Allied Universal, ERM, Upland Software, Corel, Hexion, Curium Pharma, Vast Broadband break

By Sara Rosenberg

New York, June 27 – Allied Universal Holdco LLC reduced the size of its funded first-lien term loan, finalized pricing and extended the call protection, and ERM set the issue price on its U.S. and euro first-lien term loans at the tight side of revised talk, and then both of these deals began trading on Thursday.

Also, before surfacing in the secondary market, Upland Software Inc. firmed pricing on its first-lien term loan at the low end of guidance and Corel Corp. finalized the original issue discount on its first-lien term loan at the wide end of revised talk.

Other deals to free up for trading during the session included Hexion Inc., Curium Pharma and Vast Broadband.

In more happenings, Circa Resort & Casino (18 Fremont Street Acquisition LLC) downsized its first-lien term loan and increased the Libor floor, and St. Joseph Energy Center set the original issue discount on its add-on term loan B at the tight end of guidance.

Furthermore, Output Services Group Inc. (OSG Billing Services) and Socotec released price talk with launch, and Mirion Technologies Inc. came to market with an add-on term loan B.

Allied revised, frees up

Allied Universal scaled back its funded seven-year covenant-lite first-lien term loan to $2.02 billion from a revised amount of $2.22 billion and an initial size of $2.52 billion, firmed pricing on the funded term loan and on the $200 million seven-year covenant-lite delayed-draw first-lien term loan at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, and extended the 101 soft call protection to one year from six months, according to a market source.

The first-lien term loan debt still has a 0% Libor floor and an original issue discount of 99.

The company’s now $2.52 billion of credit facilities (B3/B-/BB-) also include a $300 million revolver.

On Thursday, the debt broke for trading, with the strip of funded and delayed-draw term loan debt quoted at 99¼ bid, 99¾ offered, another source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used with $2.05 billion of secured and unsecured notes, upsized from $1.55 billion with the term loan downsizing, to refinance existing debt.

Allied Universal is a Santa Ana, Calif.-based provider of security services.

ERM updated, trades

ERM firmed the original issue discount on its $500 million seven-year covenant-lite first-lien term loan B (B1/B) and €180 million seven-year covenant-lite first-lien term loan B (B1/B) at 99.75, the tight end of revised guidance of 99.5 to 99.75 and tighter than initial talk of 99.5, according to a market source.

The first-lien term loans are priced at Libor/Euribor plus 375 bps with a 0% floor and have 101 soft call protection for six months.

Previously in syndication, pricing on the first-lien term loans was cut from Libor/Euribor plus 400 bps.

On Thursday afternoon, the U.S. first-lien term loan made its way into the secondary market and levels were seen at par bid, par ½ offered, another source added.

The company is also getting a $175 million eight-year pre-placed covenant-lite second-lien term loan (Caa1/CCC+) priced at Libor plus 775 bps with a 0% Libor floor and an original issue discount of 98. This tranche has call protection of 102 in year one and 101 in year two.

Citigroup Global Markets Inc. is the global coordinator and physical bookrunner on the deal that will be used to refinance existing credit facilities. HSBC, ING, J.P. Morgan Securities LLC and RBC Capital Markets are joint bookrunners.

ERM is a provider of environmental, health, safety, and risk consulting and sustainability related services.

Upland sets spread, breaks

Upland Software finalized the spread on its $350 million seven-year covenant-lite first-lien term loan at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, a market source remarked.

As before, the term loan has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $380 million of credit facilities (B2/B) also include a $30 million revolver.

Recommitments were due at 10 a.m. ET on Thursday and, later in the day, the debt began trading, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Credit Suisse is the left lead on the deal that will be used to refinance existing debt.

Upland Software is an Austin, Texas-based service-as-a-solution (SaaS) provider of enterprise work management software.

Corel finalized, frees up

Corel firmed the original issue discount on its $485 million seven-year covenant-lite first-lien term loan (B2/B-) at 95, the wide end of revised guidance of 95 to 96 and wide end of initial talk of 99, a market source said.

The first-lien term loan is priced at Libor plus 500 bps with a 0% Libor floor, and has 101 soft call protection for one year.

Earlier in syndication, the first-lien term loan was downsized from $550 million as a privately placed second-lien term loan was upsized to $200 million from $135 million, the call protection was extended from six months, amortization was increased, and changes were made to the accordion and mandatory prepayments.

Late in the day, the first-lien term loan freed to trade and was quoted at 95 bid by one trader and at 95¼ bid, 96¼ offered by a second trader.

The company’s $745 million of senior secured credit facilities also include a $60 million revolver (B2/B-).

Citigroup, KKR Capital Markets and Barclays are leading the deal that will be used to help fund the buyout of the Ottawa-based software company by KKR from Vector Capital.

Closing is expected in early July.

Hexion hits secondary

Hexion’s bank debt freed up for trading too, with the $725 million seven-year term loan (Ba3/BB-) quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 350 bps with a 0% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

The Columbus, Ohio-based chemical company is also getting $350 million ABL revolver and a €425 million seven-year term loan (Ba3/BB-).

Pricing on the euro term loan is Euribor plus 400 bps with a 0% floor, and it was issued at a discount of 99. This tranche has 101 soft call protection for one year as well.

During syndication, the U.S. term loan was upsized from $600 million and pricing finalized at the low end of the Libor plus 350 bps to 375 bps talk, and the euro term loan was downsized from about €540 million and pricing firmed at the high end of the Euribor plus 375 bps to 400 bps talk.

Hexion lead banks

JPMorgan, Credit Suisse, Goldman Sachs Bank USA, Citigroup, Barclays and Deutsche Bank Securities Inc. are leading Hexion’s bank debt.

Proceeds will be used to help fund the company’s exit from bankruptcy, fund plan distributions and repay debtor-in-possession facilities.

Closing is expected on Monday.

Curium begins trading

Curium Pharma’s loans broke as well, with the around $495 million (€435 million equivalent) dollar seven-year term loan (B2//BB-) quoted at 99½ bid, par ¼ offered and the €300 million seven-year term loan (B2//BB-) quoted at par ¾ bid, 101¼ offered, a trader remarked.

Pricing on the U.S. term loan is Libor plus 400 bps with a 25 bps step-down based on leverage and a 0% Libor floor. The loan was sold at an original issue discount of 99.25 and has 101 soft call protection for six months.

The euro term loan is priced at Euribor plus 375 bps with two 25 bps step-downs and a 0% floor. This tranche was issued at par and has 101 soft call protection for six months.

JPMorgan is the physical bookrunner on the U.S. loan, and Barclays and JPMorgan are the physical bookrunners on the euro loan. Citigroup is a bookrunner on the euro loan.

Curium refinancing

Proceeds from Curium’s term loans will be used to refinance existing debt.

During syndication, the U.S. term loan was downsized from around $550 million (€485 million equivalent), pricing firmed at the low end of the Libor plus 400 bps to 425 bps talk, the step-down was added and the discount was revised from 99. Also, the euro term loan was upsized from €250 million, the spread finalized at the low end of revised talk of Euribor plus 375 bps to 400 bps and down from initial talk in the range of Euribor plus 400 bps to 425 bps, the step-downs were added and the issue price was tightened from 99.5. Additionally, changes were made to the incremental facility, excess cash flow sweep, restricted payments, asset sales and financial reporting.

Curium is a Paris-based nuclear medicine company.

Vast tops OID

Another deal to hit the secondary market was Vast Broadband, with its $237.5 million seven-year first-lien term loan B (B2/B) seen at 99½ bid, par offered, a market source said.

Pricing on the first-lien term loan is Libor plus 450 bps 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.

During syndication, the spread on the first-lien term loan was set at the high end of the Libor plus 425 bps to 450 bps talk.

The company’s $387.5 million of credit facilities also include a $75 million five-year revolver (B2/B) and a $75 million privately placed second-lien term loan.

SunTrust Robinson Humphrey Inc., TD Securities (USA), CoBank and Webster Bank are leading the deal that will be used to help fund the acquisition of NTS Communications from Tower Three Partners and recapitalization of Vast by Oak Hill Capital Partners and Pamlico Capital.

Vast Broadband is a provider of broadband, video and voice services. NTS is a broadband fiber company.

Circa changes emerge

Back in the primary market, Circa Resort & Casino cut its six-year first-lien term loan to $450 million from $550 million and lifted the Libor floor to 1.5% from 0%, according to a market source.

As before, the term loan is priced at Libor plus 800 bps with an original issue discount of 98 and is non-callable for 1.5 years, then at 102 for a year and 101 for a year.

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

Credit Suisse is leading the deal that will be used to fund the construction of the Circa Resort in Las Vegas.

Additional equity will be used for the transaction due to the term loan downsizing, the source added.

St. Joseph firms OID

St. Joseph Energy Center finalized the original issue discount on its fungible $21.5 million add-on term loan B (Ba3/BB-) at 99.5, the tight end of the 99 to 99.5 talk, a market source remarked.

The add-on term loan is priced at Libor plus 350 bps with a 1% Libor floor.

BNP Paribas Securities Corp. is leading the deal that will be used to support the company’s investment in installing diesel generator units to jump start the grid in the event of a system-wide outage.

The add-on term loan will be fungible with the existing term loan B post-upgrade of the project.

St. Joseph Energy Center is a natural gas-fired combined cycle generation facility in New Carlisle, Ind.

Output Services guidance

Output Services Group held its bank meeting on Thursday and disclosed price talk on its roughly $497 million equivalent of term loans, a market source said.

Talk on the roughly $232 million equivalent sterling-denominated incremental first-lien term loan (B3) due March 2024 is Libor plus 500 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, and talk on the roughly $265 million second-lien term loan (Caa3) due September 2024 is Libor plus 875 bps to 900 bps with a 1% Libor floor, a discount of 97.5 and call protection of 102 in year one and 101 in year two, the source added.

Commitments are due at noon ET on July 12.

Barclays is leading the deal that will be used to take out the existing M&A financing and bring Communisis into the existing financing credit group.

Output Services is a Ridgefield Park, N.J.-based provider of billing and customer communications services.

Socotec price talk

Socotec announced talk of Libor plus 425 bps with a 0% Libor floor and an original issue discount of 99 to 99.5 on its $190 million covenant-lite term loan due July 2024 that launched with a bank meeting during the session, according to a market source.

Furthermore, the company’s €150 million covenant-lite add-on term loan due July 2024 was launched with original issue discount talk of 99.5 to par, the source said. Pricing on the euro add-on term loan is Euribor plus 375 bps with a 0% floor.

Commitments are due on July 11.

BNP Paribas and Deutsche Bank are leading the deal that will be used to fund an acquisition and refinance existing debt.

Socotec is a France-based identifier, assessor and manager of risks in the areas of quality, health and safety, and environment.

Mirion seeks add-on

Mirion Technologies launched in the morning a fungible $34 million covenant-lite add-on term loan B due March 6, 2026 with original issue discount talk of 99.5 to 99.75, a market source remarked.

The add-on term loan is priced at Libor plus 400 bps with a 0% Libor floor and has 101 soft call protection through September.

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

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund tuck-in acquisitions and pay related fees and expenses.

Mirion Technologies is a provider of radiation detection, measurement, analysis and monitoring products to nuclear power, medical, military, and homeland security markets.

CHG allocates

In other news, CHG Healthcare Services Inc. allocated its fungible $50 million incremental first-lien term loan (B2/B) due June 7, 2023 on Thursday, according to a market source.

Pricing on the incremental term loan is Libor plus 300 bps with a 1% Libor floor, in line with existing term loan pricing, and it was sold at an original issue discount of 99.75.

Jefferies LLC is leading the deal that will be used for general corporate purposes.

Closing is expected this week.

CHG is a Salt Lake City-based health-care staffing firm.

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