Univar, CEVA Logistics free to trade; Sprint Communications reworks add-on term loan

By Sara Rosenberg

New York, Feb. 22 – Univar Inc. set the original issue discount on its incremental U.S. term loan B at the tight side of guidance and firmed the spread on its incremental euro term loan B at the low end of revised talk, and then the debt began trading on Friday, and CEVA Logistics’ term loan broke as well.

In more happenings, Sprint Communications Inc. upsized its add-on senior secured term loan B-1 and modified the issue price, and MYOB joined the near-term primary calendar.

Univar finalizes terms

Univar firmed the original issue discount on its $300 million incremental term loan B (Ba3/BB+/BB+) due July 2024 at 99.5, the tight end of the 99 to 99.5 talk and set pricing on its €425 million euro incremental term loan B (Ba3/BB+/BB+) due July 2024 at Euribor plus 275 bps, the low end of revised talk of Euribor plus 275 bps to 300 bps and down from initial talk in the range of Euribor plus 300 bps to 325 bps, according to a market source.

The incremental U.S. term loan is priced 25 bps wide of the existing U.S. term loan B. At 25 bps wide, the incremental loan will be priced at Libor plus 275 bps if consolidated total leverage is more than 4 times and Libor plus 250 bps if consolidated total leverage is less than 4 times.

The incremental euro term loan has a par issue price, and both loans have a 0% floor and 101 soft call protection for six months.

Previously in syndication, the incremental U.S. term loan was added to the transaction, the incremental euro term loan was downsized from €675 million, and the issue price on the euro loan was revised from 99.5.

Univar breaks

After final terms emerged on Friday, Univar’s incremental U.S. term loan freed up and was quoted by traders at 99¾ bid, 100¼ offered. The incremental euro term loan was quoted at 100 5/8 bid, 100 7/8 offered.

Goldman Sachs, Bank of America Merrill Lynch, Deutsche Bank, JPMorgan and Wells Fargo are leading the deal that will be used with available cash and drawings under Univar’s ABL facility to fund the acquisition of Nexeo Solutions Inc. and to refinance Nexeo’s debt.

Nexeo is being bought in a cash and stock transaction valued at about $2 billion, including the assumption of debt and other obligations. Nexeo’s stock will be converted into 0.305 of a share of Univar common stock and $3.29 in cash, subject to adjustment at closing, representing a purchase price of $11.65 per share.

Closing is expected on Thursday.

Univar is a Downers Grove, Ill.-based distributor of industrial and specialty chemicals. Nexeo is a Houston-based chemicals and plastics distributor.

CEVA hits secondary

CEVA Logistics’ $475 million covenant-light term loan B due August 2025 also broke, with levels quoted at 97 bid, 98 offered, a trader remarked.

Pricing on the term loan B is Libor plus 500 bps with a 0% Libor floor and it was sold at an original issue discount of 97. The loan has 101 soft call protection for one year.

During syndication, the term loan was reduced from $825 million, the spread was increased from talk in the range of Libor plus 425 bps to 450 bps, a 25 bps step-down at 0.25 times inside closing leverage was eliminated, the discount widened from talk in the range of 98 to 99, the call protection was extended from six months, and the 50 bps MFN was set for life with the removal of a 12-month sunset.

HSBC Securities (USA) Inc. is the left lead arranger on the deal, BNP Paribas is a global coordinator, and Societe Generale is a joint lead arranger and joint bookrunner. HSBC will replace Credit Suisse as the administrative agent shortly after closing.

CEVA refinancing

Proceeds from CEVA’s new term loan B will be used to refinance an existing $475 million term loan B due August 2025 in connection with CMA CGM SA’s tender offer for CEVA’s shares.

The existing term loan is priced at Libor plus 375 bps with a 0% Libor floor.

Due to the recent loan downsizing, the company’s €300 million 5¼% senior secured notes due August 2025 will no longer be repaid from the new term loan B. The refinancing of any portion of the notes will be dealt with independently by accessing alternative markets, including a potential consent, a new U.S. high yield bond, a new euro term loan B or a new euro high yield bond.

CEVA is a Switzerland-based third-party logistics company.

Sprint revised

Back in the primary market, Sprint Communications raised its fungible add-on senior secured term loan B-1 due February 2024 to $900 million from $400 million and changed the original issue discount to 98 from talk in the range of 97 to 97.5, according to a market source.

Like the existing B-1 loan, the add-on term loan is priced at Libor plus 300 bps with a 0.75% Libor floor, and has 101 soft call protection through May 26.

Books closed at 1 p.m. ET on Friday, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes.

Sprint is an Overland Park, Kan.-based communications services company.

MYOB coming soon

MYOB set a bank meeting for 10:30 a.m. ET in New York on Monday to launch a $486 million seven-year covenant-light first-lien term loan that is talked with a 0% Libor floor and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on March 8, the source said.

Along with the U.S. term loan, the company’s credit facilities include an A$50 million revolver, an A$250 million first-lien term loan, an A$75 first-lien delayed-draw term loan, an A$145 second-lien term loan and an A$25 million second-lien delayed-draw term loan.

Credit Suisse Securities (USA) LLC, KKR Capital Markets, Jefferies LLC, Macquarie Capital (USA) Inc., Credit Agricole, Natixis and Crescent are leading the debt, which will be used to help fund the buyout of the company by KKR.

MYOB is an Australia-based provider of online business management solutions.

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