Warner Music, Charter NEX, Mortgage Contracting, Aptean, Hostess, Macom, Telenet break

By Sara Rosenberg

New York, May 12 – Warner Music Group’s (WMG Acquisition Corp.) term loan freed to trade on Friday, as did deals from Charter NEX US Inc., Mortgage Contracting Services and Aptean Inc.

Also, Hostess Brands LLC and Macom Technology Solutions Holdings Inc. finalized the spreads on their term loans at the low end of guidance, and Telenet tightened the issue price on its add-on term loan AI, and then all of these deals made their way into the secondary market as well.

In more happenings, Post Holdings Inc. accelerated the commitments deadline on its term loan B, and Civitas Solutions Inc. (National Mentor Holdings Inc.) and SeaStar Solutions (Marine Acquisition Corp.) disclosed price talk with launch.

Furthermore, Axalta Coating Systems U.S. Holdings Inc., Hyland Software Inc., Yonkers Racing Corp., American Traffic Solutions and AGS LLC joined the near-term calendar.

WMG hits secondary

Warner Music Group’s $1,006,000,000 covenant-light first-lien term loan due November 2023 (Ba3/B) began trading on Friday, with levels quoted at par bid, par ½ offered, a market source said.

Pricing on the term loan is Libor plus 250 basis points with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan from Libor plus 275 bps with a 1% Libor floor.

Warner Music is a New York-based music company.

Charter NEX tops par

Charter NEX credit facilities surfaced in the secondary market, with the $610 million seven-year first-lien term loan seen at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, the term loan was upsized from $585 million, pricing was cut from Libor plus 350 bps and the discount was set at the tight end of the 99 to 99.5 talk.

The company’s $685 million in credit facilities also include a $75 million revolver.

Jefferies Finance LLC and Nomura are leading the deal that will be used with equity and senior unsecured payment-in-kind toggle notes, which were downsized by $25 million with the term loan upsizing, to 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 frees up

Mortgage Contracting Services’ credit facilities broke as well, with the $390 million seven-year first-lien senior secured term loan B quoted at par ¼ bid, 101¼ offered, a market source remarked.

Pricing on the term loan is Libor plus 475 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

On Thursday, pricing on the term loan was reduced from Libor plus 500 bps, the discount was tightened from 99 and the MFN was changed to 50 bps from 75 bps.

The company’s $425 million in credit facilities (B2/B) also include a $35 million five-year revolver.

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.

Closing is expected during the week of May 15.

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

Aptean begins trading

Aptean’s fungible $100 million add-on senior secured covenant-light first-lien term loan B due Dec. 20, 2022 freed to trade too, with levels seen at par ¾ bid, 101¾ offered, according to a trader.

Pricing on the add-on loan is Libor plus 500 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection through June 20.

On Thursday, the add-on term loan was upsized from $50 million.

Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc., MUFG and SunTrust Robinson Humphrey Inc. are leading the deal that will be used for general corporate purposes, including to repay drawn revolver borrowings, to fund near-term acquisitions and to pay fees and expenses related to the financing.

Closing is expected in late May.

Aptean is an Alpharetta, Ga.-based provider of enterprise application software.

Hostess sets spread, breaks

Hostess Brands firmed pricing on its $996 million first-lien term loan (B1/BB-) due August 2022 at Libor plus 250 bps, the tight end of the Libor plus 250 bps to 275 bps talk, and left the 0.75% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

With pricing finalized, the term loan made its way into the secondary market, and levels were seen at par 3/8 bid, par 7/8 offered, a trader said.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets and UBS Investment Bank are leading the deal that will be used to reprice an existing first-lien term loan from Libor plus 300 bps with a 1% Libor floor.

Hostess is a Kansas City, Mo.-based sweet baked goods company.

Macom updated, trades

Macom Technology Solutions finalized the spread on its $688,461,733 senior secured covenant-light term loan B due May 2024 at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, a market source remarked.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

After terms firmed up, the loan broke for trading, and levels were quoted at 99¾ bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to amend and extend an existing $588,461,733 term loan B due May 2021 and upsize the facility by $100 million for general corporate purposes.

Closing is expected during the week of May 15.

Macom is a Lowell, Mass.-based supplier of high-performance analog RF, microwave, millimeterwave and photonic semiconductor products.

Telenet tweaked, frees up

Telenet modified the issue price on its $500 million add-on term loan AI to par from talk in the range of 99.5 to 99.75, according to a market source.

The add-on loan is priced at Libor plus 275 bps with a 0% Libor floor, in line with the existing term loan AI.

Following the revision, the add-on term loan AI began trading, with levels seen at par 3/8 bid, par ¾ offered, another source added.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, BNP Paribas Securities Corp. and the Bank of Nova Scotia are leading the deal that will be used to refinance existing euro senior notes due 2022. Scotia is the administrative agent.

Telenet is a Mechelen, Belgium-based cable operator.

Post moves deadline

In other news, Post Holdings changed the commitment deadline on its $2 billion seven-year first-lien term loan B (Ba2/BB-) to 5 p.m. ET on Tuesday from 5 p.m. ET on May 19, a market source said.

Talk on the term loan B is Libor plus 250 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Barclays, Nomura, Rabobank, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS Investment Bank, SunTrust Robinson Humphrey Inc., BMO Capital Markets, RBC Capital Markets, Goldman Sachs Bank USA, Co-Bank, PNC and HSBC Securities (USA) Inc. are leading the deal.

Proceeds will be used with cash on hand to fund the £1.4 billion acquisition of Weetabix Ltd. from Bright Food Group and Baring Private Equity Asia and to fund tender offers for $800 million of 7¾% senior notes due 2024 and $400 million of 8% senior notes due 2025.

Post is a St. Louis-based cereal, food and nutrition company.

Civitas discloses guidance

Civitas Solutions held its lender call on Friday, launching its $636 million term loan B due Jan. 31, 2021 at talk of Libor plus 300 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on May 19, the source said.

Barclays is leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Cashless roll is available for the repricing.

Civitas is a Boston-based provider of home and community-based health and human services.

SeaStar releases talk

SeaStar Solutions came out with talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months on its fungible $70 million add-on term loan B due January 2021 that launched with a call during the session, a market source said.

The spread and floor on the add-on term loan matches existing term loan B pricing.

RBC Capital Markets, UBS Investment Bank and Antares Capital are leading the deal that will be used for acquisition financing.

Commitments and consents are due at noon ET on May 19, and existing lenders are being offered a 12.5 bps amendment fee, the source added.

SeaStar is a Litchfield, Ill.-based manufacturer and distributor of marine steering and control systems and engine and drive parts.

Axalta on deck

Axalta Coating Systems set a lender call for 10 a.m. ET on Monday to launch a $450 million seven-year covenant-light term loan (Ba1), according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Deutsche Bank Securities Inc. 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.

Hyland coming soon

Hyland Software scheduled a lender call for 3 p.m. ET on Monday to launch $760 million in bank debt, consisting of a $60 million incremental revolver, a $460 million incremental first-lien term loan due July 2022 and a $240 million eight-year covenant-light second-lien term loan, a market source remarked.

The incremental first-lien term loan is talked at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount that is still to be determined and 101 soft call protection for six months, the source continued.

The second-lien term loan is talked with a 0.75% Libor floor and call protection of 102 in year one and 101 in year two. Spread and original issue discount talk on this tranche are not yet available.

Commitments are due at 5 p.m. ET on May 24, the source added.

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.

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.

Yonkers plans call

Yonkers Racing will hold a lender call on Monday to launch a $260 million seven-year first-lien term loan B (B1/B+) talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to help refinance existing first-and second-lien term loans.

Yonkers Racing is an owner and operator of a gaming and entertainment facility comprised of Empire City Casino and Yonkers Raceway.

American Traffic readies loans

American Traffic Solutions set a bank meeting for 2 p.m. ET on Monday to launch $425 million in term loans, according to a market source.

The debt consists of a $325 million seven-year covenant-light first-lien term loan and a $100 million eight-year covenant-light second-lien term loan, the source said.

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.

AGS joins calendar

AGS emerged with plans to hold a bank meeting on Thursday to launch a new credit facility, according to a market source.

Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used, among other things, to refinance the company’s existing credit facility.

AGS is a Las Vegas-based designer and manufacturer of gaming products for the casino floor.

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