Laureate finalizes pricing on $1.24 billion loan; Lucid Energy launches $900 million seven-year deal

By Paul A. Harris

Portland, Ore., Jan. 23 – In Tuesday's leveraged loan market Laureate Education Inc. set pricing on its $1,238,000,000 senior secured covenant-light term loan B.

And Lucid Energy Group II Borrower LLC launched its $900 million seven-year term loan.

Laureate finalizes $1.24 billion loan

Laureate Education set pricing on its $1,238,000,000 senior secured covenant-light term loan B due April 26, 2024 at Libor plus 350 basis points, the tight end of talk.

The loan (B2/B+) was launched at Libor plus 350 bps to 375 bps.

There is a 1% Libor floor and the issue price is par.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, Macquarie Capital (USA) Inc., J.P. Morgan Securities LLC, BMO Capital Markets Corp., Goldman Sachs Bank USA, KeyBanc Capital Markets LLC and Morgan Stanley Senior Funding Inc. are the joint lead arrangers on the deal. Citi is left lead and the administrative agent.

Proceeds will be used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor.

Lucid Energy talk

Lucid Energy launched its $900 million seven-year term loan at a bank meeting on Tuesday, setting talk at Libor plus 350 basis points and a 99.5 original issue discount.

Commitments are due by Feb. 6.

Jefferies is the arranger.

Proceeds will be used to fund the acquisition of the company by Riverstone Holdings and Goldman Sachs Merchant Banking Division and to finance system expansion.

Spectrum Plastics upsizes, tightens

Spectrum Plastics Group increased the size of its planned new term loans and tightened pricing.

The seven-year covenant-light first-lien term loan was expanded to $455 million from $430 million originally, and pricing was lowered to Libor plus 325 basis points from talk of Libor plus 350 bps. The original issue discount was narrowed to 99.875 from talk of 99.5.

The eight-year second-lien term loan was upsized to $175 million from $160 million, and pricing was cut to Libor plus 700 bps from Libor plus 750 bps. The OID was tightened to 99.5 from 99.

No change was made to the size of a $45 million seven-year delayed-draw first-lien term loan.

All the loans continue to have a 1% Libor floor.

Recommitments were due by the end of Tuesday, the source said.

Antares Capital, KeyBanc Capital Markets, Bank of Ireland and Citizens are the joint lead arrangers on the deal.

Proceeds will be used to help fund the acquisition of the company by AEA Investors from Kohlberg & Co.

Flexera shifts funds, tightens talk

Flexera Software LLC moved $25 million of funds from its eight-year second-lien term loan to its seven-year first-lien term loan and narrowed talk on both tranches.

The first-lien loan (B1/B-) was increased to $550 million from $525 million and pricing was reduced to Libor plus 325 basis points from talk of Libor plus 350 bps to 375 bps while the original issue discount was tightened to 99.75 from 99.5.

At the same time, the second-lien loan (Caa1/CCC+) was reduced to $125 million from $150 million and pricing cut to Libor plus 725 bps from talk of Libor plus 750 bps to 775 bps. The offer price for the second-lien piece was increased to 99.5 from 99.

Both tranches continue to have a 1% Libor floor.

Jefferies LLC, Barclays and Bank of America Merrill Lynch are the bookrunners on the deal.

Changes in orders are due by 12 p.m. ET on Jan. 24, the source said.

Proceeds will be used with equity to refinance existing debt and fund the purchase of a minority equity stake in the company by TA Associates.

PetVet sets talk

PetVet Care Centers, LLC set price talk on its $860 million of planned new term loans in four tranches.

A $470 million first-lien term loan and a $125 million first-lien delayed-draw term loan, both with seven-year maturities, are talked at Libor plus 300 basis points to Libor plus 325 bps with a 0% Libor floor and an original issue discount of 99.5.

A $215 million second-lien term loan and a $50 million second-lien delayed-draw term loan, both with eight-year maturities, are talked at Libor plus 700 bps with a 0% Libor floor and an original issue discount of 99.

Commitments are due on Feb. 1, the source said.

Jefferies and KKR Capital Markets are leading the deal with Jefferies on the left.

Proceeds will be used to help fund the buyout of the company by KKR from Ontario Teachers’ Pension Plan, L Catterton and other existing shareholders.

Safe Fleet narrows talk

Safe Fleet Holdings LLC narrowed price talk on its $410 million seven-year first-lien term loan and $190 million eight-year second-lien term loan.

The first-lien term loan (B2/B) is now talked at Libor plus 300 basis points with a step down to Libor plus 275 bps at 6.25x net total leverage.

The coupon was previously talked at Libor plus 325 bps.

In addition, the original issue discount was tightened to 99.75 from 99.5.

The loan continues to have a 1% Libor floor.

Safe Fleet is now talking its second-lien term loan (Caa2/CCC+) at Libor plus 675 bps, down from Libor plus 725 bps originally.

The OID is narrowed to 99.5 from 99, the source said.

Again, the loan continues to have a 1% Libor floor.

Reconfirmations were due by 12 p.m. ET on Tuesday.

Goldman Sachs Bank USA, UBS Investment Bank and Morgan Stanley Senior Funding Inc. are the leads on the deal, with Goldman the left lead on the first-lien and UBS the left lead on the second-lien.

Proceeds will be used to help fund the buyout of the company by Oak Hill Capital Partners from the Sterling Group.

GlobalLogic talks 375-400 bps

GlobalLogic Inc. is in the market with a $347.4 million repricing of its term loan maturing in 2022 (expected ratings B1/B+).

Price talk on the loan is Libor plus 375 basis points to 400 bps with a 1% Libor floor and a par issue price.

Commitments are due on Friday.

J.P. Morgan Securities LLC is the lead.

The San Jose, Calif.-based digital product engineering services provider initially placed $310 million of the loan with a 450 bps Libor spread and a 1% Libor floor at an original issue discount of 99 in December 2016 and subsequently did a $35 million add-on also at Libor plus 450 bps at 99.5 in February 2017.

Victory Capital talk 300 to 325 bps

Victory Capital Holdings, Inc. set price talk for its $325 million term loan B at Libor plus 300 basis points to 325 bps and an original issue discount of 99.5.

RBC Capital Markets and JPMorgan are the joint lead arrangers.

Commitments are due by 12 p.m. ET on Feb. 6.

Proceeds from the new facility along with funds from an initial public offering will be used to refinance the company’s existing debt.

Exactech talk 375 to 400 bps

Exactech, Inc. launched its $235 million seven-year senior secured covenant-light term loan B with price talk of Libor plus 375 basis points to 400 bps.

The loan has a 1% Libor floor and is being offered at 99.5.

Goldman Sachs is left lead and joined as a lead arranger by BofA Merrill Lynch, RBC Capital Markets, HSBC and SMBC Nikko.

Proceeds will be used to help fund the acquisition of the company by TPG Capital.

Arclin launches repricing, million add on

Arclin launched a repricing of its $478 million term loan due February 2024 (B2/B+) and a $40 million incremental term loan (B2/B+) with a lender call on Tuesday.

Talk on the loans is Libor plus 350 basis points to 375 bps.

The repriced term loan is being offered at par while the incremental loan, which has the same maturity, is offered at 99.75.

Both have a 1% Libor floor and 101 soft call protection for six months.

Credit Suisse is the lead on the deal.

Commitments are due on Jan. 30.

The repricing will reduce the coupon from Libor plus 425 bps at present.

Axilone guides €355 million loans

Axilone set price talk for €355 million of term loan debt it is attempting to syndicate.

A €265 million seven-year senior secured first-lien term loan is talked at Euribor plus 400 basis points with a 0% Euribor floor and an original issue discount of 99.5.

A €90 million 7.5-year senior secured second-lien term loan is talked at Euribor plus 775 bps atop a 1% Euribor floor at 98.

Commitments are due Feb. 6.

Lead arranger Barclays is the administrative agent. RBC Capital Markets LLC and Credit Suisse Securities (USA) LLC are also lead arrangers.

Proceeds will be used to finance the acquisition of the Ileos Group SAS and Ileos USA by Citic Capital Partners.

MSX raises add-on to €100 million

MSX International increased its add-on first-lien term loan B due January 2024 to €100 million, reduced pricing and expanded the transaction to include a repricing of the existing €327.9 million term loan B.

The company had originally been planning to obtain an €85 million incremental term loan B with terms in line with the existing debt.

With the changes announced Tuesday, the upsized incremental loan will be priced at Euribor plus 475 basis points with a 0% floor for Euribor and a price of par.

In addition, MSX is repricing the existing term B on the same terms.

Commitments are due at 5 a.m. ET on Jan. 25.

Previously the add-on was talked at Euribor plus 550 bps with a 0% floor and an offer price of par, matching current pricing on the term loan B.

HSBC and Nomura are the bookrunners on the deal. RBC is the agent.

Proceeds from the incremental loan will be used to fund an acquisition and to pay related fees and expenses. The additional funds from the upsizing will be used to repay revolving credit facility borrowings.

Convergint moves up timing

Convergint Technologies (Gopher Sub Inc.) moved up timing on its new $861 million credit facility.

Commitments are now due at 5 p.m. ET Thursday, moved ahead from the previous deadline of Jan. 31.

As reported, the deal features a $575 million seven-year first-lien term loan (B2/B) that is talked at Libor plus 350 basis points with a 0.75% Libor floor and an original issue discount of 99.5.

Of the total loan, $40 million is delayed-draw and $535 million funded.

A $211 million eight-year second-lien term loan (Caa2/CCC) is talked at Libor plus 750 bps with a 0.75% Libor floor and OID of 99, the source said.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Jefferies LLC, RBC Capital Markets and Bank of America Merrill Lynch are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Ares Management.

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