Platform Specialty dips with add-on news; Skillsoft loans rise on proposed spread increase

By Sara Rosenberg

New York, Sept. 10 – Platform Specialty Products Corp. (MacDermid Inc.) saw its first-lien term loan and add-on first-lien term loan soften in trading on Wednesday as the company surfaced with plans to bring additional first-lien debt to market, and Skillsoft Ltd.’s first- and second-lien term loans were stronger with a proposed pricing increase.

In more happenings, FleetCor Technologies Inc., Aristocrat Leisure Ltd., Progrexion, Service King Collision Repair Centers and ProQuest LLC released price talk with launch, Pike Corp. timing surfaced and Sensis emerged with new loan plans.

Platform Specialty slides

Platform Specialty Products’ existing $755 million first-lien term loan and existing $130 million add-on first-lien term loan weakened in the secondary market on Wednesday after news emerged that a new fungible $300 million add-on first-lien covenant-light term loan will be launched to investors with a call at 10:30 a.m. ET on Thursday, according to a trader.

The first-lien term loan was quoted at 99 bid, 99¾ offered, down from 99½ bid, par offered, and the add-on first-lien term loan was quoted at 98¾ bid, 99½ offered, down from 99¼ bid, 99¾ offered, the trader said.

All of the existing first-lien term loan debt matures on June 7, 2020, is priced at Libor plus 300 basis points with a 1% Libor floor and has 101 soft call protection through February 2015.

Platform buying Agriphar

Proceeds from Platform Specialty Products’ add-on term loan will be used, along with cash on hand, to fund the €300 million acquisition of Agriphar.

When the acquisition was announced this summer, the company said it would use new debt for a portion of the transaction cost, but the timing and structure were not available.

Closing is expected in the fourth quarter.

Net first-lien and net total leverage is 4.3 times, the source added.

Platform Specialty Products is a Miami-based producer of high-technology specialty chemical products and provider of technical services. Agriphar is a European agrochemicals group.

Skillsoft gains ground

Skillsoft’s existing first-lien term loan moved up to 98½ bid, 99½ offered from 97 5/8 bid, 98 3/8 offered and its second-lien term loan strengthened to 97½ bid, 98½ offered from 97 bid, 98 offered as the company launched and came out with price talk on its incremental first- and second-lien term loans and announced that it will increase pricing on its existing term loans to match the incremental pricing, according to a trader.

Talk on the $515 million incremental first-lien term loan due April 28, 2021 and existing $900 million first-lien term loan due April 28, 2021 is Libor plus 425 bps to 450 bps with a 1% Libor floor, with the incremental offered at a discount of 99 to 99½ and the existing offered at par, the source said. Call protection on all of the debt will match the existing loan at a 101 soft call through April 28, 2015.

Meanwhile, talk on the $185 million incremental second-lien term loan due April 28, 2022 and existing $485 million second-lien term loan due April 28, 2022 is Libor plus 775 bps to 800 bps with a 1% Libor floor, with the incremental offered at a discount of 98½ to 99, and the existing second-lien loan offered at par, the source continued. Call protection on all of the second-lien loans matches the existing debt at a hard call of 102 through April 28, 2015 and 101 through April 28, 2016.

Skillsoft current pricing

Skillsoft’s transaction will take pricing on its existing first-lien term loan up from Libor plus 350 bps with a 1% Libor floor and pricing on its existing second-lien term loan up from Libor plus 675 bps with a 1% Libor floor.

All first-lien term loans will be fungible and all second-lien term loans will be fungible.

Barclays, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the covenant-light loans for the Dublin-based provider of cloud-based learning services, with Barclays left lead on the first-lien and Morgan Stanley left lead on the second-lien.

Commitments are due on Sept. 19, the source added.

Proceeds from the $700 million of incremental term loans will be used to fund the acquisition of SumTotal Systems LLC, a Gainesville, Fla.-based provider of integrated HR services, from Vista Equity Partners.

Closing on the acquisition is subject to various conditions, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Act.

FleetCor sets talk

Moving to the primary, FleetCor Technologies held its bank meeting on Wednesday, launching its $1.05 billion seven-year term loan B with talk of Libor plus 300 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, a market source said.

The company’s $3,785,000,000 senior secured credit facility (Ba3/BB+) also includes a $1 billion revolver A, a $35 million revolver B and a $1.7 billion five-year term loan A.

Commitments are due on Sept. 24, the source added.

Bank of America Merrill Lynch, Barclays, PNC Capital Markets LLC and Wells Fargo Securities LLC are leading the deal.

FleetCor funding acquisition

Proceeds from FleetCor’s credit facility will be used to help fund the purchase of Comdata Inc., a Brentwood, Tenn.-based business-to-business provider of electronic payment services, from Ceridian LLC for $3.45 billion.

As part of the transaction, FleetCor will issue about 7.3 million shares of FleetCor common stock to Ceridian.

Closing is expected in December, subject to regulatory approvals and other customary conditions.

Pro forma leverage is expected to be 3.3 times at year-end.

FleetCor is a Norcross, Ga.-based provider of fuel cards and workforce payment products to businesses.

Aristocrat reveals pricing

Aristocrat set talk of Libor plus 325 bps to 350 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months on its $1.3 billion seven-year term loan B, according to a market source.

The company’s credit facility (Ba2), which also includes a A$100 million revolver, launched with an afternoon bank meeting and has a commitment deadline of Sept. 24.

UBS Securities LLC, Bank of America Merrill Lynch, Nomura and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of Video Gaming Technologies Inc. for about $1,283,000,000 in cash, subject to certain adjustments and regulatory approvals.

Aristocrat Leisure is an Australia-based provider of gaming services. Video Gaming Technologies is a Franklin, Tenn.-based designer, manufacturer, distributor and operator of gaming player terminals and centrally determined gaming systems.

Progrexion guidance emerges

Progrexion released talk of Libor plus 550 bps with a 1% Libor floor and an original issue discount of 99 on its $280 million six-year first-lien term loan (Ba3/B+) that launched with a bank meeting in the morning, a source said.

As previously reported, the first-lien term loan has 101 soft call protection for one year.

The company’s $160 million seven-year second-lien term loan (Caa1/CCC+) has been pre-placed, the source said.

Jefferies Finance LLC and Morgan Stanley Senior Funding Inc. are leading the $440 million of term loans that will be used to refinance the company’s $430 unitranche financing provided by Prospect Capital earlier in the year for a 6 times leveraged dividend recapitalization.

Leverage is 3.2 times through the first-lien and 5 times through the second-lien.

Progrexion is a provider of credit repair services.

Service King launches

Service King launched with its morning bank meeting its $355 million covenant-light term loan B and $40 million covenant-light delayed-draw term loan with talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $495 million credit facility also includes a $100 million revolver.

Commitments are due on Sept. 19, the source added.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Macquarie Capital are leading the deal that will be used to help fund the acquisition of a majority stake in the company by Blackstone, while the Carlyle Group, its co-investors and management and employees will retain a significant minority stake in the company.

Closing is expected in the third quarter.

Service King is a Dallas-based operator of a chain of automobile body repair centers.

ProQuest comes to market

ProQuest released talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $435 million seven-year term loan B (B2/B) that launched with a bank meeting during the session, a source said.

Commitments are due on Sept. 23, the source added.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to refinance existing debt.

ProQuest is an Ann Arbor, Mich.-based electronic publisher and microfilm publisher.

Pike timing

Also on the primary front, Pike set a Thursday bank meeting to launch its previously announced $540 million senior secured credit facility, according to a market source.

The facility consists of a $100 million five-year revolver, a $290 million seven-year first-lien term loan and a $150 million 7½-year second-lien term loan.

Early whisper on the first-lien term loan was Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and early guidance on the second-lien loan was Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 year two, but official talk is not yet out, the source said.

J.P. Morgan Securities LLC, Keybanc Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with up to $190 million in equity and cash on hand to fund the buyout of the Mount Airy, N.C.-based specialty construction and engineering firm by Court Square Capital Partners and including chairman and chief executive officer J. Eric Pike for $12.00 in cash per share.

Closing is expected in the fourth quarter, subject to shareholder and regulatory approvals.

Sensis on deck

Sensis scheduled a conference call for Thursday to launch a $400 million five-year term loan, according to a market source.

Bank of America Merrill Lynch, Macquarie Capital and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing debt and fund a dividend.

Sensis is a provider of local search and digital marketing services to Australian businesses.

© 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.