Sinclair, Consolidated Precision, Insurity free to trade; Boyd loan revisions surface

By Sara Rosenberg

New York, July 18 – Sinclair Broadcast Group Inc. (Diamond Sports Group LLC) trimmed the spread on its term loan B and revised the original issue discount, and Sinclair Television Group Inc. upsized its incremental term loan B, lowered pricing and set the issue price at the tight end of guidance, and then both term loans hit the secondary market on Thursday.

Also, Consolidated Precision Products Corp. (WP CPP Holdings LLC) modified the original issue discount on its add-on term loan B and then broke for trading, and Insurity Inc.’s (Huskies Parent Inc.) bank debt freed up as well.

In more happenings, Boyd Corp. (LTI Holdings Inc.) adjusted the original issue discount on its incremental first-lien term loan and revised the pricing grid.

Furthermore, MyEyeDr. (MED ParentCo. LP), Total Safety, Focus Financial Partners Inc., BroadStreet Partners Inc. and Veritext Corp. released price talk with launch, and Chief Power Finance LLC and Access CIG LLC surfaced with new deal plans.

Sinclair changes emerge

Sinclair Broadcast cut pricing on its $3.3 billion seven-year term loan B to Libor plus 325 basis points from talk in the range of Libor plus 375 bps to 400 bps, firmed the original issue discount at 99.5, the narrow end of revised talk of 99 to 99.5 and tighter than initial talk of 99, extended the MFN sunset to 12 months from six months and added quarterly conference calls, according to a market source.

Regarding Sinclair Television Group, its seven-year incremental term loan B was increased to $1.3 billion from $700 million, the spread was flexed down to Libor plus 250 bps from Libor plus 300 bps and the discount finalized at 99.5, the tight end of the 99 to 99.5 talk, the source said.

As before, both the Sinclair Broadcast and Sinclair Television term loans have a 0% Libor floor and 101 soft call protection for six months.

Based on filings with the Securities and Exchange Commission, Sinclair Broadcast is also expected to get a $300 million five-year revolver and Sinclair Television is expected to amend its existing credit agreement to get a $650 million revolver.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., RBC Capital Markets Corp. and BofA Securities Inc. provided the debt commitment.

Sinclair starts trading

Commitments for both term loans were due at noon ET on Thursday and the loans freed to trade later in the day, with Sinclair Broadcast’s term loan B quoted at par bid, par 3/8 offered and Sinclair Television’s incremental term loan B quoted at par bid, par ½ offered, a trader added.

The new loans will be used with $3.05 billion of senior secured notes, upsized from $2.55 billion, $1,825,000,000 of senior unsecured notes, downsized from $2,325,000,000, and perpetual preferred equity to fund the acquisition of 21 Regional Sports Networks and Fox College Sports from the Walt Disney Co. The funds from the Sinclair Television term loan upsizing will be used to refinance existing 5.375% senior notes due 2021.

The transaction ascribes a total enterprise value to the assets equal to $10.6 billion, reflecting a purchase price of $9.6 billion, after adjusting for minority equity interests.

Closing is subject to customary conditions, including the approval of the U.S. Department of Justice.

First-lien net leverage at Sinclair Broadcast is 3.7x off of attributable EBITDA, up from 3.4x, as a result of the upsize to the secured bond deal.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

CPP tweaked, breaks

Consolidated Precision Products revised the original issue discount on its fungible $192 million add-on covenant-lite term loan B (B2/B) due April 2025 to 99.5 from 99.25, a market source said.

The add-on term loan is priced at Libor plus 375 bps with a 1% Libor floor.

Commitments were due at noon ET and the add-on term loan freed up in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, a trader added.

The company is also getting a $50 million delayed-draw term loan and an $80 million second-lien term loan, which have been placed with Carlyle.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to support a recapitalization transaction with Berkshire Partners and Warburg Pincus, the company’s current financial partner, and the acquisition of Allegheny Technologies Inc.’s Cast Products business, a producer of titanium investment castings that are primarily used by aerospace & defense OEMs in the production of commercial jet airframes and engines.

Closing is expected on Monday.

Consolidated Precision Products is a Cleveland-based manufacturer of engineered components and subassemblies primarily for the commercial aerospace, defense and industrial gas turbine markets.

Insurity hits secondary

Insurity’s $385 million seven-year first-lien term loan (B2/B-) began trading too, with levels quoted at par bid, par ½ offered, a market source remarked.

Pricing on the first-lien term loan is Libor plus 400 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the first-lien term loan was upsized from $370 million and the discount was modified from 99.

The company’s $585 million of credit facilities also include a $40 million five-year revolver (B2/B-) and a $160 million privately placed eight-year second-lien term loan.

Jefferies LLC and BofA Securities Inc. are leading the deal that will be used to help fund the buyout of the company by GI Partners.

As a result of the recent first-lien term loan upsizing, the equity component for the buyout was reduced.

Closing is expected in the third quarter.

Insurity is a Hartford, Conn.-based software platform for the property & casualty insurance industry.

Boyd updated

Back in the primary market, Boyd changed the original issue discount on its non-fungible $125 million seven-year incremental first-lien term loan (B2/B-) to 95 from 96, a market source said.

Additionally, the term loan now has one 25 bps step-down at 4.65x first-lien net leverage, revised from a 25 bps step-down at 4.65x and a second 25 bps step-down at 4.15x first-lien net leverage, the MFN was changed to 50 bps for life from 75 bps for six months, and all MFN carve-outs were removed except a basket equal to the greater of $60 million and 25% of consolidated EBITDA, the source continued.

Initial pricing on the term loan is still Libor plus 475 bps with a 0% Libor floor, and there is still a 25 bps step-down upon an initial public offering.

Commitments were due at 4 p.m. ET on Thursday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the acquisition of Lytron Inc. and pay related fees and expenses. RBC Capital Markets Corp. is the administrative agent.

Boyd is a Pleasanton, Calif.-based provider of highly engineered thermal management and environmental sealing solutions.

MyEyeDr. proposed terms

MyEyeDr. held its bank meeting on Thursday and announced price talk on its first-and second-lien term loans, according to a market source.

Talk on the $845 million seven-year first-lien term loan and $211 million seven-year delayed-draw for 24 months first-lien term loan (B2/B) is Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 99, and talk on the $360 million eight-year second-lien term loan (Caa2/CCC+) and $90 million eight-year delayed-draw for 24 months second-lien term loan (Caa2/CCC+) is Libor plus 800 bps to 825 bps with a 0% Libor floor and a discount of 98.5, the source said.

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.

Delayed-draw term loan ticking fees are half the margin from days 61 to 120 and the full margin thereafter.

The company’s $1,631,000,000 of senior secured credit facilities also include a $125 million five-year revolver (B2/B).

MyEyeDr. being acquired

Proceeds from MyEyeDr.’s credit facilities will be used to help fund its buyout by Goldman Sachs Merchant Banking Division from Altas Partners and Caisse de depot et placement du Quebec.

Jefferies LLC, Credit Suisse Securities (USA) LLC, Nomura, Golub Capital, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the debt.

Commitments are due at 2 p.m. ET on July 31, the source added.

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

MyEyeDr. is an optometry platform. The company is affiliated with Capital Vision Services LP, which provides management services to MyEyeDr. optometrists and its practices with financial, marketing, human resources and account services, along with managed care credentialing and claims processing.

Total Safety guidance

Total Safety came out with talk of Libor plus 550 bps with a 1% Libor floor and an original issue discount of 98 on its $330 million seven-year first-lien term loan (B3/B-) and $75 million seven-year delayed-draw first-lien term loan (B3/B-) shortly before its morning bank meeting kicked off, a market source remarked.

The term loan has 101 soft call protection for six months, and delayed-draw term loan ticking fees are half the margin for days 31 to 60 and the full margin thereafter.

The company’s $480 million of credit facilities also include a $75 million ABL revolver.

Commitments are due at 5 p.m. ET on July 31, the source added.

Goldman Sachs Bank USA, Citizens Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund the acquisition of Sprint Safety, to refinance existing debt at Total Safety and to pay transaction-related fees and expenses.

Littlejohn is the sponsor.

Total Safety is a Houston-based provider of outsourced safety and compliance solutions. Sprint Safety is a provider of safety equipment rentals, breathable air solutions, training and turnaround management.

Focus OID talk

Focus Financial Partners launched on its morning lender call its fungible $300 million add-on term loan B with original issue discount talk of 99.5 to 99.75, according to a market source.

The add-on term loan is priced at Libor plus 250 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Commitments are due at noon ET on July 25, the source said.

RBC Capital Markets is the left lead on the deal that will be used to repay revolver borrowings.

Closing is expected this month.

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

BroadStreet proposed discount

BroadStreet Partners released original issue discount talk of 99.5 on its fungible $135 million add-on term loan B that launched with a call in the afternoon, a market source said.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with the company’s existing $735 million term loan B, and has 101 soft call protection for six months.

Commitments are due at noon ET on July 25, the source added.

RBC Capital Markets LLC is the left lead on the deal, which will be used for acquisitions and to repay revolver borrowings.

BroadStreet is a Columbus, Ohio-based insurance broker.

Veritext launches

Veritext held its lender call during the session, launching its fungible $50 million add-on term loan with original issue discount talk of 99.5, a market source remarked.

The add-on term loan is priced at Libor plus 375 bps with a 0% Libor floor, in line with the existing term loan, and has 101 soft call protection for six months.

Commitments are due on July 25, the source added.

BNP Paribas Securities Corp. is leading the deal that will be used to repay revolver borrowings.

Veritext is a Livingston, N.J.-based provider of deposition and litigation support solutions for law firms and corporations.

Chief Power on deck

Chief Power Finance set a bank meeting for 9:30 a.m. ET on Tuesday to launch $380 million of credit facilities, according to a market source.

The facilities consist of a $45 million 4.5-year super senior revolver that will be undrawn at close and a $335 million five-year term loan B, the source said.

Barclays is leading the deal that will be used to refinance existing credit facilities and help fund the acquisitions of PSEG’s KeyCon ownership interests. The refinancing transaction also contemplates the un-levered contribution of KeyCon’s O&M contract into Chief.

ArcLight Energy Partners Fund V LP is the sponsor.

Chief Power is the indirect owner of undivided ownership interests in two coal-fired generating facilities in PJM with a total net owned capacity of 2,137 MW, pro forma for the contemplated KeyCon transaction.

Access CIG joins calendar

Access CIG scheduled a lender call for 3 p.m. ET on Monday to launch an incremental first-lien term loan, a market source said.

Jefferies LLC is the left lead on the deal.

Access CIG is a Livermore, Calif.-based provider of physical and digital records and information management services.

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