Sundyne frees up; JBS, Tamko, API, Kontoor, II-VI, NVA, Flexera, Wells Enterprises set talk

By Sara Rosenberg

New York, April 23 – Sundyne US Purchaser Inc. finalized the spread on its term loan B at the low end of guidance and tightened the original issue discount, and then the debt made its way into the secondary market on Tuesday.

In more happenings, JBS USA Lux SA, Tamko Building Products Inc., API Technologies Corp., Kontoor Brands Inc., II-VI Inc., NVA Holdings Inc., Flexera Software LLC and Wells Enterprises Inc. released price talk with launch.

Furthermore, ThoughtWorks Inc. and Digital Room Holdings Inc. emerged with new deal plans.

Sundyne revised, breaks

Sundyne set pricing on its $450 million seven-year covenant-lite first-lien term loan B at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and adjusted the original issue discount to 99.75 from 99, a market source said.

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

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

Recommitments were due at 3 p.m. ET on Tuesday and, late in the day, the term loan B freed to trade with levels quoted at par 1/8 bid, par 5/8 offered, a trader 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.

Closing is expected in May.

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

JBS floats guidance

JBS USA held its lender call on Tuesday and announced talk for its $1.9 billion seven-year term loan B (Ba2) at Libor plus 250 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Thursday.

Barclays is the sole bookrunner on the deal and a joint lead arranger with BMO Capital Markets, RBC Capital Markets, Rabobank, SunTrust Robinson Humphrey Inc. and U.S. Bank.

The new term loan B will be used with $150 million of add-on 5.875% senior unsecured notes due 2024, $150 million of add-on 5.75% senior unsecured notes due 2025, $400 million of add-on 6.5% senior unsecured notes due 2029 and cash from the balance sheet to refinance an existing term loan B due 2022.

JBS is a Greeley, Colo.-based animal protein products processing company.

Tamko reveals talk

Tamko Building Products disclosed talk of Libor plus 350 bps to 375 bps with a 0% Libor floor and an original issue discount of 99 on its $600 million seven-year term loan B (B2/BB-) that launched with a bank meeting during the session, a market source remarked.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on May 7, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and fund a redemption of equity interests.

Carlyle Global Partners is becoming a minority investor in the company.

Tamko is a Joplin, Mo.-based manufacturer of residential roofing products, decking and railing products, waterproofing, cements and coatings.

API hosts meeting

API Technologies held its bank meeting in the morning and released talk of Libor plus 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $245 million first-lien term loan (B2/B), according to a market source.

Commitments are due at 5 p.m. ET on May 6, the source said.

The company’s $435 million of credit facilities also include a $50 million revolver (B2/B) that will be undrawn at close, a $90 million privately placed second-lien term loan and a $50 million privately placed second-lien delayed-draw term loan, which will be unfunded at close.

RBC Capital Markets, UBS Investment Bank and Antares Capital are leading the deal that will be used to help fund the buyout of the company by AEA Investors from J.F. Lehman & Co.

Closing is expected on May 9, the source added.

API is a Marlborough, Mass.-based provider of high-performance RF, microwave, millimeterwave, power and security solutions for defense, aviation, communications and other commercial and industrial end markets.

Kontoor proposed terms

Kontoor Brands set price talk on its $300 million seven-year covenant-lite term loan B and $750 million five-year term loan A in connection with its morning bank meeting, a market source said.

The term loan B is talked at Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the term loan A is talked at Libor plus 175 bps with a 0% Libor floor and a 25 bps upfront fee, the source added.

Commitments are due at 5 p.m. ET on May 7.

J.P. Morgan Securities LLC and Barclays are the lead banks on the loans (Ba2/BB-), which will be used to help fund the company’s spinoff from VF Corp. and for general corporate purposes.

Closing is expected in the first half of this year, subject to customary conditions.

Kontoor Brands is a Greensboro, N.C.-based jeanswear company.

II-VI term B talk

II-VI Inc. launched at its afternoon bank meeting its $800 million seven-year covenant-lite term loan B (B1/BB-/BB+) with talk of Libor plus 300 bps with a 0% Libor floor, an original issue discount of 99, 101 soft call protection for six months, and a ticking fee of half the spread from days 46 to 75, the full spread from days 76 to 100 and the full spread plus Libor thereafter, a market source remarked.

Commitments are due at noon ET on May 7, the source added.

Bank of America Merrill Lynch, PNC Bank, BMO Capital Markets, Citizens Bank, Fifth Third, MUFG, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are leading the deal that will be used to help fund the acquisition of Finisar Corp. for $15.60 per share in cash and 0.2218x shares of II-VI common stock. The transaction is valued at about $3.2 billion.

II-VI pro rata debt

II-VI revealed recently in an 8-K filed with the Securities and Exchange Commission that it closed on a $450 million five-year revolver and a $1,175,000,000 five-year term loan A for the acquisition, but that funding is subject to completion of the purchase.

Initial pricing on the revolver and term loan A is Libor plus 200 bps, and Bank of America is the administrative agent on the debt.

The acquisition will also be funded with $1 billion of combined balance sheet cash.

Net total leverage at close is expected to be around 3.5 times.

Closing is expected middle of this year, subject to regulatory approvals and other customary conditions.

II-VI is a Saxonburg, Pa.-based engineered materials and optoelectronic components company. Finisar is a Sunnyvale, Calif.-based optical communications company.

NVA launches

NVA Holdings held its call in the morning, launching its non-fungible $200 million incremental first-lien term loan (B) due February 2025 at talk of Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 98.5 to 99, according to a market source.

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

Bank of America Merrill Lynch is the left lead on the deal that will be used to fund acquisitions under signed letters of intent, to refinance revolver borrowings and to fund cash to the balance sheet for future acquisitions.

NVA is an Agoura Hills, Calif.-based owner of independent freestanding veterinary hospitals.

Flexera sets guidance

Flexera Software revealed price talk on its $260 million of incremental term loans with its lender call on Tuesday, a market source said.

Talk on the fungible $220 million incremental first-lien term loan due February 2025 is Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the fungible $40 million incremental second-lien term loan due February 2026 is Libor plus 725 bps with a 0% Libor floor and a discount of 98.75, the source continued.

Pricing on the incremental second-lien term loan matches existing second-lien loan pricing, and the call protection on the incremental loan will match the existing second-lien call protection.

The spread on the company’s existing first-lien term loan is being increased to Libor plus 350 bps from Libor plus 325 bps with this transaction.

Flexera funding dividend

Flexera’s incremental term loans will be used to finance a distribution to shareholders.

Jefferies LLC is leading the deal.

In connection with the transaction, the company is seeking an amendment to its credit agreement and offering lenders a 15 bps consent fee.

Amendment consents are due at 3 p.m. ET on Monday and commitments are due at 3 p.m. ET on April 30, the source added.

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.

Wells Enterprises OID talk

Wells Enterprises came out with original issue discount talk of 99 to 99.5 on its fungible $100 million add-on covenant-lite term loan (B1/BB) due 2025 that launched with a call during the session, a market source remarked.

Pricing on the add-on term loan is Libor plus 275 bps with a 0% Libor floor, and the new debt, along with the existing roughly $173 million term loan, will get 101 soft call protection for six months, the source added.

Commitments are due at 5 p.m. ET on May 7.

BMO Capital Markets is leading the deal, which will be used to fund the acquisition of Fieldbrook Foods from Arbor Investments.

Wells Enterprises is a Le Mars, Iowa-based owned ice cream and frozen treat manufacturer. Fieldbrook Foods is a Dunkirk, N.Y.-based ice cream producer.

ThoughtWorks on deck

ThoughtWorks set a lender call for 11 a.m. ET on Wednesday to launch a $185 million fungible incremental first-lien term loan due October 2024, according to a market source.

The incremental term loan has 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on May 7.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund a shareholder distribution.

ThoughtWorks is a Chicago-based pure play digital transformation services provider.

Digital Room readies deal

Digital Room will hold a bank meeting at 10 a.m. ET on Thursday to launch $395 million of credit facilities, a market source said.

The facilities consist of a $30 million revolver, a $280 million first-lien term loan and an $85 million second-lien term loan, the source added.

KKR Capital Markets, BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are leading the deal that will be used for a dividend recapitalization.

Digital Room is an e-commerce provider in the online short-run print market.

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