Froneri, Reynolds, Perforce, Atlantic break; Cobham, viagogo, Golden, Mister Car revised

By Sara Rosenberg

New York, Jan. 30 – Froneri International Ltd.’s credit facilities freed up for trading on Thursday, with both the U.S. first- and second-lien term loans quoted above their original issue discounts, and deals from Reynolds Consumer Products LLC, Perforce Software Inc. and Atlantic Broadband (Cogeco Communications Finance (USA) LP) began trading too.

Switching to the primary market, Cobham plc lowered spread talk on its U.S. and euro first-lien term loans, and viagogo upsized its U.S. term loan B, downsized its euro term loan B, and tightened spread and original issue discount talk on both tranches.

Also, Golden Nugget LLC increased the size of its incremental first-lien term loan and tightened the issue price, Mister Car Wash Holdings Inc. widened pricing on its first-lien term loan debt, and Banijay Group moved up the commitment deadline for its term loans.

Furthermore, Inovalon Holdings Inc., Zotec Partners, Kymera International and Match Group disclosed price talk with launch, and Octave Music Group Inc., Custom Truck One Source, Vertiv Group Corp. and APX/Vivint are getting ready to bring new deals to market.

Froneri starts trading

Froneri’s credit facilities broke for trading on Thursday, with the $2.67 billion seven-year covenant-lite first-lien term loan (B1/B+) quoted at par 1/8 bid, par ½ offered and the $245 million eight-year covenant-lite second-lien term loan (B3/B-) quoted at 101 bid, 103 offered, according to a market source.

Pricing on the U.S. first-lien term loan is Libor plus 225 basis points with a 0% Libor floor and it was sold at an original issue discount of 99.75, and the U.S. second-lien term loan is priced at Libor plus 575 bps with a 0% Libor floor and it was issued at a discount of 99.75.

The company’s credit facilities also include a €600 million multi-currency 6.5-year revolver (B1/B+) priced at Euribor plus 275 bps with a 0% floor, a €2.18 billion seven-year covenant-lite first-lien term loan (B1/B+) priced at Euribor plus 262.5 bps with a 0% floor and a par issue price, and a €245 million eight-year covenant-lite second-lien term loan (B3/B-) priced at Euribor plus 575 bps with a 0% floor and a par issue price.

Included in the first-lien term loans is 101 soft call protection for six months and the second-lien term loans have call protection of 102 in year one and 101 in year two.

Credit Suisse is the U.S. physical bookrunner on the deal, and Credit Suisse and Goldman Sachs are the European physical bookrunners. BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC and J.P. Morgan Securities LLC are joint bookrunners. Credit Suisse is the agent.

Froneri funding acquisition

Proceeds from Froneri’s credit facilities will be used to finance the acquisition of Nestle USA’s ice cream business for $4 billion, to refinance existing debt and for general corporate purposes.

During syndication, the U.S. first-lien term loan was upsized from a revised amount of $2.16 billion and an initial amount of $1.68 billion, pricing was reduced from Libor plus 300 bps and the discount was tightened from 99.5.

Also, the euro first-lien term loan was downsized from €2.3 billion, the spread firmed at the low end of revised talk of Euribor plus 262.5 bps to 275 bps and down from initial talk in the range of Euribor plus 300 bps to 325 bps, and the issue price was changed from 99.5.

In addition, the U.S. second-lien term loan was downsized from $355 million, pricing was trimmed from revised talk of Libor plus 600 bps and initial talk of Libor plus 700 bps, and the discount was tightened from 99.

The euro second-lien term loan was downsized from €430 million, the spread was cut from revised talk of Euribor plus 600 bps and initial talk in the range of Euribor plus 700 bps to 725 bps, and the issue price was modified from revised talk of 99.75 and initial talk of 99.

And, a £415 million seven-year covenant-lite first-lien term loan was eliminated from the capital structure.

Closing is expected this quarter, subject to customary regulatory approvals.

Froneri, a joint venture between PAI Partners and Nestle, is a U.K.-based ice cream manufacturer.

Reynolds tops par

Reynolds Consumer Products’ $2.475 billion seven-year first-lien term loan (Ba1/BB+) also emerged in the secondary market, with levels seen at par ¼ bid, par ¾ offered, a market source said.

Pricing on the term loan is Libor plus 175 bps with a 0% Libor floor and it was sold at an original issue discount of 99.875. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 175 bps to 200 bps talk and the discount was revised from 99.5.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to repay existing Reynolds Group Holdings debt.

Reynolds Consumer is a Lake Forest, Ill.-based consumer products company.

Perforce hits secondary

Perforce Software’s $798 million covenant-lite first-lien term loan (B2/B-) due July 2026 began trading too, with levels quoted at par bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 375 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 425 bps.

Perforce is a Minneapolis-based provider of enterprise-grade development operations software solutions.

Atlantic Broadband breaks

Atlantic Broadband’s $1.675 billion covenant-lite first-lien term loan (B1/BB-) due Jan. 4, 2025 freed up as well, with levels seen at par bid, par 3/8 offered, a market source said.

Pricing on the term loan is Libor plus 200 bps with a 0% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 225 bps.

Atlantic Broadband is a Quincy, Mass.-based cable operator.

Cobham tweaks deal

Moving to the primary market, Cobham cut price talk on its $1.188 billion seven-year first-lien term loan (B1/B/B+) to a range of Libor plus 350 bps to 375 bps from Libor plus 425 bps and trimmed the spread on its €885 million seven-year first-lien term B (B1/B/B+) to Euribor plus 375 bps from Euribor plus 425 bps, according to a market source.

The U.S. first-lien term loan still has a 1% Libor floor and an original issue discount of 99, the euro term loan still has a 0% floor and a discount of 99.5, and both loans still have 101 soft call protection for six months.

Previously in syndication, the U.S. term loan was upsized from $788 million because the company canceled plans for a $400 million tranche of other senior secured debt.

Commitments for the U.S. loan were scheduled to be due at 5 p.m. ET on Thursday and commitments for the euro loan are due at 7 a.m. ET on Friday, the source added.

Cobham lead banks

Goldman Sachs is the left lead on Cobham’s U.S. loan, and Goldman and Citigroup Global Markets are the joint active bookrunners on the euro loan. Joint bookrunners are Goldman, Citigroup, Credit Suisse, Barclays, Blackstone, BNP Paribas, Deutsche Bank, NatWest and UniCredit.

The new debt will be used to help fund the buyout of the company by Advent International Corp. for 165 pence in cash per share, or about £4 billion on a fully diluted basis.

Cobham is a Wimborne Minster, U.K.-based technology and services innovator in diversified industries including defense and commerce.

viagogo changes emerge

viagogo raised its U.S. seven-year first-lien term loan B to $1.95 billion from a revised amount of $1.175 billion and an initial amount of $1.475 billion, and trimmed the euro seven-year first-lien term loan B that was added earlier in syndication to $250 million equivalent from $300 million equivalent, according to a market source.

Additionally, pricing on the U.S. and euro term loans was cut to Libor/Euribor plus 350 bps from Libor/Euribor plus 400 bps, the original issue discount on the U.S. loan was adjusted to 99.5 from 99 and the discount talk on the euro term loan was changed to a range of 99.75 to par from 99, the source said.

The term loans (B) still have a 0% floor and 101 soft call protection for six months.

Commitments were due at the end of the day on Thursday, the source added.

Due to the U.S. term loan upsizing, the Geneva-based online resale ticket marketplace cancelled plans for $325 million of privately placed second-lien notes, downsized its preferred equity to $400 million from $600 million and is placing additional cash on the balance sheet.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to help fund the acquisition of StubHub, a ticket marketplace, from eBay Inc. for $4.05 billion.

Closing is expected this quarter, subject to regulatory approval and customary conditions.

Golden Nugget revised

Golden Nugget raised its incremental first-lien term loan due Oct. 4, 2023 to $200 million from $100 million and adjusted the issue price to par from 99.75, a market source said.

In addition, the company made a slight change to the amendment that allows for the future refinancing of existing senior and subordinated notes with new unsecured junior debt.

As before, pricing on the incremental term loan and on the repricing of the company’s existing $2,392,900,000 first-lien term loan due Oct. 4, 2023 is Libor plus 250 bps with a 0.75% Libor floor and all of the debt is getting 101 soft call protection for six months.

Recommitments were due at 4 p.m. ET on Thursday, the source added.

Jefferies LLC is the left lead on the deal.

The incremental term loan will be used to fund a dividend and the repricing will take the existing term loan down from Libor plus 275 bps with a 0.75% Libor floor.

Golden Nugget is a diversified restaurant, hospitality, entertainment and gaming company.

Mister Car modified

Mister Car Wash changed pricing on its $796 million first-lien term loan due May 14, 2026 and $40 million delayed-draw first-lien term loan due May 14, 2026 to Libor plus 325 bps from Libor plus 300 bps, according to a market source.

As before, the term loan debt has a 25 bps step-down at 4.25x first-lien net leverage, a 0% Libor floor and 101 soft call protection for six months.

Consents are due at 5 p.m. ET on Monday, moved up from noon ET on Tuesday, the source said.

Jefferies LLC is leading the deal that will be used to reprice existing funded and delayed-draw first-lien term loans down from Libor plus 350 bps with a 25 bps step-down at 4.83x first-lien net leverage.

Mister Car Wash is a Tucson-based car wash company.

Banijay moves timing

Banijay Group accelerated the commitment deadline for its $500 million five-year covenant-lite term loan B (B1/B/B+) to noon ET on Monday from noon ET on Feb. 6 and for its €503 million five-year covenant-lite term loan B (B1/B/B+) to 6 a.m. ET on Tuesday from noon ET on Feb. 6, a market source remarked.

The U.S. term loan is talked at Libor plus 425 bps to 450 bps with an original issue discount of 99 and the euro term loan is talked at Euribor plus 425 bps to 450 bps with a discount of 99.5. Both loans have 101 soft call protection for six months.

Deutsche Bank, Natixis and Societe Generale are the global coordinators and joint bookrunners. BNP Paribas and BofA Securities, Inc. are passive bookrunners.

Proceeds will be used to redeem Banijay 2022 notes and repay senior credit facilities, to fund the acquisition of Endemol Shine from The Walt Disney Co. and Apollo Global Management Inc. and repay debt, to refinance the consideration paid for the Bear Grylls acquisitions, and to pay fees and expenses.

Banijay is a Paris-based independent production and distribution business.

Inovalon details surface

Inovalon held its lender call on Thursday and launched a $915.3 million senior secured covenant-lite term loan B-1 due April 2025 at talk of Libor plus 300 bps with a with 25 bps step-down at 3.45x senior secured net leverage, a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Feb. 6, the source added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps. Morgan Stanley Senior Funding Inc. is the administrative agent.

Inovalon is a Bowie, Md.-based provider of cloud-based platforms empowering data-driven health care.

Zotec sets guidance

Zotec Partners came out with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months on its $292 million first-lien term loan B (B2/B-) due February 2024 that launched with a morning bank meeting, according to a market source.

Commitments are due at noon ET on Feb. 7, the source said.

Goldman Sachs Bank USA is leading the deal that will be used to refinance an existing term loan B.

Furthermore, the company is seeking an amendment to some covenants relative to the existing credit agreement, the source added.

Zotec Partners is a Carmel, Ind.-based provider of comprehensive revenue cycle management solutions for hospitals and office-based physician practices.

Kymera proposed terms

Kymera International launched at its morning bank meeting its fungible $165 million incremental first-lien term loan (B2/B) due October 2025 at talk of Libor plus 600 bps with a 0% Libor floor, an original issue discount of 98 to 99 and 101 soft call protection for one year, a market source remarked.

Commitments are due at 5 p.m. ET on Feb. 12, the source added.

Goldman Sachs Bank USA, HSBC Securities (USA) Inc., KeyBanc Capital Markets and M&T Bank are leading the deal that will be used for mergers and acquisitions.

In connection with this transaction, pricing on the company’s existing first-lien term loan will be lifted from Libor plus 550 bps to match the incremental loan pricing.

Kymera is a Research Triangle Park, N.C.-based specialty materials company focused on the copper and aluminum metal powder industry.

Match reveals talk

Match Group came to market with a $425 million seven-year term loan B that is talked at Libor plus 200 bps to 225 bps with a 0% Libor floor and an original issue discount of 99.75, according to a market source.

Commitments are due at noon ET on Feb. 6, the source said.

BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs Bank USA, Barclays, BMO Capital Markets, BNP Paribas Securities Corp., Capital One, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third, J.P. Morgan Securities LLC, PNC Capital Markets and Societe Generale are leading the deal, which will be used to extend an existing term loan and reprice the debt from Libor plus 250 bps.

Match is a Dallas-based provider of dating products.

Octave readies deal

Octave Music Group set a lender meeting for Tuesday to launch a $290 million term loan talked 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, according to a market source.

Commitments are due on Feb. 19, the source added.

Citizens Bank is the left lead on the deal that will be used to refinance existing debt.

Octave Music, formerly known as TouchTunes Networks Interactive Inc., is a New York-based interactive entertainment platform.

Custom Truck on deck

Custom Truck One Source scheduled a lender call for 2 p.m. ET on Monday to launch a new loan transaction to current and prospective lenders, a market source said.

Citigroup Global Markets Inc. is leading the deal.

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

Vertiv joins calendar

Vertiv Group emerged with plans to hold a lender call at 10 a.m. ET on Friday to launch a new loan to prospective lenders, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

The company, currently owned by Platinum Equity, announced in December that it will become a publicly traded company through a merger with GS Acquisition Holdings Corp., a special purpose acquisition company.

Closing is expected this quarter subject to customary conditions, including regulatory approvals and approval of GS Acquisition’s stockholders.

Vertiv is a Columbus, Ohio-based provider of critical digital infrastructure and continuity solutions.

APX/Vivint plans call

APX/Vivint set a lender call for Friday to launch a $525 million incremental term loan B and an amendment and extension of its existing $800 million term loan B, a market source said.

BofA Securities, Inc. is leading the deal.

The incremental term loan will be used to repay notes.

APX/Vivint is a Provo, Utah-based smart home services provider.

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