Bioclinica, Vizient, Beasley break; CBS Radio, ConvergeOne, Matrix Medical revise deals

By Sara Rosenberg

New York, Oct. 6 – Bioclinica’s credit facility surfaced in the secondary market on Thursday, with both its first- and second-lien term loan quoted above their original issue discounts, and Vizient Inc. and Beasley Broadcast Group Inc. freed to trade too.

Over in the primary market, CBS Radio Inc. increased the size of its term loan B and decreased the size of its bond offering, ConvergeOne Holdings Corp. completely reworked its deal to include an add-on first-lien term loan and leave the existing term loans in place as opposed to doing a full refinancing, and Matrix Medical Network downsized its term loan, increased spread talk, widened the original issue discount and shortened the maturity.

Also, Serta Simmons Holdings LLC, Augusta Sportswear Group, Sedgwick Claims Management Services Inc. and FLY Leasing disclosed price talk with launch, and Forterra Finance LLC, Energy Future Intermediate Holding Co. LLC and Pro Mach Inc. emerged with new deal plans.

Bioclinica starts trading

Bioclinica’s credit facility broke for trading on Thursday, with the $445 million seven-year covenant-light first-lien term loan (B1/B) quoted at par bid, 100˝ offered and the $210 million eight-year covenant-light second-lien term loan (Caa2/CCC) quoted at 98˝ bid, 99˝ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 425 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5, after tightening this week from 99. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor, and was issued at a discount of 98. This tranche has hard call protection of 102 in year one and 101 in year two.

The company’s $705 million credit facility also includes a $50 million five-year revolver (B1/B).

Jefferies Finance LLC is leading the deal that will be used to help fund the buyout of the company by Cinven from Water Street Healthcare Partners and JLL Partners.

Bioclinica is a Doylestown, Pa.-based provider of specialized technology-enabled services supporting clinical trials.

Vizient tops par

Vizient’s $1,122,000,000 term loan B due February 2023 hit the secondary market as well, with levels seen at 100 5/8 bid, 101 1/8 offered, a source said.

Pricing on the term loan B is Libor plus 400 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Proceeds will be used to reprice an existing term loan B down from Libor plus 525 bps with a 1% Libor floor, and with the repricing, existing lenders are being paid out at 101 due to current soft call protection terms.

Barclays is leading the deal that is expected to close on Friday.

Vizient is an Irving, Texas-based network of not-for-profit health care organizations.

Beasley frees up

Beasley Broadcast’s credit facility began trading too, with the $265 million seven-year term loan B quoted at 98˝ bid, 99˝ offered, a trader remarked.

Pricing on the term loan B is Libor plus 600 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan B was increased from Libor plus 550 bps, the discount widened from 99 and the call protection was extended from six months.

The company’s $285 million credit facility (B1/B+) also includes a $20 million five-year revolver.

RBC Capital Markets LLC and U.S. Bank NA are leading the deal.

Beasley buying Greater Media

Proceeds from Beasley’s credit facility will be used with cash from the balance sheet to fund the acquisition of Greater Media Inc. for about $100 million in cash and roughly $25 million in shares of Beasley’s class A common stock.

In addition, the shareholders of Greater Media will receive the net cash proceeds from the sale of its tower assets, estimated to be about $20 million, and Beasley will refinance around $80 million of Greater Media’s debt.

Closing is expected in the fourth quarter, subject to FCC approval and other regulatory approvals and other customary conditions.

Pro forma for the transaction, net total leverage is 4.4 times based on last-12-month June 30 adjusted EBITDA of $60.1 million.

Beasley is a Naples, Fla.-based large- and mid-size market radio broadcaster. Greater Media is a Braintree, Mass.-based broadcast company.

CBS Radio upsizes

Switching to the primary market, CBS Radio lifted its seven-year term loan B to $1.06 billion from $1 billion and trimmed its senior notes offering to $400 million from $460 million, according to a market source.

Talk on the term loan B is still Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Thursday, the source said.

J.P. Morgan Securities LLC is the left lead on the loan that is being done in connection with the company’s spin-off from CBS Corp. and initial public offering of common stock.

Proceeds from the loan and notes will be used to help fund a distribution to CBS and for general corporate purposes.

CBS Radio is a New York-based broadcast media company.

ConvergeOne restructures

ConvergeOne is now out to lenders with a $90 million add-on first-lien term loan to fund a dividend, and cancelled plans for a $485 million credit facility to refinance existing debt and fund a dividend, according to a market source.

Talk on the add-on first-lien term loan is Libor plus 537.5 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year, the source said.

Commitments are due on Friday.

By comparison, the initial transaction launched in September, which included the refinancing, was for a $50 million revolver, a $335 million seven-year first-lien term loan talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and a $100 million eight-year second-lien term loan talked at Libor plus 900 bps with a 1% Libor floor, a discount of 98, and call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC and Natixis are leading the deal.

ConvergeOne amending

With the change in debt plans, ConvergeOne is now seeking an amendment to its existing first- and second-lien term loans that are staying in place.

The amendment will allow for the new debt and dividend, increase pricing on the existing first-lien term loan to Libor plus 537.5 bps with a 1% Libor floor from Libor plus 500 bps with a 1% Libor floor, and raise pricing on the existing second-lien term loan to Libor plus 900 bps with a 1% Libor floor from Libor plus 800 bps with a 1% Libor floor, the source added.

First-lien lenders are offered a 25-bps amendment fee and second-lien lenders are offered a 50-bps amendment fee.

Including the add-on term loan, the first-lien term loan will total $325 million.

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

Matrix reworks deal

Matrix Medical Network cut its term loan to $198 million from $238 million, changed price talk to Libor plus 525 bps to 550 bps from Libor plus 475 bps to 500 bps, moved the original issue discount to 98 from 99 and shortened the maturity to five years from six years, a market source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s now $208 million credit facility (B2/B) also includes a $10 million revolver.

Recommitments are due by mid-day on Oct. 13, the source continued.

SunTrust Robinson Humphrey Inc. is leading the deal.

Proceeds will be used to help fund the purchase of a stake in the company by Frazier Healthcare Partners. Frazier was buying a 60% equity interest in the company from Providence Service Corp., with Providence retaining a 40% equity interest, but Providence is increasing its equity stake to 47%, resulting in the term loan downsizing.

Gross leverage is 3.75 times and net leverage is 3.69 times.

Matrix Medical is a Scottsdale, Ariz.-based provider of in-home care.

Serta guidance emerges

Also on the new deal front, Serta Simmons held its bank meeting on Thursday, and with the event, price talk on is first- and second-lien term loans was announced, according to a market source.

The $1.9 billion seven-year first-lien term B is talked at Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99.5, and the $500 million eight-year 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.

Included in the first-lien term loan is 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.

The company’s $2,625,000,000 credit facility also provides for a $225 million ABL revolver.

Serta lead banks

UBS Investment Bank and Goldman Sachs Bank USA are leading Serta’s credit facility, with UBS the left lead on the first-lien term loan and Goldman the left lead on the second-lien loan.

Commitments are due at 5 p.m. ET on Oct. 20, the source added.

Proceeds will be used to refinance existing debt and pay a dividend.

Serta, an Advent International portfolio company, is an Atlanta-based manufacturer and distributor of mattresses.

Augusta launches

Augusta Sportswear launched at its lender meeting its $395 million seven-year covenant-light term loan with 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, a market source said.

The company’s $435 million credit facility (B1/B+) also includes a $40 million five-year revolver.

Commitments are due on Oct. 20 and closing is targeted for Oct. 26, the source added.

Antares Capital is leading the deal that will be used to refinance existing debt.

Augusta Sportswear is an Augusta, Ga.-based manufacturer and supplier of team uniforms, spiritwear and dancewear.

Sedgwick discloses talk

Sedgwick Claims Management Services came out with talk of Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on the repricing of its $325 million incremental first-lien term loan due February 2021, a market source remarked.

The repricing will take the term loan down from Libor plus 425 bps with a 1% Libor floor.

Commitments are due on Oct. 13, but that deadline is likely going to be accelerated, the source added.

KKR Capital Markets is leading the deal.

Sedgwick is a Memphis-based provider of technology-enabled claims and productivity management solutions.

FLY details surface

FLY Leasing held its lender call, launching the extension of its $410 million term loan to February 2022 from August 2019 with pricing of Libor plus 275 bps with a 0.75% Libor floor, unchanged from current pricing, according to a market source.

The extended term loan will have 101 soft call protection for six months and lenders are being a 25-bps fee for the extension, the source said.

Commitments are due on Oct. 14.

RBC Capital Markets is leading the deal.

FLY Leasing is a Dublin-based aircraft lessor.

Forterra joins calendar

Forterra set a lender call for 9 a.m. ET on Friday to launch a $1 billion seven-year covenant-light first-lien term loan talked with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said. Spread guidance is not yet announced.

Commitments are due at 2 p.m. ET on Oct. 18, the source added.

Credit Suisse Securities (USA) LLC is leading the loan that will be used to refinance existing debt.

Forterra is an Irving, Texas-based manufacturer of drainage and water transmission pipe and products.

Energy Future on deck

Energy Future scheduled a lender call for 11 a.m. ET on Friday to launch an extension of its DIP term loan maturity by 6.5 months to June 30, 2017 and a $75 million upsize of the loan to $5,475,000,000, according to a market source.

Also, the term loan will get a six-month extension option, subject to certain conditions, the source said.

The term loan is talked at Libor plus 325 bps with a 1% Libor floor, in line with current pricing, and lenders are offered an amendment fee/new money original issue discount of 25 bps.

Commitments are due at 5 p.m. ET on Oct. 13, the source added.

Deutsche Bank Securities Inc. is leading the deal for the Dallas-based power generation company and utility operator.

Pro Mach readies loan

Pro Mach will hold a lender call at 11 a.m. ET on Tuesday to launch a $160 million add-on first-lien term loan that includes $50 million of delayed-draw debt, a market source remarked.

Goldman Sachs Bank USA and Antares Capital are leading the deal.

Proceeds will be used for opportunistic acquisitions and to refinance existing second-lien debt.

Pro Mach is a Covington, Ky.-based provider of packaging machinery solutions and related aftermarket products serving the food, beverage, pharmaceutical and consumer packaged goods companies.

Henry closes

In other news, the buyout of Henry Co. LLC by American Securities has been completed, according to a news release.

To help fund the transaction, Henry got a new $360 million credit facility (B2/B) that includes a $40 million five-year revolver and a $320 million seven-year covenant-light term loan B.

Pricing on the term loan B is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was reduced from talk of Libor plus 475 bps to 500 bps, the discount was revised from 99, the call protection was extended from six months, and the MFN sunset was removed.

RBC, Credit Suisse, Antares Capital and Nomura led the debt.

Henry is an El Segundo, Calif.-based developer and manufacturer of roofing products and other building envelope applications for the residential and commercial construction markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.