Alliant Insurance, Universal Services, Numericable break; Hostess, Jarden changes revealed

By Sara Rosenberg

New York, July 27 – Alliant Insurance Services Inc. (Alliant Holdings I LP) cut pricing on its term loan B, modified the issue price, extended the call protection and then freed up for trading on Monday, and Universal Services of America and Numericable surfaced in the secondary too.

In more happenings, Hostess moved some funds between its first- and second-lien term loans, firmed spreads at the low end of guidance and tightened original issue discounts, and Jarden Corp. increased its term debt amount, set tranche sizes and finalized issue prices.

Also, Garda World Security Corp. details emerged with launch, and CPI Card Group, Albany Molecular Research Inc., Emdeon Inc., ICON Health & Fitness, Electrical Components International Inc., PODS LLC and Graton Resort & Casino joined this week’s calendar.

Alliant reworked, trades

Alliant Insurance Services lowered pricing on its $1.34 billion seven-year covenant-light term loan B to Libor plus 350 basis points from Libor plus 400 bps, changed the original issue discount to 99.75 from talk of 99 to 99.5, extended the 101 soft call protection to one year from six months, set the MFN for life and removed the asset sale prepayment step-down, according to a market source.

As before, the term B has a 1% Libor floor.

The company’s $1.54 billion senior secured credit facility (B2/B) also includes a $200 million five-year revolver priced at Libor plus 350 bps, after flexing down from Libor plus 375 bps. This tranche has leverage-based step-downs in pricing and no Libor floor.

Recommitments were due at 2 p.m. ET on Monday, and with final terms in place the debt broke for trading late day, with the term loan quoted at 100 3/8 bid, 100 7/8 offered, a trader added.

Alliant lead banks

Morgan Stanley Senior Funding Inc., UBS AG, Jefferies Finance LLC, KKR Capital Markets LLC, MCS Capital Markets LLC, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading Alliant Insurance’s credit facility.

Proceeds will be used with $535 million of senior unsecured notes to help fund the purchase of a significant equity interest in the company by Stone Point Capital LLC.

Funds managed by Stone Point will become Alliant Insurance’s largest institutional shareholders, and the company’s existing shareholders, who include management and producers as well as funds affiliated with KKR, will remain significant shareholders in the business.

Closing is expected in mid-August.

Alliant Insurance is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Universal Services breaks

Universal Services of America’s credit facility freed to trade too, with both the $835 million seven-year first-lien covenant-light term loan and the $245 million eight-year second-lien covenant-light term loan seen at 99½ bid, par offered, according to a trader.

Pricing on the first-lien term loan, which includes a $55 million delayed-draw piece, is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The second-lien term loan, which includes a $15 million delayed-draw piece, is priced at Libor plus 850 bps with a 1% Libor floor, and was issued at a discount of 99. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

The delayed-draw term loans have a ticking fee of 50% of the margin starting 45 days post close, and expire after three months.

Universal Services revolver

In addition to the first-and second-lien term loans, Universal Services’ $1.21 billion credit facility includes a $130 million revolver.

During syndication, the first-lien term loan was upsized from $760 million, with the delayed-draw increased from $50 million, and pricing was set at the low end of the Libor plus 375 bps to 400 bps talk. Also, the second-lien term loan was downsized from $320 million, with the delayed-draw piece cut from $20 million, pricing was raised from talk of Libor plus 775 bps to 800 bps, and the call protection was modified from 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to fund the acquisition of Universal Services and Guardsmark by Warburg Pincus.

Universal Services is a provider of manned guarding and related services.

Numericable frees up

Numericable’s term debt also hit the secondary market, with the $550 million seven-year first-lien covenant-light term loan (Ba3/B+) quoted at 99 7/8 bid, 100 1/8 offered, a market source said.

Pricing on the U.S. term loan, as well as on a €300 million seven-year first-lien covenant-light term loan (Ba3/B+), is Libor/Euribor plus 325 bps with a 0.75% floor, and the debt was issued at an original issue discount of 99.75. There is 101 soft call protection for six months.

Last week, the total amount of term loan debt was increased from a size of €800 million-equivalent at launch and the discount was tightened from 99.5.

Credit Suisse and BNP Paribas Securities Corp. are the joint physical bookrunners on the deal that will repay revolver debt. Barclays, Credit Agricole, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Nomura and RBC are bookrunners too.

Numericable is a Lille, France-based cable operator. The borrowers are Numericable-SFR SA and Numericable US LLC.

Hostess sets changes

Back in the primary, Hostess lifted its seven-year first-lien covenant-light term loan to $925 million from $825 million, set pricing at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and moved the original issue discount to 99.75 from 99.5, according to a market source.

Also, the eight-year second-lien covenant-light term loan was trimmed to $300 million from $400 million, pricing firmed at Libor plus 750 bps, the tight end of the Libor plus 750 bps to 775 bps talk, and the discount was modified to 99.5 from 99, the source said.

Both term loans still have a 1% Libor floor, the first-lien loan still has 101 soft call protection for six months, and the second-lien loan still has call protection of 102 in year one and 101 in year two.

The company’s $1,325,000,000 credit facility also includes a $100 million revolver (B1/B+).

Recommitments were due at 5 p.m. ET on Monday, the source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., UBS AG, Morgan Stanley Senior Funding Inc., RBC Capital Markets and Nomura are leading the deal that will be used by the Kansas City, Mo.-based sweet baked goods company to refinance existing debt and fund a shareholder dividend.

Jarden revises deal

Jarden increased its new term loan debt to a total of $900 million from a total of $600 million, firmed the split as a fungible $300 million add-on term loan B-1 due Sept. 30, 2020 and a new $600 million seven-year term loan B-2, versus a split that was previously still to be determined, set the discount on the term loan B-1 at 99.75, the tight end of the 99.5 to 99.75 talk, and finalized the discount on the term loan B-2 at 99.25, the tight end of the 99 to 99.25 talk, a source said.

As before, pricing on all of the term loan debt is Libor plus 275 bps with no Libor floor, which matches pricing on the company’s existing term loan B-1, and all of the new debt, as well as the existing B-1 loan, are getting 101 soft call protection for six months.

Final commitments were due at 5 p.m. ET on Monday.

Barclays, Credit Suisse Securities (USA) LLC and UBS AG are leading on the deal.

Jarden buying Waddington

Proceeds from Jarden’s term loans will be used to help fund the roughly $1.35 billion acquisition of Waddington Group Inc. from Olympus Partners and other stockholders.

The funds from the upsizing of the term debt will be used for general corporate purposes, the source added.

Closing on the acquisition is expected in the third quarter, subject to customary conditions and regulatory approvals.

Jarden is a Boca Raton, Fla.-based diversified consumer products company. Waddington is a Covington, Ky.-based manufacturer and marketer of disposable tableware for commercial, foodservice and retail markets.

Garda holds call

Also in the primary, Garda World Security held its call on Monday, launching a $100 million add-on term loan with original issue discount talk of 99, according to a market source.

The add-on loan is priced in line with the existing term loan at Libor plus 300 bps with a 1% Libor floor, and all of the debt is getting 101 soft call protection for six months, the source said.

Commitments are due on Friday.

Jefferies Finance LLC is leading the deal that will be used to fund the acquisition of Aegis Group.

Closing on the acquisition is subject to customary conditions, including regulatory approvals.

Garda is a Montreal-based provider of business solutions and security services. Aegis is a London-based provider of highly specialized protective services.

CPI Card deal surfaces

CPI Card Group scheduled a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $475 million credit facility, a market source remarked.

The facility consists of a $40 million revolver and a $435 million term loan B, the source continued.

Goldman Sachs Bank USA, BNP Paribas Securities Corp. and Scotia Bank are leading the deal.

CPI Card Group is a Littleton, Colo.-based provider of payment solutions including card production, card personalization, mobile technologies and fulfillment services.

Albany Molecular on deck

Albany Molecular Research set a bank meeting for 9:30 a.m. ET on Wednesday to launch a $230 million credit facility (B1/B+), according to a market source.

The facility consists of a $30 million revolver and a $200 million term loan B, the source said.

Barclays is leading the deal that will be used to support the company’s acquisition of Gadea Grupo Farmaceutico and to repay revolver borrowings.

Albany Molecular is an Albany, N.Y.-based drug discovery services and manufacturing company.

Emdeon joins calendar

Emdeon scheduled a loan lender call for 10:30 a.m. ET on Tuesday, according to a market source, who said further details on the transaction are not yet available.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies Finance LLC, Mizuho and SunTrust Robinson Humphrey Inc. are leading the deal.

In early July, the company revealed that it received a commitment for an incremental senior secured term loan and senior unsecured bridge loans to help fund its roughly $910 million acquisition of Altegra Health Inc. from Parthenon Capital Partners.

The debt commitment combined with an equity commitment from Blackstone Capital Partners totals $805 million, and other funds for the transaction will come from cash on hand.

Closing on the acquisition is expected in the third quarter, subject to customary closing conditions, including expiration or early termination of the waiting period under the Hart-Scott-Rodino Act.

Emdeon is a Nashville-based provider of health care revenue and payment cycle management and clinical information exchange solutions. Altegra Health is a Miami Lakes, Fla.-based provider of technology-enabled, next generation payment solutions to health care providers.

ICON coming soon

ICON Health & Fitness emerged with plans to hold a bank meeting on Tuesday to launch $220 million in term loans, a source remarked.

The debt consists of a $160 million six-year covenant-light first-lien term loan and a $60 million covenant-light seven-year second-lien term loan, the source added.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

ICON is a Logan, Utah-based fitness equipment company.

Electrical Components add-on

Electrical Components scheduled a lender call for Tuesday to launch a $50 million add-on term loan B due May 2021, a market source said.

Bank of America Merrill Lynch is leading the deal that will be used to fund a dividend.

The company’s existing term loan B is priced Libor plus 475 bps with a step-down to Libor plus 450 bps when total net leverage is less than 3.5 times and a 1% Libor floor.

Electrical Components is a St. Louis-based manufacturer of wire harnesses and value-added assembly services for consumer appliance and specialty-industrial applications.

PODS readies deal

PODS will hold a lender call at 11 a.m. ET on Tuesday to launch a $50 million add-on term loan B and a repricing amendment of its existing $409 million term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. and Barclays are leading the senior secured deal.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Graton plans meeting

Graton Resort & Casino set a meeting for loan lenders for Tuesday, according to a market source, who said details on the purpose of the meeting not yet available.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, U.S. Bank, Capital One and Fifth Third Bank are leading the deal.

Graton Resort is a full-amenity gaming resort in Sonoma County, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.