Flexera Software, J.D. Power/Autodata break; Focus Financial, Avantor reveal talk

By Sara Rosenberg

New York, Jan. 10 – Flexera Software LLC increased the size of its incremental first-lien term loan and tightened the original issue discount before freeing up for trading on Friday, and J.D. Power/Autodata Group’s add-on first-lien term loan hit the secondary market as well.

In more happenings, Focus Financial Partners Inc. and Avantor disclosed price talk with launch, and Zekelman Industries, Froneri International Ltd., Whatabrands LLC, Knowlton Development Corp. (KDC/ONE) and Ocwen Financial Corp. joined the near-term primary calendar.

Flexera reworked, breaks

Flexera Software raised its fungible incremental first-lien term loan due February 2025 to $210 million from $60 million and changed the original issue discount to 99.75 from talk in the range of 99.25 to 99.50, according to a market source.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 350 basis points with a 25 bps leverage-based step-down and a 1% Libor floor.

Technically, the incremental loan is divided into a $60 million 2020-1 tranche and a $150 million 2020-2 tranche.

Recommitments were due at noon ET on Friday and the debt began trading late in the day, with levels quoted at par ½ bid, 101 offered, another source added.

Jefferies LLC is leading the deal that will be used to fund an acquisition and, because of the upsizing, to repay second-lien term loan borrowings.

Flexera is an Itasca, Ill.-based provider of software and services that enable software publishers and device makers to install, enforce and deploy software licenses.

J.D. Power frees up

J.D. Power/Autodata Group’s fungible $75 million add-on first-lien term loan (B2/B-/BB-) broke for trading, with levels quoted at par 5/8 bid, 101 offered, a trader remarked.

Pricing on the add-on term loan is Libor plus 350 bps with a 0% Libor floor, in line with existing first-lien term loan pricing, and the new debt was issued at par.

During syndication, the issue price on the add-on term loan was tightened from 99.75.

RBC Capital Markets, KKR Capital Markets, SunTrust Robinson Humphrey Inc. and UBS Investment Bank are leading the deal that will be used to fund an acquisition.

The pro forma first-lien term loan size is $1.23 billion.

J.D. Power/Autodata, a Thoma Bravo LLC portfolio company, is a Troy, Mich.-based provider of automobile transactional data, valuation tools, vehicle feature information and consumer analytics to the automotive industry.

Focus proposed terms

Back in the primary market, Focus Financial held its lender call on Friday and announced talk on its roughly $1.14 billion term loan B at Libor plus 200 bps with a 0% Libor floor, a par issue and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Thursday.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0% Libor floor.

Focus Financial is a New York-based partnership of independent, fiduciary wealth management firms.

Avantor reveals guidance

Avantor came out with price talk on its $677 million term loan B due November 2024 and its €349 million term loan B due November 2024 in connection with its morning lender call, according to a market source.

Talk on the U.S. term loan is Libor plus 250 bps with a 25 bps step-down at 0.5x inside closing date net first-lien leverage and a 1% Libor floor, and talk on the euro term loan is Euribor plus 275 bps with a 25 bps step-down at 0.5x inside closing date net first-lien leverage and a 0% floor, the source said. Both loans are talked with an original issue discount of 99.875 to par and 101 soft call protection for six months.

Commitments are due on Jan. 21, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to reprice existing U.S. term loan down from Libor plus 300 bps with a 25 bps step-down at 0.5x inside closing date net first-lien leverage and a 1% Libor floor, and a euro term loan down from Euribor plus 325 bps with a 25 bps step-down at 0.5x inside closing date net first-lien leverage and a 0% floor.

Avantor is a Radnor, Pa.-based provider of integrated, tailored solutions for the life sciences and advanced technology industries.

Zekelman on deck

Zekelman set a bank meeting for 1 p.m. ET in New York on Monday to launch a $900 million first-lien term loan, according to a market source.

Goldman Sachs Bank USA and BofA Securities, Inc. are leading the deal that will be used to refinance existing debt.

Zekelman Industries is a Chicago-based manufacturer of industrial steel pipe and tubular products.

Froneri readies deal

Froneri International will hold a bank meeting at 10 a.m. ET in New York on Wednesday and a bank meeting in London on Thursday to launch roughly €5.8 billion equivalent of first-and second-lien credit facilities, which are expected to include U.S. dollar, euro and pound sterling tranches, a market source remarked.

Credit Suisse, Deutsche Bank Securities Inc., Goldman Sachs, Citigroup Global Markets Inc., HSBC, J.P. Morgan Securities LLC and BofA Securities, Inc. are the underwriters on the deal that will be used to fund the $4 billion acquisition of Nestle USA’s ice cream business and to refinance existing debt.

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.

Whatabrands repricing

Whatabrands LLC set a lender call for 11 a.m. ET on Monday to launch a repricing of its $1,326,675,000 first-lien term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal.

Whatabrands is a San Antonio-based restaurant company.

Knowlton timing surfaces

Knowlton Development emerged with plans to hold a bank meeting on Wednesday to launch its previously announced fungible $300 million add-on first-lien term loan, a market source said.

UBS Investment Bank and Jefferies LLC are leading the deal that will be used to help fund the acquisition of HCT Group.

The transaction will also be financed with new equity from Knowlton Development’s sponsor, Cornell Capital, as well as reinvestment equity from the founder and existing management of HCT.

Closing is expected early this quarter, subject to customary conditions.

Knowlton Development is a Longueuil, Quebec-based manufacturer and custom formulator of color cosmetics, skincare, haircare, bath & body, fragrance, deodorant, home, health, industrial and auto care products. HCT is a Santa Monica, Calif.-based designer, engineer and manufacturer of packaging solutions for global beauty brands.

Ocwen joins calendar

Ocwen Financial scheduled a lender call for 10 a.m. ET on Tuesday to launch an amendment of its existing senior secured term loan B (B+) and extension to May 2022 from December 2020, according to a market source.

Currently, the term loan B is sized at $326 million, but the company will make a minimum $103.4 million paydown of the term loan at closing, plus an additional dollar-for-dollar paydown for the amount of the term loan extended above a 90% minimum extension threshold, the source said.

Barclays is leading the transaction.

Ocwen is a West Palm Beach, Fla.-based non-bank mortgage servicer and originator.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.