Informatica, SAIC, DexKo break; Crown revisions emerge; Arby’s, Prometric accelerated

By Sara Rosenberg

New York, Jan. 16 – Informatica Corp. firmed the issue price on its incremental euro term loan at the tight end of guidance and added pricing step-downs to its U.S. and euro term loans, and Science Applications International Corp. (SAIC) set the spread on its term loan B at the low side of talk, and then these two deals freed to trade on Tuesday.

Also, DexKo Global Inc. finalized pricing on its euro term loans at the tight side of guidance and revised the issue price on its incremental euro term loan, and then its U.S. term loan made its way into the secondary market.

In more happenings, Crown Holdings Inc. trimmed spreads and revised issue prices on its U.S. and euro term loans, and Arby’s Restaurant Group Inc. (IRB Holding Corp.) and Prometric moved up the commitment deadlines on their loans.

Furthermore, Flexera Software LLC, AMG Advanced Metallurgical Group NV, Vizient Inc., Harbor Freight Tools USA Inc., Laureate Education Inc. and Certara released price talk with launch.

Additionally, Convergint Technologies (Gopher Sub Inc.), Trico Group LLC, FeeCo and Vistage Worldwide Inc. joined this week’s primary calendar, and a bank meeting date emerged for Weld North Education.

Informatica updated, trades

Informatica finalized the issue price on its €200 million incremental covenant-light term loan (B2/B) due Aug. 6, 2022 at par, the tight end of the 99.75 to par talk, according to a market source.

The company also added a 25 bps step-down to its repriced $1,424,000,000 covenant-light term loan (B2/B) due Aug. 6, 2022 and repriced €242.6 million covenant-light term loan (B2/B) due Aug. 6, 2022 when corporate family ratings are B2/B or better, the source said.

Pricing on the U.S. term loan remained at Libor plus 325 basis points with a 0% Libor floor and a par issue price, and pricing on the euro term loan debt is still Euribor plus 350 bps with a 0% floor, with the repriced euro loan having a par issue price. All of the term loans continued to include 101 soft call protection for six months.

Recommitments were due at noon ET on Tuesday, and then the U.S. term loan began trading later in the day, with levels quoted at par ¼ bid, par ½ offered, a trader added.

Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal that will be used to reprice the company’s existing U.S. term loan down from Libor plus 350 bps with a 1% Libor floor and euro term loan from Euribor plus 350 bps with a 1% floor, and the incremental loan will be used to repay a portion of the existing U.S. term loan, bringing the balance down to $1,424,000,000.

Informatica is a Redwood City, Calif.-based provider of enterprise data integration software and services.

SAIC sets spread, breaks

Science Applications International firmed pricing on its $401 million covenant-light term loan B due May 4, 2022 at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, a market source remarked.

The term loan B still has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

After terms finalized, the B loan made its way into the secondary market and levels were quoted at par 3/8 bid, par 7/8 offered, another source added.

The company’s $1,244,000,000 of senior secured credit facilities also include a $200 million revolver due Aug. 23, 2021 and a $643 million term loan A due Aug. 23, 2021 with pricing subject to a grid based on total leverage that ranges from Libor plus 125 bps to 200 bps with a 0% Libor floor.

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 that 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.

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.

DexKo tweaked

DexKo set pricing on its €110 million incremental first-lien term loan due July 24, 2024, of which €90 million is delayed-draw, and repricing its existing €349 million first-lien term loan due July 24, 2024 at Euribor plus 375 bps, the low end of the Euribor plus 375 bps to 400 bps talk, and tightened the issue price on the euro incremental term loan to par from 99.75, a market source said.

The euro term loan debt still has a 0% floor.

The company is also getting an $80 million incremental first-lien term loan due July 24, 2024, of which $50 million is delayed-draw, and repricing its existing $569 million first-lien term loan due July 24, 2024, and pricing on these tranches remained at Libor plus 350 bps with a 1% Libor floor.

The U.S. incremental term loan and repriced U.S. and euro term loans have a par issue price, all of the term loans include 101 soft call protection for six months, and the delayed-draw tranches have a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

Previously in syndication, the issue price on the U.S. incremental term loan was modified from 99.75.

DexKo hits secondary

With final terms in place, DexKo’s U.S. term loans freed up for trading, with the repriced term loan B quoted at par ¾ bid, 101¼ offered and the incremental term loan B quoted at par ¼ bid, par ¾ offered, another source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are leading the loans (B1/B).

The add-on term loans will be used to fund tuck-in acquisitions, the U.S. repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor and the euro repricing will take the existing loan down from Euribor plus 450 bps with a 0% floor.

DexKo is a Novi, Mich.-based supplier of highly engineered running gear technology, chassis assemblies and related components.

Crown Holdings flexes

Back in the primary market, Crown Holdings cut pricing on its $1.25 billion seven-year covenant-light senior secured term loan B (Baa2/BB+) to Libor plus 200 bps from Libor plus 225 bps and on its €750 million seven-year covenant-light senior secured term loan B (Baa2/BB+) to Euribor plus 250 bps from Euribor plus 275 bps, and changed the issue price on both term loans to par from 99.75, a market source remarked.

As before, the term loans have a 0% floor, 101 soft call protection for six months and a ticking fee of half the spread from days 46 to 75 and the full spread thereafter.

Commitments are due at 5 p.m. ET on Thursday for the U.S. term loan B and at 5 p.m. GMT on Thursday for the euro term loan B, the source added.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., Mizuho, the Bank of Nova Scotia, Santander, TD Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used with $750 million and €935 million in notes to fund the acquisition of Signode Industrial Group Holdings (Bermuda) Ltd. from the Carlyle Group in a cash transaction valued at $3.91 billion, subject to customary closing adjustments.

Closing is expected this quarter, subject to review by various competition authorities.

Crown Holdings is a Philadelphia-based provider of consumer packaging. Signode is a Glenview, Ill.-based provider of transit packaging systems and solutions.

Arby’s revises deadline

Arby’s accelerated the commitment deadline on its $1,725,000,000 of senior secured credit facilities (B1/B) to 5 p.m. ET on Wednesday from noon ET on Friday, according to a market source.

The facility consists of a $150 million revolver, and a $1,575,000,000 seven-year term loan B talked at Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

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 accelerated

Prometric moved up the commitment deadline on its $572.5 million seven-year covenant-light first-lien term loan (B1/B) to 5 p.m. ET on Wednesday from 5 p.m. ET on Monday, a market source remarked.

Talk on the term loan is Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $827.5 million of credit facilities also include a $50 million five-year revolver (B1/B) and a $205 million pre-placed eight-year second-lien term loan.

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.

Flexera reveals talk

Also in the primary market, Flexera held its bank meeting on Tuesday and announced price talk on its $525 million seven-year first-lien term loan and $150 million eight-year second-lien term loan, according to a market source.

The first-lien term loan is talked at Libor plus 350 bps 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 Itasca, Ill.-based software company’s $700 million of senior secured credit facilities also include a $25 million five-year revolver.

Commitments are due at noon ET on Jan. 25, the source added.

Jefferies LLC, Barclays and Bank of America Merrill Lynch are leading the deal that will be used with equity to refinance existing debt and fund the purchase of a minority equity stake in the company by TA Associates.

Ontario Teachers’ Pension Plan will remain the majority owner of the company.

Closing is expected in February.

AMG floats guidance

AMG Advanced Metallurgical Group came out with talk of Libor plus 300 bps to 325 bps with no Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $300 million seven-year covenant-light term loan B that launched with an afternoon bank meeting, a market source remarked.

The company’s $500 million of senior secured credit facilities (B1/BB-) also include a $200 million five-year revolver.

Commitments are due on Jan. 29, the source added.

HSBC Securities (USA) Inc. and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt, to fund growth initiatives and for general corporate purposes.

AMG, which has corporate offices in Amsterdam and Wayne, Pa., is a producer and processor of specialty metals and mineral products.

Vizient terms surface

Vizient launched with a call its $1.05 billion term loan B (Ba3/BB-) due Feb. 13, 2023 at talk of Libor plus 275 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments/consents are due at 5 p.m. ET on Jan. 23, the source said.

Barclays is leading the deal that will be used to reprice an existing term loan B down from Libor plus 350 bps with a 1% Libor floor in tandem with a paydown occurring from a concurrent pro-rata deal.

Vizient is an Irving, Texas-based network of not-for-profit health care organizations.

Harbor Freight holds call

Harbor Freight Tools surfaced in the morning will plans to hold a lender call at 1 p.m. ET to launch a $2,161,000,000 covenant-light first-lien term loan (Ba3/BB-) due August 2023 talked at Libor plus 250 bps to 275 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing term loan priced at Libor plus 325 bps with a 25 bps step-down at less than 3x total net leverage and a 0.75% Libor floor.

Harbor Freight is a Camarillo, Calif.-based provider of tools and equipment.

Laureate seeks repricing

Laureate Education launched on its morning lender call a $1,238,000,000 senior secured covenant-light term loan B (B+) due April 26, 2024 talked at Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, Macquarie Capital (USA) Inc., J.P. Morgan Securities LLC, BMO Capital Markets, Goldman Sachs Bank USA, KeyBanc Capital Markets and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor.

Existing lender commitments are due at 5 p.m. ET on Monday and new money commitments are due at noon ET on Jan. 23, the source said.

Closing is expected on Jan. 30.

Laureate is a Baltimore-based network of degree-granting higher education institutions.

Certara launches incremental

Certara went out to lenders during the session with a fungible $25 million incremental covenant-light first-lien term loan due August 2024 that is talked with an original issue discount of 99.75 to par, a market source said.

The incremental loan is priced at Libor plus 400 bps with a 1% Libor floor, in line with the existing term loan, and has 101 soft call protection until February 2018.

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

Jefferies LLC is the left lead on the deal that will be used to fund an acquisition.

Certara is a Princeton, N.J.-based provider of technology-driven decision support solutions for drug development.

Convergint readies deal

Convergint Technologies scheduled a bank meeting for 1 p.m. ET in New York on Thursday to launch $861 million of credit facilities, according to a market source.

The facilities consist of a $75 million revolver, a $575 million seven-year first-lien term loan, of which $40 million is delayed-draw, and a $211 million eight-year second-lien term loan, the source said.

Both term loans have a 0.75% Libor floor, 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.

Commitments are due at 5 p.m. ET on Jan. 31, the source added.

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 leading the deal that will be used to help fund the buyout of the company by Ares.

Convergint is a service-based security systems integrator.

Trico on deck

Trico Group emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch $505 million of credit facilities, a market source remarked.

The facilities consist of an $80 million ABL revolver and a $425 million seven-year senior secured first-lien term loan.

Talk on the term loan is Libor plus 550 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year, the source continued.

Commitments are due on Jan. 26.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt.

Trico is a Rochester Hills, Mich.-based automotive aftermarket platform.

FeeCo joins calendar

FeeCo will hold a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch $727.5 million of term loans, split between a $517.5 million seven-year covenant-light first-lien term loan and a $210 million eight-year covenant-light second-lien term loan, a market source said.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Barclays, Jefferies LLC and CIBC are leading the deal that will be used to help fund the acquisition of 51% of FeeCo by Madison Dearborn Partners from AmTrust Financial Services Inc.

The transaction values FeeCo at $1.15 billion, plus up to an additional $50 million upon exit, subject to agreed thresholds.

FeeCo is formally borrowing the term loans via two indirect, wholly-owned domestic subsidiaries of Mayfield Holdings LLC, the source added.

Closing is expected in the first half of this year, subject to customary conditions and regulatory approvals.

FeeCo is an insurance-related fee revenue business.

Vistage coming soon

Vistage set a bank meeting for Thursday morning to launch $385 million of credit facilities, a market source remarked.

The facilities consist of a $25 million five-year revolver, a $260 million seven-year first-lien term loan B that has 101 soft call protection for six months and a $100 million eight-year second-lien term loan that has hard call protection of 102 in year one and 101 in year two, the source added.

Macquarie Capital (USA) Inc. is leading the deal.

Proceeds will be used to help fund the buyout of the company by Providence Equity Partners from TowerBrook Capital Partners.

Vistage is a San Diego-based for-profit membership organization of CEOs.

Weld North sets timing

Weld North Education scheduled a bank meeting for 10 a.m. ET in New York on Jan. 24 to launch its $355 million of senior secured credit facilities, according to a market source.

The facilities consist of a $55 million revolver and a $300 million term loan B, the source said.

Previously, it was known that the bank meeting would take place during the week of Jan. 22 but a specific date was unavailable, and only the term loan B had been announced.

RBC Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the acquisition by Silver Lake Partners of a majority stake in the company from KKR.

Weld North Education is a digital education technology company focused on developing digital curriculum and tools for preK-12th grade.

© 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.