Science Applications frees to trade; Duff & Phelps updates terms; Thryv shelves deal

By Sara Rosenberg

New York, March 5 – Science Applications International Corp. lifted pricing on its incremental term loan B and widened the original issue discount, and then the debt made its way into the secondary market on Thursday.

In other news, Duff & Phelps set the spread on its U.S. term loan at the low end of revised talk and the spread on its euro term loan at the high end of revised talk, and extended the call protection on both tranches, and Thryv Inc. postponed its credit facilities transaction.

Science Applications revised

Science Applications raised pricing on its $600 million seven-year incremental senior secured covenant-lite term loan B (Ba1/BB+) to Libor plus 225 basis points from Libor plus 200 bps, a market source remarked.

Additionally, in the morning the original issue discount talk on the term loan was changed to a range of 99 to 99.5 from 99.5, and in the afternoon the discount finalized at 99, the source continued.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Commitments were due at noon ET on Thursday.

Citigroup Global Markets Inc., BofA Securities, Inc., MUFG, PNC, SunTrust Robinson Humphrey Inc., U.S. Bank and Wells Fargo Securities LLC are leading the deal.

Science Applications breaks

On Thursday afternoon, Science Applications’ incremental term loan B began trading, with levels quoted at 99¼ bid, 99¾ offered, another source added.

The new loan will be used with $400 million of notes and cash on hand to fund the $1.2 billion acquisition of Unisys Federal, a provider of infrastructure modernization, cloud migration, managed services, and enterprise IT-as-a-service through scalable and repeatable solutions to U.S. federal civilian agencies and the Department of Defense.

Closing is expected by May 1, subject to customary conditions, including HSR regulatory clearance.

Net leverage is expected to be around 4.5x at close.

Science Applications is a Reston, Va.-based technology integrator.

Duff & Phelps tweaked

Duff & Phelps finalized pricing on its $1.225 billion seven-year first-lien term loan at Libor plus 375 bps, the tight side of revised talk of Libor plus 375 bps to 400 bps and higher than initial talk of Libor plus 350 bps, and firmed pricing on its €300 million seven-year first-lien term loan at Euribor plus 400 bps, the wide end of revised talk of Euribor plus 375 bps to 400 bps and higher than initial talk of Euribor plus 350 bps, according to a market source.

Furthermore, the 101 soft call protection on the term loans was pushed out to one year from six months and changes to the credit agreement were posted.

The U.S. term loan has a 1% Libor floor, the euro term loan has a 0% floor, and both term loans have an original issue discount of 99 and a ticking fee of half the spread for days 31 to 60 and the full spread onwards.

Previously in syndication, the Libor floor on the U.S. term loan was increased from 0% and the original issue discount on both term loans widened from 99.5.

The company’s $1.75 billion equivalent of credit facilities (B2/B-) also include a $200 million revolver.

Duff & Phelps leads

Goldman Sachs Bank USA, UBS Investment Bank, BofA Securities, Inc., Morgan Stanley Senior Funding Inc., Stone Point Capital Markets, KKR Capital Markets, Capital One and Credit Suisse Securities (USA) LLC are leading Duff & Phelps’ credit facilities.

Recommitments were due at 4 p.m. ET on Wednesday, the source added.

The new debt will be used to help fund the buyout of the company by Stone Point Capital and Further Global from the Permira funds for $4.2 billion. Permira will continue to hold a significant stake in the company.

Closing is expected in the second quarter.

Duff & Phelps is a New York-based independent adviser with expertise in the areas of valuation, corporate finance, disputes and investigations, compliance and regulatory matters, and other governance-related issues.

Thryv tables deal

Thryv postponed its $1.06 billion of credit facilities because of market conditions, according to a news release.

The credit facilities consisted of a $200 million ABL revolver, and an $860 million five-year first-lien term loan talked at Libor plus 850 bps with a 1% Libor floor, an original issue discount of 98.5 and call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC was leading the deal that was going to fund a potential acquisition of a non-U.S. entity and refinance existing debt.

The company said that it will seek to pursue the acquisition at a yet to be determined date in the future, subject to more favorable market conditions.

Thryv is a Dallas-based provider of local small business lead generation solutions and management software.

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