DexKo final terms surface; Diversey, U.S. Security, ASG Technologies, Cypress set price talk

By Sara Rosenberg

New York, July 12 – In the primary market on Wednesday, DexKo Global Inc. set spreads on its first-and second-lien term loans at the low end of talk and adjusted the size of the euro first-lien term loan although the U.S. dollar equivalent amount was unchanged.

In addition, Diversey (Diamond BC BV), U.S. Security Associates Inc., ASG Technologies Group Inc. and Cypress Semiconductor Corp. released price talk with launch.

Furthermore, Heartland Dental LLC, CareerBuilder LLC, Anchor Glass Container Corp., Depomed Inc. and CPM Acquisition Corp. joined this week’s primary calendar.

DexKo tweaks deal

DexKo finalized pricing on its $570 million seven-year first-lien term loan (B2/B) at Libor plus 400 basis points, the tight end of the Libor plus 400 bps to 425 bps talk, and added a step-down to Libor plus 375 bps at 4.75 times leverage, while leaving the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

Also, the company firmed the spread on its $250 million eight-year second-lien term loan (Caa1/CCC+) at Libor plus 825 bps, the tight end of the Libor plus 825 bps to 850 bps talk, the source said. This tranche still has a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two.

Furthermore, DexKo downsized its euro seven-year first-lien term loan (B2/B) to €350 million from €357 million, but the dollar equivalent is unchanged, and set pricing at Euribor plus 450 bps, the low end of the Euribor plus 450 bps to 475 bps talk, the source continued. The 0% floor, discount of 99.5 and 101 soft call protection for six months on the loan were unchanged.

DexKo getting revolver

Along with the first-and second-lien term loans, DexKo is getting a $150 million revolver (B2/B).

Recommitments were due at noon ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by KPS Capital Partners LP. DexKo’s existing controlling shareholder, the Sterling Group LP, will continue to own a minority stake in the company.

Closing is expected around mid-year, subject to customary conditions and approvals.

DexKo is a Novi, Mich.-based supplier of highly engineered running gear technology, chassis assemblies and related components.

Diversey discloses guidance

Diversey held its N.Y. bank meeting on Wednesday and released price talk on its $900 million seven-year covenant-light first-lien term loan and €820 million seven-year covenant-light first-lien term loan, a market source remarked. A bank meeting for European investors will take place in the UK on Thursday.

Talk on the U.S. term loan is Libor plus 325 bps to 350 bps and talk on the euro term loan is Euribor plus 350 bps 375 bps, the source continued. Both term loans are talked with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s credit facilities (B1/B) also include a $250 million revolver.

Commitments are due on July 25, the source added.

Diversey lead banks

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 Diversey’s credit facilities.

The new debt 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.

U.S. Security sets talk

U.S. Security Associates launched at its bank meeting its fungible $100 million add-on term loan B (B2/B) due July 2023 and repricing of its existing $447 million term loan B (B2/B) due July 2023 at talk of Libor plus 400 bps to 425 bps with a 1% Libor floor and 101 soft call protection for six months, according to a market source.

The new money is talked with an original issue discount of 99.5, the repricing is offered at par and existing lenders are being offered a 10 bps amendment fee on current positions, the source said.

Commitments are due at the end of the day on July 21.

Goldman Sachs Bank USA, Jefferies LLC and KeyBanc Capital Markets are leading the deal.

The add-on will be used to pay down 11% senior notes and to fund a small tuck-in acquisition, and the repricing will take the existing term loan down from Libor plus 500 bps with a 1% Libor floor.

U.S. Security Associates is a Roswell, Ga.-based safety and security services company.

ASG Technologies launches

ASG Technologies held its bank meeting, launching its $300 million seven-year first-lien term loan (B2/B) at talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on July 26.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and pay related fees and expenses.

ASG is a Naples, Fla.-based infrastructure software company.

Cypress holds call

Cypress came out with talk of Libor plus 275 bps to 300 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months on its $427.5 million senior secured term loan B due July 5, 2021 that launched with a late morning lender call, a market source said.

Consents/commitments are due at noon ET on July 19, the source added.

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 from Libor plus 375 bps with a 0% Libor floor.

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

Heartland readies deal

In more primary happenings, Heartland Dental emerged with plans to hold a bank meeting at 2 p.m. ET in New York on Thursday to launch $1,075,000,000 of credit facilities, according to a market source.

The facilities consist of a $100 million revolver, a $750 million first-lien term loan and a $225 million second-lien term loan, the source said.

BMO Capital Markets is the left lead on the deal that will be used to refinance existing debt and to pay related fees and expenses.

Heartland Dental is an Effingham, Ill.-based dental support organization that is majority-owned by Ontario Teachers’ Pension Plan.

CareerBuilder on deck

CareerBuilder set a bank meeting for 12:30 p.m. ET in New York on Thursday to launch $400 million of credit facilities, a market source said.

The facilities consist of a $50 million revolver and a $350 million covenant-light first-lien term loan that is talked with a 1% Libor floor and 101 soft call protection for six months, the source added.

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

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by Apollo Global Management LLC and Ontario Teachers’ Pension Plan Board.

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

Following the close, the company’s current owners, Tegna Inc., Tribune National Marketing Co. LLC and McClatchy Interactive West will retain a minority interest.

CareerBuilder is a Chicago-based end-to-end human capital solutions company focused on helping employers find, hire and manage great talent.

Anchor Glass joins calendar

Anchor Glass scheduled a lender call for 10 a.m. ET on Thursday to launch a $647 million first-lien term loan (B1/B) due Dec. 7, 2023 talked at Libor plus 275 bps to 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on July 20, the source added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 325 bps with a 1% Libor floor.

Anchor Glass is a Tampa, Fla.-based manufacturer of glass packaging products.

Depomed plans loan

Depomed will hold a lender call on Thursday to launch a $350 million term loan B talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, a market source said.

Commitments are due on July 27, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to refinance existing debt.

Depomed is a Newark, Calif.-based specialty pharmaceutical company focused on products to treat pain and other central nervous system conditions.

CPM coming soon

CPM Acquisition set a lender call for 10:30 a.m. ET on Thursday to launch $160 million in senior secured term loans, according to a market source.

The debt is split between a $50 million incremental first-lien term loan (B) and a $110 million amended and upsized second-lien term loan (B-), the source said.

Morgan Stanley Senior Funding Inc. and BMO Capital Markets Corp. are leading the deal that will be used to repay existing debt, fund a dividend to shareholders and pay related fees.

CPM is a supplier of process equipment used for oilseed processing and animal feed production.

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