LANDesk, Hearthside price talk surfaces; 1-800 Contacts, Travel, Berry, Petco, Delos on deck

By Sara Rosenberg

New York, Jan. 4 – In the primary market on Wednesday, LANDesk Software Group Inc. and Hearthside Group Holdings LLC came out with price talk on their new loan transactions in connection with their launches.

Also, 1-800 Contacts Inc. (CNT Holdings III Corp.) emerged with first-lien term loan repricing plans, and Travel Leaders Group LLC, Berry Plastics Group Inc., Petco Animal Supplies Inc. and Delos Finance Sarl joined this week’s calendar.

LANDesk discloses talk

LANDesk held its lenders’ presentation on Wednesday, and with the event, price talk on its $1.1 billion senior secured credit facility was announced, according to a market source.

The $75 million five-year revolver (B-) is talked at Libor plus 475 basis points to 500 bps with no Libor floor; the $800 million seven-year covenant-light first-lien term loan (B-) is talked at 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; and the $225 million eight-year covenant-light second-lien term loan (CCC+) is talked at Libor plus 900 bps to 925 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. 18.

Morgan Stanley Senior Funding Inc., Barclays, Jefferies Finance LLC, Golub Capital LLC, Macquarie Capital Inc. and Nomura Securities International are leading the deal.

LANDesk being acquired

Proceeds from LANDesk’s credit facility will be used to help fund its buyout by Clearlake Capital Group LP from Thoma Bravo and to refinance existing debt.

Clearlake will contribute its portfolio company HEAT Software, a Milpitas, Calif.-based provider of Cloud Service Management and Unified Endpoint Management software solutions, to the new platform investment in LANDesk.

The combined company will operate under a new corporate name to be announced at a later date.

Closing is expected this month.

LANDesk is a Salt Lake City-based user-centered IT management company.

Hearthside reveals guidance

Hearthside disclosed talk of Libor plus 300 bps with a 1% Libor floor and 101 soft call protection for six months on its fungible $50 million add-on term loan and repricing of its $550.9 million term loan B due June 2, 2021 that launched with a lender call during the session, a market source said.

The debt is being offered at par for rolled amounts and at 99.75 for new-money commitments, the source added.

Commitments/consents are due at 5 p.m. ET on Tuesday.

Barclays and Goldman Sachs Bank USA are leading the deal.

Proceeds from the add-on term loan will be used to repay revolver borrowings and to pay related fees and expenses, and the repricing will take the existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Hearthside is a Downers Grove, Ill.-based manufacturer of grain based food and snack products.

1-800 Contacts sets call

1-800 Contacts scheduled a lender call for 1 p.m. ET on Thursday to launch a repricing of its $496 million covenant-light first-lien term loan (B1/B) due Jan. 22, 2023, according to a market source.

The repriced loan is talked at Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will reprice the existing first-lien term loan down from Libor plus 425 bps with a 1% Libor floor.

Commitments are due at 5 p.m. ET on Jan. 12.

Immediately after the repricing news hit the market, the company’s first-lien term loan was quoted at par bid, 100¾ offered in the secondary market, but shortly thereafter, it moved to 100 1/8 bid, 100 5/8 offered, a trader added.

1-800 Contacts is a Draper, Utah-based retailer of contact lenses.

Travel Leaders on deck

Travel Leaders Group set a lenders’ presentation for 2 p.m. ET on Thursday to launch a $425 million senior secured credit facility, according to a market source.

The facility consists of a $25 million revolver and a $400 million first-lien term loan, the source said.

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.

Berry coming soon

Berry Plastics scheduled a lender call for 11 a.m. ET on Thursday to launch a new loan deal, for which Citigroup Global Markets Inc. is the left lead arranger, a source said.

The company revealed last year in filings with the Securities and Exchange Commission that it received a commitment for a $500 million seven-year senior secured incremental term loan I expected to be priced at Libor plus 275 bps with a 1% Libor floor to help fund the cash portion of its acquisition of AEP Industries Inc.

In the filings, Citigroup, Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Wells Fargo Securities LLC were listed as the leads on the term loan I.

Berry is buying AEP 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.

Other funds for the cash portion of the transaction will come from cash on hand.

Closing is expected around Feb. 1, 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.

Petco joins calendar

Petco Animal Supplies set a lender call for noon ET on Thursday to launch a new loan transaction, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

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

Delos plans call

Delos Finance surfaced with plans to hold a lender call at 10:30 a.m. ET on Thursday, a market source remarked.

Deutsche Bank Securities Inc. is hosting the call for the company.

Details on the purpose of the call are not yet available.

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

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