Meredith, SMG, SAIC, Woodford Express, St. George’s, Infoblox, U.S. Anesthesia set talk

By Sara Rosenberg

New York, Jan. 4 – In the primary market on Thursday, Meredith Corp., SMG Holdings Inc. (Stadium Management Group), Science Applications International Corp. (SAIC), Woodford Express LLC, St. George’s University, Infoblox Inc. and U.S. Anesthesia Partners all released price talk with launch.

Furthermore, Arby’s Restaurant Group Inc. (IRB Holding Corp.), Prometric and Spectrum Plastics Group joined the near-term primary calendar.

Meredith discloses guidance

Meredith held its bank meeting on Thursday, launching its $1.8 billion seven-year covenant-light term loan B at talk of Libor plus 325 basis points with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The Des Moines-based media and marketing company’s $2.15 billion of senior secured credit facilities (Ba2/BB) also include a $350 million five-year revolver.

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

RBC Capital Markets, Credit Suisse Securities (USA) LLC, Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to help fund the acquisition of Time Inc., a New York-based media company, for $18.50 per share in an all-cash transaction valued at $2.8 billion and to refinance existing debt.

The company also plans to fund the transaction with senior unsecured notes, which are backed by a commitment for a $1.4 billion one-year bridge loan and a $650 million preferred equity commitment from Koch Equity Development.

Closing is expected this quarter, subject to customary conditions and regulatory approvals, including the tender of a majority of the outstanding shares of Time Inc. common stock.

Pro forma leverage is expected at 2.9 times, including expected synergies.

SMG launches

SMG Holdings released price talk on its $395 million seven-year first-lien covenant-light term loan (B+) and $200 million eight-year second-lien covenant-light term loan (CCC+) in connection with its lender call during the session, a market source remarked.

Talk on the first-lien term loan is Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 750 bps with a 0% Libor floor and a discount of 99, the source continued.

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 $650 million of credit facilities also include a $55 million revolver (B+).

SMG lead bank

Jefferies LLC, Nomura and Macquarie Capital (USA) Inc. are leading SMG’s credit facilities, with Jefferies the left lead on the first-lien and Nomura the left lead on the second-lien.

Commitments are due on Jan. 16, the source added.

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.

Science Applications details

Science Applications International held its call in the morning, launching $1,244,000,000 of senior secured credit facilities to investors, according to a market source.

The facilities include a $401 million covenant-light term loan B due May 4, 2022 talked at Libor plus 200 bps to 225 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, the source said.

The company is also seeking a $200 million revolver due Aug. 23, 2021 and a $643 million term loan A due Aug. 23, 2021, both talked with a grid based on total leverage that ranges from Libor plus 125 bps to 200 bps with a 0% Libor floor. Old money is being offered an original issue discount of 5 bps and new money is being offered a discount of 20 bps.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, PNC Bank, SunTrust Robinson Humphrey Inc., U.S. Bank and Wells Fargo Securities LLC are leading the deal.

Science Applications repricing

Proceeds from Science Applications’ credit facilities will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0.75% Libor floor, and an existing revolver and term loan A down from a grid that ranges from Libor plus 150 bps to 225 bps with a 0% Libor floor.

Cashless roll commitments for the term loan B are due at 5 p.m. ET on Jan. 11, new money commitments for the term loan B are due at noon ET on Jan. 12, and commitments for the revolver and term loan A are due at noon ET on Jan. 18, the source added.

Closing is expected on Jan. 26.

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.

Woodford reveals talk

Woodford Express came out with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $364 million seven-year term loan B (B2/B+) that launched with a morning call, a market source said.

The company’s $389 million of senior secured credit facilities also include a $25 million five-year revolver.

Commitments are due on Jan. 18, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repay an existing credit facility, fund a distribution, fund a capex reserve, fund a debt service reserve 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.

St. George’s holds call

St. George’s University surfaced in the morning with plans to hold a lender call at 11 a.m. ET on Thursday to launch a $672.8 million term loan B due July 6, 2022 talked at Libor plus 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Jan. 11, the source said.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 425 bps with a 1% Libor floor.

St. George’s is a Grenada, West Indies-based educational institution providing students with medical degrees as well as veterinary and liberal arts graduate and undergraduate degrees.

Infoblox releases terms

Infoblox held its call in the morning, launching to investors a $497.5 million first-lien term loan talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due on Wednesday, the source added.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 500 bps with a 1% Libor floor.

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

U.S. Anesthesia floats OID

U.S. Anesthesia Partners announced original issue discount talk of 99.75 for its fungible $190 million add-on senior secured term loan B (B1/B) due June 23, 2024 that launched with an afternoon call, a market source said.

The add-on term loan is priced in line with the existing term loan at Libor plus 325 bps with a step-down to Libor plus 300 bps at 4 times net first-lien leverage and a 1% Libor floor.

Commitments are due on Jan. 12, the source added.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., BMO Capital Markets, Capital One and Antares Capital are leading the deal 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.

Arby’s timing emerges

In more primary news, Arby’s Restaurant Group scheduled a bank meeting for Monday to launch its previously announced $1,575,000,000 seven-year term loan B, according to a market source.

Commitments are due at noon ET on Jan. 19, the source said.

Based on filings with the Securities and Exchange Commission, the company is also expected to get a $150 million revolver as part of its senior secured credit facilities.

Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used with $485 million of senior unsecured notes, up to $783 million in equity and cash on hand to fund the acquisition of Buffalo Wild Wings Inc. for $157.00 per share in cash in a transaction valued at about $2.9 billion, including net debt.

First-lien net leverage is 3.6 times and total net leverage is 4.5 times.

Closing is expected this quarter, subject to the approval of Buffalo Wild Wings shareholders, regulatory approvals and other customary conditions.

Arby’s, a Roark Capital Group portfolio company, is an Atlanta-based quick-service restaurant chain. Buffalo Wild Wings is a Minneapolis-based owner, operator and franchisor of Buffalo Wild Wings restaurants.

Prometric readies deal

Prometric set a bank meeting for 9:30 a.m. ET on Monday to launch $622.5 million of first-lien credit facilities (B), split between a $50 million five-year revolver and a $572.5 million seven-year first-lien term loan, a market source said.

In addition, the company is getting a $205 million pre-placed eight-year second-lien term loan, the source added.

Barclays, Deutsche Bank Securities Inc. and Nomura are leading the deal that will be used to help fund the buyout of the company by Baring Private Equity Asia and to pay related fees and expenses.

Prometric is a provider of technology-enabled testing and assessment services.

Spectrum Plastics on deck

Spectrum Plastics Group will hold a bank meeting in New York on Tuesday to launch $680 million of credit facilities, according to a market source.

The facilities consist of a $45 million five-year revolver, a $430 million seven-year covenant-light first-lien term loan, a $45 million seven-year delayed-draw first-lien term loan and a $160 million eight-year second-lien term loan, the source said.

Antares Capital is leading the deal that will be used to help fund the acquisition of the company by AEA Investors from Kohlberg & Co.

Spectrum Plastics is an Atlanta-based designer, developer and manufacturer of highly-engineered polymer-based solutions used in medical and other specialty end-markets.

© 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.