Ceridian rises with capital infusion; Zayo better on paydown; Blount revises tranching

By Sara Rosenberg

New York, March 31 – Ceridian’s term loan strengthened in trading on Thursday in reaction to news of an additional capital investment, and Zayo Group LLC saw its term loan B inch higher following word of a loan repayment with proceeds from an upsized bond offering.

Moving to the primary market, Blount International Inc. increased the size of its U.S. term loan and removed the euro term loan from its proposed capital structure.

Also, Premiere Global Services Inc., ERT (eResearchTechnology Inc.), NAPA Management Services Corp. (NMSC Holdings Inc.) and Evoqua Water Technologies (EWT Holdings III Corp.) came out with price talk on their new deals.

In addition, MKS Instruments Inc. disclosed timing on the launch of its proposed credit facility, and American Renal Holdings Inc. and MGM Growth Properties Operating Partnership LP joined this week’s new issue calendar.

Ceridian trades up

Ceridian’s term loan B-2 was better in the secondary market on Thursday on the back of the company’s announcement that it is getting a $150 million investment from shareholders including Thomas H. Lee Partners L.P., Fidelity National Financial Ventures Group and management, according to a trader.

The term loan B-2 was quoted at 96¾ bid, 97¾ offered, up from 93 bid, 95 offered, the trader continued.

The additional investment is to fund the continued rapid growth of Dayforce. The company said in the release that its Dayforce revenue grew 59% in 2015 as compared to 2014 on a constant currency basis.

Ceridian is a Minneapolis-based human capital management technology company.

Zayo gains ground

Zayo Group’s term loan B was stronger in trading after it was revealed that proceeds raised through a $200 million upsizing of its senior unsecured notes offering would be used to repay about $197 million of term loan borrowings, a trader said.

The term loan B was quoted at 99 5/8 bid, 100 1/8 offered, up an eighth of a point on the day, the trader continued. The company’s B-2 term loan was unchanged at 100¼ bid, 100¾ offered.

Remaining proceeds from the $550 million of notes, upsized from $350 million, will be used to redeem the company’s 10 1/8% senior notes due 2020, pay redemption costs, and fund transaction-related fees and expenses.

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

BWICs and OWIC surface

Also in trading, two Bid Wanted In Competitions were announced during the session, one for $179 million and one for $185 million, and a $173 million Offers Wanted In Competition emerged as well, a trader remarked.

The $179 million BWIC is due at 10 a.m. ET on Friday and includes about 29 issuers. Some of the names in the portfolio are Chrysler, Cengage Learnings, Calpine Corp., Dynegy Inc., Acosta, The Active Network Inc., PrimeSource and Gates Global.

As for the $185 million BWIC, bids are due at noon ET on Monday. There are around 45 issuers in the portfolio, including Jo-Ann Stores, Sincalir Broadcast Group, Wesco Aircraft, Lifepoint, Cablevision, Valeant Pharmaceuticals, PQ Corp., Nielsen Finance LLC, Celanese and Huntsman ICI.

Meanwhile, the OWIC, for which offers are due at 10 a.m. ET on Friday, includes debt from 27 issuers. Some of the names in the portfolio are Neiman Marcus, Healogics, Ascensus Inc., Western Refining Inc., Overseas Shipholding Group Inc. and Coinmach Corp., the trader added.

Blount restructures

Switching to the primary market, Blount International raised its U.S. seven-year first-lien term loan to $475 million from $300 million and cancelled plans for a $175 million equivalent euro-denominated seven-year first-lien term loan, according to a market source.

Pricing on the term loan is Libor plus 625 basis points with a 1% Libor floor and an original issue discount of 97, and the debt has 101 soft call protection for one year.

Recently, pricing on the term loan was increased from Libor plus 600 bps, the discount widened from 98, the incremental allowance was revised, the maximum total net leverage ratio was modified, the excess cash flow sweep was changed and the definition of consolidated EBITDA was reworked.

The company’s $550 million senior secured credit facility (B1/B+) also includes a $75 million five-year revolver.

Final commitments were due by 5 p.m. ET on Thursday.

Blount lead banks

Barclays, KeyBanc Capital Markets Inc. and ING Capital are leading Blount’s credit facility that will be used with $475 million in equity to fund its buyout by American Securities LLC and P2 Capital Partners LLC for $10.00 in cash per share. The transaction is valued at about $855 million, including the assumption of debt.

Total leverage is 4.4 times, and net total leverage is 4 times.

Closing is expected in the first half of this year, subject to approvals by Blount’s shareholders and regulatory authorities, and the satisfaction or waiver of customary conditions. The buyout is not conditioned on financing.

Blount is a Portland, Ore.-based manufacturer and marketer of replacement parts, equipment and accessories for consumers and professionals operating in three market segments: forestry, lawn and garden; farm, ranch and agriculture; and concrete cutting and finishing.

Premiere floats terms

Premiere Global Services hosted its lender call on Thursday morning, launching its $550 million six-year first-lien term loan with talk of Libor plus 650 bps with a 1% Libor floor, an original issue discount of 96 and 101 soft call protection for one year, according to a market source.

The company’s $600 million credit facility also includes a $50 million five-year revolver.

Commitments are due by 5 p.m. ET on April 14, the source remarked.

Barclays, SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance debt that was put in place to fund the buyout of the company by Siris Capital Group LLC in December.

First-lien leverage is 3.4 times, and total leverage is 3.9 times, the source added.

Premiere Global is an Atlanta-based provider of collaboration software and services.

ERT holds meeting

ERT announced talk of Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months on its $495 million seven-year covenant-light first-lien term loan that launched with an afternoon bank meeting, a source remarked.

The company’s $540 million credit facility (B1/B) also includes a $45 million five-year revolver.

Commitments are due on April 13, the source added.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used with $220 million of privately-placed second-lien financing and equity to fund the buyout of the company by Nordic Capital Fund VIII from Genstar Capital.

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

ERT is a Philadelphia-based provider of patient data collection solutions for use in clinical drug development.

NAPA guidance emerges

NAPA Management Services revealed talk of Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months on its $320 million covenant-light term loan B (B1/B) that launched with a morning bank meeting, according to a market source.

Commitments are due at noon ET on April 12, the source said.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and BMO Capital Markets Corp. are leading the loan that will be used to help fund the buyout of the company by American Securities LLC.

NAPA is a Melville, N.Y.-based independent, outsourced anesthesia and perioperative management services company.

Evoqua releases talk

Evoqua held its lender call on Thursday afternoon, and a few hours before the event kicked off, talk on its non-fungible $185 million tack-on first-lien term loan (B2/B) due Jan. 15, 2021 emerged at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 98 to 98.5 and 101 soft call protection for one year, according to a market source.

Commitments are due on April 11.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used to fund the acquisition of Neptune Benson, a manufacturer of high-quality water filtration and disinfection products for the recreational, industrial, and municipal water markets.

Closing is expected this spring, subject to customary regulatory approvals.

Evoqua is a Warrendale, Pa.-based provider of equipment and services for water treatment.

MKS readies meeting

MKS Instruments set a bank meeting in New York for Monday to launch its previously announced $850 million senior secured credit facility, a market source said.

The facility consists of an $800 million seven-year covenant-light term loan B and a $50 million five-year ABL revolver.

Official price talk on the credit facility is not yet available, however in an 8-K filed with the Securities and Exchange Commission last month, expected term loan pricing was outlined as Libor plus 450 bps with a 0.75% Libor floor and initial expected revolver pricing was outlined as Libor plus 175 bps with a 37.5 bps commitment fee.

The filing also said that the term loan is anticipated to include 101 soft call protection for six months.

Barclays and Deutsche Bank Securities Inc. are leading the deal, with Barclays the left lead on the term loan and Deutsche Bank the left lead on the revolver.

MKS buying Newport

Proceeds from MKS’ credit facility will be used to help fund the acquisition of Newport Corp. for $23.00 per share, or about $980 million.

Pro forma gross debt to EBITDA at closing will be around 2.8 times, and net debt to EBITDA will be about 1.3 times.

Closing is expected in the second quarter, subject to regulatory approval and approval by Newport’s shareholders.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes. Newport is an Irvine, Calif.-based supplier of advanced-technology products and systems to customers in the scientific research, microelectronics, life and health sciences, industrial manufacturing and defense/security markets.

American Renal on deck

American Renal scheduled a lender call for Friday to relaunch a $60 million add-on first-lien term loan that was pulled in January as a result of a delay in the company’s proposed initial public offering of common stock, according to a market source.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., Barclays and Goldman Sachs Bank USA are the leads on the deal that will be used with IPO proceeds to refinance all of the company’s second-lien term loan debt.

When the add-on came to market in January it was talked at Libor plus 375 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Also, at that time, the company was planning on lifting pricing on its existing first-lien term loan to Libor plus 375 bps with a 1.25% Libor floor from Libor plus 325 bps with a 1.25% Libor floor, to match the add-on.

American Renal is a Beverly, Mass.-based provider of dialysis services.

MGM Growth sets meeting

MGM Growth Properties plans to hold a meeting on Friday morning to launch its credit facility, a market source said.

Bank of America Merrill Lynch is the left lead on the deal.

The company recently said in an S-11 filed with the Securities and Exchange Commission that it expects to get a senior secured credit facility, split between a revolver due 2021, a term loan A due 2021 and a term loan B due 2023, to help refinance some of the debt under bridge facilities assumed by the operating partnership from MGM Resorts International and some of its subsidiaries in connection with a series of formation transactions.

In addition, the company plans to issue senior unsecured notes.

MGM Growth is Las Vegas-based real estate investment trust that is being spun off from MGM Resorts, a Las Vegas-based operator of resorts and casinos.

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