National Veterinary brings add-on debt to market; Dell, Zekelman bank meeting plans surface

By Sara Rosenberg

New York, May 20 – National Veterinary Associates (NVA Holdings Inc.) approached lenders with add-on first- and second-lien term loans during Friday’s market hours.

Also, Dell Inc. came out with timing on the launch of its multi-billion term loan B, and Zekelman Industries joined the near-term new issue calendar.

National Veterinary holds call

National Veterinary Associates hosted a lender call at 11 a.m. ET on Friday to launch $100 million of fungible add-on covenant-light term loans, split between a $70 million add-on first-lien term loan B-1 due Aug. 14, 2021 and a $30 million add-on second-lien term loan due Aug. 14, 2022, a market source said.

The add-on term loan B-1 is talked at Libor plus 450 basis points with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection through Feb. 29, 2017, and the add-on second-lien term loan is talked at Libor plus 700 bps with a 1% Libor floor, a discount of 99 to 99.5 and 101 hard call protection through Aug. 14, 2016, the source continued.

The spread, floor and call protection on the add-on loans matches the existing B-1 and second-lien term loans.

Bank of America Merrill Lynch, Jefferies Finance LLC and Nomura are leading the debt that will be used to fund acquisitions, to repay revolving credit facility borrowings and for general corporate purposes.

National Veterinary is an Agoura Hills, Calif.-based owner of veterinary hospitals.

Dell sets meeting

Dell emerged with plans to hold a bank meeting at 9:30 a.m. ET in New York on Tuesday to launch its $5 billion seven-year term loan B that is being talked with a 0.75% Libor floor and 101 soft call protection for six months, according to a market source.

Spread and original issue discount talk on the term loan B is not yet available, the source said.

The company’s $17,075,000,000 credit facility also includes a $3.15 billion five-year revolver (BBB-) at Libor plus 200 bps, a $3.2 billion three-year term loan A-1 (BBB) at Libor plus 200 bps, a $3,925,000,000 five-year term loan A-2 (BBB-) at Libor plus 225 bps and a $1.8 billion term loan A-3 (BBB-).

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal.

Dell buying EMC

Proceeds from Dell’s credit facility will be used to help fund the acquisition of EMC Corp. for $24.05 per share in cash. The total transaction value is about $67 billion.

The company also intends to use $20 billion of senior secured notes, which priced on May 17, senior unsecured notes, equity and cash on hand to fund the acquisition.

Closing is subject to EMC shareholder approval, regulatory approval and other customary conditions.

Dell is a Round Rock, Texas-based technology and services company owned by Michael S. Dell, founder, chairman and chief executive officer, MSD Partners and Silver Lake. EMC is a Hopkinton, Mass.-based technology company. The combined enterprise systems business will be located in Hopkinton, Mass.

Zekelman on deck

Zekelman Industries scheduled a bank meeting for 10 a.m. ET in New York on Monday to launch an $800 million term loan B, a market source remarked.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are leading the deal.

Zekelman Industries, formerly known as JMC Steel, is a Chicago-based manufacturer of industrial steel pipe and tubular products.

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