Navicure frees to trade; Albertsons slides; ICS updated; Strategic Materials moves deadline

By Sara Rosenberg

New York, Oct. 23 – Navicure Inc./Zirmed Inc. set the spread on its first-lien term loan at the low side of guidance and reduced pricing on its second-lien term loan before making its way into the secondary market on Monday, and Albertsons Cos. LLC’s term loans weakened with earnings news.

In more happenings, Industrial Container Services LLC (ICS) firmed pricing on its term loan at the wide side of talk, and Strategic Materials Inc. accelerated the commitment deadline on its term loans.

Also, Medallion Midland Acquisition LLC, FLY Leasing and MHS (Material Handling Systems) released price talk with launch, and Big Ass Solutions (Big Ass Fans LLC), MDVIP Inc. and VC GB Holdings Inc. joined this week’s primary calendar.

Navicure tweaked, breaks

Navicure finalized pricing on its $435 million seven-year covenant-light first-lien term loan (B2/B) at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and left 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, pricing on the $185 million eight-year second-lien term loan (Caa2/CCC) was cut to Libor plus 750 bps from talk in the range of Libor plus 775 bps to 800 bps, the source said. This tranche still has a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

Furthermore, the MFN sunset period was removed, the source added.

The company’s $670 million of credit facilities include a $50 million five-year revolver (B2/B) as well.

With terms firmed up, the new bank debt began trading and both the first-and second-lien term loans were quoted at par bid, par ½ offered, a trader added

Antares Capital is leading the deal that will be used to help fund the combination of Navicure, an existing Bain portfolio company, with Zirmed.

Closing is expected on Nov. 1.

Atlanta-based Navicure and Louisville, Ky.-based Zirmed are providers of integrated cloud-based medical claims management and patient payment solutions.

Albertsons softens

Also in trading, Albertsons’ term loans B-4, B-5 and B-6 dipped to 96 3/8 bid, 97 1/8 offered from 97 bid, 97½ offered following the release of second quarter of fiscal 2017 numbers, a market source remarked.

For the quarter, the company reported net sales and other revenue of $13.83 billion, down from $13.86 billion in the second quarter of fiscal 2016.

And, adjusted EBITDA was $485.2 million for the quarter, versus $573.7 million in the prior year.

Albertsons is a Boise, Idaho-based food and drug retailer.

BWIC’s announced

A $469.8 million Bid Wanted In Competition surfaced, with bids due at 10 a.m. ET on Tuesday, and a $204.8 million BWIC emerged, with bids due at 1 p.m. ET on Wednesday, traders said.

Some of the names in the $469.8 million portfolio are Advanced Disposal Services Inc., Asurion LLC, BJ's Wholesale Club Inc., CHS/Community Health Systems Inc., Dell International LLC, First Data Corp., Hilton Worldwide Finance LLC, Lightstone Holdco LLC, NRG Energy Inc., Quikrete Holdings Inc., Rocket Software Inc., SS&C Technologies Holdings Inc., Vistra Operations Co. LLC and Zodiac Pool Solutions LLC. There are about 291 issuers in the BWIC.

The $204.8 million BWIC includes such names as American Airlines Inc., Avolon, CHS/Community Health Systems Inc., Dell International LLC, HCA Inc., iStar Inc., Regal Cinemas Corp., TransDigm Inc. and Zayo Group LLC. There are about 64 issuers in the portfolio, traders added.

ICS sets spread

Back in the primary market, Industrial Container Services firmed pricing on its $425 million first-lien senior secured term loan B due April 2024 at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, according to a market source.

As before, the term loan has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

The debt is made up of a $380 million funded tranche and a $45 million delayed-draw portion that will see its availability extended to April 2018 from October 2017 as part of the repricing. The delayed-draw ticking fee is the full spread plus Libor.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Closing is expected on Oct. 30, the source added.

Industrial Container is a Maitland, Fla.-based provider of steel industrial container reconditioning services.

Strategic Materials accelerated

Strategic Materials moved up the commitment deadline on its term loans to 5 p.m. ET on Wednesday from Nov. 1, a market source remarked.

The credit agreement was posted on Monday, the source added.

The debt consists of a $235 million seven-year first-lien term loan (B2/B) and an $80 million eight-year second-lien term loan (Caa2/CCC+).

Talk on the first-lien term loan is Libor plus 400 basis points 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 800 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two.

Along with the term loans, the company is getting a $40 million revolver (B2/B).

Goldman Sachs Bank USA, BMO Capital Markets and Societe Generale are leading the deal that will be used to help fund the buyout of the company by Littlejohn & Co. LLC.

Strategic Materials is a Houston-based environmental services company.

Medallion discloses talk

Medallion Midland Acquisition held its bank meeting on Monday, launching its $700 million seven-year first-lien term loan (//BB+) at talk of Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

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

The company’s $725 million of credit facilities also include a $25 million super-priority revolver.

Commitments are due on Nov. 3, the source said.

Jefferies LLC is leading the deal that will be used to fund the acquisition of the company by Global Infrastructure Partners from the Energy & Minerals Group and Laredo Petroleum Inc. for $1,825,000,000 plus potential additional cash consideration, subject to customary closing adjustments.

Medallion is an Irving, Texas-based crude oil gathering and intra-basin transportation system in the Midland Basin, within the eastern half of the prolific Permian Basin.

FLY Leasing guidance

FLY Leasing came out with talk of Libor plus 200 bps with no Libor floor, a par issue price and 101 soft call protection for six months on its $437 million term loan B due February 2023 that launched with a call during the session, a market source remarked.

Commitments are due on Friday, the source added.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan from Libor plus 225 bps with no Libor floor.

FLY is a Dublin-based aircraft lessor.

MHS details surface

MHS launched on its lender call a fungible $25 million add-on term loan B talked at a par issue price, a market source said.

Like the existing $240 million term loan B, the add-on term loan B is priced at Libor plus 500 bps with a 1% Libor floor.

As part of the transaction, the company is looking to replace the current financial maintenance covenant under the term loan B with a springing financial covenant, the source added.

Commitments are due on Oct. 30.

RBC Capital Markets is leading the deal that will be used for acquisitions.

MHS is a Louisville, Ky.-based provider of e-commerce infrastructure.

Big Ass Solutions on deck

Big Ass Solutions set a bank meeting for 10 a.m. ET in New York on Tuesday to launch $290 million of credit facilities (B2/B), according to a market source.

The facilities consists of a $40 million revolver, and a $250 million 6.5-year covenant-light first-lien term loan that has a 1% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due on Nov. 8.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal, which will be used to help fund the buyout of the company by Lindsay Goldberg.

Big Ass Solutions is a Lexington, Ky.-based producer of high volume, low speed and connected fans.

MDVIP coming soon

MDVIP will hold a bank meeting on Wednesday to launch $240 million of first-lien credit facilities, a market source said.

The facilities consist of a $25 million revolver and a $215 million seven-year first-lien term loan, the source continued.

In addition, the company is getting a $95 million eight-year second-lien term loan that has been pre-placed.

Jefferies LLC, Antares Capital and Societe Generale are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners.

MDVIP is a provider of membership-based private healthcare services.

VC GB readies deal

VC GB Holdings set a lender call for 1 p.m. ET on Tuesday to launch a $498 million covenant-light first-lien term loan (B1/B) due February 2024 talked at Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Oct. 31, the source said.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor.

VC GB is a decorative lighting company.

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