Royalty Pharma, PrimeSource, Zayo, Flying, Victory Capital break; PetSmart dips on repricing

By Sara Rosenberg

New York, May 1 – Royalty Pharma Investments Finance Trust and PrimeSource Building Products (PriSo Acquisition Corp.) upsized their term loans in the morning and then freed up for trading on Friday afternoon above their issue prices.

Also, deals from Zayo Group LLC, Flying Fortress Inc. and Victory Capital Operating LLC surfaced in the secondary, and PetSmart Inc.’s term loan softened with repricing news.

Back in the primary, Hyland Software Inc. increased the size of its tack-on first-lien term loan, Gold Standard Baking trimmed the spread on its term loan and added a step-down, and J. Jill accelerated the commitment deadline on its term loan B.

Furthermore, Integra Telecom Holdings Inc. disclosed price talk with launch, and Blackhawk Mining, Salient Partners LP and Ranpak Holdings Inc. emerged with new deal plans.

Royalty Pharma upsizes, trades

Royalty Pharma increased its add-on term loan B-4 due Nov. 9, 2020 to $2.8 billion from a revised amount of $2 billion and an initial size of $1 billion, according to a market source.

Pricing on the add-on loan is still Libor plus 275 basis points with a 0.75% Libor floor, in line with the existing term loan B-4, and it was issued at par, after finalizing recently at the tight end of the 99¾ to par talk.

Once terms finalized, the add-on term loan B-4 was able to break for trading, with levels seen at par 3/8 bid, par 7/8 offered, a trader remarked.

Bank of America Merrill Lynch, Goldman Sachs Bank USA 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, because of the upsizings, its term loan B-2.

Royalty Pharma is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

PrimeSource tweaked, frees up

PrimeSource Building Products lifted its seven-year covenant-light term loan B (B2/B+) to $355 million from $325 million, and kept pricing at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99½, according to a market source. The debt still has 101 soft call protection for six months.

The other day, however, the well-received term loan B saw pricing reduced from Libor plus 425 bps and the discount tightened from 99.

Recommitments were due by 10:15 a.m. ET on Friday, and with final terms in place, the B loan made its way into the secondary market with levels quoted at 99 7/8 bid, par 3/8 offered, another source remarked.

Deutsche Bank Securities Inc., BMO Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Nomura are leading the deal.

PrimeSource getting revolver

In addition to the term loan B, PrimeSource’s now $655 million credit facility provides for a $300 million ABL revolver.

Proceeds from the credit facility will be used to help fund the buyout of the company by Platinum Equity LLC from Itochu.

Other funds for the transaction will come from $200 million of senior notes that were downsized from $230 million with the term loan B upsizing and priced at 9%, the source added.

PrimeSource is a Dallas-based two-step building products distributor.

Zayo hits secondary

Another deal to break was Zayo’s roughly $1.65 billion six-year covenant-light term loan B, with levels quoted at 99 7/8 bid, par 1/8 offered, according to a trader.

Pricing on the term loan is Libor plus 275 bps with a 1% Libor floor, and it was sold at a discount of 99¾. There is 101 soft call protection for six months.

During syndication the loan was downsized from roughly $1,995,000,000 as the company opted to sell $350 million of senior notes to be used to pay down the loan, the Libor floor firmed at the high end of the 0.75% to 1% talk, the issue price widened from par, and the maturity was shortened from seven years.

Zayo lead banks

Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs Bank USA, Citigroup Global Markets Inc., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are the joint bookrunners on Zayo’s term loan B and joint lead arrangers with JPMorgan.

Proceeds will be used to reprice the company’s existing term loan and amend the maturity and other covenants and provisions.

Closing is expected on Wednesday.

Zayo is a Boulder, Colo.-based provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services.

Flying Fortress breaks

Flying Fortress’ extended $750 million term loan due 2020 freed up as well, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the extended loan is Libor plus 275 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99 7/8. There is 101 soft call protection for six months.

During syndication, the discount on the loan was tightened from 99¾.

Bank of America Merrill Lynch and RBC Capital Markets are leading the deal that will be used to extend the existing term loan from 2017 without a change in spread and floor.

Flying Fortress is a subsidiary of AerCap, an Amsterdam-based aircraft leasing company.

Victory tops OID

Victory Capital’s fungible $50 million add-on term loan B due Oct. 31, 2021 also began trading, with levels seen at 99½ bid, par offered, a trader said.

Pricing on the add-on loan is Libor plus 600 bps with a 1% Libor floor, and it was sold at an original issue discount of 99¼, after tightening the other day from the 99 area. There is 101 hard call protection through October 2015.

Morgan Stanley Senior Funding is leading the deal that will be used to fund a distribution to shareholders.

In connection with the transaction, existing lenders are being offered a 25 bps amendment fee.

Closing is targeted for Tuesday.

Victory Capital is a Brooklyn, Ohio-based asset manager.

PetSmart slides

In more trading news, PetSmart’s term loan B slipped to 101 1/8 bid, 101 3/8 offered from 101¼ bid, 101½ offered as a repricing of the debt was launched that will result in existing lenders being repaid at 101 due to current soft call protection, a trader remarked.

The transaction, for which there was no lender call, would take the $4.3 billion senior secured covenant-light term loan B due March 10, 2022 to Libor plus 300 bps with a 1% Libor floor from Libor plus 400 bps with a 1% Libor floor, a source said.

The repriced loan is offered at par and has 101 soft call protection for one year.

Commitments are due at noon ET on May 8, the source added.

Citibank is the administrative agent on the Phoenix-based specialty pet retailer’s term loan B.

Hyland lifts loan size

Meanwhile, back in the primary market, Hyland Software raised its tack-on first-lien covenant-light term loan due February 2021 to $130 million from $100 million and kept pricing at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99½, a source remarked.

The spread and floor on the tack-on loan matches the existing first-lien term loan.

All of the first-lien term loan debt is still getting 101 soft call protection for six months with this transaction.

Commitments continue to be due at noon ET on Monday, the source added.

Credit Suisse Securities and Goldman Sachs Bank USA are leading the deal that will be used to fund a distribution to shareholders.

Hyland is a Westlake, Ohio-based enterprise content-management software developer.

Gold Standard cuts pricing

Gold Standard Baking reduced pricing on its $109 million term loan to Libor plus 450 bps from Libor plus 475 bps and added a leverage-based step-down to Libor plus 425 bps, according to a market source, who said the 1% Libor floor and original issue discount of 99 were left intact.

The term loan has 101 soft call protection for six months.

The company’s $139 million credit facility also includes a $30 million revolver.

Recommitments are due on Monday, the source added.

BNP Paribas Securities Corp. is leading the deal that will be used with $27 million of mezzanine debt to fund the buyout of the company by Tricor Pacific Capital from Arbor Investments.

Gold Standard Baking is a Chicago-based baked goods supplier.

J. Jill revises deadline

J. Jill moved up the commitment deadline on its $250 million seven-year term loan B (B2/B) to 5 p.m. ET on Monday from Wednesday, according to a market source.

The term loan B is still talked at Libor plus 500 bps to 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The company’s $290 million credit facility also includes a $40 million asset-based revolver.

Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used with about $169 million in equity to fund the buyout of the company by TowerBrook Capital Partners LP from Arcapita and Golden Gate Capital.

Closing is expected this quarter.

J. Jill is a Quincy, Mass.-based multi-channel fashion retailer of women’s apparel, accessories and footwear.

Integra talk emerges

Also in the primary, Integra Telecom held its call on Friday, and with the event, talk on its first- and second-lien term loans was announced, according to a market source.

The roughly $673 million 5.25-year senior secured first-lien term loan B is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, and the $123 million 5.5-year second-lien term loan is talked at Libor plus 850 bps with a 1.25% Libor floor, a discount of 99½ and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Thursday, and closing is targeted for May 12.

Morgan Stanley Senior Funding is leading the deal that will be used to refinance existing first- and second-lien term loans. The first-lien term loan is being upsized by $100 million from the current outstanding amount so as to pay down some second-lien loan borrowings.

Integra Telecom is a provider of telecommunications services.

Blackhawk joins calendar

Blackhawk Mining scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $300 million five-year senior secured term loan B, according to a market source.

The company’s $360 million credit facility also includes a $60 million ABL revolver.

Deutsche Bank Securities is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Blackhawk Mining is a Lexington, Ky.-based coal mining company.

Salient on deck

Salient Partners set a bank meeting for Wednesday to launch a $175 million credit facility (BB-), according to a market source.

The facility consists of a $15 million revolver and a $160 million term loan, the source said.

Macquarie Capital is leading the deal that will be used to refinance existing debt and fund the acquisition of Forward Management LLC.

Closing is expected this quarter, subject to approval by Forward Funds’ shareholders and customary conditions.

Salient, a Summit Partners portfolio company, is a Houston-based investment management firm. Forward Management is a San Francisco-based asset management firm.

Ranpak readies call

Ranpak Holdings is planning on holding a lender call during the week of May 4 to launch a repricing of its U.S. and euro first-lien term loans, according to a market source.

The U.S. term loan is currently priced at Libor plus 375 bps with a 1% Libor floor, and the euro term loan is currently priced at Euribor plus 400 bps with a 1% floor.

Macquarie Capital is leading the deal.

Ranpak is a Concord Township, Ohio-based manufacturer of paper-based systems for protective packaging needs.

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