Infoblox breaks; Ahead DB, American Residential reworked; Alliant, Bumble accelerated

By Sara Rosenberg

New York, Oct. 7 – Infoblox Inc. (Delta Topco Inc.) lowered spreads and updated original issue discounts on its first-and second-lien term loans, and the debt then made its way into the secondary market late in Wednesday’s session.

In other news, Ahead DB Holdings reduced the size of its first-lien term loan and added a bond offering to its capital structure, and American Residential Services LLC trimmed pricing on its first-lien term loan B and adjusted the original issue discount.

Also, Alliant Holdings Intermediate LLC accelerated the commitment deadline for its credit facilities and the consent deadline for its amendment request, and Bumble (Buzz Finco LLC) moved up the commitment deadline for its incremental term loan B.

Furthermore, Rough Country and APi Group Inc. released price talk with launch, and 1-800 Contacts Inc. (CNT Holdings I Corp.), Team Services Group and Russell Investment Management LLC joined this week’s primary calendar.

Infoblox flexes

Infoblox cut pricing on its $1.29 billion seven-year covenant-lite first-lien term B (B2/B-/B-) to Libor plus 375 basis points from Libor plus 400 bps and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

Also, the company reduced pricing on its $455 million eight-year covenant-lite second-lien term loan (Caa2/CCC/CCC) to Libor plus 725 bps from Libor plus 775 bps and revised the discount to 99.5 from talk in the range of 98.5 to 99, the source said.

Both term loans still have a 0.75% Libor floor. The first-lien term loan still has 101 soft call protection for six months, and the second-lien term loan still has hard call protection of 102 in year one and 101 in year two.

The company’s $1.945 billion of senior secured credit facilities also include a $200 million five-year revolver (B2/B-/B-).

Infoblox hits secondary

Commitments for Infoblox’s credit facilities were due at 1 p.m. ET on Wednesday and the debt freed to trade late day, with the first-lien term loan quoted at 99 5/8 bid, par 1/8 offered and the second-lien term loan quoted at par bid, 101 offered, a trader added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, BofA Securities Inc., Jefferies LLC, Macquarie Capital (USA) Inc., UBS Investment Bank and Mizuho are leading the deal.

The credit facilities will be used to fund the acquisition of a 50% equity stake in the company by Warburg Pincus, refinance existing debt and pay related fees and expenses. Existing private equity sponsor Vista Equity Partners will retain equal equity ownership.

Closing is expected in the fourth quarter.

Infoblox is a Santa Clara, Calif.-based provider of core networking and cybersecurity solutions.

Ahead DB restructures

Back in the primary market, Ahead DB scaled back its seven-year first-lien term loan to a range of $400 million to $425 million from $785 million and now plans to issue about $375 million of seven-year senior secured notes for which a virtual roadshow is expected to start on Tuesday, a market source said.

As before, the term loan is talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months.

The company’s credit facilities also include a $115 million revolver and a $235 million privately placed second-lien term loan.

RBC Capital Markets, Deutsche Bank Securities Inc., Barclays, KKR Capital Markets, Macquarie Capital (USA) Inc., Truist, Regions and TD Securities (USA) LLC are leading the deal that will help fund the buyout of the company by Centerbridge Partners LP from Court Square Capital Partners. With this transaction, Berkshire Partners LLC will purchase a minority stake in the company and there will be significant rollover from management.

Ahead is a Chicago-based IT solution provider of enterprise hardware and software.

American Residential revised

American Residential Services lowered pricing on its $470 million first-lien term loan B (B1/B) to Libor plus 350 bps from talk in the range of Libor plus 375 bps to 400 bps and moved the original issue discount to 99.5 from 99, according to a market source.

The term loan still has a 0.75% Libor floor.

J.P. Morgan Securities LLC, Jefferies LLC, KKR Capital Markets and Ares are leading the deal that will be used to help fund the acquisition of a majority stake in the company by GI Partners. Existing investor Charlesbank Capital Partners and management are also making significant new investments in the business.

Closing is expected in the fourth quarter, subject to customary conditions and regulatory approvals.

American Residential is a Memphis-based provider of residential heating, ventilation, air conditioning and plumbing services.

Alliant accelerated

Alliant Holdings moved up the commitment and consent deadline for its loan transaction to noon ET on Thursday from noon ET on Friday, a market source said.

The company is seeking $825 million of senior secured credit facilities (B2/B), split between a $400 million five-year revolver and a $425 million seven-year covenant-lite term loan B-3, and an amendment to its existing term loans.

Talk on the term loan B-3 is Libor plus 375 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Proceeds will be used with a $425 million senior secured notes offering, a $350 million add-on senior unsecured notes offering and cash on hand to make a special distribution to the company’s parent, Alliant Holdings LP, to complete acquisitions under letters of intent, and, if any proceeds remain, for general corporate purposes.

Parent company, Alliant, will use the distribution to repurchase certain equity interests, including equity interests owned by investment funds managed by an affiliate of Stone Point Capital LLC, management and employees.

Alliant amendment

In conjunction with the term loan financing, Alliant Holdings is asking to amend its existing $2.039 billion covenant-lite term loan B due May 10, 2025 and the $523 million covenant-lite term loan B-2 due May 10, 2025 to permit the recapitalization.

The amended term loan B will be priced at Libor plus 325 bps with no-step-down and a 0% Libor floor, and the amended term loan B-2 will remain priced at Libor plus 325 bps with a 0% Libor floor.

Both the term loan B and the term loan B-2 will get 101 soft call protection for one year.

Lenders are being offered a 25 bps amendment fee.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities Inc., Truist, BofA Securities Inc., Capital One, Goldman Sachs Bank USA, RBC Capital Markets, Fifth Third, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the financing.

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

Bumble tweaks timing

Bumble accelerated the commitment deadline for its $200 million senior secured incremental covenant-lite term loan B due Jan. 29, 2027 to 5 p.m. ET on Thursday from noon ET on Friday, according to a market source.

The incremental term loan is talked at Libor plus 325 bps to 350 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Allocations are expected on Friday, the source added.

Citigroup Global Markets Inc., Barclays, HSBC Securities (USA) Inc., RBC Capital Markets, SMBC and Blackstone Securities Partners are leading the deal that will be used with cash on hand to fund a distribution to shareholders.

The incremental term loan, to the extent necessary based on pricing in syndication, will be implemented as a separate tranche of term loans under the existing credit agreement from the initial term loans.

Bumble, also known as MagicLab, is a provider of online dating and social networking services.

Rough Country details

Rough Country held its lender call on Wednesday, launching a $401.2 million first-lien term loan (B) due May 25, 2025 talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Of the total term loan amount, $180 million is incremental debt that will be used to help fund a dividend to shareholders and $221.2 million is an existing term loan that is being extended by two years.

Commitments are due on Oct. 19, the source added.

Golub Capital is leading the deal.

Rough Country is a Dyersburg, Tenn.-based supplier of aftermarket suspension lift kits and components to the off-road SUV and light truck enthusiast market.

APi Group holds call

APi Group hosted a lender call at 4 p.m. ET on Wednesday to launch a non-fungible $250 million incremental senior secured covenant-lite term loan B (BB-) due October 2026 talked at Libor plus 275 bps with a 0% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, a market source said.

Citigroup Global Markets Inc. and U.S. Bank are leading the deal that will be used to replenish balance sheet cash and to pay transaction costs, fees and expenses.

In addition, the company is seeking an amendment to its credit agreement to add guarantors organized outside of the United States and Canada subject to certain agreed security principles and a guarantor coverage test of at least 85% of consolidated EBITDA.

Lenders are offered a 10 bps amendment fee.

Commitments and consents are due at noon ET on Oct. 14, the source added.

APi is a New Brighton, Minn.-based business services provider of safety, specialty and industrial services.

1-800 readies deal

1-800 Contacts set a lender call for 10 a.m. ET on Thursday to launch $1.38 billion of senior secured credit facilities, according to a market source.

The facilities consist of a $110 million revolver, a $930 million first-lien term loan B and a $340 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc., KKR Capital Markets and Jefferies LLC are leading the deal, with Morgan Stanley the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

The new debt will be used to help fund the buyout of the company by KKR from AEA Investors.

1-800 Contacts is a Draper, Utah-based seller of contact lenses.

Team Services on deck

Team Services Group scheduled a lender call for 10:30 a.m. ET on Thursday to launch $400 million of credit facilities, a market source remarked.

The facilities consist of a $30 million revolver, a $285 million seven-year covenant-lite first-lien term loan that has 101 soft call protection for six months, and an $85 million eight-year covenant-lite second-lien term loan that has call protection of 102 in year one and 101 in year two, the source added.

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

Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal that will be used to fund the acquisition of the company by Alpine Investors and co-investors.

Team Services is a provider of employment administration and risk management solutions that facilitate self-directed home care.

Russell joins calendar

Russell Investment Management emerged with plans to hold a lender call at 11 a.m. ET on Thursday to launch a $996 million senior secured first-lien term loan due June 2025, according to a market source.

Barclays is leading the deal that will be used to amend and extend by two years the maturity of the existing $996 million term loan due June 2023.

Russell is a Seattle-based asset manager.

Wheelabrator allocates

Wheelabrator Technologies Inc. (Granite Acquisition Inc.) allocated its $1,396,500,000 term loan B due Sept. 19, 2022 on Wednesday, a market source said.

Of the total term loan amount, $72.5 million is incremental debt and $1.324 billion is an extension of the existing term loan B from December 2021.

Pricing on the term loan B is Libor plus 375 bps with a 1% Libor floor. The incremental piece was sold at an original issue discount of 99.5. The existing money was issued at par.

Deutsche Bank Securities Inc., Barclays, Citizens, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and RBC Capital Markets are leading the deal.

Closing is expected on Friday.

Wheelabrator is a Portsmouth, N.H.-based owner and operator of waste-to-energy facilities and independent power-producing facilities.

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