Zebra trades slightly lower with repricing; near-term new issue calendar continues to build

By Sara Rosenberg

New York, July 17 – Zebra Technologies Corp.’s term loan was a touch lower in the secondary market on Monday after plans for a repricing transaction surfaced.

In other happenings, Albany Molecular Research Inc. came out with timing on the launch of its credit facilities and official tranche sizes.

Also, Alorica Inc., OB Hospitalist Group, Cable & Wireless Communications plc, Formula 1 (Delta Topco Ltd.) and International Seaways Operating Corp. joined this week’s primary calendar, and Zep Inc. emerged with new deal plans.

Zebra dips

Zebra Technologies’ term loan B dropped by about an eighth of a point to par ¼ bid, par ¾ offered following an announcement that the company is coming to market with a repricing proposal, according to a trader.

A lender call is scheduled for 2 p.m. ET on Tuesday to launch a $1,413,000,000 senior secured term loan B for the repricing, a market source said.

Morgan Stanley Senior Funding Inc. is leading the new deal that will reprice the existing term loan B due 2021 from Libor plus 250 basis points with a 0.75% Libor floor.

Zebra is a Lincolnshire, Ill.-based provider of marking and printing technologies.

Albany sets timing

Albany Molecular Research will hold a bank meeting at 10 a.m. ET on Wednesday to launch $925 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $100 million five-year revolver, a $620 million seven-year first-lien term loan and a $205 million eight-year second-lien term loan, the source added.

By comparison, a recent filing with the Securities and Exchange Commission outlined the facilities as $960 million in total, split between a $100 million revolver, a $620 million first-lien term loan and a $240 million second-lien term loan.

Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets, Goldman Sachs Bank USA, Jefferies LLC and Mizuho Bank Ltd. are leading the deal, with Barclays the left lead on the first-lien term loan and Morgan Stanley the left lead on the second-lien term loan.

Albany being acquired

Proceeds from Albany Molecular’s credit facilities will be used with equity to fund the buyout of the company by The Carlyle Group and GTCR LLC for $21.75 per share in cash.

Closing is subject to shareholder approval, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions. A shareholder meeting to vote on the transaction is expected to take place in the third quarter.

Albany Molecular is an Albany, N.Y.-based contract research and manufacturing organization that works with the life sciences industry to improve patient outcomes and the quality of life.

Alorica joins calendar

Alorica scheduled a lender call for 11 a.m. ET on Tuesday to launch a $301 million first-lien term loan (B1/BB-) due June 30, 2022 talked at Libor plus 375 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on July 27, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 0.75% Libor floor.

Alorica is an Irvine, Calif.-based provider of outsourced customer and financial care solutions.

OB Hospitalist on deck

OB Hospitalist set a bank meeting in New York for Tuesday to launch $220 million of credit facilities, according to a market source.

The facilities consist of a $20 million five-year revolver and a $200 million seven-year covenant-light term loan, the source said.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by Gryphon Investors from Ares Management LP.

OB Hospitalist is a Mauldin, S.C.-based provider of OB/GYN hospitalist services.

Cable & Wireless plans loan

Cable & Wireless will hold a lender call at noon ET on Tuesday to launch a $300 million add-on term loan B that is talked at Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection through November, a market source said.

The spread, floor and call protection on the add-on term loan match the existing term loan.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs Bank USA, ING and Bank of Nova Scotia are leading the deal that will be used to repay notes at its subsidiary Columbus International Inc. Scotia is the administrative agent.

Cable & Wireless is a London-based telecommunications company owned by Liberty Global.

Formula 1 readies deal

Formula 1 scheduled a lender call for 10 a.m. ET on Tuesday to launch an up to $200 million add-on first-lien term loan to its existing $3,102,000,000 first-lien term loan, a market source remarked.

J.P. Morgan Securities LLC is leading the add-on loan that will be used with cash on hand to repay the balance of the company’s $300 million second-lien facility.

The company also plans to amend its credit agreement to increase revolving facility capacity to up to $500 million.

Formula 1 is a motorsports business that is a subsidiary of Liberty Media Corp.

International Seaways add-on

International Seaways will host a lender call on Tuesday morning to launch a $50 million add-on term loan talked at Libor plus 550 bps with a 1% Libor floor and an original issue discount of 98, a market source said.

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

Commitments are due on Thursday, the source added.

Jefferies LLC is leading the deal that will be used to help fund the acquisition of two Suezmax tankers.

International Seaways is a New York-based tanker company.

Zep coming soon

Zep intends to hold a bank meeting on July 26 to launch a new loan that will be used to refinance existing debt and fund an acquisition, according to a market source.

KeyBanc Capital Markets is leading the deal.

Zep is an Atlanta-based consumable chemical packaged goods company.

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