Onvoy, Ascensus, Victory break; Harland, Infor, KinderCare, Array, Printpack tweak deals

By Sara Rosenberg

New York, Feb. 1 – Onvoy LLC’s credit facility surfaced in the secondary market on Wednesday, with the first-lien term loan quoted above its original issue discount, and Ascensus Inc. and Victory Capital Operating LLC freed up too.

Switching to the primary market, Harland Clarke Holdings Corp. tightened the spread and original issue discount on its term loan, Infor moved some funds between its U.S. and euro term loan and updated pricing, and KinderCare Education LLC revised the issue price on its tack-on first-lien term loan.

Also, Array Canada Inc. canceled plans for a delayed-draw term loan, Printpack Inc. reduced pricing on its term loan and extended the call protection, and Mediware Information Systems Inc. and Parkdean Resorts moved up the commitment deadlines on their term loans.

In addition, Scientific Games Corp., WideOpenWest Finance LLC, Creative Artists Agency LLC and NBTY Inc. released price talk with launch, and Linxens and SRS Distribution Inc. emerged with new deal plans.

Onvoy hits secondary

Onvoy’s credit facility broke for trading on Wednesday, with the $550 million seven-year covenant-light first-lien term loan (B) quoted at par bid par ¼ offered by one source and at par bid, par ½ offered by a second source.

Pricing on the first-lien term loan is Libor plus 450 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The company’s $715 million credit facility also includes a $35 million revolver (B) and a $130 million privately placed second-lien term loan.

On Tuesday, the first-lien term loan was upsized from $500 million as the second-lien term loan was downsized from $180 million, pricing was trimmed from Libor plus 500 bps, and the discount was tightened from 98.5.

Credit Suisse Securities (USA) LLC and Regions Bank are leading the debt.

Onvoy being acquired

Proceeds from Onvoy’s credit facility and equity will be used to help fund its merger with Inteliquent Inc. that will take place in connection with the buyout of Inteliquent by GTCR LLC.

Inteliquent is being purchased for $23.00 in cash per share of common stock. The value of the transaction is about $800 million.

Closing is expected this quarter, subject to approval from Inteliquent stockholders, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as well as FCC and state regulatory approvals and other customary conditions.

Onvoy is a Plymouth, Minn.-based communications enabler. Inteliquent is a Chicago-based interconnection partner for communications service providers.

Ascensus starts trading

Ascensus’ $421 million first-lien term loan due December 2022 freed up as well, with levels seen at par bid, par ½ offered, a source said.

Pricing on the loan is Libor plus 400 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Ascensus is a Dresher, Pa.-based service provider of retirement and college savings plans.

Victory frees up

Victory Capital’s fungible $125 million add-on term loan due Oct. 31, 2021 began trading too, with levels quoted at par ½ bid, 101¼ offered, a trader remarked.

The add-on term loan is priced at Libor plus 750 bps with a 1% Libor floor and was issued at par. The debt has 101 soft call protection through July 29.

During syndication, the add-on term loan was upsized from $100 million, and the issue price was set at the tight end of the 99.75 to par talk.

RBC Capital Markets is leading the deal that will be used to fund a dividend.

Victory Capital is a Brooklyn, Ohio-based asset management firm.

Harland updates pricing

Moving to the primary market, Harland Clarke cut pricing on its $370 million five-year covenant-light first-lien term loan (B1/BB-) to Libor plus 550 bps from Libor plus 600 bps and revised the original issue discount to 99 from 98, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Recommitments are due at noon ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Wells Fargo Securities LLC, Macquarie Capital and Jefferies Finance LLC are leading the deal that will be used to refinance an existing term loan.

Harland Clarke is a San Antonio-based provider of media delivery, payment solutions and marketing services.

Infor reworked

Infor reduced its U.S. term loan due 2022 to $2,143,000,000 from $2.4 billion and upsized its euro term loan due 2022 to €1 billion from €750 million, according to a market source.

Pricing on the euro term loan was set at Euribor plus 275 bps, the low end of the Euribor plus 275 bps to 300 bps talk, pricing on the U.S. term loan remained at Libor plus 275 bps, and the original issue discount on the U.S. term loan and the euro term loan firmed at 99.75, the tight end of the 99.5 to 99.75 talk, the source said.

Both term loans still have a 1% floor and 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will be used to refinance existing term loans.

Infor is a New York-based enterprise software provider.

KinderCare tweaks OID

KinderCare Education tightened the original issue discount on its fungible $200 million tack-on first-lien term loan (B2/B) due Aug. 13, 2022 to 99.875 from 99.5, a source remarked.

Pricing on the tack-on term loan is Libor plus 425 bps with a 1% Libor floor, in line with existing term loan pricing, and the debt has 101 soft call protection through April 18, 2017.

Recommitments are due at noon ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay an existing second-lien term loan at 102.

Lenders are being offered a 5 bps amendment consent fee.

KinderCare, formerly known as Knowledge Universe, is a Portland, Ore.-based provider of early childhood care and education services.

Array cancels delayed-draw

Array Canada terminated plans for a $45 million delayed-draw six-year term loan as the acquisition that the loan would have funded is not happening, but is still in market with a $40 million five-year revolver and a $275 million six-year first-lien term loan to refinance debt and fund a dividend, according to a market source.

The term loan is talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

UBS Investment Bank, BMO Capital Markets Corp. and TD Securities (USA) LLC are leading the deal.

The Carlyle Group is the sponsor.

Array is a Toronto-based provider of retail merchandising displays and store fixtures to the cosmetics industry.

Printpack revised

Printpack cut pricing on its $274.3 million term loan B due 2023 to Libor plus 300 bps from talk of Libor plus 325 bps to 350 bps and pushed out the 101 soft call protection to one year from six months, a market source said.

The term loan still has a 1% Libor floor and a par issue price.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Printpack is an Atlanta-based manufacturer of flexible and specialty rigid packaging.

Mediware shutting early

Mediware Information Systems moved up the commitment deadline on its $320 million seven-year covenant-light first-lien term loan B (B2/B-) to noon ET on Friday from noon ET on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $495 million credit facility also includes a $60 million five-year revolver (B2/B-) and a $115 million second-lien term loan (CCC).

Bank of America Merrill Lynch, Jefferies Finance LLC, SunTrust Robinson Humphrey Inc., Nomura and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by TPG Capital from Thoma Bravo.

Closing is expected this quarter, subject to customary conditions.

Mediware is a Lenexa, Kan.-based provider of software for health care and human services providers.

Parkdean tweaks deadline

Parkdean accelerated the commitment deadline on its £575 million seven-year first-lien term loan to noon UK time on Monday from Feb. 8, a market source said.

The loan is talked at Libor plus 500 bps with no Libor floor and an original issue discount of 99 to 99.5.

Bank of America Merrill Lynch, Barclays and J.P. Morgan Securities LLC are the active bookrunners on the deal, with Barclays as the agent. Passive bookrunners are RBC Capital Markets and SMBC.

Proceeds will be used with a £150 million pre-placed second-lien term loan to finance the acquisition of the company by Onex, to refinance existing debt and to pay related fees and expenses.

Parkdean is a holiday park operator based in Newcastle upon Tyne, England.

Scientific Games details

Also in the primary market, Scientific Games held its lender call, launching a $3,441,000,000 covenant-light term loan B-3 (Ba3) due October 2021 at talk of Libor plus 375 bps to 400 bps with a 0.75% Libor floor and 101 soft call protection for six months, according to a market source.

Proceeds will be used with senior secured notes to refinance the company’s existing term loans B-1 and B-2 and 8 1/8% notes due 2018, to pay down revolver drawings and for general corporate purposes.

Rollover commitments from B-2 lenders are being offered the term loan B-3 at a par issue price, and commitments from B-1 lenders, who are extending their maturity by getting involved in the B-3 loan, are offered an original issue discount of 99.875, the source said.

Lead banks, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Fifth Third Bank, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and PNC, are asking for commitments by noon ET on Feb. 8, the source added.

Scientific Games is a New York-based developer of technology-based products and services and associated content for gaming and lottery markets.

WideOpenWest holds call

WideOpenWest surfaced in the morning with plans to hold a lender call at 3 p.m. ET on Wednesday to launch a repricing of its $2.06 billion first-lien term loan (B1) due August 2023 and a $90 million incremental first-lien term loan (B1) due August 2023, according to a market source.

The term loan debt is talked at Libor plus 300 bps with no Libor floor, a par issue price and 101 soft call protection for six months, the source said.

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

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the deal.

The repricing will take the existing term loan down from Libor plus 350 bps with a 1% Libor floor.

WideOpenWest is a Denver-based provider of data, video and telephone services.

Creative Artists launches

Creative Artists Agency launched with a lender call a $777.9 million seven-year covenant-light term loan B (B2) that is talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET Feb. 8, the source added.

Bank of America Merrill Lynch is the left lead bank on the deal that will be used to refinance an existing term loan B and fund a distribution to shareholders.

Creative Artists is a Los Angeles-based entertainment and sports firm.

NBTY comes to market

NBTY held a lender call, launching a repricing of its U.S. term loan B at talk of Libor plus 300 bps to 325 bps with a 1% Libor floor and a par issue price, and a repricing of its sterling term loan B at talk of Libor plus 425 bps to 450 bps with a 1% Libor floor and a par issue price, a source said.

Both repriced loans include 101 soft call protection for six months, the source added.

Bank of America Merrill Lynch is leading the deal that will reprice the U.S. term loan down from Libor plus 400 bps with a 1% Libor floor and the sterling term loan down from Libor plus 525 bps with a 1% Libor floor.

NBTY is a Ronkonkoma, N.Y.-based manufacturer, marketer, distributor and retailer of vitamins and nutritional supplements.

Linxens on deck

Linxens set a lender call for noon ET on Thursday to launch a $545 million first-lien term loan due October 2022 that is talked at Libor plus 325 bps to 350 bps with a step-down, a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Feb. 9, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing first-lien term loan from Libor plus 400 bps with a step-down and a 1% Libor floor.

Linxens is a France-based designer and manufacturer of flexible connectors for smart cards.

SRS readies loans

SRS Distribution scheduled a lender call for 2 p.m. ET on Thursday to launch a fungible $140 million incremental first-lien term loan and a fungible $40 million incremental second-lien term loan, a market source remarked.

Barclays and UBS Investment Bank are leading the $180 million in incremental term loans that will be used to fund a distribution to existing shareholders.

Berkshire Partners is the sponsor.

SRS Distribution is a McKinney, Texas-based roofing products distributor.

Brown Jordan closes

In other news, the buyout of Brown Jordan International Inc. by Littlejohn & Co. LLC has been completed, a news release said.

To help fund the transaction, Brown Jordan got a new $200 million credit facility that includes a $35 million ABL revolver and a $165 million six-year first-lien term loan B (B2/B).

Pricing on the term loan B is Libor plus 575 bps 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.

During syndication, the term loan B was upsized from $160 million, pricing was set at the low end of the Libor plus 575 bps to 600 bps talk, the incremental free and clear basket was reduced to $30 million from $40 million, the unlimited ratio investments basket was changed to up to 2.75 times from 3 times and the unlimited restricted payments ratio basket was revised to up to 2.50 times from 2.75 times.

Goldman Sachs and Societe Generale led the deal.

Brown Jordan is a St. Augustine, Fla.-based manufacturer of indoor and outdoor furniture.

Optiv buyout wraps

The purchase of Optiv Security Inc., a Denver-based provider of end-to-end cyber security solutions, by KKR from a group of private investors has closed, according to a news release.

To help fund the transaction, Optiv got a $1.13 billion credit facility that includes a $100 million five-year ABL revolver, an $800 million seven-year covenant-light first-lien term loan and a $230 million eight-year covenant-light second-lien term loan.

Pricing on the first-lien term loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor, and it was sold at a discount of 99.5. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $750 million, pricing was cut from talk of Libor plus 400 bps to 425 bps and the discount was changed from 99. Also, the second-lien term loan was downsized from $280 million, pricing firmed at the low end of revised talk of Libor plus 725 bps to 750 bps and was tightened from initial talk of Libor plus 850 bps and the discount was revised from 98.5.

Jefferies Finance LLC, Macquarie Capital (USA) Inc. and KKR Capital Markets led the credit facility.

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