Equian, MotorCity, Array break; Alexander Mann, Regal, KIK, DiversiTech, Coronado updated

By Sara Rosenberg

New York, May 15 – Equian LLC finalized the spread and issue price on its term loans at the tight side of talk and then freed up for trading on Monday, and deals from MotorCity Casino Hotel and Array Canada Inc. emerged in the secondary market too.

In other happenings, Alexander Mann Solutions set pricing on its term loan at the high end of guidance, Regal Cinemas Corp. modified the issue price on its incremental term loan and the Libor floor on the incremental tranche as well as on its repriced term loan, and KIK Custom Products Inc. tightened the original issue discount on its add-on term loan B.

Also, DiversiTech Holdings Inc. lowered price talk on its first-lien term loan, Coronado Coal LLC firmed the spread on its term loan B at the high side of talk while sweetening the issue price and call premium, and Focus Financial Partners accelerated the commitment deadline on its first-lien term loan.

Furthermore, Ashland LLC, Hyland Software Inc., AES Corp., Axalta Coating Systems U.S. Holdings Inc., American Traffic Solutions, Lineage Logistics LLC and Asurion LLC released price talk with launch, and eviCore, Cable & Wireless Communications plc and Tibco Software Inc. emerged with new deal plans.

Equian sets pricing

Equian firmed pricing on its $325 million seven-year covenant-light first-lien term loan B and $100 million delayed-draw term loan at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and finalized the original issue discount on the loans at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

As before, the term loans have a 1% Libor floor, the funded term loan has 101 soft call protection for six months and the delayed-draw loan has a ticking fee starting on day 31 of the full margin plus the greater of 1% and adjusted Libor.

Previously in syndication, the delayed-draw term loan was added to the capital structure.

The company’s $455 million in senior secured credit facilities also include a $30 million five-year revolver priced at Libor plus 375 bps with a 0% Libor floor. The spread on this tranche also finalized at the low end of talk of Libor plus 375 bps to 400 bps.

Equian frees up

With final terms in place, Equian’s bank debt broke for trading, and the funded and delayed-draw term loans, which trade as a strip, were quoted at par ¼ bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc. and UBS Investment Bank are leading the deal that will be used to refinance existing debt and to fund general corporate purposes, and the delayed-draw term loan will be used with cash from the balance sheet to fund potential near-term acquisition targets.

Closing is expected on Friday.

Equian is an Indianapolis-based payment integrity platform.

MotorCity tops par

MotorCity Casino Hotel’s $446.3 million term loan B due August 2021 freed to trade, with levels quoted at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the loan is Libor plus 275 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

Bank of America Merrill Lynch and Fifth Third are leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 0.75% Libor floor.

MotorCity Casino Hotel is Detroit-based casino and hotel.

Array hits secondary

Array Canada’s fungible $40 million add-on term loan began trading, with levels quoted at 99¼ bid, 99¾ offered, a trader said.

Pricing on the add-on loan is Libor plus 500 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.

UBS Investment Bank is leading the deal that will be used for acquisition financing.

Array is a Toronto-based provider of retail merchandising displays and store fixtures to the cosmetics industry.

Alexander Mann firms

Returning to the primary market, Alexander Mann Solutions finalized pricing on its $265 million seven-year first-lien term loan at Libor plus 550 bps, the high end of the Libor plus 525 bps to 550 bps talk, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source remarked.

The company’s $305 million in credit facilities (B2/B+) also include a $40 million revolver.

Credit Suisse Securities (USA) LLC, ING Capital and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Alexander Mann is a Berkshire, England-based talent acquisition and management business.

Regal modifies terms

Regal Cinemas changed the issue price on its $150 million incremental first-lien term loan (Ba1/BB) due April 2022 to par from 99.75 and trimmed the Libor floor on the incremental loan, as well as on the repricing of its existing $954 million covenant-light first-lien term loan (Ba1/BB) due April 2022, to 0% from 0.75%, a market source said.

The incremental loan and repriced loan are still priced at Libor plus 200 bps, the repriced loan is still offered at par, and all of the debt still has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal.

The incremental term loan will be used for general corporate purposes, and the repricing will take the existing term loan down from Libor plus 250 bps with a 0.75% Libor floor.

Regal Cinemas is a subsidiary of Regal Entertainment Group, a Knoxville, Tenn.-based motion picture exhibitor.

KIK tweaks OID

KIK Custom Products changed the original issue discount on its $200 million add-on senior secured first-lien term loan B due Aug. 26, 2022 to 99.75 from talk in the range of 99 to 99.5, according to a market source.

As before, pricing on the add-on term loan is Libor plus 450 bps with a 1% Libor floor, which matches existing term loan pricing, and the add-on term loan has 101 soft call protection for six months.

Recommitments were due at noon ET on Monday, the source said.

Barclays, BMO Capital Markets, Nomura, Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used for general corporate purposes, to fund an ABL repayment and to finance a $90 million acquisition.

KIK is an Ontario-based manufacturer of consumer products.

DiversiTech updates deal

DiversiTech cut price talk on its $325 million seven-year covenant-light first-lien term loan (B2/B+) to Libor plus 350 bps from Libor plus 375 bps, a market source said.

The first-lien term loan is still talked with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company’s $495 million in senior secured credit facilities also include a $50 million five-year revolver (B2/B+) and a $120 million eight-year second-lien term loan (Caa2/CCC+) talked at Libor plus 750 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Commitments are due at noon ET on Thursday, moved up from May 22, and allocations are targeted for Thursday afternoon, the source added.

DiversiTech lead banks

RBC Capital Markets LLC, Barclays, Deutsche Bank Securities Inc. and SG Americas Securities LLC are leading DiversiTech’s credit facilities, with RBC the left lead on the first-lien debt and Barclays the left lead on the second-lien debt. RBC is the administrative agent on all of the tranches.

Proceeds will be used to help fund the buyout of the company by Permira Funds from the Jordan Co. LP.

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

DiversiTech is a Duluth, Ga.-based manufacturer of components and products related to the heating, ventilating, air conditioning and refrigeration industry.

Coronado Coal reworked

Coronado Coal set pricing on its $200 million covenant-light term loan B (B3/B) at Libor plus 700 bps, the high end of the Libor plus 650 bps to 700 bps talk, widened the original issue discount to 97 from 98.5 and changed the 101 soft call protection for one year to a hard call from a soft call, a market source remarked.

The term loan still has a 1% Libor floor.

Bank of America Merrill Lynch is leading the deal that will be used to fund a dividend.

Coronado Coal is a Beckley, W.Va.-based producer of high-quality metallurgical coal.

Focus moves deadline

Focus Financial Partners accelerated the commitment deadline on its $755 million seven-year covenant-light first-lien term loan (B+) to 5 p.m. ET on Wednesday from Friday, according to a market source.

Talk on the first-lien term loan is Libor plus 350 bps to 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the acquisition of a majority stake in the company by an investor group led by Stone Point Capital and KKR from Centerbridge Partners, Summit Partners and Polaris Partners. The transaction values Focus Financial at about $2 billion.

A $207 million eight-year covenant-light second-lien term loan (B-) for the acquisition has been privately placed at pricing of Libor plus 750 bps with a 0% Libor floor and an original issue discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

Focus Financial is a New York-based partnership of independent, fiduciary wealth-management firms.

Ashland details disclosed

Also on the new deal front, Ashland held its bank meeting on Monday, launching a $600 million seven-year senior secured covenant-light term loan B at talk of Libor plus 200 bps to 225 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, sources remarked.

Commitments are due at noon ET on May 24 and closing is expected in late May, sources continued.

Citigroup Global Markets Inc., Bank of Nova Scotia, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and PNC Bank are leading the deal (Ba1), with Scotia the administrative agent.

The company is also getting an $800 million five-year senior secured revolver, a $250 million three-year senior secured term loan A and a $250 million five-year senior secured term loan A.

Proceeds from the term loan B will be used to retire 3.875% senior notes due 2018, the revolver will be used to refinance an existing $800 million senior unsecured revolver, and the term loan A debt will be used with cash on hand to fund the acquisition of Pharmachem Laboratories Inc. for $660 million in cash.

Pro forma for the transaction, the Covington, Ky.-based specialty chemicals company will have net secured leverage of 1.4 times and net total leverage of 3.9 times, based on LTM March 31 adjusted EBITDA.

Hyland terms surface

Hyland Software held its lender call at 3 p.m. ET, and a few hours before the event kicked off, price talk was announced on its $460 million incremental first-lien term loan due July 2022 and $240 million eight-year covenant-light second-lien term loan in connection with its lender call on Monday, according to a market source.

The incremental first-lien term loan is talked with an original issue discount of 99.5, the source said. As reported earlier, pricing on the incremental first-lien term loan is Libor plus 325 bps with a 0.75% Libor floor, and the debt has 101 soft call protection for six months.

Talk on the second-lien term loan is Libor plus 750 bps to 775 bps with a 0.75% Libor floor and an original issue discount of 99, the source continued. This tranche has call protection of 102 in year one and 101 in year two.

The term loans have a ticking fees of half the margin from days 31 to 60 and the full margin thereafter.

Hyland getting revolver

Along with the term loans, Hyland Software’s $760 million in new bank debt includes a $60 million incremental revolver.

Commitments are due at 5 p.m. ET on May 24.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used to fund the acquisition of Perceptive Software from Lexmark International Inc.

Existing lenders are being offered a 12.5 bps amendment fee, the source added.

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

Hyland, a Thoma Bravo portfolio company, is a Westlake, Ohio-based enterprise content-management software developer.

AES shops loan

AES launched on an afternoon lender call a $525 million five-year senior secured covenant-light term loan B talked at Libor plus 200 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source said.

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

Barclays is leading the deal that will be used to redeem 6.75% convertible trust securities due 2029 and for transaction fees and expenses.

Pro forma senior secured leverage is 0.7 times and total leverage is 4.7 times.

Closing is expected this quarter.

AES is an Arlington, Va.-based power company.

Axalta reveals talk

Axalta Coating Systems released price talk of Libor plus 225 bps to 250 bps with a 0% Libor floor and an original issue discount of 99.75 on its $450 million seven-year covenant-light term loan (Ba1) that launched with a morning call, according to a market source.

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

Commitments are due at 3 p.m. ET on Friday, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used to help fund the acquisition of Valspar Corp.’s North American industrial wood coatings business for $420 million in cash.

Axalta is a Philadelphia-based manufacturer, marketer and distributor of high performance coatings systems.

American Traffic launches

American Traffic Solutions had its bank meeting and released price talk on its $325 million seven-year covenant-light first-lien term loan (B1) and $100 million eight-year covenant-light second-lien term loan (Caa1) with its bank meeting on Monday, according to a market source.

Talk on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 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 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Commitments are due on May 24.

Bank of America Merrill Lynch, BMO Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to help fund the buyout of the company by Platinum Equity.

American Traffic Solutions is a Mesa, Ariz.-based provider of road safety cameras and toll and violations management solutions.

Lineage holds call

Lineage Logistics surfaced in the morning with plans to hold a lender call at 2 p.m. ET to launch a $640 million covenant-light first-lien term loan due April 2021 talked at Libor plus 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Lineage Logistics is an Irvine, Calif.-based cold storage warehousing and logistics company.

Asurion seeks add-on

Asurion approached lenders with a $1,189,000,000 add-on covenant-light term loan B-5 due 2023 talked at Libor plus 300 bps with a 0% Libor floor, in line with the existing term loan B-5, and an original issue discount of 99.75 to par, according to a market source.

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 deal that will be used to refinance an existing term loan B-2 due 2020.

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

eviCore joins calendar

eviCore will hold a lender call at 11 a.m. ET on Tuesday to launch a repricing of its $834 million first-lien term loan due March 2021 talked at Libor plus 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on May 23, the source added.

RBC Capital Markets LLC is leading the deal that will reprice the existing term loan down from Libor plus 450 bps with a 1% Libor floor.

eviCore, previously known as CareCore, is a Bluffton, S.C.-based provider of specialty benefits management services to managed care organizations, self-insured entities and risk-bearing provider organizations.

Cable & Wireless on deck

Cable & Wireless set a bank meeting for 10 a.m. ET on Tuesday to launch a $1,125,000,000 covenant-light term loan B due January 2025, a market source remarked.

Bank of America Merrill Lynch, Bank of Nova Scotia, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt. Scotia is the administrative agent.

Cable & Wireless is a London-based telecommunications company owned by Liberty Global.

Tibco readies loan

Tibco Software scheduled a lender call for 10:30 a.m. ET on Tuesday to launch a $150 million add-on term loan, according to a market source.

KKR Capital Markets and Jefferies Finance LLC are leading the deal that will be used for general corporate purposes.

Tibco is a Palo Alto, Calif.-based infrastructure and business intelligence software company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.