Sensata Technologies breaks; Davis Vision revisions emerge; TerraForm accelerates deadline

By Sara Rosenberg

New York, Nov. 1 – Sensata Technologies BV finalized pricing on its term loan B at the low end of guidance and then the debt made its way into the secondary market, with levels quoted above par.

Also, Davis Vision-Superior Vision moved some funds between its first-and second-lien term loans and tightened spreads as well as original issue discounts on the tranches, and TerraForm Power Operating LLC moved up the commitment deadline on its term loan B.

In addition, Avaya Inc., Utz Quality Foods LLC, Cryolife Inc., Cole-Parmer Instrument Co., Wall Street Systems and ION Trading Technologies disclosed price talk with launch, and Intelsat Jackson Holdings SA, Michael Baker International LLC, Seahawk Holdings (Dell Software) and OEConnection LLC emerged with new deal plans.

Sensata firms, trades

Sensata Technologies set the spread on its $927,794,128 senior secured covenant-light term loan B (Baa3/BBB-) due Oct. 14, 2021 at Libor plus 175 basis points, the low end of the Libor plus 175 bps to 200 bps talk, according to a market source.

As before, the term loan has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

With terms finalized, the loan broke for trading and levels were quoted at par 1/8 bid, par ½ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B and amend certain covenants and definitions.

Closing is expected on Tuesday, the source added.

Sensata is a producer of sensors and controls for manufacturers in the automotive, appliance, aircraft, industrial and HVAC markets.

Davis Vision reworked

Davis Vision-Superior Vision, a managed vision care company, lifted its seven-year first-lien term loan (B1/B) to $700 million from $660 million, reduced pricing to Libor plus 300 bps from talk in the range of Libor plus 325 bps to 350 bps and moved the original issue discount to 99.75 from 99.5, while leaving the 1% Libor floor and 101 soft call protection for six months unchanged, according to a market source.

Additionally, the company downsized its eight-year second-lien term loan (Caa1/CCC+) to $210 million from $250 million, trimmed pricing to Libor plus 675 bps from talk in the range of Libor plus 725 bps to 750 bps and revised the discount to 99.5 from 98.5, the source said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $985 million of senior secured credit facilities also include a $75 million revolver (B1/B).

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

Goldman Sachs Bank USA, Barclays, Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and BMO Capital Markets are leading the deal that will be used to help fund the acquisition of Davis Vision Inc. by Centerbridge Partners LP from Highmark Inc. and combination with Centerbridge’s existing portfolio company Superior Vision. Highmark will acquire a minority ownership interest in the combined company.

Closing is expected in the fourth quarter, subject to regulatory approval.

TerraForm revises deadline

TerraForm Power accelerated the commitment deadline on its $300 million five-year covenant-light term loan B (Ba1/BB+) to noon ET on Thursday from Nov. 8, a market source said.

Talk on the term loan B is Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

RBC Capital Markets, the Bank of Nova Scotia, BMO Capital Markets, HSBC Securities (USA) Inc., Natixis and SMBC are leading the deal that will be used with cash on hand to repay a non-recourse portfolio term loan entered into in December 2015.

TerraForm Power is a Bethesda, Md.-based owner and operator of a renewable power portfolio of solar and wind assets. The company is sponsored by Brookfield Asset Management.

Avaya releases terms

Also in the primary market, Avaya held its bank meeting on Wednesday, launching its $2,425,000,000 seven-year first-lien term loan (B1//BB-) at talk of Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Nov. 8, the source said.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the company’s exit from Chapter 11.

In addition to the term loan, the company has received a commitment for a $300 million five-year senior secured asset-based lending facility that is expected to be priced at Libor plus 175 bps, subject to a grid based on average daily historical excess availability.

Avaya is a Santa Clara, Calif.-based business communications company.

Utz holds meeting

Utz Quality Foods announced price talk on its $535 million seven-year covenant-light first-lien term loan (B2/B) and $125 million eight-year covenant-light second-lien term loan (Caa1/CCC+) with its Wednesday bank meeting, a market source said.

Talk on the first-lien term loan is Libor plus 375 bps with a 0% Libor floor, a discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 725 bps with a 0% Libor floor, a discount of 98.5 to 99 and hard call protection of 102 in year one and 101 in year two, the source added.

Commitments are due at 5 p.m. ET on Nov. 13.

Bank of America Merrill Lynch is leading the deal that will be used to fund the acquisition of Inventure Foods Inc. for $4 per share in cash, for a total purchase price of about $165 million, including the assumption of around $75 million of debt and debt-like items, to finance the purchase of Metropoulos and Co.’s minority stake in Utz and to refinance existing debt.

Closing is expected this quarter, subject to the tender of more than 50% of the fully diluted shares of Inventure Foods common stock, the receipt of regulatory approvals and other customary conditions.

Utz is a Hanover, Pa.-based salty snack manufacturer and marketer. Inventure Foods is a Phoenix-based specialty food marketer and manufacturer.

Cryolife reveals guidance

Cryolife came out with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $225 million covenant-light first-lien term loan B due November 2024 that launched with a morning bank meeting, a market source remarked.

The company’s $255 million of credit facilities also include a $30 million revolver.

Commitments are due at noon ET on Nov. 14, the source added.

Deutsche Bank Securities Inc., Capital One Bank and Fifth Third Bank are leading the deal that will be used with cash on hand to fund the acquisition of Jotec AG, a German-based developer of technologically differentiated endovascular stent grafts, and cardiac and vascular surgical grafts, and to refinance an existing $69 million term loan.

CryoLife is buying Jotec for an upfront payment of $225 million, subject to certain adjustments, consisting of 75% in cash and 25% in CryoLife common stock issued to Jotec’s shareholders.

Closing is expected this year, subject to customary conditions.

CryoLife is a Kennesaw, Ga.-based medical device and tissue processing company focused on cardiac and vascular surgery.

Cole-Parmer details emerge

Cole-Parmer Instrument held its lender call in the afternoon, launching its $507.6 million first-lien term loan at talk of Libor plus 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Responses are due on Tuesday, the source said.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Cole-Parmer is a Vernon Hills, Ill.-based provider of laboratory and industrial fluid handling products, instrumentation, equipment and supplies.

Wall Street launches

Wall Street Systems launched at its bank meeting its U.S. and euro term loans with talk of Libor/Euribor plus 325 bps to 350 bps with a 1% floor and an original issue discount of 99.5, according to a market source.

UBS Investment Bank is leading the deal that will be used for a dividend recapitalization.

Wall Street Systems is a provider of treasury management, central banking and FX trade processing solutions with U.S. headquarters in New York.

ION talk surfaces

ION Trading Technologies had its bank meeting, launching its U.S. and euro term loans at talk of Libor/Euribor plus 300 bps to 325 bps with a 1% floor and an original issue discount of 99.5, a market source said.

UBS Investment Bank is leading the deal that will be used for a dividend recapitalization.

ION Trading is a software provider of trading, treasury and workflow solutions.

Intelsat coming soon

Intelsat Jackson will hold a lenders’ call at noon ET on Thursday to launch a $1.6 billion senior secured term loan B due 2023, a market source remarked.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., J.P. Morgan Chase Bank, Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal that will be used to amend and extend a portion of the existing term loan B due 2019.

Intelsat is a Luxembourg-based communications satellite company.

Michael Baker on deck

Michael Baker set a bank meeting for 10 a.m. ET in New York on Thursday to launch $360 million of credit facilities, according to a market source.

The facilities consist of a $110 million 4.5-year ABL revolver and a $250 million five-year senior secured first-lien term loan, the source said.

Jefferies LLC, SunTrust Robinson Humphrey Inc. and Citizens Bank are leading the deal that will be used to refinance existing debt and to fund a distribution to SC3 shareholders in connection with the previously announced sale of SC3.

The company also plans on issuing secured notes.

Michael Baker is a Pittsburgh-based provider of engineering, development, intelligence and technology solutions.

Seahawk joins calendar

Seahawk Holdings scheduled a lender call for 10 a.m. ET on Thursday to launch a $375 million incremental first-lien term loan (B) due October 2022 and a repricing of its existing $1.32 billion first-lien term loan (B) due October 2022, a market source remarked.

The term loans include a 1% Libor floor and 101 soft call protection for six months, the source added.

Commitments are due on Nov. 9.

Credit Suisse Securities (USA) LLC is the left lead on the deal.

The incremental loan will be used to refinance preferred equity.

Seahawk is a provider of integrated software, identity and management solutions and network security solutions.

OEConnection readies deal

OEConnection emerged with plans to hold a bank meeting in New York on Monday to launch $435 million of senior credit facilities, according to a market source.

The facilities consist of a $35 million six-year revolver, a $300 million seven-year covenant-light term loan and a $100 million eight-year second-lien term loan, the source said.

Antares Capital and CapitalOne are leading the deal that will be used for a recapitalization.

OEConnection, a Providence Equity Partners LLC portfolio company, is a Richfield, Ohio-based provider of SaaS solutions that help drive genuine OE parts sales and services across the automotive system.

VC GB wraps at talk

In other news, VC GB Holdings Inc. completed syndication of its $498 million covenant-light first-lien term loan (B1/B) due February 2024 at talk of Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market 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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