JDA gains on equity investment; Science Applications, California Pizza, GCP, Topps break

By Sara Rosenberg

New York, Aug. 19 – JDA Software Group Inc.’s first- and second-lien term loans headed higher in trading on Friday after the company announced an agreement for a new equity investment from Blackstone and New Mountain Capital.

Also, Science Applications International Corp. (SAIC) reduced the size of its term loan B with an upsize of its term loan A and finalized pricing on the B loan at the low end of guidance before freeing up for trading during the session.

Other new deals to make their way into the secondary market included California Pizza Kitchen Inc., GCP Applied Technologies Inc. and The Topps Co. Inc.

JDA terms loans rise

JDA Software’s term loans were stronger in trading after news of an equity investment surfaced, with the first-lien quoted at 99¾ bid, 100¼ offered on Friday, up from 99¼ bid, par offered, and the second-lien term loan quoted at par bid, 101 offered, up from 97½ bid, 100½ offered, according to a market source.

The $570 million equity investment in JDA is being made by Blackstone and New Mountain Capital and is expected to be completed by early in the fourth quarter, subject to customary conditions. New Mountain Capital will remain as the company’s majority shareholder post-investment.

Proceeds from the equity will be used to retire existing debt and reduce JDA’s interest expense by $70 million per year. The remaining debt will have no operating covenants and the first maturity will not be until the end of 2023.

Bank of America Merrill Lynch, Credit Suisse, and Goldman Sachs & Co. acted as advisors to Blackstone on the transaction, and JPMorgan Chase & Co. and Seth Bernstein SMB Capital acted as advisors to JDA.

JDA is a Scottsdale, Ariz.-based provider of end-to-end, integrated retail, omni-channel and supply chain planning and execution solutions.

SAIC revised, trades

In more happenings, Science Applications trimmed its senior secured covenant-light term loan B (Ba2) due May 4, 2022 to $400,633,562 from $532 million due to a corresponding upsize of about $132 million to its term loan A, according to a market source.

In addition, the spread on the term loan B was set at Libor plus 250 basis points, the low end of the Libor plus 250 bps to 275 bps talk.

The term loan B still has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

With final terms in place, the term loan B made its way into the secondary market, with levels quoted at 100½ bid, 101 offered, a trader added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B from Libor plus 300 bps with a 0.75% Libor floor.

Closing is expected during the week of Aug. 22.

Science Applications is a McLean, Va.-based technology integrator providing full life-cycle services and solutions in the technical, engineering, and enterprise information technology markets.

California Pizza tops OIDs

California Pizza Kitchen’s credit facility freed up for trading as well, with the $290 million six-year first-lien term loan (B2/B) seen at 99¼ bid, 100¼ offered and the $75 million seven-year second-lien term loan (Caa2/CCC) seen at 97½ bid, 98½ offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 600 bps with a 1% 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 1,000 bps with a 1% Libor floor and was issued at a discount of 97. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three, revised during syndication from 102 in year one and 101 in year two.

The company’s $395 million credit facility also provides for a $30 million revolver (B2/B).

Jefferies Finance LLC, Antares Capital, Guggenheim, BMO Capital Markets and Rabobank are leading the deal that will be used to refinance existing debt.

California Pizza Kitchen is a casual dining chain and a distributor of frozen food products.

GCP Applied breaks

GCP Applied Technologies’ $275 million term loan B due February 2022 began trading too, with levels quoted at 100¼ bid, 100¾ offered, a market source said.

Pricing on the term loan B is Libor plus 325 bps with a 0.75% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan B from Libor plus 450 bps with a 0.75% Libor floor.

Closing is expected during the week of Aug. 22.

GCP is a Cambridge, Mass.-based provider of products and technology solutions in the specialty construction chemicals, specialty building materials and packaging sealants and coating industries.

Topps hits secondary

Topps’ $130 million term loan due October 2020 (B1/B) also broke, with levels seen at 99½ bid 100¼ offered, according to a trader.

Pricing on the loan is Libor plus 600 bps with a 1.25% Libor floor, and it was sold at an original issue discount/amendment fee of 99.5.

Deutsche Bank Securities Inc. is leading the deal that will be used to extend the existing term loan by two years and fund a distribution to shareholders.

Closing is expected during the week of Aug. 22.

Topps is a producer of distinctive and interactive confectionery products, sports trading cards, entertainment games, collectibles and digital/media products.

WideOpenWest closes

In other news, WideOpenWest Finance LLC closed on its $2,065,000,000 seven-year term loan B (B1/B), a news release said.

Pricing on the term loan B is Libor plus 350 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC led the deal that is being used to refinance an existing term loan B, partially redeem the company’s 13 3/8% senior subordinated notes due 2019 and fund the acquisition of NuLink.

WideOpenWest is a Denver-based provider of data, video and telephone services. NuLink is a Newnan, Ga.-based provider of high-speed Internet, digital cable TV and phone services.

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