Aldevron, Peabody, Advanced Computer, Howden, CoAdvantage, Dell, Sensata, ESH set talk

By Sara Rosenberg

New York, Sept. 5 – In the primary market on Thursday, Aldevron LLC, Peabody Energy Corp., Advanced Computer Software Group Ltd., Howden, CoAdvantage (AQ Carver Buyer Inc.), Dell Technologies, Sensata Technologies Inc., Extended Stay America Inc. (ESH Hospitality Inc.) and OEConnection LLC disclosed price talk with launch.

Furthermore, Del Frisco’s Restaurant Group Inc., Vungle Inc., CPI International Inc. (Communications & Power Industries), ALKU LLC and Wells Enterprises Inc. hopped onto the near-term calendar.

Aldevron comes to market

Aldevron held its lenders’ presentation on Thursday and launched its $740 million seven-year covenant-lite first-lien term loan B (B1/B) at talk of Libor plus 400 basis points to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Sept. 19, the source said.

The company’s $1.125 billion of credit facilities also include a $125 million five-year revolver (B1/B), and a $260 million privately placed eight-year covenant-lite second-lien term loan priced at Libor plus 750 bps with a 0% Libor floor. The second-lien loan has hard call protection of 102 in year one and 101 in year two.

Morgan Stanley Senior Funding Inc., Antares Capital and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of a majority interest in the company by EQT Partners AB and pay related fees and expenses. Existing private equity sponsor TA Associates will retain a minority stake in the company.

Closing is expected by year-end, subject to regulatory conditions and approvals.

Aldevron is a Fargo, N.D.-based supplier of nucleic acids, proteins and antibodies.

Peabody sets guidance

Peabody Energy launched on its afternoon call its $900 million seven-year term loan B (BB+) at talk of Libor plus 300 bps to 325 bps with a 0% Libor floor and an original issue discount of 99, a market source said.

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

Commitments are due at 5 p.m. ET on Sept. 12.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund tender offers for the company’s $500 million 6% senior secured notes due 2022 and $500 million 6 3/8% senior secured notes due 2025 and to refinance an existing term loan B.

The company is also looking to get a larger revolver to refinance its existing revolver.

Peabody is a St. Louis-based private sector coal company.

Advanced Computer terms

Advanced Computer released talk of Libor plus 425 bps to 450 bps with a 25 bps step-down at 4.5x first-lien net leverage, a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $407 million seven-year covenant-lite first-lien term loan B that launched with a lenders’ presentation in the afternoon, according to a market source.

The company is also getting a £75 million five-year revolver, and a £200 million seven-year covenant-lite first-lien term loan B that is talked at Libor plus 475 bps with a 0% floor, a discount of 99 and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Sept. 19, the source added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Macquarie Capital (USA) Inc. are leading the deal (B-), which will be used to fund the refinancing and recapitalization of the company and pay fees and expenses related to the transaction.

Advanced Computer is a U.K.-based provider of software and IT services.

Howden discloses talk

Howden launched at its morning meeting its $925 million seven-year covenant-lite term loan B (B1/B) with talk of 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, a market source remarked.

Commitments are due at noon ET on Sept. 19.

J.P. Morgan Securities LLC, Barclays, BNP Paribas Securities Corp., RBC Capital Markets and HSBC Securities (USA) Inc. provided the debt commitment that will be used with equity to fund the buyout of the company by KPS Capital Partners LP from Colfax Corp. for $1.8 billion, including $1.66 billion in cash consideration and $140 million in assumed liabilities and minority interest.

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

Howden is a Glasgow, Scotland-based provider of mission critical air and gas handling products and services to the industrial, power, oil & gas and mining industries.

CoAdvantage guidance

CoAdvantage hosted its bank meeting in the morning and released price talk on its $325 million seven-year covenant-lite first-lien term loan (B2/B) and $130 million eight-year covenant-lite second-lien term loan (Caa2/CCC), according to a market source.

First-lien term loan talk is Libor plus 450 bps with a 0% Libor floor and an original issue discount of 99.5, and second-lien term loan talk is Libor plus 850 bps with a 0% Libor floor and a discount of 99, the source said.

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

The company’s $500 million of credit facilities also provide for a $45 million revolver (B2/B).

Commitments are due at noon ET on Sept. 19, the source added.

Deutsche Bank Securities Inc., Antares Capital and Madison Capital are leading the deal that will help fund the buyout of the company by Aquiline Capital Partners from Morgan Stanley Capital Partners.

Closing is subject to customary conditions, including regulatory approvals.

CoAdvantage is a Tampa, Fla.-based professional employer organization and a provider of strategic human resource solutions.

Dell shops loan

Dell Technologies launched in the morning without a lender call a $4 billion term loan B (Baa3/BBB-/BBB-) due September 2025 talked at Libor plus 200 bps to 225 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Sept. 12, the source added.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal that will be used to with $912.5 million of balance sheet cash to refinance an existing term loan B due 2023.

Dell Technologies is a Round Rock, Tex.-based technology company.

Sensata proposed terms

Sensata Technologies came out with talk of Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months on its roughly $913 million seven-year covenant-lite senior secured term loan B (Baa3/BBB-) that launched with a morning call, according to a market source.

Commitments and consents are due at noon ET on Sept. 17, the source said.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Barclays, BofA Securities, Inc., Mizuho Bank and RBC Capital Markets are leading the deal that will be used to amend and extend an existing term loan B.

Sensata is a producer of sensors and controls for manufacturers in the automotive, appliance, aircraft, industrial and HVAC markets.

Extended Stay launches

Extended Stay held its lender call in the morning and announced talk on its $631 million seven-year covenant-lite term loan B (Ba2/BB+) at Libor plus 200 bps with a 0% Libor floor and an original issue discount of 99.5, a market source remarked.

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

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to amend and extend $631 million of the company’s existing term loan B due 2023. The remaining term loan B balance will be repaid by an expected issuance of $500 million of new notes.

Commitments from existing lenders are due at 5 p.m. ET on Tuesday and commitments from new lenders are due at noon ET on Wednesday.

Extended Stay is a Charlotte, N.C.-based owner and operator of company-branded hotels.

OEConnection price talk

OEConnection released talk of Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months on its $422 million seven-year covenant-lite first-lien term loan (B2) that launched with a bank meeting during the session, according to a market source.

Commitments are due on Sept. 19, the source said.

The company’s $657 million of credit facilities also include a $50 million five-year revolver (B2) and a $185 million privately placed second-lien term loan (Caa2).

Antares Capital, Golub Capital and Capital One Bank are leading the deal that will be used to help fund the buyout of the company by Genstar Capital from Providence Equity Partners LLC. Current investors Ford Motor Co. and General Motors will each retain their minority investments in the company.

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

OEConnection is a Cleveland-based provider of SaaS solutions that help drive genuine original equipment parts sales and services across the entire automotive system.

Del Frisco’s coming soon

Del Frisco’s set a bank meeting for 12:30 p.m. ET in New York on Monday to launch its previously announced $475 million of credit facilities and released price talk, according to a market source.

The facilities consist of a $50 million revolver, and a $425 million seven-year first-lien term loan talked at Libor plus 700 bps with a 0% Libor floor, an original issue discount of 97 and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on Sept. 23.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Societe Generale and Citizens Bank are leading the debt that will be used with equity to fund the buyout of the company by L Catterton for $8.00 per share. The transaction is valued at about $650 million.

Closing is expected by the fourth quarter, subject to approval by Del Frisco’s stockholders, expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary conditions.

Del Frisco’s is an Irving, Tex.-based restaurant company.

Vungle joins calendar

Vungle emerged with plans to hold a lenders’ presentation at 10:30 a.m. ET in New York on Friday to launch $400 million of senior secured credit facilities (B2/B), a market source remarked.

The facilities consist of a $50 million revolver and a $350 million first-lien term loan B, the source added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Nomura Securities International Inc. are leading the deal that will be used to help fund the buyout of the company by Blackstone and pay fees and expenses related to the financing.

Closing is expected this year, subject to customary conditions.

Vungle is a San Francisco-based performance marketing platform for in-app video advertisements on mobile devices.

CPI timing surfaces

CPI International set a bank meeting for Wednesday to launch its previously announced $195 million incremental first-lien term loan, according to a market source.

UBS Investment Bank is the left lead on the deal that will be used to fund the acquisition of Satcom Technologies from General Dynamics Mission Systems Inc.

Closing is expected before the end of the year, subject to customary conditions.

CPI, a portfolio company of Odyssey Investment Partners, is a Palo Alto, Calif.-based manufacturer of electronic components and subsystems focused primarily on communications and defense markets. Satcom is a designer, manufacturer and installer of satellite communications antenna systems, and a provider of related radio frequency products and electronics.

ALKU schedules meeting

ALKU will hold a bank meeting on Tuesday to launch $248 million of credit facilities (B2/B-), a market source said.

The facilities consist of a $30 million revolver and a $218 million term loan B, the source added.

Societe Generale and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by FFL Partners.

ALKU is an Andover, Mass.-based provider of temporary and contractual consultants in the technology, healthcare IT, life sciences and government sectors.

Wells Enterprises on deck

Wells Enterprises set a bank meeting for Tuesday to launch a $185 million add-on term loan B, according to a market source.

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

Wells Enterprises is a Le Mars, Iowa-based ice cream and frozen treat manufacturer.

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