DMT Solutions breaks; Dhanani Group, Invenergy Thermal, Focus Financial tweak deals

By Sara Rosenberg

New York, June 25 – DMT Solutions Global Corp.’s term loan made its way into the secondary market during Monday’s session, and the debt was seen quoted above its original issue discount.

Moving to the primary market, Dhanani Group Inc. raised pricing on its term loan B and widened the issue price, and Invenergy Thermal Operating I LLC lowered the spread on its term loan, added a step-down and revised the original issue discount.

Also, Focus Financial Partners LLC canceled plans for a delayed-draw term loan and opted for a larger revolver, and Mitel Networks Corp. and World Triathlon Corp. joined this week’s primary calendar.

DMT frees up

DMT Solutions’ $250 million six-year covenant-light term loan (B3/B-) began trading on Monday, with levels quoted at 97½ bid, 98½ offered, according to a trader.

Pricing on the term loan is Libor plus 700 basis points with a 0% Libor floor, and it was sold at an original issue discount of 97. The debt has hard call protection of 102 in year one and 101 in year two.

During syndication, the term loan was downsized from $260 million, pricing was increased from talk in the range of Libor plus 575 bps to 600 bps, the discount widened from 99, the call protection was changed from a 101 soft call for one year and the maturity was shortened from seven years. Also, amortization was revised to 5% per year from 1% per year, the MFN was changed to 50 bps for life on all pari debt with no carve-outs from 75 bps for six months, the excess cash flow sweep was increased, the asset sale step-downs were removed, the incremental was changed, the general restricted payment basket was reduced, the available amount basket was modified and the junior debt repayment basket was lowered.

DMT being acquired

Proceeds from DMT’s term loan will be used with $110 million in equity, increased from $104 million with the recent term loan downsizing, to fund the buyout of the company by Platinum Equity from Pitney Bowes Inc. for $361 million.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA and KeyBanc Capital Markets are leading the debt.

Total leverage is 4.2 times.

Closing is expected on July 2.

DMT is a provider of global enterprise solutions for mail inserting, parcel sorting and printing equipment and services.

Dhanani revises loan

Switching to the primary market, Dhanani Group lifted pricing on its $420 million seven-year covenant-light term loan B (B2/B) to Libor plus 375 bps from Libor plus 325 bps and moved the original issue discount to 99 from 99.5, a market source remarked.

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

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

Wells Fargo Securities LLC is the left lead on the deal that will be used to refinance existing debt, to partially fund the consideration related to proposed tuck-in acquisitions and for general corporate purposes.

Dhanani is a Burger King, Popeyes and La Madeleine franchisee.

Invenergy sets changes

Invenergy cut pricing on its $350 million seven-year first-lien term loan (Ba2/BB) to Libor plus 350 bps from Libor plus 375 bps, added a 25 bps pricing step-down at 4 times total net leverage and modified the original issue discount to 99.75 from 99.5, according to a market source.

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

Recommitments were due at 5 p.m. ET on Monday, the source said.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt.

Invenergy is a Chicago-based operator of power generation facilities.

Focus Financial reworked

Focus Financial eliminated the $150 million delayed-draw for six months covenant-light term loan B from its new deal and upsized its revolver to $650 million from $500 million, a market source said.

Talk on the delayed-draw term loan was Libor plus 225 bps with a 0% Libor floor, an original issue discount of 99.75 to par and an undrawn fee of half the margin from days 46 to 90 and the full margin thereafter.

The company is marketing an $803 million covenant-light term loan B due July 2024 talked at Libor plus 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Commitments continue to be due at 5 p.m. ET on Wednesday, the source added.

RBC Capital Markets is the left lead on the deal that will be used to refinance the company’s capital structure.

Stone Point Capital LLC and Kohlberg Kravis Roberts & Co. LP are the sponsors.

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

Mitel timing emerges

Mitel Networks surfaced with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch its previously announced $1.48 billion of senior secured credit facilities, a market source said.

The facilities consist of a $100 million revolver, a $1.02 billion seven-year first-lien term loan and a $360 million eight-year second-lien term loan.

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

Commitments are due at 5 p.m. ET on July 13, the source added.

Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and TD Securities (USA) LLC are leading the deal that will be used with up to $700 million of equity to fund the buyout of the company by Searchlight Capital Partners LP for $11.15 per common share in cash. The all-cash transaction is valued at about $2 billion, including net debt.

Closing is expected during the second half of this year, subject to customary conditions, including receipt of shareholder, regulatory and court approvals.

Mitel is an Ottawa-based provider of communications software solutions.

World Triathlon on deck

World Triathlon set a bank meeting for Tuesday morning to launch $271 million of credit facilities, according to a market source.

The facilities consist of a $21 million revolver and a $250 million term loan, the source said.

UBS Investment Bank is leading the deal that will be used to refinance existing debt.

World Triathlon is an owner and operator of Ironman triathlon events.

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