Tibco, Tecomet, Global Cash, Packers, Equinox, ION break; Unite Private, Terra-Gen revised

By Sara Rosenberg

New York, Nov. 25 – The secondary market saw a bunch of deals free up for trading on Tuesday, including Tibco Software Inc., Tecomet Inc., Global Cash Access Inc., Packers Holdings LLC (PSSI), Equinox Holdings Inc. and ION Media Networks Inc.

Meanwhile, in the primary, Unite Private Networks reduced its delayed-draw term loan and second-lien term loan sizes in favor of a larger first-lien term loan B, tightened the spread and original issue discount on the B loan tranche and set pricing on the second-lien tranche at the low end of guidance.

Also, Terra-Gen Finance Co. LLC firmed pricing at the low end of talk and tightened the discount on its term loan, and Cable & Wireless Communications plc finalized original issue discounts on its term loans.

In addition, Vine Oil & Gas, CPM Holdings Inc., Douglas Dynamics Inc., Chief Power Finance LLC, Royalty Pharma and Atlas Holdings LLC surfaced with new deal plans.

Tibco tops OIDs

Tibco Software’s credit facility began trading on Tuesday with the $1.67 billion six-year covenant-light first-lien term loan B quoted at 96½ bid, 97½ offered. It then moved up to 97 bid, 98, while the $350 million one-year asset-sale bridge loan was quoted at 99¾ bid, according to one trader.

By late day, a second trader had the term loan B at 98 bid, 98½.

Pricing on the term loan B is Libor plus 550 basis points with a 1% Libor floor and it was sold at an original issue discount of 95. There is 101 soft call protection for one year.

The asset-sale loan is priced at Libor plus 450 bps with a 1% Libor floor and was issued at 99½.

The other day, the term loan B was upsized from $1.65 billion, pricing was lifted from Libor plus 450 bps, the discount widened from talk of 98½ to 99 and the call protection was extended from six months. The asset-sale loan was also upsized from $300 million, and the discount firmed at the tight end of the 99 to 99½ talk.

Other changes made included removing the 12 month MFN sunset provision and adjusting the incremental allowance, the excess cash flow sweep, the junior debt buyback amount, the incurred or assumed ratio test for permitted acquisitions, EBITDA terms, the reporting period and the asset sale of non-credit party guarantors.

Tibco funding buyout

Proceeds from Tibco’s $2,145,000,000 secured credit facility, which also provides for a $125 million five-year revolver, will be used to help fund its buyout by Vista Equity Partners for $24.00 per share in cash, or a total of about $4.3 billion, including the assumption of net debt.

J.P. Morgan Securities LLC, Jefferies Finance LLC, Apollo and MCS Capital are leading the deal.

Other funds for the transaction will come from $950 million of senior unsecured notes, $543 million of cash from the balance sheet and $1,614,000,000 of equity

First-lien leverage is 4.4 times and total leverage is 6.9 times.

Closing is expected in the fourth quarter, subject to approval by Tibco stockholders, regulatory approvals and other customary conditions.

Tibco is a Palo Alto, Calif.-based infrastructure and business intelligence software company.

Tecomet frees up

Tecomet’s credit facility also broke for trading, with the $525 million seven-year first-lien covenant-light term loan (B2/B) quoted at 97 bid, 98 offered and the $195 million eight-year second-lien covenant-light term loan (Caa2/CCC+) quoted at 94 bid, 95 offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 475 bps with a 1% Libor floor and it was sold at an original issue discount of 97. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 850 bps with a 1% Libor floor and was issued at 94. This debt has call protection of 103 in year one, 102 in year two and 101 in year three.

During syndication, the first-lien term loan was upsized from $520 million, pricing was increased from Libor plus 450 bps, the discount was changed from 99 and the call protection was extended from six months, and the second-lien term loan was upsized from $190 million, pricing was lifted from Libor plus 825 bps, the discount was moved from 98½, and the call protection was modified from 102 in year one and 101 in year two.

Tecomet getting revolver

In addition to the first- and second-lien term loans, Tecomet’s $780 million credit facility includes a $60 million five-year revolver (B2/B).

Credit Suisse Securities (USA) LLC, GE Capital Markets and Goldman Sachs Bank USA are leading the deal that will be used with equity from Genstar Capital Partners, Tecomet’s current sponsor, to fund the acquisition of Symmetry Medical Inc.’s OEM Solutions business for $450 million in cash, or $7.50 per share after fees and elimination of outstanding debt.

Closing is expected by the end of the year, subject to receipt of regulatory approvals, registration and listing of Symmetry Surgical’s common stock and shareholder approval.

Tecomet is a Wilmington, Mass.-based contract manufacturing, engineering and metal fabrication technology company.

Global Cash trades

Global Cash Access’ credit facility broke, with the $500 million six-year term loan B quoted at 99 bid, 99½ offered, according to a trader.

Pricing on the term loan is Libor plus 525 bps with a 1% Libor floor and it was sold at an original issue discount of 98½. There is 101 soft call protection for one year.

During syndication, the term loan was downsized from $800 million, pricing was lifted from Libor plus 475 bps, the discount was revised from 99, the maturity was shortened from seven years and a secured leverage covenant was added to the initially covenant-light tranche.

The company’s $550 million senior secured credit facility also includes a $50 million five-year revolver.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal.

Global Cash acquisition

Proceeds from Global Cash’s credit facility and bonds will be used to finance the acquisition of Multimedia Games Holding Co. Inc. for $36.50 per share, for an aggregate purchase price of about $1.2 billion in cash.

Closing is expected in early 2015, subject to customary conditions, including receipt of Multimedia Games shareholder approval and antitrust and gaming regulatory approvals.

Global Cash is a Las Vegas-based provider of fully integrated cash access and related services to the gaming industry. Multimedia Games is an Austin, Texas-based developer and distributor of gaming technology.

Packers hits secondary

Packers Holdings’ credit facility freed up as well, with the $355 million seven-year first-lien term loan B seen at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan B is Libor plus 400 bps with a step-down to Libor plus 375 bps at 4.25 times net leverage. The loan has a 1% Libor floor and 101 soft call protection for six months, and was issued at a discount of 99½.

During syndication, pricing on the term loan B was reduced from talk of Libor plus 425 bps to 450 bps, the step-down was added and the discount finalized at the tight end of the 99 to 99½ talk.

The company’s $385 million senior credit facility (B2/B) also includes a $50 million revolver.

Morgan Stanley Senior Funding Inc. and GE Capital Markets are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners LP from Harvest Partners LP.

Packers Holdings is a Kieler, Wis.-based contract sanitation service provider.

Equinox breaks

Equinox’s $150 million add-on term loan B (B1/B) started trading, with levels quoted at 99½ bid, par offered, a trader said.

Pricing on the loan is Libor plus 375 bps with a 1.25% Libor floor and it was sold at an original issue discount of 99. This debt has 101 soft call protection for one year.

During syndication, pricing on the loan was lifted from Libor plus 350 bps, a 25 bps step-down at less than 3.75 times leverage was eliminated and the call protection was extended from six months.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal that will be used for general corporate purposes, including a dividend payment.

Along with the add-on, the New York-based exercise and fitness company is amending its existing B loan and lenders were offered a 25 bps consent fee.

ION starts trading

ION Media Networks’ $150 million add-on term loan (B+) was another deal to free up, with levels quoted at 99¾ bid, par ¼ offered, according to a trader.

Pricing on the loan is Libor plus 375 bps, after firming at the tight end of the Libor plus 375 bps to 400 bps talk. There is a 1% Libor floor and 101 soft call protection for one year that was extended from six months, and the debt was sold at an original issue discount of 99½.

J.P. Morgan Securities LLC is leading the deal that will be used to fund a dividend.

ION is a television broadcast network.

Unite Private restructures

Switching to the primary, Unite Private Networks trimmed its five-year delayed-draw term loan to $100 million from $110 million, and kept pricing on this tranche, as well as on its $30 million five-year revolver, at Libor plus 400 bps with no Libor floor, according to a market source.

Meanwhile, the five-year first-lien term loan B was lifted to $102.5 million from $85 million, pricing was lowered to Libor plus 425 bps from Libor plus 450 bps and the original issue discount was modified to 99¼ from 99, the source said. This tranche still has a 1% Libor floor and 101 soft call protection for six months.

Furthermore, the six-year second-lien term loan was downsized to $40 million from $47.5 million and the spread firmed at Libor plus 775 bps, the tight end of the Libor plus 775 bps to 800 bps talk, while the 1% Libor floor, discount of 98½ and call protection of 102 in year one and 101 in year two were unchanged, the source continued.

Unite Private leads

SunTrust Robinson Humphrey Inc. and RBC Capital Markets LLC are leading Unite Private Networks’ credit facility that will be used to refinance existing debt and for general corporate purposes, including potential acquisitions.

Recommitments for the $272.5 million credit facility were due at the end of the day on Tuesday, allocations are expected after Thanksgiving and closing is aimed for Dec. 16, the source added.

First-lien leverage is 4.3 times, up from 3.6 times under the original structure, and net first-lien leverage is 2.9 times, up from 2.6 times. Total leverage is 6 times, up from 5.6 times previously, and net total leverage remained at 4.6 times.

Unite Private Networks is a Liberty, Mo.-based provider of high-bandwidth, fiber-based communications networks and related services to schools, governments, carriers, data centers, hospitals and enterprise business customers.

Terra-Gen updates deal

Terra-Gen Finance set pricing on its $300 million seven-year term loan B (Ba3/BB-) at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, and moved the original issue discount to 99½ from 99, a source said.

As before, the term loan has a 1% Libor floor and soft call protection of 102 in year one and 101 in year two.

Allocations are expected on Wednesday, the source added.

Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt and fund a distribution to equity owners.

Terra-Gen is a New York-based renewable energy company that owns 653 MW of generating capacity across 21 projects.

Cable & Wireless firms OIDs

Cable & Wireless Communications set the original issue discount on its $460 million two-year senior secured term loan at 99¼, the tight end of the 98¾ to 99¼ talk, and kept pricing at Libor plus 450 bps with a 1% Libor floor, according to a market source.

Furthermore, the discount on the $300 million two-year unsecured term loan came at 98½, the wide end of the 98½ to 99 talk, while pricing remained at Libor plus 550 bps with a 1% Libor floor, the source said.

J.P. Morgan Securities LLC is leading the $760 million of term loans that will be used with the placement of new shares to fund the acquisition of Columbus International Inc. for about $1.85 billion, plus the assumption of Columbus’ existing net debt, which totaled around $1.17 billion at June 30.

Closing is expected in the first quarter of 2015.

Cable & Wireless is a London-based telecom services provider. Columbus is a Barbados-based telecommunications and technology services company.

Vine Oil on deck

In more primary news, Vine Oil & Gas set a bank meeting for 11 a.m. ET in New York on Dec. 2 to launch $850 million of term loans, according to a market source.

The debt consists of a $500 million first-priority term loan B and a $350 million second-priority term loan C, the source said.

Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Societe Generale and Natixis are leading the deal that will be used to help fund the acquisition of the Haynesville assets in North Louisiana of SWEPI LP and Shell Gulf of Mexico Inc., affiliates of Royal Dutch Shell plc, for $1.2 billion.

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

Vine Oil is an exploration and production company formed by Blackstone Energy Partners.

CPM readies deal

CPM Holdings scheduled a bank meeting for 10 a.m. ET in New York on Dec. 2 to launch a $445 million senior secured credit facility, a market source remarked.

The facility consists of a $30 million revolver, a $315 million first-lien term loan B and a $100 million second-lien term loan, the source added.

Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt and pay a distribution to shareholders.

CPM is a Waterloo, Iowa-based supplier of process equipment used for oilseed processing and animal feed production.

Douglas joins calendar

Douglas Dynamics emerged with plans to hold a bank meeting at 2 p.m. ET on Monday to launch a $290 million credit facility that consists of a $100 million five-year revolver and a $190 million seven-year term loan B, according to a market source.

J.P. Morgan Securities LLC is leading the deal.

Proceeds from the credit facility and cash on hand will be used to fund the acquisition of Henderson for $95 million, subject to working capital, cash and other adjustments, to refinance existing debt and for general corporate purposes.

Closing is expected by year end, subject to customary regulatory approvals and conditions.

Douglas Dynamics is a Milwaukee-based manufacturer of vehicle attachments and equipment. Henderson is a Manchester, Iowa-based manufacturer of customized, turnkey snow and ice control services for heavy-duty trucks.

Chief Power coming soon

Chief Power Finance set a bank meeting for 2:30 p.m. ET in New York on Dec. 2 to launch a $365 million senior secured credit facility, according to a market source.

The facility consists of a $40 million revolver and a $325 million term loan B, the source said.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used to fund Arclight Capital’s acquisition of Exelon Corp.’s interests in two fossil fuel power plants.

Royalty Pharma plans loan

Royalty Pharma will hold a bank meeting on Monday to launch a $1.5 billion term loan B-4, a market source said.

Bank of America Merrill Lynch, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to repay short-term debt that was used to fund the $3.3 billion acquisition of royalties on Vertex Pharmaceuticals’ cystic fibrosis treatments owned by Cystic Fibrosis Foundation Therapeutics.

Royalty Pharma is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

Atlas schedules meeting

Atlas Holdings plans to hold a bank meeting at 10:30 a.m. ET in New York on Dec. 3 to launch a $155 million five-year term loan B, according to a market source.

Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are the leads on the deal that will be used to refinance an existing term loan B at Atlas Energy.

Atlas Holdings is a newly formed wholly owned domestic subsidiary of Atlas Energy Group GP LLC that has diversified interests in oil and gas assets and general partner interests.

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