Duravant, Hubbard Radio, Cast & Crew free to trade; First Data strengthens on merger news

By Sara Rosenberg

New York, Jan. 16 – Duravant LLC (Engineered Machinery Holdings Inc.) firmed pricing on its incremental first-lien term loan at the high side of guidance and Hubbard Radio LLC set the original issue discount on its add-on term loan, and then both of these deals broke for trading on Wednesday.

Also hitting the secondary market was Cast & Crew Entertainment Services’ first-lien term loan, and First Data Corp.’s term loan gained some ground in trading after it was announced that the company will be acquired by Fiserv.

Switching to the primary market, DiscoverOrg LLC and Radiology Partners Inc. disclosed price talk on their term loans with launch.

Duravant updated, breaks

Duravant set the spread on its non-fungible $160 million incremental first-lien term loan (B2/B-) due July 2024 at Libor plus 425 basis points, the wide end of the Libor plus 400 bps to 425 bps talk, according to a market source.

The incremental term loan still has a 0% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

After terms finalized, the term loan made its way into the secondary market, and levels were seen at 98¼ bid, 99¼ offered, the source said.

Jefferies LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Antares Capital and Societe Generale are leading the deal that will be used with an equity contribution from the sponsor to fund the acquisition of Wulftec International.

Duravant is a Downers Grove, Ill.-based automation solutions platform providing highly engineered equipment and related aftermarket parts and services.

Hubbard tweaked, trades

Hubbard Radio firmed the original issue discount on its fungible $80 million add-on term loan B (B1/BB-) due April 2025 at 98.51 from talk at launch in the 98.5 area, and revised the maximum consolidated leverage ratio to 6.5 times, with steps, from 7 times, with steps, a market source remarked.

As before, the add-on term loan is priced at Libor plus 350 bps with a 1% Libor floor, and has 101 soft call protection for six months.

By late day, the add-on term loan freed to trade, with levels quoted at 98½ bid, 99½ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the acquisition of six radio stations in West Palm Beach, Fla., from Alpha Media.

Closing is expected during the week of Jan. 21, the source added.

In connection with this transaction, pricing on the company’s existing term loan B is being lifted from Libor plus 300 bps with a 1% Libor floor to match the add-on term loan pricing.

Hubbard Radio is a St. Paul, Minn.-based broadcasting company.

Cast & Crew frees up

Cast & Crew Entertainment Services’ $765 million seven-year first-lien term loan (B2/B+) also began trading during the session, with levels quoted at 99½ bid, par ¼ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps when first-lien net leverage is 4.75 times and a 0% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for six months.

During syndication, the first-lien term loan was upsized from $740 million, pricing was trimmed from Libor plus 425 bps, the step-down was added and the discount was tightened from 98.

The company’s $1.18 billion of credit facilities also include a $90 million revolver (B2/B+) and a $325 million privately placed second-lien term loan.

Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by EQT Partners from Silver Lake.

Closing is subject to customary conditions.

Cast & Crew is a Burbank, Calif.-based provider of software and services to the entertainment production industry.

First Data rises

In more trading happenings, First Data’s term loan strengthened to 99½ bid, par offered from 98 bid, 98½ offered on news that the company is being bought by Fiserv in an all-stock transaction, a market source said.

Fiserv plans to refinance the roughly $17 billion of debt that First Data is expected to have at the time of closing and has entered into a commitment for bridge financing in connection with the transaction.

Under the terms of the agreement, First Data shareholders will receive a fixed exchange ratio of 0.303 Fiserv shares for each share of First Data common stock they own, for an equity value of $22 billion.

Following the close of the transaction, Fiserv shareholders will own 57.5% of the combined company, and First Data shareholders will own 42.5%, on a fully diluted basis.

The combined company is expected to retain Fiserv’s current investment-grade ratings of Baa2/BBB.

Closing is expected in the second half of this year, subject to customary conditions and regulatory approvals, including the approval of shareholders of both companies. The acquisition is not subject to any financing conditions.

First Data is an Atlanta-based provider of payment processing solutions. Fiserv is a Brookfield, Wis.-based provider of financial services technology solutions.

DiscoverOrg guidance

Moving to the primary market, DiscoverOrg held its lenders’ presentation on Wednesday and announced price talk on its $825 million seven-year covenant-light first-lien term loan B and $410 million eight-year covenant-light second-lien term loan, according to a market source.

The first-lien term loan is talked at Libor plus 475 bps to 500 bps with a 0% Libor floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 875 bps to 900 bps with a 0% 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 $1,335,000,000 of senior secured credit facilities also include a $100 million five-year revolver.

Commitments are due on Jan. 28, the source added.

Morgan Stanley Senior Funding Inc., Barclays and Antares Capital are leading the deal that will be used to fund the acquisition of Zebra, refinance existing debt and pay fees and expenses related to the financing.

DiscoverOrg is a Vancouver, Wash.-based provider of sales and marketing data.

Radiology Partners talk

Radiology Partners came out with talk of Libor plus 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its fungible $365 million incremental first-lien term loan B that launched with a morning lender call, a market source remarked.

The Libor plus 475 bps spread and six months of call protection will also be applied to the company’s existing $800 million first-lien term loan B, the source continued. No fee is being offered to existing lenders on their current term loan B holdings.

Commitments are due at 5 p.m. ET on Jan. 31, the source added.

Barclays and Golub are leading the incremental term loan that will be used to fund the acquisition of Austin Radiological Association and repay revolver borrowings associated with the acquisition of Desert Radiology.

New Enterprise Associates is the sponsor.

Radiology Partners is an El Segundo, Calif.-based radiology physician practice management company.

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