Allison Transmission breaks; TransUnion up with IPO; Boyd, Mitel Networks set price talk

By Sara Rosenberg

New York, March 31 – Allison Transmission Inc.’s add-on term loan B-3 hit the secondary market on Tuesday with levels quoted above its original issue discount, and TransUnion’s term loan was stronger as the company filed for an initial public offering.

Over in the primary market, Boyd Corp. and Mitel Networks Corp. revealed price talk with launch, and Communications Sales & Leasing Inc. joined this week’s calendar.

Allison frees up

Allison Transmission’s $470 million senior secured add-on first-lien term loan B-3 (Ba2/BB+/BB) due Aug. 23, 2019 broke for trading on Tuesday with levels quoted at par bid, par ½ offered, according to a trader.

Pricing on the add-on loan is Libor plus 250 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99¾. The add-on, as well as the existing term loan B-3, are getting 101 soft call protection for six months.

The existing term loan B-3 was quoted at par 1/8 bid, par 5/8 offered during the session, the trader said.

During syndication, the new loan was restructured as a fungible add-on to the existing term loan B-3 from an incremental term loan B-4, pricing was lowered from talk of Libor plus 275 bps to 300 bps and the discount was tightened from 99½.

Allison lead banks

Citigroup Global Markets Inc., Barclays, Fifth Third Bank, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Goldman Sachs Bank USA, BMO Capital Markets Corp., Mitsubishi UFJ Securities (USA) Inc. and Sumitomo Mitsui are leading Allison Transmission’s add-on term loan.

Proceeds will be used to fund a tender offer for the company’s 7 1/8% senior notes due 2019.

Closing on the add-on term loan is targeted for April 7.

Allison Transmission is an Indianapolis-based automatic transmission company.

TransUnion inches up

Also in trading, TransUnion’s term loan was better as the company filed for an initial public offering of shares of common stock, according to a trader.

The term loan was quoted at par bid, par 3/8 offered, up from 99 7/8 bid, par 1/8 offered, the trader remarked.

Proceeds from the IPO will be used to redeem 9 5/8% senior notes.

TransUnion is a Chicago-based provider of information management and risk management services.

Boyd talk emerges

Moving to the primary, Boyd held its bank meeting on Tuesday, and with the event, talk on its first- and second-lien term loans was announced, according to a market source.

The $365 million seven-year first-lien term loan is talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and the $142 million eight-year second-lien term loan is talked at Libor plus 875 bps with a 1% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $557 million credit facility also includes a $50 million five-year revolver.

Commitments are due on April 14, the source added.

UBS AG, RBC Capital Markets and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by Genstar Capital.

Boyd is a Modesto, Calif.-based manufacturer and supplier of custom fabricated sealing and energy management components for OEMs.

Mitel discloses guidance

Mitel Networks released talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $650 million seven-year first-lien term loan B that launched with a bank meeting, a market source said.

By comparison, in early March, the company said in an 8-K filed with the Securities and Exchange Commission that pricing on the term loan was expected at Libor plus 450 bps with a 1% Libor floor.

Along with the term loan B, the company’s $700 million senior secured credit facility (Ba3/B+) includes a $50 million five-year revolver.

Commitments are due at noon ET on April 9, the source added.

Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are leading the deal.

Mitel buying Mavenir

Proceeds from Mitel’s credit facility, along with cash on hand, will be used to fund the acquisition of Mavenir Systems Inc. in a cash and stock deal valued at about $560 million and to refinance existing credit facilities at both companies.

Mavenir stockholders are entitled to elect to receive either all-cash or all-stock consideration for each share of Mavenir common stock, subject to proration, in either case with a value of $11.08 plus 0.675 of a Mitel common share, or $17.94 based on the closing price of a Mitel common share on Feb. 27.

Closing is expected in late April, subject to the tender of a majority of Mavenir’s common stock, regulatory and stock exchange approvals and other customary conditions.

Net leverage will be about 3.2 times trailing adjusted EBITDA.

Mitel is a Kanata, Ont.-based provider of cloud- and premises-based unified communications software services. Mavenir is a Richardson, Texas-based provider of software-based networking services for mobile carriers.

Communications Sales on deck

Communications Sales & Leasing set a bank meeting for 10 a.m. ET on Wednesday to launch a $2.5 billion credit facility, according to sources.

The facility consists of a $500 million five-year revolver, and a $2 billion 7½-year term loan 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, sources said.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used to help fund the company’s spin-off from Windstream Holdings Inc.

Windstream expects to distribute about 80.1% of Communications Sales & Leasing shares on April 24, to Windstream shareholders of record as of 5 p.m. ET on April 10, subject to customary closing conditions, including financing.

Communications Sales & Leasing is a real estate investment trust that owns fiber and copper network and other fixed real estate assets.

Travel Leaders allocates

In other news, Travel Leaders Group LLC allocated its $78.5 million add-on first-lien term loan (B1/B+) due Dec, 5, 2020, according to a market source.

The add-on loan is priced at Libor plus 600 bps with a 1% Libor floor, and was sold at an original issue discount of 99½.

UBS AG is leading the deal that will be used to fund a dividend.

Travel Leaders is a Plymouth, Minn.-based travel agency company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.