Realogy, Confie break; Plaskolite tightens OID, Revlon, Reynolds, Zayo, Pinnacle launch

By Sara Rosenberg

New York, July 14 – Realogy Group LLC adjusted the issue price on its term loan B and then the debt freed up for trading on Thursday, and Confie Seguros Holdings II Co.’s add-on first-lien term loan B-1 hit the secondary market as well.

In other happenings, Plaskolite LLC modified the original issue discount on its add-on first-lien term loan, and Revlon Consumer Products Corp., Reynolds Group Holdings Inc., Zayo Group LLC and Pinnacle Foods Finance LLC all launched new deals to investors.

Also, Avast Software set bank meeting dates and price talk for its U.S. dollar and euro term loan, United Site Services joined the new issue calendar, and guidance on Cast & Crew Payroll LLC’s in-market add-on term loan B was disclosed.

Realogy revised, trades

Realogy Group changed the issue price on its $1.1 billion term loan B due 2022 to par from talk of 99.5 to 99.75, and left pricing at Libor plus 300 basis points with a 0.75% Libor floor, according to a market source. The debt still has 101 soft call protection for six months.

With final terms in place, the term loan B made its way into the secondary market on Thursday, and levels were seen at 100 1/8 bid, 100 3/8 offered, another source added.

Along with the term loan B, the company is getting a $330 million term loan A due 2021.

J.P. Morgan Securities LLC is leading the $1.43 billion in term loans (Ba1/BB+) that will be used with revolver borrowings and cash on hand to refinance an existing roughly $1.9 billion term loan B.

Closing on the refinancing is expected in mid-July.

Realogy is a Madison, N.J.-based real estate company.

Confie frees up

Confie Seguros’ fungible $50 million add-on first-lien term loan B-1 due Nov. 9, 2018 broke for trading too, with levels quoted at 98½ bid, 99½ offered, a trader remarked.

Pricing on the add-on loan is Libor plus 450 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. All of the term loan B-1 debt is getting 101 soft call protection for six months.

During syndication, the add-on loan was upsized from $25 million.

RBC Capital Markets is leading the deal that is being used to repay revolver borrowings.

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

Plaskolite tweaks OID

Back in the primary market, Plaskolite revised the original issue discount on its fungible $70 million add-on first-lien term loan (B) to 99.75 from talk of 99 to 99.5, according to a market source.

As before, based on an existing leverage-based grid, pricing on the pro forma $381.6 million first-lien term loan will be Libor plus 475 bps with a 1% Libor floor.

Recommitments were due by 5 p.m. ET on Thursday, allocations are expected on Friday or Monday, and closing is targeted for Tuesday, the source said.

Antares Capital and KeyBanc Capital Markets LLC are leading the deal that will be used with a privately placed $15 million add-on to the company’s existing $105 million second-lien term loan to fund a distribution to shareholders and pay transaction-related fees and expenses.

Plaskolite, a Columbus, Ohio-based manufacturer of acrylics and other plastic products, was acquired by Charlesbank Capital Partners and management in November 2015.

Revlon releases talk

Revlon held its bank meeting on Thursday, launching its $1.8 billion seven-year covenant-light term loan B (B+) with talk of Libor plus 400 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months if “flex is triggered”, according to a market source.

Commitments are due at noon ET on July 22, the source added.

The company’s $2.2 billion senior secured credit facility also includes a $400 million asset-based revolver.

Proceeds will be used to help fund the acquisition of Elizabeth Arden Inc. for $14 per share in cash, representing an enterprise value of around $870 million, to refinance Elizabeth Arden’s existing debt and to refinance Revlon’s existing term loan and revolver.

Revlon lead banks

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc. and Barclays are leading Revlon’s credit facility.

In addition, the company is expected, based on filings with the Securities and Exchange Commission, to do a private placement of $400 million of senior unsecured notes with the acquisition.

Closing is expected by year-end, subject to approval by Elizabeth Arden’s shareholders, regulatory clearances and customary conditions.

Revlon is a New York-based beauty company. Elizabeth Arden is a prestige beauty products company based in Pembroke Pines, Fla.

Reynolds holds call

Reynolds Group announced in the morning its intention to host a lender call at 3 p.m. ET on Thursday to launch a $2,223,000,000 6.5-year term loan talked at Libor plus 325 bps to 350 bps with a 1% Libor floor and an original issue discount of 99.5, a market source said.

In addition, the company launched a €250 million 6.5-year term loan talked at Euribor plus 375 bps to 400 bps with no floor and a discount of 99, the source continued.

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

Commitments are due on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will refinance existing term loans.

Also, the company said in a news release that, with the term loan refinancing, it is looking to resize its revolver as a single $400 million facility and extend the maturity to five years from closing.

Reynolds is an Auckland, New Zealand-based manufacturer of food and beverage packaging products.

Zayo discloses guidance

Zayo Group held its call, launching its $361 million covenant-light term loan due May 6, 2021 with price talk of Libor plus 275 bps with a 1% Libor floor and a par issue price, according to a market source.

Proceeds will be used to reprice the company’s existing $361 million covenant-light term loan B-2 due May 6, 2021 that is currently priced at Libor plus 350 bps with a 1% Libor floor, and the loan will be made fungible with the company’s existing term loan B-1 due May 6, 2021 priced at Libor plus 275 bps with a 1% Libor floor.

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

Barclays, Morgan Stanley Senior Funding Inc., Goldman Sachs & Co. and RBC Capital Markets are the joint lead arrangers on the deal and joint bookrunners with Citigroup Global Markets Inc., J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc.

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

Pinnacle Foods repricing

Pinnacle Foods held a lender call during the session to launch a repricing of its $550 million term loan I due Jan. 13, 2023 with talk of Libor plus 275 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

The repricing will take the loan down from Libor plus 300 bps with a 0.75% Libor floor.

Commitments and consents are due at noon ET on Wednesday, the source added.

Bank of America Merrill Lynch is leading the deal.

Pinnacle Foods is a Parsippany, N.J.-based manufacturer, marketer and distributor of high-quality, branded food products.

Avast readies launches

In more primary news, Avast emerged with plans to hold a bank meeting at 12:30 p.m. ET in New York on Tuesday and one at 8:30 a.m. ET in London on Monday to launch its previously announced $1.6 billion-equivalent six-year U.S. dollar and euro term loan, according to a market source.

Also, talk on the term loan debt was announced as Libor/Euribor plus 450 bps with a 1% floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

As reported earlier, sizes on the U.S. and euro term loan tranches are not yet available, but at least 50% of the total amount is expected to be in dollars.

The company’s $1,685,000,000-equivalent credit facility also includes an $85 million revolver.

Commitments are due on Aug. 2, the source added.

Avast buying AVG

Proceeds from Avast’s credit facility, cash on hand and $150 million in equity will be used to fund the acquisition of AVG Technologies NV for $25 per share in cash, for a total consideration of about $1.3 billion, and to refinance existing debt at both companies.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and UBS Investment Bank are leading the debt.

Closing on the acquisition is expected sometime between Sept. 15 and Oct. 15, subject to regulatory approvals, certain shareholder approvals, the tender of a specified amount of AVG’s shares and other customary conditions. The transaction is not subject to financing.

Leverage is in the mid-3 handle.

Avast is a Prague-based maker of security software. AVG is a Netherlands-based provider of software services to secure devices, data and people.

United Site on deck

United Site Services scheduled a bank meeting for Wednesday to launch a $450 million credit facility, a market source said.

The facility consists of a $60 million revolver, a $340 million covenant-light term loan and a $50 million delayed-draw term loan, the source added.

Antares Capital, Societe Generale and Citizens Banks are leading the deal that will be used to refinance existing debt.

United Site Services is a Westborough, Mass.-based provider of portable sanitation solutions.

Cast & Crew talk

Guidance was released on Cast & Crew’s fungible $80 million add-on first-lien term loan B (B2/B+) at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 98.55, a market source remarked.

The loan had launched with a call on Wednesday afternoon, but talk didn’t come out until Thursday morning.

In connection with the add-on, pricing on the company’s existing $270 million first-lien term loan B will be increased to Libor plus 400 bps with a 1% Libor floor from Libor plus 375 bps with a 1% Libor floor, the source continued.

Commitments are due at 5 p.m. ET on July 21.

Cast acquiring CAPS

Proceeds from Cast & Crew’s add-on term loan and $50 million of privately placed second-lien notes due 2024 will be used to fund the acquisition of CAPS Payroll from Uni-World Capital.

RBC Capital Markets is leading the loan.

Cast & Crew, a Silver Lake portfolio company, is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry. CAPS is a Culver City, Calif.-based technology-driven payroll services company serving film and TV studios, commercial production companies, as well as venues, music tours and live events.

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