Blue Coat, Physio-Control, At Home, Dynacast, CHG break; Weather, Filtration revise deals

By Sara Rosenberg

New York, May 19 – Blue Coat Systems Inc.’s credit facility freed up for trading on Tuesday, with the term loan B quoted above its original issue discount, and Physio-Control International Inc., At Home Holding III Inc., Dynacast International and CHG Healthcare Services Inc. broke too.

Meanwhile, in the primary, Weather Co. (TWCC Holding Corp.) widened the spread, new money original issue discount and extension fee on its term loan, while also extending the call protection, and Filtration Group Corp. upsized its add-on first-lien term loan and modified the issue price.

Also, On Assignment Inc., Calpine Corp., CAbi and American Bath Group disclosed price talk with launch, and Sage Products Holdings III LLC joined this week’s primary calendar.

Blue Coat frees up

Blue Coat Systems’ credit facility emerged in the secondary market on Tuesday, with the $1.15 billion seven-year covenant-light term loan B quoted at par bid, 100½ offered, according to a trader.

Pricing on the term loan is Libor plus 350 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.75. There is 101 soft call protection for six months.

During syndication, the term loan was upsized from $1.05 billion, pricing was cut from talk of Libor plus 375 bps to 400 bps, and the discount was tightened from 99.5.

The company’s $1.25 billion credit facility also includes a $100 million revolver.

Jefferies Finance LLC is leading the credit facility that will be used with $470 million of notes, downsized from $570 million with the term loan upsizing, to help fund the roughly $2.4 billion buyout of the Sunnyvale, Calif.-based web security company by Bain Capital LLC from Thoma Bravo LLC.

Closing is expected in the first half of this year, subject to customary conditions, including requisite regulatory approvals.

Physio-Control starts trading

Physio-Control’s term debt freed up for trading too, with the $350 million seven-year first-lien covenant-light term loan B (B1/B) quoted at par bid, 100¾ offered and the $130 million eight-year second-lien covenant-light term loan (Caa1/CCC+) quoted at 98½ bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 900 bps with a 1% Libor floor and was issued at a discount of 98. This debt has hard call protection of 102 in year one and 101 in year two.

During syndication, the spread on the first-lien term loan firmed at the low end of the Libor plus 450 bps to 475 bps talk and the discount was revised from 99, and pricing on the second-lien loan finalized at the wide end of the Libor plus 875 bps to 900 bps talk.

Physio-Control lead banks

Citigroup Global Markets Inc., Jefferies Finance LLC, RBC Capital Markets and HSBC Securities (USA) Inc. are leading Physio-Control’s $480 million of senior secured term loans.

Proceeds will be used to refinance existing debt and fund a dividend.

Closing is expected on June 5.

Physio-Control is a Redmond, Wash.-based developer, manufacturer, seller and servicer of external defibrillator/monitors and emergency medical response products and services.

At Home hits secondary

At Home Holding’s $300 million first-lien term loan B (B-) was another deal to break, with levels quoted at 99½ bid, 100½ offered, a trader remarked.

Pricing on the loan is Libor plus 400 bps, after firming recently at the low end of the Libor plus 400 bps to 425 bps talk. The debt has a 1% Libor floor and was issued at an original issue discount of 99.

Bank of America Merrill Lynch and Jefferies Finance LLC are leading the deal that will be used to pay down revolver borrowings and refinance notes.

At Home is a Dallas-based big box specialty retailer of home decor products.

Dynacast breaks

Dynacast International’s $530 million first-lien term loan due January 2022 also began trading, with levels quoted at 100¼ bid, 100¾ offered, according to a trader.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

During syndication, the spread on the loan firmed at the wide end of the Libor plus 325 bps to 350 bps talk, and the issue price finalized at the tight end of the 99.75 to par guidance.

J.P. Morgan Securities LLC, Barclays and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice an existing term loan from Libor plus 425 bps with a 1% Libor floor, with existing lenders being taken out at 101 due to the presence of call protection.

Dynacast is a Charlotte, N.C.-based manufacturer of small, highly complex metal components.

CHG tops OID

CHG Healthcare’s fungible $225 million add-on first-lien term loan (B2/B) broke as well, with levels seen at par bid, 100½ offered, a trader said.

Pricing on the add-on loan, which was upsized from $200 million during syndication, is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5.

The spread and floor on the add-on term loan matches the existing first-lien loan.

All of the first-lien term debt is getting 101 soft call protection for six months.

Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc. and Jefferies Finance LLC are leading the deal that will be used to repay second-lien term loan borrowings, and due to the recent upsizing, to fund a dividend.

CHG is a Salt Lake City-based health care staffing firm.

Weather reworks deal

Moving to the primary market, Weather raised pricing on its $1 billion first-lien term loan due February 2020 to Libor plus 500 bps from Libor plus 425 bps, moved the original issue discount for new money to 99 from 99.5, revised the extension fee offered to existing lenders to 100 bps from 25 bps and extended the 101 soft call protection to one year from six months, according to a market source.

Additionally, the excess cash flow sweep was increased to 75%, and the $100 million par offer paydown is now only being offered to first-lien lenders with amounts rejected being reallocated among non-extended lenders, the source said. At launch, the paydown was offered as $50 million on the first-lien term loan at par and $50 million on an existing second-lien term loan at par, with any declined paydown amounts on the first-lien loan applied to the second-lien loan.

As before, the term loan has a 0.75% Libor floor.

Weather updates timing

Commitments for Weather’s term loan are due at noon ET on Wednesday, extended from an original deadline of close of business on Tuesday, the source added.

Allocations are expected on Thursday.

Deutsche Bank Securities Inc. is leading the deal that will be used to extend the maturity of the existing first-lien term loan by three years while increasing pricing from Libor plus 275 bps with a 0.75% Libor floor.

Weather is an Atlanta-based multi-platform media and information company focused on weather.

Filtration changes surface

Filtration Group increased its add-on first-lien term loan to $140 million from $115 million and adjusted the issue price to par from 99.75, a market source said.

Pricing on the add-on term loan still matches the company’s existing first-lien term loan at Libor plus 325 bps with a 1% Libor floor.

Goldman Sachs Bank USA is leading the deal that will be used to pay down second-lien term loan debt.

Filtration Group is a Chicago-based manufacturer and distributor of filtration products to end markets.

On Assignment sets talk

Also in the primary, On Assignment held its bank meeting on Tuesday, launching its $875 million seven-year covenant-light term loan B with talk of Libor plus 350 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

The company’s $975 million credit facility (Ba2/BB) also includes a $100 million revolver.

Commitments are due on June 1, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to help fund the acquisition of Creative Circle LLC for $540 million in cash and $30 million of common stock and to refinance existing debt. The purchase price for Creative Circle may include up to an additional $30 million based on future operating performance.

Pro forma leverage will be 3.7 times based on June 30 LTM adjusted EBITDA and excluding synergies.

Closing is expected this quarter, subject to regulatory approvals and customary conditions.

On Assignment is a Calabasas, Calif.-based provider of diversified professional staffing solutions. Creative Circle is a digital/creative staffing firm.

Calpine holds call

Calpine emerged with plans to hold a lender call at 11 a.m. ET to launch a $1.65 billion seven-year senior secured term loan B with talk of Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 1 p.m. ET on Thursday, the source said.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, MUFG Union Bank, Barclays and RBC Capital Markets are leading the deal that will be used to refinance existing term loans due in 2018 and certain other term loan debt.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

CAbi comes to market

CAbi held a bank meeting in the morning, launching a $125 million four-year credit facility split between a $25 million revolver and a $100 million term loan, a market source said.

Talk on the term loan is Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 on new money, a 25 bps amendment fee for rolls from existing lenders and 101 soft call protection for six months, the source continued.

BNP Paribas Securities Corp. is leading the deal.

Proceeds will be used with $35 million of mezzanine debt to refinance existing debt and fund a dividend.

CAbi is a Rancho Dominguez, Calif.-based designer of ready-to-wear women’s apparel

American Bath launches

American Bath Group launched at its bank meeting a $140 million five-year credit facility that consists of a $25 million revolver and a $115 million term loan, according to a market source.

The term loan is talked at Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

BNP Paribas Securities Corp. is leading the deal that will be used with $35 million of mezzanine debt to fund the acquisition of Bootz Industries, an Evansville, Ind.-based producer of porcelain-on-steel fixtures.

American Bath is an Anaheim, Calif.-based designer and manufacturer of fiberglass reinforced plastic, sheet molded compound, and acrylic bathtubs and showers.

Sage readies deal

Sage Products set a lender call at 10 a.m. ET on Wednesday to launch a repricing of its roughly $551 million first-lien term loan due Dec. 13, 2019 from Libor plus 400 bps with a 1% Libor floor, according to a market source.

The first-lien term loan currently has 101 soft call protection that expires on June 12, the source said.

Barclays and Deutsche Bank Securities Inc. are leading the deal.

Sage Products is a Cary, Ill.-based developer of products primarily for hospital intensive care units, which help prevent hospital-acquired conditions.

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