Allied Universal updates pricing; SubCom, EPIC float terms; multiple deals join calendar

By Sara Rosenberg

New York, Oct. 15 – In the primary market on Monday, Allied Universal Holdco LLC set the spread on its incremental first-lien term loan at the low end of guidance and modified the original issue discount.

Also, SubCom (Crown Subsea Communications Holding Inc.) and EPIC Midstream Holdings LP released price talk with launch, and Forest City Enterprises LP and SS&C Technologies Holdings Inc. came out with timing on the launch of their term loans.

Furthermore, Sandvine Corp., Confie Seguros Holding II Co., Meredith Corp., Bass Pro Group LLC, Authentic Brands Group LLC (ABG Intermediate Holdings 2 LLC), CryoLife Inc. and Custom Truck One Source (CTOS LLC) joined this week’s primary calendar.

Allied Universal tweaked

Allied Universal firmed pricing on its $800 million incremental first-lien term loan (B2/B-/BB) due July 28, 2022 at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, and moved the original issue discount to 99.5 from 99, according to a market source.

As before, the incremental term loan has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Monday, the source said.

Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc., Societe Generale, ING, Natixis and PNC are leading the deal that will be used with equity to fund the acquisition of U.S. Security Associates for about $1 billion.

Closing is expected by the end of the year, subject to customary regulatory approvals.

Allied Universal is a Santa Ana, Calif.-based contract security services company. U.S. Security is a Roswell, Ga.-based provider of security and related services.

SubCom reveals guidance

SubCom held its bank meeting on Monday and announced talk on its $450 million seven-year covenant-light first-lien term loan at Libor plus 500 bps to 525 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

The company’s $550 million of credit facilities (B1/B) also include a $100 million revolver.

Commitments are due on Oct. 26, the source added.

Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Cerberus Capital Management LP from TE Connectivity Ltd.

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

SubCom is an Eatontown, N.J.-based supplier of subsea communications systems.

EPIC discloses talk

EPIC Midstream Holdings released original issue discount talk of 98 on its fungible $150 million incremental first-lien term loan B that launched in the afternoon, a market source remarked.

Like the existing term loan B, pricing on the incremental loan is Libor plus 550 bps with a 0% Libor floor, in line with existing term loan B pricing.

Commitments are due on Oct. 29, the source added.

UBS Investment Bank is the left lead on the deal that will be used with additional contributed equity to fund the acquisition of the Robstown NGL fractionation facility located near Corpus Christi, Texas, from Southcross Holdings Borrower LP.

The Robstown fractionator has a current capacity of 64 thousand barrels per day of NGLs with an expansion underway to 68 MB/D of capacity.

Closing is expected in November, subject to customary conditions, including regulatory approval.

EPIC was formed in 2017 to build, own and operate midstream infrastructure in both the Permian and Eagle Ford basins.

Forest City timing surfaces

Also in the primary market, Forest City set a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch its previously announced $1.25 billion seven-year covenant-light term loan B, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Based on filings with the Securities and Exchange Commission, the company is also expected to get a $350 million revolver.

Bank of America Merrill Lynch, TD Securities (USA) LLC, Barclays, BMO Capital Markets, CIBC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets, The Bank of Nova Scotia and US Bank are leading the deal that will be used to help fund the acquisition of the company by Brookfield Asset Management Inc. for $25.35 per share in an all-cash transaction valued at $11.4 billion, including debt.

Closing is expected in the fourth quarter, subject to certain conditions, including the approval of Forest City’s stockholders. The transaction is not contingent on financing.

Forest City is a Cleveland-based real estate company.

SS&C launch emerges

SS&C Technologies will hold a lender call on Tuesday to launch its $1 billion add-on term loan B-5 talked at Libor plus 250 bps with a 0% Libor floor and an original issue discount of 99.5 to 99.75, a market source remarked.

Commitments are due on Friday, the source added.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to help fund the acquisition of Intralinks Holdings Inc. from Siris Capital Group for $1.5 billion, split between $1 billion in cash and $500 million in SS&C stock.

Closing is expected in the fourth quarter, subject to clearance by the relevant regulatory authorities and other customary conditions.

SS&C is a Windsor, Conn.-based provider of investment and financial software-enabled services and software for the financial services and health care industries. Intralinks is a New York-based financial technology provider for the banking, deal making and capital markets communities.

Sandvine sets meeting

Sandvine scheduled a bank meeting for 10:30 a.m. ET on Wednesday to launch $430 million of first-lien credit facilities, a market source said.

The first-lien facilities consist of a $30 million five-year revolver, and a $400 million seven-year first-lien term loan that has 101 soft call protection for six months, the source added.

The company is also getting a $110 million privately placed second-lien term loan.

Jefferies LLC, UBS Investment Bank and Societe Generale are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Sandvine is a Waterloo, Ont.-based provider of active network intelligence solutions for network operators and enterprises.

Confie joins calendar

Confie Seguros emerged with plans to hold a lender call at 10 a.m. ET on Wednesday to launch a $220 million second-lien term loan, according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used with new preferred equity to refinance an existing second-lien term loan and partially repay revolver and first-lien term loan borrowings.

Confie Seguros is a Huntington Beach, Calif.-based personal lines and small to midsize commercial insurance broker.

Meredith readies repricing

Meredith will hold a lender call at 11 a.m. ET on Tuesday to launch a $1,595,000,000 term loan B (BB), a market source remarked.

The term loan B has 101 soft call protection for six months, the source added.

Commitments are due at noon ET on Oct. 23.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan B from Libor plus 300 bps with a 0% Libor floor.

Meredith is a Des Moines-based media and marketing company.

Bass Pro add-on

Bass Pro Group set a lender call for Tuesday to launch a fungible $800 million add-on term loan B (B+) talked at Libor plus 500 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source said.

The spread and the floor on the add-on term loan matches the existing term loan B pricing.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund a dividend payment and redeem some preferred equity.

With the add-on, the company is seeking an amendment and existing lenders are being offered a 25 bps consent fee.

Bass Pro is a Springfield, Mo.-based outdoor retailer.

Authentic coming soon

Authentic Brands scheduled a lender call for 11 a.m. ET on Tuesday to launch a $100 million incremental covenant-light first-lien term loan due Sept. 29, 2024, according to a market source.

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

Bank of America Merrill Lynch, Barclays and KeyBanc Capital Markets are leading the deal that will be used to fund the acquisition of Vince Camuto, a footwear and accessories organization, in partnership with DSW Inc. for about $375 million, provide liquidity for the potential acquisition of Heritage Home Group’s Broyhill and Thomasville & Co. brands, and for other corporate purposes.

Authentic Brands is a New York-based acquirer and manager of consumer brands in the fashion, sports and celebrity/entertainment sectors.

CryoLife on deck

CryoLife set a lender call for 3 p.m. ET on Tuesday to launch a $224 million covenant-light term loan B (B2/B) due Dec. 1, 2024 talked with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said. Spread talk on the term loan is not yet available.

Commitments are due at 1 p.m. ET on Oct. 22, the source added.

Deutsche Bank Securities Inc., Capital One Bank and Fifth Third Bank are leading the deal that will be used to reprice an existing term loan B.

CryoLife is a Kennesaw, Ga.-based medical device and tissue processing company focused on cardiac and vascular surgery.

Custom Truck plans call

Custom Truck One Source will hold a lender call at 2 p.m. ET on Tuesday to launch a $50 million incremental term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used for general corporate purposes, including investments in rental fleets and potential acquisitions, and to pay related fees and expenses.

Custom Truck One Source, formerly known as Utility One Source, is a Kansas City, Mo.-based provider of specialized truck and heavy equipment solutions.

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