Horizon Pharma breaks; Red Ventures, Resolute Investment, Xplornet tweak loan deals

By Sara Rosenberg

New York, Oct. 17 – Horizon Pharma Inc. moved up the commitment deadline on its term loan B and then the debt freed up for trading on Tuesday afternoon with levels quoted above its issue price.

In more happenings, Red Ventures set the original issue discount on its second-lien term loan at the tight end of revised talk, Resolute Investment Managers trimmed the spread on its term loan, and Xplornet Communications Inc. upsized its add-on term loan B.

Also, Lumos Networks Corp. (MTN Infrastructure TopCo Inc.), Argon Medical Devices Holdings Inc., Orion Engineered Carbons, Sterigenics-Nordion Holdings LLC and ConvergeOne Holdings Corp. disclosed talk with launch.

In addition, Cypress Performance Group, Micron Technology Inc. and Ravago Holdings America Inc. emerged with new deal plans.

Horizon accelerated, trades

Horizon Pharma moved the commitment deadline on its $845,750,000 senior secured covenant-light term loan B (Ba2/BB-) due March 29, 2024 to noon ET on Tuesday from 5 p.m. ET on Tuesday, according to a market source.

Pricing on the term loan is Libor plus 325 basis points with a 1% Libor floor and a par issue price. The debt has 101 soft call protection for six months.

By late afternoon, the term loan B broke for trading and levels were seen at par 1/8 bid, par 5/8 offered, another source added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 375 bps with a 1% Libor floor.

Closing is expected on Monday.

Horizon Pharma is a Dublin-based biopharmaceutical company.

BWIC announced

Also in trading, a $78 million Bid Wanted in Competition surfaced with bids due at 10:30 a.m. ET on Wednesday, a trader said.

Some of the names in the portfolio are Allied Universal, Catalina Marketing Corp., Fieldwood Energy LLC, Qlik Technologies, TransDigm Inc. and Windstream Corp.

There are about 52 issuers in the BWIC, the trader added.

Red Ventures updated

Back in the primary market, Red Ventures firmed the original issue discount on its $400 million eight-year covenant-light second-lien term loan (Caa1/B-) at 98.5, the tight end of revised talk of 98 to 98.5 but wide of initial talk of 99, according to a market source.

Also, the company extended the 101 soft call protection on its $2 billion seven-year covenant-light first-lien term loan (B1/B+) to one year from six months, the source said.

The second-lien term loan is priced at Libor plus 800 bps with a 0% Libor floor, and has hard call protection of 102 in year one and 101 in year two, and the first-lien term loan is priced at Libor plus 400 bps with a 0% Libor floor and an original issue discount of 99.

Earlier in syndication, pricing on the second-lien term loan was lifted from talk in the range of Libor plus 725 bps to 750 bps, pricing on the first-lien term loan was flexed up from talk in the range of Libor plus 325 bps to 350 bps and the discount widened from 99.5, 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.

Allocations are expected on Wednesday.

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 cuts spread

Resolute Investment Managers lowered pricing on its $289.8 million term loan to Libor plus 325 bps from Libor plus 375 bps and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source remarked.

Commitments continue to be due at noon ET on Wednesday, the source added.

RBC Capital Markets 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.

Xplornet upsizes

Xplornet Communications lifted its add-on term loan B amount to $30 million from $25 million and its add-on senior PIK notes offering to $30 million from $25 million, according to a market source.

Pricing on the add-on loan is still Libor plus 475 bps with a 1% Libor floor and a par issue price.

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.

Lumos guidance emerges

Also in the primary market, Lumos Networks had its lenders’ presentation on Tuesday and, with the event, talk on its $550 million of senior secured credit facilities (B2/B) was announced, a market source said.

The $65 million five-year revolver is talked at Libor plus 325 bps with a 0% Libor floor, and the $485 million seven-year covenant-light first-lien term loan B is talked at 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, the source added.

Commitments are due on Oct. 27.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by EQT Infrastructure for $18.00 per share, resulting in an enterprise value of about $950 million.

Lumos is a Waynesboro, Va.-based fiber-based service provider in the Mid-Atlantic region.

Argon Medical launches

Argon Medical Devices disclosed price talk on its $310 million seven-year first-lien term loan and $110 million eight-year second-lien term loan with its bank meeting, according to a market source.

Talk on the first-lien term loan is Libor plus 425 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 825 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $435 million of credit facilities also include a $15 million revolver.

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

UBS Investment Bank is leading the deal that will be used to help fund the acquisition of the company by Shandong Weigao.

Argon Medical is a Plano, Texas-based medtech business primarily focused on physician-preferred products, which include biopsy & vascular devices, drainage catheters, guidewires and related accessories.

Orion Engineered sets talk

Orion Engineered Carbons held its call in the morning and came out with talk on its $289 million first-lien senior secured term loan B due July 25, 2024 and €331 million first-lien senior secured term loan B due July 25, 2024, according to a market source.

Talk on the U.S. term loan is Libor plus 250 bps and talk on the euro term loan is Euribor plus 275 bps, the source said. Both loans are talked with a 0% floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Commitments are due on Friday, the source added.

Goldman Sachs Bank USA is the bookrunner on the deal, and mandated lead arrangers are Citizens Bank, Goldman Sachs, ING Bank and Mediobanca International (Luxembourg) SA.

The new debt will be used to refinance an existing U.S. term loan due July 2021 priced at Libor plus 250 bps with a 0% Libor floor and an existing euro term loan due July 2021 priced at Euribor plus 275 bps with a 0% floor.

Orion Engineered Carbons is a Frankfurt-based producer of carbon black.

Sterigenics details surface

Sterigenics launched on its call a fungible $70 million add-on term loan talked at Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99.75, a market source remarked.

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

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.

ConvergeOne holds call

ConvergeOne emerged in the morning with plans to hold a lender call at 2 p.m. ET to launch a fungible $40 million incremental first-lien term loan due June 2024, a market source said.

Like the existing term loan, the incremental term loan is priced at Libor plus 475 bps with a 1% Libor floor and has 101 soft call protection until June 2018. The incremental debt is talked with an original issue discount of 99.5, the source added.

Commitments are due on Thursday.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to repay ABL borrowings and for general corporate purposes.

ConvergeOne is an Eagan, Minn.-based provider of communications solutions.

Cypress Performance on deck

Cypress Performance Group set a bank meeting for 10 a.m. ET in New York on Wednesday to launch $695 million of credit facilities, according to a market source.

The facilities consist of an $85 million revolver, a $460 million seven-year covenant-light first-lien term loan with a 1% Libor floor and 101 soft call protection for six months, and a $150 million eight-year covenant-light second-lien term loan with a 1% Libor floor and call protection of 102 in year one and 101 in year two, the source said.

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.

Micron joins calendar

Micron Technology scheduled a lenders’ call for 11 a.m. ET on Wednesday to launch a $740,625,000 senior secured term loan B, a market source remarked.

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.

Ravago readies loan

Ravago Holdings set a lender call for Thursday to launch a $321 million covenant-light term loan B due July 13, 2023 that includes 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Oct. 26, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B.

Ravago is a provider of distribution, resale, compounding and recycling services for plastic and elastomeric raw materials markets.

First Eagle wraps

In other news, First Eagle Holdings Inc. completed syndication of its $1,523,000,000 senior secured covenant-light term loan B due Dec. 1, 2022 at initial talk of Libor plus 300 bps with a 0.75% Libor floor and a par issue price. 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.

Tekni-Plex closes

The buyout of Tekni-Plex Inc. by Genstar Capital from American Securities has been completed, according to a news release.

To help fund the transaction, Tekni-Plex got $768 million of credit facilities (B2/B) that include a $60 million ABL revolver, a $413 million seven-year covenant light first lien term loan and a $295 million equivalent euro-denominated seven-year covenant-light first lien term loan.

Pricing on the U.S. term loan is Libor plus 325 bps with a step-down to Libor plus 300 bps at 0.75 times of secured deleveraging and a 1% Libor floor, and pricing on the euro term loan is Euribor plus 350 bps with a step-down to Euribor plus 325 bps at 0.75 times of secured deleveraging and a 0% floor. Both term loans were issued at par and have 101 soft call protection for six months.

During syndication, pricing on the U.S. term loan was reduced from Libor plus 350 bps, pricing on the euro term loan was lowered from Euribor plus 375 bps, the step-downs were added, and the issue prices on the loans were tightened from 99.5.

Credit Suisse Securities (USA) LLC, Jefferies LLC and BMO Capital Markets led the deal.

Tekni-Plex is a King of Prussia, Pa.-based provider of specialty packaging solutions.

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