MYOB, Spring Education, Windstream Services break; New Fortress Energy changes emerge

By Sara Rosenberg

New York, March 8 – MYOB firmed the spread on its U.S. first-lien term loan at the low end of talk, added a step-down and tightened the original issue discount, and Spring Education Group modified the issue price on its incremental first-lien term loan, and then both of these deals freed to trade on Friday.

Another deal to make its way into the secondary market during the session was Windstream Services LLC’s debtor-in-possession financing facility.

In more happenings, New Fortress Energy (NFE Atlantic Holdings LLC) reduced the size of its term loan B, lifted the spread, widened the original issue discount and sweetened the call protection.

Also, XPO Logistics Inc. came to market with an incremental term loan B-1, and Aptean and Consol Energy Inc. joined the near-term primary calendar.

MYOB updated, trades

MYOB finalized pricing on its $486 million seven-year covenant-light first-lien term loan (B2/B) at Libor plus 400 basis points, the tight end of the Libor plus 400 bps to 425 bps talk, added a 25 bps step-down after 1 times of first-lien net leverage deleveraging and changed the original issue discount to 99.5 from 99, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at noon ET on Friday and, shortly thereafter, the term loan began trading with levels quoted at 99 5/8 bid, 100 1/8 offered, another source added.

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

Along with the U.S. term loan, the company is getting a A$50 million revolver, a A$250 million first-lien term loan, a A$75 first-lien delayed-draw term loan, a A$145 second-lien term loan and a A$25 million second-lien delayed-draw term loan.

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

Spring tweaked, frees up

Spring Education Group adjusted the original issue discount on its fungible $106 million incremental first-lien term loan (B2/B-) to 99 from talk in the 98.75 area, a market source said.

Like the existing term loan, the incremental loan is priced at Libor plus 425 bps with a 0% Libor floor.

After terms finalized, the incremental term loan broke for trading, and levels were seen at 99¼ bid, 99¾ offered, the source added.

Macquarie Capital is leading the deal that will be used to fund the acquisition of schools.

Spring Education, a Primavera Capital Group portfolio company, is a California-based provider of pre-K through 12th grade education.

Windstream hits secondary

Windstream Services’ DIP financing freed to trade too, with the $500 million covenant-light term loan quoted at 99 7/8 bid, 100 3/8 offered, according to a market source.

Pricing on the term loan is Libor plus 250 bps with no Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 call protection during the first six months.

During syndication, the spread on the term loan was reduced from talk in the range of Libor plus 275 bps to 300 bps.

The company’s $1 billion 24-month DIP facilities (Baa3//BBB-) also include a $500 million revolver.

The interim availability for the DIP is $300 million on the term loan and $100 million on the revolver.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities, Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities are leading the deal that will be used for general corporate purposes, adequate protection payments and restructuring expenses.

Windstream is a Little Rock, Ark.-based telecommunications provider.

New Fortress reworked

Back in the primary market, New Fortress Energy trimmed its term loan B to $500 million from $750 million, raised pricing to Libor plus 825 bps from Libor plus 500 bps and modified the original issue discount to 96 from 98, according to a market source.

Additionally, the call protection was revised to non-callable for one year, then a hard call of 103 in year two, 102 in year three and 101 in year four from hard call protection of 103 in year one and 101 in year two, and the maturity was shortened to five years from seven years, the source said.

The term loan still has a 0% Libor floor.

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

Morgan Stanley Senior Funding Inc. and Barclays are leading the loan that will be used to complete the construction of infrastructure, including liquefaction and terminal facilities, to support contracted cash flows, to repay existing debt and for general corporate purposes.

New Fortress Energy is a New York-based energy infrastructure company.

XPO holds call

XPO Logistics hosted a lender call at 11 a.m. ET on Friday to launch a non-fungible $500 million covenant-light incremental term loan B-1 due February 2025 talked at Libor plus 250 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

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

Morgan Stanley Senior Funding is leading the deal that will be used for general corporate purposes, including to fund purchases of the company’s common stock as part of a previously-announced share repurchase plan, and to pay related fees and expenses.

XPO Logistics is a Greenwich, Conn.-based provider of supply chain solutions.

Aptean coming soon

Aptean set a bank meeting for 10 a.m. ET on Wednesday to launch a $350 million covenant-light first-lien term loan, according to a market source.

The company’s $650 million of credit facilities also include a $50 million revolver, a $100 million privately placed covenant-light delayed-draw first-lien term loan and a $150 million privately placed covenant-light second-lien term loan, the source said.

Golub Capital and Macquarie Capital are leading the deal that will be used to support a joint investment from TA Associates and Vista Equity Partners. TA Associates and Vista will be equal partners, each investing new equity to acquire Aptean from the separate Vista fund that initially invested in the company in 2012.

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

Aptean is an Alpharetta, Ga.-based provider of mission-critical, industry-specific enterprise software solutions.

Consol joins calendar

Consol Energy emerged with plans to hold a call at 1:30 p.m. ET on Monday to launch a new loan deal to existing and prospective lenders, a market source remarked.

Citigroup Global Markets is the left lead on the deal.

Consol is a Canonsburg, Pa.-based producer and exporter of high-Btu bituminous thermal and crossover metallurgical coal.

NSO call protection

In other news, it was disclosed that NSO Group’s proposed $500 million equivalent U.S. and euro seven-year term loan included 101 soft call protection for six months, a market source said.

As previously, the term loan, of which at least $300 million will be in U.S. dollars, is talked at Libor/Euribor plus 600 bps with a 0% floor and an original issue discount of 98

The deal will launch with a bank meeting in New York on Thursday and with small group meetings in London on Tuesday and Wednesday.

Jefferies and Credit Suisse Securities are leading the loan that will be used to fund the buyout of the company by management and Novalpina Capital from Francisco Partners.

NSO is a Luxembourg-based cyber-technology company.

Dental Corp. allocates

Dental Corp. of Canada Inc. allocated its $127 million incremental first-lien term loan (B2/B-) due June 6, 2025 and its $50 million incremental second-lien term loan (Caa2/CCC) due June 6, 2026, a market source remarked.

Pricing on the incremental first-lien term loan is Libor plus 375 bps with a 0% Libor floor and it was sold at an original issue discount of 98.56. The debt has 101 soft call protection for six months.

The incremental second-lien term loan is priced at Libor plus 750 bps with a 0% Libor floor and was issued at a discount of 98.26. This debt has the same hard call protection as the existing second-lien term loan.

Spreads and floors on the incremental loans match existing first- and second-lien term loan pricing.

Jefferies is the lead arranger on the $177 million of incremental term loan debt that will be used to fund acquisitions.

Closing is expected during the week of March 11.

Dental Corp. is a network of general and specialist dental clinics in Canada.

Civitas closes

The buyout of Civitas Solutions Inc. by Centerbridge Partners LP for $17.75 in cash per share, resulting in an enterprise value of about $1.4 billion, has been completed, according to a news release.

To help fund the transaction, Civitas got $1.18 billion of credit facilities consisting of a $125 million revolver, an $805 million seven-year first-lien term loan B (B1/B), a $50 million seven-year first-lien term loan C (B1/B) and a $200 million privately placed second-lien term loan.

Pricing on the first-lien term loan debt is Libor plus 425 bps with one 25 bps step-down at 4 times first-lien leverage and one 25 bps step-down upon an initial public offering. The debt has a 0% Libor floor and 101 soft call protection for six months, and was sold at an original issue discount of 99.

During syndication, pricing on the first-lien term loans was lowered from Libor plus 450 bps and the discount was revised from 98.5.

Goldman Sachs Bank USA, UBS Investment Bank, RBC Capital Markets LLC, KeyBanc Capital Markets, BMO Capital Markets and Fifth Third led the deal.

Civitas is a Boston-based provider of home- and community-based health and human services.

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