EMI breaks; APC, Acrisure revised; Charter NEX, Mortgage Contracting, Insight Global launch

By Sara Rosenberg

New York, May 2 – EMI Music Publishing Group North America Holdings Inc.’s first-lien term loan made its way into the secondary market on Tuesday with the debt seen trading above its issue price.

Switching over to the primary market, APC Aftermarket widened the spread and original issue discount on its first-lien term loan, and Acrisure LLC increased the size of its add-on first-lien term loan and firmed pricing at the low end of guidance.

In addition, Charter NEX US Inc., Mortgage Contracting Services and Insight Global (IG Investments Holdings LLC) released price talk with launch, and Doosan Bobcat Inc. (Clark Equipment Co.) surfaced with new deal plans.

EMI frees up

EMI Music’s $1,064,000,000 first-lien term loan (Ba3/BB-) due August 2023 began trading on Tuesday, with levels quoted at par ¼ bid, par ½ offered, a trader said.

Pricing on the term loan is Libor plus 250 basis points with no Libor floor, and it was issued at par. The loan has 101 soft call protection for six months.

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

EMI Music is a New York-based music publisher.

APC lifts pricing

Moving to the primary market, APC Aftermarket increased pricing on its $315 million seven-year covenant-light first-lien term loan (B2/B) to Libor plus 500 bps from Libor plus 450 bps, moved the original issue discount to 98 from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the term loan has a 1% Libor floor.

The company’s $515 million in credit facilities also include a $75 million asset-based revolver and a $125 million privately-placed eight-year second lien term loan.

Jefferies LLC and Goldman Sachs Bank USA are leading the deal.

Proceeds will be used to fund the acquisition and merger of AP Exhaust Products Inc. and CWD LLC by Harvest Partners and Audax Group to create APC Aftermarket, an emissions supplier in the automotive, heavy-duty, and performance aftermarkets as well as a full-line distributor and supplier of aftermarket brake and chassis components.

Acrisure tweaks deal

Acrisure raised its fungible add-on first-lien term loan to $595 million from $450 million and firmed pricing at Libor plus 500 bps, the tight end of the Libor plus 500 bps to 525 bps talk, while leaving the 1% Libor floor and original issue discount of 99.75 intact, a market source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used for acquisition financing.

With the add-on, pricing on the company’s existing first-lien term loan will be lifted from Libor plus 475 bps with a 1% Libor floor to match the add-on pricing.

Acrisure is a Caledonia, Mich.-based insurance brokerage.

Charter NEX sets guidance

Charter NEX held its bank meeting on Tuesday, launching its $585 million seven-year first-lien term loan at talk of Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $660 million in credit facilities (B) also include a $75 million revolver.

Commitments are due on May 11, the source said.

Jefferies Finance LLC and Nomura are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners LP from Pamplona Capital Management.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

Mortgage Contracting talk

Mortgage Contracting Services came out with talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $390 million seven-year first-lien senior secured term loan B that launched with an afternoon bank meeting, a market source remarked.

The company’s $425 million in credit facilities also include a $35 million five-year revolver.

Commitments are due on May 15, the source added.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company by American Securities.

Mortgage Contracting Services is a Lewisville, Texas-based provider of critical specialized services to mortgage servicers and originators.

Insight Global hosts call

Insight Global emerged in the morning with plans to hold a lender call at 1 p.m. ET to launch a $903 million first-lien term loan (B1/B) due October 2021 talked at Libor plus 400 bps to 425 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5p.m. ET on May 9, the source said.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, RBC Capital Markets, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 500 bps with a 1% Libor floor.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

Doosan joins calendar

Doosan Bobcat set a lender meeting for Wednesday to launch a $1,345,000,000 term loan (B1), a market source said.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing term loans.

Doosan is a manufacturer of compact farm and construction equipment.

Cyxtera closes

In other news, Cyxtera Technologies Inc. (Colorado Buyer Inc.) completed its acquisition of 57 data centers from CenturyLink Inc. by a joint venture being formed by BC Partners and Medina Capital, along with Longview Asset Management, and the combination of the data centers with Medina Capital’s security and data analytics portfolio, according to a news release.

To help fund the transaction Cyxtera got $1,275,000,000 in credit facilities consisting of a $150 million five-year revolver (Ba3/B+), an $815 million seven-year covenant-light first-lien term loan (Ba3/B+) and a $310 million eight-year covenant-light second-lien term loan (B3/CCC+).

Pricing on the first-lien term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor, and was issued at a discount of 99. This loan has hard call protection of 102 in year one and 101 in year two but is callable at 101 in the first year in the event the U.S. tax code eliminates tax deductibility of interest for federal income tax.

Cyxtera lead banks

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, HSBC Securities (USA) Inc., Macquarie Capital (USA) Inc. and Citizens led Cyxtera’s credit facilities, with Citi the left lead on the first-lien debt and JPMorgan the left lead on the second-lien debt.

During syndication, pricing on the first-lien term loan was lowered from talk of Libor plus 350 bps to 375 bps and pricing on the second-lien term loan was trimmed from talk of Libor plus 750 bps to 775 bps.

For the data centers, CenturyLink received from Cyxtera about $1.86 billion of pre-tax net cash proceeds, subject to certain post-closing adjustments, and a roughly 10% equity stake in the consortium’s newly formed secure infrastructure company.

CenturyLink plans to use the net after-tax proceeds from the sale to partly fund its acquisition of Level 3 Communications.

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