Hostess, Jarden, Peacock Engineering, Precyse, Ascena Retail, EagleView Technology break

By Sara Rosenberg

New York, July 29 – Hostess Brands LLC’s credit facility made its way into the secondary market on Wednesday, with the first- and second-lien term loans quoted above their original issue discounts, and Jarden Corp., Peacock Engineering and Precyse Solutions LLC freed up as well.

In more happenings, Ascena Retail Group Inc. raised pricing on its term loan, adjusted the original issue discount and extended the call protection, and EagleView Technology Corp. firmed spreads on its first- and second-lien term loans, and then both of these deals broke for trading too.

Also, Asurion LLC upsized its first-lien term loan and set the issue price on its add-on second-lien debt, and Hill-Rom Holdings Inc. upsized its term loan B, set the spread at the low end of guidance and tightened the issue price.

Furthermore, Linxens reworked tranching under its first- and second-lien term loans and updated pricing on the first-lien debt, and Cast & Crew Entertainment Services moved up the commitment deadline on its credit facility.

Additionally, Party City Holdings Inc., Sitel Worldwide Corp., DTZ (DTZ U.S. Borrower LLC and DTZ Aus HoldCo Pty Ltd.), Albany Molecular Research Inc. and Jet Support Services Inc. came out with price talk with launch, and EMI Music Publishing, US LBM Holdings LLC and Amaya Gaming Group Inc. joined this week’s calendar.

Hostess hits secondary

Hostess’ credit facility freed up for trading on Wednesday, with the $925 million seven-year first-lien covenant-light term loan quoted at par 1/8 bid, par ½ offered and the $300 million eight-year second-lien covenant-light term loan quoted at par 3/8 bid, 101 3/8 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 350 basis points with a 25 bps step-down when first-lien leverage is below 4 times and a 1% Libor floor, and it was sold at an original issue discount of 99.75. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and was issued at a discount of 99.5. This tranche has call protection of 102 in year one and 101 in year two.

Recently, the first-lien term loan was upsized from $825 million, pricing firmed at the low end of the Libor plus 350 bps to 375 bps talk, the step-down was added, and the discount was revised from 99.5. The second-lien term loan was downsized from $400 million, the spread was set at the tight end of the Libor plus 750 bps to 775 bps talk, and the discount was modified from 99.

Hostess getting revolver

In addition to the first- and second-lien term loans, Hostess’ $1,325,000,000 credit facility includes a $100 million revolver (B1/B+).

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.

Proceeds will be used to refinance existing debt and fund a shareholder dividend.

Hostess is a Kansas City, Mo.-based sweet baked goods company.

Jarden tops OIDs

Jarden’s new term loan debt emerged in the secondary as well, with the fungible $300 million add-on term loan B-1 due Sept. 30, 2020 quoted at par ¼ bid, par ¾ offered and the new $600 million seven-year term loan B-2 quoted at par 1/8 bid, par 5/8 offered, a trader remarked.

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. The add-on term loan B-1 was sold at an original issue discount of 99.75, and the new term loan B-2 was issued at a discount of 99.25.

Previously, the total amount of term loan debt was increased from $600 million, the split between add-on B-1 and new B-2 tranches was determined, the discount on the term loan B-1 firmed at the tight end of the 99.5 to 99.75 talk, and the discount on the term loan B-2 finalized at the tight end of the 99 to 99.25 talk.

Barclays, Credit Suisse Securities 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.

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.

Peacock starts trading

Peacock Engineering’s credit facility broke too, with the $285 million seven-year first-lien term loan (B2/B+) seen at par bid, par ½ offered, a trader said.

Pricing on the term loan is Libor plus 425 bps with a step-down to Libor plus 400 bps when total leverage is below 4.25 times and a 1% Libor floor. The debt has 101 soft call protection for six months and was sold at an original issue discount of 99.5.

The company is also getting a $35 million five-year revolver (B2/B+) priced at Libor plus 425 bps with a step-down to Libor plus 400 bps when total leverage is below 4.25 times and no Libor floor. This tranche was issued at 99.5.

During syndication, the step-down was added to the term loan and revolver, the discount on the term loan was tightened from 99, and the MFN sunset was eliminated.

GE Capital Markets, RBC and BMO Capital Markets Corp. are leading the deal.

Peacock second-lien loan

Along with the revolver and first-lien term loan, Peacock Engineering is getting a $55 million second-lien term loan (Caa1/CCC+) that was privately placed.

Proceeds will be used to help fund an acquisition and recapitalization. The company is buying L&L Foods, an Anaheim, Calif.-based provider of turnkey procurement and packaging services.

Leverage is 4.2 times on a senior basis and 5 times on a total basis.

Peacock is a Geneva, Ill.-based contract packager servicing blue-chip consumer packaged goods companies.

Precyse frees up

Precyse Solutions’ credit facility also began trading, with the $110 million seven-year term loan quoted at 99 bid, 99½ offered, according to a trader.

Pricing on the term loan is Libor plus 475 bps with a 1% Libor floor, and it was sold at a discount of 99.

The company’s $130 million credit facility also includes a $20 million five-year revolver priced at Libor plus 475 bps with no Libor floor, and issued at a discount of 99.

GE Capital Markets is leading the deal that will be used to help fund the buyout of the company by Pamplona Capital Management.

Precyse is a Wayne, Pa.-based health information management solutions provider.

Ascena revises deal, trades

Ascena Retail Group widened pricing on its $1.8 billion seven-year covenant-light senior secured term loan B (Ba2/BB+) to Libor plus 450 bps from talk of Libor plus 350 bps to 375 bps, changed the original issue discount to 98 from 99.5 and extended the 101 soft call protection to one year from six months, according to a market source.

Also, the company increased amortization on the term loan to 1% in year one and 5% per annum thereafter, from 1% per annum, reduced the incremental allowance to $350 million from $700 million and removed the 12-month MFN sunset provision, the source said.

The term loan still has a 0.75% Libor floor.

Recommitments were due at 1 p.m. ET on Wednesday, and then the debt made its way into the secondary market, with levels seen by one trader at 98½ bid, 99½ offered, and by a second trader at 98 3/8 bid, 98 7/8 offered.

Goldman Sachs Bank USA and Guggenheim Securities LLC are leading the term loan B.

Ascena ABL revolver

With the term loan, Ascena is getting a $600 million five-year ABL revolver priced at Libor plus 125 bps to 150 bps based on excess availability with a 20 bps to 25 bps unused fee.

Proceeds from the term loan, ABL revolver borrowings and balance sheet cash will be used to help fund the acquisition of ANN Inc. and refinance some existing debt.

ANN is being bought for $37.34 in cash and 0.68 of a share of Ascena common stock in exchange for each share of ANN common stock. The transaction gives ANN an enterprise value of about $2 billion.

Closing is expected during the week of Aug. 17, subject to customary conditions, including the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and ANN shareholder approval.

Ascena is a Mahwah, N.J.-based specialty retailer offering clothing, shoes and accessories for missy and plus-size women. ANN is a New York-based women’s specialty retail fashion company.

EagleView updates terms

EagleView Technology set pricing on its $240 million seven-year first-lien covenant-light term loan B (B2/B) at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, and removed the leverage-based step-down, while leaving the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

Meanwhile, the $100 million eight-year second-lien covenant-light term loan (Caa2/CCC+) saw pricing firm at Libor plus 825 bps, the wide end of the Libor plus 800 bps to 825 bps talk, with the 1% Libor floor, discount of 98.5 and hard call protection of 102 in year one and 101 in year two remaining intact, the source said.

Along with the pricing updates, the MFN sunset provision was eliminated.

EagleView breaks

After terms finalized, EagleView’s credit facility began trading, with the first-lien term loan quoted at par bid, par ½ offered, and the second-lien term loan quoted at par bid, 101 offered, a trader said.

Proceeds will be used to help fund the buyout of the company by Vista Equity Partners.

Morgan Stanley Senior Funding and Nomura Securities International Inc. are leading the $360 million senior secured credit facility, which also includes a $20 million five-year revolver (B2/B) priced at Libor plus 400 bps with a leverage-based grid and no Libor floor.

Pricing on the revolver was increased from talk of Libor plus 375 bps at launch.

EagleView is a Bothell, Wash.-based technology provider of aerial imagery, data analytics and GIS solutions.

Asurion tweaks deal

Back in the primary, Asurion upsized its seven-year first-lien term loan to $2,725,000,000 from a revised amount of $2,715,000,000 and an initial size of $700 million, and left pricing at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99.5, a source remarked. There is still 101 soft call protection for six months.

As for the fungible $450 million add-on second-lien term loan, the original issue discount finalized at 99.5, the tight end of the 99 to 99.5 talk, with pricing remaining at Libor plus 750 bps with a 1% Libor floor. All of the company’s second-lien term loan debt is still getting call protection of 103 in year one and 101.5 in year two.

Bank of America Merrill Lynch, Credit Suisse Securities, Morgan Stanley Senior Funding, Barclays, Deutsche Bank Securities and Goldman Sachs Bank USA are leading the deal that will be used to refinance an existing $250 million term loan and for general corporate purposes, including buying minority equity, and, due to the upsizings, to repay term B-1 borrowings.

Asurion is a Nashville-based provider of technology protection services.

Hill-Rom reworked

Hill-Rom lifted its seven-year term loan B to $800 million from $725 million, finalized pricing at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, and changed the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan B has a 0.75% Libor floor and 101 soft call protection for six months.

The company’s now $2.3 billion senior secured credit facility (Ba2) also includes a $500 million revolver and a $1 billion term loan A.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citizens Bank and PNC Capital Markets LLC are leading the deal that will be used to help fund the acquisition of Welch Allyn Inc. for about $1,625,000,000 in cash and around 8.1 million newly issued shares of Hill-Rom common stock. The total transaction value is $2.05 billion.

Closing is expected before the end of September, subject to regulatory approval and other customary conditions.

Hill-Rom is a Chicago-based medical technology company. Welch Allyn is a Skaneateles Falls, N.Y.-based manufacturer of medical diagnostic equipment.

Linxens restructures

Linxens increased its U.S. seven-year first-lien covenant-light term loan to $550 million from $500 million, downsized its euro seven-year first-lien covenant-light term loan to €200 million from €230 million, lowered pricing on the euro tranche to Euribor plus 450 bps from Euribor plus 475 bps, added a 25 bps pricing step-down to both tranches when first-lien leverage is 4.25 times, and revised the original issue discount on both tranches to 99.5 from 99, a source said.

Pricing on the U.S. first-lien term loan remained at Libor plus 400 bps with a 1% Libor floor, the euro first-lien term loan still has no floor, and all of the first-lien debt still has 101 soft call protection for six months.

As for the eight-year second-lien covenant-light term loan, it was modified to include a $200 million tranche and a €35 million tranche, from just being described as a $256 million tranche at launch, the source continued.

The second-lien term is priced at Libor/Euribor plus 850 bps with a 1% Libor floor and a discount of 99 and has call protection of 102 in year one and 101 in year two.

Linxens ticking fee

Along with the updates to Linxens’ first- and second-lien term loans, a ticking fee on the debt was outlined as half the margin from days 31 to 60 and the full margin thereafter, the source remarked.

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

Credit Suisse Securities, Deutsche Bank Securities, HSBC Securities (USA) Inc., Natixis and Nomura are leading the deal that will be used to help fund the buyout of the company by CVC Capital.

Linxens is a France-based designer and manufacturer of smart card connectors.

Cast & Crew accelerated

Cast & Crew Entertainment Services’ moved up the commitment deadline on its $430 million credit facility to 5 p.m. ET on Friday from Tuesday, a market source said.

The facility consists of a $65 million five-year revolver (B2/B+), a $270 million seven-year first-lien term loan (B2/B+) and a $95 million eight-year second-lien term loan (Caa2/CCC+).

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

RBC Capital Markets, Credit Suisse Securities, Deutsche Bank Securities and Societe Generale are leading the debt that will fund the company’s buyout by Silver Lake from ZM Capital.

First-lien leverage is 4.4 times, and total leverage is around 6 times.

Cast & Crew is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry.

Party City holds call

Also in the primary, Party City hosted its call on Wednesday, launching its $1.34 billion seven-year covenant-light term loan B (B1/B) with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on Aug. 5, the source added.

Deutsche Bank Securities, Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Mizuho, Morgan Stanley Senior Funding, MUFG, Sumitomo and Wells Fargo Securities LLC are leading the term loan.

Along with the term loan, the company plans on getting a $540 million asset-based revolver.

Proceeds will be used to refinance existing debt, including ABL borrowings, a $1,094,000,000 term loan and a portion of the company’s 8 7/8% notes.

Party City is a Rockaway, N.J.-based designer, manufacturer and distributor of party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery.

Sitel talk surfaces

Sitel Worldwide disclosed price talk on its first- and second-lien term loans in connection with its morning bank meeting, according to a market source.

The $365 million seven-year first-lien term loan (B) is talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and the $120 million eight-year second-lien term loan (B-) is talked at Libor plus 875 bps to 900 bps with a 1% Libor floor, a discount of 98 to 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $545 million credit facility also includes a $60 million revolver (B).

Commitments are due on Aug. 11, the source added.

Societe Generale and BNP Paribas Securities Corp. are leading the deal, with Societe Generale left on the first-lien debt and BNP left on the second-lien debt.

Proceeds will help fund the buyout of the Nashville-based provider of customer care outsourcing services by Groupe Acticall from Onex Corp.

DTZ comes to market

DTZ launched its $1,805,000,000 first-lien term loan due Nov. 4, 2021 with talk of Libor plus 375 bps with a 1% Libor floor and 101 soft call protection for six months, according to a market source.

Of the total term loan amount, $1,055,000,000 is incremental debt that is offered at a discount of 99.5 and will be used to fund the acquisition of Cushman & Wakefield, and the remainder will be used to reprice the company’s existing first-lien term loan from Libor plus 450 bps with a 1% Libor floor.

UBS AG, JPMorgan, Bank of America Merrill Lynch, Credit Suisse Securities, Citigroup Global Markets Inc., Morgan Stanley Senior Funding, Credit Agricole Securities (USA) Inc., Mizuho Securities USA Inc. and HSBC Securities are leading the deal.

The company also plans on getting a $175 million incremental multi-currency revolver due Nov. 4, 2019, bringing the total revolver size to $375 million.

Commitments are due on Aug. 12, and closing on the acquisition is expected by year-end, subject to customary conditions.

DTZ is a Chicago-based property services company. Cushman & Wakefield is a New York-based real estate services company. The combined company will operate under the Cushman & Wakefield brand.

Albany Molecular guidance

Albany Molecular Research came out with talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $200 million six-year term loan B that launched with a morning meeting, a source remarked.

The company’s $230 million credit facility (B1/B+) also includes a $30 million five-year revolver.

Commitments are due on Aug. 12, the source added.

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

Net senior secured leverage is 1.7 times, and net total leverage is 4.1 times.

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

Jet Support launches

Jet Support Services launched with a bank meeting its $175 million six-year term loan with talk of Libor plus 600 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments are due on Aug. 12, the source added.

UBS AG is leading the deal that will be used to refinance existing debt and fund a dividend.

Jet Support Services is a Chicago-based provider of hourly cost maintenance programs for aircraft engines and airframes.

EMI Music readies deal

EMI Music Publishing set a lender call for 10:30 a.m. ET on Thursday to launch a $1.17 billion credit facility, according to a market source.

The facility consists of a $50 million five-year revolver and a $1.12 billion seven-year first-lien term loan talked with a 1% Libor floor and 101 soft call protection for six months, the source said.

UBS AG and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt, pay a dividend and add cash to the balance sheet for future debt repayment.

EMI Music is a New York-based music publisher.

US LBM plans meeting

US LBM will hold a bank meeting at 1 p.m. ET in New York on Thursday to launch a $975 million credit facility, a market source said.

The facility consists of a $175 million ABL revolver, a $650 million seven-year first-lien covenant-light term loan with a 1% Libor floor and 101 soft call protection for six months and a $150 million eight-year second-lien covenant-light term loan with a 1% Libor floor and call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due at 5 p.m. ET on Aug. 12.

Credit Suisse Securities is the left lead on the deal that will be used to help fund the buyout of the company by Kelso & Co. BlackEagle Partners LLC and certain members of the company’s management will be investors alongside of Kelso.

US LBM is a Green Bay, Wis.-based owner of building material distribution businesses.

Amaya on deck

Amaya Gaming Group scheduled a lender call for 11 a.m. ET on Thursday to launch a $400 million-equivalent add-on U.S. and euro first-lien covenant-light term loan due August 2021, a market source said.

Pricing on the add-on is Libor plus 400 bps on the U.S. piece and Euribor plus 425 bps on the euro piece, with both having a 1% floor and an original issue discount that is still to be determined, the source continued. This spread and floor matches existing U.S. and euro first-lien term loan pricing.

Commitments are due at noon ET on Aug. 6, the source added.

Deutsche Bank Securities, Macquarie Capital, Goldman Sachs Bank USA and Barclays are leading the loan that will be used with cash to partially repay the company’s existing second-lien term loan.

In connection with the add-on, the company is seeking an amendment to its first-lien term loan.

Amaya is a Pointe-Claire, Quebec-based provider of gaming products and services. The borrowers are Amaya Holdings BV and Amaya (US) Co-Borrower LLC.

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