Worldwide/GlobalTranz, Apex Group, Flynn Canada, Iridium break; Confluence updates emerge

By Sara Rosenberg

New York, July 23 – Worldwide Express LLC/GlobalTranz Enterprises LLC downsized its second-lien term loan and finalized pricing on its first-and second-lien tranches, and Apex Group set U.S. and euro term loan tranche sizes, tightened the original issue discount on the U.S. piece and firmed the spread on the euro piece at the low end of guidance, and then of these deals freed to trade on Friday.

Also, Flynn Canada Ltd. reduced the size its term loan, widened the spread and issue price, and extended the call protection before breaking for trading, and Iridium Satellite LLC term loan B made its way into the secondary market as well.

In more happenings, Confluence Technologies Inc. set the spread on its first-lien term loan at the high end of talk and the original issue discount at the tight end of guidance, and eliminated plans for a delayed-draw tranche, and RxBenefits Inc. (RXB Holdings Inc.) and Ontic (Bleriot US Bidco Inc.) accelerated the commitment deadlines for their term loan transactions.

Furthermore, MediaOcean LLC released price talk with launch, and UDG Healthcare/Huntsworth, Waterlogic Group Holdings Ltd., Standard Industries Inc., Midcoast (East Texas) LLC and Eyemart Express LLC joined the near-term primary calendar.

Worldwide tweaked

Worldwide Express/GlobalTranz scaled back its eight-year second-lien term loan (Caa2/CCC) to $275 million from $300 million and set pricing at Libor plus 700 basis points, the low end of the Libor plus 700 bps to 725 bps talk, according to a market source.

In addition, pricing on the company’s $1.275 billion seven-year first-lien term loan (B2/B-) firmed at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, the debt now has one 25 bps step-down at 0.5x inside closing date first lien net leverage, revised from two step-downs previously, and some changes were made to documentation, the source said.

As before, the first-lien term loan has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan, of which $125 million was pre-placed, has a 0.75% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS Investment Bank, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Jefferies LLC, Morgan Stanley Senior Funding Inc. and CPPIB are leading the deal.

Worldwide hits secondary

On Friday, Worldwide Express/GlobalTranz’s bank debt broke for trading, with the first-lien term loan quoted at 99¼ bid, par offered and the second-lien term loan quoted at par bid, 101½ offered, another source added.

The loans will be used, alongside sponsor backing and significant equity rollover, to support the combination of WorldWide Express and GlobalTranz.

The transaction is sponsored by a consortium led by CVC Capital Partners as well as GlobalTranz’s current lead investors, Providence Equity Partners and PSG. Current Worldwide Express lead investor Ridgemont Equity Partners, along with both Worldwide Express and GlobalTranz management, will also retain a significant stake in the combined entity.

Closing is expected in the third quarter.

Dallas-based Worldwide Express and Scottsdale, Ariz.-based GlobalTranz are providers of technology-driven third-party logistics.

Apex finalized, frees

Apex Group set its U.S. term loan B size at $900 million and its euro term loan B size at $512 million equivalent, versus talk at launch of a $1.392 billion equivalent U.S. and euro term loan B with each tranche being a minimum of $500 million, according to a market source.

Furthermore, the original issue discount on the U.S. term loan was changed to 99.75 from 99.5, and pricing on the euro term loan firmed at Euribor plus 400 bps, the low end of the Euribor plus 400 bps to 425 bps talk, the source said.

The U.S. term loan is still priced at Libor plus 375 bps with a 0.5% Libor floor, the euro term loan still has a 0% floor and a discount of 99.5, and both loans still have 101 soft call protection for six months.

During the session, the U.S term loan began trading, with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

JPMorgan, Goldman Sachs, BofA Securities Inc., Morgan Stanley Senior Funding Inc., KKR Capital Markets, Deutsche Bank Securities Inc., Credit Suisse, Nomura and RBC Capital Markets are leading the deal that will be used to refinance existing debt and fund acquisitions.

Apex is a provider of fund administration services, financial and corporate solutions.

Flynn revised, breaks

Flynn Canada trimmed its first-lien term loan to $250 million from $300 million, raised pricing to Libor plus 450 bps from Libor plus 350 bps, modified the original issue discount to 97 from talk in the range of 99 to 99.5 and extended the 101 soft call protection to one year from six months, a market source said.

The term loan still has a 0.5% Libor floor.

Recommitments were due at 10:30 a.m. ET on Friday and the term loan broke for trading later in the day, with levels quoted at 97¼ bid, 98¼ offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used to help refinance existing debt, pay a shareholder distribution and share buyback, and fund an acquisition.

Flynn is a Toronto-based commercial roofing, glazing and cladding contractor.

Iridium starts trading

Iridium’s $1.629 billion covenant-lite term loan B (BB-) due Nov. 4, 2026 freed to trade too, with levels quoted at 99¾ bid, par offered, according to a market source.

Pricing on the term loan is Libor plus 250 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

During syndication, the discount on the term loan finalized at the wide end of the 99.75 to par talk.

Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with a 1% Libor floor.

Iridium is a McLean, Va.-based provider of mobile voice and data communications services through satellite.

Confluence updated

Back in the primary market, Confluence Technologies firmed pricing on its $290 million covenant-lite first-lien term loan (B2/B-) at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, and finalized the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

Also, the $75 million privately placed first-lien delayed-draw term loan was removed from the transaction, the source said.

The first-lien term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

The company’s now $435 million of credit facilities still include a $40 million revolver (B2/B-) and a $105 million privately placed covenant-lite second-lien term loan (Caa2/CCC).

Pricing on the second-lien term loan is Libor plus 650 bps with a 0.5% Libor floor.

Confluence allocates

Allocations on Confluence’s credit facilities were distributed on Friday morning, the source added.

Golub Capital, KKR Capital Markets and Stone Point are leading the deal that will be used to help fund the buyout of the company by Clearlake Capital Group LP from TA Associates. TA will retain a minority equity stake in the company.

Closing is expected in the third quarter, subject to customary regulatory approvals and conditions.

Confluence is a Pittsburgh-based software provider of performance reporting, analytics, regulatory reporting, risk and data solutions for financial services companies.

RxBenefits accelerated

RxBenefits moved up the commitment deadline for its $415 million first-lien term loan due Dec. 18, 2027 to noon ET on Tuesday from noon ET on Thursday, a market source remarked.

Talk on the term loan is Libor plus 475 bps with a 0.75% Libor floor and 101 soft call protection for six months. Of the total term loan amount, $115 million is incremental debt that is talked with an original issue discount of 99.5, and the remaining $300 million is for a repricing and is talked with a par issue price.

Barclays, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal.

Proceeds from the incremental amount will be used with a privately placed $45 million add-on second-lien term loan and rollover equity to fund an acquisition. The repricing will take the existing term loan down from Libor plus 525 bps with a 0.75% Libor floor.

Advent International and Great Hill Partners are the sponsors.

RxBenefits is a Birmingham, Ala.-based pharmacy benefits optimizer for the employee benefit industry.

Ontic moves deadline

Ontic accelerated the commitment deadline for its fungible $140 million incremental covenant-lite first-lien term loan (B2/B) due October 2026 to 5 p.m. ET on Monday from noon ET on Wednesday, according to a market source.

Pricing on the incremental term loan is Libor plus 400 bps with a 0% Libor floor, in line with existing term loan pricing, and the new debt is talked with an original issue discount of 99.5 to 99.75.

The incremental term loan has 101 soft call protection through Aug. 16.

Nomura Securities and Macquarie Capital (USA) Inc. are leading the deal that will be used to repay an existing second-lien term loan and pay fees and expenses.

Ontic is a provider of OEM-licensed parts and aftermarket services for mature aerospace and defense platforms.

MediaOcean sets talk

MediaOcean held its call on Friday morning and announced original issue discount talk of 99.5 on its fungible $385 million add-on first-lien term loan, a market source remarked.

Pricing on the add-on term loan is Libor plus 400 bps with a 25 bps step-down based on leverage and a 0% Libor floor, in line with existing first-lien term loan pricing.

Commitments are due at noon ET on Aug. 3, the source added.

Macquarie Capital (USA) Inc. and Golub Capital are leading the deal that will be used to fund the acquisition of Flashtalking, an ad management platform.

Closing is expected in the third quarter.

MediaOcean is a New York-based software company for the advertising sector.

UDG readies deal

UDG/Huntsworth set a lender presentation for 9 a.m. ET on Monday to launch a $1.94 billion seven-year first-lien term loan B (B1/B) and a $470 million euro equivalent seven-year first-lien term loan B (B1/B), a market source said.

Commitments are due at noon ET on Aug. 5.

The company’s credit facilities also include a $400 million five-year revolver (B1/B) and a £330 million pre-placed eight-year second-lien term loan, the source said.

JPMorgan Chase Bank and Citigroup Global Markets Inc. are the physical bookrunners on the deal, with JPMorgan the left lead on the U.S. loan and Citigroup the left lead on the euro loan. Deutsche Bank is a lead bookrunner, and Bank of Ireland, Barclays, HSBC, ING, Jefferies LLC and RBC Capital Markets are bookrunners.

The credit facilities will be used to help fund the buyout of Dublin-based UDG by Clayton, Dubilier & Rice for £10.80 per share and combination with London-based Huntsworth, an existing CD&R portfolio company, to refinance certain existing debt at Huntsworth and UDG and to pay related fees and expenses.

UDG/Huntsworth is a provider of medical communications, marketing, advisory and packaging services to pharma and biotech clients.

Waterlogic on deck

Waterlogic will hold a lender call at 10:30 a.m. ET on Monday to launch an $800 million equivalent U.S. and euro seven-year senior secured covenant-lite first-lien term loan B, of which $400 million is a U.S. tranche, according to a market source.

The U.S. and euro term loans have 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Aug. 4, the source added.

The company is also getting a $125 million six-year revolver.

Citigroup Global Markets Inc. and Goldman Sachs are the global coordinators and joint bookrunners on the deal, with Citigroup left on the U.S. loan and Goldman left on the euro loan. HSBC, SMBC and Societe Generale are joint bookrunners. HSBC is the agent.

The loans will be used with $60 million of new equity from the sponsors to refinance existing debt, fund add-on acquisitions, and pay transaction fees and expenses.

Waterlogic is a designer, manufacturer, distributor and service provider of products for the water dispensing industry.

Standard coming soon

Standard Industries scheduled a lender call for 10 a.m. ET on Monday to launch a $2.5 billion seven-year covenant-lite first-lien term loan B, a market source remarked.

The term loan has 101 soft call protection for six months, the source added.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and JPMorgan Chase Bank are leading the deal that will be used to fund a distribution to Standard Industries Holdings Inc. for the acquisition W.R. Grace & Co. for $70.00 per share in cash. The transaction is valued at about $7 billion.

Closing on the acquisition is expected in the fourth quarter, subject to customary conditions, including approval by W.R. Grace shareholders and the receipt of regulatory approvals.

W.R. Grace will operate as a stand-alone company within the portfolio of Standard Industries Holdings.

Standard Industries is a New York-based manufacturer of roofing products. W.R. Grace is a Columbia, Md.-based specialty chemical company.

Midcoast joins calendar

Midcoast (East Texas) set a call for 11 a.m. ET on Monday to launch a new loan to prospective lenders, according to a market source.

Citigroup Global Markets Inc. is the left lead on the deal.

Midcoast, a portfolio company of ArcLight Capital Partners, is a provider of midstream services.

Eyemart plans call

Eyemart Express will hold a lender call at 4 p.m. ET on Monday to launch a $455 million six-year senior secured term loan (B-), according to a market source.

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

Commitments are due at noon ET on Aug. 5, the source added.

Barclays is the left bookrunner on the deal that will be used to refinance the company’s existing debt.

Eyemart is an optical retailer.

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