Ivanti second-lien, TricorBraun, Lakeshore, Clubessential break; Echo, Signature set talk

By Sara Rosenberg

New York, Oct. 26 – Ivanti Software Inc. set the spread and original issue discount on its second-lien term loan at the wide side of guidance, and TricorBraun Holdings Inc. modified the issue price on its incremental first-lien term loan, and then these deals freed to trade on Tuesday.

Also, Lakeshore Recycling Systems (LRS Holdings LLC) tightened the original issue discount on its add-on term loan before breaking for trading, and Clubessential Holdings’ (CE Intermediate I LLC) term loan made its way into the secondary market as well.

In more happenings, Echo Global Logistics and Signature Aviation plc (Brown Group Holding LLC) released price talk with launch, and Parkway Generation LLC and United Site Services (PECF USS Intermediate Holding III Corp.) joined this week’s primary calendar.

Ivanti updates second-lien

Ivanti Software finalized pricing on its $545 million second-lien term loan due December 2028 at Libor plus 725 basis points, the high end of the Libor plus 700 bps to 725 bps talk, and set the original issue discount at 99.5, the wide end of the 99.5 to 99.75 talk, according to a market source.

As before, the second-lien term loan has a 0.5% Libor floor, and hard call protection of 102 in year one and 101 in year two.

The company’s $2,471,200,000 of credit facilities also include a $175 million revolver and a $1,751,200,000 senior secured covenant-lite first-lien term loan B due Dec. 1, 2027.

The first-lien term loan, which broke for trading on Friday, is priced at Libor plus 425 bps with a 0.75% Libor floor and an original issue discount of 99.75, and has 101 soft call protection for six months.

During syndication of the first-lien term loan, pricing firmed at the high end of the Libor plus 400 bps to 425 bps talk and the issue price widened from par.

Ivanti second-lien trades

On Tuesday, Ivanti’s second-lien term loan made its way into the secondary market, with levels quoted at 99¾ bid, par ¼ offered, a trader added.

BofA Securities Inc. is the left lead on the second-lien term loan. Morgan Stanley Senior Funding Inc., BoA Securities Inc., UBS Investment Bank, BMO Capital Markets, Antares Capital and Goldman Sachs Bank USA are leading the revolver and first-lien term loan, with Morgan Stanley the left lead.

The debt will be used to reprice the company’s existing credit facilities. The first-lien term loan B is being repriced down from Libor plus 475 bps with a 1% Libor floor, and the second-lien term loan, which was privately placed but is now broadly syndicated, is being repriced down from Libor plus 850 bps with a 1% Libor floor.

Closing is expected on Dec. 1.

Ivanti is a South Jordan, Utah-based company that automates IT and security operations.

TricorBraun tightens, frees

TricorBraun adjusted the original issue discount on its fungible $150 million covenant-lite incremental first-lien term loan (B2/B-) due March 3, 2028 to 99 from 98.8, a market source said.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 325 bps with a 0.5% Libor floor.

Recommitments were due at 1:30 p.m. ET on Tuesday and the incremental term loan began trading later in the day, with levels quoted at 99¼ bid, 99¾ offered, another source added.

Credit Suisse Securities (USA) LLC, Antares Capital, Nomura and UBS Investment Bank are leading the deal that will be used for acquisition financing.

TricorBraun is a St. Louis-based provider of packaging products.

Lakeshore tweaked, breaks

Lakeshore Recycling Systems changed the original issue discount on its fungible $123 million add-on covenant-lite term loan due August 2028 to 99.75 from 99.5, according to a market source.

Pricing on the add-on term loan is Libor plus 425 bps with a 0.75% Libor floor and the dent has 101 soft call protection until Feb. 28.

Commitments were due at 3 p.m. ET on Tuesday, accelerated from 5 p.m. ET on Tuesday, and the add-on term loan freed to trade later in the day, with levels quoted at par bid, par ½ offered, another source added.

JPMorgan Chase Bank and Macquarie Capital (USA) Inc. are leading the deal that will be used for general corporate purposes and working capital needs.

Lakeshore is a Morton Grove, Ill.-based recycling and waste diversion services provider.

Clubessential hits secondary

Clubessential’s $350 million 5.5-year term loan broke for trading as well, with levels quoted at 99½ bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 400 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $300 million, the spread firmed at the low end of the Libor plus 400 bps to 425 bps talk, and the incremental ratio test was changed to 5x from 4.5x.

Barclays is the left lead on the deal that will be used to refinance existing debt, recapitalize the company following a minority investment by Silver Lake Partners and, due to the recent upsizing, to add cash to the balance sheet. Existing majority shareholder Battery Ventures will make a follow-on investment in the company as part of the transaction.

Clubessential is a provider of vertical SaaS and payments solutions serving member-based organizations such as country clubs, social clubs, golf courses, fitness studios and gyms, government-operated parks and recreation facilities and selected affiliate sports organizations.

Echo proposed terms

Back in the primary market, Echo Global Logistics held its call on Tuesday morning and announced price talk on its $550 million seven-year covenant-lite first-lien term loan (B1/B+) at Libor plus 400 bps to 425 bps with a 0.5% Libor floor and an original issue discount of 99.5, according to a market source.

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

Commitments are due at 5 p.m. ET on Nov. 9.

The company’s $810 million of credit facilities also include a $100 million revolver and a $160 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., BMO Capital Markets, BNP Paribas Securities Corp., Citizens Bank, UBS Investment Bank and MUFG are leading the deal that will help fund the buyout of the company by the Jordan Co. for $48.25 per share in cash, or about $1.3 billion.

Closing is expected in the fourth quarter, subject to stockholder and regulatory approval.

Echo is a Chicago-based provider of tech-enabled transportation and supply chain management services.

Signature guidance

Signature Aviation launched on its morning call its fungible $330 million add-on term loan B due June 7, 2028 with original issue discount talk of 99.5 to 99.75, a market source said.

Pricing on the add-on term loan is Libor plus 275 bps with a step-down to Libor plus 250 bps and a 0.5% Libor floor, in line with pricing on the existing $1.579 billion term loan B.

Commitments are due at noon ET on Nov. 2, the source added.

RBC Capital Markets, Barclays, HSBC Securities (USA) Inc., MUFG, Santander, SMBC, Truist, JPMorgan Chase Bank and Blackstone Capital Markets are leading the deal that will be used to fund the acquisition of Vail Valley Jet Center LLC.

Signature Aviation, a company owned by Blackstone, Global Infrastructure Partners and Cascade Investment, is a London-based aviation services company.

Parkway on deck

Parkway Generation set a lender call for 3 p.m. ET on Wednesday to launch $1.14 billion of senior secured term loans, according to a market source.

The debt is split between a $1 billion term loan B and a $140 million term loan C, the source said.

Morgan Stanley Senior Funding Inc., Jefferies LLC, BNP Paribas Securities Corp. and Goldman Sachs Bank USA are leading the deal.

The term loan B will be used to help fund ArcLight Capital Partners’ acquisition of Public Service Enterprise Group Inc.’s portfolio of eight natural gas-fired power generation facilities in New Jersey and Maryland totaling 4,805 MW (Parkway Generation), and the term loan C will be used to fund a collateral account to cash collateralize the issuance of letters of credit.

United Site readies loan

United Site Services will hold a lender call at 11 a.m. ET on Wednesday to launch a $1.25 billion seven-year term loan B (B-), a market source remarked.

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

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

BofA Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc. and Jefferies LLC are leading the deal that will be used with $550 million of senior secured notes and $750 million of senior unsecured notes to fund the acquisition of the company by a Platinum Equity Continuation Fund, to refinance existing debt, and to pay certain fees, commissions and expenses related to the transaction.

United Site Services is a Westborough, Mass.-based provider of portable restrooms, temporary fence and related site services.

© 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.