Sensus USA levels tighten with refinancing news; Windstream, Surgery Center launch deals

By Sara Rosenberg

New York, March 14 – Sensus USA Inc.’s term loan was bid higher in trading on Monday after news surfaced that the company is planning on approaching investors this week with a refinancing transaction.

In other happenings, Windstream Services LLC came to market with an incremental term loan B-6 and, shortly after the launch of the debt took place, the commitment deadline was accelerated.

Also, Surgery Center Holdings Inc. (Surgery Partners Inc.) launched an incremental term loan and amendment proposal, and API Technologies Corp. joined this week’s calendar.

Sensus bid rises

Sensus USA’s term loan was quoted in the secondary market on Monday at 99 bid, par offered versus 98 bid, par offered on Friday, according to a market source, with the bid rising following word of a proposed refinancing.

The company intends to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a $695 million credit facility to fund the refinancing.

The facility consists of a $75 million five-year revolver and a $620 million seven-year first-lien term loan talked with a 1% Libor floor and 101 soft call protection for one year, the source said. Spread and original issue discount talk on the term loan have not yet been disclosed.

Commitments are due at 5 p.m. ET on March 30.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the new deal.

Sensus is a Raleigh, N.C.-based provider of advanced utility infrastructure systems and metering technologies.

Windstream holds call

Also in the loan market, Windstream Services emerged on Monday morning with plans to host a lender call at 11 a.m. ET to launch a $400 million incremental five-year term loan B-6 (BB), a market source said.

The loan is talked at Libor plus 525 basis points with a 0.75% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for six months.

Commitments are due at 3 p.m. ET on Tuesday, after being revised shortly after the call from 4 p.m. ET on Wednesday, the source continued.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund a tender offer for the company’s existing 7.875% senior notes due 2017 and/or to refinance certain other debt.

The tender offer expires on April 11.

Windstream is a Little Rock, Ark.-based provider of network communications and technology solutions.

Surgery Center launches

Surgery Center Holdings launched without a call an $80 million incremental covenant-light first-lien term loan due Nov. 3, 2020 talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, according to a market source.

Spread and floor on the incremental term loan matches pricing on the company’s existing term loan due Nov. 3, 2020, and the existing term loan will get the same soft call protection as the incremental loan.

Jefferies Finance LLC is leading the new debt that will be used to fund two acquisitions.

Net first-lien leverage is 4.5 times, and net total leverage is 5.8 times.

The company is also seeking an amendment to its existing term loan to allow $50 million of unused debt capacity under the general debt/general lien basket to be used to increase the amount of incremental first-lien term loan capacity, and to eliminate the $50 million general debt/general lien basket.

Lenders are offered a 12.5 bps consent fee for the amendment and signature pages are due on Friday.

Closing is expected on March 31.

Surgery Center is a Nashville, Tenn.-based health care services company.

API readies deal

API Technologies set a bank meeting for 2 p.m. ET on Tuesday to launch a $145 million credit facility, according to a market source.

The facility consists of a $30 million revolver and a $115 million term loan, the source said.

BNP Paribas Securities Corp. is leading the deal that will be used to help fund the buyout of the company by J. F. Lehman & Co. for $2.00 per share in cash.

The company said in filings with the Securities and Exchange Commission that it also plans to use a subordinated debt commitment from Babson Capital Management LLC and equity for the buyout.

Closing is expected in the company’s second fiscal quarter of 2016, subject to the expiration of early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and customary conditions.

API is an Orlando, Fla.-based provider of high performance RF, microwave, millimeterwave, power and security solutions.

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