Allen Media, SI Group deal revisions surface; DataBank add-on sees strong interest

By Sara Rosenberg

New York, Aug. 17 – In the primary market on Friday, Allen Media LLC reduced the size of its term loan B, lifted the spread, widened the original issue discount and sweetened the call protection.

Also, SI Group upsized its first-lien term loan, increased pricing, changed original issue discount talk and extended the call premium and terminated plans for a second-lien term loan.

Furthermore, DataBank’s add-on term loan B was well oversubscribed ahead of its commitment deadline, and Web.com Group Inc. joined the near-term primary calendar.

Allen Media reworked

Allen Media trimmed its term loan B to $375 million from $500 million, raised pricing to Libor plus 650 bps from Libor plus 600 basis points, moved the original issue discount to 97.5 from 99 and changed the hard call protection to 102 in year one and 101 in year two from 101 for one year, according to a market source.

Additionally, the term loan maturity was shortened to five years from seven years, the maximum total leverage ratio was revised to 5 times, from 6 times with step-downs, amortization was lifted to 2.5% in years one and two, 5% in years three and four, and 7.5% in year five, from 1% per annum, and the accordion was adjusted to $100 million plus unlimited up to 2.75 times gross leverage, from $100 million and 100% of LTM consolidated EBITDA plus unlimited up to a first-lien net leverage ratio to be determined, the source said.

The term loan B still has a 1% Libor floor.

Recommitments are due at noon ET on Wednesday, the source added.

Deutsche Bank Securities Inc. and Jefferies LLC are leading the deal that will be used to support the Target Acquisition, repay existing debt, issue a dividend to management and fund cash to the balance sheet.

Allen Media is a media, content and technology company with a differentiated set of lifestyle and entertainment businesses across a variety of platforms.

SI Group updated

SI Group raised its seven-year first-lien term loan to $1,475,000,000 from $1,425,000,000, flexed pricing to Libor plus 475 bps from Libor plus 400 bps, revised original issue discount talk to a range of 94 to 95 from 99 and extended the 101 soft call protection to one year from six months, while leaving the 0% Libor floor intact, a market source said.

Also, the company cancelled plans for a $250 million eight-year second-lien term loan that was talked at Libor plus 800 bps with a 0% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, and modified the ticking fee, the MFN and the incremental, the source continued.

The company’s now $1,725,000,000 of credit facilities include a $250 million five-year revolver as well.

Commitments are due at noon ET on Tuesday, the source added.

SI Group lead banks

J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are leading SI Group’s credit facilities, with JPMorgan the left lead. HSBC was acting as the left lead on the second-lien loan.

The new debt will be used to help fund the buyout of the company by SK Capital Partners from descendants of W. Howard Wright.

Upon closing, SI Group will be combined with SK Capital’s current portfolio company Addivant, a Danbury, Conn.-based supplier of additives used to improve the production and performance properties of polymers, plastics and rubbers.

Closing is expected in the second half of this year.

SI Group is a Schenectady, N.Y.-based developer and manufacturer of performance additives and intermediates.

DataBank well met

DataBank’s $25 million add-on term loan B was strongly oversubscribed before Friday’s commitment deadline passed, a market source remarked.

Pricing on the add-on term loan is Libor plus 375 basis points with a 1% Libor floor, and the debt is talked with an original issue discount of 99.75.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to pay down revolver borrowings.

DataBank is a Dallas-based provider of enterprise-class data center, cloud, and interconnection services.

Web.com on deck

Web.com set a lender presentation for 11 a.m. ET on Sept. 5 to launch $1.6 billion of senior secured credit facilities, according to a market source.

The facilities consist of a $100 million revolver, a $1.08 billion first-lien term loan B and a $420 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used with equity and cash on hand to fund the buyout of the company by Siris Capital Group LLC for $25.00 per share in cash and refinance existing debt. The transaction is valued at about $2 billion.

Closing is expected in the fourth quarter, subject to approval by Web.com shareholders, regulatory approvals and customary conditions.

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.

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