On Assignment breaks; Informatica, Sage Products revisions emerge; SBA, Sonneborn set talk

By Sara Rosenberg

New York, June 1 – On Assignment Inc.’s credit facility made its way into the secondary market during Monday’s session, with the term loan B seen trading above its original issue discount.

Over in the primary market, Informatica Corp. upsized its U.S. term loan B with a bond downsizing and tightened spreads and original issue discounts on the U.S. loan as well as on its euro loan, and Sage Products Holdings III LLC added an add-on term loan to its first-lien repricing proposal.

SBA Senior Finance II and Sonneborn LLC disclosed talk with launch, timing surfaced on the Zep Inc. buyout credit facility, and Academy Ltd. (Academy Sports + Outdoors), Liquid Web and Methanol Holdings (Trinidad) Ltd. emerged with new deal plans.

On Assignment frees up

On Assignment’s credit facility broke for trading on Monday, with the $825 million seven-year covenant-light term loan B quoted at 99 7/8 bid, 100 3/8 offered and then it moved up to 100 1/8 bid, 100 5/8 offered, according to a trader.

Pricing on the term loan is Libor plus 300 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

The company’s $975 million credit facility (Ba2/BB) also includes a $150 million revolver.

During syndication, the term loan was downsized from $875 million and pricing was trimmed from Libor plus 350 bps, and the revolver was upsized from $100 million.

Wells Fargo Securities LLC is leading the deal that will be used to fund the acquisition of Creative Circle LLC for $540 million in cash and $30 million of common stock and to refinance existing debt.

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

On Assignment is a Calabasas, Calif.-based provider of diversified professional staffing solutions. Creative Circle is a digital/creative staffing firm.

Informatica reworked

Moving to the primary market, Informatica raised its U.S. dollar seven-year covenant-light term loan B to $1,705,000,000 from $1,605,000,000 as its bond offering was reduced to $650 million from $750 million, a market source remarked.

In addition, pricing on the U.S. term loan and on the company’s €250 million seven-year covenant-light term loan B was lowered to Libor/Euribor plus 350 bps from Libor/Euribor plus 375 bps, and the original issue discount on the debt was revised to 99.75 from 99.5, while the 1% floor and 101 soft call protection for six months were unchanged, the source continued.

The euro term loan was added to the deal last week, at which time, the U.S term loan was downsized from an originally proposed amount of $1,875,000,000.

The company’s now $2,125,000,000 senior secured credit facility (B2/B) also includes a $150 million revolver.

Commitments were due at 5 p.m. ET on Monday, the source added.

Informatica being acquired

Proceeds from Informatica’s credit facility, bonds and about $2,542,000,000 in equity will be used to fund its buyout by Permira funds and Canada Pension Plan Investment Board for $48.75 in cash per share. The transaction is valued at $5.3 billion.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Morgan Stanley Senior Funding Inc., Nomura Securities International Inc., RBC Capital Markets LLC and Deutsche Bank Securities Inc. are the leads on the credit facility.

Closing is targeted for the second or third quarter, subject to shareholder and regulatory approval.

Informatica is a Redwood City, Calif., provider of enterprise data integration software and services.

Sage seeks incremental

Sage is now asking lenders to commit to a $25 million add-on first-lien term loan due Dec. 13, 2019 that is talked at Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

The add-on is being done with the repricing of the company’s roughly $551 million first-lien term loan due Dec. 13, 2019 that launched on May 20.

As before, the repricing is talked at Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, and will take current pricing down from Libor plus 400 bps with a 1% Libor floor.

Proceeds from the add-on will be used to repay a portion of the company’s second-lien term loan debt.

Leverage through the first-lien is 4.1 times, total leverage is 5.8 times and net total leverage is 5.7 times.

Signatures pages were due at 5 p.m. ET on Monday, the source added.

Sage Products is a Cary, Ill.-based developer of products primarily for hospital intensive care units, which help prevent hospital-acquired conditions.

SBA reveals talk

SBA Senior Finance held its call on Monday morning, launching its $500 million seven-year incremental senior secured term loan B with talk of Libor plus 250 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on Friday and closing is expected on June 10, the source said.

Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to repay revolver borrowings.

SBA Senior Finance is a subsidiary of SBA Communications Corp., a Boca Raton, Fla.-based owner and operator of wireless communications infrastructure.

Sonneborn discloses guidance

Sonneborn came out with talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on the repricing of its $279.3 million first-lien term loan, a source remarked.

The repricing will take the first-lien term loan down from Libor plus 450 bps with a 1% Libor floor.

Commitments are due on June 8, the source added.

Macquarie Capital (USA) Inc. is leading the deal.

Sonneborn is a Parsippany, N.J.-based manufacturer and supplier of high-purity specialty hydrocarbons.

Zep sets timing

ZEP nailed down timing on the launch of its previously announced $402.5 senior secured credit facility, with the bank meeting scheduled to take place at noon ET on Wednesday, according to a market source.

The facility consists of a $42.5 million five-year revolver and a $360 million seven-year term loan B.

Filings with the Securities and Exchange Commission have outlined expected revolver pricing at Libor plus 525 bps with two 25 bps step-downs based on net first-lien leverage and a 50 bps undrawn fee that can step-down to 37.5 bps based on net first-lien leverage, and expected term loan pricing at Libor plus 525 bps with a 25 bps step-down based on net first-lien leverage and a 1% Libor floor.

Jefferies Finance LLC, KeyBanc Capital Markets Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with $382.5 million in equity to fund the buyout of the company by New Mountain Capital LLC for $20.05 per share in cash. The transaction is valued at about $692 million, including net debt.

Zep is an Atlanta-based consumable chemical packaged goods company.

Academy coming soon

Academy set a lender call for 1 p.m. ET on Tuesday to launch a $2,475,000,000 credit facility that consists of a $650 million ABL revolver and a $1,825,000,000 term loan B, a market source said.

J.P. Morgan Securities LLC is the left lead arranger on the revolver and Morgan Stanley Senior Funding Inc. is the left lead arranger on the term loan.

Academy, a Katy, Texas-based sports, outdoor and lifestyle retailer, will use new credit facility to refinance all of its existing debt.

Liquid Web readies deal

Liquid Web plans to hold a bank meeting at 10 a.m. ET on Thursday to launch a $120 million credit facility, according to a market source.

The facility consists of a $20 million revolver, and a $100 million six-year term loan B talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source said.

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

Total leverage is 4.3 times, the source added.

Closing is expected this summer, subject to customary conditions.

Liquid Web is a Lansing, Mich.-based provider of professional web hosting and managed cloud services.

Methanol Holdings on deck

Methanol Holdings scheduled a bank meeting for Tuesday to launch a $600 million credit facility, a market source said.

The facility consists of a $300 million five-year revolver and a $300 million seven-year term loan B, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Methanol Holdings is a Trinidad-based producer, marketer and distributor of methanol.

MJ Acquisition closes

In other news, MJ Acquisition Corp., a joint venture between Select Medical Holdings Corp. and Welsh, Carson, Anderson & Stowe, completed its acquisition of health care company Concentra Inc. from Humana Inc. for about $1,055,000,000 in cash, a news release said.

To help fund the transaction, MJ Acquisition got a new $700 million credit facility that includes a $50 million five-year revolver (Ba3/BB-), a $450 million seven-year term loan B (Ba3/BB-) and a pre-placed $200 million second-lien term loan (Caa1/B-).

The term loan B is priced at Libor plus 300 bps with a 1% Libor floor, and was sold at an original issue discount of 99.75. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was cut from talk of Libor plus 350 bps to 375 bps, the discount was tightened from 99.5, and the call protection was extended from six months.

J.P. Morgan Securities LLC led the deal.

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