Ivanti, Avolon, Mavis, SmartBear, AmeriLife, American Bath break; Duff & Phelps revised

By Sara Rosenberg

New York, Nov. 20 – Ivanti Software Inc. upsized its first-lien term loan B, Avolon increased the size of its term loan B-5 and set pricing at the low end of guidance, and Mavis Tire Express Services Corp. finalized the spread on its incremental first-lien term loan at the low end of talk, and then all of these deals made their way into the secondary market on Friday.

Also, before freeing up for trading, SmartBear (AOA Acquisition Holding Inc.) set the original issue discount on its first-lien term loan at the tight side of talk and AmeriLife Holdings LLC firmed pricing on its incremental first-lien term loan at the low end of guidance.

Another deal to begin trading during the session was American Bath Group LLC’s (CP Atlas Buyer Inc.) first-lien term loan.

In more happenings, Duff & Phelps downsized its U.S. incremental first-lien term loan B and set the original issue discount at the tight side of talk, and added a euro incremental first-lien term loan B to its transaction, and Packers Holdings LLC (PSSI) accelerated the commitment deadline for its incremental first-lien term loan.

Ivanti tweaked

Ivanti Software raised its seven-year covenant-lite first-lien term loan B (B2/B-/BB-) to $1.76 billion from $1.26 billion and terminated plans for $500 million of other new first-lien secured debt, a market source remarked.

Additionally, the company extended the 101 soft call protection on the term loan B to one year from six months, the source continued.

Pricing on the term loan B is Libor plus 475 basis points with a 1% Libor floor and an original issue discount of 98.5.

The term loan B is split between a $900 million tranche, a $515 million delayed-draw term loan-1 and a $345 million delayed-draw term loan-2. The original issue discount on the delayed-draw term loans will be paid upon funding.

The company’s now $2.48 billion of senior secured credit facilities also include a $175 million five-year revolver (B2/B-/BB-) and a $545 million privately placed second-lien term loan (Caa2/CCC+/CCC+).

Morgan Stanley Senior Funding, Inc., BofA Securities, Inc., UBS Investment Bank, BMO Capital Markets, Goldman Sachs Bank USA and Antares Capital are leading the deal.

Ivanti starts trading

Recommitments for Ivanti’s first-lien transaction were due at 12:30 p.m. ET on Friday and the strip of funded and delayed-draw debt was quoted at 98¾ bid, 99¼ offered upon freeing up for trading in the afternoon, a trader added.

The new credit facilities will be used to finance the acquisitions of MobileIron, Inc., a provider of mobile-centric unified endpoint management solutions, and Pulse Secure, LLC, a provider of secure access and mobile security solutions, to refinance existing debt and to pay related fees and expenses.

MobileIron is being bought for $7.05 in cash per share, or about $872 million, and Pulse Secure is being acquired from affiliates of Siris Capital Group, LLC. The terms of the Pulse Secure transaction were not disclosed.

Closing is expected during the week of Nov. 30.

Ivanti, a Clearlake Capital Group LP and TA Associates portfolio company, is a South Jordan, Utah-based company that automates IT and security operations to discover, manage, secure and service from cloud to edge.

Avolon revised

Avolon raised its term loan B-5 due December 2027 to $675 million from $500 million and firmed pricing at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, according to a market source.

The term loan B-5 still has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Credit Agricole, MUFG, Barclays, Fifth Third, ING, KeyBanc Capital Markets, Mizuho, Natixis, Bank of Nova Scotia, Societe Generale, Truist, NatWest and Wells Fargo Securities LLC are leading the deal that will be used for general corporate purposes, including repayment of secured debt.

Recommitments were due at 3 p.m. ET on Friday, the source added.

Avolon hits secondary

Avolon’s term loan B-5 broke for trading late in the day, with levels quoted at 99 3/8 bid, 99 5/8 offered, another source added.

Along with the new term loan B-5, Avolon is amending its existing credit agreement to decrease the loan-to-value maintenance covenant level threshold to 75% for two years after close, after which point it will revert to the current 80% level.

The amendment also provides 45 days from the term loan B-5 drawing date to add additional aircraft to Avolon’s collateral pool. If more than 45 days are required to add additional aircraft, cash can be used as collateral in calculating the loan-to-value ratio.

Additionally, the amendment provides that the existing term loan B-3 and term loan B-4 would get 101 soft call protection for six months after close.

Closing is expected on Dec. 1.

Avolon is an Ireland-based aircraft lessor.

Mavis updated, frees up

Mavis Tire set pricing on its non-fungible $470 million incremental first-lien term loan (B2/B-) due March 20, 2025 at Libor plus 400 bps, the tight end of the Libor plus 400 bps to 425 bps talk, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

On Friday morning, the incremental term loan began trading and levels were quoted at 99 bid, 99½ offered, another source added.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Mavis is a Millwood, N.Y.-based tire and service retailer.

SmartBear firms, breaks

SmartBear finalized the original issue discount on its $385 million seven-year covenant-lite first-lien term loan (B2/B-) at 99, the tight end of the 98.5 to 99 talk, a market source remarked.

Pricing on the first-lien term loan remained at Libor plus 425 bps with a 0.5% Libor floor, and the debt still has 101 soft call protection for six months.

The first-lien term loan broke for trading in the afternoon, with levels quoted at 99¼ bid, par offered, the source added.

The company’s $565 million of credit facilities also include a $50 million revolver (B2/B-) and a $130 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Antares Capital, Golub and Neuberger Berman are leading the deal that will be used to help fund Vista Equity Partners’ investment in the company. Francisco Partners will continue as an investor in the company and own a joint stake.

SmartBear is a Somerville, Mass.-based provider of software development and quality tools.

AmeriLife finalized, trades

AmeriLife firmed the spread on its non-fungible $80 million incremental covenant-lite first-lien term loan (B2/B) due March 18, 2027 at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps guidance, a market source said.

The incremental first-lien term loan still has a 0.75% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months.

During the session, the incremental first-lien term loan made its way into the secondary market, with levels quoted at 98¾ bid, 99¼ offered, the source added.

The company is also getting a $45 million privately placed add-on second-lien term loan (Caa2/CCC+).

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund tuck-in acquisitions.

AmeriLife is a Clearwater, Fla.-based insurance marketing organization.

American Bath frees up

American Bath Group’s $900 million funded seven-year first-lien term loan (B2/B) and $300 million funded seven-year first-lien term loan (B2/B) broke for trading as well, with the strip of debt quoted at 99 3/8 bid, 99 7/8 offered, a market source said.

Pricing on the term loans is Libor plus 450 bps with a 25 bps step-down at 0.5x inside closing leverage and a 0.75% Libor floor. The debt was sold at a discount of 99 and has 101 soft call protection for six months.

During syndication, the $300 million term loan was revised from a delayed-draw tranche to a funded tranche, pricing on all of the debt firmed at the low end of the Libor plus 450 bps to 475 bps talk, the step-down was added and the discount was tightened from 98.

Credit Suisse Securities (USA) LLC, RBC Capital Markets, BofA Securities Inc., BMO Capital Markets Corp., Truist Securities Inc., Barclays and UBS Investment Bank are leading the deal that will be used with $335 million of notes to help fund the buyout of the company by Centerbridge Partners LP from Lone Star Funds.

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

American Bath is an Arlington, Tex.-based manufacturer of showers, bathtubs and related accessories.

Duff & Phelps reworked

In other news, Duff & Phelps scaled back its fungible U.S. incremental first-lien term loan B due April 2027 to $217 million from $250 million and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

The company also added a fungible €70 million incremental first-lien term loan B due April 2027 to its capital structure, resulting in a total deal upsize of $50 million.

The euro incremental term loan is being sold at a discount of 99.5.

Like the existing term loans, the U.S. incremental term loan is priced at Libor plus 375 bps with a 1% Libor floor, and the euro incremental term loan is priced at Euribor plus 400 bps with a 0% floor.

Recommitments were due at 3:30 p.m. ET on Friday, the source added.

Goldman Sachs Bank USA, Stone Point Capital Markets, UBS Investment Bank, BofA Securities, Inc., Morgan Stanley Senior Funding Inc., KKR Capital Markets, Credit Suisse Securities (USA) LLC, Capital One and Barclays are leading the deal that will be used for tuck-in acquisition financing.

Closing is expected in December.

Duff & Phelps is a New York-based independent adviser.

Packers accelerated

Packers Holdings moved up the commitment deadline for its non-fungible $300 million incremental first-lien term loan due Dec. 4, 2024 to 4 p.m. ET on Monday from noon ET on Tuesday, according to a market source.

Talk on the incremental term loan is Libor plus 400 bps with a 0.75% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to fund a distribution to shareholders.

Packers Sanitation is a Kieler, Wis.-based provider of mission critical cleaning, sanitation and compliance services to the food processing industry.

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