Integra, Sterigenics, J. Jill, MJ, SIG Combibloc, Smart & Final, Grocery Outlet break

By Sara Rosenberg

New York, May 8 – Integra Telecom Holdings Inc. firmed the spread on its first-lien term loan at the high end of talk while extending the call protection, slightly downsized its second-lien term loan and then freed up for trading on Friday afternoon.

Also emerging in the secondary market were deals from Sterigenics International Inc., J. Jill, MJ Acquisition Corp., SIG Combibloc Group AG (Onex Wizard Acquisition), Smart & Final Stores Inc. and Grocery Outlet Inc. (GOBP Holdings Inc.).

In more happenings, PetSmart Inc. lifted pricing on its term loan, Houghton Mifflin Harcourt Publishers Inc. reduced price talk on its term loan B, Accuvant Inc./FishNet Security Inc. upsized its incremental term loans, and Pro Mach Inc. firmed its loan at the wide end of talk.

Additionally, Acrisure LLC set the spread on its first-lien term loan at the high end of guidance and added a delayed-draw tranche to its transaction, American Gaming Systems timing surfaced, and Merrill Communications LLC, Coveris Holdings SA, Filtration Group Corp. and Dynacast International joined the near-term calendar.

Integra updates deal

Integra Telecom set pricing on its $673 million 5.25-year senior secured first-lien term loan B at Libor plus 425 basis points, the wide end of the Libor plus 400 bps to 425 bps talk, and pushed out the 101 soft call protection to one year from six months, while leaving the 1% Libor floor and original issue discount of 99.5 unchanged, according to a market source.

Also, the company trimmed its 5.75-year second-lien term loan to $121 million from $123 million as original issue discount, fees and expenses will now be funded from cash on the balance sheet, the source said.

The second-lien term loan is still priced at Libor plus 850 bps with a 1.25% Libor floor and a discount of 99.5, and has hard call protection of 102 in year one and 101 in year two.

Morgan Stanley Senior Funding Inc. is leading the deal.

Integra hits secondary

With final terms in place, Integra Telecom’s term loans broke for trading on Friday afternoon, with the first-lien debt quoted at 99 5/8 bid, par offered and the second-lien debt quoted at 100¼ bid, 101¼ offered, a trader said.

Proceeds will be used to refinance existing first- and second-lien term loans. Through this transaction, the first-lien term loan is being upsized by $100 million from the current outstanding amount so as to pay down some second-lien loan borrowings.

Closing is expected around middle of the May 11 week.

Integra Telecom is a provider of telecommunications services.

Sterigenics above par

Sterigenics International is freed to trade too, with the $1.05 billion seven-year term loan B quoted at 100¼ bid, 100¾ offered and then it moved up to 100 3/8 bid, 100 7/8 offered, according to a trader.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. There is 101 soft call protection for six months.

During syndication, pricing on the term loan was trimmed from talk of Libor plus 350 bps to 375 bps and the discount was moved from 99.5.

The company’s $1.2 billion credit facility (B1/B) also includes a $150 million five-year revolver.

JPMorgan, Barclays, Jefferies Finance and RBC Capital Markets are leading the deal that will be used with $450 million of senior notes to help fund the company’s recapitalization with Warburg Pincus and GTCR.

Closing is expected this quarter.

Sterigenics is an Oak Brook, Ill.-based provider of contract sterilization, gamma technologies and medical isotopes.

J. Jill tops OID

J. Jill’s credit facility was another deal to surface in the secondary, with the $250 million seven-year term loan B (B2/B) quoted at 99¾ bid, 100½ offered, a trader said.

The term loan is priced at Libor plus 500 bps with a 1% Libor floor and was sold at an original issue discount of 99.5. Included in the debt is 101 soft call protection for six months.

Recently, the spread on the term loan finalized at the tight end of the Libor plus 500 bps to 550 bps talk, the discount was revised from 99 and the call protection was shortened from one year.

The company’s $290 million credit facility also includes a $40 million asset-based revolver.

Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used with about $169 million in equity to fund the buyout of the company by TowerBrook Capital Partners LP from Arcapita and Golden Gate Capital.

J. Jill, a Quincy, Mass.-based multi-channel fashion retailer of women’s apparel, accessories and footwear, expects the buyout to close this quarter.

MJ Acquisition breaks

MJ Acquisition’s credit facility started trading, with the $450 million seven-year term loan B (Ba3/BB-) seen at 100 3/8 bid, 100 7/8 offered, according to a trader.

The term loan is priced at Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. There is 101 soft call protection for one year.

The other day, pricing on the term loan was cut from talk of Libor plus 350 bps to 375 bps, the discount was tightened from 99.5, and the call protection was extended from six months.

The company’s $700 million credit facility also includes a $50 million five-year revolver (Ba3/BB-) and a pre-placed $200 million second-lien term loan (Caa1/B-).

J.P. Morgan Securities LLC is leading the deal that will be used with equity to fund the acquisition of Concentra Inc., a health care company, by MJ Acquisition, a joint venture between Select Medical Holdings Corp. and Welsh, Carson, Anderson & Stowe, from Humana Inc. for about $1,055,000,000 in cash.

Closing is expected this quarter, subject to regulatory clearance and customary conditions.

SIG Combibloc frees up

SIG Combibloc’s repriced began trading as well, with the $1,225,000,000 covenant-light term loan due March 13, 2022 quoted at par bid, 100¼ offered, a trader said.

Pricing on the U.S. term loan, as well as on a €1.05 billion covenant-light term loan due March 13, 2022, is Libor/Euribor plus 325 bps with a 1% floor, and the debt was issued at par. There is 101 soft call protection for one year in the loans.

Proceeds will be used to reprice the existing U.S. and euro term loans down from Libor/Euribor plus 425 bps with a 1% floor, and extend the call protection from March 13, 2016. Existing loans are being paid out at 101.

Barclays, Goldman Sachs Bank USA, RBS Securities Inc., RBC Capital Markets LLC, UniCredit, Credit Agricole, Nomura Securities Co. Ltd., Mizuho and Rabobank are leading the deal.

SIG Combibloc, a Switzerland-based supplier of carton packaging and filling machines for beverages and food, expects the repricing to close on Wednesday.

Smart & Final starts trading

Smart & Final’s roughly $595 million first-lien senior secured term loan B freed up too, with levels quoted at 100 1/8 bid, 100 3/8 offered, a trader remarked.

Pricing on the loan is Libor plus 325 bps with a 0.75% Libor floor, and it has 101 soft call protection for six months.

During syndication, the spread on the loan firmed at the wide end of the Libor plus 300 bps to 325 bps talk, and the Libor floor was cut from 1%.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing roughly $595 million term loan from Libor plus 375 bps with a 1% Libor floor.

Smart & Final is a Commerce, Calif.-based warehouse-style, no membership fee, multi-format retailer serving households and smaller businesses.

Grocery Outlet breaks

Grocery Outlet’s roughly $449 million senior secured first-lien term loan also hit the secondary market, with levels seen at 100¼ bid, 100½ offered, according to a trader.

Pricing on the loan is Libor plus 375 bps, after firming at the high end of the Libor plus 350 bps to 375 bps talk, a market source said. The debt has a 1% Libor floor and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 1% Libor floor.

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

PetSmart flexes up

Back in the primary, PetSmart widened pricing on its $4.3 billion senior secured covenant-light term loan B due March 10, 2022 to Libor plus 325 bps from Libor plus 300 bps, and left the 1% Libor floor, par issue price and 101 soft call protection for one year intact, according to a market source.

Commitments were due at 5 p.m. ET on Friday, the source said.

Citibank is leading the deal that will be used to reprice an existing term loan B from Libor plus 400 bps with a 1% Libor floor. Existing lenders are getting paid out at 101 due to current call protection.

PetSmart is a Phoenix-based specialty pet retailer.

Houghton revises talk

Houghton Mifflin reduced price talk on its $800 million six-year senior secured covenant-light term loan B (B1/BB/BB+) to Libor plus 300 bps to 325 bps from Libor plus 375 bps, according to a market source, who said the 1% Libor floor, discount of 99.5 and 101 soft call protection for six months were left intact.

Previously in syndication, the term loan was upsized from $500 million.

Commitments continued to be due at 5 p.m. ET on Friday, the source added.

Citigroup Global Markets Inc. and Wells Fargo Securities LLC are leading the deal that will help fund the $575 million acquisition of the Educational Technology and Services business of Scholastic Corp., to replace an existing $180 million term loan, and, due to the earlier upsizing, for general corporate purposes, including funding a stock repurchase program.

Closing is expected in late May, subject to customary conditions and regulatory approval.

Houghton Mifflin is a Boston-based provider of pre-K-12 education content, services and technology solutions. Educational Technology is a provider of digital intervention curriculum, products and services.

Accuvant modifies sizes

Accuvant/FishNet lifted its incremental first-lien term loan to $110 million from $100 million and set the original issue discount at 99.75, within the talk of 99.5 to 99.75, a source said.

Also, the incremental second-lien term loan was raised to $85 million from $70 million, while the discount remained at 99, the source continued.

Pricing on the first-lien term loan is Libor plus 525 bps with a 1% Libor floor, and pricing on the second-lien term loan is Libor plus 900 bps with a 1% Libor floor.

Commitments were due on Friday, moved up from Monday, the source added.

Jefferies Finance LLC is leading the now $195 million in fungible incremental term loans that will be used to fund a distribution to existing shareholders.

Accuvant/Fishnet is a provider of information security services and solutions.

Pro Mach firms spread

Pro Mach set pricing its $377.1 million term loan due October 2021 at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, according to a market source, who said the 1% Libor floor, par offer price and 101 soft call protection for six months were unchanged.

Goldman Sachs Bank USA is leading the deal.

Proceeds will be used to reprice an existing $377.1 million term loan due October 2021 from Libor plus 450 bps with a 1% Libor floor.

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.

Acrisure tweaks deal

Acrisure set pricing on its $410 million first-lien term loan (B2/B) at Libor plus 425 bps, the wide end of the Libor plus 400 bps to 425 bps talk, and added a $45 million delayed-draw first-lien term loan to its deal, according to a market source.

As before, the first-lien term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s now $590 million credit facility also includes a $75 million revolver (B2/B) and a $60 million second-lien term loan (Caa2/CCC+).

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and fund an acquisition.

Acrisure is a Caledonia, Mich.-based retail insurance brokerage.

American Gaming sets launch

Also in the primary, American Gaming Systems scheduled a bank meeting on Tuesday to launch its previously announced $250 million incremental term loan, according to a market source.

Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used with $115 million in senior secured PIK notes to fund the acquisition of Cadillac Jack Inc. from Amaya Inc. for C$476 million, consisting of C$461 million in cash and a C$15 million 5% PIK note.

Closing is expected this year, subject to gaming regulatory and antitrust approvals and other customary closing conditions.

American Gaming is a Las Vegas-based manufacturer and operator of gaming machines. Cadillac Jack is a designer and supplier of electronic games and systems for the regulated global gaming industry.

Merrill joins calendar

Merrill Communications emerged with plans to hold a bank meeting at 10 a.m. ET on Tuesday to launch a $560 million credit facility, a market source said.

The facility consists of a $50 million revolver, and a $510 million seven-year covenant-light first-lien term loan talked with a 1% Libor floor and 101 soft call protection for one year, the source continued. Spread and original issue discount on the term loan are not yet available.

Commitments are due on May 27.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to refinance existing debt.

Merrill is a St. Paul, Minn.-based provider of outsourcing solutions for complex business communication and information management.

Coveris readies call

Coveris set a lender call for 11 a.m. ET on Monday to launch a €50 million to €75 million add-on term loan that will be used to repay a portion of the existing U.S. dollar-denominated term loan, according to a company release.

In addition, the company will launch a repricing of its existing U.S. dollar and euro senior secured term loan debt, the release said.

Currently, the company’s existing term debt consists of a $429.6 million tranche priced at Libor plus 425 basis points with a 1% Libor floor and a $187.9 million-equivalent euro term loan priced at Libor plus 475 bps with a 1% Libor floor.

Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that is expected to close in the second half of this month.

Coveris is a Chicago-based manufacturer of packaging solutions and coated film technologies.

Filtration coming soon

Filtration Group Corp. plans to hold a call on Monday to launch a $115 million add-on first-lien term loan (B1) that will be used to pay down second-lien term loan borrowings, a market source remarked.

Also, the company is looking to amend its existing credit facility to allow for the paydown, and to remove a leverage-based step-up in pricing on the first-lien term loan to Libor plus 350 bps with a 1% Libor floor from Libor plus 325 with a 1% Libor floor, the source said.

Goldman Sachs Bank USA is leading the deal.

Filtration Group is Chicago-based manufacturer and distributor of filtration products to end markets.

Dynacast on deck

Dynacast set a lender call for Monday to launch a repricing of its $530 million first-lien term loan due January 2022 that is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

The repricing will take the first-lien term loan down from Libor plus 425 bps with a 1% Libor floor.

J.P. Morgan Securities LLC, Barclays and Macquarie Capital (USA) Inc. are leading the deal.

Existing lenders will be taken out at 101 due to the current presence of call protection.

Dynacast is a Charlotte, N.C.-based manufacturer of small, highly complex metal components.

Compusearch closes

In other news, the buyout of Compusearch by ABRY Partners has been completed, according to a news release.

For the buyout, Compusearch got a $181 million credit facility that includes a $15 million revolver, a $115 million six-year first-lien term loan B and a $51 million 6½-year second-lien term loan that was privately placed.

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 99.75, after tightening during syndication from 99. The debt has 101 soft call protection for six months.

SunTrust Robinson Humphrey Inc. led the deal.

Compusearch is a Dulles, Va.-based provider of software and services that advance commerce and collaboration among government agencies and contractors.

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