Jazz, Wells Fargo, Signature, FleetCor, Parts Authority break; Resonetics changes emerge

By Sara Rosenberg

New York, April 22 – Jazz Pharmaceuticals plc increased the size of its U.S. and euro term loan B, firmed pricing at the low end of talk and set the issue price at the tight side of guidance, and Wells Fargo Asset Management (Zebra Buyer LLC) trimmed the spread on its first-lien term loan B, added step-downs and revised the original issue discount, and then these deals freed up for trading on Thursday.

Also, before breaking for trading, Signature Aviation plc finalized the size of its term loan B, flexed pricing lower and firmed the original issue discount at the middle of talk, FleetCor Technologies Inc. reduced pricing on its term loan B, and Parts Authority (PAI Holdco Inc.) changed the issue price on its incremental first-lien term loan.

In more happenings, Resonetics LLC upsized its first-lien term loan, firmed the spread at the low end of talk and modified the original issue discount, and downsized its second-lien term loan, and Wheel Pros Inc. made some covenant changes to its first-lien term loan.

Furthermore, Aristocrat Leisure Ltd. opted to delay the launch of its term loan B to an unidentified later date, and Allied Universal, Duravant LLC (Engineered Machinery Holdings Inc.) and Idera Inc. released price talk with launch.

Jazz reworked

Jazz Pharmaceuticals raised its U.S. and euro term loan B (Ba2/BB-/BB+) to total about $3.85 billion equivalent from $2.65 billion equivalent, and firmed the breakdown of the U.S. and euro term loan B tranche sizes at $3.1 billion and €625 million, according to a market source.

Pricing on the U.S. and euro term loan debt finalized at Libor/Euribor plus 350 basis points, the low end of the Libor/Euribor plus 350 bps to 375 bps talk, and the original issue discount firmed at 99.5, the tight end of the 99 to 99.5 talk, the source said.

The U.S. term loan still has a 0.5% Libor floor, the euro term loan still has a 0% floor and both tranches still have 101 soft call protection for six months.

BofA Securities Inc., JPMorgan Chase Bank, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, DNB, MUFG, RBC Capital Markets, SMBC and Truist are leading the deal.

Jazz hits secondary

Commitments for Jazz Pharmaceuticals’ bank debt were due at noon ET on Thursday and the U.S. term loan broke for trading later in the day, with levels quoted at 99 7/8 bid, par ¼ offered before tightening up to par bid, par ¼ offered, a trader added.

Proceeds will be used with $1.5 billion of senior secured notes, downsized from $2.7 billion with the term loan debt upsizing, and cash on hand to fund the acquisition of GW Pharmaceuticals plc for $220 per American Depositary Share. The payment for GW is in the form of $200 in cash and $20 in Jazz ordinary shares, for a total consideration of $7.2 billion, or $6.7 billion net of GW cash.

Closing is expected this quarter, subject to the approval of GW shareholders, sanction by the High Court of Justice of England and Wales and other customary conditions, including regulatory approvals.

Dublin, Ireland-based Jazz and Cambridge, U.K.-based GW are biopharmaceutical companies.

Wells Fargo revised

Wells Fargo Asset Management lowered pricing on its $1.24 billion seven-year covenant-lite first-lien term loan B to Libor plus 325 bps from Libor plus 350 bps, added a 25 bps step-down at 3.75x first-lien net leverage and a 25 bps step-down upon an initial public offering, and changed the original issue discount to 99.5 from 99, a market source remarked.

As before, the term loan has a 0.5% Libor floor, 101 soft call protection for six months, and a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

The company’s $1.41 billion of senior secured credit facilities (Ba2/BB-/BB) also include a $170 million five-year revolver.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., UBS Investment Bank, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal.

Wells Fargo frees up

Recommitments for Wells Fargo Asset Management’s credit facilities were due at 11 a.m. ET on Thursday, and the term loan B began trading in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, a trader added.

The new debt will be used to help fund the $2.1 billion buyout of the company by GTCR LLC and Reverence Capital Partners LP from Wells Fargo & Co., and pay fees, expenses and original issue discount related to the transaction.

Closing is expected in the second half of this year following the receipt of regulatory approvals and contractual consents.

Wells Fargo Asset is an asset management firm.

Signature updated, trades

Signature Aviation set the size of its seven-year covenant-lite term loan B at $1.685 billion, compared to initial talk of up to $1.8 billion, lowered pricing to Libor plus 275 bps from Libor plus 300 and firmed the original issue discount at 99.25, the midpoint of the 99 to 99.5 talk, according to a market source.

The term loan still has a leveraged-based pricing step-down, a 0.5% Libor floor and 101 soft call protection for six months.

The London-based aviation services company downsized its term loan due to the results of its bond tender offer, as some of the bond investors chose to roll their position, and leverage was kept the same, the source said.

The company’s $2.035 billion of credit facilities (B1/B+) also include a $350 million five-year revolver.

On Thursday, Signature Aviation’s term loan B broke for trading, with levels quoted at 99 3/8 bid, 99¾ offered, a trader added.

RBC Capital Markets, Santander, Barclays, MUFG and HSBC Securities (USA) Inc. are leading the deal that will be used with $4.157 billion of equity to fund the buyout of the company by Blackstone, Cascade and Global Infrastructure Partners for $5.62 per share in cash. The offer values the company at about $4.727 billion.

Closing is expected this quarter, subject to regulatory approvals.

FleetCor flexes, breaks

FleetCor Technologies cut pricing on its $1.15 billion seven-year term loan B (Ba1) to Libor plus 175 bps from Libor plus 200 bps, a market source said.

As before, the term loan has a 0% Libor floor, an original issue discount of 99.25 and 101 soft call protection for six months.

The term loan made its way into the secondary market in the afternoon, with levels quoted at 99½ bid, par offered, another source added.

BofA Securities Inc., MUFG, PNC Bank, TD Securities (USA) LLC, Wells Fargo LLC, BMO Capital Markets, Capital One, Fifth Third, Mizuho, Regents Bank and Bank of Nova Scotia are leading the deal that will be used to refinance existing debt and fund an acquisition.

FleetCor is an Atlanta-based business payments company.

Parts Authority tightens, frees

Parts Authority adjusted the issue price on its fungible $50 million incremental first-lien term loan due Oct. 28, 2027 to par from 99.75, a market source remarked.

Pricing on the incremental loan as well as on the repricing of the company’s existing $600 million first-lien term loan due Oct. 28, 2027 was unchanged at Libor plus 375 bps with a 25 bps step-down based on leverage and a 25 bps step-down upon an initial public offering, and a 0.75% Libor floor.

The issue price on the repricing was remained at par and all of the term loan debt (B1/B) is still getting 101 soft call protection for six months.

Late in the day, the term debt began trading, with levels quoted at par bid, par ½ offered, a trader added.

Jefferies LLC is leading the deal.

The incremental loan will be used to pay down outstanding ABL borrowings, and the repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor. The existing term loan has the same leverage-based and IPO-based pricing step-downs as the repriced term loan.

Parts Authority is a Lake Success, N.Y.-based automotive aftermarket replacement parts distribution platform.

Resonetics modified

In other news, Resonetics lifted its seven-year covenant-lite first-lien term loan to $360 million from $340 million, set pricing at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and changed the original issue discount to 99.5 from 99, according to a market source.

Also, the company scaled back its privately placed second-lien term loan to $90 million from $100 million.

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

The company’s now $500 million of credit facilities also include a $50 million revolver.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BMO Capital Markets and Antares Capital are leading the deal that will be used to refinance existing debt and fund a distribution to the holdco, which was increased by $10 million as a result of the first-lien term loan upsizing.

Resonetics is a MedTech contract manufacturing organization specializing in micro-manufacturing and other highly technical capabilities.

Wheel Pros tweaked

Wheel Pros revised some covenants under its $1 billion seven-year covenant-lite first-lien term loan (B2/B-), a market source remarked.

The changes were setting 50 bps MFN for 12 months, including J. Crew, Serta and Chewy provisions, and setting the inside maturity basket at the greater of $105 million and 50% of EBITDA, the source added.

Talk on the term loan remained at Libor plus 450 bps to 475 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Thursday.

Deutsche Bank Securities Inc., Jefferies LLC, Credit Suisse Securities (USA) LLC, KKR Capital Markets, UBS Investment Bank and Wells Fargo Securities LLC are leading the deal that will be used with $365 million of senior notes to fund the acquisition of the company by Fund Icon Partners III, a single asset investment vehicle managed by Clearlake Capital Group as general partner, from Clearlake managed funds and refinance existing debt.

Closing is expected this quarter.

Wheel Pros is a Denver-based distributor of proprietary branded wheels and performance tires.

Aristocrat tabled

Aristocrat Leisure postponed the launch of its $2.35 billion term loan B due May 2028 to a date in the future to be determined and cancelled the lender call that was scheduled to take place at 4 p.m. ET on Thursday, a market source said.

UBS Investment Bank was the left lead bank on the deal that was going to be used to amend and extend an existing $1.85 billion term loan B and refinance an existing $499 million side-car term loan B.

Aristocrat Leisure is a North Ryde, Australia-based provider of gaming solutions.

Allied Universal guidance

Allied Universal announced price talk on its $950 million seven-year covenant-lite first-lien term loan B (B2/B/BB-) and €715.5 million seven-year covenant-lite first-lien term loan B (B2/B/BB-) in connection with its lender call on Thursday morning, a market source remarked.

The term loans are talked at Libor/Euribor plus 375 bps to 400 bps with an original issue discount of 99, the source continued. The U.S. term loan has a 0.75% Libor floor and the euro term loan has a 0% floor.

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

Commitments are due at 5 p.m. ET on May 4 for the U.S. loan and at noon ET on May 4 for the euro loan.

Credit Suisse, Morgan Stanley, Deutsche Bank, BNP Paribas, HSBC Securities, Mizuho, Societe Generale, ING Capital LLC, MUFG and Truist Securities are leading the deal that will be used to help 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.

Duravant talk emerges

Duravant held its call in the morning, launching its $175 million eight-year incremental second-lien term loan at talk of Libor plus 725 bps with a 0.75% Libor floor, an original issue discount of 99 and hard call protection of 102 in year one and 101 in year two, according to a market source.

Commitments are due at noon ET on May 5.

The company also launched a $570 million equivalent euro seven-year incremental first-lien term loan at talk of Euribor plus 400 bps to 425 bps with a 0% floor and a discount of 99.5, the source said.

Along with the term loans, the company is getting a $235 million five-year revolver.

Duravant lead banks

Jefferies LLC, Credit Suisse, Societe Generale, Citigroup Global Markets Inc., KeyBanc Capital Markets, MUFG and Antares Capital are the arrangers on Duravant’s credit facilities, with Jefferies left on the second-lien loan and Credit Suisse listed left on the first-lien loan. Jefferies is the agent.

The new debt will be used to fund the acquisition of Foodmate, a manufacturer of poultry processing equipment dual-headquartered in Numansdorp, the Netherlands, and Ball Ground, Ga., for working capital, to add cash to the balance sheet and for other general corporate purposes.

Duravant is a Downers Grove, Ill.-based engineered equipment and automation solutions provider to the food processing, packaging and material handling sectors.

Idera proposed terms

Idera came out with original issue discount of 99 on its fungible $145 million incremental first-lien term loan due March 2028 that launched with a call in the morning, a market source said.

Pricing on the incremental first-lien term loan is Libor plus 375 basis points with a 0.75% Libor floor, and the debt has 101 soft call protection until September 2021.

Commitments are due at noon ET on April 29, the source added.

The company is also getting a fungible $60 million pre-placed incremental second-lien term loan due March 2029 that has 102 hard call protection until March 2022.

Jefferies LLC is leading the deal, which will be used to fund an acquisition.

Idera is a Houston-based provider of database, application development and testing software.

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