WASH, ConvergeOne break; TTM Technologies, Leighton, Cinemark deal revisions surface

By Sara Rosenberg

New York, May 4 – WASH Multifamily Laundry Systems LLC’s credit facility hit the secondary market on Monday, with the first- and second-lien term loans quoted above their original issue discounts, and ConvergeOne Holdings Corp. freed up as well.

Switching to the primary market, TTM Technologies Inc. moved some funds between its first- and second-lien term loans while tightening the original issue discount and extending the call protection on the first-lien debt, and Leighton Services (LS Deco LLC) trimmed pricing on its U.S. and Australian term loans.

Also, Cinemark USA Inc. lowered the upfront fee on its term loan B maturity extension request, Learning Care Group and PSAV Presentation Services released talk with launch, and Physio-Control International Inc., Horizon Global Corp. and JBS USA LLC joined this week’s calendar.

WASH tops par

WASH Multifamily Laundry Systems’ credit facility broke for trading on Monday, with the $505 million seven-year first-lien covenant-light term loan B quoted at par ½ bid, 101 offered and the $120 million eight-year second-lien covenant-light term loan quoted at par ½ bid, 101½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 325 basis points with a 25 bps step-down at 3.75 times net first-lien leverage and a 1% Libor floor, and it was sold at an original issue discount of 99¾. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 700 bps with a 1% Libor floor and was issued at a discount of 99¼. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $475 million, pricing was lowered from talk of Libor plus 350 bps to 375 bps, and the discount tightened from 99½. The second-lien term loan was downsized from $150 million, the spread was flexed from Libor plus 750 bps, and the discount was changed from 99.

WASH lead banks

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Natixis Securities NA Inc. are leading WASH’s $685 million senior secured credit facility, which also includes a $60 million five-year revolver.

Proceeds will be used to help fund the buyout of the company by EQT Infrastructure II Fund from CHS Capital LLC, which is expected to close in mid-May.

WASH is an El Segundo, Calif.-based provider of common room laundry services to multifamily apartments and universities.

ConvergeOne frees up

ConvergeOne’s $50 million tack-on first-lien term loan due June 2020 began trading too, with levels quoted at par bid, par ¾ offered, a trader said.

Pricing on the tack-on loan is Libor plus 500 bps with a 1% Libor floor, in line with the existing first-lien term loan, and it was sold at an original issue discount of 99½. The tack-on loan and the existing debt have 101 soft call protection through June.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund two acquisitions and for general corporate purposes.

ConvergeOne is an Eagan, Minn.-based provider of data, communications, collaboration and customer interaction solutions and managed services.

TTM reworks deal

Moving to the primary, TTM Technologies raised its six-year first-lien term loan to $850 million from $775 million, modified the original issue discount to 96.5 from the 95 area, extended the 101 soft call protection to one year from six months and sweetened the amortization to 1% in year one, 4% in year two and 5% thereafter, from 1% per annum, according to a market source. Pricing was unchanged at Libor plus 500 bps with a 1% Libor floor.

With the first-lien term loan upsizing, the company’s seven-year second-lien term loan was reduced to $100 million from $175 million, the source said.

Recommitments were due at 3 p.m. ET on Monday.

J.P. Morgan Securities LLC and Barclays are leading the deal that will be used to help fund the acquisition of Viasystems Group Inc. and refinance existing debt at both companies.

Closing on the acquisition is expected this quarter, subject to regulatory approvals.

TTM Technologies is a Costa Mesa, Calif.-based printed circuit board manufacturer. Viasystems is a St. Louis-based provider of complex multi-layer printed circuit boards and electro-mechanical solutions.

Leighton changes emerge

Leighton Services lowered pricing on its roughly $350 million seven-year covenant-light term loan B to Libor plus 450 bps from Libor plus 475 bps and kept the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, according to a market source.

Additionally, pricing on the roughly A$353.7 million seven-year covenant-light term loan B was flexed to BBSY plus 550 bps from BBSY plus 575 bps, the source said. This tranche still has no floor, a discount of 99 and 101 soft call protection for six months.

Furthermore, the excess cash flow sweep was updated to 50% with step-downs to 25% at 1.75 times net first-lien leverage, modified from 2 times, and 0% at 1.5 times net first-lien leverage, and the EBIDTA definition was revised to add a 20% maximum cap on add-backs for calculation of EBITDA and a limitation of an 18-month horizon on those add-backs, versus no limit on restructuring add-backs previously, the source continued.

Leighton getting revolver

Along with the U.S. and Australian term loans, Leighton Services’ A$900 million-equivalent senior secured credit facility (Ba2/BB+) includes a A$100 million five-year revolver.

Final commitments are due at noon ET on Tuesday, the source added.

Barclays, Credit Agricole, ANZ and Goldman Sachs are leading the deal that is being used to finance the recently completed formation of Leighton Services, a 50-50 investment partnership with Leighton Holdings and Apollo Global Management LLC for Leighton’s merged operations and maintenance services businesses, and to fund a letter-of-credit cash collateral facility.

Net first lien and net total leverage is 2 times.

Leighton Services is a provider of industrial and civil services to clients in Australia and New Zealand across telecom, roads, water, power, utilities and environmental sectors.

Cinemark trims fee

Cinemark cut the upfront fee on its proposed extended roughly $684.3 million term loan B to 25 bps from 50 bps and asked for recommitments by 5 p.m. ET on Monday, a market source said.

The company is looking to extend the term loan to a seven-year maturity from the current Dec. 18, 2019 maturity, and the extended loan will have 101 soft call protection for six months.

Pricing on the term loan B will remain at Libor plus 300 bps with no Libor floor.

Barclays, Morgan Stanley Senior Funding, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the deal.

Cinemark is a Plano, Texas-based motion picture exhibitor.

Learning Care holds call

Also in the primary, Learning Care Group held a call at 11 a.m. ET on Monday, launching a repricing of its $317 million term loan with talk of Libor plus 400 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, a source remarked.

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

Goldman Sachs Bank USA is leading the deal.

Learning Care Group is a Novi, Mich.-based provider of early education and childcare services.

PSAV launches

PSAV Presentation Services launched with an afternoon call a $165 million add-on term loan B (B1) with talk of Libor plus 350 bps with a 1% Libor floor, in line with the existing term loan B, and an original issue discount of 99.5, according to a market source.

Commitments are due on May 11, the source continued.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Barclays and Macquarie Capital are leading the deal that will be used to fund a dividend.

PSAV is a Long Beach, Calif.-based provider of audiovisual equipment and event technology support to the hotel, conference and event industry.

Physio plans meeting

Physio-Control set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a new loan, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

Physio-Control is a Redmond, Wash.-based developer, manufacturer, seller and servicer of external defibrillator/monitors and emergency medical response products and services.

Horizon Global on deck

Horizon Global scheduled a bank meeting for Tuesday to launch a $315 million credit facility, according to sources.

The facility consists of a $100 million asset-based revolver and a $215 million seven-year term loan B (B2/B), sources said.

JPMorgan, BMO Capital Markets and Wells Fargo Securities are leading the deal that will be used to fund a cash distribution to TriMas Corp. in connection with Horizon’s spin-off from TriMas.

Horizon Global is a Bloomfield Hills, Mich.-based manufacturer and distributor of towing, trailer and cargo management products for the automotive market.

JBS coming soon

JBS USA will hold a call on Tuesday to launch roughly $901 million of term loans talked at Libor plus 250 bps with a 0.75% Libor floor and 101 soft call protection for one year, a market source said.

The debt consists of a roughly $493 million term loan due in 2020 that is offered at par and a roughly $408 million term loan due in 2022 that is offered at an original issue discount of 99.5, the source continued.

JPMorgan is leading the deal that will be used to refinance existing debt.

JBS is a Greeley, Colo.-based beef, pork and lamb processing company.

Epiq Systems closes

In other news, Epiq Systems Inc. completed its $75 million term loan B due August 2020 that was used to fund its acquisition of Iris Data Services, a provider of managed services for electronic discovery, a news release said.

Pricing on the loan is Libor plus 375 bps with a 0.75% Libor floor, and it was issued at a discount of 99½.

KeyBanc Capital Markets LLC, PNC Bank and Silicon Valley Bank led the deal.

Epiq Systems is a Kansas City, Kan.-based provider of technology-enabled solutions for electronic discovery, bankruptcy and class action administration.

Post completes loan

Post Holdings Inc. closed on its fungible $700 million incremental secured term loan B (Ba2) due June 2, 2021, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the incremental term loan is Libor plus 300 bps with a 0.75% Libor floor, in line with the company’s existing $881 million term loan B, and the new debt was sold at an original issue discount of 99½, after tightening during syndication from 99. The loan has 101 soft call protection for six months.

Credit Suisse Securities and Barclays led the deal that was used to help fund the purchase of MOM Brands Co. for $1.05 billion in cash and the issuance of about 2.45 million shares of Post common stock to the current owners of MOM Brands.

Post is a St. Louis-based consumer packaged goods holding company. MOM Brands is a Lakeville, Minn.-based cereal company.

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