fund the buyout of the company by Onex Corp.

Closing is expected early this year, subject to customary conditions and regulatory approvals.

SMG is a Philadelphia-based manager of convention centers, stadiums, arenas, theaters, performing arts centers and other venues.

WEX frees up

WEX’s fungible $150 million add-on covenant-light term loan B due July 1, 2023 and repriced $1,185,000,000 covenant-light term loan B due July 1, 2023 also began trading, with levels quoted at par ¼ bid, par ¾ offered, a trader said.

Pricing on the debt is Libor plus 225 bps with a 0% Libor floor and it was issued at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

During syndication, the add-on term loan was upsized from $100 million.

Bank of America Merrill Lynch, Citizens Bank, MUFG, SunTrust Robinson Humphrey Inc. and BMO Capital Markets are leading the deal.

The add-on loan will be used pay down revolver borrowings, and the repricing will take the existing term loan B down from Libor plus 275 bps with a 0% Libor floor.

WEX is a South Portland, Maine-based provider of corporate payment solutions.

Focus Financial breaks

Focus Financial Partners’ $793 million covenant-light first-lien term loan (Ba3/B+) due July 3, 2024 emerged in the secondary market as well, with levels seen at par ½ bid, 101 offered, according to a trader.

Pricing on the loan is Libor plus 275 bps with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 0% Libor floor.

Focus Financial is a New York-based partnership of independent, fiduciary wealth-management firms.

EagleView sets spread, trades

EagleView Technology firmed pricing on its $334,091,094 covenant-light senior secured first-lien term loan B (B3/B) due July 15, 2022 at Libor plus 350 bps, the tight end of the Libor plus 350 bps to 375 bps talk, according to a market source.

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

After final terms were in place, the loan began trading and levels were quoted at par ¼ bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc. and Nomura Securities International Inc. are leading the deal that will be used to reprice an existing term loan B down from Libor plus 425 bps with a 1% Libor floor.

Closing is expected on Jan. 19.

EagleView is a Bothell, Wash.-based technology provider of aerial imagery, data analytics and GIS solutions.

Spectrum Plastics accelerated

Also in the loan market, Spectrum Plastics Group moved up the commitment deadline on its $680 million of credit facilities to Jan. 18 from Jan. 24, a market source remarked.

The facilities consist of a $45 million five-year revolver, a $430 million seven-year covenant-light first-lien term loan, a $45 million seven-year delayed-draw first-lien term loan and a $160 million eight-year second-lien term loan.

Talk on the first-lien term debt is Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 750 bps with a 1% Libor floor and a discount of 99.

Call protection on the first-lien term loan is a 101 soft call for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The delayed-draw loan has a two-year delayed-draw period and a ticking fee of 1% for six months, then half the margin from months seven to 12 and the full margin thereafter.

Antares Capital, KeyBanc Capital Markets, Bank of Ireland and Citizens are leading the deal that will be used to help fund the buyout of the company by AEA Investors from Kohlberg & Co.

Spectrum Plastics is an Atlanta-based designer, developer and manufacturer of highly-engineered polymer-based solutions used in medical and other specialty end-markets.

Phoenix Services guidance

Phoenix Services held its call on Friday and announced talk on its $465 million seven-year first-lien term loan at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

The company’s $530 million of credit facilities also include a $65 million revolver.

Commitments are due at noon ET on Jan. 26, the source added.

Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading the deal that will be used to help fund the buyout of the company by Apollo Global Management from Olympus Partners.

Phoenix Services is a provider of outsourced slag handling, metal reclamation and other complementary services to steel mill customers.

Concentra holds call

Concentra Group hosted its lender call during the session, launching its $555 million senior secured incremental term loan (B1/B+) at talk of Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The company is also getting a privately-placed second-lien term loan (Caa1/B-) that has been outlined at a size of $240 million in previous filings with the Securities and Exchange Commission.

As part of this transaction existing lenders are being offered a 12.5 bps consent fee for amendments to the company’s existing credit agreement, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the acquisition of U.S. HealthWorks Inc. from Dignity Health in a transaction valued at $753 million, subject to certain customary adjustments for working capital, cash, debt, transaction expenses and other items. Dignity Health will receive a 20% equity interest in the combined entity, valued at $238 million, and the remainder of the purchase price in cash.

Closing is expected this quarter, subject to regulatory approval.

Concentra is an Addison, Texas-based occupational medicine and urgent care service provider. U.S. HealthWorks is a Valencia, Calif.-based operator of occupational health care centers.

MedRisk coming soon

MedRisk scheduled a bank meeting for 11 a.m. ET on Wednesday to launch $705 million of senior secured credit facilities, a market source said.

The facilities consist of a $60 million five-year revolver, a $445 million seven-year first-lien term loan that has 101 soft call protection for six months and a $200 million eight-year second-lien term loan that has hard call protection of 102 in year one and 101 in year two, the source added.

Jefferies LLC, Antares Capital, Barclays and Nomura are leading the deal, which will be used with equity to fund the buyout of the company by the Carlyle Group from TA Associates.

MedRisk is a King of Prussia, Pa.-based provider of physical medicine solutions to the workers’ compensation industry.

AMG readies deal

AMG Advanced Metallurgical Group set a lender meeting for 1 p.m. ET on Tuesday to launch $500 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $200 million five-year revolver and a $300 million seven-year covenant-light term loan B, the source added.

HSBC Securities (USA) Inc. and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt, to fund growth initiatives and for general corporate purposes.

AMG is a producer and processor of specialty metals and mineral products.

Vizient joins calendar

Vizient emerged with plans to hold a lender call at 2 p.m. ET on Tuesday to launch a $1.05 billion term loan B due Feb. 13, 2023, according to a market source.

Barclays is leading the deal that will be used to reprice an existing term loan B from Libor plus 350 bps with a 1% Libor floor in connection with a paydown from a concurrent pro-rata deal.

Vizient is an Irving, Texas-based network of not-for-profit health care organizations.

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