Hyland Software, PCI Pharma, Barrette, ASP Navigate, Closure Systems free to trade

By Sara Rosenberg

New York, Sept. 25 – A number of deals made their way into the secondary market on Friday, including Hyland Software Inc., PCI Pharma Services (Packaging Coordinators Midco Inc.), Barrette (LEB Holdings (USA) Inc.) and ASP Navigate Acquisition Corp. (Life Sciences).

Also, Closure Systems International Group Inc.’s incremental first-lien term loan broke for trading after the original issue discount on the debt firmed at the wide end of guidance.

In other news, Alliance Laundry Systems LLC and Canada Goose Inc. accelerated the commitment deadlines for their term loans, and Infoblox Inc. joined the near-term primary calendar.

Hyland hits secondary

Hyland Software’s $738 million incremental covenant-lite first-lien term loan due July 2024 began trading on Friday, with levels quoted at 99¾ bid, par ¼ offered, according to a market source.

The incremental term loan is priced at Libor plus 350 basis points with a 25 bps step-down at 4.75x first-lien net leverage and a 0.75% Libor floor. The debt was sold at an original issue discount of 99.625 and has 101 soft call protection for six months.

During syndication, the term loan was upsized from $664 million and the discount was tightened from talk in the range of 99.3 to 99.5.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, UBS Investment Bank, KKR Capital Markets and Stone Point are leading the deal that will be used to fund the acquisition of Alfresco, a Boston-based content services platform and solutions provider, and, due to the recent upsizing, to repay a second-lien term loan.

Closing is expected in the fourth quarter, subject to customary conditions and regulatory approvals.

Pricing on the existing first-lien term loan had stepped down to Libor plus 325 bps and will be reset to Libor plus 350 bps with this transaction.

Hyland is a Westlake, Ohio-based content services platform provider.

PCI starts trading

PCI Pharma Services’ $920 million seven-year senior secured first-lien term loan freed to trade too, with levels quoted at 99¾ bid, par ¼ offered, a market source said.

Pricing on the first-lien term loan is Libor plus 375 bps with a 25 bps step-down at 0.5x inside closing first-lien net leverage and a 25 bps step-down based on an initial public offering, and a 0.75% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

The company’s $1.345 billion of credit facilities also include a $125 million five-year revolver and a $300 million privately placed eight-year senior secured second-lien term loan.

During syndication, the first-lien term loan was upsized from $870 million as the second-lien term loan was downsized from $350 million, pricing on the first-lien term loan firmed at the low end of the Libor plus 375 bps to 400 bps talk and the discount was changed from 99.

Jefferies LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Antares Capital Markets are leading the deal that will be used to help fund the buyout of the company by Kohlberg & Co. from Partners Group, Thomas H. Lee Partners and Frazier Healthcare Partners. Mubadala Investment Co. will also become a significant investor in PCI. Partners Group will retain a meaningful minority equity stake in the company.

PCI is a Philadelphia-based provider of outsourced pharmaceutical services.

Barrette frees up

Barrette’s $405 million seven-year covenant-lite first-lien term loan (B3/B) also broke, with levels quoted at 99¼ bid, 99¾ offered, a market source remarked.

Pricing on the term loan is Libor plus 400 bps with a 25 bps step-down after 0.75x of first-lien net leverage deleveraging and a 0.75% Libor floor. The loan was sold at an original issue discount of 99 and has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk in the range of Libor plus 425 bps to 450 bps, the step-down was added and the discount was revised from 98.

Credit Suisse Securities (USA) LLC, BMO Capital Markets and KKR Capital Markets are leading the deal that will be used to fund the acquisition of the company by TorQuest Partners and Caisse de depot et placement du Quebec.

Barrette is a manufacturer and distributor of wood alternative fence, railing and other outdoor living products.

ASP Navigate breaks

ASP Navigate’s $425 million seven-year first-lien term loan emerged in the secondary market as well, with levels quoted at 99 bid, 99½ offered, according to a market source.

Pricing on the term loan is Libor plus 450 bps with a 25 bps step-down at 0.5x inside closing first-lien net leverage and a 1% Libor floor. The debt was sold at an original issue discount of 98.5 and has 101 soft call protection for six months.

During syndication, the term loan was increased from $400 million and pricing was cut from talk in the range of Libor plus 475 bps to 500 bps.

The company’s $485 million of credit facilities (B2/B-) also include a $60 million five-year revolver.

Jefferies LLC, Keybank Capital Markets Inc., Goldman Sachs Bank USA and ING are leading the deal that will be used with equity to fund American Securities LLC’s acquisition of NN Inc.’s Life Sciences division for $825 million, including $755 million in cash payable at the closing of the transaction and an additional $70 million earnout payable in cash based on the 2022 performance of the division.

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

The Life Sciences division designs and manufactures a variety of high-precision components, assemblies, and instruments for the medical and life sciences end market.

Closure updated, trades

Closure Systems set the original issue discount on its $70 million incremental covenant-lite first-lien term loan due December 2026 at 99.5, the wide end of the 99.5 to 99.75 talk, a market source said.

As before, the incremental term loan is priced at Libor plus 475 bps with a 0% Libor floor and has 101 soft call protection for six months.

On Friday, the incremental term loan started trading and levels were quoted at 99¾ bid, par ¼ offered, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a dividend.

The spread and floor on the incremental term loan matches existing term loan pricing.

Closure Systems, formerly known as Canister International Group Inc., is a Memphis, Tenn.-based designer and manufacturer of plastic and aluminum closures and capping equipment.

Alliance Laundry accelerated

Alliance Laundry moved up the commitment deadline for its $1.25 billion seven-year covenant-lite term loan B to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday as a result of strong demand, a market source remarked.

Talk on the term loan is Libor plus 375 bps to 400 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

UBS Investment Bank, BofA Securities Inc., BMO Capital Markets and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt.

Alliance Laundry is a Ripon, Wis.-based designer, manufacturer and marketer of commercial laundry equipment.

Canada Goose revises timing

Canada Goose accelerated the commitment deadline for its $300 million seven-year covenant-lite first-lien term loan (B2/BB) to 5 p.m. ET on Wednesday from 5 p.m. ET on Oct. 5, according to a market source.

The term loan is talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, CIBC, BofA Securities Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Canada Goose is a Toronto-based maker of performance luxury apparel.

Infoblox readies deal

Infoblox set a lender call for 11 a.m. ET on Tuesday to launch $1.945 billion of senior secured credit facilities, a market source said.

The facilities consist of a $200 million revolver, a $1.29 billion first-lien term loan B and a $455 million second-lien term loan, the source added.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to fund the acquisition of a 50% equity stake in the company by Warburg Pincus, refinance existing debt, and pay related fees and expenses. Existing private equity sponsor, Vista Equity Partners, will retain equal equity ownership.

Infoblox is a Santa Clara, Calif.-based provider of core networking and cybersecurity solutions.

© 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.