JetBlue loan hits secondary; Ventia updates U.S. loan terms; Lummus accelerates timing

By Sara Rosenberg

New York, June 12 – JetBlue Airways Corp. increased the size of its first-lien term loan B and lowered the spread before breaking for trading above its original issue discount on Friday afternoon.

In more happenings, Ventia Finco Pty Ltd. reduced pricing on its U.S. incremental term loan and tightened the original issue discount, and Lummus Technology (Illuminate Buyer LLC) moved up the commitment deadline for its first-lien term loan.

Furthermore, Ultimate Software Group Inc. and Pathway Vet Alliance LLC joined the near-term primary calendar.

JetBlue revised, breaks

JetBlue Airways raised its four-year first-lien term loan B to $750 million from $500 million and trimmed pricing to Libor plus 525 basis points from talk in the range of Libor plus 575 bps to 600 bps, a market source remarked.

The term loan still has a 1% Libor floor and an original issue discount of 97, and is non-callable for one year, with a make-whole at Treasuries plus 50 bps, and then at 102 in year two.

Final commitments were due at noon ET on Friday and then the term loan freed to trade in the afternoon, with levels quoted at 99˝ bid, par offered, another source added.

Barclays, BNP Paribas Securities Corp., Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal that will be used for general corporate purposes.

JetBlue is a Long Island City, N.Y.-based provider of passenger air transportation services.

Ventia changes emerge

Ventia cut pricing on the U.S. portion of its roughly A$525 million equivalent U.S. and Australian incremental senior secured term loan due May 21, 2026 to Libor plus 400 bps from talk in the range of Libor plus 450 bps to 475 bps and modified the original issue discount to 97.5 from the 97 area, a market source said.

The U.S. loan still has a 1% Libor floor and 101 soft call protection for one year.

Final commitments and consents were due at 5 p.m. ET on Friday, and allocations are expected in the week of June 15, the source added.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and UBS Investment Bank are leading the deal that will be used to fund the A$485 million acquisition of Broadspectrum, an Australian company that provides infrastructure maintenance services.

Lenders are being offered a 25 bps amendment consent fee.

Ventia is a provider of industrial and civil services to clients in Australia and New Zealand across telecom, roads, water, power, utilities and environmental sectors. The company was formed by a 50/50 investment partnership between funds managed by affiliates of Apollo Global Management and the Cimic Group.

Lummus tweaks deadline

Lummus Technology accelerated the commitment deadline for its $1.05 billion seven-year covenant-lite first-lien term loan to 5 p.m. ET on Monday from 5 p.m. ET on Thursday, according to a market source.

Talk on the term loan is Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 97 and 101 soft call protection for six months.

The company’s $1.375 billion of credit facilities (B1/B+) also include a $175 million revolver and a $150 million letter-of-credit facility.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., RBC Capital Markets, Societe Generale, UBS Investment Bank and SunTrust Robinson Humphrey Inc. are leading the deal.

Lummus being acquired

Proceeds from Lummus’ credit facilities will be used to help fund its acquisition by the Chatterjee Group and Rhone Capital from Houston-based McDermott International Inc. for $2.725 billion.

Prior to its lender call on June 9, the company upsized the term loan from $600 million and scrapped plans for a secured notes offering that was being considered but never launched. However, there are still plans to sell $460 million of senior notes.

Lummus is a developer and licensor of mission essential technologies for the refining and petrochemical industries and a supplier of catalysts and proprietary equipment.

Ultimate Software on deck

Also in the primary market, Ultimate Software set a lender call for 2 p.m. ET on Tuesday to launch $3.3 billion of non-fungible term loans, split between a $2.6 billion incremental covenant-lite first-lien term loan B due May 2026 and a $700 million covenant-lite second-lien term loan due May 2027, market sources said.

Commitments are due at 5 p.m. ET on Thursday, sources added.

Credit Suisse Securities (USA) LLC, Nomura and others to be announced are leading the deal, with Credit Suisse the left lead on the term loan B and Nomura the left lead on the second-lien loan.

Proceeds will be used to refinance debt at Kronos Inc. Ultimate Software and Kronos merged earlier this year in an all-stock transaction. Hellman & Friedman LLC, the controlling shareholder of both Kronos and Ultimate Software, is the controlling shareholder of the combined company. Blackstone, GIC, Canada Pension Plan Investment Board and JMI Equity are minority investors.

Weston, Fla.-based Ultimate Software and Lowell, Mass.-based Kronos are providers of cloud human capital management and employee experience solutions. The combined company shares joint headquarters in Weston, Fla., and Lowell, Mass.

Pathway readies deal

Pathway Vet Alliance will hold a lender call at 2 p.m. ET on Monday to launch a $945 million senior secured first-lien term loan due March 2027, according to a market source.

Included in the first-lien term loan is a delayed-draw piece under which the commitment terminates in March 2022, the source said.

The company’s $1.28 billion of credit facilities also provide for an $80 million revolver due March 2025 and a $255 million privately placed senior secured second-lien term loan due March 2028.

Jefferies LLC, BofA Securities, Inc., Ares, Golub and Nomura are leading the deal that will be used to fund the recently completed acquisition of the company by TSG Consumer Partners from investment funds managed by Morgan Stanley Capital Partners.

Pathway is a veterinary management group that operates a synergistic and integrated service model serving the needs of pet families and veterinarians.

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