Cambrex firms tranching, flexes higher; Ticketek updates terms; Waystar adjusts OID

By Sara Rosenberg

New York, Nov. 21 – In the primary market on Thursday, Cambrex Corp. finalized its U.S. and euro first-lien term loan sizes, widened spreads and original issue discounts on its first- and second-lien term loan debt, and increased Libor floors on the U.S. pieces.

Furthermore, Ticketek set U.S. and Australian dollar tranching for its first-lien term loan and revised MFN, and Waystar tightened the original issue discount on its add-on term loan B.

Cambrex revised

Cambrex firmed its U.S. seven-year covenant-lite first-lien term loan (B2/B) size at $710 million, raised pricing to Libor plus 500 basis points from talk in the range of Libor plus 450 bps to 475 bps, changed the Libor floor to 1% from 0%, and modified the original issue discount to 98 from 99, according to a market source.

Also, the company set its euro seven-year covenant-lite first-lien term loan (B2/B) size at $165 million euro equivalent, lifted the spread to Euribor plus 525 bps from talk in the range of Euribor plus 450 bps to 475 bps and revised the discount to 98 from 99, while leaving the 0% floor intact, the source said.

In addition, the company flexed pricing on its $250 million eight-year covenant-lite second-lien term loan (Caa2/B-) to Libor plus 900 bps from talk in the range of Libor plus 850 bps to 875 bps, changed the Libor floor to 1% from 0% and adjusted the discount to 98 from 98.5.

As before, the first-lien term loan debt has 101 soft call protection and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Originally, the first-lien term loan was launched as an $875 million U.S. tranche, but on Monday it was announced that a portion of the loan would be in euros due to reverse inquiry and business needs.

The company’s $1.26 billion of senior secured credit facilities also include a $135 million revolver (B2/B).

Cambrex lead banks

RBC Capital Markets, Barclays, Societe Generale, UBS Investment Bank and Mizuho are leading Cambrex’s credit facilities.

The new debt will be used with $1,382,000,000 equivalent of equity to fund the buyout of the company by Permira for $60.00 per share in cash. The transaction is valued at about $2.4 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including receipt of approval by Cambrex’s shareholders and regulatory approvals.

Cambrex is an East Rutherford, N.J.-based small molecule company providing drug substance, drug product and analytical services.

Ticketek updated

Ticketek set the split for its $285 million U.S. dollar equivalent seven-year senior secured first-lien term loan B (B2/B) as a $205 million U.S. tranche and an $80 million equivalent Australian dollar tranche, and revised the MFN to 50 bps for 24 months from 75 bps for six months, a market source remarked.

The U.S. first-lien term loan remained priced at Libor plus 425 bps with a 25 bps step-down upon 0.5x net first-lien deleveraging, a 0% Libor floor and an original issue discount of 99, and the Australian dollar first-lien term loan is priced at BBSY plus 475 bps.

The first-lien term loan debt still has 101 soft call protection for six months.

Recommitments were due at 4 p.m. ET on Thursday, the source added.

The company is also getting a $100 million U.S. dollar equivalent privately placed second-lien term loan (B3/CCC+).

Ticketek being acquired

Ticketek will use its new bank debt to help fund its buyout by Silver Lake Partners from Affinity Equity Partners.

Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, Jefferies LLC, KKR Capital Markets, Macquarie Capital (USA) Inc., UBS Investment Bank and Societe Generale are leading the deal.

Closing is expected this year, subject to customary conditions including approval by the Australian Foreign Investment Review Board.

Ticketek is a Sydney, Australia-based provider of ticketing, promotions, venue operations and data analytics marketing solutions to the live entertainment industry in Australia and New Zealand.

Waystar tweaked

Waystar modified the original issue discount on its fungible $100 million add-on covenant-lite term loan B due September 2026 to 99.25 from 99, a market source said.

The add-on term loan is priced at Libor plus 400 bps with a 0% Libor floor.

Commitments remained due at 5 p.m. ET on Thursday.

J.P. Morgan Securities LLC is leading the deal that will be used to fund an acquisition.

Waystar, which was formed in 2017 through the combination of Navicure and ZirMed, is a provider of revenue cycle technology.

EPIC Y-Grade allocates

In other news, EPIC Y-Grade Services LP allocated on Thursday its fungible $150 million incremental first-lien term loan (B3/B) due June 2024, according to a market source.

Pricing on the incremental term loan came in line with talk at Libor plus 600 basis points with a 1% Libor floor an original issue discount of 97. The debt has 101 hard call protection for one year.

UBS Investment Bank, Mirae and Deutsche Bank Securities Inc. are the joint bookrunners on the deal.

Proceeds will be used for general corporate purposes.

In connection with this transaction, pricing on the company’s existing first-lien term loan is being increased from Libor plus 550 bps to match the incremental loan pricing.

EPIC Y-Grade is a transporter of natural gas liquids.

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