NortonLifeLock, Vivid break; symplr, Ankura accelerated, ITP, PlayAGS, MetroNet set talk

By Sara Rosenberg

New York, Jan. 28 – NortonLifeLock Inc.’s term loan B made its way into the secondary market on Friday, with levels quoted above its original issue discount, and Vivid Seats LLC’s (Hoya Midco LLC) first-lien term loan broke for trading as well.

Meanwhile, in the primary market, symplr Software Inc. and Ankura Consulting Group LLC accelerated the commitment deadlines for their loan transactions.

Also, ITP Aero, PlayAGS Inc. (AP Gaming I LLC) and MetroNet released price talk with launch, and Goodnight Midstream (Goodnight Water Solutions LLC) joined the near-term new issue calendar.

NortonLifeLock frees up

NortonLifeLock’s $3.69 billion seven-year covenant-lite term loan B broke for trading on Friday, with levels quoted at 99 5/8 bid, 99¾ offered, according to a market source.

Pricing on the term loan B is SOFR+CSA plus 200 basis points with a 0.5% floor and it was sold at an original issue discount of 99.5. The debt has CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

The company is also getting a new $410 million term loan A priced initially at SOFR+CSA plus 175 bps with a 0% floor.

Lenders were offered a 25 bps new money upfront fee for term loan A commitments.

During syndication, the term loan B was upsized from $3.6 billion and pricing was lowered from talk in the range of SOFR+CSA plus 225 bps to 250 bps , and the new term loan A was added. At launch, the company said that the term loan B may be reduced with up to $500 million of additional term loan A borrowings, for total new term loan borrowings of $3.6 billion. However, with the recent term loan B upsizing and the raising of the new term loan A, total new term loan borrowings will be $4.1 billion.

NortonLifeLock leads

BofA Securities Inc., Wells Fargo Securities LLC, Bank of Nova Scotia, Mizuho, Truist Securities, MUFG, BNP Paribas Securities Corp. and BMO Capital Markets are leading NortonLifeLock’s term loans.

Proceeds will be used to help fund the acquisition of Avast and, due to the increased term loan debt raised, for general corporate purposes. The transaction values Avast’s ordinary share capital between $8.1 billion and $8.6 billion, depending on Avast shareholders’ elections.

Other funds for the acquisition will come from a $1.75 billion five-year term loan A raised in August, $1.8 billion of cash and $2.5 billion of Norton equity to be issued to Avast shareholders.

Pro forma total leverage is 4.4x and secured leverage is 3.4x.

NortonLifeLock is a Tempe, Ariz.-based provider of consumer cyber safety. Avast is a Prague-based provider of digital security and privacy.

Vivid starts trading

Vivid Seats’ $275 million seven-year first-lien term loan (Ba3/B+) also broke, with levels quoted at 99 ½ bid, par offered, a market source remarked.

Pricing on the term loan is SOFR plus 325 bps with a 0.5% floor and it was sold at an original issue discount of 99.5. The term loan has 101 soft call protection for six months and no CSA.

Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal that will be used with cash on hand to refinance an existing $466 million first-lien term loan.

Closing is expected during the week of Jan. 31.

Vivid Seats is a Chicago-based ticketing market place and technology partner for live sports, concerts and theater events.

symplr accelerated

Switching to the primary market, symplr Software moved up the commitment deadline for its fungible $250 million incremental covenant-lite first-lien term loan due December 2027 (B2/B) to noon ET on Tuesday from noon ET on Wednesday, according to a market source.

Pricing on the incremental first-lien term loan is SOFR+10 bps CSA plus 450 bps with a 0.75% floor and it is talked with an original issue discount of 99.75.

The company is also getting a $90 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the acquisition of Midas Health Analytics Solutions from Conduent Inc.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

With this transaction, pricing on the company’s existing first-lien term loan will transition to SOFR+10 bps CSA plus 450 bps with a 0.75% floor from Libor plus 450 bps with a 0.75% Libor floor.

symplr is a Houston-based provider of health care governance, risk and compliance software solutions. Midas is a provider of clinical and analytics transformation software solutions.

Ankura tweaks timing

Ankura Consulting Group accelerated the commitment deadline for its fungible $75 million incremental covenant-lite first-lien term loan due March 2028 (B-) to 5 p.m. ET on Monday from 5 p.m. ET on Wednesday, a market source said.

Pricing on the incremental term loan is SOFR+CSA plus 450 bps with a 0.75% floor and it is talked with an original issue discount of 99.5.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to fund future acquisitions.

With this transaction, pricing on the company’s existing first-lien term loan is being amended to SOFR+CSA plus 450 bps with a 0.75% floor from Libor plus 450 bps with a 0.75% Libor floor.

Ankura is a specialty consulting platform.

ITP proposed terms

ITP Aero held its lender call on Friday morning and, shortly before the call began, price talk on its €575 million equivalent U.S. (about $650 million) seven-year first-lien term loan (B) was announced at SOFR plus 425 bps to 450 bps with a 0.5% floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and ticking fees of half the margin from days 61 to 120 and the full margin thereafter.

The company’s €675 million equivalent of credit facilities also include a €100 million euro revolver.

Commitments are due at 5 p.m. ET on Feb. 10.

Credit Suisse, RBC Capital Markets, Santander, BBVA, Goldman Sachs and Standard Chartered are leading the deal that will be used to help fund the buyout of the company by Bain Capital Private Equity from Rolls-Royce for about €1.7 billion.

ITP Aero is a Zamudio, Spain-based aerospace and engine component supplier.

PlayAGS talk

PlayAGS came out with talk of SOFR+CSA plus 400 bps with a 0.75% floor and an original issue discount of 99 on its $575 million seven-year covenant-lite first-lien term loan that launched with a call in the morning, a market source remarked.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

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

The company’s $615 million of credit facilities (B2/B) also include a $40 million five-year revolver.

Commitments are due at 5 p.m. ET on Feb. 8, the source added.

Jefferies LLC, Barclays, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and Apollo are leading the deal that will be used with about $53 million of cash from the balance sheet to repay $614.8 million of term loans due 2024 and pay around $13 million of prepayment premiums, fees and expenses.

Pro forma for the transaction, total net leverage will be 4.4x based on fiscal year 2021 adjusted EBITDA of $122.7 million.

PlayAGS is a Las Vegas-based designer and supplier of diverse gaming products and services to the gaming industry.

MetroNet guidance

MetroNet launched on its morning call its fungible $95 million add-on first-lien term loan B due June 2028 at talk of SOFR+CSA plus 375 bps with a 0.75% floor and an original issue discount of 99.75, according to a market source.

CSA is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate, the source said.

Commitments are due on Thursday.

Goldman Sachs Bank USA, TD Securities (USA) LLC, Citizens Bank, Fifth Third, KKR Capital Markets and Societe Generale are leading the deal that will be used to repay revolver borrowings.

Oak Hill and KKR Infrastructure are the sponsors.

MetroNet is an Evansville, Ind.-based provider of fiber optic high-speed broadband, video and voice services.

Goodnight on deck

Goodnight Midstream set a lender call for 1 p.m. ET on Monday to launch a $400 million five-year term loan B (B3/B), a market source said.

The term loan has hard call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on Feb. 10, the source added.

Wells Fargo Securities LLC is the left lead on the deal that will be used to refinance existing debt.

Goodnight Midstream is a Dallas-based produced water midstream company. which owns and operates critical produced water infrastructure for oil production in the Bakken, Permian and Eagle Ford Basins.

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