Misys, Nautilus, TierPoint, Vizient, Material Handling, Orion Engineered, PAE Holding break

By Sara Rosenberg

New York, April 28 – Misys Ltd. upsized its U.S. second-lien term loan and terminated plans for a euro second-lien term loan, and Nautilus Power LLC raised pricing on its revolver and term loan B, and then both of these deals freed up for trading on Friday.

Other transactions to make their way into the secondary market included TierPoint LLC, Vizient Inc., Material Handling Systems Inc., Orion Engineered Carbons and PAE Holding Corp.

Back in the primary market, Everi Payments Inc. set the spread on its term loan at the low side of talk and tightened the original issue discount, and Charter NEX US Inc. is getting ready to bring its buyout deal to market.

Misys restructures again

Misys increased its U.S. eight-year covenant-light second-lien term loan to $1,245,000,000 from $980 million and cancelled plans for a €250 million eight-year covenant-light second-lien term loan to optimize its currency exposure profile, according to a market source.

Pricing on the U.S. second-lien term loan is Libor plus 725 basis points with a 1% Libor floor and an original issue discount of 99, and the debt has hard call protection of 102 in year one and 101 in year two.

The eliminated euro second-lien term loan was talked at Euribor plus 700 bps with a 1% floor and a discount of 99, and included hard call protection of 102 in year one and 101 in year two as well.

Earlier in syndication, the U.S. second-lien term loan was upsized from $850 million, the spread was lowered from talk of Libor plus 775 bps to 800 bps and the discount was modified from 98.5, and, the now eliminated euro second-lien term loan had been downsized from €280 million, pricing was reduced from revised talk of Euribor plus 725 bps and initial talk in the range of Euribor plus 725 bps to 750 bps, and the discount had been set at the tight end of revised talk of 98.5 to 99 and tighter than initial talk of just 98.5.

Misys frees up

With final terms in place, Misys’ credit facilities began trading on Friday, with the U.S. second-lien term loan quoted at 102 bid, 103 offered and a $3,582,000,000 seven-year covenant-light first-lien term loan B quoted at par 3/8 bid, par 5/8 offered, a trader said.

Pricing on the first-lien term loan is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The company is getting an €850 million seven-year covenant-light first-lien term loan B as well, which is priced at Euribor plus 325 bps with a 1% floor, and was issued at a discount of 99.5. This loan has 101 soft call protection for six months.

During syndication, the U.S. first-lien loan was upsized from a revised amount of $3.42 billion and an initial amount of $3.12 billion and pricing was set at the low end of the Libor plus 350 bps to 375 bps talk, the euro first-lien loan was downsized from €1 billion, pricing was cut from talk of Euribor plus 400 bps to 425 bps and the floor was increased from 0%, and the discount on both first-lien loans firmed at the tight end of the 99 to 99.5 talk.

The term loans have a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Misys revolver

Misys is also getting a $400 million five-year multi-currency revolver priced at Libor plus 350 bps with a 0% Libor floor as part of its new credit facilities.

Revolver pricing finalized during syndication at the low end of the Libor plus 350 bps to 375 bps talk.

Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading the debt, with Morgan Stanley left lead on the U.S. term loan B, Citi left lead on the euro term loan B and Barclays left lead on the second-lien debt.

Proceeds will be used with preferred equity and equity to fund the acquisition of DH Corp., a Toronto-based financial technology provider, for C$25.50 per share in cash, including the assumption of all debt obligations, for a total enterprise value of about C$4.8 billion, and to refinance existing debt.

The recent upsizing to the credit facilities were used to eliminate a planned super holdco term loan.

Closing is expected during the week of June 12, subject to court approval, the approval of DH’s shareholders and other customary conditions.

Misys, a Vista Equity Partners portfolio company, is a London-based provider of financial services software.

Nautilus flexes, breaks

Nautilus Power lifted the spread on its $575 million seven-year first lien term loan B to Libor plus 450 bps from talk of Libor plus 400 bps to 425 bps, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source remarked.

The company’s $650 million in senior secured credit facilities (B1/B+) also include a $75 million five-year revolver priced at Libor plus 450 bps with a 0% Libor floor, after flexing from talk of Libor plus 400 bps to 425 bps.

Commitments were due at 4:30 p.m. ET on Friday and then the debt began trading, with the term loan B quoted at 99 3/8 bid, 99 5/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to recapitalize the business in connection with Carlyle Power Partners’ acquisition, including the refinancing of existing debt.

Closing is expected on Thursday.

Nautilus is a Massachusetts-based wholesale power generation and marketing company.

TierPoint levels surface

Another deal to emerge in the secondary market was TierPoint, with the $700 million seven-year covenant-light first-lien term loan (B2/B+/BB) quoted at par 3/8 bid, par 7/8 offered and the $220 million eight-year covenant-light second-lien loan (Caa2/CCC+/B-) quoted at par bid, 101 offered, according to sources.

Pricing on the first-lien term loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor, and was issued at a discount of 99. This loan has call protection of 102 in year one and 101 in year two, with the ability to redeem all of the debt with proceeds from a bond offering at 101 in the first year.

During syndication, pricing on the first-lien term loan was raised from talk of Libor plus 325 bps to 350 bps and the spread on the second-lien loan firmed at the low end of the Libor plus 725 bps to 750 bps talk.

TierPoint refinancing

Proceeds from TierPoint’s $1,095,000,000 in credit facilities, which also include a $175 million five-year revolver, will be used to refinance existing loans.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Fifth Third, ING, Barclays, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal, with RBC left on the first-lien and Credit Suisse left on the second-lien.

TierPoint is a St. Louis-based provider of hybrid IT solutions.

Vizient frees to trade

Vizient’s $1,122,000,000 term loan B (B1/B+) due Feb. 13, 2023 broke during the session, with levels quoted at par ½ bid, 101¼ offered, a trader remarked.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Barclays 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.

Vizient is an Irving, Texas-based network of not-for-profit health care organizations.

Material Handling breaks

Material Handling’s credit facilities freed to trade, with the $240 million seven-year first-lien term loan B seen at 99¼ bid, 99¾ offered, according to a trader.

Pricing on the term loan is Libor plus 500 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The loan has 101 soft call protection for one year and MFN for life.

The company’s $265 million in credit facilities (B2/B) also include a $25 million revolver.

RBC Capital Markets is leading the deal that will be used to help fund the buyout of the company by T.H. Lee.

Closing is expected on Monday.

Material Handling Systems is a Louisville, Ky.-based provider of advanced parcel sortation systems, engineering, software controls, and equipment manufacturing for many of the top logistics and e-Commerce companies in the world.

Orion starts trading

Orion Engineered Carbons’ $291 million first-lien senior secured term loan B due July 2021 freed up as well, with levels quoted at par bid, par ½ offered, a market source said.

The term loan is priced at Libor plus 250 bps with a 0% Libor floor and was issued at a discount of 99.875. The loan includes 101 soft call protection for six months.

The company is also getting a €334 million first-lien senior secured term loan B due July 2021 priced at Euribor plus 275 bps with a 0% floor and sold at an original issue discount of 99.875. This loan has 101 soft call protection for six months too.

On Thursday, pricing on the U.S. loan was cut from Libor plus 275 bps, pricing on the euro loan was trimmed from Euribor plus 300 bps, and the discount on both loans was set at the wide end of the 99.875 to par talk.

Goldman Sachs Bank USA is leading the deal that will be used to reprice existing U.S. and euro term loan B debt from Libor/Euribor plus 300 bps with a 0.75% floor.

Orion Engineered Carbons is a Frankfurt-based producer of carbon black.

PAE tops OID

PAE Holding’s $95 million incremental first-lien term loan B (B2) due 2022 also began trading, with the debt quoted at par bid, a trader remarked.

Pricing on the first-lien term loan is Libor plus 550 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75 after tightening during syndication from 99.5. The loan has 101 soft call protection until October.

In addition, the company is getting a $58 million incremental second-lien term loan (Caa2) due 2023 priced at Libor plus 950 bps with a 1% Libor floor, and issued at discount of 99, after being revised from initial talk of 98.5 during syndication. This tranche has hard call protection of 102 until October and 101 for the following year.

Bank of America Merrill Lynch, Citizens Bank and Morgan Stanley Senior Funding Inc. are leading the $153 million in incremental term loans that will be used to fund the acquisition of FCi Federal.

Closing is subject to regulatory approval.

PAE, a portfolio company of Platinum Equity, is an Arlington, Va.-based provider of support services for the U.S. government, its allied partners and international organizations. FCi is an Ashburn, Va.-based provider of essential services for immigration and national security.

Everi updates pricing

Returning to the primary market, Everi Payments set pricing on its $820 million seven-year senior secured first-lien term loan at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, and moved the original issue discount to 99.5 from 99, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s $855 million in credit facilities (B+) also include a $35 million five-year revolver.

Allocations are targeted for Monday afternoon, the source said.

Jefferies Finance LLC is leading the deal that will be used to refinance a roughly $462.3 million first-lien term loan due 2020 and $335 million of senior secured notes due 2021.

Everi Payments is a Las Vegas-based provider of video and mechanical reel gaming content and solutions, integrated gaming payment solutions and compliance and efficiency software solutions.

Charter NEX on deck

Charter NEX set a bank meeting for Tuesday to launch a $660 million in credit facilities, according to a market source.

The facilities consist of a $75 million revolver and a $585 million seven-year first-lien term loan that has 101 soft call protection for six months, the source said.

Jefferies Finance LLC and Nomura are leading the deal.

The new credit facilities will be used to help fund the buyout of the company by Leonard Green & Partners LP from Pamplona Capital Management.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

Industrial Container closes

In other news, the buyout of Industrial Container Services LLC by Centerbridge Partners LP from Aurora Capital Group has been completed, according to a news release.

To help fund the transaction, Industrial Container Services got $465 million in credit facilities (B2/B) that include a $40 million revolver and a $425 million seven-year first-lien term loan, of which $360 million is funded and $65 million is delayed-draw.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 400 bps to 425 bps talk.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Jefferies Finance LLC led the deal.

Industrial Container is a Maitland, Fla.-based provider of steel industrial container reconditioning services.

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