Avantor breaks; Landry’s, Versum Materials, LANDesk, SIG Combibloc, Windstream update deals

By Sara Rosenberg

New York, Sept. 19 – Avantor Performance Materials saw its credit facility make its way into the secondary market on Monday, with the strip of incremental and delayed-draw term loan debt quoted above their original issue discount.

Moving to the primary market, Landry’s Inc. modified the original issue discount on its term loan, Versum Materials LLC trimmed the spread on its term loan B, and LANDesk Software shifted some funds to its first-lien term loan from its second-lien term loan.

Also, SIG Combibloc (Onex Wizard US Acquisition Inc./SIG Combibloc Purchase Co. Sarl) extended the call protection on its term loans, and Windstream Services LLC increased the size of its term loan B-6 while tightening the spread and issue price.

Furthermore, OrthoLite, Nielsen Finance LLC, Multi Packaging Solutions International Ltd. and Misys released price talk with launch.

Additionally, Focus Brands Inc., ON Semiconductor Corp., Vertiv (Cortes NP Acquisition Corp.), Mohegan Tribal Gaming Authority, Fort Dearborn Co. (Fortress Merger Sub Inc.), Jo-Ann Stores Inc., Confie Seguros Holdings II Co. and Vivid Seats LLC joined this week’s new issue calendar.

Avantor frees up

Avantor Performance Materials’ credit facility began trading on Monday, with the strip of $665 million incremental first-lien term loan due 2022 and $170 million delayed-draw first-lien term loan due 2022 debt quoted at par bid, 100½ offered, according to a market source.

Pricing on the term loans (B1) is Libor plus 500 basis points with a 1% Libor floor, and they were sold at an original issue discount of 99.5. The debt has 101 soft call protection through June 21, 2017, and the delayed-draw term loan has a ticking fee of the full spread starting on day 31.

The spread, floor and call protection on the new term loans match the existing first-lien term loan.

Last week, the incremental term loan was upsized from $400 million.

Along with the term loans, the company is getting a $25 million revolver.

Avantor lead banks

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and KeyBanc Capital Markets LLC are leading Avantor’s new bank debt.

Proceeds will be used to fund the merger of Center Valley, Pa.-based Avantor Performance Materials and Carpinteria, Calif.-based NuSil Technology LLC, both portfolio companies of New Mountain Capital LLC, to fund a future acquisition and, due to the recent upsizing, to refinance a second-lien term loan and pay a shareholder distribution.

Closing on the merger is expected late this month, subject to customary conditions.

The combined company, to be named Avantor, will provide performance materials and solutions for the life sciences and advanced technology markets.

Landry’s tweaks OID

Switching to the primary market, Landry’s changed the original issue discount on its $1.3 billion seven-year first-lien term loan to 99.5 from 99 and left pricing at Libor plus 325 bps with a 0.75% Libor floor, according to a market source.

As before, the term loan has 101 soft call protection for six months.

The company’s $1.5 billion senior secured credit facility also includes a $200 million five-year revolver.

Commitments were due at 3 p.m. ET on Monday, with allocations targeted for Tuesday, the source said.

Jefferies Finance LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Rabobank are leading the deal that will be used with $600 million of senior notes to refinance existing debt, including 9 3/8% senior unsecured notes due 2020 and an existing senior secured credit facility, and to make a distribution to its indirect parent to redeem all of its outstanding 10¼% senior unsecured notes due 2018.

The notes were upsized from $575 million, and the extra proceeds will be used with $25 million in cash on hand to fund a $50 million distribution to Landry’s parent.

Landry’s is a Houston-based diversified restaurant, hospitality and entertainment company.

Versum flexes lower

Versum Materials lowered pricing on its $575 million seven-year covenant-light term loan B to Libor plus 275 bps from talk of Libor plus 300 bps to 325 bps, a market source said.

The term loan B still has a 25 bps step-down in pricing when total net leverage is less than 2.5 times, a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year, the source said.

Commitments are due at noon ET on Tuesday, moved up from 5 p.m. ET on Thursday, and allocations are expected on Wednesday, the source added.

The company’s $775 million senior secured credit facility (Ba1/BB+) also includes a $200 million five-year revolver.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Wells Fargo Securities LLC are leading the deal.

Versum funding spin-off

Versum’s new credit facility is being done with its spin-off from Air Products and Chemicals Inc., and will be used to help fund a distribution to Air Products.

Also, as part of the transaction, the company plans to distribute in-kind to Air Products up to $425 million in unsecured senior notes.

Versum Materials is a Tempe, Ariz.-based producer of critical materials, including high purity process materials, cleaners and etchants, slurries, organosilanes and organometallics, and equipment for the semiconductor and display industries.

LANDesk retranches

LANDesk Software raised its six-year first-lien term loan (B1) to $535 million from $515 million and trimmed its seven-year second-lien term loan (Caa1) to $175 million from $195 million, a market source remarked.

Talk on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 850 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 company’s $730 million credit facility also includes a $20 million five-year revolver.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

LANDesk is a South Jordan, Utah-based user-centered IT management company.

SIG Combibloc revises call

SIG Combibloc extended the 101 soft call protection on its $1,225,000,000 term loan due March 13, 2022 and €1.05 billion term loan due March 13, 2022 to one year from six months, according to a market source.

Pricing on the U.S. term loan is Libor plus 300 bps with a 1% Libor floor and a par issue price, and pricing on the euro term loan is Euribor plus 375 bps with no floor and an original issue discount of 99.875.

Barclays is leading the deal that will be used to reprice existing U.S. and euro term loan from Libor/Euribor plus 325 bps with a 1% floor.

Allocations are expected around mid-week, the source said.

SIG Combibloc is a Switzerland-based supplier of carton packaging and filling machines for beverages and food.

Windstream reworked

Windstream Services raised its term loan B-6 to $750 million from roughly $699 million, cut pricing to Libor plus 400 bps from Libor plus 425 bps and modified the issue price to par from 99.75, a market source remarked.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan B-6, to pay down some notes and revolver borrowings, and for other general corporate purposes.

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

OrthoLite reveals guidance

In more primary news, OrthoLite came out with talk of Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $200 million seven-year term loan B that launched with an afternoon bank meeting, according to a market source.

The company’s $212 million senior secured credit facility (B2) also includes a $12 million revolver.

Commitments are due at noon ET on Oct. 3, the source said.

Goldman Sachs Bank USA and Antares Capital are leading the deal that will be used to refinance existing debt and to fund a dividend.

OrthoLite is an Amherst, Mass.-based supplier and manufacturer of open-cell foam insoles to branded footwear companies.

Nielsen holds call

Nielsen Finance surfaced in the morning with plans to hold a lender call at 1 p.m. ET on Monday, and on the call, the company launched a $500 million seven-year covenant-light term loan B-3 (BBB) talked at Libor plus 250 bps to 275 bps with no Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Friday and closing is expected during the week of Sept. 26, the source said.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance the company’s existing term loan B-1 and pay related fees and expenses.

Nielsen is a New York and Netherlands-based provider of information and insights into what consumers watch and buy.

Multi Packaging terms emerge

Multi Packaging Solutions launched with a call its $220 million non-fungible incremental covenant-light term loan D (B1/BB-) with talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5p.m. ET on Sept. 28, the source said.

Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to redeem the company’s $200 million 8.5% senior notes due 2021 on Oct. 17.

Multi Packaging repricing

Along with the incremental term loan D, Multi Packaging is seeking a repricing of its €132 million covenant-light term loan and its £88 million covenant-light term loan and an upsizing of its revolver to $70 million from $50 million.

Talk on the euro repricing is Euribor plus 325 bps, versus current pricing of Euribor plus 375 bps, and talk on the sterling repricing is Libor plus 400 bps, versus current pricing of Libor plus 450 bps, the source remarked.

Both repriced term loans have a 1% floor, a par issue price and 101 soft call protection for six months.

The company is not proposing to reprice its existing U.S. term loan B.

Pro forma leverage is 3.7 times total and secured.

Multi Packaging Solutions is a New York-based provider of packaging solutions to the health care, consumer and multi-media markets.

Misys releases talk

Misys held its bank meeting, and with the event, price talk on its $1.5 billion-equivalent credit facility was announced, a market source said.

The $200 million-equivalent five-year revolver and the $300 million-equivalent five-year term loan A are both talked at Libor/Euribor plus 250 bps, the $300 million seven-year U.S. dollar term loan B is talked at Libor plus 325 bps to 350 bps and the $700 million seven-year euro-equivalent term loan B is talked at Euribor plus 350 bps to 375 bps, the source continued. The U.S. and euro term loan B’s have no floor and an original issue discount of 99.5.

Commitments are due by Sept. 29.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are the joint coordinators on the deal and bookrunners with Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc.

Misys, a London-based provider of financial services software, will use the new credit facility to refinance existing loans.

Focus Brands on deck

Focus Brands set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $625 million credit facility, according to a market source.

The facility consists of a $25 million revolver, and a $600 million seven-year covenant-light first-lien term loan talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Oct. 4.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

Focus Brands is an Atlanta-based restaurant franchisor and operator.

ON Semiconductor plans loan

ON Semiconductor will hold a lender call at 11:30 a.m. ET on Tuesday to launch a $2.4 billion covenant-light term loan B due March 2023 that is talked at Libor plus 325 bps with no floor, a par issue price and 101 soft call protection for six months, a source said.

Commitments/cashless rolls are due at the close of business on Thursday and allocations are expected on Friday, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to reprice an existing $2.2 billion term loan B from Libor plus 450 bps with a 0.75% Libor floor, with existing term loan B lenders getting paid out at the 101 repricing premium, and to pay down revolver borrowings.

ON Semiconductor is a Phoenix-based semiconductor company.

Vertiv readies deal

Vertiv scheduled a bank meeting for Tuesday to launch a $2,285,000,000 (B+) seven-year first-lien 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, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition by Platinum Equity and a group of co-investors of a majority stake in the company from Emerson. The transaction is valued at $4 billion.

Closing is expected by Dec. 31, subject to customary regulatory approvals.

Vertiv is a Columbus, Ohio-based provider of thermal management, A/C and D/C power, transfer switches, services and information management systems for the data center and telecommunications industries.

Mohegan joins calendar

Mohegan Tribal Gaming Authority emerged with plans to hold a bank meeting at 2 p.m. ET on Tuesday to launch a $1.4 billion senior secured credit facility (B), a market source said.

The facility consists of a $170 million five-year revolver, a $295 million five-year term loan A and a $935 million seven-year term loan B, the source added.

Citizens Bank, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Goldman Sachs Bank USA, KeyBanc Capital Markets and CIT Bank are leading the deal, with Citizens left on the pro rata debt and Bank of America left on the term loan B.

Proceeds will be used to repay and terminate some existing debt, including an existing credit facility.

Mohegan Tribal is an Uncasville, Conn.-based operator of gaming and entertainment enterprises.

Fort Dearborn coming soon

Fort Dearborn scheduled a bank meeting for 10 a.m. ET in New York on Wednesday to launch $625 million in term loans, split between a $455 million seven-year covenant-light first-lien term loan and a $170 million eight-year covenant-light second-lien term loan, a market source remarked.

There will be one-on-one’s available for investors after the bank meeting, the source added.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Advent International from KRG Capital Partners. Fort Dearborn’s management team will retain a minority stake in the company and continue to lead the business following the completion of the transaction.

Closing is expected this quarter, subject to customary conditions.

Fort Dearborn is an Elk Grove, Ill.-based supplier of high-impact prime labels for the consumer goods industry.

Jo-Ann schedules meeting

Jo-Ann Stores set a bank meeting for Tuesday to launch an $850 million seven-year covenant-light term loan B (B), according to a market source.

Bank of America Merrill Lynch is leading the deal that will be used to refinance existing debt.

Jo-Ann is a Hudson, Ohio-based specialty retailer of fabrics and crafts.

Confie sets refinancing

Confie Seguros will hold a bank meeting on Wednesday to launch a $590 million 5.5-year term loan B (B), a market source said.

Commitments are due on Sept. 30, the source added.

RBC Capital Markets, Antares, Goldman Sachs Bank USA and Barclays are leading the deal that will be used with $350 million in six-year unsecured notes to refinance in full the company’s existing first- and second-lien term loans.

Confie Seguros, an ABRY Partners portfolio company, is a Buena Park, Calif.-based personal lines insurance broker.

Vivid plans presentation

Vivid Seats scheduled a lenders’ presentation for 1:30 p.m. ET on Wednesday to launch a $585 million senior secured credit facility, according to a market source.

The facility consists of a $30 million revolver, a $400 million first-lien term loan and a $155 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and RBC Capital Markets are leading the deal.

Vivid Seats is a Chicago-based secondary ticket marketplace for live sports, concerts and theater events.

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