Dell, Red Ventures, Resolute, Charah, U.S. Lumber, Xplornet break; Sterigenics updated

By Sara Rosenberg

New York, Oct. 18 – Dell Technologies Inc. increased the size of its first-lien term loan, finalized the spread at the low side of guidance and freed up for trading on Wednesday, and deals from Red Ventures, Resolute Investment Managers, Charah LLC, U.S. Lumber Group LLC and Xplornet Communications Inc. hit the secondary market too.

In other news, Sterigenics-Nordion Holdings LLC tightened the issue price on its add-on term loan, and Cypress Performance Group, Office Depot Inc., American Airlines Inc., Micron Technology Inc., Strategic Materials Inc. and Caesars Entertainment Opco (CEOC LLC) released talk with launch.

Furthermore, Linden Cogeneration Power Complex (EFS Cogen Holdings I LLC), Chassix and Springer Nature joined this week’s primary calendar.

Dell revised, trades

Dell Technologies raised its first-lien term loan (Baa3/BBB-/BBB-) due Sept. 7, 2023 to $5 billion from $4,788,000,000 and set pricing at Libor plus 200 basis points, the tight end of the Libor plus 200 bps to 225 bps talk, according to a market source.

The term loan still has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

Commitments were due at 11 a.m. ET on Wednesday and then the loan broke for trading in the afternoon with levels quoted at par 1/8 bid, par 3/8 offered, another source added.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan down from Libor plus 250 bps with a 0.75% Libor floor, and reduce the existing loan down from a current outstanding amount of $5.46 billion.

The borrowers are Dell International LLC and EMC Corp.

Dell Technologies is a Round Rock, Texas-based technology company.

Red Ventures frees up

Red Ventures’ credit facilities also started trading, with the $2 billion seven-year covenant-light first-lien term loan (B1/B+) quoted at 99¼ bid, 99½ offered and the $400 million eight-year covenant-light second-lien term loan (Caa1/B-) quoted at 99 bid, 99½ offered, a trader remarked.

The first-lien term loan is priced at Libor plus 400 bps with a 0% Libor floor and was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

Pricing on the second-lien term loan is Libor plus 800 bps with a 0% Libor floor, and it was issued at a discount of 98.5. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was flexed up from talk in the range of Libor plus 325 bps to 350 bps, the discount widened from 99.5 and the call protection was extended from six months, pricing on the second-lien term loan was lifted from talk in the range of Libor plus 725 bps to 750 bps and the discount firmed at the tight end of revised talk of 98 to 98.5 but wide of initial talk of 99, the incremental allowance was revised and the MFN was changed.

The company’s $2.6 billion of credit facilities also include a $200 million revolver (B1/B+).

Red Ventures leads

Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Fifth Third, MUFG and PNC are leading Red Venture’s credit facilities.

The new debt will be used to help fund the acquisition of Bankrate for $14.00 per share in cash. The transaction values Bankrate at an enterprise value of about $1.4 billion.

Closing is expected this year, subject to approval by Bankrate shareholders, regulatory approval and other customary conditions.

Red Ventures is a Charlotte, N.C.-based digital consumer choice platform. Bankrate is a New York-based online publisher, aggregator and distributor of personal finance content.

Resolute hits secondary

Resolute Investment Managers’ $289.8 million term loan freed to trade, with levels seen at par 5/8 bid, 101 1/8 offered, a trader said.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

On Tuesday, pricing on the term loan was reduced from Libor plus 375 bps.

RBC Capital Markets LLC and Barclays are leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Resolute Investment, formerly known as American Beacon Advisors Inc., is an Irving, Texas-based provider of investment advisory services to institutional and retail markets.

Charah breaks

Charah’s $250 million seven-year first-lien term loan (B2/B+) made its way into the secondary market in the morning, with levels quoted at 98½ bid, 99 offered, according to a market source.

The term loan is priced at Libor plus 625 bps with a 1% Libor floor and was sold at an original issue discount of 98. The loan has 101 soft call protection for 24 months.

On Monday, pricing on the term loan was lifted from talk in the range of Libor plus 550 bps to 575 bps, the discount was revised from 99, the call protection was extended from six months and the amortization was increased to 7.5% per annum from 5% per annum.

Credit Suisse Securities (USA) LLC, Jefferies LLC and Regions Bank are leading the deal that will be used to refinance existing debt and fund a dividend.

Charah is a Louisville, Ky.-based service provider to the regulated utility industry.

U.S. Lumber tops OID

U.S. Lumber Group’s $215 million six-year covenant-light term loan (B3/B) also broke, with levels quoted at 99 bid, par offered, a market source said.

Pricing on the term loan is Libor plus 600 bps with a 1% Libor floor and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from talk in the range of Libor plus 525 bps to 550 bps, the discount widened from 99, the call protection was extended from six months and the maturity as shortened from seven years.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to help fund a strategic growth investment from Madison Dearborn Partners.

U.S. Lumber is an Atlanta-based two-step distributor of specialty building products.

Xplornet begins trading

Xplornet Communications’ $30 million add-on term loan B began trading as well, with levels quoted at 101 bid, according to a market source.

Pricing on the add-on loan is Libor plus 475 bps with a 1% Libor floor and it was issued at par.

During syndication, the loan was upsized from $25 million.

The company is also getting $30 million of add-on senior PIK notes, which was upsized from $25 million on Tuesday.

SunTrust Robinson Humphrey Inc. is the left lead on the debt that will be used to finance the acquisition of internet access business assets in Canada, and, because of the upsizings, for general corporate purposes, which may include refinancing the company’s existing 2009 credit facility.

Xplornet is a Woodstock, New Brunswick-based rural-focused broadband service provider.

First Eagle rises

Also in trading, First Eagle Holdings Inc.’s $1,523,000,000 senior secured covenant-light term loan B due Dec. 1, 2022 was quoted at par ¾ bid, 101¼ offered, up from the par ½ bid, 101 offered levels that were seen when the debt freed to trade in the prior evening, a trader remarked.

Pricing on the loan is Libor plus 300 bps with a 0.75% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc., Citigroup Global Markets Inc. and Bank of America Merrill Lynch are leading the deal that will be used to reprice an existing term loan B from Libor plus 350 bps with a 0.75% Libor floor.

Closing is expected next week.

First Eagle is a New York-based asset management firm.

Sterigenics tweaks deal

Switching back to the primary market, Sterigenics changed the issue price on its fungible $70 million add-on term loan to par from 99.75 and accelerated the commitment deadline to noon ET on Thursday from noon ET on Friday, according to a market source.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor.

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

Sterigenics is a Deerfield, Ill.-based provider of contract sterilization, gamma technologies and medical isotopes.

Cypress discloses talk

Cypress Performance Group held its bank meeting on Wednesday and, with the event, talk on its $460 million seven-year covenant-light first-lien term loan (B1/B) and $150 million eight-year covenant-light second-lien term loan (Caa1/CCC+) was announced, a market source said.

The first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor and a discount of 99, the source added.

As previously reported, the first-lien term loan has 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $695 million of credit facilities also include an $85 million revolver (B1/B).

Commitments are due at 5 p.m. ET on Nov. 1.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Jefferies LLC, Deutsche Bank Securities Inc. and M&T Bank are leading the deal that will be used to fund the combination of Encapsys LLC and IPS Corp.

Cypress Performance is an advanced materials and diversified products provider.

Office Depot terms emerge

Office Depot released talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months on its $750 million six-year senior secured term loan B (B1/B+) that launched with a bank meeting in the afternoon, according to a market source.

Commitments are due on Oct. 31, the source said.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to fund the acquisition of CompuCom.

Office Depot is a Boca Raton, Fla.-based provider of office supplies and business products and services.

American Airlines repricing

American Airlines launched without a call a $990 million senior secured term loan due April 28, 2023 talked at Libor plus 200 bps with a 0% 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. 26, the source said.

Barclays, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Credit Agricole, U.S. Bank, BNP Paribas Securities Corp., ICBC, Sumitomo, Standard Chartered Bank and Texas Capital Bank are leading the deal that will be used to reprice an existing term loan due 2023 from Libor plus 250 bps with a 0.75% Libor floor.

American Airlines is a Fort Worth, Texas-based airline company.

Micron holds call

Micron Technology had its lender call in the morning, launching its $740,625,000 senior secured covenant-light term loan B due April 26, 2022 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 Tuesday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B due 2022 from Libor plus 250 bps with a 0% Libor floor.

Micron is a Boise, Idaho-based semiconductor company.

Strategic Materials guidance

Strategic Materials came out with price talk on its $235 million seven-year first-lien term loan and $80 million eight-year second-lien term loan with its bank meeting on Wednesday, according to a market source.

Talk on the first-lien term loan is Libor plus 400 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 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, the source said.

Commitments are due on Nov. 1.

Goldman Sachs Bank USA, BMO Capital Markets and Societe Generale are leading the senior secured 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.

Caesars launches loan

Caesars Entertainment launched without a call a fungible $265 million incremental covenant-light first-lien term loan (Ba3/BB) due Oct. 6, 2024 at talk of Libor plus 250 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75, 101 soft call protection until April 6, 2018 and a ticking fee of half the margin from days 31 to 60 and the full margin thereafter, a market source said.

The spread, floor and call protection on the incremental loan matches the existing first-lien term loan.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance debt at Harrah’s Philadelphia, which will become part of the CEOC credit group.

Caesars is a Las Vegas-based full service gaming and entertainment company.

Linden readies deal

Linden Cogeneration Power Complex set a lender call for 10:30 a.m. ET on Thursday to launch a repricing of its existing $946,108,254 senior secured first-lien term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the transaction.

Linden Cogeneration is the owner of a natural gas-fired combined-cycle cogeneration project located in Linden, N.J.

Chassix on deck

Chassix scheduled a bank meeting for Thursday to launch a $320 million seven-year term loan B (B3), a market source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and fund a dividend.

Chassix is a Southfield, Mich.-based automotive supplier of precision casting and machining solutions.

Springer coming soon

Springer Nature will hold a call on Friday to launch a $1,292,000,000 term loan and €1,895,000,000 term loan, according to a market source.

Talk on the U.S. term loan is Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.875, and talk on the euro term loan is Euribor plus 325 bps with a 0.5% floor and a discount of 99.875, the source said. Both loans have 101 soft call protection for six months.

Commitments are due on Oct. 26, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Springer Nature is a Germany-based scientific publishing company.

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