USI, Navios, Travel Leaders break; Carestream Dental, Lumileds deal changes surface

By Sara Rosenberg

New York, Aug. 3 – USI Inc. set the original issue discount on its incremental term loan at the tight side of guidance, and Navios Maritime Partners LP set the original issue discount on its term loan at the midpoint of talk, and then both of these deals freed up for trading on Thursday, and Travel Leaders Group LLC hit the secondary market too.

In other news, Carestream Dental Equipment Inc. tightened spread and issue price on its term loan, and Lumileds (Bright Bidco BV) revised the issue price on its add-on term loan due to strong demand.

Also, Give & Go Prepared Foods Corp., Dimora Brands Inc., BBB Industries LLC, Limetree Bay Terminals LLC, BHI Energy Inc., Brown Jordan International Inc., US LBM Holdings LLC, Leidos Innovations Corp., Aptos Inc. and Equinix Inc. released price talk with launch, and E.W. Scripps Co. joined the near-term primary calendar.

USI updated, trades

USI firmed the original issue discount on its $525 million incremental covenant-light first-lien term loan (B) due May 16, 2024 at 99.75, the tight end of the 99.5 to 99.75 talk, and clarified the structure of the ticking fee as half the margin from days 31 to 60 and the full margin thereafter, according to a market source.

Like the existing term loan, the incremental loan is priced at Libor plus 300 bps with a 25 bps step-down when the corporate credit/corporate family rating is B2/B and a 0% Libor floor, and has 101 soft call protection until Nov. 16, 2017.

Commitments were due at 2 p.m. ET on Thursday, moved up from noon ET on Friday, and by late day the term loan began trading with levels quoted at 99¾ bid, par 1/8 offered, another source added.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, KKR Capital Markets and Macquarie are leading the deal that will be used to fund the acquisition of ACO Brokerage (Wells Fargo Insurance Services USA) from Wells Fargo & Co.

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

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

Navios firms, hits secondary

Navios’ finalized the original issue discount on its $53 million incremental first-lien senior secured term loan B (B3/B+) due Sept. 14, 2020 at 99.25, the midpoint of the 99 to 99.5 talk, a market source said.

Pricing on the term loan is Libor plus 500 basis points with a 1% Libor floor and the debt has call protection of 102 until September 2017 and 101 until June 2018.

With terms firmed up, the loan broke for trading and levels were quoted at 99¼ bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the acquisition of three vessels that will be contributed to the collateral packages.

Closing is expected on Aug. 10.

Navios Maritime is a Monaco-based seaborne shipping and logistics company.

Travel Leaders breaks

Travel Leaders Group’s $100 million incremental senior secured covenant-light term loan B (B+) due Jan. 25, 2024 and repriced $433,912,500 senior secured covenant-light term loan B (B+) due Jan. 25, 2024 also began trading, with levels seen at par ½ bid, 101½ offered, a trader remarked.

Pricing on the term loan debt is Libor plus 450 bps with a 0% Libor floor. The incremental loan was sold at an original issue discount of 99.75 and the repricing was issued at par. The debt has 101 soft call protection for six months.

On Tuesday, pricing on the term loan debt was reduced from Libor plus 475 bps.

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

Proceeds from the incremental term loan B will be used to fund certain merger and acquisition transactions and the repricing will take the existing term loan B down from Libor plus 525 bps with a 0% Libor floor.

Closing is expected in mid-August.

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

Carestream Dental revised

Back in the primary market, Carestream Dental Equipment cut pricing on its $375 million seven-year covenant-light first-lien term loan to Libor plus 325 bps from talk of Libor plus 375 bps to 400 bps and changed the original issue discount to 99.75 from 99.5, according to a market source.

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

The company’s $455 million of credit facilities (B2/B) also include an $80 million revolver.

Recommitments are due at noon ET on Friday, the source said.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., ING, Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice and CareCapital Advisors Ltd. from Carestream.

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

Carestream Dental is a provider of imaging systems, practice management software and other services to the dental market.

Lumileds adjusts price

Lumileds tightened the issue price on its $240 million add-on covenant-light first-lien term loan B (Ba3/B+) due June 2024 to 100.25 from talk of 99.75 to par, a market source remarked.

The add-on term loan is priced at Libor plus 450 bps with a 1% Libor floor and has 101 soft call protection until December 2017, all of which matches the existing term loan B.

Recommitments were due at 5 p.m. ET on Thursday and allocations are targeted for Friday, the source added.

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.

The company is amending its credit agreement in connection with the add-on loan and dividend payment, and lenders are offered a 25 bps consent fee.

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

Give & Go sets guidance

Also in the primary market, Give & Go Prepared Foods held its bank meeting on Thursday and released talk of Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99.5 on its $475 million covenant-light first-lien term loan (B1/B) due July 2023, a market source said.

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

Commitments are due at the close of business on Aug. 16, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used for a recapitalization.

Give & Go is a Toronto-based manufacturer of value-added baked goods.

Dimora discloses talk

Dimora Brands came out with talk on its $255 million seven-year covenant-light first-lien term loan (B2/B) and $65 million eight-year covenant-light second-lien term loan (Caa2/CCC+) with its morning bank meeting, according to a market source.

Talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor and a discount of 98.5, the source said.

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

Commitments are due at the close of business on Aug. 15, the source added.

Deutsche Bank Securities Inc., Antares Capital and Bank of Ireland are leadingthe $320 million in term loans that will be used to refinance existing debt and fund a distribution to shareholders.

The company is owned by the Jordan Co.

Dimora, formerly known as Top Knobs, is a Dallas-based designer, distributor, and manufacturer of decorative and functional hardware as well as decorative wood and other products for the kitchen and bath industry.

BBB details surface

BBB Industries held its lender call in the morning, launching a $438 million term loan B at talk of Libor plus 450 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Aug. 14, the source said.

Nomura is leading the deal that will be used to reprice an existing term loan B from Libor plus 500 bps with a 1% Libor floor.

BBB is a Daphne, Ala.-based remanufacturer of automotive products for the North American aftermarket.

Limetree terms announced

Limetree Bay Terminals launched on its call its $465 million term loan B due Feb. 15, 2024 at talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Aug. 10, the source added.

Barclays is leading the deal that will be used to reprice an existing term loan from Libor plus 500 bps with a 1% Libor floor.

Cashless roll is available for the repricing.

Limetree Bay is a Christiansted, Virgin Islands-based owner of the oil terminal at Limetree Bay, St. Croix, U.S. Virgin Islands.

BHI Energy holds call

BHI Energy released talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $174 million seven-year first-lien term loan that launched with a call on Thursday, a market source remarked.

The company’s $289 million of credit facilities also include a $70 million five-year revolver and a separately placed $65 million second-lien term loan.

Commitments are due on Tuesday, the source added.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by AE Industrial Partners.

BHI Energy is a Weymouth, Mass.-based provider of critical on-site services needed to support the daily operations, routine maintenance and capital investment requirements for the power generation, oil & gas and transmission & distribution end markets.

Brown Jordan repricing

Brown Jordan launched with its call the repricing of its $165 million term loan B (B2/B) due January 2023 at talk of Libor plus 500 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Wednesday.

Goldman Sachs Bank USA is leading the deal that will reprice the existing term loan down from Libor plus 575 bps with a 1% Libor floor.

Brown Jordan is a St. Augustine, Fla.-based manufacturer of indoor and outdoor furniture.

US LBM launches

US LBM emerged in the morning with plans to hold a call at 3 p.m. ET to launch an $853 million first-lien term loan (B3/B+) due August 2022 talked at Libor plus 450 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on Wednesday, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 525 bps with a 1% Libor floor.

US LBM is a Green Bay, Wis.-based owner of building material distribution businesses.

Leidos comes to market

Leidos Innovations launched without a call a $1,126,000,000 senior secured covenant-light term loan B due Aug. 16, 2023 at talk of Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Citigroup Global Markets Inc., MUFG, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Scotiabank, Wells Fargo Securities LLC and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan B from Libor plus 225 bps with a 0% Libor floor.

With this transaction, the company is increasing the designated additional letter of credit facilities basket to $200 million from $100 million, the source added.

Commitments from existing lenders are due at 5 p.m. ET on Wednesday, commitments from new lenders are due at 5 p.m. ET on Aug. 10 and closing is expected on Aug. 16.

Leidos is a Reston, Va.-based provider of technology and sector expertise to customers in national security, health and engineering.

Aptos floats OID

Aptos disclosed original issue discount talk of 98.5 on its $83 million incremental term loan B (B-) that launched with a call during the session, a market source said.

Pricing on the incremental loan matches existing term loan B pricing at Libor plus 675 bps with a 1% Libor floor.

Commitments are due on Aug. 15, the source added.

Macquarie Capital (USA) Inc. and Antares Capital are leading the deal that will be used to fund the acquisition of TXT Retail.

Aptos is an Atlanta-based retail technology solutions company.

Equinix deal emerges

Equinix held a lender call in the morning to launch a repricing of its $247 million covenant-light term loan B due 2023 at talk of Libor plus 200 bps to 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Bank of America Merrill Lynch is leading the deal that will reprice the existing term loan down from Libor plus 250 bps with a 0% Libor floor.

The company is also looking to reprice its €998 million covenant-light term loan B and its £296 million covenant-light term loan B.

Talk on the euro term loan repricing its Euribor plus 250 bps to 275 bps with a 0% floor and a par issue price, versus current pricing of Euribor plus 325 bps with a 0% floor, and the sterling term loan repricing is talked at Libor plus 300 bps to 325 bps with a 0% floor and an issue price of 99.875 to par, versus current pricing of Libor plus 300 bps with a 0.75%, the source added. Both of these tranches have 101 soft call protection for six months too.

Commitments are due on Wednesday.

Equinix is a Redwood City, Calif.-based interconnection and data center company.

E.W. Scripps on deck

E.W. Scripps set a lender call for 1 p.m. ET on Tuesday to launch a $250 million term loan B (BB+) that includes 101 soft call protection for six months, according to a market source.

Commitments are due at 1 p.m. ET on Aug. 18, the source said.

Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are leading the deal that, which will be used with about $50 million of cash on hand to fund the acquisition of Katz broadcasting networks for $302million or a net purchase price of $292million after accounting for its 5% ownership position in a portion of the business.

Closing is expected on Oct. 2, subject to Hart-Scott-Rodino clearance and customary conditions.

At closing, leverage is expected to be about 3 times on a pro forma 2017/2018 blended basis.

E.W. Scripps is a Cincinnati-based broadcasting company.

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