DexKo frees up; Asurion revised; Heartland, CareerBuilder, Capco, CPM, FleetCor reveal talk

By Sara Rosenberg

New York, July 13 – DexKo Global Inc.’s credit facilities made their way into the secondary market on Thursday, with the U.S. first-lien term loan and the second-lien term loan seen trading above their original issue discounts.

Over in the primary market, Asurion LLC firmed the spread on its second-lien term loan at the low side of guidance and tightened the issue price, and set the issue price on its add-on first-lien term loan B-5 at the tight end of talk.

Also, Heartland Dental LLC, CareerBuilder LLC, Capco (Cardinal US Holdings Inc.), CPM Acquisition Corp. and FleetCor Technologies Inc. released price talk with launch.

Furthermore, American Rock Salt Co. LLC, Eyemart Express LLC, United Pacific and Jefferies Finance LLC surfaced with new deal plans.

DexKo starts trading

DexKo’s credit facilities broke for trading on Thursday, with the $570 million seven-year first-lien term loan (B2/B) quoted at par 3/8 bid, par 7/8 offered before it moved up to par ¾ bid, 101¼ offered and the $250 million eight-year second-lien term loan (Caa1/CCC+) quoted at 99½ bid, par offered before it moved up on the offer side to 99½ bid, par ½ offered, according to market sources.

Pricing on the U.S. term loan B is Libor plus 400 basis points with a step-down to Libor plus 375 bps at 4.75 times leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was issued at a discount of 98.5. This tranche has call protection of 102 in year one and 101 in year two.

On Wednesday, pricing on the U.S. term loan B firmed at the tight end of the Libor plus 400 bps to 425 bps talk and the step-down was added, and pricing on the second-lien term loan was set at the low end of the Libor plus 825 bps to 850 bps talk.

DexKo euro term loan

Along with the U.S. term loans, DexKo is getting a €350 million seven-year first-lien term loan (B2/B) priced at Euribor plus 450 bps with a 0% floor and issued at a discount of 99.5. This tranche has 101 soft call protection for six months.

During syndication, the euro term loan was downsized from €357 million but the dollar equivalent was unchanged and pricing finalized at the low end of the Euribor plus 450 bps to 475 bps talk.

The company’s new credit facilities include a $150 million revolver (B2/B) as well.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by KPS Capital Partners LP. DexKo’s existing controlling shareholder, the Sterling Group LP, will continue to own a minority stake in the company.

Closing is expected around mid-year, subject to customary conditions and approvals.

DexKo is a Novi, Mich.-based supplier of highly engineered running gear technology, chassis assemblies and related components.

Asurion tweaks deal

Switching to the primary market, Asurion finalized the spread on its $1.8 billion eight-year second-lien term loan (B3/B-) at Libor plus 600 bps, the low end of the Libor plus 600 bps to 625 bps talk, and tightened the issue price to par from 99, while leaving the 0% Libor floor and call protection of 102 in year one and 101 in year two unchanged, according to a market source.

In addition, the company set the issue price on its $800 million add-on first-lien term loan B-5 (Ba3/B+) due November 2023 at par, the tight end of the 99.75 to par talk, the source said. This tranche is still priced at Libor plus 300 bps with a 0% Libor floor and has 101 soft call protection through Nov. 4, just like the existing term loan B-5.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the $2.6 billion in term loans that will be used to refinance an existing second-lien term loan and to pre-fund the repayment of the company’s existing unsecured term loan due 2021 that would take place when the loan becomes callable after Aug. 31.

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

Heartland discloses guidance

Heartland Dental held its bank meeting on Thursday, and with the event, price talk on its $750 million six-year covenant-light first-lien term loan (B2/B-) and $225 million seven-year covenant-light second-lien term loan (Caa2/CCC) was announced, according to a market source.

Talk on the first-lien term loan is Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 850 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

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

Commitments are due on July 26, the source added.

BMO Capital Markets, Barclays and KKR Capital Markets are leading the deal that will be used to refinance existing debt and to pay related fees and expenses.

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

CareerBuilder sets talk

CareerBuilder came out with talk of Libor plus 600 bps with a 1% Libor floor, an original issue discount of 98 to 99 and 101 soft call protection for six months on its $350 million six-year covenant-light first-lien term loan a few hours before its afternoon bank meeting began, a market source said.

The company’s $400 million of credit facilities (B2/B) also include a $50 million revolver.

Commitments are due at 5 p.m. ET on July 25.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by Apollo Global Management LLC and Ontario Teachers’ Pension Plan Board.

Closing is expected in the third quarter, subject to regulatory approvals and customary conditions.

Post close, the company’s current owners, Tegna Inc., Tribune National Marketing Co. LLC and McClatchy Interactive West, will retain a minority interest.

CareerBuilder is a Chicago-based end-to-end human capital solutions company focused on helping employers find, hire and manage great talent.

Capco terms emerge

Capco released talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $250 million seven-year term loan B that launched with a bank meeting in the afternoon, according to a market source.

The company’s $315 million of credit facilities (B) also include a $65 million five-year revolver.

Commitments are due at noon ET on July 27, the source said.

Barclays, Credit Suisse Securities (USA) LLC, BMO Capital Markets, HSBC Securities (USA) Inc., Natixis, Credit Agricole, ING and Fifth Third Bank are leading the deal that will be used to help fund the purchase by Clayton, Dubilier & Rice (CD&R) of a 60% interest in the company from FIS, and FIS will retain a roughly 40% interest in the company. FIS will receive net cash proceeds of $477 million for the 60% interest it is selling.

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

Capco is a provider of business, digital and technology consulting services for the financial services industry.

CPM holds call

CPM Acquisition had its lender call in the morning and disclosed price talk on its $50 million incremental covenant-light first-lien term loan B (B) due April 2022 and $110 million covenant-light second-lien term loan (B-) due April 2023 with its lender call on Thursday, a market source said.

Talk on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 825 bps with a 1% Libor floor, a discount of 99.5 and hard call protection of 103 in year one and 101 in year two, the source continued.

Commitments/consents are due at noon ET on July 20.

Consenting first-lien term loan lenders are offered a 25 bps amendment fee, the source added.

Morgan Stanley Senior Funding Inc. and BMO Capital Markets Corp. are leading the $160 million in senior secured term loans that will be used to repay existing debt, fund a dividend to shareholders and pay related fees.

CPM is a supplier of process equipment used for oilseed processing and animal feed production.

FleetCor seeks loan

FleetCor Technologies launched on its lender a $250 million term loan talked Libor plus 225 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source remarked.

Commitments are due on July 27, the source added.

Bank of America Merrill Lynch is leading the deal that will be used to amend and extend 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.

American Rock coming soon

Also in the primary market, American Rock Salt surfaced with plans to hold a bank meeting on Tuesday to launch $570 million of credit facilities, a market source said.

The facilities consist of a $60 million five-year revolver and a $510 million seven-year term loan B, the source added.

Citizens Bank and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt.

American Rock Salt is a Mount Morris, N.Y.-based salt mine operator.

Eyemart on deck

Eyemart Express set a bank meeting for 9:30 a.m. ET on Tuesday to launch a $355 million seven-year covenant-light first-lien term loan (B), according to a market source.

Commitments are due on July 28, the source said.

Barclays and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt, fund a distribution to shareholders and pay related fees and expenses.

Eyemart is a Farmers Branch, Texas-based optical retailer.

United Pacific readies deal

United Pacific scheduled a bank meeting for 10 a.m. ET in New York on July 20 to launch $255 million of credit facilities, a market source remarked.

The facilities consist of a $25 million revolver and a $230 million first-lien term loan, the source added.

Goldman Sachs Bank USA is leading the deal.

United Pacific is a seller of fuel and convenience items through its network of retail gas stations and a convenience store operator.

Jefferies joins calendar

Jefferies Finance will begin a roadshow on Monday to launch a $250 million seven-year senior secured term loan, according to a market source.

The loan is being marketed at the same time as a $400 million seven-year senior notes offering. There will be a bank meeting for the term loan on Tuesday with the N.Y. group lunch, the source said.

Jefferies LLC, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are leading the debt that will be used to repay an existing term loan and for general corporate purposes.

Jefferies is a New York-based commercial finance company.

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