Solera trades lower with Autodata acquisition news; primary sees multiple deal launches

By Sara Rosenberg

New York, Jan. 5 – Solera Holdings Inc.’s term loan B softened in the secondary market on Thursday following word that the company would be taking on incremental term loan debt to finance its acquisition of Autodata.

Over in the primary market, TeamHealth Holdings Inc., Synchronoss Technologies Inc., Berry Plastics Corp., Optiv Security Inc., Travel Leaders Group LLC, Petco Animal Supplies Inc., Delos Finance Sarl, Ellucian and Montreign Operating Co. LLC released price talk on their new loan transactions with launch.

Additionally, AmWINS Group LLC, Electro Rent Corp. and American Bath Group LLC surfaced with new deal plans, and Zayo Group Holdings Inc. came out with size and timing on its loan.

Solera weakens

Solera’s term loan B dipped in trading on Thursday in reaction to news that the company would be getting a $300 million incremental term loan B for its purchase of Autodata from Bowmark Capital and Rothschild & Co.’s Five Arrows Principal Investments, according to a market source.

The term loan B was quoted at 100¼ bid, 101 offered, down from 101 1/8 bid, 101 5/8 offered, the source said.

It is expected that the incremental term loan B will come to market sometime this month.

Nomura, Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the new loan.

Solera is a Westlake, Texas-based provider of software and services to the automobile insurance claims processing industry. Autodata is a UK-based provider of technical information and knowledge solutions for the automotive service, maintenance and repair industry.

TeamHealth sets guidance

Moving to the primary market, TeamHealth came out with talk of Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $2.6 billion seven-year covenant-light term loan B that launched with a bank meeting on Thursday, according to a market source.

The company’s $3 billion senior secured credit facility (B1/B) also includes a $400 million revolver.

Commitments are due on Jan. 17, the source said.

J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are leading the credit facility that will be used with an expected $1,015,000,000 in bonds and $2.7 billion of equity to fund the buyout of the company by Blackstone for $43.50 per share in cash. The transaction is valued at about $6.1 billion.

Closing is expected this quarter, subject to stockholder approval, regulatory approvals and other customary conditions. The transaction is not subject to financing.

TeamHealth is a Knoxville, Tenn.-based physician services organization.

Synchronoss reveals talk

Synchronoss Technologies held its bank meeting at 1 p.m. ET, and shortly before the event kicked off, talk on its $900 million seven-year first-lien term loan B emerged as Libor plus 300 bps to 325 bps with no floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

The company’s $1.15 billion senior secured deal (Ba3/BB-) also includes a $250 million five-year revolver.

Commitments are due at 5 p.m. ET on Jan. 18, the source added.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and KeyBanc Capital Markets Inc. are leading the deal that will be used to help fund the acquisition of Intralinks Holdings Inc. for $13.00 per share or $821 million in equity value.

The transaction is also anticipated to be funded with cash on hand and with proceeds from the sale of a portion of Synchronoss’ activation business to Sequential Technology International LLC for $146 million.

Closing is expected this quarter, subject to customary conditions, including regulatory approval.

Synchronoss is a Bridgewater, N.J.-based provider of managed mobility solutions for Service Providers and Enterprise. Intralinks is a New York-based content collaboration company.

Berry holds call

Berry Plastics launched on its lender call $2,395,000,000 of term loans (BB) split between a $1,895,000,000 term loan I due October 2022 and a $500 million seven-year term loan J, a source remarked.

The term loans are talked at Libor plus 250 bps with no Libor floor and 101 soft call protection for six months, with the term loan I offered at par and the term loan J offered at an original issue discount of 99.5, the source continued.

Proceeds from the term loan I will be used to reprice an existing term loan H from Libor plus 275 bps with a 1% Libor floor and the term loan J will be used with cash on hand to fund the cash portion of the acquisition of AEP Industries Inc. and refinance existing first-lien term loans.

AEP is being bought for either $110 in cash or 2.5011 shares of Berry common stock per AEP share, subject to an overall 50/50 proration. The transaction is valued at $765 million, including AEP’s net debt.

Berry lead banks

Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading Berry Plastics’ term loans.

Cashless roll commitments are due at 5 p.m. ET on Wednesday, new term loan commitments are due at 5 p.m. ET on Jan. 12, and closing is expected during the week of Jan. 16, the source added.

Closing on the acquisition is subject to AEP shareholder approval and other customary conditions.

Berry is an Evansville, Ind.-based provider of value-added plastic consumer packaging and engineered materials. AEP is a Montvale, N.J.-based manufacturer of flexible plastic packaging films.

Optiv comes to market

Optiv Security hosted its bank meeting, and revealed to lenders that it is seeking a $1.13 billion credit facility, comprised of a $100 million five-year ABL revolver, a $750 million seven-year covenant-light first-lien term loan and a $280 million eight-year covenant-light second-lien term loan, according to a market source.

Prior to the bank meeting, it was known that the facility would include an ABL revolver, a covenant-light first-lien term loan and a covenant-light second-lien term loan, but tranche sizes were not available.

Also with the bank meeting, talk was announced, with the first-lien term loan launched at Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan launched at Libor plus 850 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on Jan. 19.

Optiv being acquired

Proceeds from Optiv Security’s credit facility will be used to help fund its buyout by KKR from a group of private investors, including a private equity fund managed by Blackstone, which will maintain a minority interest in Optiv along with Optiv management. Other selling shareholders include Investcorp and Sverica.

Jefferies Finance LLC, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the debt.

Closing on the buyout is expected this quarter, subject to customary conditions.

Optiv Security is a Denver-based provider of end-to-end cyber security solutions.

Travel Leaders talk

Travel Leaders Group disclosed talk of Libor plus 550 bps to 575 bps with no floor, an original issue discount of 99 and 101 soft call protection for six months on its $400 million seven-year covenant-light first-lien term loan B that launched with a lenders’ presentation in the afternoon, a source remarked.

The company’s $425 million senior secured credit facility (B2/B+) also includes a $25 million five-year revolver.

Commitments are due on Jan. 19, the source added.

Morgan Stanley Senior Funding Inc. and UBS Securities LLC are leading the deal that will be used to refinance existing debt, for general corporate purposes and for certain acquisitions.

Travel Leaders is a Plymouth, Minn.-based travel agency company.

Petco details emerge

Petco held its lender call at noon ET, and a few hours before the call began, it was revealed that the company is seeking a $2,506,000,000 senior secured covenant-light term loan B-1 (B1/B) due Jan. 26, 2023 talked at Libor plus 325 bps with a 25 bps step-down when net first-lien leverage is 4 times, a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Nomura and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice the company’s existing term loan B-1 and term loan B-2 and consolidate the debt into one term loan B-1 tranche.

The term loan B-1 is currently priced at Libor plus 400 bps with a 1% Libor floor and term loan B-2 is currently priced at Libor plus 425 bps with no floor, and both tranches have a 25 bps step-down in pricing when first-lien leverage is 4 times.

Cashless roll commitments are due at 5 p.m. ET on Wednesday, new money commitments are due at 5 p.m. ET on Jan. 12 and closing is expected on Jan. 27, the source added.

Petco is a San Diego-based specialty retailer of pet food, supplies and services.

Delos Finance launches

Delos Finance approached lenders on its morning call with a $1.5 billion term loan (Baa3/BBB-/BBB-) due Oct. 6, 2023 that is talked at Libor plus 225 bps with a 0.75% Libor floor, an original issue discount of 99.875 and 101 soft call for six months, a market source said.

Commitments are due at noon ET on Jan. 12, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance an existing term loan due March 6, 2021.

Delos is a subsidiary of AerCap Holdings NV, a Dublin-based commercial aircraft leasing company.

Ellucian repricing

Ellucian held a lender call in the afternoon to launch a repricing of its $1.53 billion term loan B due 2022 that is talked at Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

The repricing will take the term loan down from Libor plus 375 bps with a 1% Libor floor.

Commitments are due at 5 p.m. ET on Wednesday, the source said.

Bank of America Merrill Lynch is the left lead on the deal.

Ellucian is a Fairfax, Va.-based provider of higher education software and services.

Montreign seeks incremental

Montreign Operating launched a fungible $25 million incremental first-lien term loan talked at Libor plus 825 bps with a 1% Libor floor and an issue price of 99.5 to par, according to a market source.

The debt is non-callable for 2.5 years, then at 102 for a year and 101 for a year.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to shift funds from the company’s Furniture, Fixtures & Equipment financing to term loan B debt.

Montreign Operating is a casino operator in the Hudson Valley.

AmWINS joins calendar

Also in the primary market, AmWINS Group scheduled a lender call for 10:30 a.m. ET on Tuesday to launch a $1,375,000,000 credit facility, a market source said.

The facility consists of a $125 million revolver, a $1.05 billion first-lien term loan and a $200 million second-lien term loan, the source added.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt and for general corporate purposes.

AmWINS is a Charlotte, N.C.-based specialty insurance broker.

Electro Rent readies deal

Electro Rent set a bank meeting for 10 a.m. ET at the New York Palace Hotel on Monday to launch a $475 million seven-year covenant-light first-lien term loan, a market source remarked, adding that one-on-one’s will be available at the Palace after the bank meeting, and there will be a roadshow in New York/Boston on Tuesday and a roadshow in Los Angeles on Wednesday.

The company also plans on getting an $85 million revolver and a privately-placed $75 million second-lien term loan as part of its $635 million credit facility.

Deutsche Bank Securities Inc., Barclays, BMO Capital Markets and Goldman Sachs Bank USA are leading the deal that will be used to help fund the acquisition of Microlease from Lloyds Development Capital, which is expected to close this quarter.

Platinum Equity is the sponsor.

Electro Rent is a Van Nuys, Calif.-based provider of specialty testing and measurement equipment services. Microlease is a London-based equipment services and distribution provider to the test and measurement industry.

American Bath on deck

American Bath Group emerged with plans to hold a lender call on Monday to launch an incremental first-lien term loan, according to a market source.

The company also plans on getting an incremental second-lien term loan that has been privately placed, the source said.

Credit Suisse Securities (USA) LLC is leading the loans that will be used with new equity to fund the acquisition of Maax Bath, a Lachine, QC-based manufacturer of bathtubs, showers and shower doors.

American Bath Group is a Savannah, Tenn.-based designer and manufacturer of fiberglass reinforced plastic, sheet molded compound and acrylic bathtubs and showers.

Zayo sets launch

Zayo Group scheduled a lender call for 11 a.m. ET on Friday to launch a $650 million incremental senior secured term loan B that will be used to help fund its previously announced acquisition of Electric Lightwave for $1.42 billion in cash, a market source said.

Morgan Stanley Senior Funding Inc., Barclays, SunTrust Robinson Humphrey Inc., RBC Capital Markets, Citigroup Global Markets Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal.

Zayo said in an 8-K filed with the Securities and Exchange Commission on Thursday that it plans on getting a total of $1.45 billion of new senior secured and senior unsecured debt for the acquisition.

Closing is expected this quarter, subject to customary regulatory approvals and conditions.

Zayo is a Boulder, Colo.-based provider of communications infrastructure services. Electric Lightwave, formerly known as Integra Telecom, is a Vancouver, Wash.-based provider of infrastructure and telecom services.

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