UPC Financing Partnership, Coveris Holdings, Polyone break; Broadcom deal updates surface

By Sara Rosenberg

New York, July 29 – UPC Financing Partnership’s term loan AN freed up for trading on Friday above its original issue discount, and Coveris Holdings SA’s add-on term loan broke as well.

Also, PolyOne Corp. modified the issue price on its incremental term loan B, and then the debt made its way into the secondary market too.

And, in more happenings, Broadcom Ltd. increased the size of its term loan B-3, finalized the spread at the low end of guidance and added a pricing step-down, and Omnova Solutions Inc. and inVentiv Health Inc. joined the near-term new issue calendar.

UPC starts trading

UPC Financing Partnership’s $2.15 billion eight-year covenant-light term loan AN hit the secondary market on Friday, with levels quoted at 99¾ bid, par offered, according to a trader.

Pricing on the term loan AN is Libor plus 300 basis points with no floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

On Thursday, the loan was upsized from $825 million and the discount firmed at the tight end of the revised talk of 99.25 to 99.5 and initial talk of 99 to 99.5.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are the global coordinators on the deal and joint bookrunners with Scotiabank, Credit Suisse, HSBC and Nomura. Scotia is the administrative agent.

Proceeds will be used to refinance $675 million of senior secured notes due 2021 and $75 million of senior secured notes due 2022, and due to the upsizing, to refinance a term loan AH.

UPC is a subsidiary of Liberty Global, a TV and broadband company,

Coveris frees up

Coveris’ fungible add-on term loan (B2) due May 8, 2019 also began trading, with the $172.5 million U.S. tranche quoted at 100¼ bid, 101¼ offered, a market source said.

Pricing on the $350 million-equivalent add-on, split between the U.S. tranche and a €160 million tranche, is Libor/Euribor plus 350 bps with a 1% floor, and it was sold at an original issue discount of 99.51.

During syndication, the U.S. and euro tranche sizes firmed up from to be determined, pricing was reduced from Libor/Euribor plus 375 bps, and the discount was tightened from talk of 99 to 99.5.

Currently, the company has a $342.2 million term loan and a €244.7 million term loan, both due May 8, 2019 and priced at Libor/Euribor plus 350 bps with a 1% floor.

Initially, pricing on the existing term loan debt was going to be revised to match the add-on term loan pricing, but because of the recent reverse flex on the add-on loan, no spread change is being made to the existing loans.

Coveris lead banks

Goldman Sachs Bank USA, Credit Suisse International and J.P. Morgan Ltd. are leading Coveris’ term loan that will be used to redeem Coveris Holding Corp.’s 10% senior notes due 2018, to repay some borrowings under the North American and United Kingdom asset-backed revolvers and to pay transaction fees and expenses.

In addition to the add-on loan, the company is amending its existing senior secured term debt to allow for the new loan and the repayment of the notes and to provide more capacity for, among other things, additional debt, restricted payments, dispositions, investments and acquisitions.

Lenders were offered a 25-bps fee for the amendment, which has passed.

Net secured leverage is 2.9 times, and net total leverage is 4.5 times based on LTM first quarter 2016 pro forma adjusted EBIDTA, including synergies, of $358.8 million.

Closing is expected on Aug. 18.

Coveris, a Sun Capital Partners Inc. portfolio company, is a Chicago-based manufacturer and distributor of packaging solutions and coated film technologies.

PolyOne tweaked, breaks

PolyOne changed the issue price on its $100 million incremental senior secured covenant-light term loan B due Nov. 12, 2022 to par from 99.75 and left pricing at Libor plus 275 bps with a 0.75% Libor floor, a market source said.

The spread and floor on the incremental loan matches existing term loan B pricing.

Commitments were due at noon ET on Friday, moved up from noon ET on Wednesday, and by late day, the debt had freed up for trading at 100½ bid, 101 offered, a trader added.

Citigroup Global Markets Inc. is leading the debt that will be used to repay revolver borrowings that were used to fund the acquisitions of Gordon Composites and Polystrand for an aggregate purchase price of $85.5 million.

Closing is expected during the week of Aug. 8.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials, services and solutions.

Broadcom reworked

Another deal to undergo changes was Broadcom, as it raised its term loan B-3 due Feb. 1, 2023 to $6.6 billion from $4.5 billion, firmed pricing at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and added a step-down to Libor plus 275 bps when net total leverage is 1.5 times, according to a market source.

The term loan B-3 still has no floor, a par issue price and 101 soft call protection for six months.

Also, the company set the size of its add-on term loan A at $2.5 billion, compared to talk at launch of at least $2 billion, the source said.

Bank of America Merrill Lynch is leading the deal that will be used to refinance a portion of the company’s existing term loan B-1.

Broadcom, formerly Avago Technologies Ltd., is a designer, developer and supplier of a range of semiconductor devices based in San Jose, Calif., and Singapore.

Omnova readies loan

Looking ahead, Omnova Solutions emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $350 million term loan B, according to a market source.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, KeyBanc Capital Markets and Jefferies Finance LLC are leading the deal that will be used to refinance an existing term loan and senior notes.

Omnova is a Beachwood, Ohio-based innovator of performance-enhancing chemistries and surfaces for a variety of commercial, industrial and residential end uses.

inVentiv on deck

inVentiv scheduled a bank meeting for 3 p.m. ET on Monday to launch a new credit facility led by Citigroup Global Markets Inc., a market source said.

Details on the transaction were not available, but in late June, the company said in an S-1/A filed with the Securities and Exchange Commission that it plans on getting a new term loan B-5 due in 2023 that would have 101 soft call protection for six months.

The company also disclosed in the filing that it intends to amend its ABL revolver to extend the maturity to 2021 and increase the commitments, and that pricing on the amended ABL revolver is expected to range from Libor plus 150 bps to 200 bps based on excess availability.

Proceeds from the term loan B-5 and from a proposed initial public offering of common stock would be used to prepay all of the company’s $575.3 million of existing term loans outstanding, and to redeem its $625 million of 9% senior secured notes due 2018 and $579.8 million 10%/12% junior lien secured notes due 2018.

inVentiv is a Burlington, Mass.-based provider of clinical, consulting and commercial services to the health care industry.

Grosvenor plans call

Grosvenor Capital Management set a lender call for noon ET on Monday to launch an extension of the maturity of its term loan B to August 2023 from January 2021, according to a market source.

Goldman Sachs & Co. is leading the deal.

Grosvenor Capital is a Chicago-based independent alternative asset management firm.

Adient closes

In other news, Adient Global Holdings Ltd. closed on its $3 billion senior secured credit facility (BBB) that consists of a $1.5 billion revolver and a $1.5 billion five-year term loan, a news release said.

Pricing on the credit facility is Libor plus 175 bps.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc. and Credit Agricole Corporate and Investment Bank led the deal that is being done in connection with the company’s spinoff from Johnson Controls Inc.

Proceeds will be used, along with $2 billion of senior unsecured notes, to fund a $3 billion distribution to Johnson Controls, with the remaining $500 million in cash to be held by Adient for general corporate purposes.

Adient is a London-based automotive seating and interiors company.

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