Stuart Weitzman trades up on acquisition news; Global Knowledge, Hoover Container set talk

By Sara Rosenberg

New York, Jan. 6 – Stuart Weitzman Holdings LLC’s term loan headed higher in the secondary market on Tuesday following news that the company is being purchased by Coach Inc.

Switching to the primary market, Global Knowledge Training LLC came out with pricing guidance on its first- and second-lien term loans with launch, Hoover Container Solutions released talk in preparation for its upcoming bank meeting, and IPC Corp., Kaufman Hall & Associates LLC and Alliant Holdings joined the near-term calendar.

Stuart Weitzman rises

Stuart Weitzman’s term loan gained some ground in trading on Tuesday after it was announced that Coach is buying the company from Sycamore Partners, according to a trader.

The term loan was quoted at 99 bid, par offered, up from 98¼ bid, 99¼ offered, a trader remarked.

Under the agreement, Stuart Weitzman is being purchased for about $530 million plus up to $44 million in contingent payments upon the successful achievement of selected revenue targets over the three years following the closing of the acquisition.

Funds for the transaction will come from cash on hand or other sources of financing available to the company in the credit and capital markets, a news release said.

Closing is expected by May, subject to customary conditions, including expiration of the Hart-Scott-Rodino Antitrust waiting period.

Stuart Weitzman is a New York-based designer and manufacturer of women’s luxury footwear. Coach is a New York-based design house of modern luxury accessories and lifestyle collections.

Global Knowledge talk emerges

Over in the primary, Global Knowledge Training held its bank meeting at 12:30 p.m. ET in New York on Tuesday, and a few hours before the event kicked off, price talk on the company’s first- and second-lien term loans was announced, according to a market source.

The $175 million six-year first-lien covenant-light term loan is talked at Libor plus 525 basis points with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and the $50 million seven-year second-lien covenant-light term loan is talked at Libor plus 900 bps with a 1% Libor floor, a discount of 98½, and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

The company’s $245 million credit facility also includes a $20 million revolver.

Commitments are due on Jan. 16.

Credit Suisse Securities (USA) LLC, Macquarie Capital and ING are leading the deal that will be used to help fund the buyout of the company by Rhone Capital LLC from MidOcean Partners.

Global Knowledge is a Cary, N.C.-based provider of IT and business skills training.

Hoover Container guidance

Hoover Container Solutions released talk of Libor plus 550 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year on its $165 million seven-year first-lien term loan that is slated to launch with a bank meeting at 10:30 a.m. ET on Wednesday, a market source said.

The company’s $195 million credit facility also includes a $30 million revolver.

Commitments are due on Jan. 21, the source added.

Macquarie Capital (USA) Inc. is leading the deal that will be used to help fund the buyout of the company by First Reserve.

Hoover Container is a Houston-based provider of chemical tanks, cargo carrying units and related products and services to the energy, petrochemical and related industrial end-markets.

IPC coming soon

IPC scheduled a bank meeting for 10 a.m. ET on Thursday to launch a $925 million credit facility, according to a market source.

The facility consists of a $25 million five-year revolver, a $555 million seven-year first-lien term loan and a $345 million eight-year second-lien term loan, the source said.

Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the roughly $1.2 billion buyout of the company by Centerbridge Partners LP from Silver Lake Partners.

Closing is expected this month, subject to customary conditions and approvals.

IPC is a Jersey City, N.J.-based provider of mission-critical network services and trading communication technology to the financial markets community.

Kaufman on deck

Kaufman Hall & Associates set a bank meeting for 10 a.m. ET on Thursday to launch a $170 million credit facility, a market source remarked.

The facility consists of a $20 million revolver and a $150 million term loan B, the source added.

Barclays and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund the buyout of the company by Madison Dearborn Partners.

Kaufman Hall is a Skokie, Ill.-based consulting firm and provider of software for U.S. not-for-profit health care providers.

Alliant readies loan

Alliant Holdings plans to hold a conference call during the week of Jan. 12 to launch a $360 million add-on first-lien term loan, according to a market source.

Macquarie Capital (USA) Inc. and KKR Capital Markets LLC are leading the deal that will be used to fund acquisitions, the source said.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

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