ADT breaks; Evertec changes emerge; BGIS, Minimax Viking, Cook & Boardman release talk

By Sara Rosenberg

New York, Oct. 11 – ADT Inc. (Prime Security Services Borrower LLC) reduced the size of its term loan B and finalized the spread at the low end of guidance, and then the debt freed to trade on Wednesday with levels quoted above its original issue discount.

In more happenings, Evertec Inc. lowered pricing on its term loan B and added an incremental term loan A to its capital structure.

Also, BGIS, Minimax Viking and Cook & Boardman Group (Red Fox CD Acquisition Corp.) disclosed price talk with launch, and Action Holding BV (Peer Holding III BV/Peer USA LLC) joined this week’s primary calendar.

ADT reworked, frees

ADT scaled back its seven-year term loan B to $1.375 billion from $1.4 billion to better align to the current amount outstanding under an existing term loan B and set pricing at SOFR plus 250 basis points, the low end of the SOFR plus 250 bps to 275 bps talk, according to a market source.

As before, the term loan has a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

The term loan B broke for trading on Wednesday, with levels quoted at 99 1/8 bid, par 1/8 offered, another source added.

Barclays, Deutsche Bank Securities Inc., Mizuho, RBC Capital Markets, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., MUFG, BNP Paribas Securities Corp. and Citizens Bank are leading the deal that will be used with cash from the balance sheet and proceeds from the recently completed sale of ADT’s commercial security, fire and life safety business to GTCR for $1.6 billion to refinance an existing term loan B due 2026.

ADT is a Boca Raton, Fla.-based provider of security, automation and smart home solutions services.

Evertec revised

Evertec trimmed pricing on its $600 million seven-year covenant-lite term loan B (Ba3/BB-) to SOFR plus 350 bps from talk in the range of SOFR plus 375 bps to 400 bps, while leaving the 0.5% floor, original issue discount of 98.5 and 101 soft call protection for six months unchanged, a market source remarked.

Also, the company added a $60 million incremental term loan A to its transaction.

Commitments were due at 5 p.m. ET on Wednesday, accelerated from Thursday, the source added.

Truist Securities Inc. is the left lead on the deal.

The term loan B will be used to fund the acquisition of Sinqia for R$27.19 per share, increased by a customary daily “ticking fee” of up to R$1.00 per share depending on the timing of the closing, and the incremental term loan A will be used to put cash on the balance sheet for general corporate purposes.

Based on the July 19 closing price of Sinqia shares, Sinqia, a Brazil-based provider of technology for financial institutions, has an equity valuation of about $485 million and an enterprise value of around $591 million. Consideration will be in the form of 90% cash and 10% Evertec shares.

Closing is expected this quarter, subject to satisfaction of customary conditions and approvals.

Evertec is a Puerto Rico-based full-service transaction processing company.

BGIS holds call

BGIS held a lender call at 11:30 a.m. ET on Wednesday to launch a $916 million senior secured covenant-lite first-lien term loan (B) due May 31, 2028 talked at SOFR plus 450 bps with a 0.5% floor, an original issue discount of 98 and 101 soft call protection for six months, according to a market source.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance an existing first-lien term loan due May 2026, to refinance an existing second-lien term loan and to fund tuck-in acquisition activity.

Commitments from existing and new lenders are due at noon ET on Oct. 19, the source added.

Cashless and post-close elections are available.

Closing is expected during the week of Oct. 23.

BGIS is an integrated facilities management company.

Minimax Viking guidance

Minimax Viking came out with price talk on its minimum $500 million term loan B due July 2028 and minimum €450 million term loan B due July 2028 with its morning lender call, a market source said.

Talk on the U.S. term loan is SOFR plus 275 bps to 300 bps with a 0.75% floor and an original issue discount of 99, and talk on the euro term loan is Euribor plus 325 bps to 350 bps with a 0% floor and a discount of 99, the source added.

The term loans (Ba3) have 101 soft call protection for six months.

Commitments for the U.S. term loan are due at noon ET on Oct. 19, and commitments for the euro term loan are due at 7 a.m. ET on Oct. 19.

Deutsche Bank is the global coordinator and physical bookrunner on the deal. UniCredit and Commerzbank are passive bookrunners.

The new debt will be used to amend and extend an existing $569 million term loan B due July 2025 and an existing €488 million term loan B due July 2025, and to pay transaction related fees and expenses.

Minimax is a Bad Oldesloe, Germany-based fire protection company.

Cook & Boardman launches

Cook & Boardman held a lender call at 1 p.m. ET to launch a $500 million seven-year term loan B (B) talked at SOFR plus 500 bps with a 0% floor, an original issue discount of 96.5 to 97 and 101 soft call protection for six months, market sources remarked.

Commitments are due at noon ET on Oct. 25, sources added.

BofA Securities Inc., Goldman Sachs Bank USA, TD Securities (USA) LLC, Truist Securities and Stifel are leading the deal that will be used to help fund the acquisition of a majority stake in the company by Platinum Equity from Littlejohn & Co. LLC, to repay existing debt in full, and to pay fees, commissions and expenses in connection with the transactions. Littlejohn will remain a significant minority shareholder in the company.

Closing is expected this year.

Cook & Boardman is a Winston-Salem, N.C.-based distributor of commercial door and security integration solutions.

Action on deck

Action Holding set a lender call for 10 a.m. ET on Thursday to launch a $1 billion seven-year term loan B-4, according to market sources.

The term loan has 101 soft call protection for six months, sources said.

Bank of America, Barclays and Deutsche Bank are the left lead global coordinators and lead arrangers, with Bank of America the primary left lead. BNP Paribas, Citigroup, Rabobank and Goldman Sachs are global coordinators and lead arrangers. ABN AMRO, Credit Agricole, Natixis, RBC and SMBC are lead arrangers. Rabobank is the administrative agent.

The term loan will be used with some surplus-cash on the balance sheet to fund a financing-related distribution and/or share buyback, to pay transaction fees and expenses, and to put cash on the balance sheet of the group and/or for general corporate purposes.

Action is a non-food discount retailer in Europe.

Fund flows

In other news, actively managed loan fund flows on Tuesday were positive $30 million and loan ETFs were positive $75 million, sources said.

Actively managed high-yield fund flows on Tuesday were negative $108 million and high-yield ETFs were positive $386 million, sources added.

Loan indices rise

In other news, IHS Markit’s iBoxx loan indices were stronger on Tuesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.17% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.18%.

Month to date, the MiLLi is down 0.12% and year to date it is up 9.7%, and the LLLi is down 0.21% month to date and up 8.64% year to date.

Average secondary market bids in the U.S. on Tuesday were 92.93, up 0.01% from the previous day and up 1.15% year to date.

According to the IHS Markit data, some of the top advancers on Tuesday were SSH Group/Spring Education’s July 2018 second-lien covenant-lite term loan at par, up from 95.63, EyeCare Partners’ February 2020 covenant-lite term loan B at 68.75, up from 67.57, and Air Methods’ April 2017 covenant-lite term loan B at 29.44, up from 29.

Some top decliners on Tuesday were AMR/AAdvantage’s March 2021 term loan at 98.88, down from 102.18, New Trojan/Careismatic’s January 2021 covenant-lite term loan at 52.13, down from 52.75, and Optiv’s April 2023 covenant-lite term loan at 95.58, down from 96.65.

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