Web.com, PDC Brands, Flexera free to trade; Refinitiv, Quorum Business update loan terms

By Sara Rosenberg

New York, Sept. 17 – Web.com Group Inc.’s credit facilities emerged in the secondary market on Monday, with the first- and second-lien term loans trading above their original issue discounts, and PDC Brands’ (Parfums Holding Co. Inc.) term loan began trading as well.

Also, Flexera Software LLC freed up at par-plus levels after modifying the original issue discount on its add-on first-lien term loan.

In more happenings, Refinitiv increased its U.S. and euro term loan sizes, reduced spreads and adjusted original issue discount guidance, and Quorum Business Solutions (QBS Parent Inc.) shifted some funds to its first-lien term loan from its second-lien term loan, and tightened the spread and issue price on the first-lien tranche.

Additionally, Tunnel Hill Partners LP announced price talk on its term loan B with launch, and Envision Healthcare Corp., Speedcast International Ltd. and Bomgar Corp. came out with timing on the launch of their loan transactions, and Idera surfaced with new deal plans.

Web.com starts trading

Web.com’s credit facilities broke for trading on Monday, with the $1,095,000,000 seven-year covenant-light first-lien term loan B quoted at par ½ bid, par ¾ offered and the $420 million eight-year covenant-light second-lien term loan quoted at par ½ bid, 101½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 375 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 775 bps with a 0% Libor floor and was issued at a discount of 99.25. This tranche has hard call protection of 102 in year one and 101 in year two.

On Friday, the first-lien term loan was upsized from $1.08 billion, pricing was cut from talk in the range of Libor plus 400 bps to 425 bps and the discount was revised from talk in the range of 99 to 99.5. Also, pricing on the second-lien term loan was reduced from talk in the range of Libor plus 800 bps to 825 bps and the discount was changed from talk in the range of 98.5 to 99.

The company’s $1,615,000,000 of senior secured credit facilities also include a $100 million five-year revolver.

Web.com being acquired

Proceeds from Web.Com’s credit facilities, along with equity and cash on hand, will be used to fund its buyout by Siris Capital Group LLC for $25.00 per share in cash, or about $2 billion, and to refinance existing debt. The funds from the recent first-lien term loan upsizing will reduce revolver borrowings.

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Macquarie Capital (USA) Inc. are leading the deal.

Closing is expected around mid-October.

Web.com is a Jacksonville, Fla.-based provider of a full range of internet services and online marketing solutions for small and medium sized businesses.

PDC Brands breaks

PDC Brands’ $559 million term loan B due June 30, 2024 hit the secondary market too, with levels quoted at par 3/8 bid, par ¾ offered, a trader remarked.

Pricing on the term loan is Libor plus 425 bps with a step-down to Libor plus 400 bps at 5.85 times total net leverage and a 0% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

During syndication, pricing on the term loan was increased from Libor plus 400 bps and the step-down was changed from Libor plus 375 bps at 6.1 times total net leverage.

Nomura is the left lead on the deal that will be used to reprice an existing term loan B due June 30, 2024 down from Libor plus 475 bps with a 1% Libor floor.

PDC is a Stamford, Conn.-based beauty and personal care products company.

Flexera tweaked, frees up

Flexera Software tightened the original issue discount on its fungible $85 million senior secured add-on first-lien term loan due February 2025 to 99.875 from talk in the range of 99.5 to 99.75, market sources said.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor.

By late day, the add-on term loan started trading and levels were seen at par 1/8 bid, par 5/8 offered, sources added.

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Flexera is an Itasca, Ill.-based provider of software and services that enable software publishers and device makers to install, enforce and deploy software licenses.

Refinitiv reworked

Refinitiv raised its U.S. seven-year covenant-light term loan B to $6.5 billion from $5.5 billion, cut pricing to Libor plus 375 bps from talk in the range of Libor plus 400 bps to 425 bps and changed original issue discount talk to the 99.5 area from talk in the range of 99 to 99.5, according to a market source. This tranche still has no Libor floor and 101 soft call protection for six months.

The company also lifted its euro seven-year covenant-light term loan B to $2.75 billion equivalent from $2.5 billion equivalent, lowered the spread to Euribor plus 400 bps from Euribor plus 425 bps and modified discount talk to the 99.5 area from talk in the range of 99 to 99.5, while leaving the 0% floor and 101 soft call protection for six months intact, the source said.

The company’s now $10 billion equivalent of credit facilities (B2) include a $750 million revolver as well.

Commitments were due at 5 p.m. ET/5 p.m. BST on Monday and allocations are expected on Tuesday, the source added.

Refinitiv lead banks

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, UBS Investment Bank, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc., Barclays, RBC Capital Markets and Sumitomo are leading Refinitiv’s credit facilities.

The new bank debt, along with $4.25 billion equivalent of bonds, which were downsized from $5.5 billion equivalent with the upsizing of the term loans, will be used to help fund the acquisition by Blackstone, Canada Pension Plan Investment Board and GIC of a 55% stake in Thomson Reuters’ Financial & Risk business, to be renamed Refinitiv.

Thomson Reuters will receive about $17 billion in gross proceeds when the transaction closes, subject to purchase price adjustments, and will retain a 45% equity stake in the company.

Closing is expected on Oct. 1.

Refinitiv is a data and financial technology platform.

Quorum sets changes

Quorum Business Solutions upsized its seven-year covenant-light first-lien term loan to $245 million from $230 million, lowered pricing to Libor plus 400 bps from Libor plus 450 bps and moved the original issue discount to 99.75 from 99.5, according to a market source.

As before, the first-lien term loan has a 0% Libor floor and 101 soft call protection for six months.

Recommitments are due at 10 a.m. ET on Tuesday.

With the first-lien term loan downsizing, the company’s privately placed second-lien term loan was downsized to $85 million from $100 million, the source said.

Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Thoma Bravo LLC from Silver Lake.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Quorum is a provider of finance, operations and accounting software to energy companies.

Tunnel Hill guidance

Also in the primary market, Tunnel Hill Partners released talk of Libor plus 350 bps to 375 bps with a 0% Libor floor and an original issue discount of 99.5 on its $275 million seven-year covenant-light term loan B (B2) that launched with a bank meeting on Monday, according to a market source.

The term loan B has 101 soft call protection for six months.

Commitments are due at noon ET on Oct. 1, the source said.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and Fifth Third are leading the deal that will be used to fund the acquisition of the company by Macquarie from American Infrastructure MLP Funds and other holders.

Tunnel Hill is a Jericho, N.Y.-based integrated waste-by-rail operator.

Envision timing emerges

Envision Healthcare set a bank meeting for 10 a.m. ET in New York on Tuesday to launch its $5.05 billion seven-year covenant-light first-lien term loan B (B1), a market source remarked.

The term loan has 101 soft call protection for six months and a commitment deadline of 5 p.m. ET on Oct. 1, the source added.

As previously reported, the company’s $5.9 billion of senior secured credit facilities also include a $550 million asset-based revolver (Ba1) and a $300 million five-year revolver (B1).

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs Bank USA, Jefferies LLC, UBS Investment Bank, RBC Capital Markets, Societe Generale, HSBC Securities (USA) Inc., Mizuho Bank, BMO Capital Markets, SunTrust Robinson Humphrey Inc., Credit Agricole and KKR Capital Markets are leading the deal that will be used with up to $2.15 billion in senior notes and up to $3.5 billion in equity to fund the buyout of the company by KKR for $46.00 per share in cash, or about $9.9 billion including the assumption or repayment of debt.

Closing is expected in the fourth quarter, subject to customary conditions and regulatory approvals.

Envision is a Nashville, Tenn.-based provider of outsourced physician and ambulatory services.

Speedcast readies call

Speedcast International scheduled a lender call for 10:30 a.m. ET on Tuesday to launch its previously announced fungible $175 million incremental senior secured first-lien term loan (Ba3/BB-) due May 2025, according to a market source.

The incremental term loan has 101 soft call protection for six months and a commitment deadline of 5 p.m. ET on Sept. 25, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the acquisition of Globecomm Systems Inc. from HPS Investment Partners LLC and Tennenbaum Capital Partners LLC for about $135 million, including expected purchase price adjustments, and to repay some revolver borrowings.

Pro forma LTM net debt to EBITDA is anticipated at 3.3 times for June 2018, including Globecomm contribution to EBITDA and anticipated cost synergies.

Closing is expected in the fourth quarter, subject to regulatory approvals and other customary conditions.

Speedcast is an Australia-based provider of remote communication and IT solutions. Globecomm is a Hauppauge, N.Y.-based provider of remote communications and multi-network infrastructure.

Bomgar coming soon

Bomgar plans to hold a bank meeting at 9 a.m. ET on Thursday to launch $454 million of incremental bank debt, a market source said.

The debt is split between a $15 million incremental revolver, bringing the total revolver size to $40 million, a $315 million incremental first-lien term loan due April 17, 2025 and a $124 million incremental second-lien term loan due April 19, 2026, the source added.

The first-lien term loan has 101 soft call protection until Oct. 19, 2018, and the second-lien term loan has call protection of 102 until April 19, 2019 and 101 until April 19, 2020.

Jefferies LLC is the left lead on the deal that will be used to fund the acquisition of BeyondTrust from Veritas Capital.

Closing is expected in October.

Bomgar, a Francisco Partners portfolio company, is an Atlanta-based provider of remote support and privileged access management solutions to enterprise customers. BeyondTrust is a Phoenix-based Privilege-Centric Security company. The combined company will be based in Atlanta and will be called BeyondTrust.

Idera joins calendar

Idera will hold a lender call at 11 a.m. ET on Tuesday to launch an incremental term loan, according to a market source.

Jefferies LLC is leading the deal that will be used for acquisitions and general corporate purposes.

Idera is a Houston-based provider of software tools for databases.

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