Avaya, McGraw break; Prestige, Zayo, WASH, Royalty, PrimeSource, Victory, Flying updated

By Sara Rosenberg

New York, April 30 – Avaya Inc.’s term loan B-7 began trading during Thursday’s market hours, with the debt quoted above its original issue discount, and McGraw-Hill Global Education Holdings LLC’s term loan freed up as well.

Moving to the primary market, Prestige Brands Inc. firmed pricing on its term loan B-3 within talk, Zayo Group LLC widened the issue price on its term loan, set the Libor floor at the high end of talk and shortened the maturity, and WASH Multifamily Laundry Systems LLC moved some funds between its first-and second-lien term loans and modified spreads and original issue discounts on both tranches.

Also, Royalty Pharma Investments Finance Trust upsized its add-on term loan B-4 while firming the issue price at the tight end of guidance, PrimeSource Building Products (PriSo Acquisition Corp.) trimmed the spread on its term loan B and tightened the original issue discount, and Victory Capital Operating LLC and Flying Fortress Inc. revised issue prices on their loans.

Additionally, Grocery Outlet Inc. (GOBP Holdings Inc.), Smart & Final Stores Inc. and Pro Mach Inc. released talk with launch, Level 3 Financing Inc. surfaced with a repricing/refinancing transaction, and Integra Telecom Holdings Inc. and TouchTunes Interactive Networks Inc. joined the near-term calendar.

Avaya tops OID

Avaya’s $2,125,000,000 five-year senior secured term loan B-7 freed up for trading on Thursday, with levels quoted at 99 1/8 bid, 99 5/8 offered, according to a trader.

Pricing on the B-7 loan is Libor plus 525 basis points 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.

Recently, the term loan was upsized from $1.5 billion and pricing firmed at the wide end of the Libor plus 500 bps to 525 bps talk.

Citigroup Global Markets is leading the deal that will be used to repay existing senior secured term loans. As a result of the B-7 upsizing more of the existing term debt is being paid down.

Avaya is a Santa Clara, Calif.-based provider of business collaboration and communications services.

McGraw-Hill hits secondary

McGraw-Hill Global Education’s $679 million first-lien covenant-light term loan due March 22, 2019 broke too, with levels seen at 100½ bid, 101 offered, a trader said.

Pricing on the loan is Libor plus 375 bps, after firming at the tight end of the Libor plus 375 bps to 400 bps talk. The debt has a 1% Libor floor and 101 soft call protection for six months and was issued at par.

Credit Suisse Securities (USA) LLC, BMO Capital Markets, Morgan Stanley Senior Funding Inc., UBS AG, Nomura and Jefferies Finance LLC are leading the deal that will be used to reprice an existing term loan from Libor plus 475 bps with a 1% Libor floor.

McGraw-Hill Education is a New York-based provider of education materials.

Prestige finalizes terms

Switching to the primary, Prestige Brands set the spread on its $852.5 million term loan B-3 (B1/BB) due Sept. 3, 2021 at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, and the original issue discount at 99¾, the wide end of the 99¾ to par talk, according to a market source.

The 0.75% Libor floor and 101 soft call protection for six months on the term loan B-3 were unchanged.

Commitments are due by 1 p.m. ET on Friday and closing is targeted for May 8, the source added.

Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to amend and reprice the company’s existing $217.5 million term loan B-1 due Jan. 31, 2019 and $660 million term loan B-2 due Sept. 3, 2021.

Prestige Brands is a Tarrytown, N.Y.-based provider of over-the-counter health care and household consumer products.

Zayo updates surface

Zayo Group changed the issue price on its $1,995,404,032 senior secured covenant-light term loan B (B+) to 99¾ from par, set the Libor floor at 1%, the wide end of the 0.75% to 1% talk and shortened the maturity to six years from seven years, according to a market source.

As before, the term loan is priced at Libor plus 275 bps and has 101 soft call protection for six months.

Commitments and consents were due at 5 p.m. ET on Thursday, the source said.

Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs Bank USA, Citigroup Global Markets Inc., RBC Capital Markets and SunTrust Robinson Humphrey Inc. are the joint bookrunners on the deal and joint lead arrangers with J.P. Morgan Securities LLC.

Proceeds will be used to reprice the company’s existing $1,995,404,032 term loan and amend the maturity, and other covenants and provisions.

Zayo is a Boulder, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

WASH reworks deal

WASH Multifamily Laundry Systems lifted its seven-year first-lien covenant-light term loan B to $505 million from $475 million, lowered pricing to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps, and changed the original issue discount to 99¾ from 99½, while keeping the 1% Libor floor and 101 soft call protection for six months intact, a market source said.

Meanwhile, the eight-year second-lien covenant-light term loan was reduced to $120 million from $150 million, the spread was flexed to Libor plus 700 bps from Libor plus 750 bps and the discount was tightened to 99¼ from 99, the source continued. This tranche still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $685 million senior secured credit facility also includes a $60 million five-year revolver.

WASH lead banks

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Natixis Securities North America Inc. are leading WASH’s credit facility.

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

Proceeds will be used to help fund the buyout of the company by EQT Infrastructure II Fund from CHS Capital LLC, which is expected to close in mid-May.

WASH is an El Segundo, Calif.-based provider of common room laundry services to multifamily apartments and universities.

Royalty Pharma revised

Royalty Pharma increased its add-on term loan B-4 due Nov. 9, 2020 to $2 billion from $1 billion and set the issue price at par, the tight end of the 99¾ to par talk, a market source remarked.

The add-on loan is priced in line with the existing B-4 loan at Libor plus 275 bps with a 0.75% Libor floor.

Bank of America Merrill Lynch, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to refinance the company’s existing term loan B-1, and due to the upsizing, some term loan B-2 debt.

Royalty Pharma is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

PrimeSource flexes lower

PrimeSource Building Products cut pricing on its $325 million seven-year covenant-light term loan B (B2/B+) to Libor plus 350 bps from Libor plus 425 bps and moved the original issue discount to 99½ from 99, according to a market source.

As before, the term loan B has a 1% Libor floor and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Thursday, accelerated from noon ET on Friday, the source said.

The company’s $625 million credit facility also includes a $300 million ABL revolver.

Deutsche Bank Securities Inc., BMO Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Nomura are leading the deal that will be used with $230 million of senior notes to help fund the buyout of the company by Platinum Equity LLC from Itochu.

PrimeSource is a Dallas-based two-step building products distributor.

Victory tweaks discount

Victory Capital modified the original issue discount on its fungible $50 million add-on term loan B due Oct. 31, 2021 to 99¼ from the 99 area and moved up the commitment deadline to at 3 p.m. ET on Thursday from 5 p.m., a market source said.

Pricing on the add-on term loan is still Libor plus 600 bps with a 1% Libor floor, and there is still 101 hard call protection through October 2015.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund a distribution to shareholders.

In connection with the transaction, existing lenders are being offered a 25 bps amendment fee.

Victory Capital is a Brooklyn, Ohio-based asset manager.

Flying Fortress changes OID

Flying Fortress tightened the original issue discount on its extended $750 million term loan due 2020 to 99 7/8 from 99¾, a source remarked.

As before, the extension will push the maturity on the loan out from 2017 without revising the current pricing of Libor plus 275 bps with a 0.75% Libor floor.

The extended loan will have 101 soft call protection for six months.

Bank of America Merrill Lynch and RBC Capital Markets are leading the deal.

Flying Fortress is a subsidiary of AerCap, an Amsterdam-based aircraft leasing company.

Grocery Outlet launches

Also in the primary, Grocery Outlet held its lender call on Thursday, launching its roughly $449 million senior secured first-lien term loan with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor and 101 soft call protection for six months, according to a market source.

The loan is repricing the existing term loan from Libor plus 475 bps with a 1% Libor floor.

Commitments are due on May 7, the source said.

Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the deal.

Grocery Outlet is an Emeryville, Calif.-based grocery store operator.

Smart & Final guidance

Smart & Final Stores came out with talk of Libor plus 300 bps to 325 bps with a 1% Libor floor and 101 soft call protection for six months on its roughly $595 million first-lien senior secured term loan B that launched with an afternoon call, a source said.

The term loan is being repriced from Libor plus 375 bps with a 1% Libor floor.

Commitments are due on May 7, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal for the Commerce, Calif.-based warehouse-style, no membership fee, multi-format retailer.

Pro Mach sets talk

Pro Mach held its call, launching the repricing of its $377.1 million term loan due October 2021 with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, according to a market source.

The repricing will take the term loan down from Libor plus 450 bps with a 1% Libor floor.

Commitments are due on May 7, the source remarked.

Goldman Sachs Bank USA is leading the deal.

Pro Mach is a Loveland, Ohio-based provider of integrated packaging and processing products and solutions for food, beverage, consumer goods, pharmaceutical and other diverse companies.

Level 3 comes to market

Level 3 Financing launched a $2 billion senior secured term loan B (NA/NA/BB+) due in 2022 with talk of Libor plus 275 bps with a 0.75% Libor floor and an issue price of 99¾ to par, which will be used to reprice/refinance an existing $2 billion term loan B due in 2022 that is priced at Libor plus 350 bps with a 1% Libor floor, according to a market source.

Commitments are due at 3 p.m. ET on Tuesday, the source said.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the deal.

Level 3 is a Broomfield, Colo.-based provider of communications services.

Integra coming soon

Integra Telecom scheduled a lender call for 1 p.m. ET on Friday to launch $793,299,000 in term loans, according to a market source.

The debt consists of a $673,299,000 senior secured first-lien term loan B and a $120 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal.

Integra is a provider of telecommunications services.

TouchTunes readies deal

TouchTunes Interactive Networks set a bank meeting for Tuesday to launch a $257.5 million credit facility that consists of a $25 million revolver, a $170 million first-lien term loan and a $62.5 million second-lien term loan, a market source remarked.

Citizens Bank and Societe Generale are leading the financing.

Proceeds will be used to help fund the buyout of the company by Searchlight Capital Partners LP.

TouchTunes is a New York-based in-venue interactive music and entertainment platform.

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