Catalent Pharma, LightBox, ThoughtWorks break; Oryx Midstream, FirstLight revise deals

By Sara Rosenberg

New York, May 9 – Catalent Pharma Solutions Inc. firmed the original issue discount on its first-lien term loan B at the tight end of revised talk, and then the loan emerged in the secondary market on Thursday above that issue price.

Also, LightBox Holdings lifted pricing on its term loan B debt, widened the original issue discount and extended the call protection before freeing up for trading, and ThoughtWorks Inc.’s term loan broke as well.

In other news, Oryx Midstream Services (Lower Cadence Holdings LLC) lowered the spread on its term loan B and firmed the issue price at the tight end of guidance, and FirstLight Fiber (Flight Bidco Inc.) increased the size of its incremental first-lien term loan.

Additionally, Berry Global Group Inc., Worley Claims Services LLC and Horizon Therapeutics plc (Horizon Pharma USA Inc.) disclosed price talk with launch, and IAA Spinco Inc., Autodata Group and MRO Holdings Inc. joined the near-term primary calendar.

Catalent updated, frees up

Catalent Pharma Solutions set the original issue discount on its $950 million seven-year first-lien term loan B at 99.75, the tight end of revised talk of 99.5 to 99.75 and tight of initial talk of 99, according to a market source.

The term loan B is priced at Libor plus 225 basis points with a 0% Libor floor and has 101 soft call protection for six months.

Previously in syndication, the term loan B was upsized from $650 million and pricing was trimmed from talk in the range of Libor plus 250 bps to 275 bps.

On Thursday afternoon, the term loan B freed to trade, with levels quoted at 99 7/8 bid, par ¼ offered by one trader and at par bid by a second trader.

J.P. Morgan Securities LLC is leading the loan that will be used with convertible preferred stock to fund the $1.2 billion acquisition of Paragon Bioservices Inc.

Closing is expected this quarter, subject to customary conditions.

Catalent is a Somerset, N.J.-based provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products. Paragon is a Baltimore-based viral vector development and manufacturing partner for gene therapies.

LightBox tweaked, trades

LightBox raised pricing on its $155 million seven-year term loan B and $35 million delayed-draw term loan B to Libor plus 500 bps from talk in the range of Libor plus 450 bps to 475 bps, revised the original issue discount to 98.5 from 99, extended the 101 soft call protection to one year from six months and modified the MFN to 50 bps for 24 months from 50 bps for 12 months, a market source said.

As before, the term loan debt has a 0% Libor floor.

The company’s $210 million of credit facilities also include a $20 million revolver.

Late in the afternoon, the funded and delayed-draw term loans broke for trading, with the strip quoted at 98¾ bid, 99¾ offered, a trader added.

RBC Capital Markets, Bank of America Merrill Lynch and Citizens Bank are leading the deal that will be used to fund acquisitions.

LightBox is a data and SaaS solutions provider supporting the commercial real estate diligence and risk management ecosystem. The company was formed by Silver Lake Partners and Battery Ventures after the acquisition of EDR in April 2018.

ThoughtWorks breaks

ThoughtWorks’ fungible $185 million incremental first-lien term loan (B2/B) due October 2024 began trading too, with levels seen at 99¾ bid, par ¼ offered, a market source remarked.

The incremental term loan is priced at Libor plus 400 bps with a 1% Libor floor, in line with the existing first-lien term loan, and was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

On Wednesday, the discount on the incremental term loan was revised from 99.

Credit Suisse Securities (USA) 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.

Oryx flexes lower

Back in the primary market, Oryx Midstream Services cut pricing on its $1.5 billion seven-year term loan B (B2/B/BB) to Libor plus 400 bps from Libor plus 450 bps and set the original issue discount at 99, the tight end of the 98.5 to 99 talk, according to a market source.

The term loan still has a 0% Libor floor and 101 soft call protection for one year.

Final commitments were due at 5 p.m. ET on Thursday, moved up from noon ET on Friday, the source added.

The company’s $1.65 billion of credit facilities also include a $150 million five-year super-priority revolver.

Barclays, Goldman Sachs Bank USA, RBC Capital Markets and Jefferies LLC are leading the deal that will be used to help fund the acquisition of the company by Stonepeak Infrastructure Partners from Quantum Energy Partners, Post Oak Energy Capital, Concho Resources, WPX Energy and other investors for about $3.6 billion, to refinance debt, to fund the required reserve accounts and for general corporate purposes.

Oryx is a Midland, Texas-based midstream crude operator in the Permian Basin.

FirstLight upsized

FirstLight Fiber raised its incremental first-lien term loan due July 2025 to $80 million from $65 million and left original issue discount talk at 98.6, a market source said.

The company still plans on getting a $10 million incremental second-lien term loan due July 2026 that is talked with a discount of 98.3.

Pricing on the incremental first-lien term loan is Libor plus 350 bps with a 0% Libor floor and pricing on the incremental second-lien term loan is Libor plus 750 bps with a 0% Libor floor.

Commitments remain due on Friday, the source added.

UBS Investment Bank is leading the deal that will be used to fund an acquisition and, because of the upsizing, for general corporate purposes.

FirstLight is an Albany, N.Y.-based fiber-optic bandwidth infrastructure services provider.

Berry U.S. loan talk

Berry Global Group held its New York bank meeting on Thursday and announced price talk on its $2.7 billion seven-year covenant-lite term loan B at Libor plus 250 bps to 275 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

As reported earlier, the company is also shopping a $1.5 billion equivalent euro seven-year covenant-lite term loan B talked at Euribor plus 275 bps to 300 bps with a 0% floor and a discount of 99.5, which was launched with a bank meeting in London on Wednesday.

The term loans have 101 soft call protection for six months, and ticking fees of half the margin from days 46 to 90 and the full margin plus Libor/Euribor thereafter.

Commitments are due on May 16.

Berry buying RPC

Berry will use the new term loans to help fund its acquisition of RPC Group plc for 793 pence per share in cash, or about £5 billion, including the refinancing of RPC’s net debt, and to pay fees and expenses associated with the transaction and refinancing of a term loan S due 2020.

Goldman Sachs, Wells Fargo, J.P. Morgan, Morgan Stanley and RBC are leading the $4.2 billion equivalent of term loans (Ba2/BBB-).

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

Berry is an Evansville, Ind.-based supplier of a non-woven, flexible and rigid products used within consumer and industrial end markets. RPC is a U.K.-based provider of plastic and recycled products for packaging and selected non-packaging markets.

Worley sets guidance

Worley Claims Services, in connection with its morning bank meeting, came out with price talk of Libor plus 400 bps with a 0% Libor floor and an original issue discount of 99 on its $300 million seven-year covenant-lite first-lien term loan and $50 million delayed-draw seven-year first-lien term loan, which are being sold on a pro rata basis, a market source remarked.

The term loan has 101 soft call protection for six months, and the delayed-draw term loan has 24-month availability and an undrawn fee of 1% from days 61 to 120 and 2% thereafter, the source added.

Commitments are due on May 22.

The company’s $520 million of credit facilities also include a $50 million five-year revolver and a $120 million privately placed second-lien term loan.

Antares Capital, Golub Capital, Madison Capital and Owl Rock Capital are leading the senior secured deal that will be used to help fund the buyout of the company by Kohlberg & Co. and Worley’s management team.

Worley is a Fishers, Ind.-based provider of insurance claims management services.

Horizon details surface

Horizon Therapeutics held its call in the morning and launched a $518 million seven-year senior secured covenant-lite term loan B talked at Libor plus 250 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, according to a market source.

Citigroup Global Markets Inc. is the left lead on the deal that will be used to reprice and extend an existing term loan B due March 2024 that is priced at Libor plus 275 bps with a 1% Libor floor.

Commitments from existing lenders are due at 5 p.m. ET on Wednesday and commitments from new lenders are due at 5 p.m. ET on May 16, the source said.

Closing is expected on May 22.

Horizon Therapeutics is a Dublin-based biopharmaceutical company.

IAA Spinco on deck

Also in the primary market, IAA Spinco set a bank meeting for 1:30 p.m. ET in New York on Monday to launch a $900 million seven-year term loan B talked at Libor plus 275 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on May 22, the source added.

J.P. Morgan Securities is leading the loan that will be used to pay a dividend to KAR Auction Services in connection with the company’s spin-off from KAR.

IAA Spinco is a Westchester, Ill.-based provider of salvage car auction solutions for total loss, damaged and low-value vehicles.

Autodata readies deal

Autodata Group scheduled a bank meeting for 1 p.m. ET on Wednesday to launch a $375 million seven-year first-lien term loan, according to a market source.

The company’s $590 million of credit facilities also include a $40 million revolver and a $175 million privately placed eight-year second-lien term loan, the source said.

RBC Capital Markets, KKR Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Thoma Bravo LLC from Internet Brands.

Closing is subject to customary conditions.

Autodata is a London, Ont.-based provider of data, technology platforms and services to the automotive industry.

MRO joins calendar

MRO Holdings will hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a $360 million senior secured term loan B, a market source remarked.

RBC Capital Markets is the lead left on the deal, which will be used to refinance existing debt and fund a distribution to shareholders.

Caoba Capital is the sponsor.

MRO Holdings is a provider of maintenance, repair and overhaul services to the airline and freight carrier industries.

© 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.