CSC ServiceWorks, Applied Systems, TierPoint break; Tronox, CCRR Parent tweak deals

By Sara Rosenberg

New York, March 1 – CSC ServiceWorks Holdings LLC firmed the spread on its first-lien term loan B at the narrow side of talk and set the original issue discount at the midpoint of guidance before freeing up for trading on Monday.

Also, Applied Systems Inc. finalized pricing on its second-lien term loan at the low end of talk and then its first-and second-lien term loan surfaced in the secondary market, and TierPoint LLC’s term loan broke for trading as well.

In other news, Tronox Finance LLC lowered the spread on its term loan B, added a pricing step-down and set the original issue discount at the tight side of guidance, and CCRR Parent increased the size of its term loan B, trimmed pricing and revised the issue price.

Furthermore, Playtika Holding Corp., Atotech Ltd., Constant Contact Inc., Ankura Consulting Group LLC, Berlin Packaging LLC, Consolidated Communications Inc., Shearer’s Foods LLC, Warner Music Group (WMG Acquisition Corp.) and U.S. Farathane LLC released price talk with launch.

Additionally, Denali Water Solutions LLC, Alkermes Inc. and Watlow joined this week’s primary calendar.

CSC finalized

CSC ServiceWorks firmed pricing on its $2 billion seven-year first-lien term loan B (B3/B-) at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and set the original issue discount at 99.25, the midpoint of the 99 to 99.5 talk, a market source remarked.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

On Monday, the term loan B made its way into the secondary market, with levels quoted at 99½ bid, par offered, another source added.

Barclays, J.P. Morgan Securities LLC, BMO Capital Markets, Deutsche Bank Securities Inc. and Ares are leading the deal that will be used to refinance all of the company’s existing debt.

Closing is expected this week.

CSC ServiceWorks is a Plainview, N.Y.-based provider of technology-enabled laundry and air services.

Applied Systems updated

Applied Systems set pricing on its repriced $615 million covenant-lite second-lien term loan due September 2025 at Libor plus 550 bps, the low end of the Libor plus 550 bps to 575 bps talk, according to a market source.

The second-lien term loan still has a 0.75% Libor floor, a par issue price and 101 hard call protection for one year.

As before, the company is also getting a fungible $470 million incremental covenant-lite first-lien term loan due September 2024 and repriced $1.35 billion covenant-lite first-lien term loan due September 2024 at Libor plus 300 bps with a step-up to Libor plus 325 bps at more than 4.75x first-lien net leverage, a 0.5% Libor floor, a par issue price and 101 soft call protection for six months. Upon delivering Dec. 31, 2020 financials, the spread will be subject to the grid.

Earlier in syndication, the incremental first-lien term loan was upsized from $420 million and the Libor floor was lowered from 1%, and the first-and second-lien term loan repricings were added.

Applied Systems frees up

Late in the day, Applied Systems’ bank debt broke for trading, with the first-lien term loan debt quoted at par ¼ bid, par 5/8 offered and the second-lien term loan quoted at par ½ bid, 101½ offered, a trader added.

Nomura Securities, Jefferies LLC and Macquarie Capital (USA) Inc. are leading the deal.

The incremental term loan will be used to fund the acquisition of EZLynx, raise cash for general corporate purposes and pay fees and expenses. The repricing of the first-lien term loan will leave the spread unchanged but reduce the Libor floor from 1% and the second-lien term loan repricing will take pricing down from Libor plus 700 bps with a 1% Libor floor.

Closing is expected during the week of March 8.

Applied Systems is a University Park, Ill.-based cloud software provider to the property & casualty and benefits insurance industry. EZLynx is a Lewisville, Tex.-based provider of insurance software.

TierPoint hits secondary

TierPoint’s $676 million term loan due May 2026 also began trading, with levels quoted at 99½ bid, 99 7/8 offered, a trader said.

Pricing on the term loan is Libor plus 375 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the Libor floor was increased from 0.5%.

RBC Capital Markets is leading the deal that will be used to amend, extend and reprice an existing term loan due May 2024 that is priced at Libor plus 375 bps with a 1% Libor floor.

TierPoint is a St. Louis-based provider of hybrid IT solutions.

Tronox flexes

Returning to primary happenings, Tronox trimmed pricing on its $1.3 billion seven-year term loan B to Libor plus 250 bps from Libor plus 275 bps, added a 25 bps step-down at 1.75x net first-lien leverage and firmed the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

The company’s $1.65 billion of credit facilities (Ba3/BB-) also include a $350 million five-year revolver.

Commitments continued to be due at 5 p.m. ET on Monday, the source added.

HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., BofA Securities Inc., Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used with cash on hand and other unsecured debt, to refinance existing ABL facility and term loan B borrowings, to refinance senior notes due 2026 and to pay fees and expenses.

Tronox is a Stamford, Conn.-based producer of titanium dioxide and inorganic chemicals.

CCRR reworked

CCRR Parent lifted its term loan B to $525 million from $500 million, cut pricing to Libor plus 425 bps from talk in the range of Libor plus 450 bps to 475 bps, and moved the original issue discount to 99.5 from 99, a market source remarked.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

The company’s now $575 million of credit facilities also include a $50 million revolver.

Commitments are due at 5 p.m. ET on Tuesday, accelerated from Wednesday, the source added.

Citizens Bank and UBS Investment Bank are leading the deal that will be used to help fund the acquisitions by Cornell Capital LLC and Trilantic North America of trustaff Management Inc., CardioSolution and Stella.ai Inc. and merger of the three companies to create a healthcare staffing platform with a technology-driven approach.

The funds raised from the term loan upsizing will be used for working capital.

Playtika sets talk

Playtika held its call on Monday and announced price talk on its $1.8 billion seven-year first-lien term loan at Libor plus 300 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, a market source said.

The term loan has 101 soft call protection for six months.

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

BofA Securities Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used to refinance existing term loan borrowings.

Playtika is a mobile gaming company.

Atotech proposed terms

Atotech launched on its morning call its $1.35 billion seven-year first-lien term loan B (B1/B+) at talk of Libor plus 275 bps with a 0.5% Libor floor and an original issue discount of 99.5, and its €200 million seven-year first-lien term loan B (B1/B+) at talk of Euribor plus 275 bps to 300 bps with a 0% floor and a discount of 99 to 99.5, according to a market source.

Both term loans have 101 soft call protection for six months.

Commitments are due at noon ET on March 9, the source added.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Unicredit, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Standard Chartered and TCG are leading the deal that will be used to refinance an existing revolver and term loan B, add cash to balance sheet and pay related fees and expenses.

Atotech is a Berlin-based specialty chemicals technology company.

Constant Contact guidance

Constant Contact came out with talk of Libor plus 375 bps to 400 bps with a 0.75% Libor floor and an original issue discount of 99.5 on its $850 million seven-year covenant-lite first-lien term loan that launched with a call in the morning, a market source said.

The term loan has 101 soft call protection for six months.

Of the total term loan amount, $180 million is delayed-draw and has a ticking fee of half the spread from days 46 to 75 and the full spread thereafter, the source added.

Commitments are due at noon ET on March 11.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BofA Securities Inc., Barclays, Jefferies LLC, UBS Investment Bank, BNP Paribas Securities Corp., CPPIB, KKR Capital Markets, Antares Capital and CBAM are leading the deal, which will be used to fund Clearlake Capital Group LP’s and Siris Capital Group LLC’s spin out of the company from Endurance International Group Holdings Inc. into a stand-alone enterprise.

Constant Contact is a Waltham, Mass.-based digital marketing company.

Ankura details emerge

Ankura Consulting Group held its call in the afternoon and released price talk on its $465 million seven-year covenant-lite first-lien term loan (B-) and $150 million eight-year covenant-lite second-lien term loan (CCC), according to a market source.

Talk on the first-lien term loan is Libor plus 425 bps to 450 bps with a 0.75% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with a 0.75% Libor floor and a discount of 98.5, the source said.

The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at noon ET on March 12, the source added.

Deutsche Bank Securities Inc., Jefferies LLC, MUFG and Truist are leading the deal, with Deutsche Bank the left lead on the first-lien term loan and Jefferies the left lead on the second-lien term loan.

Proceeds will be used to refinance existing debt.

Ankura is a specialty consulting platform.

Berlin price talk

Berlin Packaging released talk of Libor plus 325 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months for its $500 million seven-year covenant-lite first-lien term loan B (B-) that launched with an afternoon call, a market source remarked.

Of the total term loan amount, $100 million is delayed-draw.

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

Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs Bank USA, Jefferies LLC and MUFG are leading the deal, which will be used to refinance an existing first-lien euro term loan, refinance a portion of an existing second-lien term loan and fund cash to the balance sheet.

Berlin Packaging is a Chicago-based hybrid packaging supplier.

Consolidated launches

Consolidated Communications revealed in the morning that it would hold a call at 2 p.m. ET on Monday to launch a $1 billion covenant-lite term loan B due Oct. 2, 2027 talked at Libor plus 350 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Thursday, the source said.

Wells Fargo Securities LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 1% Libor floor.

The existing term loan is being reduced from $1.397 billion in connection with this transaction.

Consolidated Communications is a Mattoon, Ill.-based broadband and business communications provider.

Shearer’s repricing

Shearer’s Foods surfaced early in the day with plans to hold a lender call at 1:30 p.m. ET to launch a $1.075 billion covenant-lite first-lien term loan (B1/B-) due September 2027 talked at Libor plus 325 bps to 350 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Credit Suisse Securities (USA) LLC is leading the deal, which will be used to reprice an existing term loan down from Libor plus 400 bps with a ratings-based step-down and a 0.75% Libor floor.

Shearer’s Foods is a Massillon, Ohio-based contract manufacturer of snack foods.

Warner holds call

Warner Music emerged in the morning with plans to hold a lender call at 11 a.m. ET to launch a fungible $325 million incremental covenant-lite first-lien term loan due January 2028 talked with an original issue discount of 99.875 to par, according to a market source.

Like the existing term loan, the incremental term loan is priced at Libor plus 212.5 bps with a 0% Libor floor and has 101 soft call protection through July.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing senior notes.

Warner Music is a New York-based music entertainment company.

U.S. Farathane refinancing

U.S. Farathane launched with an afternoon call a $308 million term loan B (B2/B) due December 2024 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 one year, a market source said.

BofA Securities Inc. is leading the deal that will be used to help refinance/extend an existing term loan due December 2021.

Other funds for the refinancing will come from a $175 million privately placed second-lien term loan.

U.S. Farathane is an Auburn Hills, Mich.-based designer and manufacturer of highly-engineered plastic fabricated products.

Denali on deck

Denali Water Solutions set a bank meeting for Wednesday to launch $455 million of credit facilities (B-), according to a market source.

The facilities consist of a $60 million revolver and a $395 million first-lien term loan, the source said.

UBS Investment Bank, BMO Capital Markets and KeyBanc Capital Markets are leading the deal that will be used to fund the acquisition of Organix Recycling LLC, a food waste collector and recycler, and to refinance Denali’s existing credit facility.

Denali Water Solutions, a TPG portfolio company, is a Russellville, Ark.-based specialty waste and environmental services company.

Alkermes joins calendar

Alkermes will hold a lender call at 2 p.m. ET on Tuesday to launch a $300 million term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance an existing term loan B due March 2023.

Alkermes is a Dublin-based biopharmaceutical company.

Watlow readies deal

Watlow will hold a lender call at 9 a.m. ET on Wednesday to launch a $515 million seven-year term loan B, according to a market source.

BMO Capital Markets, BofA Securities Inc., Barclays and Citizens Bank are leading the deal that will be used to help fund the buyout of the company by Tinicum LP.

Watlow is a St. Louis-based designer and manufacturer of complete thermal systems.

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