HUB, Iridium free up; Kantar revised; Ellie Mae, WorldStrides release price talk

By Sara Rosenberg

New York, Oct. 18 – HUB International Ltd. firmed the spread on its incremental term loan B at the high end of guidance, increased the Libor floor and widened the original issue discount before breaking for trading on Friday, and Iridium Satellite LLC’s term loan surfaced in the secondary market as well.

In other news, Kantar reworked its U.S. and euro term loan B sizes and pricing, and added a term loan A to its capital structure, Ellie Mae Inc. and WorldStrides announced price talk with launch, and Jane Street Group LLC, Edgewood Partners Holdings LLC (EPIC), NN Inc. and Belron emerged with new deal plans.

HUB tweaked, frees up

HUB International finalized pricing on its non-fungible $1.27 billion incremental senior secured covenant-lite term loan B (B2/B) due April 25, 2025 at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, moved the Libor floor to 1% from 0% and changed the original issue discount to 98.5 from 99, according to a market source.

Also, the MFN was revised to 50 bps for 18 months from 75 bps for 12 months.

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

Recommitments were due at 10 a.m. ET on Friday and the loan broke for trading in the afternoon, with levels quoted at 99¼ bid, 99¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., BofA Securities, Inc., Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., BMO Capital Markets Corp. and Nomura Securities International Inc. are leading the deal that will be used to repay revolver drawings, fund acquisitions under letters of intent and fund a distribution to shareholders.

Closing is expected in mid-November.

HUB is a Chicago-based insurance brokerage.

Iridium starts trading

Iridium Satellite’s credit facilities freed up, with the $1.45 billion seven-year covenant-lite term loan B quoted at par ¼ bid, par ¾ offered, a market source said.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from revised talk of Libor plus 400 bps and initial talk at launch in the range of Libor plus 425 bps to 450 bps, a 25 bps step-down upon B1/B+ corporate family ratings was added and then removed, the Libor floor was modified from 0% and the discount tightened from 99.

The company’s $1.55 billion of credit facilities (B1/B+) also include a $100 million five-year revolver.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC and Societe Generale are leading the deal that will be used with cash on hand to refinance the company’s existing $1.55 billion export credit facility.

Iridium is a McLean, Va.-based satellite communications company.

Kantar restructured

Back in the primary market, Kantar set its U.S. seven-year term loan B size at $500 million and its euro seven-year term loan B size at €750 million, and added a $350 million five-year term loan A to the credit facilities, compared to prior talk of $2.1 billion equivalent U.S. and euro term loan B debt, according to a market source.

Pricing on the U.S. and euro term loan B debt was revised to Libor/Euribor plus 500 bps, the wide end of most recent talk of Libor/Euribor plus 475 bps to 500 bps and higher than initial talk in the range of Libor/Euribor plus 425 bps to 450 bps, and the original issue discount on the U.S. term loan B was changed to 96 and the discount on the euro term loan B was modified to 97, both from revised talk of 98 and initial talk of 99, the source said.

As before, the term loan B debt has a 0% floor.

The new term loan A is priced at Libor plus 425 bps with a 0% floor and a discount of 98.5.

The company’s credit facilities also include a $400 million revolver.

Commitments are due on Tuesday, the source added.

BofA Securities, Inc., Goldman Sachs, Morgan Stanley, Barclays, Credit Suisse, Deutsche Bank, HSBC, Mizuho, NatWest, Nomura and RBC are leading the deal, with BofA left on the U.S. and Goldman left on the euro.

Proceeds will be used to help fund the buyout of the data, research, consulting and analytics company by Bain Capital from WPP.

Ellie Mae talk

Ellie Mae held its lender call on Friday and launched a fungible $350 million incremental first-lien term loan due April 17, 2026 with original issue discount talk of 99, according to a market source.

The incremental term loan is priced at Libor plus 400 bps with a 0% Libor floor, and has 101 soft call protection for six months, the source said.

Commitments are due at 3 p.m. ET on Oct. 25.

Jefferies LLC, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used to fund an acquisition.

Ellie Mae is a Pleasanton, Calif.-based cloud-based platform provider for the mortgage finance industry.

WorldStrides guidance

WorldStrides came out with talk of Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99 on its fungible $50 million add-on senior secured term loan B (B1/B-) due December 2024 that launched with a morning lender call, a market source remarked.

The add-on term loan and the existing term loan B will get 101 soft call protection for six months, and pricing on the existing loan will be increased from Libor plus 375 bps to match the add-on term loan pricing, the source added.

Commitments are due on Oct. 25.

Goldman Sachs Bank USA is leading the deal, which will be used for mergers and acquisitions.

WorldStrides is a Charlottesville, Va.-based provider of educational student travel.

Jane Street on deck

Jane Street Group will hold a lender call at 1:30 p.m. ET on Monday to launch a $2 billion first-lien term loan B, according to a market source.

Morgan Stanley Senior Funding Inc., BofA Securities, Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing term loan B and raise additional proceeds for trading capital and general corporate purposes.

Jane Street is a quantitative trading firm with a focus on technology and collaborative problem solving.

Edgewood joins calendar

Edgewood Partners scheduled a lender call for Wednesday to launch a $140 million incremental first-lien term loan, a market source said.

Antares Capital and Golub Capital are leading the first-lien deal.

The company is also getting a $35 million incremental second-lien term loan, the source added.

The new debt will be used with funding under an existing $99 million first-lien delayed-draw term loan and $50 million second-lien delayed-draw term loan to finance an acquisition.

Edgewood Partners, a portfolio company of Oak Hill Capital Partners, is a San Francisco-based insurance, risk management and employee benefits brokerage and consulting firm.

NN coming soon

NN set a bank meeting for 10 a.m. ET on Tuesday to launch an $875 million first-lien term loan B (B), according to a market source.

The company’s $995 million of credit facilities also include a $120 million ABL revolver.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt.

NN is a Charlotte, N.C.-based manufacturer and supplier of high precision metal bearing components, industrial plastic and rubber products and precision metal components.

Belron readies deal

Belron will hold a lender call on Monday to launch a €700 million to €750 million equivalent U.S. seven-year term loan B and a fungible €100 million to €150 million add-on euro term loan due November 2024, a market source remarked.

Talk on the U.S. term loan is Libor plus 250 bps with a 0% Libor floor and talk on the euro term loan is Euribor plus 275 bps with a 0% floor, with both tranches having 101 soft call protection for six months.

Commitments are due on Oct. 25, the source added.

BofA Securities, Inc., J.P. Morgan Securities LLC, ING, BNP Paribas Securities Corp., Barclays, Fifth Third Bank, Goldman Sachs, KBC and Citizens Bank are leading the deal, with BofA left on the U.S. loan and JPMorgan left on the euro loan. JPMorgan is the administrative agent.

The loans will be used to refinance existing debt and fund a dividend.

Belron is a United Kingdom-based operator in the vehicle glass repair and replacement market.

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