Barracuda Networks, SMG, Henry reveal revisions; St. George’s, U.S. Anesthesia accelerated

By Sara Rosenberg

New York, Jan. 10 – Due to strong demand, on Wednesday, Barracuda Networks Inc. lowered pricing and tightened issue prices on its first-and second-lien term loans, and SMG Holdings Inc. (Stadium Management Group) moved some funds between its term loans and revised spreads and original issue discounts.

In more happenings, Henry Co. LLC (HNC Holdings Inc.) modified the issue price on its add-on term loan, and St. George’s University and U.S. Anesthesia Partners moved up the commitment deadlines on their loan transactions.

Also, Xperi Corp. came out with details on its repricing transaction and Global University Systems (GUS Finco II) released original issue discount guidance on its U.S. and euro term loans.

Additionally, Deason 74 Minerals LP, Phoenix Services International LLC and Digicel International Finance Ltd. joined this week’s primary calendar.

Barracuda changes emerge

Barracuda Networks cut pricing on its $555 million first-lien term loan (B2/B-/BB-) to Libor plus 325 basis points from talk in the range of Libor plus 350 bps to 375 bps and modified the original issue discount to 99.75 from 99.5, while leaving the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

Regarding the company’s $205 million second-lien term loan (Caa2/CCC+/CCC+), the spread was trimmed to Libor plus 725 bps from talk in the range of Libor plus 750 bps to 775 bps, and the discount was moved to 99.5 from 99, the source said. This tranche still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

The term loans continue to include a ticking fee of half the margin from days 45 to 75 and the full margin thereafter.

The company’s $835 million of senior secured credit facilities also provide for a $75 million revolver (B2/B-/BB-).

Barracuda being acquired

Proceeds from Barracuda Networks’ credit facilities will be used with about $740 million in equity to fund its buyout by Thoma Bravo LLC for $27.55 in cash per share. The transaction is valued at $1.6 billion.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the bank deal.

Recommitments were due by the end of the day on Wednesday, the source added.

Closing on the buyout is expected before the company’s fiscal year-end of Feb. 28, 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.

SMG reworked

SMG Holdings lifted its seven-year first-lien covenant-light term loan to $415 million from $395 million, reduced pricing to Libor plus 325 bps from Libor plus 350 bps and changed the original issue discount to 99.875 from 99.5, a market source said. The tranche still has a 0% Libor floor and 101 soft call protection for six months.

Furthermore, the company scaled back its eight-year second-lien covenant-light term loan to $180 million from $200 million, lowered pricing to Libor plus 700 bps from Libor plus 750 bps and tightened the discount to 99.75 from 99, while leaving the 0% Libor floor and call protection of 102 in year one and 101 in year two unchanged, the source continued.

The company’s $650 million of credit facilities also include a $55 million revolver.

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

Jefferies LLC, Nomura and Macquarie Capital (USA) Inc. are leading the deal that will help fund the buyout of the company by Onex Corp., with Jefferies left on the first-lien and Nomura left on the second-lien.

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.

Henry tweaks deal

Henry Co. changed the issue price on its fungible $115 million add-on covenant-light term loan B (B2/B) due October 2023 to par from 99.75 and accelerated the commitment deadline to noon ET on Friday from Tuesday, a market source remarked.

As before, the add-on term loan and the repricing of the company’s existing $316.8 million covenant-light term loan B (B2/B) due October 2023 are priced at Libor plus 400 bps with a 1% Libor floor, the repricing is offered at par and all of the term loan debt is getting 101 soft call protection for six months.

RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Antares Capital and Nomura are leading the deal.

The add-on loan will be used to fund the acquisition of Fortifiber LLC, a Fernley, Nev.-based manufacturer of weather-resistive moisture management systems, including housewrap, building paper and flashing tapes, and the repricing will take the existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Henry, an American Securities portfolio company, is an El Segundo, Calif.-based developer and manufacturer of roofing products and other building envelope applications.

St. George’s moves deadline

St. George’s University accelerated the commitment deadline on its $672.8 million term loan B due July 6, 2022 to 5 p.m. ET on Wednesday from noon ET on Thursday, according to a market source.

Talk on the loan is Libor plus 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC. Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding 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.

U.S. Anesthesia accelerated

U.S. Anesthesia Partners moved up the commitment deadline on its fungible $190 million add-on senior secured term loan B (B1/B) due June 23, 2024 to noon ET on Thursday from Friday, 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.

Original issue discount on the add-on term loan is 99.75.

Allocations are expected on Friday, 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.

Xperi discloses details

Also in the primary market, Xperi held its lender call on Wednesday, launching its $596 million covenant-light term loan B (Ba3/BB-) due December 2023 at talk of Libor plus 250 bps with a 0.75% 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. 18, the source said.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 0.75% Libor floor.

Xperi, formerly known as Tessera Holding Corp., is a San Jose, Calif.-based licenser of technologies and intellectual property.

Global University OID talk

Global University Systems came out with original issue discount talk of 99.5 on its $150 million seven-year term loan B and €300 million seven-year term loan B that launched with a meeting in London during the session, a market source remarked.

As reported earlier, price talk on the U.S. and euro loans is Libor/Euribor plus 425 bps with a 0% floor.

The company’s credit facilities also include a minimum £150 seven-year term loan B talked at Libor plus 450 bps with a 0% Libor floor and a £75 million six-year revolver talked at Libor plus 375 bps with a 0% Libor floor.

All of the term loans have 101 soft call protection for six months.

Commitments are due on Jan. 24.

HSBC is the global coordinator on the deal (//BB-), and Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs and BMO Capital Markets are bookrunners and mandated lead arrangers.

Proceeds will be used by the Amsterdam-based private higher education provider to refinance existing debt, including the Lake Bridge International plc senior secured notes due 2020, and to fund an acquisition.

Deason 74 on deck

Deason 74 Minerals set a lender call for 11 a.m. ET on Thursday to launch a $300 million six-year covenant-light term loan B, according to a market source.

Bank of America Merrill Lynch is leading the deal that will be used to fund a special distribution to parent, Cathexis Holdings GP, and for other general corporate purposes.

Deason 74 holds non-operating royalty and mineral interests in the Eagle Ford Shale in South Texas.

Phoenix coming soon

Phoenix Services scheduled a lender call for 10:30 a.m. ET on Friday to launch $530 million of credit facilities, a market source remarked.

The facilities consist of a $65 million revolver and a $465 million first-lien term loan, the source added.

Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Apollo Global Management from Olympus Partners.

Phoenix Services is a provider of outsourced slag handling, metal reclamation and other complementary services to steel mill customers.

Digicel joins calendar

Digicel surfaced with plans to hold a lender call at 10:30 a.m. ET on Thursday to launch a new loan transaction to current and prospective lenders, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

Digicel is a Hamilton, Bermuda-based provider of communication services in the Caribbean and South Pacific regions.

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