Syndigo frees up; E.W. Scripps, Weld North revise deals, CommerceHub, Zywave accelerated

By Sara Rosenberg

New York, Dec. 14 – Syndigo LLC finalized spreads on its first-and second-lien term loans at the wide end of guidance, and then the debt made its way into the secondary market on Monday.

In other news, E.W. Scripps Co. lowered price talk on its incremental first-lien term loan B and updated original issue discount guidance, Weld North Education increased the amount that it intends to extend of its existing first-lien term loan, and CommerceHub Inc. and Zywave Inc. moved up the commitment deadlines for their loans.

Also, GFL Environmental Inc. and KIK Consumer Products (Kronos Acquisition Holdings Inc.) came to market with term loan transactions, and Tank Holding Corp. emerged with new deal plans.

Syndigo updated, trades

Syndigo set pricing on its $375 million seven-year first-lien term loan (B2/B-) at Libor plus 450 basis points, the high end of the Libor plus 425 bps to 450 bps talk, and on its $160 million eight-year second-lien term loan (Caa2/CCC) at Libor plus 800 bps, the wide end of the Libor plus 775 bps to 800 bps talk, according to a market source.

As before, both term loans have a 0.75% Libor floor and an original issue discount of 98.5, 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 $585 million of credit facilities also include a $50 million five-year revolver (B2/B-).

On Monday, the debt freed to trade with the first-lien term loan quoted at 98¾ bid, 99¾ offered and the second-lien term loan quoted at 99 bid, par offered, a trader added.

Jefferies LLC, Deutsche Bank Securities Inc. and UBS Investment Bank are leading the deal that will be used to fund an investment in the company by Summit Partners.

Syndigo is a Chicago-based provider of digital product information and content solutions for the commerce ecosystem via an end-to-end SaaS platform.

E.W. Scripps tweaked

E.W. Scripps trimmed price talk on its $650 million seven-year incremental covenant-lite first-lien term loan B (Ba3/BB-/BB) to a range of Libor plus 300 bps to 325 bps from Libor plus 350 bps and revised original issue discount talk to 99.5 from a range of 99 to 99.5, a market source remarked.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., Truist, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal. Wells Fargo is the administrative agent.

The term loan will be used with $700 million of senior secured notes, $500 million of senior unsecured notes, $600 million of preferred equity from Berkshire Hathaway and $336 million of cash from the balance sheet to fund the $2.65 billion acquisition of ION Media.

E.W. Scripps amending

With the new term loan B, E.W. Scripps is seeking a technical amendment to its existing $210 million revolving credit facility, $291 million first-lien term loan B due 2024 and $753.6 million first-lien term loan B due 2026 to allow for the preferred equity investment.

Commitments and consents are due at noon ET on Tuesday, moved up from noon ET on Thursday, the source added.

Closing is targeted for first-quarter 2021, subject to regulatory approval.

Net secured leverage is expected to be 3.2x and net total leverage is expected to be 5.2x at close.

E.W. Scripps is a Cincinnati-based broadcasting and digital media company. ION Media is a West Palm Beach, Fla.-based television broadcast network.

Weld upsizes extension

Weld North Education is looking to extend its entire existing $538 million first-lien term loan to December 2027 from February 2025 instead of only extending $238 million and leaving $300 million as a non-extended tranche, according to a market source.

As before, the extended term loan and a fungible $412 million incremental first-lien term loan due December 2027 are talked at Libor plus 400 bps to 425 bps with a 0.75% Libor floor and 101 soft call protection for six months. The incremental term loan is talked with an original issue discount of 99 and existing lenders are being offered a 25 bps extension fee.

Commitments continue to be due at noon ET on Tuesday, the source added.

RBC Capital Markets, BMO Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the deal.

The incremental term loan will be used for a shareholder distribution, to fund an acquisition and for general corporate purposes.

Weld North Education, a portfolio company of Silver Lake Partners, is an education technology company focused on digital curriculum for grades K-12.

CommerceHub revises timing

CommerceHub accelerated the commitment deadline for its $530 million seven-year covenant-lite first-lien term loan B (B2/B) and $210 million eight-year covenant-lite second-lien term loan (Caa2/CCC) to noon ET on Wednesday from Friday, a market source said.

Talk on the first-lien term loan is Libor plus 425 bps to 450 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 775 bps with a 0.75% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

The company’s $790 million of senior secured credit facilities also include a $50 million five-year revolver (B2/B).

Morgan Stanley Senior Funding Inc. and Jefferies LLC are leading the deal that will be used to finance the sale of just under 50% of the company to Insight Partners by existing sponsors GTCR and Sycamore Partners.

CommerceHub is an Albany, N.Y.-based provider of e-commerce solutions for enterprise retailers and brands.

Zywave accelerated

Zywave moved up the commitment deadline for its $121.5 million add-on covenant-lite first-lien term loan B due Nov. 12, 2027 to noon ET on Thursday from noon ET on Friday, a market source remarked.

Talk on the add-on term loan is Libor plus 450 bps with a 0.75% Libor floor and an original issue discount of 98.5.

Morgan Stanley Senior Funding, Inc., BNP Paribas Securities Corp., Antares Capital and Ares are leading the deal that will be used with a $49.5 million privately placed add-on second-lien term loan to finance the acquisition of Insurance Technologies Corp. (ITC) from Accel-KKR and to pay fees and expenses related to the transaction.

Zywave, a Clearlake Capital Group LP and Aurora Capital Partners portfolio company, is a Milwaukee-based insurance technology provider. ITC is a Carrollton, Tex.-based provider of marketing, rating and agency management software solutions to the insurance industry.

GFL repricing

GFL Environmental held a lender call at 11 a.m. ET on Monday to launch a first-lien term loan B (Ba3) due May 31, 2025 talked at Libor plus 300 bps with a 0.5% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments were due at 4 p.m. ET on Monday, the source added.

Barclays is leading the deal that will be used to reprice an existing term loan B due May 31, 2025 from Libor plus 300 bps with a 1% Libor floor.

With the repricing, a portion of the existing $2.057 billion term loan B is being paid down with some of the proceeds from a $750 million senior secured notes offering, which was downsized from $1 billion. The notes will also be used to pay fees and expenses related to the offering.

GFL is an environmental services company that provides services to municipal, residential, commercial, industrial and institutional customers.

KIK holds call

KIK Consumer Products hosted a lender call at 1 p.m. ET on Monday to launch a $775 million six-year senior secured first-lien term loan B talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source said.

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

Barclays is leading the deal that will be used with $600 million of other secured debt and $525 million of other unsecured debt to repay existing term loans and senior notes and to fund a shareholder distribution.

KIK is a manufacturer and distributor of household cleaning, pool sanitation and automotive performance chemicals.

Tank on deck

Tank Holding will hold a lender call at 11 a.m. ET on Tuesday to launch a $240 million incremental covenant-lite first-lien term loan B due March 2026 talked at Libor plus 550 bps with a 0.75% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Thursday, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used with a privately placed incremental second-lien term loan to fund a dividend to shareholders and tuck-in acquisitions under letters of intent.

With the new loan, the company will be launching an amendment to its existing $518 million first-lien term loan B and lenders will be offered a 25 bps amendment fee, the source added.

Tank Holding is a Lincoln, Neb.-based manufacturer of rotationally molded poly and welded steel bulk storage and material handling products.

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