Veritas, Tutor Perini, Smart Start, AmeriLife break; LogMeIn, Hudson River revise deals

By Sara Rosenberg

New York, Aug. 14 – A number of loan deals made their way into the secondary market on Friday, including Veritas Technologies, Tutor Perini, Smart Start Inc. and AmeriLife Holdings LLC.

Meanwhile, over in the primary market, LogMeIn Inc. reduced the size of its first-lien term loan, finalized the spread at the low end of guidance, tightened the original issue discount and sweetened the call protection.

Also, Hudson River Trading LLC upsized its add-on term loan and firmed the issue price at the tight end of talk.

Veritas starts trading

Veritas Technologies’ $1.325 billion five-year term loan B broke for trading, with levels quoted at 98¼ bid, 98¾ offered, according to a market source.

The U.S. term loan B and a €550 million five-year term loan B are priced at Libor/Euribor plus 550 basis points with a 1% floor and were sold at an original issue discount of 98.

During syndication, the company downsized the U.S. term loan from $1.55 billion and the euro term loan from €690 million, pricing was set at the high end of the Libor/Euribor plus 525 bps to 550 bps talk, and the discount firmed at the wide end of the 98 to 98.5 talk.

BofA Securities, Inc. and Morgan Stanley Senior Funding Inc. are leading the loans, which will be used with $1 billion of senior secured notes, upsized from $600 million with the term loan downsizings, and cash on hand to repay outstanding term loan and revolver borrowings, and to pay related fees and expenses.

Veritas is a Santa Clara, Calif.-based provider of data protection and availability.

Tutor Perini frees up

Tutor Perini’s $425 million seven-year first-lien term loan B (Ba3/BB-/BB+) began trading too, with levels quoted by one trader at 99 bid, 99¾ offered, and by a second trader at 98¾ bid.

Pricing on the term loan is Libor plus 475 bps with a 25 bps step-down at 0.5x below closing date net total leverage and a 1% Libor floor. The debt was sold at a discount of 98 and has 101 soft call protection for one year.

During syndication, the term loan was upsized from $375 million, the spread finalized at the low end of the Libor plus 475 bps to 500 bps talk, the step-down was added and the discount was revised from 97.5. Also, changes were made to the incremental, the excess cash flow sweep, available amount and the EBITDA definition, and no pro rata share voting was removed.

Goldman Sachs Bank USA, BMO Capital Markets, Deutsche Bank Securities Inc. and M&T Bank are leading the deal that will be used to repay revolver borrowings, to repurchase or retire outstanding convertible notes due 2021, to pay transaction-related fees and for other general corporate purposes.

Tutor Perini is a Los Angeles-based provider of diversified general contracting, design-build and self-perform construction services for public and private clients.

Smart Start tops OID

Smart Start’s $350 million term loan B (B2/B) also freed to trade, with levels quoted at par bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 475 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was lowered from revised talk of Libor plus 500 bps and initial talk in the range of Libor plus 525 bps to 550 bps, and the discount was tightened from revised talk of 98.5 and initial talk in the range of 97 to 98.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing first- and second-lien term loans.

Smart Start is a Grapevine, Tex.-based provider of ignition interlocks and portable devices for alcohol monitoring.

AmeriLife hits secondary

AmeriLife’s fungible $95 million incremental covenant-lite first-lien term loan due March 18, 2027 broke as well, with levels quoted at 99 bid, 99½ offered, a market source remarked.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 400 bps with a 0% Libor floor and has 101 soft call protection through Sept. 18. The new debt was sold at an original issue discount of 98.5.

On Thursday, the incremental term loan was upsized from $80 million and the discount was modified from 98.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund tuck-in acquisitions and for general corporate purposes.

With the recent incremental first-lien term loan upsizing, the company’s second-lien tack-on term loan was reduced by $15 million to $30 million.

AmeriLife is a Clearwater, Fla.-based insurance marketing organization.

LogMeIn reworked

Switching to the primary market, LogMeIn trimmed its seven-year first-lien term loan B to $1.75 billion from $1.95 billion, firmed pricing at Libor plus 475 bps, the low end of the Libor plus 475 bps to 500 bps talk, changed the original issue discount to 97.5 from 97 and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan still has a 0% Libor floor.

Recommitments were due at noon ET on Friday, the source added.

Barclays, RBC Capital Markets, Deutsche Bank Securities Inc., Jefferies LLC and Mizuho Bank Ltd. are leading the deal.

Proceeds will be used with a $500 million pre-placed second-lien term loan, $950 million of senior secured notes, which were upsized from $750 million with the term loan B downsizing, and equity to fund the buyout of the company by Francisco Partners and Elliott Management Corp. for $86.05 per share in cash. The aggregate equity valuation is about $4.3 billion.

Closing is expected in the third quarter.

LogMeIn is a Boston-based provider of cloud-based connectivity.

Hudson River tweaked

Hudson River Trading raised its fungible add-on term loan to $528.5 million from $400 million and set the original issue discount at 98.75, the tight end of the 98.5 to 98.75 guidance, according to a market source.

The add-on term loan is priced at Libor plus 300 bps with a 0% Libor floor and has 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes.

Hudson River is a New York-based multi-asset class quantitative trading firm.

PetVet allocates

In other news, PetVet Care Centers LLC allocated on Friday its fungible $250 million incremental first-lien term loan B-3 due February 2025, a market source said.

The incremental term loan is priced at Libor plus 425 bps with a 1% Libor floor, in line with existing term loan B-3 pricing, and has 101 soft call protection for six months. The loan was sold at an original issue discount of 99.75.

During syndication, the incremental term loan was upsized from $200 million and the discount was modified from 99.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to finance an acquisition and, as a result of the upsizing, to fund cash to the balance sheet for future acquisitions and general corporate purposes.

PetVet is a Westport, Conn.-based acquirer and operator of general practice and specialty veterinary hospitals for companion animals.

© 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.