TransUnion upsized loan hits secondary; Amaya dips; Huntsman, Global Payments revise deals

By Sara Rosenberg

New York, March 23 – TransUnion LLC came to market with an incremental term loan B-2, upsized the offering and then freed up for trading on Wednesday afternoon, and Amaya Inc.’s first-lien term loan traded lower as news surfaced that the company’s chairman and chief executive officer is being charged with insider trading.

In more happenings, Huntsman International LLC modified the original issue discount on its term loan B, added a springing maturity and moved up the commitment deadline, and Global Payments Inc. removed the Libor floor from its term loan B.

Furthermore, Atlantic Power LP (APLP Holdings LP) released price talk on its term loan B in connection with its bank meeting.

TransUnion launches, breaks

TransUnion went out to investors Wednesday morning with a $100 million incremental covenant-light term loan B-2 (BB-) due April 2021, and then upsized the loan to $150 million before allocating later in the day, according to a market source.

Pricing on the incremental loan is Libor plus 275 basis points with a 0.75% Libor floor, which matches existing term loan B-2 pricing, and the new debt was sold at an original issue discount of 98.8.

Commitments were due at 3 p.m. ET on Wednesday, and following the deadline, the incremental loan broke for trading with levels quoted at 99 bid, 99¾ offered, another source added.

Deutsche Bank Securities Inc. is leading the debt that will be used to pay down revolver drawings.

TransUnion is a Chicago-based provider of information management and risk management services.

Amaya softens

Also in the secondary market, Amaya’s first-lien term loan weakened after the company said in a news release that David Baazov, chairman and chief executive officer, is being charged by the Autorite des marches financiers, the securities regulatory authority in the Province of Quebec, for improper trading, a market source said.

Post-news, the first-lien term loan was quoted anywhere from 92½ to 93 bid, and 94½ to 95 offered, down from Tuesday’s levels in the 94½ to 95 bid area and 95 5/8 to 96¼ offered area, the source continued.

The charges against Baazov include aiding with trades while in possession of privileged information, influencing or attempting to influence the market price of Amaya securities and communicating privileged information.

The press release went on to say that Baazov denies the allegations against him, and Amaya believes they are without merit and expects Baazov to be fully exonerated.

Amaya is a Pointe-Claire, Quebec-based provider of technology-based products and services in the gaming and interactive entertainment industries.

Huntsman changes emerge

Back to the primary market, Huntsman tightened the original issue discount on its $550 million seven-year senior secured term loan B to 99.5 from 99 and left pricing at Libor plus 350 bps with a 0.75% Libor floor, according to a market source.

Also a springing maturity was added to the term loan B for senior notes due 2020, 2021 and 2022, under which, if 91 days prior to the scheduled maturity of the senior notes, the sum of cash/cash equivalents, unused revolver availability and unused receivables financing availability is not greater than the sum of the then outstanding amount of senior notes plus $200 million, the term loan will mature on such date, the source remarked.

As before, the term loan has 101 soft call protection for six months.

Huntsman accelerates deadline

Commitments for Huntsman’s term loan B were due at 5 p.m. ET on Wednesday, the source continued. The deadline was moved up from noon ET on Thursday.

Citigroup Global Markets Inc. is the lead arranger on the deal, and J.P. Morgan Securities LLC is the administrative agent.

Proceeds will be used to refinance term loan B debt due in 2017 and term loan C debt due in 2016.

Huntsman, a The Woodlands, Texas-based manufacturer and marketer of differentiated chemicals, is expected to close on the term loan B by the end of this month.

Global Payments tweaks loan

Global Payments eliminated the 0.75% Libor floor from its $1,045,000,000 seven-year covenant-light term loan B (Ba2/BBB-), a market source said, adding that the deal is well oversubscribed.

As before, the loan is priced at Libor plus 350 bps with a step-down to Libor plus 325 bps at 3.25 times total leverage and an original issue discount of 99.5 and includes 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Wednesday and allocations are targeted for Thursday.

Bank of America Merrill Lynch, MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Fifth Third Bank and Barclays are leading the deal that will be used to help fund the acquisition of Heartland Payment Systems Inc. for about $4.3 billion. Consideration for the transaction will consist of 0.6687 of a share of Global Payments stock and $53.28 for each share of Heartland stock at closing.

Closing is expected in Global Payments’ fiscal 2016 fourth quarter, subject to regulatory approval and customary conditions, and approval by Heartland’s shareholders.

Global Payments is an Atlanta-based provider of payment technology services. Heartland is a Princeton, N.J.-based payment processor.

Atlantic Power sets talk

Atlantic Power held its bank meeting on Wednesday morning, launching its $700 million seven-year term loan B with price talk of Libor plus 450 bps to 475 bps with a 1% Libor floor and an original issue discount of 98, according to a market source.

As previously reported, the term loan has 101 soft call protection for one year.

The company’s $910 million senior secured credit facility also includes a $210 million five-year revolver.

Commitments are due on April 5, the source said.

Goldman Sachs Lending Partners LLC and Bank of America Merrill Lynch are the joint bookrunners on the deal and joint lead arrangers with RBC Capital Markets, MUFG and Wells Fargo Securities LLC.

Proceeds will be used to refinance an existing roughly $473 million term loan and $210 million revolver, to redeem C$67.3 million 6.25% convertible debentures due in March 2017 and C$75.8 million 5.6% convertible debentures due in June 2017, to fund other potential initiatives to reshape the company’s capital structure and for general corporate purposes.

Atlantic Power is a Dedham, Mass.-based owner and operator of power generation assets.

Survey Sampling wraps syndication

In other news, Survey Sampling International LLC completed syndication of its fungible $30 million add-on first-lien term loan in line with talk, a source remarked.

Pricing on the add-on term loan is Libor plus 500 bps with a 1% Libor floor, which matches existing first-lien term loan pricing, and the add-on was sold at an original issue discount of 99.

Allocations are expected later this week or early next week, the source added.

Antares Capital is leading the deal that will be used for acquisition-related purposes.

Survey Sampling is a Shelton, Conn.-based provider of data solutions and technology for consumer and business-to-business research.

PDC readies allocations

Syndication on PDC Brands’ $40 million add-on term loan closed, and allocations are targeted for later this week or early next week, a market source said.

Pricing on the add-on loan firmed in line with talk at Libor plus 500 bps with a 1% Libor floor and an original issue discount of 98.5.

Antares Capital is leading the loan that will be used to fund a tack-on acquisition.

With the add-on, the company is lifting pricing on its existing term loan to Libor plus 500 bps with a 1% Libor floor from Libor plus 450 bps with a 1% Libor floor.

PDC Brands, formerly known as Parfums de Coeur, is a Stamford, Conn.-based beauty, personal care and wellness company.

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