Jefferies, Autodata, Stats, BioScrip, IAA Spinco, Eastern Power, Nautilus, Sirius break

By Sara Rosenberg

New York, May 22 – Jefferies Finance LLC upsized its first-lien term loan and tightened the issue price, and Autodata Group moved some funds between its first-lien term loan and privately placed second-lien term loan, set the spread on the first-lien debt at the low end of talk and modified the original issue discount, and then both of these deals emerged in the secondary market on Wednesday.

Also, before breaking for trading, Stats LLC firmed the issue price on its term loan B at the middle of revised talk, BioScrip/Option Care Enterprises Inc. (HC Group Holdings II LLC) widened the spread and discount on its first-lien term loan B and extended the call protection, IAA Spinco Inc. downsized its term loan B, and Eastern Power LLC changed the original issue discount on its add-on term loan B.

Furthermore, Nautilus Power LLC increased the size of its add-on term loan B, revised the original issue discount and freed to trade, and Sirius Computer Solutions Inc.’s new loan hit the secondary market as well.

In more happenings, Octave Music Group Inc. pulled from market its add-on first-lien term loan and amendment and extension of its existing first- and second-lien term loans, Smart Foodservice (Sage Borrowco LLC) and Segra (MTN Infrastructure TopCo Inc.) released price talk with launch, and Blackstone CQP Holdco LP and AmeriLife Group LLC joined the near-term primary calendar.

Jefferies revised, frees up

Jefferies Finance raised its seven-year senior secured first-lien term loan (Ba2/BB-/BB) to $750 million from $700 million and adjusted the original issue discount to 99.75 from 99, according to a market source.

As before, the term loan is priced at Libor plus 375 basis points with a 0% Libor floor and has 101 soft call protection for six months.

The company’s now $1,025,000,000 of credit facilities also include a $275 million three-year priority revolver (Ba1/BB-/BB+).

After terms finalized on Wednesday, the first-lien term loan emerged in the secondary market and was seen quoted par bid, par ½ offered, another source added.

Jefferies LLC, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used with cash on hand and $400 million of senior secured notes, downsized from $450 million with the term loan upsizing, to refinance existing debt and reduce non-funding debt.

Closing is expected on June 3.

Jefferies is a New York-based leveraged loan arranger and investor with over $11 billion of managed capital equally owned by Jefferies Group LLC and Massachusetts Mutual Life Insurance Co.

Autodata reworked, trades

Autodata lifted its seven-year first-lien term loan to $400 million from $375 million, finalized pricing at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, changed the original issue discount to 99.75 from 99.5 and revised the MFN to 50 bps for 12 months from 75 bps for six months, a market source said.

The first-lien term loan still has a 0% Libor floor and 101 soft call protection for six months.

With the first-lien term loan upsizing, the company scaled back its privately placed eight-year second-lien term loan to $150 million from $175 million, the source said.

The company’s $590 million of credit facilities also include a $40 million revolver (B2/B-).

Commitments were due at noon ET on Wednesday and, later in the day, the first-lien term loan freed to trade, with levels quoted at 99 7/8 bid, par 1/8 offered, a trader added.

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.

Stats finalized, hits secondary

Stats firmed the original issue discount on its $400 million seven-year covenant-lite first-lien term loan B (B2/B-) at 97.5, the midpoint of revised talk of 97 to 98 and wide of initial talk of 99, a market source remarked.

The loan is priced at Libor plus 525 bps with a 0% Libor floor and has 101 soft call protection for one year.

Previously in syndication, the spread on the term loan was raised from talk in the range of Libor plus 450 bps to 475 bps and the call protection was extended from six months.

By late day, the term loan began trading, with levels quoted at 98 bid, 99 offered, a trader added.

The Chicago-based sports data, technology, statistics and content company is also getting a £50 million five-year revolver and a $140 million privately placed second-lien term loan.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, HSBC Bank USA, Mizuho Bank, Barclays and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the acquisition of Perform, a London-based sports content company, from DAZN Group and to pay fees and expenses related to the transaction.

The acquisition of Perform was enabled by an investment from Vista Equity Partners.

Closing is expected in the second half of this year, subject to customary conditions and regulatory approvals.

BioScrip modifies loan

BioScrip/Option Care flexed pricing on its $925 million seven-year covenant-lite first-lien term loan B (B2/B-) to Libor plus 450 bps from talk in the range of Libor plus 400 bps to 425 bps, revised the original issue discount to 99 from 99.5 and extended the 101 soft call protection to one year from six months, while leaving the 0% Libor floor intact, according to a market source.

The term loan has a ticking fee of half the margin for days 46 to 90 and the full margin thereafter.

Recommitments were due at 3 p.m. ET on Wednesday, the source said.

Bank of America Merrill Lynch is leading the loan.

The company is also getting a $150 million five-year asset-based revolver with initial pricing of Libor plus 250 bps. The spread can range from Libor plus 225 bps to 275 bps based on average excess availability.

BioScrip tops OID

Late in the session, BioScrip/Option Care’s credit facilities broke for trading, with the term loan quoted at 99¼ bid, 99¾ offered, a trader added.

Proceeds will be used to support the merger of the two companies. BioScrip will issue new shares to Option Care’s shareholder, which is owned by investment funds affiliated with Madison Dearborn Partners LLC and Walgreens Boots Alliance Inc., in an all-stock transaction. At closing, Madison Dearborn funds and Walgreens will beneficially own about 80% of the combined publicly traded company on a fully diluted basis, with current BioScrip shareholders holding the remainder.

Other funds for the transaction will come from $400 million of privately placed eight-year senior secured second-lien PIK toggle notes.

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

First-lien debt to pro forma adjusted EBITDA is 4.3 times and total debt to pro forma adjusted EBITDA is 6.2 times.

BioScrip and Option Care are providers of home and alternate treatment site infusion therapy services.

IAA downsizes, trades

IAA Spinco reduced its seven-year term loan B to $800 million from $900 million and increased its senior notes offering to $500 million from $400 million, a market source said.

The term loan is priced at Libor plus 225 bps with a 0% Libor floor and an original issue discount of 99.75, and has 101 soft call protection for six months.

On Tuesday, the spread on the term loan was cut from talk in the range of Libor plus 250 bps to 275 bps and the discount was revised from 99.

With final terms in place, the term loan B freed up for trading and levels were quoted at par ¼ bid, par ¾ offered, a trader added.

J.P. Morgan Securities is leading the loan, which will be used with the bonds to pay a dividend to KAR Auction Services in connection with IAA Spinco’s spinoff from KAR.

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

Eastern Power tweaked, breaks

Eastern Power modified the original issue discount on its $150 million add-on term loan B (Ba3/BB-) due Oct. 2, 2023 to 99.5 from 99.01, according to a market source.

Pricing on the add-on term loan is Libor plus 375 bps with a 1% Libor floor, and the debt has 101 soft call protection for six months.

Recommitments were due at 3:30 p.m. ET on Wednesday and then the loan emerged in the secondary market, with levels quoted at par bid, par ½ offered, a trader added.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund a distribution to the sponsor and pay related fees and expenses.

The company is also amending its existing credit facility and lenders were offered a 25 bps amendment fee.

Closing is expected on Thursday.

Eastern Power is an owner of gas-fired electric generating stations.

Nautilus updated, frees up

Nautilus Power raised its add-on term loan B due May 16, 2024 to $70 million from $55 million and moved the original issue discount to 99.5 from 99, a market source remarked.

The add-on term loan is priced at Libor plus 425 bps with a 1% Libor floor and has 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Wednesday and the loan started trading late in the day, with levels quoted at par ¼ bid, 101 offered, a trader added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to fund a distribution to the sponsor.

The company is also amending its existing credit facility and lenders were offered a 50 bps consent fee.

Closing is expected on Friday.

Nautilus is a Massachusetts-based wholesale power generation and marketing company.

Sirius begins trading

Sirius Computer’s credit facilities broke for trading too, with the $750 million seven-year covenant-lite first-lien term loan quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 425 bps with a step-down to Libor plus 400 bps at 5 times total net leverage and a 0% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

On Tuesday, pricing on the term loan firmed at the low end of the Libor plus 425 bps to 450 bps talk, the step-down was added and the discount was changed from 99.5.

The company’s $940 million of credit facilities (Ba3/B) also include a $190 million revolver.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., UBS Investment Bank, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, ING, Macquarie Capital (USA) Inc., MUFG, Natixis, Nomura, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Clayton, Dubilier & Rice from Kelso & Co.

Closing is expected late this quarter, subject to regulatory approvals and other customary conditions.

Sirius is a San Antonio-based provider of mission-critical IT infrastructure solutions.

Octave withdrawn

Back in the primary market, Octave Music pulled its fungible $20 million add-on first-lien term loan due May 2023 and amendment and extension of its existing $232 million first-lien term loan by two years to May 2023 and $47.5 million of the existing second-lien term loan by two years to May 2024, according to a market source.

The add-on first-lien term loan was talked at Libor plus 475 bps with a 1% Libor floor and an original issue discount of 99.5. Pricing on the extended first-lien term loan was talked at Libor plus 475 bps with a 1% Libor floor, and pricing on the extended second-lien term loan was talked at Libor plus 825 bps with a 1% Libor floor, in line with current first- and second-lien loan pricing.

The second-lien term loan is currently sized at $77.5 million but was going to be paid down with proceeds from the add-on first-lien term loan and $10 million of cash on hand.

The add-on and extended first-lien term loan debt were talked with 101 soft call protection for six months and the extended second-lien term loan was talked with 101 hard call protection for six months.

Existing first- and second-lien term loan lenders were offered a 25 bps extension/amendment fee.

Citizens Bank was leading the deal for Octave Music, a New York-based interactive entertainment platform.

Smart Foodservice guidance

Smart Foodservice held its bank meeting on Wednesday and announced talk on its $405 million seven-year covenant-lite term loan B at Libor plus 475 bps to 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $455 million of senior secured credit facilities (B2/B) also include a $50 million revolver.

Commitments are due at the close of business on June 5, the source added.

Deutsche Bank Securities Inc., BMO Capital Markets Corp., RBC Capital Markets, Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the deal that will be used to help fund the buyout of Smart & Final Stores Inc. by Apollo Global Management LLC.

Closing is expected by the third quarter, subject to more than 50% of the company’s shares being tendered, regulatory approvals and other customary conditions.

Smart Foodservice is a Portland, Ore.-based retailer of bulk foodservice offerings almost exclusively catering to small restaurant businesses and commercial customers.

Segra reveals talk

Segra hosted a lender call at 2 p.m. ET, launching a $100 million add-on senior secured covenant-lite term loan B due Nov. 17, 2024 with original issue discount talk of 99 to 99.25, a market source said.

Pricing on the add-on term loan is Libor plus 300 bps with a 1% Libor floor.

Commitments are due at 10 a.m. ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the deal that will be used for general corporate purposes including capital expenditure.

Segra, formerly known as Lumos, is a fiber-based service provider.

Blackstone CQP on deck

Blackstone CQP Holdco set a lender presentation for 2 p.m. ET on Tuesday to launch a $2.5 billion senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance existing debt, fund a distribution, and pay transaction fees and expenses.

Blackstone CQP owns about a 40% interest in Cheniere Energy Partners LP. CQP owns Sabine Pass Liquefaction LLC, which owns and operates five-fully operational and fully-contracted LNG trains, with a fully-permitted, planned sixth train in late-stage development.

AmeriLife joins calendar

AmeriLife Group will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch $395 million of credit facilities, a market source remarked.

The facilities consist of a $40 million revolver (B), a $285 million seven-year covenant-lite first-lien term loan (B), of which $35 million is delayed-draw, and a $70 million eight-year covenant-lite second-lien term loan (CCC+), the source said.

The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on June 6, the source added.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and Deutsche Bank Securities Inc. are leading the deal that will refinance existing debt, fund tuck-in acquisitions and finance a shareholder distribution.

AmeriLife is a Clearwater, Fla.-based developer, marketer and distributor of annuity, life and health insurance solutions.

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