Anchor Glass, NXT, Windstream, nThrive, Conduent, SiteOne, C.H.I. break; HealthSun updated

By Sara Rosenberg

New York, Nov. 22 – Anchor Glass Container Corp.’s credit facility made its way into the secondary market on Tuesday, with both its first- and second-lien term loans trading above their original issue discounts, and NXT Capital Inc., Windstream Holdings Inc. and nThrive Inc. broke too.

Additionally, Conduent Inc. finalized pricing on its term loan B at the high end of revised guidance, SiteOne Landscape Supply Inc. increased the size of its term loan, and C.H.I. Overhead Doors Inc. tightened the original issue discount on its incremental first-lien term loan, and then all of these deals freed up for trading as well.

In more happenings, HealthSun upsized its term loan B and set the original issue discount at the wide end of modified talk, timing and structure emerged on proposed loan deals from Zodiac Pool Solutions SAS and ContextMedia, and Masergy Communications joined the near-term new issue calendar.

Anchor hits secondary

Anchor Glass’ credit facility broke for trading, with the $650 million seven-year first-lien term loan (B1/B) quoted at 100 3/8 bid, 100 7/8 offered and the $150 million eight-year second-lien term loan (B3/CCC+) quoted at 101 bid, 102 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 325 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 775 bps with a 1% Libor floor, and it was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

On Monday, pricing on the first-lien term loan was lowered from Libor plus 375 bps with the discount was modified from 99, and pricing on the second-lien term loan was trimmed from Libor plus 825 bps with the discount tightening from 98.5.

The company’s $920 million credit facility also provides for a $120 million ABL revolver.

Anchor being acquired

Proceeds from Anchor Glass’ credit facility will be used to help fund its over $1 billion acquisition by CVC Capital Partners and BA Glass BV from KPS Capital Partners LP.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and UBS Investment Bank are leading the loan financing.

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

Anchor Glass is a Tampa, Fla.-based manufacturer of glass packaging products. BA Glass is a manufacturer of glass bottles in Europe.

NXT frees up

NXT Capital’s credit facility began trading as well, with the $300 million six-year term loan B quoted at 99¾ bid, 100½ offered, according to a trader.

Pricing on the term loan B is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan B finalized at the low end of the Libor plus 450 bps to 475 bps talk, the discount was revised from 99, the call protection was extended from six months, the MFN sunset was removed, the restricted payment unlimited prong was decreased to 2.25 times, and a minimum tangible net worth covenant of $650 million was added.

The company’s $350 million senior secured credit facility (B1/BB-) also includes a $50 million revolver.

RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

NXT, a Stone Point Capital portfolio company, is a Chicago-based provider of structured financing solutions.

Windstream tops OID

Windstream’s $600 million add-on term loan B-6 due March 2021 also broke, with levels quoted at 99¼ bid, 100¼ offered, a source said.

Pricing on the add-on term loan is Libor plus 400 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the loan was upsized from $450 million.

J.P. Morgan Securities LLC is leading the deal that is being done in connection with Windstream’s merger with EarthLink Holdings Corp. The transaction is valued at about $1.1 billion, including debt.

Proceeds will be used to refinance debt, including EarthLink’s existing third-party debt under its June 30, 2016 credit facility and EarthLink’s 8 7/8% notes due 2019 and 7 3/8% notes due 2020.

Closing is expected in the first half of 2017, subject to customary conditions, including regulatory approvals and approval by Windstream and EarthLink shareholders.

Windstream is a Little Rock, Ark.-based provider of advanced network communications and technology solutions. EarthLink is an Atlanta-based network services provider.

nThrive starts trading

nThrive’s fungible $105 million add-on covenant-light first-lien term loan (B2/B) due Oct. 20, 2022 freed up too, with levels seen at par bid, 100½ offered, according to a market source.

The add-on term loan is priced at Libor plus 550 bps with a 1% Libor floor, and was issued at a discount of 98.81, after firming last week within the initial 98 to 99 talk. The debt has 101 soft call protection through April 2017.

Barclays is leading the deal that will be used with incremental equity to fund the acquisition of Adreima and to pay related fees and expenses.

First-lien leverage is 4.3 times, and total leverage is 5.8 times.

Closing is expected on Dec. 1.

nThrive (formerly Precyse Acquisition Corp.) is a patient to payment provider of revenue cycle management technology and services.

Conduent sets spread, breaks

Conduent firmed pricing on its $750 million seven-year term loan B at Libor plus 550 bps, the high end of the revised Libor plus 525 bps to 550 bps talk and up from initial talk of Libor plus 450 bps, a market source said.

As before, the term loan B has a 0.75% Libor floor, an original issue discount of 97.5 and 101 soft call protection for one year.

Previously, the discount on the term loan B was revised from 98.5 and the call protection was extended from six months.

After terms finalized, the loan broke for trading, with levels quoted at 99¼ bid, par offered, another source added.

J.P. Morgan Securities LLC is the left lead on the deal that will be used with $500 million in senior notes, downsized this week from $750 million, to help fund the company’s spin-off from Xerox Corp.

Conduent is a provider of business process services with expertise in transaction-intensive processing, analytics and automation.

SiteOne upsizes, trades

SiteOne Landscape Supply lifted its term loan (B2) due April 29, 2022 to $298,625,000 from $273,625,000, a market source remarked.

As before, the term loan is priced at Libor plus 450 bps with a 1% Libor floor and a par issue price, and has 101 soft call protection for six months.

With final terms in place, the loan made its way into the secondary market, and levels were quoted at 100½ bid, 100¾ offered, a trader added.

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan from Libor plus 525 bps with a 1% Libor floor, and, because of the upsizing, to repay ABL borrowings.

SiteOne, a Clayton Dubilier & Rice portfolio company, is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

C.H.I. revised, frees up

C.H.I. Overhead changed the original issue discount on its $115 million incremental first-lien term loan due July 31, 2022 to 99.5 from 99 and left pricing at Libor plus 375 bps with a 1% Libor floor, according to a market source.

The loan then emerged in the secondary market, with levels quoted at 99¾ bid, 100¼ offered, the source said.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to refinance an existing second-lien term loan priced at Libor plus 775 bps with a 1% Libor floor.

Including the incremental loan, the first-lien term loan will total $428.6 million.

With the transaction, pricing on the existing first-lien term loan is being lifted to Libor plus 375 bps from Libor plus 350 bps due to a leverage step.

C.H.I. Overhead is an Arthur, Ill.-based manufacturer and marketer of overhead garage doors.

HealthSun tweaks deal

Also in the primary market, HealthSun raised its six-year covenant-light term loan B to $457 million from $450 million and firmed the original issue discount at 94, the wide end of most recent talk of 94 to 95, and wide of revised talk of 97 and initial talk of 99, according to a market source.

The term loan B is priced at Libor plus 550 bps with a 1% Libor floor, and has 101 soft call protection for one year.

Previously in syndication, pricing on the loan was lifted from revised talk of Libor plus 525 bps and initial talk of Libor plus 450 bps to 475 bps, the call protection was extended from six months, the maturity was shortened from seven years and the MFN sunset was removed.

The company’s now $482 million credit facility (B2/BB-) also includes a $25 million revolver.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to support the buyout of the company by Summit Partners.

The term loan upsizing was done to compensate for the wider original issue discount, the source added.

HealthSun is a Coconut Grove, Fla.-based Medicare Managed Care Organization.

Zodiac on deck

Zodiac Pool Solutions set a bank meeting for 10 a.m. ET in New York on Nov. 29 to launch its credit facility, which is now known to be sized at $800 million credit facility, according to a market source.

The facility consists of a $130 million ABL revolver, a $500 million seven-year first-lien term loan and a $170 million eight-year second-lien term loan, the source said.

Both term loans are talked with a 1% Libor floor, the first-lien term loan has 101 soft call protection for six months, and the second-lien tem loan has call protection of 102 in year one and 101 in year two. Spread and original issue discount guidance are not yet available.

Commitments are due on Dec. 12, the source added.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Nomura are leading the deal that will be used to help fund the buyout of the company by Rhone from the Carlyle Group.

Closing is subject to regulatory approvals.

Zodiac Pool is a Paris-based manufacturer of residential pool equipment and automation solutions.

ContextMedia readies meeting

ContextMedia emerged with plans to hold a bank meeting at 10 a.m. ET on Nov. 29 to launch a $325 million term loan B, according to a market source.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA and Citizens Bank are leading the deal that will be used to fund the acquisition of AccentHealth LLC from M/C Partners, Ridgemont Equity Partners and senior management.

Closing is expected by year-end, subject to customary conditions.

ContextMedia is a health care decision platform. AccentHealth is a New York and Tampa, Fla.-based provider of best-in-class patient education at the point of care.

Masergy coming soon

Masergy Communications scheduled a bank meeting for noon ET on Nov. 29 to launch a $522.5 million credit facility, a market source remarked.

The facility consists of a $50 million revolver, a $332.5 million first-lien term loan and a $140 million second-lien term loan, the source added.

Jefferies Finance LLC and Antares Capital are leading the deal that will help fund the buyout of the company by Berkshire Partners LLC, with Jefferies left on the first-lien loan and Antares left on the second-lien loan.

Masergy is a Plano, Texas-based provider of hybrid networking, managed security and cloud communications solutions.

Acrisure closes

In other news, the management-led buyout of Acrisure LLC from Genstar Capital in a $2.9 billion transaction has been completed, a news release said.

To help fund the transaction and refinance existing debt, Acrisure got a new $1.26 billion first-lien term loan (B2/B), including a $195 million delayed-draw piece, priced at Libor plus 475 bps with a 1% Libor floor, and sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, the delayed-draw portion was upsized from $110 million resulting in an increase in the total term loan amount from $1,175,000,000, the spread firmed at the high end of the Libor plus 450 bps to 475 bps talk and the call protection was extended from six months.

The company also got a $200 million revolver (B2/B) and a $305 million privately placed second-lien term loan (Caa2/CCC+).

J.P. Morgan Securities LLC, Antares Capital, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Madison Capital led the deal for the Caledonia, Mich.-based insurance brokerage.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.