Advanced Computer, Open Text, Apple Leisure, Navico break; ION Trading changes surface

By Sara Rosenberg

New York, May 25 – Advanced Computer Software’s credit facilities freed up for trading during Friday’s session, and the U.S. term loan was quoted well above its original issue discount, and Open Text Corp. broke too.

Also, Apple Leisure Group finalized the spread on its term loan at the high side of talk and widened the issue price, and Navico firmed pricing on its term loan at the low end of talk and adjusted the step-down, and then both of these deals made their way into the secondary market as well.

In more happenings, ION Trading Finance Ltd. set the spread on its U.S. incremental term loan at the high end of guidance, lowered pricing on its euro incremental term loan, modified original issue discounts on both tranches and made the debt fungible with the existing term loans.

Furthermore, Ardent Health Partners LLC and Solenis LLC joined the near-term primary calendar.

Advanced Computer breaks

Advanced Computer Software’s $325 million covenant-light first-lien term loan due May 31, 2024 hit the secondary market on Friday, with levels quoted at par ½ bid, 101½ offered, according to a trader.

Pricing on the term loan is Libor plus 475 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 company’s senior secured credit facilities (B3) also include a $50 million five-year revolver and a £282 million covenant-light first-lien term loan due May 31, 2024.

The pound sterling term loan is priced at Libor plus 475 bps with a 0% Libor floor and was issued at a discount of 99.5. This tranche has 101 soft call protection for six months as well.

Advanced Computer leads

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading Advanced Computer’s credit facilities that will be used to refinance and extend existing first-lien debt and refinance existing second-lien debt.

During syndication, the U.S. term loan was downsized from $341 million, pricing was reduced from talk in the range of Libor plus 500 bps to 525 bps and the discount finalized at the tight end of revised talk of 99.5 to 99.75 and tighter than original talk in the range of 99 to 99.5. Also, the pound sterling loan was upsized from £244 million.

Closing is expected on June 8.

Advanced Computer is a U.K.-based provider of software and IT services.

Open Text tops par

Open Text’s $1 billion seven-year term loan B (BBB-) also broke for trading, with levels quoted at par 3/8 bid, par ¾ offered, a trader said.

Pricing on the term loan is Libor plus 175 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the issue price on the term loan firmed at the tight end of the 99.75 to par talk.

Barclays, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., RBC Capital Markets, HSBC Securities (USA) Inc., MUFG, NBC, BMO Capital Markets, Bank of America Merrill Lynch, PNC Bank, CIBC, Bank of Nova Scotia, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance an existing term loan B and revolver borrowings.

Closing is expected on Wednesday.

Open Text is a Waterloo, Ont.-based software provider of business-to-business cloud integration services.

Apple revised, trades

Apple Leisure Group set pricing on its $950 million covenant-light first-lien term loan (B3/B) due March 2024 at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk and moved the original issue discount to 99 from 99.5, a market source remarked.

The term loan continues to include a 0% Libor floor and 101 soft call protection for six months.

After terms finalized, the loan freed to trade and levels were seen at 99½ bid, par ½ offered, another source added.

Credit Suisse Securities (USA) LLC, KKR Capital Markets, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and fund an acquisition.

Apple Leisure is a Philadelphia-based hospitality company.

Navico updated, frees up

Navico finalized pricing on its $253.5 million senior secured term loan (B2/B) due March 2023 at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, according to a market source.

In addition, the step-down on the term loan was changed to Libor plus 425 bps following a qualified initial public offering and if total leverage is 2.5 times, from step-downs following a qualified initial public offering by 75 bps if total leverage is less than 2.75 times and by an additional 25 bps if total leverage is less than 2.25 times, the source said.

The term loan still has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

In the afternoon, the term loan began trading and levels were quoted at par ¼ bid, 101 offered, a trader added.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan down from Libor plus 550 bps with a 1% Libor floor.

Navico is an Egersund, Norway-based manufacturer of marine electronics.

ION reworks loans

In other news, ION Trading Finance set pricing on its U.S. term loan at Libor plus 400 bps, the wide end of the Libor plus 375 bps to 400 bps talk, cut the spread on its euro term loan to Euribor plus 325 bps from Euribor plus 350 bps, and changed the original issue discount on both term loans to 99.75 from 99.5, a market source said.

Also, the incremental debt will now be fungible with the existing U.S. and euro term loans, meaning that pricing on the existing term debt will be increased from the current rate of Libor/Euribor plus 275 bps with a 1% floor to match the incremental loan pricing, the source continued.

As before, the term loans have a 1% floor and 101 soft call protection for six months, and the U.S. and euro senior secured incremental covenant-light first-lien term loan debt totals $2.1 billion equivalent, with tranche sizes still to be determined.

Recommitments are due at 5 p.m. ET on Tuesday, the source added.

ION funding acquisition

Proceeds from ION Trading’s incremental term loan debt will be used to help fund the acquisition of Fidessa Group plc for £38.703 per share. The transaction is valued at about £1.5 billion.

UBS Investment Bank is leading the loan.

In addition to the term loan, the company has received a commitment for a €20 million incremental revolving credit facility.

ION Trading is a software provider of trading, treasury and workflow solutions. Fidessa is provider of trading, investment and information solutions for the financial community.

Ardent readies deal

Ardent Health set a bank meeting for Wednesday to launch $990 million of credit facilities, according to a market source.

The facilities consist of a $225 million five-year ABL facility and a $765 million seven-year first-lien term loan, the source said.

Barclays and Jefferies LLC are leading the deal that will be used to refinance existing debt.

Equity Group Investments is the sponsor.

Ardent Health is a Nashville, Tenn.-based owner and operator of hospitals.

Solenis coming soon

Solenis scheduled a bank meeting for 10:30 a.m. ET in New York on Wednesday and a bank meeting in London on Thursday to launch a new loan transaction, a market source remarked.

Citigroup Global Markets Inc. is leading the deal.

Solenis is a Wilmington, Del.-based producer of specialty chemicals for water intensive industries, including the pulp, paper, oil and gas, chemical processing, mining, biorefining, power and municipal markets.

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