CPI, Tibco, ConvergeOne, Sky, StandardAero, Jefferies break; CareerBuilder, SnapAv revised

By Sara Rosenberg

New York, July 26 – CPI International Inc.’s credit facilities freed to trade on Wednesday, with the first-and second-lien term loans quoted above their issue prices, and Tibco Software Inc., ConvergeOne Holdings Corp. and Sky Betting & Gaming emerged in the secondary market as well.

Also, StandardAero Aviation Holdings Inc. tightened the original issue discount on its incremental term loan and Jefferies Finance LLC changed the issue price on its term loan, and then both of these deals broke for trading too.

In more happenings, CareerBuilder LLC widened the spread and issue price on its term loan while also extending the call protection, a SnapAV lowered pricing and original issue discount on its term loan, and Cision and Alorica Inc. accelerated the commitment deadlines on their term loans.

Furthermore, PQ Corp. and Certara disclosed talk with launch, and Atlantic Broadband Finance LLC, LifeMiles Ltd., Sundial Brands LLC, Avast Software, Travel Leaders Group LLC, Lumileds (Bright Bidco BV) and USI Inc. joined this week’s primary calendar.

CPI hits secondary

CPI International’s credit facilities began trading on Wednesday, with the $470 million seven-year first-lien term loan quoted at par ¼ bid, par ¾ offered and the $100 million eight-year second-lien term loan quoted at par bid, 101 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 350 basis points with a step-down to Libor plus 325 bps at 0.75 times lower total leverage and a 1% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 1% 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.

On Monday, the first-lien term loan was upsized from $450 million, pricing firmed at the low end of the Libor plus 350 bps to 375 bps talk, the step-down was added and the discount was tightened from 99.5. Also, the second-lien term loan was downsized from $120 million, pricing was cut from talk of Libor plus 750 bps to 775 bps and the discount was changed from 99.

CPI getting revolver

In addition to the first- and second-lien term loans, CPI’s $605 million of credit facilities include a $35 million five-year revolver.

UBS Investment Bank is leading the deal that will be used to help fund the buyout of the company by Odyssey Investment Partners from Veritas Capital.

CPI is a Palo Alto, Calif.-based provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications.

Tibco frees up

Tibco Software’s roughly $1.86 billion term loan broke too, with levels quoted at par ½ bid, 101 offered, a trader said.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Tuesday, the spread on the term loan firmed at the low end of the Libor plus 350 bps to 375 bps talk.

KKR Capital Markets and Jefferies LLC are leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Tibco is a Palo Alto, Calif.-based infrastructure and business intelligence software company.

ConvergeOne tops OID

ConvergeOne’s fungible $75 million incremental covenant-light term loan B (B2/B) due June 2024 also emerged in the secondary market, with levels seen at 99½ bid, par offered, according to a trader.

Pricing on the incremental term loan is Libor plus 475 bps with a 1% Libor floor, in line with existing term loan pricing, and the new debt was sold an original issue discount of 99.25. The loan has 101 soft call protection until June 2018.

On Tuesday, the incremental term loan was upsized from $60 million.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to fund a tuck-in acquisition and for general corporate purposes.

ConvergeOne is an Eagan, Minn.-based provider of communications solutions.

Sky Betting begins trading

Sky Betting & Gaming’s credit facilities broke as well, with the $450 million seven-year term loan quoted at par ½ bid, 101½ offered, a market source remarked.

Pricing on the U.S. term loan is Libor plus 350 bps with a 0% Libor floor and it was issued at par.

The company’s £845 million equivalent of credit facilities (B2/B) also include a £35 million revolver, and a £465 million seven-year term loan priced at Libor plus 425 bps with a 0% Libor floor and issued at par.

Both term loans have 101 soft call protection for six months.

During syndication, pricing on the U.S. term loan was reduced from talk of Libor plus 375 bps and the size was modified from $300 million, pricing on the sterling term loan was lowered from talk of Libor plus 450 bps, and the issue price on both term loans was tightened from revised talk in the range of 99.5 to 99.75 and initial talk of just 99.5.

Goldman Sachs Bank USA, Barclays and NatWest Markets are leading the deal that will be used to refinance an existing £340 million term loan B and to make a one-off distribution to shareholders.

Sky Betting, a CVC portfolio company, is an online betting and gaming company.

StandardAero revised, trades

StandardAero Aviation modified the original issue discount on its $652 million incremental term loan (B2/B-) due July 7, 2022 to 99.875 from 99.5, a market source said.

As before, pricing on the incremental term loan is Libor plus 375 bps with a 1% Libor floor, in line with existing term loan pricing, and the term loan has 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday and by late afternoon the loan began trading with levels quoted at par 1/8 bid, par 5/8 offered, the source added.

Jefferies LLC, Nomura and Macquarie Capital are the arrangers on the deal.

The add-on term loan and a concurrent amendment would allow the potential acquisition of Vector Aerospace Holdings SAS, an aerospace maintenance, repair and overhaul company, from Airbus SE.

Existing term loan lenders are offered a 25 bps amendment fee.

StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services.

Jefferies tweaked, breaks

Jefferies Finance tightened the original issue discount on its $250 million seven-year senior secured term loan (Ba2/B+/BB) to 99.75 from 99.5, according to a market source.

The term loan is still priced at Libor plus 300 bps with a 1% Libor floor and has 101 soft call protection for six months.

With final terms in place, the term loan freed to trade and was quoted at par bid before moving up to par ¼ bid, 101 offered, traders added.

Jefferies LLC, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used with $400 million in seven-year senior notes to repay an existing term loan and for general corporate purposes.

Jefferies is a New York-based commercial finance company.

CareerBuilder modified

CareerBuilder lifted pricing on its $350 million six-year covenant-light first-lien term loan to Libor plus 675 bps from Libor plus 600 bps, moved the original issue discount to 97 from talk in the range of 98 to 99 and extended the 101 soft call protection to one year from six months, while leaving the 1% Libor floor unchanged, according to a market source.

The company’s $400 million of credit facilities (B2/B) also include a $50 million revolver.

Commitments were due at 2 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by Apollo Global Management LLC and Ontario Teachers’ Pension Plan Board. The company’s current owners, Tegna Inc., Tribune National Marketing Co. LLC and McClatchy Interactive West, will retain a minority interest.

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

CareerBuilder is a Chicago-based end-to-end human capital solutions company focused on helping employers find, hire and manage great talent.

SnapAV flexes lower

SnapAV trimmed pricing on its $265 million seven-year term loan to Libor plus 525 bps from Libor plus 550 bps and revised the original issue discount to 99.5 from 99, according to a market source.

In addition, the company removed from documentation the two-year long maturity MFN carve-out and the $10 million early maturity incremental basket, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $315 million of senior secured credit facilities (B2/B) also include a $50 million five-year revolver.

Recommitments are due at 10 a.m. ET on Thursday, the source added.

UBS Investment Bank and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Hellman & Friedman LLC from General Atlantic.

Closing is expected in the third quarter.

SnapAV is a Charlotte, N.C.-based manufacturer of audio, video, networking, power and surveillance products for residential and commercial A/V integrators.

J.D. Power changes OIDs

J.D. Power tightened the original issue discount on its $140 million incremental first-lien term loan (B2/NA/BB) due September 2023 to 99.75 from 99.5 and on its $40 million incremental second-lien term loan (Caa2/NA/BB-) due September 2024 to 99.5 from 99, a market source remarked.

As before, pricing on the incremental first-lien loan is Libor plus 425 bps with a 1% Libor floor and the debt has 101 soft call protection for six months, and pricing on the second-lien loan is Libor plus 850 bps with a 1% Libor floor and the debt has call protection of 102 in year one and 101 in year two.

Commitments were due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is leading the $180 million in incremental term loans that will be used to fund an acquisition and a shareholder distribution.

In connection with this transaction, existing lenders are being offered a 12.5 bps consent fee.

J.D. Power is a Costa Mesa, Calif.-based consumer data and analytics company.

Cision moves deadlines

Cision accelerated the commitment deadline on its $1.25 billion U.S. and euro senior secured covenant-light first-lien term loan B (B2/B) due June 2023 to close of business on Friday from Aug. 2 as the deal is oversubscribed, according to a market source.

The loan is talked at Libor/Euribor plus 450 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

The euro piece of the term loan will have a minimum size of €250 million.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance an existing first-lien term loan, repay $38 million of revolver borrowings and $76 million of second-lien term loan debt, add $4 million of cash to the balance sheet, and cover fees and expenses.

Total debt to pro forma adjusted EBITDA will be 4.7 times and net debt will be 4.5 times.

Cision is a Chicago-based media intelligence company.

Alorica accelerated

Alorica moved up the commitment deadline on its $301 million first-lien term loan (B1/BB-) due June 30, 2022 to noon ET on Thursday from 5 p.m. ET on Thursday, a market source said.

Talk on the term loan is Libor plus 375 bps with a step-down to Libor plus 350 bps, a 0.75% Libor floor and a par issue price, and the loan has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 0.75% Libor floor.

Alorica is an Irvine, Calif.-based provider of outsourced customer and financial care solutions.

PQ details surface

Also in the primary market, PQ Corp. held its lender call on Wednesday, launching a $920.8 million senior secured covenant-light term loan (B2/B+) due Nov. 4, 2022 and a €281.2 million senior secured covenant-light term loan (B2/B+) due Nov. 4, 2022, according to a market source.

Talk on the U.S. term loan is Libor plus 350 bps and talk on the euro term loan is Euribor plus 325 bps, and both loans are talked with a 25 bps step-down at 4.75 times total net leverage, a 1% floor, a par issue price and 101 soft call protection for six months, the source said.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing U.S. term loan down from Libor plus 425 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 400 bps with a 1% floor.

Commitments from existing lenders are due at noon ET on Aug. 2 and from new lenders are due at noon ET on Aug. 3, and closing is expected during the week of Aug. 7, the source added.

PQ is a Malvern, Pa.-based producer of specialty inorganic performance chemicals and catalysts.

Certara reveals talk

Certara came out with price talk of Libor plus 425 bps to 450 bps with a 1% Libor floor and an original issue discount of 99 on its $250 million seven-year senior secured first-lien term loan (B) that launched with a morning bank meeting, a market source said.

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

Commitments are due on Aug. 4, the source added.

The company’s credit facilities also include a $20 million five-year senior secured revolver (B) and a $100 million pre-placed eight-year HoldCo unsecured term loan.

Jefferies LLC and Golub are leading the deal that will be used to help fund the buyout of the company by EQT from Arsenal Capital Partners for $850 million. Arsenal Capital will retain a minority ownership stake in the company.

Certara is a Princeton, N.J.-based provider of technology-driven decision support solutions for drug development.

Atlantic Broadband on deck

Atlantic Broadband set a bank meeting for 12:30 p.m. ET in New York on Thursday to launch $1.85 billion of credit facilities, according to a market source.

The facilities consist of a $150 million revolver and a $1.7 billion seven-year covenant-light first-lien term loan that has a 0% Libor floor and 101 soft call protection for six months, the source said.

Ticking fees for the term loan will be on offer.

Commitments are due on Aug. 11, the source added.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, CIBC and BMO Capital Markets are leading the deal that will be used with a $315 million equity investment from Caisse de depot et placement du Quebec to fund the acquisition of the MetroCast cable systems from Harron Communications LP for $1.4 billion.

Closing is expected in January 2018, subject to regulatory approvals and customary conditions.

Atlantic Broadband, a subsidiary of Cogeco Communications Inc., is a Quincy, Mass.-based cable operator. The new debt will be non-recourse to Cogeco.

LifeMiles joins calendar

LifeMiles emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Thursday to launch a $350 million five-year term loan B talked at Libor plus 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Deutsche Bank Securities Inc., UBS Investment Bank and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund a distribution to shareholders and related fees and expenses.

LifeMiles is a Latin American coalition loyalty program and the exclusive operator of Avianca’s frequent flyer program.

Sundial readies deal

Sundial Brands will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch $315 million of senior secured credit facilities, a market source said.

The facilities consist of a $35 million five-year revolver and a $280 million seven-year term loan B, the source added.

Goldman Sachs Bank USA, KeyBanc Capital Markets and UBS Investment Bank are leading the deal that will be used to refinance existing debt, fund a distribution to shareholders and pay related fees and expenses.

Sundial Brands is an Amityville, N.Y.-based beauty company.

Avast coming soon

Avast Software scheduled a lender call for 10 a.m. ET on Thursday to launch a fungible $50 million incremental covenant-light term loan B (Ba3) due September 2023 and a fungible €50 million incremental covenant-light term loan B (Ba3) due September 2023, according to a market source.

Talk on the incremental U.S. term loan is Libor plus 325 bps and talk on the incremental euro term loan is Euribor plus 350 bps, and both tranches are talked with a 1% floor, a par issue price and 101 soft call protection through Sept. 30, the source said.

Commitments are due at 5 p.m. ET on Monday.

Credit Suisse Securities (USA) LLC is leading the deal that will be used for general corporate purposes.

Avast is a Prague-based maker of security software.

Travel Leaders sets call

Travel Leaders Group will hold a lender call at 2 p.m. ET on Thursday to launch a $100 million incremental senior secured term loan B and repricing of its existing $433,912,500 senior secured term loan B, a market remarked.

Morgan Stanley Senior Funding Inc., UBS Investment Bank and J.P. Morgan Securities LLC are leading the deal.

The incremental term loan B will be used to fund certain merger & acquisition transactions.

Travel Leaders is a Plymouth, Minn.-based travel agency.

Lumileds plans loan

Lumileds set a lender call for 3 p.m. ET on Thursday to launch a $240 million add-on covenant-light first-lien term loan B due June 2024, according to a market source.

Like the existing term loan B, the add-on loan is priced at Libor plus 450 bps with a 1% Libor floor and has 101 soft call protection until December 2017, the source said.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund a $235 million distribution to equity holders.

With this transaction, the company will seek an amendment to its existing credit agreement.

Lumileds, an Apollo portfolio company, is a supplier of LED components and automotive lighting.

USI deal emerges

USI scheduled a call for 10 a.m. ET on Thursday to launch a new loan transaction to investors, a market source said.

Citigroup Global Markets Inc. is the left lead on the deal.

USI is a Valhalla, N.Y.-based insurance brokerage and consulting firm.

U.S. Security allocates

In other news, U.S. Security Associates Inc. allocated its fungible $125 million add-on term loan B (B2/B) due July 2023 and repriced $447 million term loan B (B2/B) due July 2023, according to a market source.

Pricing on the term loan debt is Libor plus 400 bps with a 1% Libor floor and it includes 101 soft call protection for six months. The add-on loan was sold at an original issue discount of 99.9 and the repricing was issued at par. Existing lenders were offered a 10 bps amendment fee on current positions.

During syndication, the add-on term loan was upsized from $100 million and the discount was tightened from 99.5, and pricing on all of the term loan debt firmed at the low end of the Libor plus 400 bps to 425 bps talk.

Goldman Sachs Bank USA, Jefferies LLC and KeyBanc Capital Markets LLC are leading the deal for the Roswell, Ga.-based safety and security services company.

The add-on will be used to principally pay down 11% senior notes, to finance a small tuck-in acquisition and to add cash to the balance sheet, and the repricing will take the existing term loan down from Libor plus 500 bps with a 1% Libor floor.

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