Hyperion, Help at Home, Adevinta, Sovos break; Barracuda, Albany Molecular update deals

By Sara Rosenberg

New York, Oct. 22 – Hyperion Insurance Group Ltd. reduced the size of its U.S. first-lien term loan B and finalized the spread at the low end of talk, and added a euro add-on first-lien term loan B to its capital structure, before the loans made their way into the secondary market on Thursday.

Also, Help at Home LLC (HAH Group Holding Co. LLC) set pricing on its first-lien term loan at the high end of talk and extended the call protection, Adevinta firmed pricing on its U.S. term loan B at the low end of revised guidance, and Sovos Brands Intermediate Inc. revised the original issue discount on its incremental covenant-lite first-lien term loan, and then all of these deals broke for trading as well.

In addition, Barracuda Networks firmed pricing on its add-on first-lien term loan at the low end of guidance, and tightened the spread and original issue discount on its second-lien term loan, and Albany Molecular Research Inc. lowered pricing on its incremental first-lien term loan and modified the issue price.

Furthermore, Resolute Investment Managers Inc., Wrench Group LLC and Nuvei Corp. announced price talk with launch, and ION Analytics and Avantor joined this week’s primary calendar.

Hyperion restructured

Hyperion Insurance Group trimmed its U.S. seven-year incremental senior secured covenant-lite first-lien term loan B (B2/B) to $540 million from $625 million and set pricing at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, a market source remarked.

As before, the U.S. term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Of the total U.S. term loan amount, $245 million will be funded and $295 million will fund into escrow in January at full margin plus Libor floor. Ticking fees on the to be funded portion are half the margin from days 31 to 60 and the full margin thereafter.

With the U.S. loan downsizing, the company added a fungible €75 million add-on first-lien term loan B due Dec. 20, 2024 to the capital structure at pricing of Euribor plus 350 bps with a 0% floor and a discount of 99.0261.

Hyperion hits secondary

Commitments for Hyperion’s U.S. term loan were due at noon ET on Thursday and the strip of funded and to be funded debt freed to trade in the afternoon, with levels quoted at 99½ bid, par offered, a trader added.

Morgan Stanley Senior Funding Inc., RBC Capital Markets, Barclays, HSBC Securities (USA) Inc., Lloyds and Julius Baer are the joint lead arrangers and bookrunners on the deal. J.P. Morgan is a joint lead arranger on the funded tranche only.

Closing is expected in early November.

Proceeds will be used to fund the company’s acquisition of A-Plan Group, a personal and commercial lines insurance broker, to repay borrowings under its revolving credit facility, to fund its locked box account and to pay related fees and expenses.

HgCapital will make a £500 million equity investment in Hyperion, adding Hg as long-term investors in Hyperion alongside General Atlantic and Caisse de depot et placement du Quebec.

Hyperion is a London-based insurance intermediary group.

Help at Home finalized

Help at Home set pricing on its $515 million seven-year first-lien term loan (B1/B-) at Libor plus 500 bps, the high end of the Libor plus 475 bps to 500 bps talk, and extended the 101 soft call protection to one year from six months.

The first-lien term loan still has a 25 bps step-down at 3.5x first-lien secured leverage and a 25 bps step-down following the consummation of a qualified public offering, a 1% Libor floor and an original issue discount of 98.5.

Previously in syndication, the first-lien term loan was upsized from $440 million as plans were terminated for a $75 million first-lien delayed-draw term loan with three months availability.

The $819 million of credit facilities also include a $74 million five-year revolver (B1/B-), a $65 million first-lien delayed-draw term loan (B1/B-) with 24 months availability and a $165 million privately placed eight-year second-lien term loan (Caa1/CCC).

The delayed-draw term loan has a ticking fee of half the spread from days 46 to 90 and the full spread thereafter, and an original issue discount of 98.5.

Help at Home frees up

In the afternoon, Help at Home’s bank debt broke for trading, with the strip of funded and delayed-draw first-lien term loan debt quoted at 98¾ bid, 99¼ offered, another source added.

Jefferies LLC, Barclays, BMO Capital Markets and UBS Investment Bank are leading the deal that will be used to help fund the acquisition of the company by Centerbridge Partners and the Vistria Group.

Help at Home is a Chicago-based provider of home care and support to the elderly and people with disabilities in their homes and community-based settings.

Adevinta firms terms

Adevinta finalized pricing on its $506 million seven-year covenant-lite term loan B at Libor plus 300 bps, the low end of revised talk of Libor plus 300 bps to 325 bps and down from initial talk in the range of Libor plus 325 bps to 350 bps, according to market sources.

The U.S. term loan still has a 0.75% Libor floor and an original issue discount of 99.

The company is also getting a €900 million seven-year covenant-lite term loan B priced at Euribor plus 325 bps with a 0% floor and a discount of 99.

Both term loans (Ba3/BB-/BB+) have 101 soft call protection for six months.

Earlier in syndication, the discount on the U.S. and euro term loans was revised from 98.5, and pricing on the euro term loan was reduced from talk in the range of Euribor plus 350 bps to 375 bps.

Adevinta starts trading

Adevinta’s bank debt freed to trade during the session and levels were quoted at 99¼ bid, par ¼ offered, another source added.

Proceeds will be used with €1.06 billion of senior secured notes to refinance existing debt and to help fund the acquisition of eBay Classifieds Group, an online classifieds company, for $9.2 billion from eBay Inc.

Under the terms of the agreement, eBay will receive $2.5 billion in cash and 540 million shares of Adevinta, representing a 44% stake in pro forma Adevinta.

Barclays and Citigroup are the global coordinators on the deal and physical bookrunners on the euro loan. Barclays is the physical bookrunner on the U.S. loan. Joint bookrunners include BNP Paribas Securities Corp., DNB and J.P. Morgan Securities LLC. Mandated lead arrangers include BofA Securities Inc. and ING.

Closing is expected by the first quarter of 2021, subject to eBay Classifieds Group Dutch Works Council approval, regulatory approvals and customary conditions.

Adevinta is an Oslo-based online classifieds company.

Sovos tweaked, breaks

Sovos Brands changed the original issue discount on its fungible $100 million incremental covenant-lite first-lien term loan due November 2025 to 99.75 from 99.5, according to a market source.

Like the existing term loan, the incremental term loan is priced at Libor plus 500 bps with a 25 bps step at 4.3x first-lien net leverage and a 0% Libor floor.

Earlier in syndication, the transaction was changed from a $380 million seven-year covenant-lite first-lien term loan talked at Libor plus 425 bps to 450 bps with a 0% Libor floor, a discount of 99 and 101 soft call protection for six months, to the fungible add-on structure, and plans to refinance existing debt were canceled.

Commitments were due at noon ET on Thursday, moved up from 5 p.m. ET, and the loan began trading in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will fund the acquisition of Birch Benders LLC, a Denver-based producer of pancake and waffle mixes, toaster waffles, and pancake and baking cups.

Closing is expected by the end of this month.

Sovos, an Advent International portfolio company, is a Berkeley, Calif.-based food company.

Barracuda revised

In more happenings, Barracuda Networks set pricing on its fungible $206 million add-on first-lien term loan B (B2/B-) due February 2025 at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and left the 0.75% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source said.

The company also reduced pricing on its $365 million eight-year second-lien term loan (Caa2/CCC+) to Libor plus 675 bps from talk in the range of Libor plus 750 bps to 775 bps and adjusted the original issue discount to 99 from 98.5, the source said. This tranche still has a 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two.

As before, with this transaction, pricing on the company’s existing $744 million first-lien term loan B due February 2025 will be changed from the current rate of Libor plus 325 bps with a 1% Libor floor to match the add-on term loan spread and floor. The existing term loan B is offered at par and will get 101 soft call protection for six months as well.

Barracuda lead banks

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS Investment Bank and Stone Point are leading Barracuda Networks’ term loans.

Recommitments for the second-lien term loan were due at noon ET on Thursday, the source added.

The new debt will be used to fund a dividend to existing shareholders and add cash to balance sheet for potential future acquisitions.

Barracuda Networks is a Campbell, Calif.-based provider of security and data protection solutions.

Albany updated

Albany Molecular Research cut pricing on its non-fungible $210 million incremental first-lien term loan (B2/B-) due Aug. 30, 2024 to Libor plus 350 bps from Libor plus 375 bps and tightened the original issue discount to 99.25 from 99, a market source remarked.

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

Commitments were due at noon ET on Thursday.

Barclays is leading the deal that will be used to refinance an existing second-lien term loan.

Albany Molecular is an Albany-based contract research and manufacturing organization that works with the life sciences industry to improve patient outcomes and quality of life.

Resolute proposed terms

Resolute Investment Managers held its call on Thursday and announced price talk for its fungible $50 million add-on first-lien term loan and extension of its existing first- and second-lien term loans, according to a market source.

Talk on the add-on term loan (Ba3/B+) due April 2024 and the extended $281 million first-lien term loan (Ba3/B+) due April 2024 is Libor plus 375 bps with a 1% Libor floor and 101 soft call protection for six months, the source said. The add-on term loan is talked with an original issue discount of 99.5 and the extension is talked with a 50 bps extension fee.

The extended $105 million second-lien term loan (B3/B-) due April 2025 is talked at Libor plus 800 bps with a 1% Libor floor, a 50 bps extension fee and 101 hard call protection for one year.

Resolute deadline

Commitments for Resolute Investment’s term loans are due at noon ET on Oct. 29, the source added.

RBC Capital Markets, LLC, Barclays and BMO Capital Markets Corp. are leading the deal.

The add-on term loan will be used for general corporate purposes and future acquisitions. Through the extension, the company will push out the maturity on its existing first-lien term loan from April 2022 and increase pricing from Libor plus 325 bps, and extend the maturity on its existing second-lien term loan from April 2023 and increase pricing from Libor plus 750 bps.

Resolute Investment is an Irving, Tex.-based diversified asset management platform that partners with investment managers on both an affiliated and unaffiliated basis.

Wrench Group guidance

Wrench Group came out with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months on its non-fungible $100 million incremental first-lien term loan due April 2026 that launched with a call in the afternoon, a market source said.

Commitments are due at 4 p.m. ET on Oct. 29, the source added.

Jefferies LLC, Macquarie Capital (USA) Inc. and Antares Capital are leading the deal, which will be used to fund cash to the balance sheet for potential future acquisitions.

Wrench Group is a provider of home maintenance and repair services specializing in heating, ventilation and air conditioning, plumbing, electrical and water quality services.

Nuvei sets talk

Nuvei launched on its lender call during the session a $102 million term loan talked at Libor plus 375 bps to 400 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Oct. 29, the source added.

BMO Capital Markets is leading the deal that will be used to refinance existing debt.

Nuvei is a Montreal-based payment technology company.

ION readies deal

ION Analytics set a lender call for 9 a.m. ET on Friday to launch a $1.85 billion equivalent U.S. and euro seven-year term loan, according to market sources.

The split of U.S. and euro debt is still to be determined, sources said.

UBS Investment Bank and Credit Suisse are leading the deal that will be used to refinance existing debt. UBS is the left lead on the U.S. loan and Credit Suisse is the left lead on the euro loan.

ION Analytics was formed through the combination of Dealogic and Acuris, two providers of capital markets data, content and intelligence.

Avantor on deck

Avantor emerged with plans to hold a lender call at 11 a.m. ET on Friday to launch a $1.35 billion term loan B, a market source said.

Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal that will be used with $650 million equivalent of other euro secured debt to refinance the company’s existing U.S. and euro secured notes.

Avantor is a Radnor, Pa.-based provider of mission critical products and services to customers in the life sciences, advanced technologies and applied materials industries.

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