Vivid Seats, MedRisk emerge in secondary; Caliber Collision trades higher; Solera revised

By Sara Rosenberg

New York, Feb. 26 – Vivid Seats Ltd. ended up upsizing its first-lien term loan and widening the spread and original issue discount, and then, on Friday, the debt made its way into the secondary market above the revised issue price.

In more happenings, MedRisk Inc.’s credit facility freed up as well during the session, following a pricing increase on the term loan and a downsizing of the revolver, and Caliber Collision’s term loan strengthened from its recent breaking levels.

Furthermore, Solera Holdings Inc. upsized its term loan B, set pricing at the high end of guidance, widened the issue price and sweetened the call protection, and HCA Holdings Inc. surfaced with plans to bring a term loan B-6 to market during the week of Feb. 29.

Vivid Seats reworked

Vivid Seats upsized its six-year first-lien term loan (B2/B+) to $253 million from $240 million, raised pricing to Libor plus 600 basis points from talk of Libor plus 550 bps to 575 bps and changed the original issue discount to 93 from 98 before wrapping syndication, according to a market source.

As before, the loan has a 1% Libor floor and 101 soft call protection for six months.

Previously in the syndication process, the maturity of the term loan was shortened from seven years, amortization was increased to 5% per annum from 1% per annum, the incremental freebie allowance was reduced to $30 million from $35 million, the excess cash flow sweep was revised to 75% with step-downs from 50% with step-downs, and the starter basket for available amount was eliminated.

Do to all the revisions, the term loan was oversubscribed by the close of syndication, the source said.

Vivid Seats trades

With final terms in place, Vivid Seats’ first-lien term loan freed up for trading on Friday, and levels were quoted at 93¼ bid, 94 offered, a trader remarked.

RBC Capital Markets and SG Americas Securities LLC are the leads on the deal that is being obtained in connection with the company’s strategic partnership with Vista Equity Partners.

The term loan upsizing was done to fund the wider original issue discount, the source added.

Vivid Seats is a Chicago-based secondary ticket marketplace for live sports, concerts and theater events.

MedRisk hits secondary

MedRisk’s credit facility began trading, too, with the $202.5 million seven-year term loan quoted at 99 bid, par offered, a trader said.

Pricing on the term loan is Libor plus 525 bps, after flexing from Libor plus 500 bps, a source said. The tranche has a 1% Libor floor and 101 soft call protection for six months, and was sold at a discount of 99.

The company’s $217.5 million senior credit facility also includes a $15 million five-year revolver that was downsized during syndication from $25 million, the source continued.

Antares Capital is leading the deal that will be used with $80 million of mezzanine financing to support a significant minority investment by TA Associates in the company. The current management team will retain a majority stake in the company.

Closing and funding is scheduled for Tuesday, the source added.

MedRisk is a King of Prussia, Pa.-based provider of outpatient physical medicine network services to the U.S. workers’ compensation industry.

Caliber Collision rises

Caliber Collision’s $685 million funded term loan due November 2019, which includes a $111 million add-on, was seen trading at 99¾ bid, par ½ offered on Friday afternoon, up from Thursday’s breaking levels of 99 bid, par offered, a trader remarked.

Pricing on the term loan is Libor plus 525 bps with a step-down to Libor plus 500 bps based on leverage and a 1% Libor floor. The debt has 101 soft call protection for one year and the add-on was sold at an original issue discount of 99.

The company is also getting a $125 million delayed-draw term loan and a $50 million revolver.

During syndication, pricing on the term loan was lifted from talk of Libor plus 475 bps with a leverage-based step-up to Libor plus 500 bps, the delayed-draw term loan was upsized from $100 million and the revolver was downsized from $75 million.

Antares Capital is leading the deal that will be used to fund acquisitions.

Caliber Collision, an OMERS Private Equity portfolio company, is a Lewisville, Texas-based operator of automotive collision repair centers.

BWIC/OWIC responses due

Also in the secondary market, bids were due at 10:30 a.m. ET on Friday on a roughly $88.5 million Bid Wanted In Competition and offers were due at the same time on a $42.9 million Offer Wanted in Competition, according to traders. And, bids were due at 11:30 a.m. ET on a roughly $79 million BWIC.

The $88.5 million BWIC included 22 issuers, such as Ascena Retail Group Inc., EP Energy LLC, Granite Acquisitions Inc., Ipreo Holdings LLC, Payless Inc., Securus Technologies Holdings Inc. and Smart & Final Inc.

As for the OWIC, there were 13 issuers, including Acadia Healthcare Co. Inc., Granite Acquisition Inc., MRC Global, SRAM LLC and Windstream Corp., traders said.

Lastly, the $79 million BWIC included about 52 issuers, such as Aramark Corp., Capital Automotive LP, Hertz Corp., Infor Inc., KAR Auction Services Inc., Newsday LLC, Sabre Inc., VNU Inc. and West Corp.

Solera changes surface

Back in the primary market, Solera raised its seven-year U.S. and euro senior secured term loan B to $2.2 billion equivalent from $1.9 billion equivalent, set pricing at Libor/Euribor plus 475 bps, the high end of the Libor/Euribor plus 450 bps to 475 bps talk, moved the original issue discount to 97 from 98 and extended the 101 soft call protection to one year from six months with the exception for dividend recapitalization deleted, according to a market source. The debt still has a 1% floor.

Also, the 12-month MFN sunset was removed, the incremental freebie was reduced to $300 million from $475 million and the EBITDA grower was eliminated, the unlimited restricted payments basket was reduced to 4.75 times total net leverage from 5.25 times, the unlimited investment basket was reduced to 5.25 times total net leverage from 5.75 times, and the excess cash flow sweep was changed to 50% with step-downs to 25% at 2.5 times first-lien secured leverage, from 2.75 times, and 0% at 2 times first-lien secured leverage, from 2.25 times.

Additionally, the general basket for investments was cut to $150 million from $210 million with grower, the general basket for debt was reduced to $150 million from $210 million with grower, the starter basket on the Available Amount basket was trimmed to $50 million from $140 million, and the basket for dividends on Designated Preferred Stock was removed, the source continued.

Solera deadline

Recommitments for Solera’s term loan B are due at noon ET on Monday, the source remarked, adding that pricing is expected that day as well.

The company’s now $2.5 billion senior secured credit facility (Ba3/B) also includes a $300 million revolver.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Jefferies Finance LLC, Macquarie Capital (USA) Inc., Nomura Securities International Inc. and UBS AG are leading the deal.

Proceeds from the credit facility, bonds, over $3 billion in equity and cash on hand will be used to fund the buyout of the company by Vista Equity Partners for $55.85 per share, or $6.5 billion, including Solera’s existing net debt.

Closing is expected during the week of Feb. 29.

Solera is a Westlake, Texas-based provider of software and services to the automobile insurance claims processing industry.

HCA on deck

In more primary news, HCA Holdings set a lender call for Monday to launch a $2 billion term loan B-6, a market source said.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal.

HCA is a Nashville-based for-profit operator of health care facilities.

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