Isagenix breaks; SunSource, GTT modify deals; Jordan Health, Greenway set price talk

By Sara Rosenberg

New York, April 26 – Isagenix International LLC reduced pricing on its term loan, tightened the original issue discount and adjusted the call protection, and then the debt made its way into the secondary market on Thursday.

In more happenings, SunSource (STS Operating Inc.) shifted some funds between its first-and second-lien term loans and lifted the spread on the second-lien tranche, and GTT Communications Inc. upsized its term loans, trimmed pricing on the U.S. tranche and firmed pricing on the euro tranche at the low end of guidance.

Jordan Health Services (BW NHHC HoldCo Inc.) and Greenway Health LLC announced price talk with launch, and Odyssey Logistics & Technology Corp., Vistra Group and GFL Environmental Inc. joined the near-term primary calendar.

Isagenix revised, trades

Isagenix International cut pricing on its $375 million seven-year first-lien term loan (B2/BB-) to Libor plus 575 basis points from Libor plus 600 bps, moved the original issue discount to 99 from 98 and modified the 101 call protection for one year to a hard call from a soft call, according to a market source.

As before, the term loan has a 1% Libor floor.

Recommitments were due at noon ET on Thursday and later in the day the term loan freed up for trading, with levels quoted at 99˝ bid, par ˝ offered, a trader added.

Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund an ESOP purchase of a minority stake in the company.

Isagenix is a Gilbert, Ariz.-based nutrition and weight management company.

BWIC surfaces

Also in trading, a $502 million Bid Wanted In Competition emerged with bids due at 11 a.m. ET on Friday, a trader remarked.

Some of the names in the portfolio are Accuride Corp., Aspen Dental, Bomgar Corp., Corporate Capital Trust, DuBois Chemicals Inc., Filtration Group Corp., Greenway Health LLC, HUB International Ltd., Michaels Stores Inc., One Call Medical Inc., Pelican Products Inc., Quikrete Holdings Inc., SFR Group SA, Truck Hero Inc., Veresen Midstream LP and Wyndham Hotels & Resorts Inc.

There are about 143 issuers in the BWIC, the trader added.

SunSource tweaked

Back in the primary market, SunSource increased its incremental first-lien term loan due Dec. 11, 2024 to $170 million from $160 million, while leaving pricing at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99.75, a market source said. This tranche still has 101 soft call protection through June 11, 2018.

Regarding the eight-year covenant-light second-lien term loan, it was trimmed to $115 million from $125 million and pricing was raised to Libor plus 800 bps from Libor plus 775 bps, while the 1% Libor floor, discount of 98.5 and hard call protection of 102 in year one and 101 in year two were left unchanged, the source continued.

Final commitments were due at noon ET on Thursday, the source added.

Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., ING, Natixis and UBS Investment Bank are leading the $285 million in term loans, with Barclays the left lead on the first-lien loan and Credit Suisse the left lead on the second-lien loan. Barclays is the administrative agent.

The new debt will be used to fund the acquisition of Ryan Herco, a distributor of fluid control systems, fluid filtration systems and fluid handling products, repay ABL borrowings and pay related fees and expenses.

SunSource, a Clayton, Dubilier & Rice portfolio company, is an Addison, Ill.-based distributor of fluid power and motion control technologies.

GTT changes surface

GTT Communications raised its U.S. seven-year covenant-light first-lien term loan (B2//BB-) to $1,862,000,000 from $1,331,000,000 and reduced pricing to Libor plus 275 bps from talk in the range of Libor plus 325 bps to 350 bps, a market source remarked.

Also, the company upsized its euro seven-year covenant-light first-lien term loan (//BB-) to €675 million from €640 million and set pricing at Euribor plus 325 bps, the low end of the Euribor plus 325 bps to 350 bps talk, the source continued.

Both term loans still have a 0% floor, a discount of 99.5 and 101 soft call protection for six months.

U.S. recommitments were due at 5 p.m. ET on Thursday and euro recommitments are due at noon GMT on Friday, the source added.

Credit Suisse, KeyBanc Capital Markets, SunTrust Robinson Humphrey Inc., Goldman Sachs, Morgan Stanley Senior Funding Inc., Citizens Bank and ING are leading the deal that will be used to refinance existing debt and fund the acquisition of Interoute for about €1.9 billion.

GTT Communications is a McLean, Va.-based cloud networking provider. Interoute is an operator of one of Europe’s largest independent fiber networks and cloud networking platforms.

Jordan reveals guidance

Jordan Health Services held its bank meeting on Thursday and announced price talk on its $660 million seven-year first-lien term loan (B-), $75 million seven-year delayed-draw for 24 months first-lien term loan (B-), $195 million eight-year second-lien term loan (CCC) and $25 million eight-year delayed-draw for 24 months second-lien term loan (CCC) with its bank meeting on Thursday, according to a market source.

The first-lien term loan debt is talked at Libor plus 400 bps with a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan debt is talked at Libor plus 800 bps with a 0% Libor floor and a discount of 99, the source said.

The delayed-draw term loans have a ticking fee of 1% for months one to eight, 2% for months 9 to 16 and 3% for months 17 to 24, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Jordan getting revolver

Along with the first-and second-lien term loans, Jordan Health’s $1,035,000,000 of senior secured credit facilities include an $80 million five-year revolver (B-).

Commitments are due on May 10, the source added.

Jefferies LLC, Deutsche Bank Securities Inc., RBC Capital Markets, CIT and Golub are leading the deal that will be used to fund the acquisition of Jordan Health by Kelso & Co. and Blue Wolf Capital Partners from Palladium Equity Partners LLC and subsequent merger with Great Lakes Caring Home Health and Hospice and National Home Health Care.

Before the bank meeting, the company upsized the first-lien term loan from $650 million and the second-lien term loan from $190 million, with the extra proceeds earmarked for one near-term acquisition.

The combined company is expected to be the fifth largest home health care provider in the United States, with 221 locations across 15 states in the Northeast, Midwest and Southern regions.

Greenway discloses talk

Greenway Health came out with talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $526 million first-lien term loan that launched with a call during the session, a market source said.

Consents are due at noon ET on Wednesday and commitments are due noon ET on May 3, the source added.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Greenway Health is a Carrollton, Ga.-based provider of clinical, financial, connectivity and information software products and services to physician practices.

Odyssey joins calendar

Also in the primary market, Odyssey Logistics scheduled a lender call for 10 a.m. ET on Friday to launch a $249 million covenant-light first-lien term loan (B1/B+) due October 2024 talked at Libor plus 375 bps with a ratings based step-down, a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 3, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a ratings-based step-down and a 1% Libor floor.

Odyssey Logistics is a Danbury, Conn.-based provider of multi-modal transportation solutions and transportation management.

Vistra on deck

Vistra Group will hold a lender call on Monday to launch a roughly $575 million first-lien term loan, a market source said.

Goldman Sachs Bank USA is leading the deal that will be used to refinance an existing $285.9 million first-lien term loan, to fund an acquisition and for general corporate purposes.

Vistra Group is a provider of company formations, trust, corporate and fund administration services.

GFL coming soon

GFL Environmental set a call for 10:30 a.m. ET on Monday to launch a new loan to existing and prospective lenders, a market source remarked.

Citigroup Global Markets Inc. is leading the transaction.

GFL Environmental is a Vaughan, Ont.-based waste management services company.

© 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.