Univision, Socotec, AdThrive free up; HelpSystems revised; Generate Life reveals talk

By Sara Rosenberg

New York, May 7 – Univision Communications Inc. finalized pricing on its term loan B at the low end of talk but widened the original issue discount, and Socotec set spreads on its U.S. and euro term loans at the low end of guidance and tightened the issue price on the euro tranche, and then both of these deals broke for trading on Friday.

Also, AdThrive (CMI Marketing Inc.) came to market with a small add-on term loan B in the morning and freed the debt up for trading in the afternoon.

In more happenings, HelpSystems moved some funds between its first-and second-lien incremental term loans, revised original issue discount talk on its second-lien tranche and added a repricing of its existing second-lien term loan.

Furthermore, Generate Life Sciences disclosed price talk with launch, and Hilton Grand Vacations and Pathway Vet Alliance LLC joined the near-term primary calendar.

Univision tweaked, trades

Univision set the spread on its $1.05 billion seven-year term loan B (B+) at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, and revised the original issue discount to 99 from 99.5, according to a market source.

The term loan has a 0.75% Libor floor, 101 soft call protection for six months and a ticking fee of half the margin from days 46 to 75 and the full margin thereafter.

Recommitments were due at 11 a.m. ET on Friday and the term loan B began trading in the afternoon, with levels quoted at 99¼ bid, 99¾ offered, another source added.

JPMorgan Chase Bank, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays and Citigroup Global Markets Inc. are leading the deal that will be used with $1.05 billion of senior secured notes and $1 billion of new series C preferred equity to fund the acquisition of Grupo Televisa’s content and media assets for $3 billion in cash, $750 million in Univision common equity and $750 million in series B preferred equity, with an annual dividend of 5.5%.

Closing is expected this year, subject to regulatory and Televisa shareholder approvals.

Univision is a New York-based Spanish-language content and media company.

Socotec updated, breaks

Socotec firmed pricing on its $300 million term loan B (B2/B) at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, a market source said. The 0.75% Libor floor and original issue discount of 99.5 were left intact.

The company also set the spread on its €550 million term loan B (B2/B) at Euribor plus 375 bps, the low end of the Euribor plus 375 bps to 400 bps talk, and changed the issue price to par from 99.5, the source said. This tranche still has a 0% floor.

Both term loans have 101 soft call protection for six months.

During the session, the debt made its way into the secondary market, with the U.S. term loan quoted at 99¾ bid, another source added.

JPMorgan Chase Bank is the left lead on the U.S. term loan and BNP Paribas is the left lead on the euro term loan. BNP is the administrative agent.

The loans will be used to refinance existing debt and fund a dividend.

Socotec is a France-based provider of testing, inspection and compliance services, offering comprehensive solutions for the infrastructure and environment & safety sectors.

AdThrive launches, frees up

AdThrive launched in the morning a fungible $15 million add-on term loan B due March 2028 with an original issue discount of 99, a market source remarked.

The add-on term loan is priced at Libor plus 475 bps with a 0.75% Libor floor.

Commitments were due at 1 p.m. ET on Friday, accelerated from 1 p.m. ET on Tuesday, and the debt broke for trading in the afternoon, with levels quoted at 99¼ bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal, which will be used to pay a dividend to the shareholders.

AdThrive is an ad management firm.

Cabinetworks holds steady

Also in trading, Cabinetworks Group’s $1.4 billion seven-year term loan B (B1/B-) was quoted at 99¾ bid, par ¼ offered during the session, in line with where it broke for trading late Thursday, a trader said.

Pricing on the term loan B is Libor plus 425 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan B was increased from talk in the range of Libor plus 375 bps to 400 bps, the discount firmed at the wide end of the 99 to 99.5 talk and the call protection was extended from six months.

BofA Securities Inc., Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, KKR Capital Markets, BMO Capital Markets, Jefferies LLC and RBC Capital Markets are leading the deal that will be used with $550 million of senior notes and equity to fund the buyout of the company by Platinum Equity from American Industrial Partners, GIC and other equity holders.

Closing is expected this quarter, subject to customary conditions.

Cabinetworks is an Ann Arbor, Mich.-based manufacturer and distributor of kitchen and bath cabinets.

HelpSystems reworked

Back in the primary market, HelpSystems lifted its fungible incremental first-lien term loan (B2/B-) to $235 million from $170 million and left price talk at Libor plus 475 bps with a 1% Libor floor and a par issue price, according to a market source.

The 101 soft call protection through June 22 on the incremental first-lien term loan was also unchanged.

Regarding the incremental second-lien term loan, it was scaled back to $65 million from $130 million and the original issue discount talk was revised to a range of 99.5 to 99.75 from just 99.5, the source said.

Talk on the incremental second-lien term loan remained at Libor plus 675 bps with a 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two.

Furthermore, the company added a repricing of its $290 million existing second-lien term loan that is talked with the same spread, floor, discount and call protection as the incremental second-lien term loan, and as a result, the incremental debt will now be fungible with the existing debt instead of non-fungible, the source continued.

HelpSystems deadline

Recommitments for HelpSystems’ first-and second-lien term loans are due at 4 p.m. ET on Monday, the source added.

Golub Capital is the left lead on the deal.

The incremental term loans will be used to fund two tuck-in acquisitions and a minority recapitalization, and the repricing will take the existing second-lien term loan down from Libor plus 800 bps with a 1% Libor floor.

Pro forma for the transaction, the first-lien term loan will total $1.366 billion.

HelpSystems, a portfolio company of TA Associates, HGGC and Charlesbank, is an Eden Prairie, Minn.-based provider of cybersecurity and automation software.

Generate guidance

Generate Life Sciences held its call on Friday and announced original issue discount talk on its fungible $130 million incremental covenant-lite first-lien term loan due Aug. 6, 2025 at 99.03, according to a market source.

Pricing on the incremental term loan is Libor plus 400 bps with a 0% Libor floor, which matches existing term loan pricing.

Commitments are due at noon ET on May 14, the source added.

Golub Capital Markets LLC is leading the deal that will be used to fund an acquisition.

Generate Life Sciences, formerly known as California Cryobank, is a Los Angeles-based life sciences company helping to grow and protect families through reproductive, newborn stem cell, genetic screening, medical device, and health care technology services.

Hilton timing emerges

Hilton Grand Vacations will hold a lender call at 2 p.m. ET on Monday to launch its previously announced $1.3 billion seven-year term loan B, a market source remarked.

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

BofA Securities Inc., Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, Goldman Sachs Bank USA and MUFG are leading the deal that will be used with $675 million of senior unsecured notes to refinance existing debt in connection with the acquisition of Diamond Resorts International Inc., including senior notes at Hilton Grand Vacations and notes at Diamond Resorts.

Diamond Resorts is being purchased from Apollo Global Management Inc. and Reverence Capital Partners for 34.5 million shares of Hilton Grand Vacations common stock. The transaction is valued at $1.4 billion.

Pro forma leverage will be 6.5x.

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

Orlando, Fla.-based Hilton Grand Vacations and Diamond Resorts are timeshare companies.

Pathway Vet on deck

Pathway Vet Alliance scheduled a lender call for noon ET on Monday to launch a fungible $200 million incremental first-lien term loan (B2/B) due March 2027 that is talked with an original issue discount of 98.8, according to a market source.

Pricing on the incremental term loan is Libor plus 375 bps with a 0% Libor floor.

The incremental term loan has 101 soft call protection through July.

Commitments are due at noon ET on May 13, the source added.

Jefferies LLC and BofA Securities Inc. are leading the deal that will be used to fund cash to the balance sheet for general corporate purposes, which may include acquisitions.

Pro forma for the transaction, the first-lien term loan will total about $1.21 billion.

Pathway is an Austin, Tex.-based veterinary management group.

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