Aspect Software, McAfee break; Allied Universal changes emerge; SmartBear accelerated

By Sara Rosenberg

New York, May 3 – Aspect Software Inc. (Atlas Purchaser Inc.) widened pricing and issue prices on its first-and second-lien term loans, and sweetened call premiums before freeing up for trading on Monday, and McAfee Enterprise’s (Magenta Buyer LLC) credit facilities surfaced in the secondary market as well.

In more happenings, Allied Universal firmed the spread on its U.S. incremental first-lien term loan B at the low end of talk, trimmed the Libor floor and tightened the original issue discount, and added a repricing and extension of its existing first-lien term loan.

Also, SmartBear (AQA Acquisition Holdings Inc.) moved up the commitment deadline for its incremental first-lien term loan.

Furthermore, Club Car and HelpSystems released price talk with launch, and Univision Communications Inc. joined this week’s primary calendar.

Aspect revised

Aspect Software lifted pricing on its $610 million seven-year first-lien term loan (B2/B-) to Libor plus 525 basis points from talk in the range of Libor plus 450 bps to 475 bps, changed the original issue discount to 98 from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

The company also raised pricing on its $250 million eight-year second-lien term loan (Caa2/CCC+) to Libor plus 900 bps from Libor plus 850 bps, modified the discount to 97 from 98, and revised the hard call protection to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said.

As before, both term loans have a 0.75% Libor floor and a 25 bps pricing step-down upon an initial public offering.

The company’s $935 million of senior secured credit facilities include a $75 million five-year revolver (B2/B-) as well.

Aspect hits secondary

Recommitments for Aspect Software’s credit facilities were due at 1 p.m. ET on Monday and the debt broke for trading in the afternoon, with the first-lien term loan quoted at 98¼ bid, 99¼ offered and the second-lien term loan quoted at 97½ bid, 98½ offered, another source added.

Jefferies LLC, Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Macquarie Capital (USA) Inc., Truist and Apollo are leading the deal that will be used to fund the acquisition of Aspect Software and Noble Systems Corp. by Abry Partners LLC.

Aspect Software is a provider of mission critical contact center and workforce optimization software applications. Noble Systems is a provider of customer contact technology.

McAfee Enterprise frees up

McAfee Enterprise’s bank debt began trading too, with the $2.25 billion seven-year first-lien term loan quoted at 99¼ bid, 99¾ offered and the $575 million eight-year second-lien term loan quoted at 99 bid, par offered, a market source remarked.

Pricing on the first-lien term loan is Libor plus 500 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 825 bps with a 0.75% Libor floor and was issued at a discount of 98.5. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $2.175 billion and the second-lien term loan was downsized from $600 million.

UBS Investment Bank, Jefferies LLC, BofA Securities Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by a consortium led by Symphony Technology Group from McAfee Corp. for $4 billion.

Closing is expected in July, subject to customary regulatory approvals and conditions.

McAfee Enterprise is a provider of device-to-cloud cybersecurity solutions.

Allied Universal reworked

In other news, Allied Universal set pricing on its $950 million incremental covenant-lite first-lien term loan B (B2/B/BB-) due May 2028 at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, cut the Libor floor to 0.5% from 0.75%, revised the original issue discount to 99.5 from 99 and made the debt fungible with its existing first-lien term loan B, according to a market source.

Also, the company added a repricing and extension of its existing $2.192 billion first-lien term loan. The existing term loan will be extended to May 2028 from July 2026 and is talked at Libor plus 375 bps with a 0.5% Libor floor, versus current pricing of Libor plus 425 bps with a 0% Libor floor. Lenders are being offered a 25 bps extension fee, the source continued.

The incremental term loan still has 101 soft call protection for six months and the repriced/extended term loan is getting the same call protection.

In addition to the U.S. incremental term loan, the company plans on getting a €715.5 million seven-year covenant-lite first-lien term loan B (B2/B/BB-).

Allied lead banks

Credit Suisse, Morgan Stanley, Deutsche Bank, BNP Paribas, HSBC Securities, Mizuho, Societe Generale, ING Capital LLC, MUFG and Truist Securities are leading Allied Universal’s loan transaction.

Commitments remain due at 5 p.m. ET on Tuesday, the source added.

The incremental term loan debt will be used with $2.96 billion of notes in multiple tranches to fund the acquisition of G4S plc for 245 pence in cash per share. The transaction is valued at £3.8 billion.

Warburg Pincus and CDPQ are the sponsors.

Allied Universal is a Santa Ana, Calif.-based provider of security services. G4S is a London-based security services company.

SmartBear tweaks timing

SmartBear accelerated the commitment deadline for its fungible $70 million covenant-lite incremental first-lien term loan (B2/B-) due March 2, 2028 to 5 p.m. ET on Tuesday from noon ET on Thursday, a market source said.

Pricing on the incremental term loan is Libor plus 425 bps with a 0.5% Libor floor, in line with existing first-lien term loan pricing, and the new debt is talked with an original issue discount of 99.5 to 99.75.

The incremental first-lien term loan has 101 soft call protection through Sept. 2, 2021.

Credit Suisse Securities (USA) LLC and Antares Capital are leading the deal that will be used with a $54 million privately placed incremental second-lien term loan to fund the acquisition of Bugsnag.

SmartBear is a Somerville, Mass.-based provider of software development and quality tools. Bugsnag is a San Francisco-based provider of application stability management.

Club Car talk

Club Car held its call on Monday afternoon and announced talk on its $775 million seven-year senior secured term loan (B2/B) at Libor plus 400 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on May 12, the source added.

Goldman Sachs Bank USA, BofA Securities Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are leading the deal that will be used with $450 million of notes to help fund the buyout of the company by Platinum Equity from Ingersoll Rand in a transaction valued at about $1.7 billion.

Closing is expected in the third quarter, subject to standard conditions.

Club Car is an Augusta, Ga.-based manufacturer of golf cars, utility, personal transportation and other low-speed vehicles, including all-electric models, and related aftermarket parts and services.

HelpSystems guidance

HelpSystems came out with price talk on its fungible $170 million incremental first-lien term loan and non-fungible $130 million incremental second-lien term loan with its morning call, a market source remarked.

The incremental first-lien term loan is talked at Libor plus 475 bps with a 1% Libor floor, a par issue price and 101 soft call protection through June 22, and the incremental second-lien term loan is talked at Libor plus 675 bps with a 0.75% Libor floor, a discount of 99.5 and call protection of 102 in year one and 101 in year two, the source added.

Commitments are due at 4 p.m. ET on May 10.

Golub Capital is leading the deal.

HelpSystems, a portfolio company of TA Associates, HGGC and Charlesbank, is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity and business intelligence software.

Univision on deck

Univision set a lender call for 9 a.m. ET on Tuesday to launch a $1.05 billion seven-year term loan (B+) talked at Libor plus 325 bps to 350 bps with a 0.75% Libor floor, an original issue discount of 99.5 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 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.

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

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

TKC allocates

TKC Holdings Inc. allocated its $575 million of credit facilities (B1/B) consisting of a $50 million five-year revolver and a $525 million seven-year first-lien term loan, a market source said.

Pricing on the term loan is Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

During syndication, the term loan was downsized from a revised amount of $925 million and an initial amount of $1.125 billion, pricing was increased from talk in the range of Libor plus 475 bps to 500 bps, the Libor floor was revised from 0.75%, the discount widened from 98.5, the call protection was extended from six months and some lender friendly documentation changes were made to the credit agreement.

Jefferies LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used with $400 million of senior secured notes and $700 million of senior unsecured notes to refinance the company’s existing capital structure. The secured notes were added upon the second term loan downsizing and the unsecured notes were upsized from $500 million with the original term loan downsizing.

TKC is a St. Louis-based provider of commissary, food service and related technology products to the corrections industry.

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