Tessera, BroadStreet, DTZ, Cardenas Markets break; Concordia drops with earnings news

By Sara Rosenberg

New York, Nov. 7 – Tessera Technologies Inc.’s term loan B freed up for trading on Monday after seeing spread and original issue discount finalize at the wide end of talk, the addition of a leverage-based step-down and the extension of the call protection.

BroadStreet Partners Inc. firmed pricing on its term loan at the low end of talk and sweetened the call premium, and DTZ (Cushman & Wakefield) reduced the size of its add-on first-lien term loan and updated the original issue discount for a second time, and then these deals emerged in the secondary market too.

Also on the trading front, Cardenas Markets’ credit facility broke, and Concordia International Corp.’s term loan weakened by a few points with the release of third quarter numbers and the suspension of guidance.

Back in the primary market, Western Generation Partners (WGP Acquisition LLC) lowered the spread on its term loan B, and Netsmart Technologies Inc. raised pricing on its incremental term loan and repricing.

In addition, Cheddar’s Casual Cafe Inc., NXT Capital Inc. and RevSpring released price talk with launch, and EVO Payments International, Learfield Communications Inc. and Kepro emerged with new deal plans.

Tessera hits secondary

Tessera Technologies’ $600 million seven-year senior secured covenant-light term loan B (Ba3/BB-) began trading on Monday, with levels quoted at 99½ bid, par offered on the break and then it moved up to 99 5/8 bid, 100 1/8 offered, according to a trader.

Prior to allocating, pricing on the term loan firmed at Libor plus 325 basis points, the high end of the Libor plus 300 bps to 325 bps talk, a step-down was added to Libor plus 300 bps at 1.5 times leverage, the original issue discount was set at 99, the wide end of the 99 to 99.5 guidance, and the 101 soft call protection was extended to one year from six months, a source added. The loan has a 0.75% Libor floor.

RBC Capital Markets and BMO Capital Markets are leading the deal that will be used to help fund the acquisition of DTS Inc. in an all-cash transaction valued at about $850 million.

Closing is expected late in the fourth-quarter 2016 or early in the first quarter of 2017.

Tessera is a San Jose, Calif.-based licenser of technologies and intellectual property for mobile computing and communications. DTS is a Calabasas, Calif.-based audio technology company.

BroadStreet modified, trades

BroadStreet Partners firmed pricing on its $410 million seven-year term loan B (B2/B+) at Libor plus 425 bps, the tight end of the Libor plus 425 bps to 450 bps talk, and extended the 101 soft call protection to one year from six months, a market source said.

As before, the term loan B has a 1% Libor floor and an original issue discount of 99.

With final terms in place, the loan freed up for trading and levels were seen at 99 3/8 bid, 99 7/8 offered, a trader added.

RBC Capital Markets, SunTrust Robinson Humphrey Inc., ING and SMBC are leading the deal that will be used to refinance existing debt.

BroadStreet is a Columbus, Ohio-based insurance broker.

DTZ reworked, breaks

DTZ trimmed its add-on first-lien term loan due Nov. 4, 2021 to $215 million from $235 million and set the original issue discount at 99.5, tight of revised talk of 99.04 and at the tight end of initial talk of 99 to 99.5 talk, according to a market source.

The add-on loan is priced at Libor plus 325 bps with a 1% Libor floor.

Prior to the add-on first-lien term loan news, the recovery rating from Standard & Poor’s on the first-lien debt was 3. However, the add-on brought that recovery rating down to 4. The downsizing to the loan was down to bring that recovery rating back to 3, the source said.

Recommitments were due at 2 p.m. ET on Monday, and then the loan made its way into the secondary market, with levels quoted at 99½ bid, 99¾ offered, the source added.

UBS Investment Bank is leading the deal that will be used to refinance an existing second-lien term loan priced at Libor plus 825 bps with a 1% Libor floor.

DTZ, a TPG Capital portfolio company, is a real estate services company.

Cardenas tops OID

Cardenas Markets’ credit facility also started trading, with the $165 million seven-year term loan quoted at 99¼ bid, according to a trader.

The term loan is priced at Libor plus 575 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 575 bps to 600 bps talk and the discount was modified from 98.5.

The company’s $190 million credit facility also includes a $25 million five-year revolver.

BMO Capital Markets and Citigroup Global Markets Inc. are leading the deal that will be used to fund the buyout of the company by KKR.

Cardenas is an Ontario-based grocery store chain.

Concordia falls

Also in trading, Concordia International’s term loan dropped to 82 bid, 83½ offered from 88 bid, 89 offered after the third quarter results were announced and financial guidance was suspended, according to a market source.

The company said in a news release that guidance was suspended so that it could assess the business under new leadership.

For the quarter, Concordia reported a net loss of $75.1 million, or $1.47 per share, versus net income of $1.5 million, or $0.04 per share, in the third quarter of 2015.

Revenue for the quarter was $185.5 million, compared to $93 million in the prior year.

And, adjusted EBITDA for the quarter was $104.4 million, versus $71.4 million in previous year.

Concordia is an Oakville, Ont.-based specialty pharmaceutical company focused on generic and legacy pharmaceutical products and orphan drugs.

Sage holds steady

Sage Automotive Holdings Inc.’s $310 million six-year first-lien term loan (B2/B) was quoted at 99 bid, par offered during the session, in line with where it broke for trading on Friday, a market source said.

Pricing on the term loan is Libor plus 500 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year, which was extended from six months during syndication.

UBS Investment Bank is leading the deal that will be used to refinance existing debt and pay a dividend.

Sage Automotive, a Clearlake Capital Group portfolio company, is a Greenville, S.C.-based supplier of specialty designed, high-performance textiles and premium fabrics to the automotive industry.

BWIC announced

A $107.1 million Bid Wanted In Competition surfaced, with bids due at 10 a.m. ET on Tuesday, according to a trader.

Some of the names in the portfolio are Albertson’s LLC, Ascena Retail Group Inc., Burger King, Calpine Corp., Dell International LLC, Energy Transfer Equity LP, First Data Corp., HD Supply Inc., IPC Corp., Landry’s Inc., Neiman Marcus, Petsmart Inc., Serta Simmons Holdings, Tribune Co., West Corp. and Ziggo BV.

There are about 269 issuers in the portfolio, the trader added.

Western Generation revised

Returning to the primary market, Western Generation Partners reduced pricing on its well oversubscribed $245 million term loan B to Libor plus 400 bps from Libor plus 425 bps, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source remarked.

Also, the commitment deadline was moved up to close of business on Monday from Tuesday, the source added.

The company’s $305 million credit facility also includes a $15 million revolver and a $45 million letter-of-credit facility.

Macquarie Capital (USA) Inc. and MUFG are leading the deal that will be used to help fund the acquisition of certain projects from First Reserve’s North American Power I portfolio and Trinity Power.

Harbert Capital and UBS Infrastructure are the sponsors.

Netsmart tweaked

Netsmart Technologies increased pricing on its $40 million incremental term loan and $395 million term loan repricing to Libor plus 450 bps from Libor plus 425 bps, and kept the 1% Libor floor, original issue discount of 99.5 on the incremental, par issue price on the repricing and 101 soft call protection for six months intact, a source remarked.

Golub Capital is leading the deal (B2) that was in the process of allocating late Monday.

The incremental term loan will fund a tuck-in acquisition and the repricing will take the existing term loan down from Libor plus 475 bps with a 1% Libor floor.

Netsmart is an Overland Park, Kan.-based IT company focused on health and human services.

Cheddar’s discloses guidance

Cheddar’s Casual Café revealed price talk on its $370 million senior secured credit facility with its bank meeting, according to a market source.

The $35 million five-year revolver is talked at Libor plus 450 bps with no floor, and the $335 million seven-year first-lien term loan B (B) is talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, the source said.

Commitments are due on Nov. 21.

Morgan Stanley Senior Funding Inc. and Societe Generale are leading the deal that will be used to fund the acquisition of Greer Restaurant Operation Entities, the company’s largest franchisee.

Cheddar’s is a casual dining operator focusing on made-from-scratch food.

NXT launches

NXT Capital launched with a bank meeting its $300 million six-year term loan B at talk of Libor plus 450 bps to 475 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 $350 million senior secured credit facility (B1/BB-) also includes a $50 million revolver.

Commitments are due on Nov. 18, the source added.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

NXT, a Stone Point Capital portfolio company, is a Chicago-based provider of structured financing solutions.

RevSpring releases talk

RevSpring came out with talk of Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $207 million seven-year first-lien term loan that launched with a morning bank meeting, a source remarked.

Commitments are due on Nov. 18, the source added.

The company’s credit facility also includes a $20 million revolver and an $83 million second-lien term loan that was pre-placed.

Jefferies Finance LLC and Madison Capital are leading the deal that will be used to help fund the buyout of the company by GTCR.

Pro forma first-lien leverage is 4.5 times, and second-lien leverage is 6.3 times.

RevSpring is a Wixom, Mich.-based billing and consumer communication platform that allows for the receipt of payments faster with more connection options.

EVO readies deal

EVO Payments set a bank meeting for 10 a.m. ET on Thursday to launch an $845 million credit facility, according to a market source.

The facility consists of a $100 million revolver, a $590 million covenant-light first-lien term loan and a $155 million covenant-light second-lien term loan, the source said.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt and fund acquisitions.

Secured leverage will be around 5.5 times, the source added.

EVO Payments is an Atlanta-based payments processor and acquirer for merchants, independent sales organizations, financial institutions, government organizations and multinational corporations.

Learfield joins calendar

Learfield Communications will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch a $475 million seven-year covenant-light first-lien term loan, a source remarked.

The company’s $640 million credit facility also includes a $65 million revolver and a $100 million second-lien term loan, the source added.

Deutsche Bank Securities Inc., UBS Investment Bank, Jefferies Finance LLC, Antares Capital and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Atairos Group from Providence Equity Partners.

Learfield is a Jefferson City, Mo.-based provider of collegiate sports multimedia rights administration and marketing services.

Kepro on deck

Kepro scheduled a bank meeting for Thursday to launch a $300 million credit facility, a market source said.

The facility consists of a $25 million revolver, a $200 million first-lien term loan and a $75 million second-lien term loan, the source added.

Capital One is the left lead on the deal that will be used to refinance existing debt and fund a dividend.

First-lien leverage is 4 times, and total leverage is 5.5 times.

Kepro is a Harrisburg, Pa.-based quality improvement and care management organization.

Infoblox closes

In other news, the buyout of Infoblox Inc. by Vista Equity Partners for $26.50 per share of common stock in cash has been completed, according to a news release.

To help fund the transaction, Infoblox got a new $800 million senior secured credit facility that includes a $50 million five-year revolver (B1/B-/BB-), a $500 million seven-year covenant-light first-lien term loan (B1/B-/BB-) and a $250 million eight-year covenant-light second-lien term loan (Caa1/CCC/CCC+).

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and pricing on the second-lien term loan is Libor plus 850 bps with a 1% Libor floor, and both tranches were sold at an original issue discount of 98. The first-lien term loan has 101 soft call protection for one year and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Infoblox lead banks

Bank of America Merrill Lynch, RBC Capital Markets LLC, Barclays, Deutsche Bank Securities Inc. and Macquarie Capital (USA) Inc. led Infoblox’s credit facility, with Bank of America left lead on the first-lien loan and RBC left lead on the second-lien loan.

During syndication, the spread on the first-lien term loan was lifted from Libor plus 450 bps, the discount widened from talk of 99 to 99.5 and the call protection was extended from six months, and pricing on the second-lien term loan was increased from Libor plus 825 bps while the discount was modified from talk of 98.5 to 99.

Infoblox is a Santa Clara, Calif.-based provider of Actionable Network Intelligence to enterprise, government and service provider customers.

Bright Horizons completed

Bright Horizons Family Solutions Inc. closed on its $1,125,000,000 seven-year term loan B of which $200 million will be unfunded at closing, according to a 10-Q filed with the Securities and Exchange Commission.

Pricing on the term loan B is Libor plus 275 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75.

J.P. Morgan Securities LLC led the deal that was used to amend and extend an existing term loan B and to refinance debt.

Bright Horizons is a Watertown, Mass.-based provider of employer-sponsored child care, back-up care, early education, educational advisory services and other work/life services.

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