Insight Global, Digicel, Kepro, Consolidated Container break; Transcendia sets changes

By Sara Rosenberg

New York, May 10 – Insight Global (IG Investments Holdings LLC) set the spread on its term loan at the low end of guidance and then freed up for trading on Wednesday, and deals from Digicel International Finance Ltd. and Kepro (Keystone Acquisition Corp.) broke too.

Also, Consolidated Container Co. tightened the spread and issue price on its term loan B before making its way into the secondary market.

In other news, Transcendia moved some funds between its first-lien term loan B and pre-placed second-lien term loan, GNC Holdings Inc. pulled its term loan extension from market, and National Veterinary Associates accelerated the commitment deadline on its add-on term loan B-2.

Furthermore, Regal Cinemas Corp. and Blue Buffalo Pet Products Inc. released talk with launch, and CenturyLink Inc., CityMD and SiteOne Landscape Supply Inc. jumped on this week’s new issue calendar.

Insight firms, trades

Insight Global finalized pricing on its $903 million first-lien term loan (B1/B) due October 2021 at Libor plus 400 basis points, the tight end of the Libor plus 400 bps to 425 bps talk, according to a market source.

The term loan still has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

With terms firmed up, the loan made its way into the secondary market and levels were quoted at par 3/8 bid, par 7/8 offered, a trader added.

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.

Digicel hits secondary

Digicel’s credit facilities broke too, with the $955 million seven-year covenant-light first-lien term loan B seen at par ½ bid, 101 offered, a trader said.

The term loan B is priced at Libor plus 375 bps with a 1% Libor floor and was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

On Monday, the term loan B was upsized from $635 million, the spread was cut from Libor plus 400 bps and the discount finalized at the tight end of the 99 to 99.5 talk.

The company’s $1,355,000,000 in credit facilities also include a $100 million three-year revolver and a $300 million five-year term loan A, both priced at Libor plus 350 bps.

Digicel lead banks

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint lead arrangers on Digicel’s credit facilities and joint bookrunners with Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.

Proceeds will be used to refinance existing senior secured credit facilities, and funds from the recent term loan B upsizing will be used to repay 7% Digicel Ltd. notes due 2020, for general corporate purposes including capital expenditures, and up to $15 million may be used to finance the acquisition of IDOM Technologies.

Closing on the credit facilities is expected late this month.

Digicel is a Hamilton, Bermuda-based provider of communication services in the Caribbean and South Pacific regions.

Kepro frees up

Kepro’s credit facilities began trading as well, with the $205 million seven-year first-lien term loan (B1/B) quoted at 98½ bid, 99½ offered and the $100 million eight-year second-lien term loan (Caa2/CCC+) quoted at 99 bid, par offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 525 bps with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 925 bps with a 1% Libor floor, and was issued at a discount of 98. This tranche has hard call protection of 102 in year one and 101 in year two.

Kepro getting revolver

Kepro’s $330 million in credit facilities, led by RBC Capital Markets LLC and Capital One, also include a $25 million revolver (B1/B).

On Tuesday, pricing on the first-lien term loan was increased from talk of Libor plus 400 bps to 425 bps, the discount widened from 99 and the call protection was extended from six months, and pricing on the second-lien term loan was lifted from talk of Libor plus 800 bps to 825 bps and the discount was changed from 98.5.

Other changes included, among other things, removing the MFN sunset, adding a 0.25 times step-down after eight fiscal quarters to the maximum total net leverage ratio covenant, revising the excess cash flow sweep and modifying the accordion.

Proceeds will be used to help fund the buyout of the company.

Kepro is a Harrisburg, Pa.-based quality improvement and care management organization.

Consolidated updated, breaks

Consolidated Container lowered pricing on its $605 million seven-year senior secured covenant-light first-lien term loan B (B3/B+) to Libor plus 350 bps from Libor plus 400 bps and revised the original issue discount to 99.75 from 99.5, according to a market source.

The term loan B still has a 1% Libor floor and 101 soft call protection for six months.

After terms finalized, the term loan B freed up, with levels seen at par ¼ bid, 101¼ offered, a trader added.

The company’s $730 million in credit facilities also include a $125 million ABL revolver.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the acquisition of the company by Loews Corp. from Bain Capital Private Equity for about $1.2 billion, subject to customary purchase price adjustments.

Closing is expected this quarter, subject to customary conditions.

Consolidated Container is an Atlanta-based rigid plastic packaging manufacturer.

inVentiv bid softens

In more trading news, inVentiv Health Inc.’s term loan was quoted at par ½ bid, par 7/8 offered after it was announced that the company would be merging with INC Research Holdings Inc., which is down on the bid side from Tuesday’s levels of par 5/8 bid, par 7/8 offered, a market source said.

With the merger, INC Research intends to get a $2.6 billion term loan B led by Credit Suisse Securities (USA) LLC to refinance existing debt, including a $1.7 billion term loan and some unsecured notes at inVentiv.

The transaction values inVentiv, at an enterprise value of around $4.6 billion, and the combined company at an enterprise value of about $7.4 billion, and net leverage is anticipated to be about 4 times.

Closing is expected in the second half of this year, subject to approval by INC Research shareholders, regulatory approvals and other customary conditions. INC Research shareholders are expected to own about 53% and inVentiv shareholders are expected to own about 47% of the combined company on a fully diluted basis.

INC Research is a Raleigh, N.C.-based contract research organization. inVentiv is a Burlington, Mass.-based contract research organization and contract commercial organization.

Transcendia reworked

Back in the primary market, Transcendia lifted its seven-year first-lien term loan B (B2/B) to $295 million from $280 million and trimmed its pre-placed eight-year second-lien term loan to $110 million from $125 million, according to a market source.

As before, the first-lien term loan B is priced at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99.5 and has 101 soft call protection for six months.

The first-lien term loan B still has a 25 bps pricing step-down subject to a first-lien net leverage test, but now that test is known to be 4 times, whereas previously it was to be determined, the source said.

The company’s $455 million in senior secured credit facilities, which are expected to allocate on Thursday, also include a $50 million five-year revolver (B2/B).

Goldman Sachs Bank USA, Citigroup Global Markets Inc., KeyBanc Capital Markets LLC, Bank of Ireland and Societe Generale are leading the deal that will help fund the buyout of the company by GS Merchant Bank.

Transcendia is a Franklin Park, Ill.-based provider of custom engineered specialty films materials.

GNC withdrawn

GNC Holdings pulled its $1.17 billion term loan due 2022 from the market, which was going to be used to refinance/extend an existing term loan due 2019, according to a market source.

The loan was talked at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99.

J.P. Morgan Securities LLC was leading the deal.

GNC is a Pittsburgh-based specialty health, wellness and performance retailer.

National Veterinary accelerated

National Veterinary Associates moved up the commitment deadline on its fungible $150 million add-on term loan B-2 due August 2021 to 5 p.m. ET on Wednesday from noon ET on Friday, a market source remarked.

The add-on loan, split between a $75 million funded tranche and a $75 million delayed-draw tranche, is talked at Libor plus 350 bps with a 1% Libor floor and a par issue price.

Bank of America Merrill Lynch, Jefferies LLC, RBC Capital Markets and Nomura are leading the deal that will be used for general corporate purposes, including acquisitions.

National Veterinary is an Agoura Hills, Calif.-based owner of independent freestanding veterinary hospitals.

Regal releases talk

Regal Cinemas held its lender call on Wednesday, launching its $150 million incremental first-lien term loan due April 2022 and repricing of its existing $954 million covenant-light first-lien term loan due April 2022 at talk of Libor plus 200 bps with a 0.75% Libor floor, according to a market source.

The incremental loan is offered at an original issue discount of 99.75, the repricing is offered at par and all of the debt has 101 soft call protection for six months.

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

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.

Blue Buffalo details emerge

Blue Buffalo had its bank meeting, at which time lenders were presented with a $400 million seven-year senior secured term loan B talked at 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, a market source remarked.

The term loan B has a 25 bps pricing step-down when first-lien gross leverage is less than or equal to 1.0 times or the company achieves investment grade corporate and facility ratings, the source continued.

Commitments are due at 5 p.m. ET on May 18.

The company’s $520 million senior secured credit facilities (Ba2/BB+) also include a $120 million revolver.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal that will be used by the Wilton, Conn.-based pet food company to refinance existing debt.

Closing is expected during the week of May 22.

CenturyLink sets timing

CenturyLink scheduled a lender call for 10 a.m. ET on Thursday to launch its previously announced $4.5 billion covenant-light term loan B due January 2025, a market source said.

According to filings with the Securities and Exchange Commission, the company is also getting a $2 billion revolver and a $1.5 billion term loan A.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, RBC Capital Markets, MUFG, Wells Fargo Securities LLC, Mizuho Bank and SunTrust Robinson Humphrey Inc. are leading the deal.

CenturyLink buying Level 3

Proceeds from CenturyLink’s credit facilities will be used to help fund the acquisition of Level 3 Communications Inc. for $26.50 per share in cash and a fixed exchange ratio of 1.4286 shares of CenturyLink stock for each Level 3 share they own, which implies a purchase price of $66.50 per Level 3 share. The transaction is valued at about $34 billion, including the assumption of debt.

Other funds for the transaction are expected to come from cash on hand and senior secured notes or other debt securities.

Closing is expected by the end of the third quarter, subject to regulatory approvals, approval of CenturyLink and Level 3 shareholders and other customary conditions.

CenturyLink is a Monroe, La.-based communications, hosting, cloud and IT services company. Level 3 is a Broomfield, Colo.-based provider of communications services to enterprise, government and carrier customers.

CityMD readies deal

CityMD set a bank meeting for 2 p.m. ET in New York on Thursday to launch $255 million in credit facilities, according to a market source.

The facilities consist of a $30 million revolver and a $225 million seven-year covenant-light first-lien term loan that is talked with a 1% Libor floor and 101 soft call protection for six months, the source said.

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

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus.

CityMD is an urgent care provider in the New York Metro area.

SiteOne joins calendar

SiteOne Landscape Supply intends to hold a lender call at 10 a.m. ET on Thursday to launch a repricing of its roughly $297 million covenant-light term loan B due 2022 from Libor plus 450 bps with a 1% Libor floor, a market source said.

UBS Investment Bank is leading the deal.

SiteOne is a Roswell, Ga.-based distributor of wholesale irrigation, landscape lighting, nursery, hardscapes, maintenance products and supplies for the green industry.

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