Wheel Pros, FirstLight free up; PCI Gaming revises deadline; Vertafore, Hudson set talk

By Sara Rosenberg

New York, May 13 – Wheel Pros Inc.’s incremental first-lien term loan broke for trading on Monday with the debt quoted above its original issue discount, and FirstLight Fiber (Flight Bidco Inc.) saw its incremental term loans free up as well.

Moving to the primary market, PCI Gaming Authority (Wind Creek Hospitality) accelerated the commitment deadline for its first-lien term loan, and Royalty Pharma withdrew its term loan B from market.

Also, Vertafore Inc. and Hudson River Trading LLC released original issue discount guidance for their add-on first-lien term loans with their lender calls.

Furthermore, Core & Main LP emerged with add-on term loan B plans, and MoneyGram International Inc. is getting ready to launch a first-lien loan amendment and extension transaction to lenders.

Wheel Pros hits secondary

Wheel Pros’ fungible $326 million incremental first-lien term loan (B2/B) due April 4, 2025 began trading on Monday, with levels seen at 99¼ bid, 99¾ offered, a market source remarked.

Pricing on the incremental first-lien loan is Libor plus 475 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

UBS Investment Bank, Antares Capital, Deutsche Bank Securities Inc. and ING are leading the debt that will be used with a $90 million privately placed incremental second-lien term loan (Caa2/CCC+) to fund a transformative acquisition.

Pro forma EBITDA will be about $130 million, first-lien leverage will be around 4.25 times and total leverage will be about 5.5 times.

Wheel Pros is a distributor of proprietary branded wheels and performance tires.

FirstLight Fiber breaks

FirstLight Fiber’s incremental term loans also surfaced in the secondary market, with the fungible $80 million incremental first-lien term loan (B2/B-) due July 23, 2025 quoted at 98¾ bid, 99½ offered and the fungible $10 million incremental second-lien term loan (Caa2/CCC) due July 23, 2026 quoted at 98¼ bid, 99 offered, according to a market source.

Pricing on the incremental first-lien term loan is Libor plus 350 bps with a 0% Libor floor and it was sold at an original issue discount of 98.6.

The incremental second-lien term loan is priced at Libor plus 750 bps with a 0% Libor floor and it was issued at a discount of 98.3.

During syndication, the incremental first-lien term loan was upsized from $65 million.

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

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

PCI accelerated

Switching to the primary market, PCI Gaming Authority moved up the commitment deadline for its $1.3 billion seven-year first-lien term loan to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, a market source said.

Talk on the term loan is Libor plus 300 basis points to 325 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1.4 billion of credit facilities (Ba3/BB+/BBB-) also include a $100 million revolver.

Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets and Capital One are leading the deal that will be used to fund the acquisition of Sands Casino Resort in Bethlehem, Pa., from Las Vegas Sands Corp. for a total enterprise value of $1.3 billion.

Closing is subject to regulatory review and other customary conditions.

PCI Gaming, an authority of the Poarch Band of Creek Indians, is an Atmore, Ala.-based owner and operator of gaming and entertainment facilities.

Royalty Pharma pulled

Royalty Pharma shelved its $800 million seven-year incremental term loan B (Baa3/BBB-/BBB-) as the potential acquisition of a royalty stream in Keytruda is not occurring, a market source remarked.

The term loan B was talked at Libor plus 225 bps with a 0% Libor floor and an original issue discount of 99.5.

Bank of America Merrill Lynch was the left lead on the deal.

Royalty Pharma is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

Vertafore sets talk

Vertafore held its lender call on Monday and announced original issue discount talk of 98.625 on its fungible $170 million add-on covenant-lite first-lien term loan, according to a market source.

The add-on first-lien term loan is priced at Libor plus 325 bps with 0% Libor floor, and has 101 soft call protection for six months.

Commitments are due on May 21, the source said.

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

The existing first-lien term loan is sized at about $1.6 billion.

Bain Capital and Vista Equity Partners are the sponsors.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

Hudson holds call

Hudson River Trading hosted a lender call on Monday to launch a fungible $100 million add-on term loan B due April 2025 talked with an original issue discount of 99.5 to 99.75, a market source said.

The add-on term loan is priced at Libor plus 350 bps with a 0% Libor floor and has 101 soft call protection for six months.

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

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

The company is also seeking an amendment to its existing credit agreement to remove and revise some covenants.

Hudson River is a New York-based multi-asset class quantitative trading firm.

Core & Main readies loan

Core & Main scheduled a lender call for 2 p.m. ET on Tuesday to launch a fungible $225 million add-on term loan B (B2) due August 2024, a market source remarked.

Like the existing $1.06 billion term loan B, the add-on term loan B is priced at Libor plus 300 bps with a 25 bps step-down when total net leverage is less than 5.75 times and a 1% Libor floor.

The add-on loan is talked with an original issue discount of 99.25 to 99.5, the source added.

Commitments are due at 5 p.m. ET on May 22.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the acquisition of Long Island Pipe Supply Inc., a provider of fire protection products and fabrication services.

Closing on the acquisition is subject to regulatory approval and other customary conditions.

Core & Main, formerly known as HD Supply Waterworks, is a St. Louis-based distributor of water, sewer and fire protection products.

MoneyGram on deck

MoneyGram set a bank meeting for Tuesday to launch a $650 million to $675 million first-lien term loan due May 2023, according to market sources.

Official price talk on the loan is not yet available, but there are whispers that the debt may be talked around the area of Libor plus 525 bps to 550 bps with an original issue discount of 99, sources said.

Bank of America Merrill Lynch is leading the deal that will be used to amend and extend an existing first-lien term loan due March 2020.

Currently, there is about $900 million outstanding under the existing first-lien term loan. The company will repay $245 million of the debt with proceeds from a $245 million senior secured second-lien term loan.

Bank of America arranged the second-lien term loan. BPC Lending I LLC, an affiliate of Beach Point Capital Management, has committed to provide $200 million of the facility, and the Carlyle Group, or an affiliate, will also participate in a portion.

MoneyGram is a Dallas-based money transfer company.

© 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.