Staples, MW Industries, Barracuda break; Six Flags tweaks term loan; multiple deals launch

By Sara Rosenberg

New York, April 9 – Deals from Staples Inc. and MW Industries Inc. (Helix Acquisition Holdings Inc.) freed to trade on Tuesday, and Barracuda Networks Inc.’s add-on first-lien term loan B hit the secondary market after the issue price was tightened.

In more happenings, Six Flags Theme Parks Inc. modified the original issue discount on its term loan B, NEO Tech Inc., Sundyne US Purchaser Inc., Jane Street Group LLC, AppLovin Corp. and Insight Global (IG Investments Holdings LLC) revealed price talk with launch, and UFC came to market with an add-on first-lien term loan.

Staples frees up

Staples’ term loans emerged in the secondary market, with the $300 million covenant-lite first-lien term loan due September 2024 and the $2 billion seven-year covenant-lite first-lien term loan both quoted at 99 bid, 99˝ offered on the break, according to a trader.

After the break, the seven-year loan moved lower and was being quoted at 97 bid, 98Ľ offered by late day, the trader said.

Pricing on the 2024 loan is Libor plus 450 basis points with a 0% Libor floor and pricing on the seven-year loan is Libor plus 500 bps with a 0% Libor floor. Both tranches were sold at an original issue discount of 99 and have 101 soft call protection for one year.

During syndication, the total term loan amount was reduced from $3.2 billion, the debt was restructured from one seven-year loan tranche that had been talked at Libor plus 475 bps to 500 bps with a 0% Libor floor and a discount of 99, and the call protection was extended from six months.

Staples lead banks

UBS Investment Bank, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Jefferies LLC, KKR Capital Markets, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading Staples’ $2.3 billion of term loans.

Proceeds will be used to help refinance existing debt, including $1 billion of bonds that are expected to be taken out at the make-whole provision under the existing indenture, and to finance a dividend payment.

Other funds for the transaction will come from $2 billion of secured notes, downsized from a revised amount of $2,025,000,000 but upsized from and initial amount of $750 million, $1 billion of unsecured notes, downsized recently from $1,375,000,000, and $102 million in ABL credit facility borrowings, up from the initially expected $77 million of borrowings.

Staples is a Framingham, Mass.-based business supplies distributor.

MW hits secondary

MW Industries’ non-fungible $50 million incremental first-lien term loan (B2/B-) due September 2024 began trading too, with levels seen at 98 bid, 99 offered, a trader remarked.

Pricing on the incremental term loan is Libor plus 375 bps with a 0% Libor floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for six months.

RBC Capital Markets is leading the deal that will be used to fund an acquisition.

MW Industries is a Rosemont, Ind.-based designer and manufacturer of springs and other specialty engineered metal components for diverse end markets.

Barracuda updated, breaks

Barracuda Networks adjusted the original issue discount on its fungible $205 million add-on senior secured first-lien term loan B (B2/B-/BB-) due February 2025 to 99.375 from talk in the range of 99 to 99.25, according to a market source.

The add-on term loan is still priced at Libor plus 325 bps with a 1% Libor floor, in line with the existing $551 million first-lien term loan, and all of the debt is still getting 101 soft call protection for six months.

The add-on term loan broke for trading in the afternoon and was quoted at 99 5/8 bid, par 1/8 offered, another source added.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the deal that will be used to refinance an existing $205 million second-lien term loan due 2026.

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

Six Flags revised

In other news, Six Flags Theme Parks tightened the original issue discount on its $800 million seven-year term loan B to 99.75 from 99, a market source said.

As before, the term loan is priced at Libor plus 200 bps with a 0% Libor floor, and has 101 soft call protection for six months.

The company’s $1.15 billion of credit facilities (Ba1/BBB-) also include a $350 million revolver.

Recommitments and comments to the credit agreement are due at 1 p.m. ET on Wednesday, the source added.

Wells Fargo Securities LLC, Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing revolver and term loan B.

Six Flags is a Grand Prairie, Texas-based regional theme park company.

NEO discloses talk

NEO Tech held its bank meeting on Tuesday and released talk on its $315 million seven-year first-lien senior secured term loan B (B2/B+) at Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on April 23, the source said.

Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

NEO Tech is a Chatsworth, Calif.-based designer and manufacturer of high-reliability electronic and micro-electronic system design and manufacturing services.

Sundyne sets guidance

Sundyne revealed talk of Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $450 million seven-year covenant-lite first-lien term loan that launched with an afternoon call, a market source said.

The company’s $550 million of credit facilities (B2/B) also include a $100 million five-year revolver.

Commitments are due on April 23, the source added.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and RBC Capital Markets LLC are leading the deal that will be used to recapitalize the company and fund a distribution to shareholders.

Sundyne is an Arvada, Colo.-based designer and manufacturer of pumps and compressors.

Jane Street launches

Jane Street launched with a call during the session a fungible $420 million add-on senior secured term loan B (BB-) due August 2022 talked at an original issue discount of 99.75, a market source remarked.

The add-on term loan B is priced at Libor plus 300 bps with a 0% Libor floor.

Commitments are due at 11 a.m. ET on Friday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to expand trading capital and for general corporate purposes.

Along with the add-on, the company launched an amendment to its existing credit agreement.

Pro forma for the transaction, the term loan B will total $1.5 billion.

Jane Street is a quantitative trading firm with a focus on technology and collaborative problem solving.

AppLovin holds call

AppLovin hosted a call in the afternoon to launch a fungible $400 million incremental first-lien term loan (B+) talked at an original issue discount of 99.5, according to a market source.

The incremental term loan is priced at Libor plus 375 bps with a step-down to Libor plus 350 bps when total leverage is 3.5 times and a 0% Libor floor.

Commitments are due on April 16, the source said.

Bank of America Merrill Lynch and KKR Capital Markets are leading the deal, which will be used to add cash to the balance sheet for acquisitions and investments.

AppLovin is a Palo Alto, Calif.-based mobile monetization platform that enables performance-based user acquisition campaigns for mobile game and other app developers.

Insight comes to market

Insight Global held a lender call in the afternoon to launch a fungible $30 million incremental first-lien term loan (B2/B-) due May 2025 talked at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99.5, a market source said.

Commitments are due at noon ET on Friday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a distribution to shareholders.

With this transaction, pricing on the company’s existing first-lien term loan will bump up to Libor plus 400 bps with a 1% Libor floor from Libor plus 350 bps with a 1% Libor floor to match the incremental term loan pricing.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

UFC seeks add-on

UFC launched in the morning without a lender call a fungible $435 million add-on first-lien term loan B due August 2023 priced in line with the existing first-lien term loan at Libor plus 325 bps with a 1% Libor floor, a market source remarked.

Original issue discount talk on the add-on term loan is still to be determined.

The add-on term loan and the existing $1,442,000,000 first-lien term loan B will get 101 soft call protection for six months, the source added.

Commitments are due on April 16.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance the company’s existing $425 million second-lien term loan due 2024.

UFC is a Las Vegas-based mixed martial arts organization and pay-per-view event provider.

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