Heartland, Avast, EnergySolutions, Albany Molecular, Culligan, Victory, FleetCor break

By Sara Rosenberg

New York, July 28 – Heartland Dental LLC finalized the spread on its first-lien term loan at the high end of talk and widened the original issue discount on its second-lien term loan, and Avast Software firmed the issue price on its incremental term loans at the tight side of revised guidance, and then these deals freed up for trading on Friday.

Also, EnergySolutions LLC set pricing on its term loan at the low end of talk and broke for trading, and Albany Molecular Research Inc., Culligan Holding Inc., Victory Capital Operating LLC and FleetCor Technologies Inc. hit the secondary market as well.

In more happenings, Asurion LLC finalized spread and issue price on its first-lien term loan at the tight end of guidance, Scientific Games Corp. lowered the spread on its term loan B-4, Travelport firmed pricing on its term loan at the tight end of talk and Compuware Corp. accelerated the commitment deadline on its term loan.

Furthermore, Staples Inc. came out with timing on the launch of its term loan, and Big River Steel, Zekelman Industries, SpecialtyCare and PolyOne Corp. surfaced with new deal plans.

Heartland tweaked, trades

Heartland Dental set pricing on its $750 million six-year covenant-light first-lien term loan (B2/B-) at Libor plus 475 basis points, the wide end of the Libor plus 450 bps to 475 bps talk, and extended the 101 soft call protection to one year from six months, while leaving the 1% Libor floor and original issue discount of 99.5 unchanged, according to a market source.

Also, the company revised the original issue discount on its $225 million seven-year covenant-light second-lien term loan (Caa2/CCC) to 98.5 from 99, the source said. This tranche is still priced at Libor plus 850 bps with a 1% Libor floor and has call protection of 102 in year one and 101 in year two.

The company’s $1,075,000,000 of credit facilities also include a $100 million revolver (B2/B-).

On Friday, the debt made its way into the secondary market, with the first-lien term loan quoted at par bid, par ½ offered and the second-lien term loan quoted at 101 bid, 102 offered, the source said.

BMO Capital Markets, Barclays, Morgan Stanley Senior Funding Inc. and KKR Capital Markets are leading the deal that will be used to refinance existing debt and is expected to close on Monday.

Heartland Dental is an Effingham, Ill.-based dental support organization that is majority-owned by Ontario Teachers’ Pension Plan.

Avast sets price, frees up

Avast Software firmed the issue price on its fungible $50 million incremental covenant-light term loan B due September 2023 and fungible €75 million incremental covenant-light term loan B due September 2023 at 100.5, the tight end of revised talk of 100.25 to 100.5 and tight of initial talk of par, a market source said.

Pricing on the incremental U.S. term loan is Libor plus 325 bps with a 1% Libor floor, pricing on the incremental euro term loan is Euribor plus 350 bps with a 0% floor and both loans have 101 soft call protection through Sept. 30.

On Thursday, the euro incremental term loan was upsized from €50 million.

With pricing finalized, the debt broke for trading and the U.S. loan was quoted at par ¾ bid, 101 offered, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used for general corporate purposes.

Avast is a Prague-based maker of security software.

EnergySolutions firms, breaks

EnergySolutions finalized pricing on its amended $456.5 million senior secured covenant-light term loan B (B3/B-) due May 29, 2020 at Libor plus 475 bps, the low end of the Libor plus 475 bps to 500 bps talk, according to a market source.

The term loan still has a 1% Libor floor, a par issue price and 101 soft call protection for one year.

In the late afternoon, the term loan began trading and levels were quoted at 101 bid, 101 ½ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B, and the amendment, for which lenders were offered a 25 bps consent fee, allows for a one-time distribution to shareholders.

The amended term loan B size accounts for a planned $100 million pay down from the current amount of $556.5 million.

Closing is expected on Wednesday.

EnergySolutions is a Salt Lake City-based nuclear services company.

Albany Molecular levels surface

Albany Molecular Research’s credit facilities hit the secondary market, with the $655 million seven-year first-lien term loan quoted at par 7/8 bid, 101 3/8 offered and the $205 million eight-year second-lien term loan quoted at 101¾ bid, a trader remarked.

Pricing on the first-lien term loan is Libor plus 325 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 for one year.

The second-lien term loan is priced at Libor plus 700 bps with a 1% Libor floor and was sold at a discount of 99.5. This tranche has call protection of 102 in year one and 101 in year two.

On Thursday, the first-lien term loan was upsized from $620 million, pricing was trimmed from talk of Libor plus 350 bps to 375 bps, the discount was changed from 99.5 and the call protection was extended from six months. Also, pricing on the second-lien term loan was cut from talk of Libor plus 750 bps to 775 bps and the discount was revised from 99.

Albany Molecular getting revolver

In addition to the term loans, Albany Molecular’s $960 million of senior secured credit facilities provide for a $100 million five-year revolver.

Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets, Goldman Sachs Bank USA, Jefferies LLC and Mizuho Bank Ltd. are the bookrunners on the deal, with Barclays the left lead on the first-lien term loan and Morgan Stanley the left lead on the second-lien term loan.

Proceeds will be used with equity to fund the buyout of the company by the Carlyle Group and GTCR LLC for $21.75 per share in cash. The amount of equity was reduced due to the recent first-lien term loan upsizing.

Closing is subject to shareholder approval, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Albany Molecular is an Albany, N.Y.-based contract research and manufacturing organization that works with the life sciences industry to improve patient outcomes and the quality of life.

Culligan starts trading

Culligan’s bank debt began trading as well, with the $345 million incremental covenant-light senior secured term loan B due Dec. 13, 2023 quoted at par ¼ bid, par ¾ offered and the repriced $298.5 million covenant-light term loan B-1 due Dec. 13, 2023 quoted at par 3/8 bid, par 7/8 offered, according to a trader.

Pricing on the term loans is Libor plus 350 bps with a step-down to Libor plus 325 bps at 0.75 times below closing net first-lien leverage and a 1% Libor floor. The incremental loan was sold at an original issue discount of 99.875 and the repricing was issued at par, and both loans have 101 soft call protection for six months.

On Thursday, the incremental loan was upsized from $335 million and the discount was tightened from 99.5, pricing on all of the term loan debt was set at the low end of the Libor plus 350 bps to 375 bps talk and the step-down was added.

Culligan lead banks

Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, BMO Capital Markets Corp. and Citigroup Global Markets Inc. are leading Culligan’s loans.

The incremental term loan B is at an Australian borrower, and the term loan B-1 is at a U.S. borrower.

Proceeds from the incremental loan will be used to fund the acquisition of Zip Industries and to refinance an existing euro term loan B, and the repricing will take the term loan B-1 down from Libor plus 400 bps with a 1% Libor floor. The upsizing to the incremental loan was done to account for foreign exchange rates.

Closing is expected in late August.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services. Zip Industries is an Australian supplier of instant drinking water appliances.

Victory tops 101

Victory Capital’s $540 million term loan B (B2/BB-) due Oct. 31, 2021 was another deal to emerge in the secondary market, with levels seen at 101 1/8 bid, 101 5/8 offered, a trader remarked.

Pricing on the loan is Libor plus 525 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Thursday, pricing on the term loan was reduced from talk of Libor plus 550 bps to 600 bps.

RBC Capital Markets LLC is leading the deal that will be used to reprice an existing term loan B from Libor plus 750 bps with a 1% Libor floor.

Victory Capital is a Brooklyn, Ohio-based asset management firm.

FleetCor frees up

FleetCor Technologies’ $350 million seven-year covenant-light term loan also broke, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 200 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $250 million, pricing was reduced from Libor plus 225 bps and the discount firmed at the tight end of the 99.5 to 99.75 talk.

Bank of America Merrill Lynch is leading the deal that will be used to amend and extend from 2021 an existing term loan.

FleetCor is a Norcross, Ga.-based provider of specialized payment products and services, including fleet cards, food cards and corporate lodging discount cards for businesses.

Alorica above par

Also in trading, Alorica Inc.’s $301 million first-lien term loan (B1/BB-) due June 30, 2022 was quoted at par ¼ bid, par ¾ offered on Friday after breaking for trading on Thursday afternoon, a market source said.

Pricing on the term loan is Libor plus 375 bps with a step-down to Libor plus 350 bps and a 0.75% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 0.75% Libor floor.

Alorica is an Irvine, Calif.-based provider of outsourced customer and financial care solutions.

Asurion sets terms

Back in the primary market, Asurion firmed pricing on its $2.6 billion first-lien term loan (Ba3) due August 2022 at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, and finalized the issue price at par, the tight end of the 99.75 to par talk, a market source remarked.

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

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

Asurion is a Nashville-based provider of technology protection services.

Scientific Games cuts spread

Scientific Games trimmed pricing on its $3,283,000,000 term loan B-4 (Ba3/B+) due August 2024 to Libor plus 325 bps from Libor plus 350 bps, according to a market source.

As before, the term loan has a 0% Libor floor and an original issue discount of 99.5.

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

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Fifth Third Bank, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and PNC are leading the deal that will be used to refinance/extend an existing term loan B-3 due October 2021.

Scientific Games is a New York-based developer of technology-based products and services and associated content for gaming and lottery markets.

Travelport updated

Travelport set pricing on its $2,266,000,000 first-lien term loan (B2/B+) due September 2021 at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps, 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.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Closing is expected during the week of July 31.

Travelport is an Atlanta-based provider of transaction processing services to the travel industry.

Compuware moves deadline

Compuware accelerated the commitment deadline on its $200 million add-on first-lien term loan to 3 p.m. ET on Monday from 5 p.m. ET on Tuesday, a market source remarked.

Pricing on the add-on term loan is Libor plus 425 bps with a 1% Libor floor, in line with existing term loan pricing, and the new debt is talked with an original issue discount of 99.75.

The add-on term loan and existing term loan will get 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used with balance sheet cash to pay down a portion of the company’s existing second-lien term loan at the 101 call premium.

With the deadline, the company is seeking related amendment requests, and consents for the amendment continue to be due at 3 p.m. ET on Monday.

Compuware is a Detroit-based technology performance company.

Staples timing emerges

Staples scheduled a bank meeting for 10 a.m. ET in New York on Wednesday to launch its $2.4 billion term loan, according to a market source. The deal was previously labeled as early August business but a specific date had been unavailable.

UBS Investment Bank, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, Jefferies LLC, Fifth Third Bank, Goldman Sachs Bank USA, Citigroup Global Markets Inc., KKR Capital Markets and Natixis are leading the deal that will be used to help fund the buyout of the company by Sycamore Partners for $10.25 per share in cash per share of common stock. The transaction is valued at about $6.9 billion.

The company is also getting a $1.2 billion ABL facility led by Wells Fargo and has received a commitment for a $1.6 billion unsecured bridge loan led by Bank of America.

Closing is expected no later than December, subject to customary conditions, including the receipt of regulatory and stockholder approval. The transaction is not subject to a financing condition.

Staples is a Framingham, Mass.-based retailer of office supplies.

Big River on deck

Big River Steel set a bank meeting for 1 p.m. ET in New York on Monday to launch a $500 million six-year senior secured term loan B and will hold a site visit at 1:30 p.m. ET on Thursday in Osceola, Ark., according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Big River Steel is an Osceola, Ark.-based owner and operator of a technologically-advanced flat-rolled steel mini-mill located in Northeast Arkansas.

Zekelman readies repricing

Zekelman Industries will hold a lender call at 3 p.m. ET on Tuesday to launch a repricing of its existing $916 million first-lien term loan, a market source said.

The soft call protection on the existing term loan rolls off on Aug. 9, the source added.

Goldman Sachs Bank USA is leading the deal.

Zekelman Industries, formerly known as JMC Steel, is a Chicago-based manufacturer of industrial steel pipe and tubular products.

SpecialtyCare coming soon

SpecialtyCare emerged with plans to hold a lender meeting in New York on Wednesday to launch $340 million of credit facilities, according to a market source.

The facilities consist of a $45 million five-year revolver, a $212 million six-year covenant-light first-lien term loan and an $83 million seven-year second-lien term loan, the source said.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by Kohlberg & Co.

SpecialtyCare is a Nashville, Tenn.-based provider of outsourced clinical services to hospitals and health systems.

PolyOne joins calendar

PolyOne scheduled a call for 3:30 p.m. ET on Monday to launch a new loan transaction to existing and prospective lenders, a market source remarked.

Citigroup Global Markets Inc. is leading the deal.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials, services and solutions.

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