First Data, Rackspace, Ascensus break; CSRA sets changes; Veritas terms emerge with launch

By Sara Rosenberg

New York, June 9 – First Data Corp. upsized its incremental first-lien term loan, revised the original issue discount, set the spread on the tranche and on the repricing of its existing term loan at the low end of talk and added a pricing step-down before freeing up for trading on Friday.

Also, Rackspace Hosting Inc. finalized pricing on its term loan B at the tight side of guidance and then began trading, and Ascensus Inc.’s incremental first-lien term loan emerged in the secondary market as well.

In addition, CSRA Inc. increased the size of its term loan B and firmed the spread at the low end of talk, and Veritas Technologies Corp. came out with details on its proposed term loans with launch.

Furthermore, ADT Corp., Vivid Seats LLC, St. George’s University, Sterling Talent Solutions, Verint Systems Inc., Aclara Technologies LLC (Meter Readings Holding LLC), Quincy Media Inc., Quality Distribution (Gruden Acquisition, Inc.) and WernerCo joined the near-term calendar.

First Data revised, trades

First Data lifted its incremental first-lien term loan due July 10, 2022 to $1,025,000,000 from $1 billion and moved the original issue discount to 99.875 from 99.75, according to a market source.

Additionally, the company set pricing on the incremental term loan and on the repricing of its $2,733,000,000 first-lien term loan due July 10, 2022 at Libor plus 225 basis points, the low end of the Libor plus 225 bps to 250 bps, and added a step-down to Libor plus 200 bps subject to a Ba3 rating, the source said.

As before, the repricing has a par issue price, and all of the term loan debt has no Libor floor and 101 soft call protection for six months.

With terms finalized, the loan broke for trading in the afternoon, and levels were quoted at par bid, par ¼ offered, the source added.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to refinance existing euro term loans and reprice the existing U.S. term loan down from Libor plus 300 bps with no Libor floor. The incremental upsizing will be used for fees and changes in foreign exchange rates.

First Data is an Atlanta-based provider of payment processing solutions.

Rackspace updated, tops par

Rackspace Hosting set the spread on its $2,095,000,000 senior secured covenant-light term loan B due Nov. 3, 2023 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and left the 1% Libor floor, par issue and 101 soft call protection for six months intact, a market source remarked.

By late day, the term loan freed up for trading, with levels quoted at par 1/8 bid, par 3/8 offered, another source added.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 350 bps with a 1% Libor floor and for general corporate purposes. A portion of the term loan B is intended to be used with balance sheet cash to fund the acquisition of TriCore, assuming the acquisition closes.

Closing on the term loan B is expected on June 21.

Rackspace is a San Antonio-based managed cloud company.

Ascensus hits secondary

Ascensus’ fungible $42 million incremental covenant-light first-lien term loan (B2/B+) due December 2022 began trading too, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the incremental loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection through Aug. 3.

On Wednesday, the incremental loan was upsized from $25 million and the discount was tightened from 99.5.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a tuck-in acquisition, and, because of the recent upsizing, to pay down revolver borrowings.

Ascensus is a Dresher, Pa.-based service provider of retirement and college savings plans.

CSRA reworked

Back in the primary market, CSRA lifted its term loan B due Nov. 30, 2023 to $650 million from $466 million and set pricing at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, according to a market source.

The term loan still has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Recommitments were due at 4 p.m. ET on Friday, the source said.

MUFG is leading the deal that will be used to reprice an existing term loan B from Libor plus 250 bps with a 0.75% Libor floor and funds from the upsizing will be used to repay a portion of the company’s existing $570 million term loan A-1 due November 2019.

CSRA is a Falls Church, Va.-based provider of next-generation IT solutions and professional services to help government clients enhance public safety and support the well-being of U.S. citizens.

Veritas details emerge

Veritas Technologies held its lender call on Friday, launching a $1,948,000,000 covenant-light term loan (B+) due January 2023 and a €900 million covenant-light term loan (B+) due January 2023 talked at Libor/Euribor plus 450 bps to 475 bps with a 1% floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, according to a market source.

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

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., UBS Investment Bank and Jefferies LLC are leading the deal that will be used to help refinance existing term loans.

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

ADT joins calendar

ADT emerged with plans to hold a lender call at 1 p.m. ET on Monday to launch a $3,554,000,000 roughly five-year senior secured first-lien term loan, a market source said.

Barclays is leading the deal that will be used to reprice an existing term loan B.

ADT is a security services company.

Vivid sets launch

Vivid Seats will hold a bank meeting at 11 a.m. ET on Wednesday to launch a $525 million senior secured term loan B, according to a market source.

Barclays is leading the deal that will be used to help fund the buyout of the company by GTCR. Post-closing, Vista Equity Partners will maintain an ownership stake in the company.

Closing is expected this quarter.

Vivid Seats is a Chicago-based secondary ticket marketplace for live sports, concerts and theater events.

St. George’s plans call

St. George’s University set a lender call for 1 p.m. ET on Monday to launch a $710 million first-lien term loan, a market source remarked.

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice an existing first-lien term loan.

St. George’s is a Grenada, West Indies-based educational institution providing students with medical degrees as well as veterinary and liberal arts graduate and undergraduate degrees.

Sterling deal surfaces

Sterling Talent Solutions scheduled a lender call for 10:30 a.m. ET on Tuesday to launch a $155 million incremental first-lien term loan (B2) and an amendment and extension of its existing $492 million term loan B (B2), a market source said.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets and ING are leading the deal.

The incremental term loan will be used to repay an outstanding revolving credit facility balance, to repay the existing $140 million second-lien term loan and to pay associated fees and expenses.

Sterling Talent Solutions is a Seattle-based provider of comprehensive employment and background screening services.

Verint on deck

Verint Systems set a lender call for Monday to launch a $425 million seven-year term loan B talked at Libor plus 225 bps to 250 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing term loan debt.

Verint is a Melville, N.Y.-based provider of actionable intelligence solutions and value-added services.

Aclara readies loan

Aclara Technologies scheduled a lender call for 2 p.m. ET on Monday to launch an $80 million incremental senior secured term loan B and an amendment of its existing $343 million senior secured term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc. and Stephens Inc. are leading the deal.

The incremental term loan will be used to fund a sponsor dividend.

Aclara is a Hazelwood, Mo.-based supplier of smart infrastructure solutions to water, gas and electric utilities.

Quincy plans repricing

Quincy Media will hold a lender call at 3 p.m. ET on Monday to launch a repricing of its $226.7 million term loan B due November 2022, according to a market source.

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

Commitments are due at 3 p.m. ET on June 16.

Wells Fargo Securities LLC is leading the deal that will reprice the existing term loan B from Libor plus 400 basis points with a 1% Libor floor.

Quincy Media is a Quincy, Ill.-based media company.

Quality Distribution add-on

Quality Distribution scheduled a lender call for 2 p.m. ET on Tuesday to launch a $60 million add-on first-lien term loan due August 2022 that includes 101 soft call protection for six months, a market source remarked.

Jefferies LLC is leading the deal.

The loan will be used to pay down revolving credit facility borrowings and to pay fees and expenses.

In connection with this transaction, the company will reprice its existing first-lien term loan up, the source added.

Quality Distribution Tampa, Fla.-based operator of a dedicated bulk tank network.

WernerCo coming soon

WernerCo set a bank meeting for 10 a.m. ET on Monday to launch $265 million seven-year term loan, a market source said.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the buyout of the company by Triton.

Closing is subject to regulatory approval.

WernerCo is a Schaffhausen, Switzerland-based manufacturer and distributor of access products, fall protection equipment, secure storage systems and light duty construction equipment.

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