Academy, Curium, Imperva, Xplornet, Angus Chemical break; E2open, MotorCity accelerated

By Sara Rosenberg

New York, Oct. 28 – Academy Ltd. (Academy Sports & Outdoors) firmed the spread on its first-lien term loan at the wide side of talk, and Curium Bidco Sarl set pricing on its first-lien term loan B at the high end of guidance and firmed the spread and issue price on its second-lien term loan at the tight side of talk, and then these deals freed to trade on Wednesday.

Also, Imperva Inc. finalized the original issue discount on its incremental first-lien term loan at the wide end of guidance before breaking for trading, and deals from Xplornet Communications Inc. and Angus Chemical Co. hit the secondary market as well.

Meanwhile, in other happenings, E2open Inc. and MotorCity Casino Hotel (CCM Merger Inc.) moved up the commitment deadlines for their loan transactions.

Academy finalizes, trades

Academy set pricing on its $400 million seven-year covenant-lite first-lien term loan (B2/B) at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk, after accelerating the commitment deadline to 2 p.m. ET on Wednesday from 5 p.m. ET on Wednesday, according to a market source.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

In the afternoon, the term loan made its way into the secondary market and levels were quoted at 99 bid, 99½ offered, another source added.

Credit Suisse Securities (USA) LLC, KKR Capital Markets, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities Inc., Capital One, U.S. Bank, Regions Bank and BBVA are leading the loan that will be used with $400 million of senior secured notes to refinance existing debt.

Academy is a Katy, Tex.-based sporting goods, outdoor and lifestyle products retailer.

Curium updated, frees up

Curium finalized pricing on its $265 million seven-year covenant-lite first-lien term loan B (B2/B/B+) at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, a market source remarked. This tranche still has a 25 bps step-down at 3.5x first-lien net leverage, a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Meanwhile, the spread on the $325 million eight-year covenant-lite second-lien term loan (Caa2/CCC+/CCC+) firmed at Libor plus 775 bps, the low end of the Libor plus 775 bps to 800 bps talk, and the discount was set at 98.5, the tight end of the 98 to 98.5 guidance, the source continued. The 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two were unchanged.

The term loans broke for trading during the session, with the first-lien tranche quoted at 99 bid, 99¾ offered and the second-lien tranche quoted at 99 bid, another source added.

J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and Nomura are leading the $590 million of term loans that will be used to help fund the acquisition of the company by CapVest Fund IV and third-party investors from CapVest Fund III.

Curium is a nuclear medicine company with headquarters in London and Paris.

Imperva sets OID, breaks

Imperva set the original issue discount on its fungible $147 million incremental first-lien term loan (B2/B-) due Jan. 10, 2026 at 98.79, the wide end of the 98.79 to 99 talk, according to a market source.

The incremental term loan is priced at Libor plus 400 bps with a 1% Libor floor, in line with the existing first-lien term loan, and has 101 soft call protection for six months.

On Wednesday, the incremental term loan began trading and levels were quoted at 98 5/8 bid, 99 1/8 offered, a trader added.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to fund an acquisition.

Imperva is a San Mateo, Calif.-based provider of cyber security solutions to protect databases and applications.

Xplornet hits secondary

Xplornet Communications’ fungible $62 million incremental covenant-lite first-lien term loan due June 10, 2027 freed up too, with levels quoted at 98 bid, 98½ offered, a market source said.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 475 bps with a 0% Libor floor and has 101 soft call protection through June 10, 2021. The incremental term loan was sold at an original issue discount of 98.

Early in the day, the commitment deadline for the incremental term loan was revised to 2:30 p.m. ET on Wednesday from 5 p.m. ET on Wednesday, another source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund tuck-in acquisitions.

Xplornet is a broadband service provider in Canada.

Angus first-lien trades

Angus Chemical’s $450 million seven-year first-lien term loan B (B1/B-/BB) broke as well, with levels quoted at 99¼ bid, 99¾ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 bps with a 25 bps step-down at 4.3x first-lien net leverage and a 0.75% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for six months.

The company is also getting a €350 million seven-year first-lien term loan B (B1/B-/BB) and a $345 million eight-year second-lien term loan (Caa1/CCC/B-).

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BNP Paribas Securities Corp. and Jefferies LLC are leading the deal that will be used to refinance existing debt in connection with the acquisition of a 50% ownership stake in the company by Ardian from Golden Gate Capital at a total enterprise value of about $2.25 billion. Golden Gate will retain a 50% stake in Angus.

Closing is expected by the end of the year.

Angus is a Buffalo Grove, Ill.-based specialty and fine chemical company.

E2open tweaks deadline

E2open accelerated the commitment deadline for its $525 million seven-year first-lien term loan B to 10 a.m. ET on Thursday from 5 p.m. ET on Thursday, a market source remarked.

Talk on the term loan B is Libor plus 325 bps to 350 bps with a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 0.5% Libor floor, an original issue discount of 99, 101 soft call protection for six months and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

The company’s $600 million of credit facilities (B2/B) also include a $75 million revolver.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Golub Capital are leading the deal that is being done in connection with the company’s combination with CC Neuberger Principal Holdings I, a publicly traded special purpose acquisition company formed by CC Capital and Neuberger Berman.

Proceeds will be used with up to $1.13 billion of equity to refinance the company’s net debt, distribute cash to existing shareholders, place cash on the balance sheet for working capital and pay related fees and expenses.

E2open is an Austin, Tex.-based network-based provider of cloud-based, end-to-end supply chain management software.

MotorCity accelerated

MotorCity moved up the commitment deadline for its $275 million five-year term loan B (Ba3/BB) to 4 p.m. ET on Thursday from noon ET on Friday, according to a market source.

Talk on the term loan is Libor plus 350 bps to 375 bps with a 0.75% Libor floor and an original issue discount of 98.5

BofA Securities Inc. is the left lead on the deal that will be used with $275 million of notes to refinance an existing senior secured credit facility, refinance 6% senior notes due 2022 and fund a dividend.

MotorCity is Detroit-based casino and hotel.

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