Stars, HireRight, Asurion, Clean Harbors, Kepro, BBB Industries, Worldwide Express break

By Sara Rosenberg

New York, June 29 – A number of deals freed up for trading on Friday, including Stars Group Inc., HireRight (Genuine Financial Holdings LLC), Asurion LLC, Clean Harbors Inc. and Kepro (Keystone Peer Review Organization Inc.).

Additionally, BBB Industries LLC’s credit facilities hit the secondary market after the company extended the call protection on its first-lien term loan, and Worldwide Express (SMB Shipping Logistics) broke after cancelling plans for new term loans and getting an add-on first-lien term loan instead.

In more happenings, Value-Based Care Solutions widened the spread and original issue discount on its first-lien term loan B, eliminated pricing step-downs and extended the call protection, and Intermedia surfaced with new deal plans.

Stars Group starts trading

Stars Group’s $3,575,000,000 seven-year covenant-light term loan B emerged in the secondary market on Friday, with levels quoted at 99¾ bid, 100¼ offered, according to a trader.

Pricing on the U.S. term loan B is Libor plus 350 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The company is also getting an €850 million seven-year covenant-light term loan B priced at Euribor plus 375 bps with a 0% floor and issued at a discount of 99.5. This tranche has 101 soft call protection for six months as well.

On Thursday, the originally $4,975,000,000 equivalent term loan B (split between a U.S. tranche, a €1 billion tranche and a £400 million tranche) was downsized, the pound sterling piece was eliminated, and pricing on the euro loan was lifted from Euribor plus 350 bps. Talk on the pound sterling piece had been Libor plus 425 bps with a 0% Libor floor, a discount of 99.5 and 101 soft call protection for six months.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Barclays, BMO Capital Markets and J.P. Morgan Securities LLC are leading the deal.

Stars buying Sky

Proceeds from Stars Group’s term loans will be used to help fund the acquisition of Sky Betting & Gaming from CVC Capital Partners and Sky plc for about $4.7 billion, of which $3.6 billion is payable in cash and the remainder is payable in around 37.9 million newly issued common shares.

Other funds for the transaction will come from $1 billion of senior notes, which were upsized from $750 million when the total amount of term loan B debt was downsized.

Closing is expected during the week of July 9.

Stars Group is a Toronto-based provider of technology-based products and services in the gaming and interactive entertainment industries. Sky Betting is an online betting and gaming company.

HireRight hits secondary

HireRight’s new bank debt also broke, with the $835 million seven-year covenant-light first-lien term loan (B2/B) seen at 99 5/8 bid, 100 1/8 offered and the $215 million eight-year covenant-light second-lien term loan (Caa2/CCC+) seen at 99 bid, 99¾ offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 375 bps with a 0% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps with a 0% Libor floor and was issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the spread on the first-lien term loan finalized at the high end of the Libor plus 350 bps to 375 bps talk.

HireRight lead banks

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Citizens are the arrangers on HireRight’s $1.05 billion of term loans, with Bank of America the left lead on the first-lien loan and Credit Suisse the left lead on the second-lien loan.

Proceeds will be used to help fund the merger of HireRight and General Information Services, a General Atlantic portfolio company.

Other funds for the transaction will come from an equity contribution from Stone Point and General Atlantic and cash on hand.

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

Irvine, Calif.-based HireRight and Chapin, S.C.-based General Information Services are providers of background screening and talent acquisition services.

Asurion begins trading

Asurion’s term loans freed up, with the $2.25 billion covenant-light first-lien term B-7 (B+) due November 2024 quoted at 99½ bid, 99¾ offered and the $1.5 billion add-on covenant-light second-lien term loan (B-) due Aug. 4, 2025 quoted at 101 3/8 bid, 101 7/8 offered, according to a trader.

Pricing on the term loan B-7 is Libor plus 300 bps with a 0% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 650 bps with a 0% Libor floor and was issued at a discount of 99.75. This loan has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the second-lien term loan was reduced from Libor plus 675 bps, and the discount tightened from talk in the range of 99 to 99.5.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the $3.75 billion of term loans that will be used to fund a share repurchase/return of capital.

Existing first-lien lenders were offered a 50-bps consent fee, and existing second-lien lenders were offered a 75-bps consent fee.

Asurion is a Nashville-based provider of technology protection services.

Clean Harbors frees up

Clean Harbors’ fungible $350 million add-on senior secured first-lien term loan (Ba1/BBB-) due June 2024 began trading, with levels quoted at 99¾ bid, 100¼ offered, a market source said.

Pricing on the add-on term loan is Libor plus 175 bps with a 0% Libor floor, in line with the existing term loan, and the new debt was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

Original issue discount talk at launch was in the 99.5 area.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with cash on hand and/or revolver borrowings to fund the tender offer for $400 million of the company’s 5¼% senior notes due 2020.

Closing is expected during the week of July 17.

Clean Harbors is a Norwell, Mass.-based provider of environmental, energy and industrial services.

Kepro tops OID

Kepro’s fungible $27.5 million add-on first-lien term loan due May 2024 broke as well, with levels seen at 99¾ bid, 100½ offered, a trader remarked.

Pricing on the add-on loan is Libor plus 525 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and the new debt was sold at an original issue discount of 99.5.

RBC Capital Markets LLC is leading the deal that will be used to fund an acquisition.

Kepro is a Harrisburg, Pa.-based quality improvement and care management organization.

BBB tweaked, breaks

BBB Industries pushed out the 101 soft call protection on its $620 million seven-year covenant-light first-lien term loan (B3/B-) to one year from six months, according to a market source.

Pricing on the first-lien term loan is Libor plus 450 bps with a 0% Libor floor and an original issue discount of 99.

The company’s $900 million of credit facilities also include a $100 million ABL revolver and a $180 million eight-year covenant-light second-lien term loan (Caa2/CCC) priced at Libor plus 850 bps with a 0% Libor floor and a discount of 99. The second-lien loan has call protection of 102 in year one and 101 in year two.

On Thursday, pricing on the first-lien term loan was increased from Libor plus 400 bps and the discount was revised from 99.5, and pricing on the second-lien term loan was lifted from Libor plus 825 bps.

The credit facilities freed to trade on Friday, with the first-lien term loan quoted at 99¼ bid, 99¾ offered and the second-lien term loan quoted at 99 bid, par offered, a trader added.

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

BBB is a Daphne, Ala.-based remanufacturer of automotive products.

Worldwide reworked, trades

Worldwide Express cancelled plans for a $500 million seven-year covenant-light first-lien term loan and a $200 million privately placed second-lien term loan and instead is getting a fungible $80 million add-on first-lien term loan due February 2024, a market source remarked.

The add-on term loan is priced at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, and has a total net leverage ratio covenant, the source continued.

The cancelled first-lien term loan was talked at Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Late in the session, the add-on term loan broke for trading and levels were quoted at 99¼ bid, 100¼ offered, the source added.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Citizens Bank and Stifel are leading the deal that will be used to acquire the Worldwide Express franchise owner.

As a result of the revised structure, the company is no longer refinancing existing debt or paying a dividend to existing equityholders.

Closing is expected during the week of July 2.

Worldwide Express is a Dallas-based provider of small parcel, less-than-truckload and truckload services.

Value-Based revised

Value-Based Care Solutions lifted pricing on its $600 million seven-year first-lien term loan B (B2/B) to Libor plus 425 bps from talk in the range of Libor plus 375 bps to 400 bps, eliminated pricing step-downs, adjusted the original issue discount to 98 from 99.5 and extended the 101 soft call protection to one year from six months, a market source said.

Additionally, documentation changes included setting a 75% excess cash flow sweep and modifying MFN, incremental, asset sale sweeps and EBITDA definition, the source continued.

As before, the first-lien term loan has a 1% Libor floor.

Books close at 5 p.m. ET on Monday, the source added.

The company’s $850 million of credit facilities also include a $75 million revolver (B2/B) and a $175 million privately placed second-lien term loan (Caa2/CCC+).

Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are leading the deal that will help fund the buyout of General Electric’s Value-Based Care Division by Veritas Capital for $1.05 billion in cash.

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

Value-Based Care Solutions is a software provider that leverages technology and analytics to help health care providers effectively manage their financial, clinical and human capital workflows.

Intermedia on deck

Intermedia set a bank meeting for July 10 to launch $285 million of credit facilities (B), according to a market source.

The facilities consist of a $25 million five-year revolver and a $260 million seven-year term loan B, the source said.

TD Securities (USA) LLC is leading the deal that will be used to refinance existing first- and second-lien term loans.

Intermedia, a Madison Dearborn Partners portfolio company, is a Mountain View, Calif.-based provider of Unified Communications as a Service and business cloud applications software.

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