Hamilton, Internet Brands break; JetBlue revises timing; OneDigital, HelpSystems set talk

By Sara Rosenberg

New York, June 11 – Hamilton Projects Acquiror LLC’s credit facilities made their way into the secondary market on Thursday morning, and the first-lien term loan B was seen trading above its original issue discount.

Another deal to free to trade during market hours was Internet Brands Inc.’s incremental first-lien term loan following an acceleration of the commitment deadline.

In other news, JetBlue Airways Corp. moved up the commitment deadline for its term loan B, OneDigital released price talk on its term loan with launch, and HelpSystems (HS Purchaser LLC) disclosed original issue discount guidance on its incremental term loan.

Hamilton starts trading

Hamilton Projects’ credit facilities began trading on Thursday, with the $900 million seven-year first-lien term loan B quoted at 97¼ bid, 97¾ offered, according to a trader.

Pricing on the term loan is Libor plus 475 basis points with a 1% Libor floor and it was sold at an original issue discount of 97. The debt has 101 soft call protection for one year, amortization of 1% per annum, a 1.1x debt service coverage ratio, a six months debt service reserve account, and a cash sweep of the greater of 75% and the amount necessary to achieve a target debt balance, stepping down to 50% at a net leverage ratio of 3x

During syndication, pricing on the term loan was lowered from Libor plus 500 bps and the discount firmed at the tight end of the 96 to 97 talk.

The company’s $1.015 billion of senior secured credit facilities (B1/BB-), which are expected to close on Wednesday, also include a $115 million five-year revolver.

Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund the acquisition of Liberty Energy Center and Patriot Energy Center, two natural gas-fired combined cycle gas power plants located in the PJM-MAAC capacity zone, by Carlyle Power Partners II LP and EIG Management Co. LLC.

Internet Brands frees up

Internet Brands moved up the commitment deadline for its non-fungible $500 million incremental covenant-lite first-lien term loan (B2/B) due September 2024 to 3 p.m. ET on Thursday from 5 p.m. ET on Thursday, and the debt broke for trading late in the day at 97 bid, 98 offered, a market source said.

Pricing on the incremental term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 97. The debt has 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC, KKR Capital Markets, BofA Securities, Inc., Deutsche Bank Securities Inc. and others to be named are the joint lead arrangers on the deal.

Proceeds will be used to refinance a revolving credit facility draw and for general corporate purposes.

Internet Brands is an El Segundo, Calif.-based integrated online media and software services organization focused on four categories, including health, automotive, legal and home/travel.

JetBlue changes deadline

Back in the primary market, JetBlue accelerated the commitment deadline for its $500 million four-year first-lien term loan B (Ba2/BB-/BBB-) to noon ET on Friday from 5 p.m. ET on Monday, a market source remarked.

Talk on the term loan is Libor plus 575 bps to 600 bps with a 1% Libor floor and an original issue discount of 97. The debt is non-callable for one year, with a make-whole at Treasuries plus 50 bps, and then at 102 in year two.

Covenants include a minimum collateral coverage ratio of 1.6 times (maximum loan-to-value of 62.5%), tested semiannually, and a minimum unrestricted liquidity threshold of $550 million to be maintained at all times.

Amortization on the term loan is 5% per annum.

Barclays, BNP Paribas Securities Corp., Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal that will be used for general corporate purposes.

JetBlue is a Long Island City, N.Y.-based provider of passenger air transportation services.

OneDigital sets guidance

OneDigital launched in the afternoon its non-fungible $75 million incremental first-lien term loan and announced talk at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for one year, according to a market source.

Golub Capital is leading the deal that will be used to fund upcoming acquisitions.

The company has also privately placed a non-fungible $25 million first-lien delayed-draw term loan with Golub, which will be fungible with the new term loan as it is drawn.

OneDigital, a New Mountain Capital portfolio company, is an Atlanta-based employee benefits insurance broker.

HelpSystems OID talk

HelpSystems came out with original issue discount talk of 98.56 on its fungible $130 million incremental first-lien term loan due November 2026 that launched with a lender call during the session, a market source said.

Like the existing term loan, the incremental term loan is priced at Libor plus 475 bps with a 1% Libor floor.

The incremental term loan has 101 soft call protection for one year, the source added.

Commitments are due on Tuesday.

Jefferies LLC is leading the deal that will be used to fund two acquisitions, fund cash to the balance sheet, and pay any related transaction and advisory fees and expenses.

Including the incremental term loan, the company’s term loan will total $915 million.

HelpSystems is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity, and business intelligence software.

UFC allocates

UFC Holdings LLC allocated its $150 million incremental first-lien term loan (B) in line with initial talk of Libor plus 325 bps with a 1% Libor floor and an original issue discount of 96.5, according to a market source.

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

KKR Capital Markets and Goldman Sachs Bank USA are leading the deal that will be used to repay revolving credit facility borrowings.

UFC is a Las Vegas-based mixed martial arts organization and pay-per-view event provider.

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