Insight Global widens pricing; Blackhawk tightens from talk; Serta up 2 points

By Paul A. Harris

Portland, Ore., May 21 – In Monday's leveraged loan market Insight Global (IG Investments Holdings LLC) set pricing on its $1,083,000,000 seven-year first-lien term loan (B/B) at Libor plus 350 basis points, wider than talk of Libor plus 300 bps to 325 bps.

Blackhawk Network Holdings Inc. set pricing on its $1.35 billion seven-year covenant-light first-lien term loan (B1/B) at Libor plus 300 basis points, tighter than talk of Libor plus 325 bps to 350 bps.

The market has its focus keenly upon new issues at present, a trader said Monday, adding that 10-plus deals allocated last Friday.

In the secondary market, the Serta Simmons Bedding LLC loan was up 2 points since late last week, according to a loan trader who had the first-lien loan at 89¾ bid, 90¾ offered, and the second lien loan at 77¼ bid, 78¾ offered, on Monday, the source said.

Making reference to a conference call that took place late in the May 14 week, the trader said that investors appeared to be stepping into the Serta Simmons first-lien tranche, by ones and twos.

However investor interest in the second-lien tranche simply isn't there, the trader said.

Elsewhere, the daily cash flows of the dedicated bank loan funds were positive on Friday.

The loan funds saw $105 million of inflows on the day, the trader said.

Insight Global pricing widens

Insight Global (IG Investments Holdings LLC) set pricing on its $1,083,000,000 seven-year first-lien term loan (B/B) at Libor plus 350 bps, wider than talk of Libor plus 300 bps to 325 bps.

The 1% Libor floor and 99.5 original issue discount are unchanged from talk.

Commitments were due on Monday.

The loan is made up of a refinancing of an $896 million existing loan and a $188 million incremental loan.

Credit Suisse is the lead bank on the deal.

Proceeds will be used to refinance an existing $896 million term loan priced at Libor plus 350 bps with a 1% Libor floor while the incremental debt will be used to fund a distribution to shareholders.

Blackhawk prices below talk

Blackhawk Network Holdings Inc. set pricing on its $1.35 billion seven-year covenant-light first-lien term loan (B1/B) at Libor plus 300 basis points, tighter than talk of Libor plus 325 bps to 350 bps.

The 0% Libor floor and original issue discount of 99.5 were left unchanged.

However, the 25 bps step down on the coupon was modified so that it will take effect at 4 times gross first-lien leverage instead of at 0.5 times inside closing net first-lien leverage.

Terms on the $400 million eight-year covenant-light second-lien term loan (Caa1/CCC+) were left unchanged at a coupon of Libor plus 700 bps with a 0% Libor floor and a discount of 99, the source added.

The facility, backing the buyout of the company by Silver Lake and P2 Capital Partners, is expected to allocate on Tuesday afternoon.

Interior Logic prices at wide end

Interior Logic Group Holdings IV LLC priced its $400 million seven-year covenant-light term loan B (B2/B) at Libor plus 400 basis points, the wide end of price talk for a coupon of Libor plus 375 bps to 400 bps.

The 0% Libor floor and original issue discount of 99.5 were left unchanged.

The term loan has 101 soft call protection for six months, the source added.

Recommitments were due Monday.

Bank of America Merrill Lynch, Deutsche Bank, Jefferies, Credit Suisse, RBC and SunTrust are the lead arrangers on the deal.

Proceeds will be used to refinance existing debt and pay related fees and expenses in connection with the cashless merger of Littlejohn & Co.’s portfolio company Interior Specialists Inc. LLC, a provider of interior design, design center management and installation services, and Platinum Equity's portfolio company Interior Logic Group.

Atotech talk Libor plus 300 bps

Berin-based Atotech BV is talking its $200 million add-on term loan B due Jan. 31, 2024 at Libor plus 300 basis points with a 1% floor for Libor and a price of 99.75 to par.

Commitments are due Thursday.

Barclays and J.P. Morgan Securities LLC are the bookrunners on the deal.

Proceeds will be used to partially fund a distribution to shareholders and to pay related fees and expenses.

Netsmart tightens terms

Netsmart Inc. tightened pricing on its $167.5 million incremental first-lien term loan (B-) due April 2023 and the repricing of its existing $167 million second-lien term loan due October 2023.

The incremental loan is now offered at par instead of 99.75 previously, and the coupon on the second-lien repricing was trimmed to Libor plus 750 basis points from Libor plus 775 bps.

The incremental loan still has a coupon of Libor plus 375 bps with a 1% floor.

A parallel repricing of the $478 million existing first-lien term loan (B-) due April 2023 is unchanged, continuing to be offered at par and with the same coupon of Libor plus 375 bps with a 1% floor as the incremental tranche.

Other terms on the second-lien repricing are also unchanged, including an offer price of par and a 1% floor.

Golub Capital and KKR Capital Markets are the leads on the deal.

The commitment deadline is unchanged at May 23.

Renaissance shifts funds

Renaissance Learning moved funds between its first- and second-lien term loans and set final pricing.

The seven-year first-lien term loan (B-) was increased to $730 million from $705 million originally and priced at Libor plus 325 bps, the tight end of the Libor plus 325 bps to 350 bps talk.

The original issue discount was narrowed to 99.75 from 99.5, and the Libor floor of 0% was left unchanged.

Renaissance Learning correspondingly reduced its eight-year second-lien term loan (CCC) to $310 million from $335 million and set pricing at Libor plus 700 bps, the tight end of the Libor plus 700 bps to 725 bps talk.

The 0% Libor floor and 99 original issue discount were unchanged.

Commitments were due Monday.

Barclays, Jefferies, Macquarie, BMO and Nomura are the bookrunners on the buyout deal.

Rodan & Fields to launch Wednesday

Rodan & Fields, LLC will launch a new credit facility at a bank meeting scheduled for 10 a.m. ET on Wednesday.

Citigroup Global Markets Inc. is leading the financing.

Tekni-Plex moves up timing

Tekni-Plex Inc. moved up timing on its $65 million incremental covenant-light first-lien term loan (B3/B-) due October 2024 to 2 p.m. ET Tuesday from Wednesday.

The deal is in the market with original issue discount talk of 99.5.

Pricing on the incremental term loan matches existing term loan pricing at Libor plus 325 bps with a 25 bps leverage-based step-down and a 1% Libor floor.

Credit Suisse is the left lead.

Advanced Computer moves up timing

Advanced Computer Software moved up timing on its $341 million covenant-light first-lien term loan due May 31, 2024 and £244 million covenant-light first-lien term loan due May 31, 2024 to 5 p.m. ET Wednesday from Thursday.

The U.S. term loan is talked at Libor plus 500 bps to 525 bps with a 0% Libor floor and an original issue discount of 99 to 99.5, and the GBP term loan is talked at Libor plus 475 bps with a 0% Libor floor and a discount of 99.5, the source said.

Morgan Stanley and Goldman Sachs Bank are the joint lead arrangers and bookrunners on the refinancing deal.

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