Switch breaks; McAfee/FireEye, Viad, SVP updates emerge; Atlantic, Tekni-Plex accelerated

By Sara Rosenberg

New York, July 26 – Switch saw its term loan B make its way into the secondary market on Monday, with levels quoted above its original issue discount.

Meanwhile, in the primary market, McAfee Enterprise/FireEye Products updated original issue discount talk on its incremental first-lien term loan B, and Viad Corp. widened the spread and issue price on its term loan B.

Also, SVP Worldwide increased the size of its term loan B, raised pricing, modified the original issue discount and sweetened the call protection, and Atlantic Broadband (Cogeco Financing 2 LP) and Tekni-Plex Inc. (Trident TPI Holdings Inc.) moved up the commitment deadlines for their term loans.

In addition, UDG Healthcare/Huntsworth, Standard Industries Inc., Waterlogic Group Holdings Ltd., Midcoast (East Texas) LLC, Ring Container Technologies Group, Ardent Health Services (AHP Health Partners Inc.), Wahoo Fitness Holdings LLC and Eyemart Express LLC released price talk with launch.

Furthermore, Bally’s Corp., Colibri, Avolon, Cloudera Inc. and Eastman Tire Additives joined this week’s primary calendar.

Switch frees up

Switch’s $400 million seven-year term loan B began trading, with levels quoted at par 3/8 bid by one trader and at par ¼ bid, 101 offered by another trader.

Pricing on the term loan is Libor plus 200 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 200 bps to 225 bps talk and the discount was tightened from 99.5.

BMO Capital Markets, Wells Fargo Securities LLC, Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used to amend and extend an existing term loan B due 2024.

Switch is a Las Vegas-based developer and operator of data centers.

McAfee/FireEye updated

Switching to the primary market, McAfee Enterprise/FireEye Products modified original issue discount talk on its $925 million incremental first-lien term loan B (B2) due 2028 to 99.5 from talk in the range of 99 to 99.5, according to a market source.

The incremental term loan is priced at Libor plus 500 bps with a 0.75% Libor floor.

Commitments continue to be due at 5 p.m. ET on Tuesday, the source added.

The company is also getting a $175 million second-lien term loan (Caa2) that has been pre-placed.

UBS Investment Bank, Jefferies LLC, BofA Securities Inc., HSBC Securities (USA) Inc. and KKR Capital Markets are leading the deal that will help fund the $1.2 billion acquisition of FireEye Products by a consortium led by Symphony Technology Group from FireEye Inc. Symphony plans to combine FireEye with McAfee Enterprise.

Closing is expected by the end of the fourth quarter, subject to regulatory approvals and customary conditions.

McAfee Enterprise is a provider of device-to-cloud cybersecurity solutions. FireEye Products is a provider of network, e-mail, endpoint and cloud security products.

Viad widens pricing

Viad lifted pricing on its $400 million term loan B (B3/B+) to Libor plus 500 bps from Libor plus 450 bps and revised the original issue discount to 98 from 99, a market source said.

As before, the term loan has a 0.5% Libor floor and 101 soft call protection for six months.

Recommitments are due at 12:30 p.m. ET on Tuesday, the source added.

BofA Securities Inc., BMO Capital Markets, KeyBanc Capital Markets and Truist are leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

Viad is a Phoenix-based provider of experiential leisure travel and live events and marketing experiences.

SVP reworked

SVP Worldwide lifted its seven-year term loan B to $370 million from $350 million, raised pricing to Libor plus 675 bps from talk in the range of Libor plus 550 bps to 575 bps and revised the original issue discount talk to a range of 92 to 94 from 98, according to a market source.

Also, the call protection on the term loan was changed to non-callable for one year, then a hard call of 103 in year two and 101 in year three from a 101 soft call for six months, the source said.

The term loan still has a 0.75% Libor floor.

Recommitments were due at 4 p.m. ET on Monday, the source added.

BofA Securities Inc. is leading the deal that will be used to help fund the buyout of the company by Platinum Equity and the funds from the upsizing will cover the original issue discount.

Closing is expected in the third quarter.

SVP is a Nashville-based sewing machine company.

Atlantic Broadband accelerated

Atlantic Broadband revised the commitment deadline for its $900 million seven-year incremental senior secured first-lien term loan B (B1/BB) to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, a market source said.

The term loan is talked at Libor plus 275 bps with a 0.5% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, CIBC, BMO Capital Markets, BofA Securities Inc. and National Bank of Canada are leading the deal that will be used with cash on hand to fund the $1.125 billion acquisition of WideOpenWest Inc.’s broadband systems in Ohio and to pay fees and expenses.

Closing is expected in the first quarter of fiscal 2022, subject to regulatory approvals and other customary conditions.

Net debt to adjusted EBITDA is anticipated to be 5x.

Atlantic Broadband, a subsidiary of Cogeco Communications Inc., is a Quincy, Mass.-based cable operator.

Tekni-Plex tweaks timing

Tekni-Plex accelerated the commitment deadline for its $705 million seven-year incremental first-lien term loan (B2/B-) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, according to a market source.

Talk on the term loan is Libor plus 400 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, BMO Capital Markets and Jefferies LLC are leading the deal that will be used to fund the acquisition of Grupo Phoenix and an additional tuck-in acquisition.

Tekni-Plex is a Wayne, Pa.-based provider of specialty packaging solutions. Grupo Phoenix is a manufacturer of rigid packaging.

UDG proposed terms

UDG Healthcare/Huntsworth held its lender call on Monday morning and announced price talk on its $1.94 billion seven-year first-lien term loan B (B1/B) and $470 million euro equivalent seven-year first-lien term loan B (B1/B), according to a market source.

Talk on the U.S. term loan is Libor plus 400 bps to 425 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, and talk on the euro term loan is Euribor plus 400 bps to 425 bps with a 0% floor and a discount of 99.5, the source said. Both loans have 101 soft call for six months.

Commitments are due at noon ET on Aug. 5.

The company’s credit facilities also include a $400 million five-year revolver (B1/B) and a £330 million pre-placed eight-year second-lien term loan.

UDG lead banks

JPMorgan Chase Bank and Citigroup Global Markets Inc. are the physical bookrunners on UDG/Huntsworth’s credit facilities, with JPMorgan the left lead on the U.S. loan and Citigroup the left lead on the euro loan. Deutsche Bank is a lead bookrunner. Bank of Ireland, Barclays, HSBC, ING, Jefferies LLC and RBC Capital Markets are bookrunners. JPMorgan is the administrative agent.

Proceeds will be used to help fund the buyout of Dublin-based UDG by Clayton, Dubilier & Rice for £10.80 per share and combination with London-based Huntsworth, an existing CD&R portfolio company, to refinance certain existing debt at Huntsworth and UDG and to pay related fees and expenses.

UDG/Huntsworth is a provider of medical communications, marketing, advisory and packaging services to pharma and biotech clients.

Standard Industries guidance

Standard Industries launched on its morning call its $2.5 billion seven-year covenant-lite first-lien term loan B (Baa3/BBB-) with price talk of Libor plus 225 bps to 250 bps with a 0% Libor floor and an original issue discount of 99.5, a market source remarked.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Aug. 5, the source added.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and JPMorgan Chase Bank are leading the deal that will be used to fund a distribution to Standard Industries Holdings Inc. for the acquisition W.R. Grace & Co. for $70.00 per share in cash. The transaction is valued at about $7 billion.

Closing on the acquisition is expected in the fourth quarter, subject to customary conditions, including approval by W.R. Grace shareholders and the receipt of regulatory approvals.

Standard Industries is a New York-based manufacturer of roofing products. W.R. Grace is a Columbia, Md.-based specialty chemical company.

Waterlogic launches

Waterlogic came out with price talk on its $400 million seven-year senior secured covenant-lite first-lien term loan B (B3/B) and $400 million equivalent euro seven-year senior secured covenant-lite first-lien term loan B (B3/B) with its morning call, according to a market source.

The U.S. term loan is talked at Libor plus 425 bps with a 0.5% Libor floor and an original issue discount of 99.5, and the euro term loan is talked at Euribor plus 375 bps to 400 bps with a 0% floor and a discount of 99.5, the source said. Both term loans have 101 soft call protection for six months.

The company is also getting a $125 million six-year revolver.

Commitments are due at 5 p.m. ET on Aug. 4.

Waterlogic use of proceeds

Waterlogic will use the new credit facilities, along with $60 million of new equity from the sponsors, to refinance existing debt, fund add-on acquisitions, and pay transaction fees and expenses.

Citigroup Global Markets Inc. and Goldman Sachs are the global coordinators and joint bookrunners on the deal, with Citigroup the left lead on the U.S. loan and Goldman the left lead on the euro loan. HSBC, SMBC and Societe Generale are joint bookrunners. HSBC is the agent.

Pro forma for the transaction and near-term bolt-on acquisitions, gross total leverage will be 5.2x and net total leverage will be 5.1x, based on LTM May 2021 adjusted pro forma EBITDA of $163 million.

Waterlogic is a designer, manufacturer, distributor and service provider of products for the water dispensing industry.

Midcoast details emerge

Midcoast (East Texas) launched on its morning call a $400 million seven-year senior secured term loan B (B2) talked at Libor plus 500 bps to 525 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Aug. 5, the source added.

Citigroup Global Markets Inc., ING and Investec are leading the deal that will be used to repay an existing term loan and fund a shareholder distribution.

Closing is expected in mid-August.

Midcoast, a portfolio company of ArcLight Capital Partners, is a provider of midstream services.

Ring Container holds call

Ring Container Technologies hosted a lender call at 11 a.m. ET, launching a $770 million seven-year term loan B (B2/B) talked at Libor plus 375 bps to 400 bps with a 0.5% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Aug. 4, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance existing debt and fund a dividend.

Ring Container is an Oakland, Tenn.-based manufacturer of plastic containers.

Ardent comes to market

Ardent Health Services launched with a lender call during the session a $900 million seven-year term loan B (B) talked at Libor plus 350 bps to 375 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Aug. 4, the source added.

BofA Securities Inc., Barclays and JPMorgan Chase Bank are leading the deal that will be used to refinance existing term loans.

Ardent is a Nashville, Tenn.-based provider of comprehensive, cost-effective healthcare and related services.

Wahoo Fitness talk

Wahoo Fitness released talk of Libor plus 525 bps to 550 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $225 million seven-year term loan B (B2/B+) that launched with a call in the afternoon, according to a market source.

Prior to the call, the term loan was said to be sized at $200 million.

Commitments are due at noon ET on Aug. 6, the source added.

RBC Capital Markets is the left lead on the deal that will be used to help fund the buyout of the company by Rhone Group and, due to the upsizing, to add cash to the balance sheet. Wahoo’s current investor, Norwest Equity Partners, will continue to own a minority investment in the company.

Closing is expected in the third quarter.

Pro forma for the transaction, the company’s total gross and net leverage will be 2.9x and 2.5x, respectively.

Wahoo is an Atlanta-based provider of fitness technology for indoor cycling and endurance training.

Eyemart guidance

Eyemart Express launched on its afternoon call its $455 million six-year senior secured term loan (B1/B-) at talk of Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, a market source said.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on Aug. 5.

Barclays is the left lead on the deal that will be used to refinance the company’s existing debt.

Eyemart is a Farmers Branch, Tex.-based optical retailer.

Bally’s on deck

Bally’s set a lender call for 10 a.m. ET on Tuesday to launch a $1.445 billion seven-year covenant-lite term loan B, according to a market source.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Barclays, Citizens Bank, Truist, Capital One and Fifth Third are leading the deal that will be used with $2 billion of unsecured debt to help fund the acquisition of Gamesys Group plc, a London-based online gaming operator. Deutsche Bank is the administrative agent.

Bally’s is a Providence, R.I.-based casino-entertainment company.

Colibri readies loan

Colibri scheduled a lender call for 11 a.m. ET on Wednesday to launch a fungible $55 million add-on term loan B, a market source remarked.

RBC Capital Markets is leading the deal that will be used to support an acquisition in the education space.

Pricing on the company’s existing $350 million term loan B is Libor plus 500 bps with a 0.75% Libor floor.

Gridiron Capital is the sponsor.

Colibri is a St. Louis-based provider of online learning solutions for professional education.

Avolon joins calendar

Avolon will hold a lender call at 11 a.m. ET on Tuesday to launch a $672 million term loan B-5 due December 2027 talked at Libor plus 225 bps with a 0.5% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Natixis, BNP Paribas Securities Corp. and Truist are leading the deal that will be used to reprice an existing term loan B-5 down from Libor plus 250 bps with a 0.75% Libor floor. Morgan Stanley is the administrative agent.

Commitments are due from existing lenders by noon ET on Thursday and from new lenders by noon ET on Friday, the source added.

Avolon is a Dublin-based aircraft lessor.

Cloudera sets call

Cloudera scheduled a lender call for 11 a.m. ET on Wednesday to launch its previously announced $1.64 billion first-lien term loan and $500 million second-lien term loan, a market source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two, the source added.

Based on the commitment letter, the company is also expected to get a $250 million revolver.

JPMorgan Chase Bank, BofA Securities Inc., KKR Capital Markets, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, BNP Paribas Securities Corp., Barclays, Citigroup Global Markets Inc., Credit Agricole, MUFG and Sumitomo are leading the deal, with JPMorgan left on the first-lien loan and BofA left on the second-lien loan.

Proceeds will be used with equity to fund the buyout of the company by Clayton, Dubilier & Rice and KKR for $16.00 in cash per share. The transaction is valued at $5.3 billion.

Closing is expected in the second half of this year, subject to Cloudera shareholder and antitrust approvals.

Cloudera is a Santa Clara, Calif.-based enterprise data cloud company.

Eastman Tire on deck

Eastman Tire Additives set a lender call for 10 a.m. ET on Wednesday to launch a $475 million term loan B, according to a market source.

RBC Capital Markets, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and Mizuho Bank are leading the deal that will be used to help fund the buyout of the company by One Rock Capital Partners LLC from Eastman Chemical Co.

Closing is expected in the second half of this year, subject to regulatory approvals and customary conditions.

Eastman Tire is a supplier of tire additives.

Rough Country allocates

In other news, Rough Country allocated its $810 million of credit facilities, consisting of a $50 million revolver (B1/B-), a $585 million covenant-lite first-lien term loan (B1/B-) and a $175 million covenant-lite second-lien term loan (Caa1/CCC), according to a market source.

Pricing on the first-lien term loan is Libor plus 350 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 675 bps with a 0.75% Libor floor and was issued at a discount of 99.5. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $555 million, pricing was lowered from revised talk of Libor plus 375 bps and initial talk in the range of Libor plus 375 bps to 400 bps and the discount was changed from 99.5. Also, the second-lien term loan was downsized from $205 million, pricing was trimmed from Libor plus 700 bps and the discount firmed at the tight end of the 99 to 99.5 talk.

Rough Country buyout

Proceeds from Rough Country’s credit facilities will be used to help fund its acquisition by TSG Consumer Partners from Gridiron Capital. Upon closing, Gridiron Capital and Rough Country management will remain significant investors in the company.

Golub Capital and Jefferies LLC are leading the debt.

Closing is expected on Wednesday.

Rough Country is a Dyersburg, Tenn.-based provider of aftermarket performance-enhancing products and accessories to the truck, Jeep and SUV enthusiast market.

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