Ellucian upsizes; Xerium sets talk; new deals from Greatbatch, SiteOne, Physio-control

By Paul A. Harris

Portland, Ore., Sept. 18 – The LCDX22 bank loan index finished 1/8 of a point lower on Friday at 100¾ bid, 101¾ offered, according to a hedge fund manager.

The cash flows of the dedicated bank loan funds were negative for the most recent reporting period, according to a market source.

The funds sustained $350 million of outflows for the week to Wednesday’s close.

In the primary market Ellucian (Sophia LP) shifted $100 million of proceeds to its term loan B from its junk bond offer, increasing the size of the loan to $1.56 billion.

Xerium Technologies Inc. talked its $495 million seven-year covenant-light term loan B (B2/B) with a 500 basis points spread to Libor with a 1% Libor floor at 99.

And there were new deal announcements from Greatbatch Ltd., SiteOne Landscape Supply LLC and Physio-Control International, Inc.

Ellucian upsizes loan

Dealers rejiggered the financing for the buyout of Ellucian (Sophia LP) on Friday, shifting $100 million of proceeds to the term loan B from the junk bond offer, according to a market source.

The financing is now coming in the form of a $1.56 billion seven-year covenant-light term loan B, upsized from $1.46 billion, and $490 million of eight-year senior notes (Caa2/CCC+), downsized from $590 million.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Barclays, Jefferies Finance LLC, BMO Capital Markets Corp. and Deutsche Bank Securities Inc. are the leads on the loan.

As reported, price talk on the loan is Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99.5. The loan has 101 soft call protection for six months.

Ellucian’s $1.71 billion credit facility (B2/B+), upsized from $1.61 billion, also features a $150 million five-year revolver.

Proceeds will be used fund the buyout of the company by TPG Capital and Leonard Green Partners from Hellman & Friedman and JMI Equity.

Xerium sets price talk

Price talk surfaced Friday on Xerium Technologies’ $495 million seven-year covenant-light term loan B (B2/B), according to a market source.

The deal is talked with a 500-bps spread to Libor with a 1% Libor floor at 99. There are 12 months of soft call protection at 101.

Commitments are due Sept. 30.

Bank of America Merrill Lynch, Jefferies Finance LLC and Macquarie Capital (USA) Inc. are the arrangers on the deal.

Proceeds will be used to refinance existing debt.

Greatbatch brings $1.53 billion

Greatbatch plans to roll out $1,525,000,000 of credit facilities on Tuesday, according to a market source.

The institutional portion of the deal is a $1,025,000,000 seven-year term loan B which comes with a 1% Libor floor at 99 OID. It comes with six months of soft call protection at 101 and 1% annual amortization rate.

Credit Suisse Securities (USA) LLC is lead left for the term loan B.

The credit facilities also include a $200 million five-year revolver priced at Libor plus 325 bps and subject to a leverage grid, and a $300 million six-year term loan A.

M&T Bank is left lead for the revolver and term loan A.

Proceeds will be used to fund the acquisition of Lake Region Medical, a Wilmington, Mass., provides outsourced manufacturing and engineering services to the medical device industry.

SiteOne sets meeting

SiteOne Landscape Supply LLC scheduled a bank meeting on Tuesday for its $350 million seven-year first-lien term loan B, according to a market source.

UBS Investment Bank is the arranger.

The operating company borrower is John Deere Landscapes LLC, which is to be renamed SiteOne Landscape Supply.

The parent borrower is JDA Holding LLC, which is to be renamed SiteOne Holding LLC.

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

Physio-Control lender meeting

Arranger Citigroup Global Markets Inc. plans to reach out to lenders during a Monday conference call on behalf of Physio-Control ahead of a new loan deal, according to a market source.

The call is scheduled to get underway at 10:30 a.m. ET.

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