Zebra, Peak 10, YRC break; Diversey, Duravant, CPI, U.S. Security, Sky Betting set changes

By Sara Rosenberg

New York, July 24 – Zebra Technologies Corp. firmed pricing on its term loan B at the low end of talk and Peak 10 Holding Corp. reworked term loans sizes and spreads, and then these deals freed up for trading on Monday, and YRC Worldwide Inc. hit the secondary market as well.

In more happenings, Diversey (Diamond BC BV) increased the size of its euro term loan and tightened the spread and original issue discount on the tranche as well as on its U.S. term loan, and Duravant LLC (Engineered Machinery Holdings Inc.) reduced pricing on its first-and second-lien term loans and adjusted the first-lien issue price.

Also, CPI International Inc. moved some funds between its first-and second-lien term loans and updated spreads and issue prices on the tranches, and U.S. Security Associates Inc. upsized its add-on term loan while modifying the original issue discount, and finalized pricing on the add-on and the repricing of its existing term loan at the low end of guidance.

Furthermore, Sky Betting & Gaming modified the issue price on its term loans, and Albany Molecular Research Inc. and Jefferies Finance LLC accelerated the commitment deadlines on their loan transactions.

Additionally, Syncsort Inc., Carestream Dental Equipment Inc., Flying Fortress Inc. and Scientific Games Corp. released price talk with launch, and Women’s Care Florida and Certara joined this week’s calendar.

Zebra firms, trades

Zebra Technologies finalized pricing on its $1,338,000,000 senior secured covenant-light term loan B due Oct. 27, 2021 at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 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 terms firmed up, the term loan B made its way into the secondary market on Monday and levels were quoted at par ¼ bid, par ½ offered, a trader said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B due 2021 from Libor plus 250 bps with a 0.75% Libor floor.

Closing is expected on Wednesday.

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

Peak 10 revised

Peak 10 Holding raised its seven-year first-lien term loan to $1.2 billion from $1.12 billion and cut pricing to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, and trimmed its eight-year second-lien term loan to $310 million from $390 million while flexing the spread to Libor plus 725 bps from talk of Libor plus 750 bps to 775 bps, a market source remarked.

As before, the first-lien term loan has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan has a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., ING and SunTrust Robinson Humphrey Inc. are leading the $1.51 billion in term loans, with JPMorgan the left lead on the first-lien loan and Citigroup the left lead on the second-lien term loan.

Peak 10 starts trading

With terms finalized, Peak 10’s bank debt freed to trade, with the second-lien term loan quoted at par ½ bid, 101½ offered, a trader added.

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

Closing is expected on Aug. 1, 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.

YRC frees up

YRC Worldwide’s $600 million first-lien term loan (Ba3/B) due July 2022 broke as well, with levels quoted at 99 bid, par offered, a market source said.

Pricing on the term loan is Libor plus 850 bps with a step-down to Libor plus 650 bps at 2 times leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99 and is non-callable for one year, then at 101 in year two.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to extend the existing first-lien term loan from February 2019. The existing loan is priced at Libor plus 750 bps with a 1% Libor floor.

YRC is an Overland Park, Kan.-based less-than-truckload carrier.

Diversey reworks deal

Diversey raised its euro seven-year covenant-light first-lien term loan to €970 million from €820 million, trimmed the spread to Euribor plus 325 bps with a step-down from talk in the range of Euribor plus 350 bps 375 bps and revised the original issue discount to 99.75 from 99.5, according to a market source.

Additionally, pricing on the company’s $900 million seven-year covenant-light first-lien term loan was reduced to Libor plus 300 bps with a step-down from talk in the range of Libor plus 325 bps to 350 bps and the discount was changed to 99.75 from 99.5, the source said.

As before, the term loans have a 0% floor and 101 soft call protection for six months.

The company’s credit facilities also include a $250 million revolver.

Recommitments were due at 5 p.m. ET on Monday for U.S. investors and are due at 11 a.m. BST on Tuesday for euro commitments, the source continued.

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 LLC, HSBC, SunTrust Robinson Humphrey Inc. and Jefferies LLC are leading Diversey’s credit facilities.

Proceeds will be used with equity and bonds to fund the buyout of the company by Bain Capital Private Equity from Sealed Air Corp. for about $3.2 billion.

Due to the euro term loan upsizing, the bond offering will be downsized to €450 million from an initially planned amount of €545 million and cash will be added to the balance sheet, the source added.

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.

Duravant changes surface

Duravant cut pricing on its $565 million in seven-year first-lien term loans (B2/B), split between a $500 million funded tranche and a $65 million delayed-draw tranche, to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps and revised the original issue discount to 99.75 from 99.5, a market source said.

Additionally, pricing on the company’s $235 million in eight-year second-lien term loans (Caa2/CCC+), split between a $210 million funded tranche and a $25 million delayed-draw tranche, was lowered to Libor plus 725 bps from talk of Libor plus 775 bps to 800 bps, the source continued.

Also, the delayed-draw availability period was shortened to six months from 12 months.

As before, the term loans have a 1% Libor floor and one 25 bps pricing step-down, the first-lien term loan debt has 101 soft call protection for six months, the second-lien term loan debt still has an original issue discount of 99 and hard call protection of 102 in year one and 101 in year two, and the delayed-draw ticking fee is half the margin from days 31 to 60 from closing and the full margin thereafter.

Duravant getting revolver

Along with the term loans, Duravant’s $870 million of senior secured credit facilities provide for a $70 million five-year revolver (B2/B).

Recommitments were due at 5 p.m. ET on Monday, 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.

CPI restructures

CPI International lifted its seven-year first-lien term loan to $470 million from $450 million, set pricing at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, added a step-down to Libor plus 325 bps at 0.75 times lower total leverage and changed the issue price to par from 99.5, while leaving the 1% Libor floor and 101 soft call protection for six months intact, a market source remarked.

Also, the company scaled back its eight-year second-lien term loan to $100 million from $120 million, lowered pricing to Libor plus 725 bps from talk of Libor plus 750 bps to 775 bps and adjusted the discount to 99.5 from 99, the source continued. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $605 million of credit facilities also include a $35 million five-year revolver.

Recommitments were due at 5 p.m. ET on Monday, the source added.

UBS Investment Bank is leading the deal that will be used to help fund the buyout of the company by Odyssey Investment Partners from Veritas Capital.

CPI is a Palo Alto, Calif.-based provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications.

U.S. Security tweaked

U.S. Security Associates upsized its fungible add-on term loan B (B2/B) due July 2023 to $125 million from $100 million and moved the original issue discount to 99.9 from 99.5, according to a market source.

Also, pricing on the add-on term loan and the repricing of the company’s existing $447 million term loan B (B2/B) due July 2023 was set at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, the source said.

As before, the term loan debt has a 1% Libor floor and 101 soft call protection for six months, the repricing is offered at par and existing lenders are offered a 10 bps amendment fee on current positions.

Recommitments are due at noon ET on Tuesday, the source added.

The add-on will be used to principally pay down 11% senior notes, to finance a small tuck-in acquisition, and due to the upsizing, to add $15 million in cash to the balance sheet. The repricing will take the existing term loan down from Libor plus 500 bps with a 1% Libor floor.

Goldman Sachs Bank USA, Jefferies LLC and KeyBanc Capital Markets LLC are leading the deal for the Roswell, Ga.-based safety and security services company.

Sky Betting modified

Sky Betting & Gaming tightened the issue price on its $450 million seven-year term loan and its £465 million seven-year term loan to par from revised talk in the range of 99.5 to 99.75 and initial talk of just 99.5, a market source remarked.

Pricing on the U.S. term loan is Libor plus 350 bps and pricing on the sterling term loan is Libor plus 425 bps, and both loans have a 0% Libor floor and 101 soft call protection for six months.

Last week, pricing on the U.S. loan was cut from talk of Libor plus 375 bps and the size was changed from $300 million, and pricing on the sterling loan was trimmed from talk of Libor plus 450 bps.

The company’s £845 million equivalent credit facilities (B2/B) also include a £35 million revolver.

Recommitments are due at 10 a.m. ET on Tuesday and allocations are expected either later that day or Wednesday morning, the source added.

Goldman Sachs Bank USA, Barclays and NatWest Markets are leading the deal that will be used to refinance an existing £340 million term loan B and to make a one-off distribution to shareholders.

Sky Betting, a CVC portfolio company, is an online betting and gaming company.

Albany moves deadline

Albany Molecular Research accelerated the commitment deadline on its $925 million of senior secured credit facilities to 5 p.m. ET on Wednesday from noon ET on Friday, a market source said.

The facilities consist of a $100 million five-year revolver (B2/B+), a $620 million seven-year first-lien term loan (B2/B+) and a $205 million eight-year second-lien term loan (Caa2/B-).

Talk on the first-lien term loan is Libor plus 350 bps to 375 bps with a 1% 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 is Libor plus 750 bps to 775 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets, Goldman Sachs Bank USA, Jefferies LLC and Mizuho Bank Ltd. are the bookrunners on 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 to help fund the buyout of the company by the Carlyle Group and GTCR LLC for $21.75 per share in cash.

Other funds for the transaction will come from equity.

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.

Jefferies revises timing

Jefferies Finance moved up the commitment deadline on its $250 million seven-year senior secured term loan (/B+/BB) to Tuesday from Thursday, according to a market source.

The loan is talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Jefferies LLC, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are the bookrunners on the deal that will be used with $400 million of seven-year senior notes to repay an existing term loan and for general corporate purposes.

Jefferies is a New York-based commercial finance company that structures, underwrites and syndicates primarily senior secured loans to corporate borrowers, completing over $130 billion in arranged volume since 2004.

Syncsort releases guidance

In more primary news, Syncsort held its bank meeting on Monday and disclosed price talk on its $590 million seven-year covenant-light first-lien term loan (B2/B-) and $200 million eight-year covenant-light second-lien term loan (Caa2/CCC), a market source said.

Talk on the first-lien term loan is Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 875 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source added.

Commitments are due on Aug. 8.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Antares Capital, Golub Capital, Jefferies LLC and SunTrust Robinson Humphrey Inc. are leading the $790 million in term loans.

Syncsort funding buyout

Proceeds from Syncsort’s term loans will be used to help fund its acquisition and the acquisition of Vision Solutions Inc. by Centerbridge Partners LP from Clearlake Capital Group LP and the merger of the two companies in a transaction valued at $1.26 billion. Clearlake is retaining a minority ownership stake.

The merged company will operate under the Syncsort name and be based in Pearl River, N.Y.

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

Pearl River, N.Y.-based Syncsort and Irvine, Calif.-based Vision Solutions are enterprise software providers.

Carestream reveals talk

Carestream Dental Equipment came out with talk of Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99.5 on its $375 million seven-year covenant-light first-lien term loan in connection with its afternoon bank meeting, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $455 million of credit facilities (B2/B) also include an $80 million revolver.

Commitments are due at 5 p.m. ET on Aug. 7.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., ING, Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice and CareCapital Advisors Ltd. from Carestream.

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

Carestream Dental is a provider of imaging systems, practice management software and other services to the dental market.

Flying Fortress details emerge

Flying Fortress held its lender call in the morning, launching a $750 million term loan B at talk of Libor plus 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Thursday, the source added.

RBC Capital Markets and Bank of America Merrill Lynch are leading the deal that will be used to reprice an existing term loan B down from Libor plus 225 with a 0.75% Libor floor.

Flying Fortress is a subsidiary of AerCap, a Dublin-based aircraft leasing company.

Scientific Games holds call

Scientific Games hosted a lender call in the afternoon to launch a $3,283,000,000 term loan B-4 (Ba3/B+) due August 2024 talked at Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

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

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Fifth Third Bank, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and PNC are leading the deal that will be used to refinance/extend an existing term loan B-3 due October 2021.

Scientific Games is a New York-based developer of technology-based products and services and associated content for gaming and lottery markets.

Women’s Care on deck

Women’s Care Florida set a bank meeting for 10:30 a.m. ET on Tuesday to launch $205 million of credit facilities, according to a market source.

The facilities consist of a $30 million revolver and $175 million first-lien term loan, the source said.

Citizens Bank and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Lindsay Goldberg LLC.

Women’s Care Florida is a specialty women’s health physician group across Florida.

Certara readies deal

Certara scheduled a bank meeting for 11:30 a.m. ET on Wednesday to launch $270 million of senior secured credit facilities, a market source said.

The facilities consist of a $20 million five-year revolver and a $250 million seven-year first-lien term loan that has 101 soft call protection for six months, the source added.

The company is also getting a $100 million pre-placed eight-year HoldCo unsecured term loan.

Jefferies LLC and Golub are leading the debt that will be used to help fund the buyout of the company by EQT from Arsenal Capital Partners for $850 million. Arsenal Capital will retain a minority ownership stake in the company.

Certara is a Princeton, N.J.-based provider of technology-driven decision support solutions for drug development.

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