McAfee breaks; DataBank, Brooks Automation set changes; MediaOcean revises deadline

By Sara Rosenberg

New York, Sept. 27 – McAfee LLC firmed pricing on its credit facilities at the low side of revised talk, and then the debt made its way into the secondary market on Wednesday, with the U.S. first-lien term loan B quoted above its original issue discount.

In more happenings, DataBank increased the size of its first-lien term loan and finalized the spread at the low end of guidance, Brooks Automation Inc. tightened the spread and original issue discount on its term loan B, and MediaOcean LLC moved up the commitment deadline on its add-on term loan B.

Also, Camping World, Greenhill & Co. Inc., Versum Materials LLC and Riverstone Utopia Member LLC disclosed price talk with launch.

McAfee firms spreads

McAfee, a Santa Clara, Calif.-based cybersecurity company, emerged with final pricing on its $4.25 billion of senior secured credit facilities, according to a market source.

The $500 million five-year revolver and $2,555,000,000 seven-year covenant-light first-lien term loan B priced at Libor plus 450 basis points, the low end of revised talk of Libor plus 450 bps to 475 bps and up from initial talk of Libor plus 375 bps to 400 bps, the €507 million ($595 million equivalent) seven-year covenant-light first-lien term loan B firmed at Euribor plus 425 bps, the tight end of revised talk of Euribor plus 425 bps to 450 bps but up from initial talk of Euribor plus 375 bps to 400 bps, and pricing on the $600 million eight-year covenant-light second-lien term loan was set at Libor plus 850 bps, the low end of revised talk of Libor plus 850 bps to 875 bps but up from initial talk of Libor plus 775 bps to 800 bps, the source said.

In addition, the original issue discount on the second-lien term loan finalized at 98.5, the tight end of revised talk of 98 to 98.5 but in line with initial talk of 98.5.

As before, the revolver has a 0% Libor floor, the U.S. first-lien term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the euro first-lien term loan has a 0% floor, a discount of 99.5 and 101 soft call protection for one year, and the second-lien term loan has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

McAfee frees up

After terms were set, McAfee’s credit facilities broke for trading, with the first-lien term loan quoted at par ˝ bid, 101 offered and then it moved up to par 5/8 bid, 101 1/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Investment Bank and Mizuho Bank Ltd. are leading the deal, with Morgan Stanley the left lead on the first-lien and JPMorgan the left lead on the second-lien.

Earlier in syndication, the U.S. first-lien term loan B was downsized from a revised amount of $3.05 billion and an original amount of $3.5 billion and the discount was set at the wide end of the 99 to 99.5 talk, the euro term loan B was added to the capital structure and then upsized from €375 million ($450 million equivalent), the second-lien term loan was downsized from $750 million, the call protection on the first-lien term loans was extended from six months and the MFN sunset was eliminated.

Proceeds will be used to refinance the existing Intel seller financing, pay a dividend to equity holders, which was reduced with the overall downsizing of the term debt, and pay fees and expenses.

Closing is expected on Friday.

BWIC, OWIC surface

Also in trading, a $413 million loan Bid Wanted In Competition was announced, with bids due at 10:30 a.m. ET on Thursday, and a $468 million loan Offers Wanted In Competition emerged, with offers due at 12:01 p.m. ET on Thursday, traders said.

Some names in the BWIC are Alere Inc., Avolon, Chrysler Group LLC, Deluxe Entertainment Services Group Inc., ION Media Networks Inc., Oxbow Carbon LLC, Rocket Software Inc., Vistra Group, West Corp. and WME/IMG Worldwide. There are about 209 issuers in the BWIC.

The OWIC includes debt from, among others, American Axle & Manufacturing Inc., Charter Communications Operating LLC, Horizon Pharma Inc., Idera Inc., Navico Inc., Rocket Software Inc., Vertiv Group Corp. and Zest Anchors. There are about 152 issuers in the OWIC, traders added.

Databank revised

Back in the primary market, DataBank raised its seven-year first-lien term loan to $250 million from $230 million and set pricing at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Allocations are expected on Thursday, the source said.

The company’s now $400 million of credit facilities also include a $50 million revolver and a $100 million 7.5-year pre-placed second-lien term loan.

SunTrust Robinson Humphrey Inc., RBC Capital Markets LLC and TD Securities (USA) LLC are leading the deal that will be used with equity to refinance existing debt and fund growth initiatives, and, due to the first-lien term loan upsizing, to finance a small acquisition.

DataBank is a Dallas-based provider of enterprise-class data center, cloud, and interconnection services.

Brooks tightens pricing

Brooks Automation cut pricing on its $200 million seven-year senior secured covenant-light term loan B (B1/BB-) to Libor plus 250 bps from talk of Libor plus 275 bps to 300 bps and modified the original issue discount to 99.75 from 99.5, a market source said.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Wednesday, accelerated from Thursday, the source added.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used for general corporate purposes, including to prefund acquisitions.

Brooks Automation is a Chelmsford, Mass.-based provider of automation and cryogenic solutions for multiple markets, including semiconductor manufacturing and life sciences.

MediaOcean accelerated

MediaOcean moved up the commitment deadline on its fungible $90 million add-on term loan B (B3) due August 2022 to noon ET on Thursday from Friday, a market source remarked.

Talk on the add-on loan is Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99.75.

Macquarie Capital (USA) Inc. and Golub are leading the deal that will be used to refinance second-lien term loan debt.

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

Camping World launches

Also in the primary market, Camping World held its lender call on Wednesday, launching its $195 million add-on senior secured term loan due Nov. 8, 2023 and repricing of its existing $736 million senior secured term loan B due Nov. 8, 2023 at talk of Libor plus 300 bps to 325 bps with a 0.75% Libor floor, an original issue discount of 99.75 on the add-on, a par issue price on the repricing and 101 soft call protection for six months, a market source said.

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

Goldman Sachs Bank USA is leading the deal.

The add-on term loan will be used for the purchase of inventory and capital expenditures for Gander Outdoors and for future acquisitions, and the repricing will take the existing term loan down from Libor plus 375 bps with a 0.75% Libor floor.

Camping World is a Lincolnshire, Ill.-based seller of RVs and supplier of RV parts, supplies and accessories.

Greenhill reveals guidance

Greenhill held its bank meeting in the afternoon and a few hours before it began, talk on its $300 million five-year first-lien term loan B was announced at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for 18 months, according to a market source.

The company’s $320 million of credit facilities (Ba2/BB) also include a $20 million three-year revolver.

Goldman Sachs Bank USA is the lead bank on the deal.

Proceeds will be used with equity sale proceeds to repay all existing debt and repurchase up to $235 million of common stock.

Greenhill is a New York-based independent investment bank.

Versum details emerge

Versum Materials hosted its lender call in the morning, launching a $570.7 million senior secured covenant-light term loan B due Sept. 30, 2023 at talk of Libor plus 200 bps with a 25 bps step-down when total leverage is 2 times, a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho, MUFG and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0.75% Libor floor.

In connection with the repricing, the company is revising the term loan’s excess cash flow sweep.

Consents from existing lenders are due at 5 p.m. ET on Oct. 4, commitments from new lenders are due at 5 p.m. ET on Oct. 5 and closing is targeted for early October, the source added.

Versum Materials is a Tempe, Ariz.-based electronic materials company.

Riverstone Utopia sets talk

Riverstone Utopia Member released talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $225 million seven-year term loan B (Ba3) that launched with a morning call, according to a market source.

Commitments are due at 5 p.m. ET on Oct. 11, the source said.

Barclays and Riverstone Capital Services LLC are leading the deal that will be used to fund future growth capital expenditure needs, to fund related reserve accounts, to provide an initial reimbursement to Riverstone and to pay related fees and expenses.

Riverstone Utopia Member is owned 100% by Riverstone Holdings LLC and is the direct owner of 50% of the equity interests in Kinder Morgan Utopia Holdco LLC, which in turn owns 100% of the operating assets of the Utopia Pipeline.

The Utopia Pipeline will transport ethane and ethane-propane mixtures from the core of the Utica and Marcellus shale to petrochemical companies operating in Ontario, Canada.

AlixPartners clears

In other news, syndication of AlixPartners LLP’s $1,377,000,000 covenant-light term loan B (B2/B+) due April 2024 is done at talk of Libor plus 275 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Allocations are expected on Thursday, the source added.

Deutsche Bank Securities Inc. is the left lead bank on the deal that will be used to reprice an existing term loan B down from Libor plus 300 bps with a 1% Libor floor.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

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