Allnex, Cypress Semiconductor update deals, break; Acelity sets talk on extension proposal

By Sara Rosenberg

New York, June 3 – Allnex (Allnex Sarl and Allnex USA Inc.) increased the size of its U.S. term loan B, decreased the size of its euro term loan B and set the spread on all of the debt at the tight end of revised guidance before freeing up for trading on Friday.

Furthermore, Cypress Semiconductor Corp. revised the size of its term loan B, added a pricing step-down and readjusted the original issue discount, and then it too broke for trading, and Acelity LP Inc. released details on its amended and extended term debt with launch.

Also, AlliedUniversal (USAGM Holdco LLC), Alorica Inc., Verso Corp., Life Time Fitness Inc. (LTF Merger Sub Inc.), Petco Animal Supplies Inc., PolyOne Corp., Veritas Technologies Corp. and Americold Realty Operating Partnership LP joined the near-term new issue calendar.

Allnex restructures

Allnex raised its U.S. covenant-light first-lien seven-year term loan B to $698.2 million from $575 million, split between a $398.2 million B-2 tranche and a $300 million B-3 tranche, according to a market source.

Also, the company trimmed its euro covenant-light first-lien seven-year term loan B to €730 million from €760 million and finalized pricing on all of the term loans at Libor/Euribor plus 425 basis points, the low end of revised talk of Libor/Euribor plus 425 bps to 450 bps and down from initial talk of Libor/Euribor plus 475 bps to 500 bps, the source said.

The term loans have a 0.75% floor and an original issue discount of 99.5, after being modified earlier in syndication from a 1% floor and discount talk of 98.5 to 99.

Additionally, the loans include 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Barclays and ING are leading the deal.

Allnex starts trading

On Friday afternoon, following the receipt of recommitments, Allnex’s U.S. loans broke for trading, with the strip of B-2 and B-3 debt quoted at par bid, 100½ offered, a trader said.

Proceeds the term loans will be used with cash on the balance sheet to fund the acquisition of Nuplex Industries Ltd., a manufacturer of resins used in paints, coatings and structural materials, for NZ$5.43 cash per share, to refinance existing Allnex and Nuplex debt, to pay related fees and expenses and, due to the additional term loan B funds being raised, to fund working capital purposes, eliminating a planned revolver draw at closing.

The transaction is subject to some customary conditions including regulatory and shareholder approvals.

Allnex is a Brussels-based supplier of resins and additives for architectural, industrial, protective, automotive and special-purpose coatings and inks.

Cypress reworked

Cypress Semiconductor changed its five-year term loan B size to $450 million from a revised amount of $400 million and an initial size of $700 million, added a 25-bps step-down in pricing at less than 3 times net total leverage, and moved the original issue discount to 98.5 from revised talk of 98 and initial talk of 98 to 99, a market source said.

The loan is priced at Libor plus 550 bps with a 1% Libor floor, and has 101 soft call protection for one year.

Previously in syndication, pricing on the term loan B was lifted from Libor plus 500 bps, the call protection was extended from six months, the maturity was shortened from seven years and amortization was changed to 5% in years one, two and three and 7.5% in years four and five, from 1% per annum.

Cypress frees up

With final terms in place, Cypress’ term loan B made its way into the secondary market, and levels were quoted at 99 bid, 99¾ offered, a trader remarked.

Bank of America Merrill Lynch, Barclays and Credit Suisse Securities (USA) LLC are leading the loan that will be used to help fund the $550 million acquisition of Broadcom Corp.’s Wireless Internet of Things business.

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

Cypress is a San Jose, Calif.-based manufacturer of mixed-signal integrated circuits.

Acelity discloses terms

In more happenings, Acelity held its lender call on Friday, launching a maturity extension of its $1,903,000,000 term loan E-1 and its $273 million euro-equivalent term loan E-1 to November 2020 from May 4, 2018, according to a market source.

The extended U.S. loan is talked at Libor plus 400 bps and the extended euro loan is talked at Euribor plus 425 bps, with both having a 1% floor, an original issue discount of 99.75 and 101 soft call protection for six months, the source said.

Current pricing on the U.S. loan is Libor plus 350 bps with a 1% Libor floor and current pricing on the euro loan is Euribor plus 375 bps with a 1% floor.

Commitments are due on Thursday, the source added.

Bank of America Merrill Lynch is the left lead on the deal.

Acelity is a San Antonio, Texas-based advanced wound care and regenerative medicine company.

AlliedUniversal coming soon

AlliedUniversal set a bank meeting for 3 p.m. ET in New York on Monday to launch $1.68 billion of new loans, consisting of a $170 million add-on revolver, a $1.26 billion incremental first-lien term loan due July 28, 2022 and a $250 million delayed-draw first-lien term loan, according to a market source.

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

Commitments are due on June 17.

Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets and Societe Generale are leading the deal.

AlliedBarton/Universal merging

Proceeds from AlliedUniversal’s bank debt will be used to fund the company’s creation through the merger of AlliedBarton Security Services, a portfolio company of Wendel, and Universal Services of America, a portfolio company of Warburg Pincus and Partners Group, and to fund potential add-on acquisitions.

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

At closing, Wendel will receive about 33% of the shares of AlliedUniversal, Warburg Pincus will get about 33% of the shares and Partners Group will have about 17%.

AlliedBarton is a provider of security services. Universal Services is a Santa Ana, Calif.-based security company and a provider of janitorial solutions, as well as safety and emergency preparation services.

Alorica on deck

Alorica scheduled a bank meeting for 12:30 p.m. ET in New York on Tuesday to launch a $450 million six-year first-lien term loan B that has 101 soft call protection for one year and a maximum gross leverage covenant, a market source remarked.

Commitments are due on June 21.

The company’s $1.12 billion credit facility (BB) is also expected to include a $225 million revolver and a $445 million term loan A.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Bank of the West, BNP Paribas Securities Corp. and Wells Fargo Securities LLC provided the debt commitment that will fund the acquisition of Expert Global Solutions from One Equity Partners.

Closing is expected in the third quarter, subject to customary conditions, including regulatory requirements.

Alorica is an Irvine, Calif.-based provider of services, including customer relationship management and back office support. Expert Global Solutions is a Plano, Texas-based customer service organization.

Verso plans meeting

Verso will hold a bank meeting on Monday to launch a $575 million credit facility, consisting of a $225 million six-year term loan B and a $350 million five-year ABL revolver, according to a market source.

Barclays and Citigroup Global Markets Inc. are the arrangers on the term loan, and Wells Fargo Securities LLC and Barclays are the arrangers on the ABL revolver.

Proceeds will be used to help fund the company’s exit from Chapter 11 bankruptcy.

Verso is a Memphis-based producer of printing and specialty papers and pulp.

Life Time joins calendar

Life Time Fitness scheduled a lender call for 11 a.m. ET on Monday to launch a fungible $100 million incremental covenant-light term loan B due June 2022 priced at Libor plus 325 bps with a 1% Libor floor, which matches existing term loan pricing, a source remarked.

Original issue discount talk on the incremental loan is still to be announced, the source added.

Commitments are due at noon ET on Wednesday.

Deutsche Bank Securities Inc. is leading the deal that will be used to repay revolver borrowings and to add cash to the balance sheet.

Life Time Fitness is a Chanhassen, Minn.-based operator of sports, professional fitness, family recreation and spa destinations.

Petco readies loan

Petco Animal Supplies emerged with plans to hold a lender call at 2 p.m. ET on Monday to launch a new loan deal and discuss fiscal 2015 and first quarter 2016 financials, a market source said.

Citigroup Global Markets Inc. is leading the transaction.

Petco is a San Diego-based specialty retailer of pet food, supplies and services.

PolyOne sets call

PolyOne scheduled a call for at 10:30 a.m. ET on Monday to launch a new loan to existing and prospective lenders, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials, services and solutions.

Veritas plans sell-down

Veritas Technologies will hold a bank meeting on Monday to launch the sell-down by lead banks of term loan debt that funded a few months ago for its buyout by the Carlyle Group from Symantec Corp. but never syndicated because of unfavorable market conditions late last year, according to a market source.

At closing, the loans were structured as a $2,109,000,000 term loan B-1 priced at Libor plus 562.5 bps with a 1% Libor floor, a $400 million second-out term loan B-2 priced at Libor plus 762.5 bps with a 1% Libor floor and a €497.3 million term loan B priced at Euribor plus 562.5 bps with a 1% floor, the source said.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., UBS Investment Bank, Jefferies Finance LLC, Barclays and Citigroup Global Markets Inc. are leading the deal.

Veritas is a Mountain View, Calif.-based provider of storage and server management software solutions.

Americold deal emerges

Americold set a meeting for Monday to launch a fungible $385 million add-on first-lien term loan due December 2022 talked at Libor plus 550 bps with a 1% Libor floor, in line with existing term loan pricing, and an original issue discount of 99.5, a market source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance CMBS debt, to fund an acquisition and for general corporate purposes.

Americold is an Atlanta-based provider of temperature-controlled warehousing and logistics to the food industry.

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