Cabot Microelectronics firms terms, frees up; Calpine B-5 loan breaks atop par

By Sara Rosenberg

New York, Dec. 17 – Cabot Microelectronics Corp. set the issue price on its term loan at the tight end of guidance before breaking for trading on Tuesday, and Calpine Corp.’s term loan B-5 hit the secondary market as well.

And, in other happenings, Sophos came out with timing on the launch of its first-lien credit facilities.

Cabot updated, trades

Cabot Microelectronics finalized the issue price on its $957 million covenant-lite term loan B due November 2025 at par, the tight end of the 99.875 to par talk, according to a market source.

As before, the term loan is priced at Libor plus 200 basis points with a 0% Libor floor and has 101 soft call protection for six months.

During the session, the term loan B began trading, and levels were seen at par ¼ bid, par ¾ offered, the source said.

J.P. Morgan Securities LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to reprice an existing term loan B down from Libor plus 225 bps.

Cabot is an Aurora, Ill.-based supplier of chemical mechanical planarization polishing slurries and CMP pads to the semiconductor industry.

Calpine tops par

Calpine’s $1,532,000,000 first-lien term loan B-5 (Ba2/BB) due Jan. 15, 2024 freed to trade too, with levels quoted at par 3/8 bid, par ¾ offered, a market source remarked.

Pricing on the term loan B-5 is Libor plus 225 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead arranger on the deal that will be used to reprice an existing term loan B-5 down from Libor plus 250 bps.

Calpine is a Houston-based provider of power generation services.

Sophos sets meetings

Back in the primary market Sophos emerged with plans to hold a bank meeting at 1 p.m. ET in New York on Jan. 7 and a bank meeting in London on Jan. 8 to launch its previously announced $1,555,000,000 of first-lien credit facilities, split between a $125 million revolver and a $1.43 billion equivalent U.S. and euro first-lien term loan B, according to a market source.

The company is also getting a $520 million privately placed second-lien term loan.

Goldman Sachs Bank USA, BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are leading the senior secured deal that will be used to help fund the buyout of the company by Thoma Bravo for $7.40 per share, representing an enterprise value of about $3.9 billion.

Sophos is an Oxford, U.K.-based provider of next-generation cybersecurity.

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