Alterra, Veritext, RV Retailer, Avolon, Hyperion Materials break; Webhelp tweaks deal

By Sara Rosenberg

New York, July 30 – Alterra Mountain Co. increased the size of its term loan B, and Veritext Corp. (VT TopCo Inc.) updated spreads and original issue discounts on its first-and second-lien term loans, and then these deals freed to trade on Friday.

Also, RV Retailer firmed the original issue discount on its term loan debt at the tight end of guidance before breaking for trading, and deals from Avolon and Hyperion Materials & Technologies Inc. emerged in the secondary market as well.

In more happenings, Webhelp SAS set U.S. and euro tranche sizes and finalized pricing, MediaOcean LLC moved up the commitment deadline for its add-on first-lien term loan, and Savage Enterprises LLC, LifeMiles Ltd. and Cooke Inc. joined the near-term primary calendar.

Alterra upsizes, frees

Alterra Mountain, a Denver-based mountain resort and adventure company, lifted its term loan B due 2028 (B2/B) to $2.031 billion from $1.848 billion, according to a market source.

The term loan is priced at Libor plus 350 basis points with a 0.5% Libor floor and an original issue discount of 99.5, and has 101 soft call protection for six months.

On Friday, the term loan broke for trading, with levels quoted at 99½ bid, 99 7/8 offered, another source added.

JPMorgan Chase Bank is the left lead on the deal that will be used to reprice, extend and combine into one tranche an existing term loan B due 2024 and an existing term loan B-2 due 2026. The 2024 term loan B is currently sized at roughly $1.705 billion and the 2026 term loan B-2 is currently sized at $643 million.

Previously in syndication, pricing on the term loan firmed at the high end of the Libor plus 325 bps to 350 bps talk, the 12-month sunset was removed from MFN, Serta language was fixed, and the company removed the restriction for a $500 million leave behind of the 2024 term loan B, which is why the 2028 term loan was upsized. Upon announcing the restriction removal, the expectation was that the 2024 term loan would have $200 million to $300 million outstanding.

Veritext tweaked

Veritext set pricing on its non-fungible $400 million incremental first-lien term loan (B2/B) due August 2025 and $70 million delayed-draw for 24 months first-lien term loan (B2/B) at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and changed the original issue discount to 99.5 from 99, a market source remarked.

The company also trimmed pricing on its non-fungible $200 million incremental second-lien term loan (Caa2/CCC+) due August 2026 to Libor plus 675 bps from Libor plus 700 bps and tightened the discount to 99.25 from talk in the range of 98.5 to 99, the source continued.

As before, the first-lien term loan debt has a 0.75% Libor floor and 101 soft call protection for six months, the first-lien term loan and delayed-draw term loan are being sold as a strip, the delayed-draw ticking fees are half the margin from days 46 to 90 and the full margin thereafter, and the second-lien term loan has a 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $725 million of credit facilities also include a $55 million revolver (B2/B) due 2025.

Veritext hits secondary

Recommitments for Veritext’s bank debt were due at 11 a.m. ET on Friday and the loans began trading later in the day, with the strip of first-lien and delayed-draw term loan quoted at 99 5/8 bid, par offered and the second-lien term loan quoted at 99¾ bid, par ¼ offered, another source added.

Jefferies LLC, BNP Paribas Securities Corp., Macquarie Capital (USA) Inc. and ING are leading the deal that will be used to fund a distribution to shareholders, pay down the existing revolver balance and extend the existing revolver by two years to 2025.

Closing is expected on Wednesday.

Veritext is a Livingston, N.J.-based provider of deposition and litigation support solutions for law firms and corporations.

RV updated, breaks

RV Retailer finalized the original issue discount on its fungible $140 million incremental term loan (B+) due February 2028 and $40 million delayed-draw term loan (B2/B+) due February 2028 at 99.25, the tight end of the 99 to 99.25 talk, a market source said.

Pricing on the term loans is Libor plus 400 bps with a 0.75% Libor floor, in line with existing term loan pricing, and the debt has 101 soft call protection through Aug. 8.

Delayed-draw ticking fees are half the spread from days 46 to 90 and the full spread thereafter.

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

Goldman Sachs Bank USA is leading the deal that will be used to fund near-term acquisitions, to add cash to balance sheet for future acquisitions and for general corporate purposes.

Closing is expected during the week of Aug. 23.

RV Retailer is a recreational vehicle retail company.

Avolon starts trading

Avolon’s $672 million term loan B-5 due December 2027 freed up as well, with levels quoted at par 1/8 bid, par 3/8 offered, according to a market source.

Pricing on the term loan is Libor plus 225 bps with a 0.5% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Natixis, BNP Paribas Securities Corp. and Truist are leading the deal. Morgan Stanley is the administrative agent.

Proceeds will be used to reprice an existing term loan B-5 down from Libor plus 250 bps with a 0.75% Libor floor.

Closing is expected on Wednesday.

Avolon is a Dublin-based aircraft lessor.

Hyperion tops OID

Hyperion Materials’ $405 million seven-year first-lien term loan broke too, with levels quoted at 99¾ bid, par ¼ offered, a market source remarked.

Pricing on the term loan is Libor plus 450 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, the term loan was upsized from $390 million, the spread was lowered from Libor plus 475 bps and the discount was modified from 99.

The company’s $480 million of credit facilities (B2/B) also include a $75 million revolver.

UBS Investment Bank, KKR Capital Markets and Goldman Sachs Bank USA are leading the deal that will be used to refinance existing debt and, as a result of the recent upsizing, to fund additional cash to the balance sheet.

Hyperion Materials, a portfolio company of KKR, is a Worthington, Ohio-based solutions provider of effective applications for hard and super-hard materials.

Webhelp sets terms

Back in the primary market, Webhelp finalized the size of its U.S. seven-year senior secured incremental term loan B (B2/B) at $350 million and its non-fungible euro seven-year senior secured incremental term loan B (B2/B) at €285,585,000, from original talk of a €580 million equivalent U.S. and euro loan with a minimum of $350 million for the U.S. piece, a market source said.

Pricing on the U.S. term loan firmed at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk, and the original issue discount was set at 99.5, the tight end of the 99 to 99.5 talk, the source continued.

The euro term loan pricing finalized at Euribor plus 375 bps, the low end of the Euribor plus 375 bps to 400 bps, and the discount was tightened to 99.75 from talk in the 99.5 area.

As before, the U.S. term loan has a 25 bps pricing step-down at 4.5x leverage and a 0.5% Libor floor, the euro term loan has a 25 bps step-down at 4.5x leverage and a 25 bps step-down at 4x leverage and a 0% floor, and both loans have 101 soft call protection for six months.

Previously in syndication, a 25 bps step-down at 5x leverage was removed from both term loans.

Webhelp lead banks

Goldman Sachs and KKR Capital Markets are the mandated lead arrangers and bookrunners on Webhelp’s bank debt. Other bookrunners include HSBC, RBC and BNP Paribas. Wilmington Trust is the agent.

The loans will be used to help fund the acquisition of OneLink Holdings from One Equity Partners, repay revolving credit facility borrowings, repay existing OneLink debt and pay transaction related fees and expenses.

Allocations went out on Friday.

Webhelp is a Paris-based provider of customer experience and business solutions. OneLink is a provider of business process outsourcing and customer relationship management solutions.

MediaOcean accelerated

MediaOcean changed the commitment deadline for its fungible $385 million add-on first-lien term loan to noon ET on Monday from noon ET on Tuesday, 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, and the debt is talked with an original issue discount talk of 99.5.

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.

Savage readies loan

Savage Enterprises set a lender call for 11 a.m. ET on Monday to launch a $1 billion first-lien term loan B (B1/BB-), according to a market source.

Morgan Stanley Senior Funding Inc. is the left lead on the deal that will be used to refinance existing debt.

Savage Enterprises is a Salt Lake City-based supply chain provider.

LifeMiles on deck

LifeMiles scheduled a lender call for 10:30 a.m. ET on Monday to launch a $400 million term loan B (B3), a market source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance an existing term loan, to pay a dividend and for general corporate purposes.

LifeMiles is a Latin American coalition loyalty program and the operator of Avianca’s frequent flyer program.

Cooke joins calendar

Cooke will hold a lender call on Monday to launch a $480 million term loan, according to a market source.

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

BofA Securities Inc. and DNB are leading the deal that will be used with $580 million of unsecured notes to refinance existing debt.

Cooke is a New Brunswick-based seafood producer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.