Liquidnet Holdings, Archroma free to trade; Viewpoint tweaks second-lien term loan plans

By Sara Rosenberg

New York, July 11 – Liquidnet Holdings Inc.’s first-lien term loan made its way into the secondary market on Tuesday with levels quoted above its original issue discount, and Archroma broke as well.

Switching to the primary market, Viewpoint Inc. firmed the spread on its second-lien term loan at the low end of guidance and opted to privately place the debt, and Duravant LLC (Engineered Machinery Holdings Inc.), eResearchTechnology Inc., SnapAV, Arterra Wines Canada Inc. and Midcontinent Communications released price talk with launch.

Furthermore, Peak 10 Holding Corp. released timing on the launch of its term loans and price talk, and Diversey (Diamond BC BV), Capco (Cardinal US Holdings Inc.) and Cypress Semiconductor Corp. joined this week’s calendar.

Liquidnet hits secondary

Liquidnet’s $200 million seven-year senior secured first-lien term loan (B1/B+) began trading on Tuesday, with levels quoted at 99½ bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 425 basis points with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk of Libor plus 475 bps to 500 bps.

Jefferies LLC is leading the deal that will be used to refinance an existing term loan, to fund the acquisition of OTAS Technologies and for general corporate purposes, including capital expenditures and potential future acquisitions.

Liquidnet is a New York-based regulated agency securities broker that operates a trading platform connecting asset managers to trade equities and fixed income securities. OTAS is a London-based analytics platform that delivers actionable market intelligence and context to institutional traders and portfolio managers.

Archroma tops OID

Archroma’s credit facilities freed up for trading too, with the $225 million first-lien term loan B-2 (B1/B) seen at 99 7/8 bid, par 5/8 offered, a trader remarked.

Pricing on the term loan is Libor plus 425 bps with a 0% 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 company’s $880 million equivalent credit facilities also include a $455 million seven-year euro equivalent covenant-light first-lien term loan B-1 (B1/B) and a $200 million eight-year second-lien term loan (Caa1) that was privately placed.

The euro term loan B-1 is priced at Euribor plus 400 bps with a 0% floor and was issued at discount of 99.75. This tranche has 101 soft call protection for six months as well.

During syndication, pricing on the U.S. term loan B-2 firmed at the low end of the Libor plus 425 bps to 450 bps talk, and pricing on the euro term loan B-1 was reduced from talk of Euribor plus 425 bps to 450 bps while the discount was tightened from 99.5.

Bank of America Merrill Lynch and HSBC are leading the deal that will be used by the Switzerland-based provider of specialty chemicals to refinance existing debt. Bank of America is left lead on the U.S. first-lien loan and HSBC is left lead on the euro first-lien loan and the second-lien loan.

BWIC announced

Also in trading, a $107 million cash loan Bid Wanted In Competition emerged, with bids due at noon ET on Thursday, a trader said.

Some of the names in the portfolio are Advantage International, Baker Tanks, Dixie Electric, Harvey Gulf International Marine, Savers, TNT Crane & Rigging and Weight Watchers.

There are about 26 issuers in the BWIC, the trader added.

Viewpoint updates second-lien

Viewpoint set pricing on its $95 million eight-year covenant-light second-lien term loan (Caa1/CCC) at Libor plus 825 bps, the tight end of initial talk of Libor plus 825 bps to 850 bps, and the loan is no longer on offer for syndication because it has been privately placed, a market source remarked.

The second-lien term loan still has a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two.

The company’s $335 million of credit facilities also include a $30 million revolver (B1/B) and a $210 million seven-year covenant-light first-lien term loan (B1/B).

Syndication of the first-lien term loan is still in process at talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments for the first-lien term loan continue to be due at 5 p.m. ET on Monday.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and for acquisition financing.

Viewpoint is a Portland, Ore.-based provider of construction-specific software solutions.

Duravant sets guidance

Duravant hosted its bank meeting on Tuesday morning, and with the event, price talk on its first-and second-lien term loans was disclosed, a market source said.

The $560 million in seven-year first-lien term loans (B), split between a $500 million funded tranche and a $60 million delayed-draw tranche, are talked at Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99.5, and the $235 million in eight-year second-lien term loans (CCC+), split between a $210 million funded tranche and a $25 million delayed-draw tranche, are talked at Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 99, the source continued.

Delayed-draw availability is for 12 months and subject to closing leverage, and there is a ticking fee of half the margin from days 31 to 60 from closing and the full margin thereafter.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Duravant getting revolver

In addition to the first-and second-lien term loans, Duravant’s $865 million of senior secured credit facilities include a $70 million five-year revolver (B).

Commitments are due on July 25, the source added.

Jefferies LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus from Odyssey Investment Partners., and the delayed-draw term loans will be used for targeted acquisitions.

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

Duravant is a Downers Grove, Ill.-based automation and engineered equipment company serving the food processing, packaging and material handling sectors.

eResearch discloses talk

eResearchTechnology held its lander call, launching its fungible $210 million incremental first-lien term loan (B1/B) due May 2023 and repricing of its existing $559 million term loan B (B1/B) due May 2023 at talk of Libor plus 375 bps to 400 bps with a 1% Libor floor and 101 soft call protection for six months, according to a market source.

New money orders are talked with an original issue discount of 99.75 and the repricing is offered at par, the source said.

Goldman Sachs Bank USA, Jefferies LLC and Bank of America Merrill Lynch are leading the deal for which commitments are due at noon ET on July 19.

The incremental loan will be used for mergers & acquisitions and to repay revolver borrowings, and the repricing will take the existing term loan down from Libor plus 500 bps with a 1% Libor floor.

eResearchTechnology is a Philadelphia-based provider of software-enabled clinical research solutions to pharmaceutical, biopharmaceutical and contract research organizations.

SnapAV holds meeting

SnapAV had its bank meeting, launching its $265 million seven-year term loan at talk of Libor plus 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $315 million of senior secured credit facilities (B) also include a $50 million five-year revolver.

Commitments are due on July 25, the source added.

UBS Investment Bank and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Hellman & Friedman LLC from General Atlantic.

Closing is expected in the third quarter.

SnapAV is a Charlotte, N.C.-based manufacturer of audio, video, networking, power and surveillance products for residential and commercial A/V integrators.

Arterra repricing

Arterra Wines Canada launched on its lender call a repricing of its existing $258.7 million senior secured covenant-light term loan B-1 (Ba3/BB-) due Dec. 16, 2023 and its C$65.67 million senior secured covenant-light term loan B-2 (Ba3/BB-) due Dec. 16, 2023, a market source said.

Talk on the U.S. term loan B-1 is Libor plus 300 bps to 325 bps and talk on the Canadian term loan B-2 is BA plus 350 bps, and both loans are talked with a 1% floor, a par issue price and 101 soft call protection for six months, the source added.

Commitments/consents are due at 5 p.m. ET on July 18.

Morgan Stanley Senior Funding Inc. is leading the deal.

The repricing will take the U.S. term loan down from Libor plus 375 bps with a 1% Libor floor.

Arterra, formerly known as Constellation Brands Canada, is a Mississauga, Ont.-based producer and distributor of wine brands.

Midcontinent launches

Midcontinent Communications held a lender call during the session to launch a $100 million add-on term loan B and a repricing of its existing term loan B that are talked at Libor plus 225 bps with no Libor floor and a par issue price, a market source remarked.

Commitments are due on July 18, the source added.

SunTrust Robinson Humphrey Inc. is leading the deal.

The add-on will be used to refinance some notes and the repricing will take the term loan B down from Libor plus 250 bps with no floor.

Midcontinent Communications is a Sioux Falls, S.D.-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

Peak 10 timing emerges

Peak 10 set a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch its previously announced $1.51 billion in term loans, according to a market source. The loans were already anticipated to be this week’s business but firm timing had been unavailable.

The debt consists of a $1.12 billion seven-year first-lien term loan (B2/B) and a $390 million eight-year second-lien term loan (Caa2/CCC+).

Talk on the first-lien term loan was announced at Libor plus 375 bps to 400 bps with a 0% 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 surfaced at Libor plus 750 bps to 775 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

Peak 10 lead banks

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., ING and SunTrust Robinson Humphrey Inc. are leading Peak 10’s term loans, with JPMorgan the left lead on the first-lien debt and Citigroup the left lead on the second-lien debt.

The term loans will be used to help fund the $1,675,000,000 acquisition of ViaWest Inc. from Shaw Communications Inc. and to refinance existing debt.

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

Peak 10, a portfolio company of GI Partners, is a Charlotte, N.C.-based IT infrastructure and cloud provider. ViaWest is a Greenwood Village, Colo.-based IT and infrastructure solutions provider.

Diversey coming soon

Diversey emerged with plans to hold a bank meeting in New York at 1 p.m. on Wednesday and a bank meeting in the UK on Thursday to launch new credit facilities split between a $250 million revolver, a $900 million seven-year covenant-light first-lien term loan and an €820 million seven-year covenant-light first-lien term loan, according to a market source.

The term loans have a 0% floor and 101 soft call protection for six months.

Commitments are due on July 26, the source said.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., RBC Capital Markets, HSBC, SunTrust Robinson Humphrey Inc. and Jefferies LLC are leading the debt that will be used with equity to fund the buyout of the company by Bain Capital Private Equity from Sealed Air Corp. for about $3.2 billion.

Closing is expected in the second half of this year, subject to regulatory approvals and customary conditions.

Diversey is a hygiene and cleaning solutions company.

Capco readies deal

Capco scheduled a bank meeting for 2 p.m. ET on Thursday to launch $315 million of credit facilities, a market source said.

The facilities consist of a $65 million five-year revolver and a $250 million seven-year term loan B, the source added.

Barclays, Credit Suisse, BMO Capital Markets, HSBC Securities (USA) Inc. and Natixis provided the debt commitment that will be used to help fund the purchase by Clayton, Dubilier & Rice (CD&R) of a 60% interest in the company from FIS, with FIS retaining a roughly 40% interest in the company.

Closing is expected by early third quarter, subject to required regulatory approvals and customary conditions.

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

Cypress on deck

Cypress Semiconductor will hold a lender call at 11 a.m. ET on Wednesday to launch a $427.5 million senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan B due 2021.

Cypress is a San Jose, Calif.-based manufacturer of mixed-signal integrated circuits.

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