GTT, Alliant, Lumos, Orion Engineered, U.S. Silica, SunSource, Midcontinent, GEO break

By Sara Rosenberg

New York, April 27 – GTT Communications Inc. reworked its U.S. and euro term loan sizes for a second time, Alliant Holdings Intermediate LLC finalized the issue price on its term loans at the tight side of guidance, and Lumos Networks (MTN Infrastructure TopCo Inc.) set pricing on its term loan B at the wide end of talk, and then these deals freed up for trading on Friday.

Also, Orion Engineered Carbons firmed the issue price on its euro term loan at the tight end of talk, before hitting the secondary market, and deals from U.S. Silica Holdings Inc., SunSource (STS Operating Inc.), Midcontinent Communications and GEO Group Inc. broke too.

Furthermore, Ensono LP firmed spreads on its first-and second-lien term loans at the high end of guidance, widened original issue discounts and modified the second-lien call protection, and Berlin Packaging LLC tightened the spread and issue price on its term loan B.

In addition, Foundation Building Materials Holdings Co. LLC and WireCo released price talk with launch, and Paysafe, Omnia Partners Inc., MHS Holdings Inc. and Arterra Wines Canada Inc. joined the near-term primary calendar.

GTT retranches, trades

GTT Communications cut its U.S. seven-year covenant-light first-lien term loan to $1.77 billion from a revised amount of $1,862,000,000, but the loan is still larger than its original launch size of $1,331,000,000, and increased its euro seven-year covenant-light first-lien term loan to €750 million from a revised amount of €675 million and an initial size of €640 million, according to a market source.

The U.S. term loan is priced at Libor plus 275 basis points with a 0% Libor floor and an original issue discount of 99.5, and the euro term loan is priced at Euribor plus 325 bps with a 0% floor and a discount of 99.5. Both tranches have 101 soft call protection for six months.

On Thursday, pricing on the U.S. term loan was trimmed from talk in the range of Libor plus 325 bps to 350 bps and pricing on the euro term loan was set at the low end of the Euribor plus 325 bps to 350 bps talk.

With final terms in place, the U.S. term loan began trading on Friday and levels were quoted at par bid, par ½ offered, a trader added.

Credit Suisse, KeyBanc Capital Markets, SunTrust Robinson Humphrey Inc., Goldman Sachs, Morgan Stanley Senior Funding Inc., Citizens Bank and ING are leading the deal that will be used by the McLean, Va.-based cloud networking provider to refinance existing debt and fund the roughly €1.9 billion acquisition of Interoute, an operator of one of Europe’s largest independent fiber networks and cloud networking platforms.

Alliant updated, hits secondary

Alliant Holdings set the issue price on its $310 million seven-year covenant-light incremental term loan B and on its extended $1,776,217,951 seven-year covenant-light term loan B at par, according to a market source. The incremental loan was talked at 99.75 to par and the extended loan was talked at 99.875 to par.

The term loans are still priced at Libor plus 300 basis points with a 25 bps step-down at 4.25 times consolidated secured debt ratio and a 0% Libor floor, and still have 101 soft call protection for six months.

The company’s $2,286,217,951 senior secured deal also includes an extended $200 million revolver.

Commitments/consents were due at noon ET on Friday and then the term loan B debt broke for trading with levels seen at par 5/8 bid, par 7/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., Capital One, Fifth Third, Jefferies LLC, KKR Capital Markets, Macquarie Capital (USA) Inc., Bank of America Merrill Lynch, Nomura, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal.

Proceeds from the incremental loan will be used to fund pending acquisitions.

Closing is expected during the week of May 7.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Lumos sets spread, breaks

Lumos Networks finalized pricing on its $1,025,000,000 senior secured covenant-light term loan B (B2/B) due Nov. 17, 2024 at Libor plus 300 bps, the high end of the Libor plus 275 bps to 300 bps talk, a market source remarked.

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

Commitments/consents were due at noon ET on Friday and by late day the term loan freed to trade with levels quoted at par 3/8 bid, par 5/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 1% Libor floor.

Closing is expected on May 18.

Lumos is a Waynesboro, Va.-based fiber-based service provider in the Mid-Atlantic region.

Orion firms, frees up

Orion Engineered Carbons set the issue price on its €331 million senior secured first-lien term loan (Ba3/BB) due July 25, 2024 at par, the tight end of the 99.75 to par talk, according to a market source.

The euro term loan is still priced at Euribor plus 225 bps with a 0% floor, and pricing on the company’s $288 million senior secured first-lien term loan (Ba3/BB) due July 25, 2024 remained at Libor plus 200 bps with a 0% Libor floor and a par issue price. Both term loans have 101 soft call protection for six months.

After terms finalized, the U.S. loan broke for trading and levels were seen at par 1/8 bid, par 3/8 offered, a trader added.

Goldman Sachs is the bookrunner, global coordinator and mandated lead arranger on the deal. Additional mandated lead arrangers and coordinators are Mediobanca International (Luxembourg) SA and ING Bank.

The loans will be used to reprice an existing U.S. term loan down from Libor plus 250 bps with a 0% Libor floor and an existing euro term loan down from Euribor plus 250 bps with a 0% floor.

Closing is expected on May 8.

Orion Engineered Carbons is a Frankfurt-based producer of carbon black.

U.S. Silica tops OID

U.S. Silica’s credit facilities surfaced in the secondary market, with the $1.28 billion seven-year covenant-light term loan B seen at par ¾ bid, 101¼ offered before widening to par ½ bid, 101½ offered, a trader said.

Pricing on the term loan is Libor plus 400 bps with a step-down after six months to Libor plus 350 bps when incurrence ratio is 1.75 times and a 1% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

The company’s $1.38 billion of credit facilities (B1/B+) also include a $100 million revolver.

During syndication, pricing on the term loan flexed from talk in the range of Libor plus 350 bps to 375 bps.

BNP Paribas Securities Corp. and Barclays are leading the deal that will be used to fund the acquisition of EP Minerals LLC from Golden Gate Capital for $750 million in cash and to refinance existing debt.

Pro forma net leverage is 2.4 times.

Closing is expected in the second quarter.

U.S. Silica is a Frederick, Md.-based producer of commercial silica. EP Minerals is a Reno, Nev.-based producer of engineered materials derived from industrial minerals.

SunSource starts trading

SunSource’s bank debt broke as well, with the $170 million incremental first-lien term loan due Dec. 11, 2024 quoted at par ¼ bid, 101 offered and the $115 million eight-year covenant-light second-lien term loan quoted at 99 bid, par offered, according to traders.

Pricing on the first-lien term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99.75. This tranche has 101 soft call protection through June 11, 2018.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was issued at a discount of 98.5. The debt has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $160 million, and the second-lien term loan was downsized from $125 million and flexed up from Libor plus 775 bps.

SunSource lead banks

Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., ING, Natixis and UBS Investment Bank are leading SunSource’s $285 million in term loans, with Barclays the left lead on the first-lien loan and Credit Suisse the left lead on the second-lien loan. Barclays is the administrative agent.

Proceeds will be used to fund the acquisition of Ryan Herco, a distributor of fluid control systems, fluid filtration systems and fluid handling products, repay ABL borrowings and pay related fees and expenses.

SunSource, a Clayton, Dubilier & Rice portfolio company, is an Addison, Ill.-based distributor of fluid power and motion control technologies.

Midcontinent hits secondary

Midcontinent Communications’ roughly $381 million term loan B due December 2023 freed to trade too, with levels quoted at 101 bid, 101½ offered, a trader remarked.

Pricing on the term loan is Libor plus 200 bps with no Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 225 bps with no Libor floor.

Midcontinent Communications is a Sioux Falls, S.D.-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

GEO Group breaks

GEO Group’s $792 million term loan B due March 2024 began trading during the session, with levels quoted at par ¼ bid, par ½ offered, a trader said.

Pricing on the term loan is Libor plus 200 bps with a 0.75% floor and it was issued at par. The loan has 101 soft call protection for six months.

BNP Paribas Securities Corp. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 225 bps with a 0.75% Libor floor.

GEO is a Boca Raton, Fla.-based real estate investment trust specializing in the design, financing, development and operation of correctional, detention and community reentry facilities.

Ensono reworked

Ensono firmed pricing on its $460 million seven-year covenant-light first-lien term loan (B2/B) at Libor plus 525 bps, the high end of the Libor plus 500 bps to 525 bps talk, and moved the original issue discount to 99 from 99.5, while leaving the 0% Libor floor and 101 soft call protection for six months unchanged, a market source said.

Additionally, the company set pricing on its $123 million eight-year covenant-light second-lien term loan (Caa2/CCC) at Libor plus 925 bps, the wide end of the Libor plus 900 bps to 925 bps talk, adjusted the discount to 96 from 99, and changed the hard call protection to 103 in year one, 102 in year two and 101 in year three, from 102 in year one and 101 in year two, the source continued. This tranche still has a 0% Libor floor.

The company’s $643 million senior secured deal also includes a $60 million five-year revolver (B2/B).

Commitments were due at 3 p.m. ET on Friday, the source added.

Morgan Stanley Senior Funding Inc., Barclays, RBC Capital Markets and TD Securities (USA) LLC are leading the deal that will fund the acquisition of Wipro Ltd.’s hosted data center services business for $405 million.

Closing is expected in the quarter ending June, subject to customary conditions and regulatory approvals.

Ensono is a Chicago-based hybrid IT services provider.

Berlin trims pricing

Berlin Packaging reduced pricing on its $815 million 7.5-year covenant-light term loan B (B3/B) to Libor plus 300 bps from talk in the range of Libor plus 325 bps to 350 bps and changed the original issue discount to 99.75 from 99.5, a market source remarked.

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

Commitments are due at noon ET on Tuesday, moved up from Thursday, the source added.

The company’s $1,245,000,000 of senior secured credit facilities also include a $75 million six-year revolver (B3/B) and a $355 million privately placed second-lien term loan.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to refinance existing debt and distribute a shareholder dividend.

Berlin Packaging is a Chicago-based hybrid packaging supplier.

Foundation Building guidance

Foundation Building Materials held its bank meeting on Friday, launching its $450 million seven-year covenant-light term loan B at talk of Libor plus 325 bps to 350 bps with no Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 10, the source said.

RBC Capital Markets, Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc. and Stifel are leading the deal that will be used with an ABL revolver draw to redeem the company’s existing 8.25% senior secured notes due 2021 and pay related expenses.

Foundation Building is a Tustin, Calif.-based building material company.

WireCo reveals talk

WireCo came out with talk of Libor plus 475 bps to 500 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $453 million senior secured first-lien term loan due September 2023 that launched with a morning call, a market source said.

Commitments are due on Thursday, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan down from Libor plus 550 bps with a 1% Libor floor.

WireCo is a Prairie Village, Kan.-based manufacturer and distributor of wires and synthetic ropes.

Paysafe on deck

Paysafe scheduled a lender call for 11 a.m. ET on Monday to launch $800 million equivalent in incremental term loans, according to a market source.

The debt consists of a $600 million incremental term loan due January 2025 priced at Libor plus 350 bps with a 1% Libor floor and a $200 million euro equivalent incremental term loan due January 2025 priced at Euribor plus 325 bps with a 0% floor, the source said. Original issue discount talk on the loans is not yet available.

Like the company’s existing term loan, the incremental loans include 101 soft call protection through July 3, 2018.

Commitments are due at 5 p.m. ET/5 p.m. GMT on May 8, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the acquisition of iPayment Holdings Inc.

Closing is expected in the second quarter, subject to final regulatory approvals.

Paysafe is an Isle of Man-based provider of end-to-end payment solutions. iPayment is a Westlake Village, Calif.-based provider of payment processing solutions.

Omnia timing emerges

Omnia Partners will hold a bank meeting on Tuesday to launch its previously announced $565 million of credit facilities, a market source remarked.

The facilities consist of a $30 million five-year revolver, a $390 million seven-year first-lien term loan and a $145 million eight-year second-lien term loan.

Barclays, Ares, Jefferies LLC and Fifth Third are leading the deal that will be used to help fund the acquisition of Communities Program Management LLC and to refinance existing debt.

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

TA Associates is the sponsor.

Omnia is a Franklin, Tenn.-based group purchasing organization. Communities Program Management is the organization that staffs and manages the operations of the U.S. Communities Government Purchasing Alliance, which provides procurement resources and solutions to local and state government agencies, school districts, higher education and nonprofits.

MHS readies deal

MHS Holdings set a lender call for 3 p.m. ET on Monday to launch a fungible $200 million incremental term loan B and a repricing of its existing $263 million term loan B, a market source said.

RBC Capital Markets is the left lead arranger and bookrunner on the deal.

The incremental term loan will be used to fund a dividend, another source added.

MHS, a Thomas H. Lee Partners LP portfolio company, is a Louisville, Ky.-based provider of e-commerce infrastructure.

Arterra joins calendar

Arterra Wines Canada will hold a lender call at 1 p.m. ET on Monday to launch a $130 million incremental senior secured term loan B (B1/B), according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing second-lien debt.

Arterra, formerly known as Constellation Brands Canada, is a Mississauga, Ont.-based producer and distributor of wine brands.

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