Duff & Phelps breaks; Insight Global, Angus revise deals; PODS, Alliant accelerate deadlines

By Sara Rosenberg

New York, Jan. 22 – Duff & Phelps Corp. finalized the original issue discount on its tack-on term loan at the wide end of talk and then the debt made its way into the secondary market on Thursday with levels quoted above the issue price.

In other happenings, Insight Global (IG Investments Holdings LLC) lifted pricing on its tack-on term loan, Angus Chemical Co. moved some funds between its U.S. and euro term loans and trimmed spreads, and PODS LLC and Alliant Holdings moved up the commitment deadlines on their deals.

Furthermore, Citgo Holding Inc. came out with price talk on its term loan B in connection with its bank meeting, and Heartland Dental Care LLC revealed original issue discount guidance on its add-on term loan.

Duff & Phelps frees up

Duff & Phelps’ $160 million first-lien tack-on covenant-light term loan due April 23, 2020 began trading on Thursday with levels quoted at 98½ bid, 99 offered, according to a trader.

The tack-on debt was sold at an original issue discount of 98¼, after firming at the wide end of the 98¼ to 98½ guidance, a source remarked.

Pricing on the tack-on term loan is Libor plus 350 basis points with a 1% Libor floor, in line with the existing term loan, and all of the first-lien debt has 101 soft call protection for one year.

The tack-on loan is split between an $80 million funded tranche and an $80 million delayed-draw tranche that will trade as a strip until the delayed-draw term loan funds, the source added.

Credit Suisse Securities (USA) LLC is leading the deal.

Proceeds will be used to fund two acquisitions.

Duff & Phelps is a New York-based financial advisory and investment banking firm.

Insight Global ups spread

Over in the primary, Insight Global raised pricing on its $210 million first-lien tack-on covenant-light term loan (B1/B) due October 2021 to Libor plus 500 bps from Libor plus 475 bps, while keeping the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, a market source said.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a distribution to the sponsor and minority shareholders.

With the tack-on loan, the company is seeking an extension of its existing term loan, and the extended will have 101 soft call protection for one year.

Existing lenders are being offered a 5 bps amendment fee and a 20 bps extension fee.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

Angus reworks deal

Angus Chemical cut its U.S. dollar term loan to $335 million from $355 million, lifted its euro-equivalent term loan to $170 million from $150 million and lowered pricing on the tranches to Libor/Euribor plus 425 bps from Libor/Euribor plus 450 bps, according to a market source.

As before, the term loans have a 1% floor, an original issue discount of 99 and 101 soft call protection for one year.

The company’s $570 million credit facility (B1/B+) also includes a $65 million revolver.

J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used with $225 million of senior notes to help fund the $1,215,000,000 buyout of the company by Golden Gate Capital from the Dow Chemical Co.

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

Angus is a Buffalo Grove, Ill.-based manufacturer and distributor of nitroalkanes and their derivatives.

PODS shutting early

PODS moved up the commitment deadline on its $610 million senior credit facility to noon ET on Tuesday from Jan. 29, according to a market source.

The facility consists of a $50 million revolver (B1/B+), a $390 million seven-year first-lien covenant-light term loan B (B1/B+) and a $170 million eight-year second-lien covenant-light term loan (Caa1/CCC+).

The first-lien term loan is talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked in the Libor plus 850 bps area with a 1% Libor floor, a discount of 98½, and hard call protection of 102 in year one and 101 in year two.

Morgan Stanley Senior Funding Inc., Barclays and Goldman Sachs Bank USA are leading the deal, with Morgan Stanley left lead on the term loan B and Barclays left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by Ontario Teachers’ Pension Plan.

Closing is expected this quarter.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Alliant tweaks deadline

Alliant Holdings accelerated the commitment deadline on its $360 million add-on first-lien term loan to noon ET on Friday from 5 p.m. ET on Friday, according to a market source.

The add-on loan is still talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

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

In connection with the add-on, pricing on the existing first-lien term loan will be increased to Libor plus 400 bps with a 1% Libor floor from Libor plus 325 bps with a 1% Libor floor as the debt is expected to be fungible.

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

Citgo talk emerges

Also on the primary front, Citgo Holding held its bank meeting on Thursday morning, and with the event talk on its $1 billion five-year senior secured first-lien term loan B (B-) was disclosed to be Libor plus 800 bps with a 1% Libor floor and an original issue discount of 96 to 97, a market source said.

As previously reported, the loan is non-callable for one year, then at 102 in year two and 101 in year three.

Deutsche Bank Securities Inc. is leading the deal that will be used with an expected $1.5 billion pari passu high-yield offering to fund a distribution to Citgo Holding’s ultimate parent.

Citgo is a Houston-based refiner, marketer and transporter of gasoline, diesel fuel, jet fuel, lubricants, petrochemicals, and other petroleum-based industrial products.

Heartland reveals OID

Heartland Dental Care launched with an afternoon call its fungible $75 million add-on term loan (B) with original issue discount talk of 99¼, according to a market source.

The add-on is priced at Libor plus 450 bps with a 1% Libor floor, which matches existing term loan pricing.

Commitments are due on Jan. 29.

RBC Capital Markets is leading the deal that will be used to repay all of the company’s outstanding revolver borrowings.

Heartland Dental is an Effingham, Ill.-based provider of office support services to dental offices.

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