Promontory, Blackboard revised; MediaOcean pulled; Grifols, HelpSystems, Allsup’s set talk

By Sara Rosenberg

New York, Oct. 30 – In the primary market on Wednesday, Promontory Interfinancial Network LLC reduced the spread and revised the original issue discount on its first-lien term loan in the morning and increased the size of the tranche in the afternoon.

Additionally, Blackboard Inc. widened the spread and issue price on its term loan B-5, and MediaOcean LLC withdrew its credit facilities from the primary market.

Furthermore, Grifols, HelpSystems and Allsup’s announced price talk with launch, and Cambrex Corp., TransUnion LLC and LPL Holdings Inc. joined the near-term primary calendar.

Promontory updated

Promontory Interfinancial Network upsized its seven-year covenant-lite first-lien term loan to $630 million from $620 million, trimmed pricing to Libor plus 375 basis points from talk in the range of Libor plus 400 bps to 425 bps, changed the original issue discount to 99.5 from 99 and made some updates to documentation, according to a market source.

As before, the first-lien term loan has a 0% Libor floor and 101 soft call protection for six months.

The company’s $960 million of credit facilities also include a $100 million revolver (B1/B) and a $230 million privately placed second-lien term loan.

Morgan Stanley Senior Funding Inc., Nomura, RBC Capital Markets, UBS Investment Bank and Blackstone are leading the deal that will be used to help fund the buyout of the company by the Blackstone Group and, due to the upsizing, to put cash on the balance sheet for working capital.

Closing is expected next week.

Promontory is an Arlington, Va.-based provider of balance sheet management solutions to banks.

Blackboard flexes

Blackboard lifted pricing on its $500 million term loan B-5 due June 2024 (B1/B) to Libor plus 600 bps from talk in the range of Libor plus 550 bps to 575 bps and moved the original issue discount to 95 from 99, a market source said.

The term loan still has a 1% Libor floor.

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

BofA Securities, Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Citizens Bank are leading the deal that will be used with $243 million of second-lien notes to refinance existing debt.

Blackboard is a Washington, D.C.-based education technology company.

MediaOcean shelved

MediaOcean pulled its $743 million of senior secured credit facilities (B2/B) from market as a result of current conditions, a market source remarked.

The facilities consisted of a $50 million revolver, and a $693 million term loan talked at Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Macquarie Capital (USA) Inc., BNP Paribas Securities Corp., Golub Capital and Jefferies LLC were leading the deal that was going to be used to refinance existing debt and pay a dividend to the company’s sponsor.

MediaOcean is a New York-based software company for the advertising sector.

Grifols sets guidance

In more happenings, Grifols held its London bank meeting and lender call on Wednesday and revealed price talk on its $4.6 billion equivalent of term loans, according to a market source.

Talk on the $3 billion eight-year covenant-lite term loan B is Libor plus 200 bps with a 0% Libor floor and an original issue discount of 99.25 to 99.5, and talk on the $1.6 billion equivalent euro eight-year covenant-lite term loan B is Euribor plus 225 bps to 250 bps with a 0% floor and a discount of 99.5, the source said.

The term loans have 101 soft call protection for six months.

Commitments for the U.S. loan are due at 5 p.m. ET on Nov. 7, and commitments for the euro loan are due at noon GMT on Nov. 8.

The company also plans on getting a new revolver and issuing senior secured bonds.

BofA Securities, Inc., BNP Paribas, HSBC, JPMorgan and BBVA are leading the credit facilities that will be used with the bonds to refinance existing senior secured debt.

Grifols is a Sant Cugat del Valles, Barcelona-based health care company.

HelpSystems talk

HelpSystems came out with talk of Libor plus 425 bps to 450 bps with a 0% Libor floor and an original issue discount of 99 on its $725 million seven-year first-lien term loan (B-) and $50 million seven-year delayed-draw first-lien term loan (B-) that launched with a morning bank meeting, a market source remarked.

The first-lien term loan has 101 soft call protection for six months, and the delayed-draw term loan has a ticking fee of half the spread from days 61 to 90 and the full spread onwards.

Commitments are due on Nov. 13, the source added.

The company’s $1.065 billion of credit facilities also include a $60 million five-year revolver (B-) and a $230 million privately placed eight-year second-lien term loan.

Jefferies LLC, Golub Capital and Ares are leading the deal that will be used to help fund a majority investment in the company by TA Associates and Charlesbank Capital Partners, and to pay related fees and expenses. HGGC, management and employees will remain investors in HelpSystems.

Closing is expected in November, subject to regulatory approvals and customary conditions.

HelpSystems is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity, and business intelligence software.

Allsup’s proposed terms

Allsup’s launched at its morning bank meeting its $525 million seven-year first-lien term loan B (B2/B) at talk of Libor plus 550 bps to 575 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, according to a market source.

Commitments are due on Nov. 13, the source said.

Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to help fund the acquisition of the company by Yesway, a portfolio company of Brookwood.

Allsup’s is a Clovis, N.M.-based operator of 305 gas stations and convenience stores throughout New Mexico, Texas and Oklahoma. Yesway is a Des Moines, Iowa-based convenience store chain.

Cambrex on deck

Cambrex emerged with plans to hold a bank meeting in New York at 11 a.m. ET on Monday to launch $1.26 billion of senior secured credit facilities, a market source said.

The facilities consist of a $135 million revolver, an $875 million first-lien term loan and a $250 million second-lien term loan, the source added.

RBC Capital Markets, Barclays, Societe Generale, UBS Investment Bank and Mizuho are leading the deal that will be used with around $1.382 billion equivalent of equity to fund the buyout of the company by Permira for $60.00 in cash. The transaction is valued at about $2.4 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including receipt of approval by Cambrex’s shareholders and regulatory approvals.

Cambrex is an East Rutherford, N.J.-based small molecule company providing drug substance, drug product and analytical services.

TransUnion readies loan

TransUnion set a lender call for 10 a.m. ET on Thursday to launch a $1.75 billion seven-year covenant-lite term loan B-5 (BB+), according to a market source.

The term loan B-5 has 101 soft call protection for six months, the source said.

Commitments are due at noon ET on Nov. 7.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to prepay a portion of the company’s existing term loan B-3 and B-4 borrowings.

TransUnion is a Chicago-based provider of risk and information solutions to businesses and consumers.

LPL joins calendar

LPL Holdings scheduled a lender call for 11 a.m. ET on Thursday to launch a $1.07 billion seven-year term loan B talked at Libor plus 200 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Nov. 6, the source added.

The company also plans on increasing its revolver to $750 million from $500 million and extending the maturity.

J.P. Morgan Securities LLC is leading the deal, which will be used to with $400 million of senior notes due 2027 and cash on hand to refinance an existing term loan B, and to pay fees and expenses related to the transaction.

Closing is expected by the end of November.

LPL Holdings, a wholly owned subsidiary of LPL Financial Holdings Inc., is a Boston-based financial advisor and independent broker-dealer.

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