Secondary sees multiple loans break for trading; primary busy with deal changes, launches

By Sara Rosenberg

New York, Sept. 29 – Deals from inVentiv Health Inc., Polycom Inc., Consolidated Communications Inc., MRP Generation Holdings LLC (Middle River Power) and Blackboard Inc. all surfaced in the secondary market on Thursday.

Also, Reynolds Group Holdings Inc. tightened the original issue discount on its incremental first-lien term loan, and Floor & Decor Outlets of America Inc. trimmed pricing on its term loan for a second time, and then both of these transactions freed up for trading as well.

Continuing on the topic of deal changes, Jo-Ann Stores Inc. downsized its term loan B and sweetened the spread, issue price and call protection, Focus Brands Inc. reduced the spread on its first-lien term loan, added a leverage-based step-down and firmed the original issue discount at the tight end of talk, and Mohegan Tribal Gaming Authority reduced the size of its term loan B in favor of a larger term loan A.

Furthermore, Hargray Communications modified the original issue discount on its incremental first-lien term loan, The Keter Group cancelled plans for a U.S. tranche within its term loan B so that it is now an all euro-denominated loan, and Ardagh Group (Ardagh Holdings USA Inc. and Ardagh Packaging Finance SA) updated timing on its amended and extended term loan B.

And, in more primary news, Platform Specialty Products Corp. (MacDermid Inc.), Talen Energy Corp., PetSmart Inc., Tweddle Group and Alkermes Inc. released talk with launch.

inVentiv hits secondary

inVentiv Health’s $1.73 billion seven-year senior secured term loan B freed to trade on Thursday, with levels quoted at 99¾ bid, 100½ offered, according to a market source.

Pricing on the term loan B is Libor plus 375 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt includes 101 soft call protection for six months and a ticking fee of half the spread from day 31 to 60 and the full spread thereafter.

On Wednesday, the term loan B was upsized from $1.68 billion, pricing was trimmed from talk of Libor plus 425 bps to 450 bps, the discount was revised from 99, and the MFN sunset was eliminated.

The company’s $1.98 billion credit facility also provides for a $250 million asset-based revolver.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Barclays and Jefferies Finance LLC are leading the deal.

inVentiv getting investment

inVentiv’s credit facility and $670 million of bonds, downsized from $720 million with the term loan B upsizing, are being obtained in connection with a material equity investment by Advent International, which values the company at $3.8 billion on a cash-free, debt-free basis subject to customary adjustments.

Advent is joining Thomas H. Lee Partners as an equal equity owner of the company.

Closing is expected in mid-November, subject to regulatory approval and other customary conditions.

inVentiv is a Burlington, Mass.-based provider of clinical, consulting and commercial services to the health care industry.

Polycom tops OID

Polycom’s credit facility broke too, with the $750 million seven-year first-lien term loan (B1/B+) seen at 96¼ bid, 96¾ offered, a source remarked.

Pricing on the first-lien term loan is Libor plus 650 bps with a 1% Libor floor, and it was issued at a discount of 96. There is 101 soft call protection for one year.

During syndication, pricing on the first-lien term loan was lifted from talk of Libor plus 575 bps to 600 bps, the discount widened from 98, and the call protection was extended from six months, resulting in oversubscription.

The company’s $975 million credit facility also includes a $50 million five-year revolver (B1/B+) and a $175 million eight-year second-lien term loan (Caa1/B-) that was privately placed.

Macquarie Capital (USA) Inc. is leading the deal that is being used with equity to back the recently completed buyout of the company by Siris Capital Group LLC for $12.50 per share in cash. The all-cash transaction is valued at about $2 billion, including Polycom’s outstanding debt.

Polycom is a San Jose, Calif.-based provider of secure video, voice and content solutions.

Consolidated breaks

Consolidated Communications’ $900 million seven-year term loan B (Ba3/BB-) hit the secondary market, with levels seen at 100 3/8 bid, 100 7/8 offered, according to a market source.

Pricing on the B loan is Libor plus 300 bps with a 1% Libor floor, and it was issued at a discount of 99.75, after tightening during syndication from 99.5. There is 101 soft call protection for six months.

The company’s $1 billion credit facility also includes a $100 million five-year revolver.

Wells Fargo Securities LLC is leading the deal that will be used to refinance existing debt.

Leverage is 2.8 times secured and 4.3 times total.

Consolidated Communications is a Mattoon, Ill.-based communications provider.

MRP levels surface

MRP Generation’s credit facility began trading in the afternoon, with the $270 million six-year term loan B (B2/BB-) quoted at 94½ bid, a market source said.

Pricing on the term loan B is Libor plus 700 bps with a 1% Libor floor, and it was sold at an original issue discount of 94. The debt has call protection of 103 in year one, 102 in year two and 101 in year three.

The company’s $290 million credit facility also includes a $20 million revolver.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing debt.

When the company first came to market with the refinancing in July, it was shopping a $30 million revolver and a $310 million six-year term loan B talked at Libor plus 550 bps to 575 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year.

Closing is expected during the week of Oct. 10, the source added.

MRP Generation is the platform established to manage Avenue Capital’s U.S. power generation investment portfolio. The portfolio consists of High Desert (830 MW), Big Sandy (300 MW) and Wolf Hills (250 MW).

Blackboard frees up

Blackboard’s $934 million covenant-light term loan B-4 due 2021 also started trading, with levels quoted at 99¼ bid, 99½ offered, according to a trader.

Pricing on the term loan B-4 is Libor plus 500 bps with a 1% Libor floor, and it was sold at an original issue discount/consent fee of 100 bps. The debt includes 101 soft call protection for one year.

During syndication, the term loan B-4 was downsized from $984 million, pricing finalized at the high end of the Libor plus 475 bps to 500 bps talk, the discount/consent fee was lifted from 50 bps, and the call protection was extended from six months.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Citizens Bank are leading the deal that will be used with equity to refinance/extend an existing term loan B-3 due in 2018 and to repay some debt.

The equity is being obtained to compensate for the recent term loan B-4 downsizing.

Blackboard is a Washington, D.C.-based education technology company.

Reynolds tweaks OID, trades

Reynolds Group changed the original issue discount on its fungible $1.35 billion incremental first-lien term loan due February 2023 to 99.875 from 99.75, a market source said.

Pricing on the incremental term loan is Libor plus 325 bps, with a step-down to Libor plus 300 bps subject to a B2 corporate rating, and a 1% Libor floor, in line with existing term loan pricing, and there is 101 soft call protection through February 2017.

Earlier this week, the term loan was upsized from $500 million.

Recommitments were due at noon ET on Thursday and then debt emerged in the secondary market, with levels quoted at 100¼ bid, 100½ offered, the source added.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to repay 5 5/8% senior notes due 2016 and 9 7/8% senior notes due 2019, and as a result of the recent upsizing, up to $500 million 8¼% senior notes due 2021 and up to $350 million 6 7/8% senior secured notes due 2021.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

Floor & Decor flexes, breaks

Floor & Decor cut the spread on its $350 million seven-year first-lien term loan to Libor plus 425 bps from revised talk of Libor plus 450 bps and initial talk of Libor plus 475 bps, a market source said.

As before, the term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Previously in syndication, the term loan was upsized from $300 million and the discount was modified from 99.

With final terms in place, the loan began trading on Thursday, and levels were quoted at par bid, 100¼ offered, a trader added.

UBS Investment Bank, Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and pay a dividend.

Floor & Decor is an Atlanta-based specialty retailer in the hard surface flooring market.

Jo-Ann reworked

Jo-Ann Stores reduced its seven-year covenant-light term loan B to $725 million from $850 million, raised pricing to Libor plus 500 bps from Libor plus 450 bps, widened the original issue discount to 98 from talk of 99 to 99.5, extended the 101 soft call protection to one year from six months and eliminated the MFN sunset, according to a market source.

The term loan B still has a 1% Libor floor.

Bank of America Merrill Lynch is leading the deal that will be used to refinance existing debt.

Jo-Ann Stores is a Hudson, Ohio-based specialty retailer of fabrics and crafts.

Focus Brands revised

In more happenings, Focus Brands trimmed pricing on its $600 million seven-year covenant-light first-lien term loan to Libor plus 400 bps from Libor plus 450 bps, added a 25 bps step-down at 4 times first-lien net leverage and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

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

The company’s $625 million credit facility (B2/B) also includes a $25 million revolver.

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

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

Focus Brands is an Atlanta-based restaurant franchisor and operator.

Mohegan retranches

Mohegan Tribal Gaming decreased its seven-year term loan B to $785 million from $935 million and increased its five-year term loan A to $445 million from $295 million, according to a market source.

The company’s $1.4 billion senior secured deal (B1/B) also includes a $170 million five-year revolver.

The term loan B is still priced at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, and has 101 soft call protection for six months, and the term loan A and revolver are priced at Libor plus 425 bps.

Commitments were due at 5 p.m. ET on Thursday. Allocations are targeted for Friday, the source said.

Bank of America Merrill Lynch, Citizens Bank, Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Goldman Sachs Bank USA, KeyBanc Capital Markets and CIT Bank are leading the deal, with Bank of America the left lead on the term loan B and Citizens the left lead on the pro rata debt.

Proceeds will be used by the Uncasville, Conn.-based operator of gaming and entertainment enterprises to repay and terminate some existing debt, including an existing credit facility.

Hargray adjusts OID

Hargray Communications tightened the original issue discount on its $50 million incremental first-lien term loan due June 26, 2019 to 99.75 from 99.5, a market source said.

Pricing on the incremental loan, as well as on a repricing of the company’s existing $347 million first-lien term loan due June 26, 2019, remained at Libor plus 375 bps with a 1% Libor floor, the existing term loan is still offered at par and all of the term loan debt is still getting 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Friday, moved up from 5 p.m. ET on Oct. 6, the source added.

Credit Suisse Securities (USA) LLC and TD Securities (USA) LLC are leading the deal (B2/B+).

The incremental loan will be used to fund a shareholder distribution, and the repricing will take the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Hargray is a Hilton Head Island, S.C.-based provider of triple-play data, video and voice services.

Keter cancels U.S. piece

Keter Group withdraw plans for a U.S. dollar tranche within its €690 million-equivalent covenant-light term loan B, a source remarked.

The now all euro denominated term loan B is talked at Euribor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s €790 million credit facility (B2/B) also includes a €100 million revolver.

UBS Investment Bank and J.P. Morgan Securities LLC are leading the deal, with UBS the left lead. JPMorgan had been left lead on the U.S. term loan B tranche.

Proceeds will be used to help fund the buyout of the Keter Group, an Israel-based provider of furniture, storage and organization solutions, by BC Partners and PSP Investments.

Ardagh updates deadline

Ardagh Group moved up the new money commitment deadline on its $666 million covenant-light term loan B due Dec. 17, 2021 to 5 p.m. ET on Thursday from 5 p.m. ET on Friday, a market source said, adding that allocations are expected on Friday.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor and a par issue price, and the debt has 101 soft call protection for one year.

Citigroup Global Markets Inc. is leading the deal that is being used to amend and extend an existing term loan B due in 2019 priced at Libor plus 300 bps with a 1% Libor floor.

The amendment to the term loan B will also revise the restricted payments covenant to more closely align it to the terms of the 2016 bond indenture and extend the time period for voluntary pre-payments in the excess cash flow sweep to 120 days after the year-end to allow the company to more accurately estimate the excess cash flow and voluntarily pre-pay non-extending lenders.

Closing is targeted for Oct. 7.

Ardagh Group is a Luxembourg-based producer of glass and metal products.

Platform discloses talk

Also in the primary market, Platform Specialty Products held its lender call on Thursday, launching its $1,961,000,000-equivalent U.S. dollar and euro seven-year term loan B with talk of Libor/Euribor plus 400 bps with a 1% floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The term loan B is split between a $1,647,000,000 U.S. tranche and a $314 million euro equivalent tranche (about €282 million), the source said.

Commitments are due at noon ET on Oct. 6.

Barclays, Credit Suisse Securities (USA) LLC and Nomura are leading the deal that will be used with balance sheet cash to refinance the company’s existing senior secured U.S. term loan B-1, U.S. term loan B-2 and euro term loan C-1.

Platform is a West Palm Beach, Fla.-based producer of high-technology specialty chemicals and a provider of technical services.

Talen holds meeting

Talen Energy had its bank meeting in the morning, at which time talk on its $600 million seven-year senior secured covenant-light term loan B surfaced at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a source said.

The loan has a ticking fee of half the spread starting 30 days post-allocation and the full spread starting 60 days post-allocation.

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

Goldman Sachs Bank USA, RBC Capital Markets LLC, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and MUFG are leading the deal.

Talen being acquired

Proceeds from Talen’s term loan will be used to help fund the acquisition of the company by Riverstone Holdings LLC for $14.00 per share in cash, in a transaction that has a total enterprise value of roughly $5.2 billion.

The consideration for the common stock in the transaction, of about $1.8 billion, is expected to be funded by the new term loan, a conversion of Riverstone’s existing roughly 35% ownership of Talen Energy common stock into shares of the surviving corporation and Talen Energy’s cash on hand.

Closing is expected by the end of the year, subject to stockholder approval regulatory approvals and other customary conditions.

Talen Energy is an Allentown, Pa.-based competitive energy and power generation company.

PetSmart details emerge

PetSmart launched on its morning call a repricing of its roughly $4,246,000,000 senior secured covenant-light term loan B due March 10, 2022 at talk of Libor plus 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

The repricing will take the term loan down from Libor plus 325 bps with a 1% Libor floor.

Cashless roll commitments are due at 5 p.m. ET on Oct. 5 and new money commitments are due at 5 p.m. ET on Oct. 6, with closing targeted for the week of Oct. 10, the source added.

Citigroup Global Markets Inc. is leading the deal.

PetSmart is a Phoenix-based specialty pet retailer.

Tweddle releases terms

Tweddle Group held its lender call, launching its $225 million seven-year senior secured term loan B with talk of Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Oct. 13, the source said.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing debt and to fund a dividend.

Tweddle is a Clinton Township, Mich.-based author, manager and deliverer of written content to automotive vehicles, delivered via both print (manuals) and electronic media.

Alkermes reveals guidance

Alkermes came out with talk of Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $288 million senior secured covenant-light term loan B-1 (Ba3) due Sept. 25, 2021, according to a market source.

Proceeds will be used to amend and extend the existing term loan B-1 due Sept. 25, 2019 that is priced at Libor plus 275 bps with a 0.75% Libor floor.

Commitments/consents are due at noon ET on Oct. 7, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal.

Alkermes is a Dublin-based biopharmaceutical company.

Badger Sportswear allocates

In other news, Badger Sportswear’s $210 million senior credit facility allocated on Thursday, according to a market source.

The facility consists of a $20 million six-year revolver and a $190 million seven-year term loan.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

Antares Capital is leading the deal that will be used with a privately placed $75 million second-lien term loan to help fund the buyout of the company by CCMP Capital Advisors.

Badger Sportswear is a Statesville, N.C.-based manufacturer and supplier of on-field uniforms and performance athletic apparel focused on serving youth and adult recreational leagues, as well as elementary, middle and high schools.

MRI Software wraps

MRI Software LLC allocated its new debt that consists of a $15 million 120 day available delayed-draw term loan, which was added during syndication, and a $40 million funded add-on term loan, a market source remarked.

Pricing on the term debt is Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99.5, and the delayed-draw term loan has a ticking fee of the full spread plus the floor starting on day 31.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used for general corporate purposes.

MRI Software is a Solon, Ohio-based provider of real estate property and investment management software solutions.

Gypsum closes

Gypsum Management and Supply Inc. (GYP Holdings III Corp.) closed on its $481 million in covenant-light first-lien term loans (B3/B+) due April 1, 2021, a news release said.

The debt, split between a $381 million existing term loan and a $100 million incremental term loan, is priced at Libor plus 350 bps with a 1% Libor floor, and includes 101 soft call protection for six months. The existing loan was issued at par and the incremental loan was sold at an original issue discount of 99.5.

Credit Suisse Securities (USA) LLC led the deal that was used to reprice the existing term loan from Libor plus 375 bps with a 1% Libor floor and to pay down about $99 million of the company’s asset-based revolver borrowings.

Gypsum Management is a Tucker, Ga.-based distributor of wallboard, acoustical products and other specialty building materials.

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