Adient, JBS USA, NEO Tech free to trade; ION Investment restructures loan transaction

By Sara Rosenberg

New York, April 25 – Adient plc increased the size of its term loan B and then the debt broke for trading on Thursday above its original issue discount, and deals from JBS USA Lux SA and NEO Tech Inc. surfaced in the secondary market as well.

In more happenings, ION Investment Group downsized its seven-year term loan piece, added a four-year term loan to its capital structure and extended the call protection.

Additionally, Digital Room Holdings Inc., Wheel Pros and LightBox Holdings disclosed price talk with launch, and Apollo Commercial Real Estate Finance Inc. joined this week’s primary calendar.

Adient upsizes, breaks

Adient lifted its five-year covenant-lite term loan B to $800 million from $750 million, according to a market source.

The loan is priced at Libor plus 425 basis points with a step-down that is available after Dec. 31 to Libor plus 400 bps when first-lien net leverage is less than 1.5 times, a 0% Libor floor and an original issue discount of 99.5 and has 101 soft call protection for six months.

Earlier in syndication, the spread on the term loan was trimmed from Libor plus 450 bps, the step-down was added, and the discount was revised from 99.

The term loan B freed up for trading on Thursday, with levels quoted at 100¼ bid, 100¾ offered, a trader added.

Bank of America Merrill Lynch is the left lead on the term loan that will be used with a $1.25 billion asset-based revolver and $800 million of senior secured notes, upsized from $750 million, to refinance existing credit facilities and for general corporate purposes.

Closing is expected on May 6.

Adient is a Plymouth, Mich.-based manufacturer of automotive seating.

JBS starts trading

JBS USA’s $1.9 billion seven-year term loan B (Ba2) also broke, with levels seen at par bid, 100¼ offered, a trader remarked.

Pricing on the term loan B is at Libor plus 250 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

On Wednesday, the discount on the term loan was revised from 99.5 and the MFN sunset was changed to 24 months from 12 month.

Barclays is the sole bookrunner on the deal and a joint lead arranger with BMO Capital Markets, RBC Capital Markets, Rabobank, SunTrust Robinson Humphrey Inc. and U.S. Bank.

The new term loan B will be used with $150 million of add-on 5.875% senior unsecured notes due 2024, $150 million of add-on 5.75% senior unsecured notes due 2025, $400 million of add-on 6.5% senior unsecured notes due 2029 and cash from the balance sheet to refinance an existing term loan B due 2022.

JBS is a Greeley, Colo.-based animal protein products processing company.

NEO hits secondary

NEO Tech’s $325 million seven-year first-lien senior secured term loan B (B2/B+) began trading too, with levels quoted at 99½ bid, 100½ offered, a market source said.

Pricing on the term loan B is Libor plus 500 bps with a step-down to Libor plus 475 bps at 0.5 times inside closing date leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for six months.

On Wednesday, the term loan was upsized from $315 million, the spread firmed at the low end of the Libor plus 500 bps to 525 bps talk, the step-down was added and the discount was tightened from 98.5.

Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and, as a result of the recent upsizing, to fund working capital and repay normal course drawings on the ABL revolver during the quarter.

Closing is expected during the week of April 29.

NEO Tech is a Chatsworth, Calif.-based designer and manufacturer of high-reliability electronic and micro-electronic system design and manufacturing services.

ION retranches

Back in the primary market, ION Investment added a $400 million equivalent U.S. and euro four-year term loan to its transaction, with the U.S. piece talked at Libor plus 475 bps with a 0% Libor floor and an original issue discount of 99, and the euro tranche talked at Euribor plus 425 bps with a 1% floor and a discount of 99, according to a market source.

Furthermore, the company downsized its U.S. and euro seven-year term loan to $1.81 billion equivalent from $2.2 billion equivalent, while leaving talk unchanged at Libor plus 550 bps with a 0% Libor floor and a discount of 98.5 for the U.S. tranche, and Euribor plus 500 bps with a 1% floor and a discount of 98.5 for the euro piece, the source said.

Also, the company extended the 101 soft call protection on the term loan debt to one year from six months.

ION timing

Commitments for ION’s loan transaction continue to be due at 5 p.m. ET on Tuesday, with allocations expected shortly thereafter, the source added.

UBS Investment Bank is leading the deal that will be used for the refinancing of ION’s corporates division, which include Openlink Financial LLC, Wall Street Systems, Triple Point Technology and Allegro.

ION is a provider of mission-critical trading and workflow automation software solutions to financial institutions, central banks, governments and corporations.

Digital Room launches

Digital Room held its bank meeting on Thursday and announced price talk on its $280 million seven-year first-lien term loan (B-) and $85 million eight-year second-lien term loan (CCC), a market source said.

The first-lien term loan is talked at Libor plus 475 bps to 500 bps with a 0% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 875 bps to 900 bps with a 0% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $395 million of credit facilities also include a $30 million revolver (B-).

Commitments are due on May 9.

KKR Capital Markets, BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are leading the deal that will be used for a dividend recapitalization.

Digital Room is an e-commerce provider in the online short-run print market.

Wheel Pros sets talk

Wheel Pros launched at its morning bank meeting its fungible $326 million incremental first-lien term loan at talk of Libor plus 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due on May 9, the source added.

The company is also getting a $90 million privately placed incremental second-lien term loan.

UBS Investment Bank, Antares Capital, Deutsche Bank Securities Inc. and ING are leading the deal that will be used to fund a transformative acquisition.

Pro forma EBITDA will be about $130 million, first-lien leverage will be around 4.25 times and total leverage will be about 5.5 times.

Wheel Pros is a distributor of proprietary branded wheels and performance tires.

LightBox reveals guidance

LightBox Holdings held its call in the afternoon launching its $155 million term loan B and $35 million delayed-draw term loan B at talk of Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $210 million of credit facilities also include a $20 million revolver.

Commitments are due at 5 p.m. ET on May 7, the source said.

RBC Capital Markets, Bank of America Merrill Lynch and Citizens Bank are leading the deal that will be used to finance acquisitions.

LightBox is a data and SaaS solutions provider supporting the commercial real estate diligence and risk management ecosystem. The company was formed by Silver Lake Partners and Battery Ventures after the acquisition of EDR in April 2018.

Apollo Commercial on deck

Apollo Commercial Real Estate Finance set a lender call for 11 a.m. ET on Friday to launch a $400 million seven-year senior secured term loan B (Ba2/BB-) talked at Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on May 7, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes.

Apollo Commercial is a New York-based real estate investment trust that primarily originates, acquires, invests in and manages performing commercial real estate mortgage loans, subordinate financings, and other commercial real estate-related debt investments.

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