SMG Holdings, Woodford launches modified to calls; Barracuda Networks releases talk

By Sara Rosenberg

New York, Jan. 3 – In the primary market on Wednesday, SMG Holdings Inc. (Stadium Management Group) and Woodford Express LLC revised their upcoming credit facilities launches to calls from bank meetings as a result of expected inclement weather in New York.

Also, Barracuda Networks Inc. disclosed price talk on its first- and second-lien term loans in connection with its bank meeting, and U.S. Anesthesia Partners, Science Applications International Corp. and Infoblox Inc. joined this week’s calendar.

SMG switches to call

SMG Holdings changed the Thursday launch for its $650 million of credit facilities to a call from a physical bank meeting due to weather conditions, according to a market source.

As previously reported, the facilities consist of a $55 million revolver, a $395 million seven-year first-lien term loan that has 101 soft call protection for six months and a $200 million eight-year second-lien term loan that has call protection of 102 in year one and 101 in year two.

Jefferies LLC, Nomura and Macquarie Capital (USA) Inc. are leading the deal, with Jefferies the left lead on the first-lien and Nomura the left lead on the second-lien.

Proceeds will be used to help fund the buyout of the company by Onex Corp.

Closing is expected early this year, subject to customary conditions and regulatory approvals.

SMG is a Philadelphia-based manager of convention centers, stadiums, arenas, theaters, performing arts centers and other venues.

Woodford opts for dial-in

Also because of bad weather in the New York area, Woodford Express revised the Thursday launch of its $389 million of senior secured credit facilities to a dial-in call at 10:30 a.m. ET in place of a bank meeting at 10:30 a.m. ET, a market source remarked.

The facilities consist of a $25 million revolver and a $364 million term loan B.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repay the balance on the company’s existing revolver, fund a distribution, fund certain reserve accounts and pay transaction-related fees and expenses.

Woodford Express, a portfolio company of Quantum Energy Partners, is a natural gas gathering and processing system in the core of the SCOOP play of South Oklahoma’s Woodford Shale and Springer Shale.

Barracuda reveals guidance

In more primary happenings, Barracuda Networks held its bank meeting on Wednesday and announced price talk on its $555 million first-lien term loan (B-/BB-) and $205 million second-lien term loan (CCC+/CCC+), according to a market source.

The first-lien term loan is talked at Libor plus 350 basis points to 375 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 750 bps to 775 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

The debt has a ticking fee of half the margin from days 45 to 75 and the full margin thereafter.

Barracuda Networks’ $835 million of senior secured credit facilities also include a $75 million revolver (B-/BB-).

Commitments are due on Jan. 17, the source added.

Barracuda leads

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading Barracuda Networks’ credit facilities.

The loans, along with about $740 million in equity, will be used to fund the buyout of the company by Thoma Bravo LLC for $27.55 in cash per share. The transaction is valued at $1.6 billion.

Closing is expected before the company’s fiscal year-end of Feb. 28, 2018, subject to shareholder approval, regulatory approvals and other customary conditions.

Barracuda Networks is a Campbell, Calif.-based provider of cloud-enabled security and data protection solutions.

U.S. Anesthesia readies loan

U.S. Anesthesia Partners scheduled a lender call for 2 p.m. ET on Thursday to launch a $190 million add-on senior secured term loan B, according to a market source.

Goldman Sachs Bank USA is leading the debt that will be used for acquisitions.

U.S. Anesthesia Partners is a Fort Lauderdale, Fla.-based physician-service organization that focuses on providing anesthesia and pain management services to patients.

Science Applications on deck

Science Applications International will hold a lender call at 11 a.m. ET on Thursday to launch a new loan to current and prospective lenders, a market source remarked.

Citigroup Global Markets Inc. is leading the transaction.

Science Applications is a McLean, Va.-based technology integrator providing full life-cycle services and solutions in the technical, engineering, and enterprise information technology markets.

Infoblox joins calendar

Infoblox set a loan lender call for 11 a.m. ET on Thursday for loan lenders, according to a market source.

Bank of America Merrill Lynch is leading the deal.

Infoblox is a Santa Clara, Calif.-based provider of Actionable Network Intelligence to enterprise, government and service provider customers.

Spectrum Brands steady

Moving to the secondary market, Spectrum Brands Holdings Inc.’s term loan was unchanged on Wednesday at par ½ bid, par ¾ offered after the company revealed plans to explore strategic options for its Global Batteries & Appliances businesses with the intention to sell the units during this year, a trader remarked.

The trader explained that timing of the potential sale is too unclear to affect the current term loan trading levels.

Spectrum Brands said that it has received multiple inquiries from prospective buyers for its Global Batteries & Appliances businesses and are in active discussions with several.

The company also disclosed in its news release that financial flexibility from the planned divestitures will allow for debt reduction, reinvestment in core businesses both organically and through acquisitions, and the repurchase of shares.

Spectrum Brands is a Middleton, Wis.-based diversified consumer products company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.