Digital Room, FleetCor, Digi International break; ScionHealth, Secretariat changes emerge

By Sara Rosenberg

New York, Dec. 16 – Digital Room (DRI Holding Inc.) finalized pricing on its first-lien term loan at the high side of talk and then the debt made its way into the secondary market, with levels quoted above its original issue discount.

Other deals to free up for trading during Thursday’s market hours included FleetCor Technologies Inc. and Digi International Inc.

In other news, ScionHealth (Knight Health Holdings LLC) firmed the spread on its term loan B at the high end of guidance, widened the original issue discount and extended the call protection, and Secretariat International modified the issue price on its first-lien term loan debt.

Digital Room updated, frees

Digital Room set the spread on its $340 million seven-year covenant-lite first-lien term loan (B2/B-) at Libor plus 525 basis points, the high end of the Libor plus 500 bps to 525 bps talk, according to a market source.

The first-lien term loan still has a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

On Thursday, the first-lien term loan made its way into the secondary market, with levels quoted at 99¼ bid, par ¼ offered, another source added.

The company’s $530 million of senior secured credit facilities also include a $50 million revolver (B2/B-) and a $140 million privately placed second-lien term loan (Caa2).

UBS Investment Bank, BNP Paribas Securities Corp., Nomura and CBAM are leading the deal that will be used with equity to fund the buyout of the company by Sycamore Partners.

Digital Room is a Sherman Oaks, Calif.-based provider of customized marketing solutions to small- and medium-sized businesses.

FleetCor hits secondary

FleetCor Technologies’ fungible $750 million add-on term loan B due April 2028 broke for trading during the session, with levels quoted at 98¾ bid, 99 offered, a market source said.

Pricing on the add-on term loan is Libor plus 175 bps with a 0% Libor floor and it was sold at an original issue discount of 98.55. The debt has 101 soft call protection for six months.

During syndication, the add-on term loan was downsized from $1 billion.

BofA Securities Inc. is the left lead on the deal that will be used to repay revolver borrowings and for general corporate purposes, including acquisitions and potential share repurchases.

FleetCor is an Atlanta-based business payments company.

Digi frees up

Digi International’s $350 million term loan B due 2028 (B2/B) began trading too, with levels quoted at 98¼ bid, 99¼ offered, according to a market source.

Pricing on the term loan is Libor plus 500 bps with a 0.5% Libor floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from talk in the range of Libor plus 400 bps to 425 bps, the discount was changed from 99, the call protection was extended from six months and amortization was revised to 5% per annum.

BMO Capital Markets is leading the deal that will be used to fund the recently completed $347.4 million acquisition of Ventus Holdings, a Connecticut-based managed network as a service solutions provider, and to repay debt.

Digi is a Hopkins, Minn.-based provider of internet of things connectivity products and services.

ScionHealth reworked

Back in the primary market, ScionHealth finalized pricing on its $450 million seven-year senior secured term loan B (B2/B) at Libor plus 525 bps, the high end of the Libor plus 500 bps to 525 bps talk, revised the original issue discount to 93 from talk in the range of 98 to 99, extended the 101 soft call protection to one year from six months and made changes to documentation, a market source remarked.

The term loan still has a 0.5% Libor floor.

Recommitments are due at noon ET on Friday, the source added.

Barclays is the left lead on the deal that will be used to fund the acquisition of Kindred Healthcare’s long-term acute care business and 18 of LifePoint Health’s community hospitals and associated health systems.

Closing is expected this year.

ScionHealth is a Louisville, Ky.-based health care services company being formed in connection with the acquisition by LifePoint of Kindred.

Secretariat tightened

Secretariat International adjusted the original issue discount on its $190 million seven-year first-lien term loan and $30 million delayed-draw first-lien term loan to 99.5 from 99, a market source said.

As before, the term loan debt is priced at Libor plus 475 bps with a 0.75% Libor floor and has 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday and allocations went out later in the day, the source added.

The company is also getting a $70 million eight-year privately placed second-lien term loan.

KeyBanc Capital Markets, Jefferies LLC and Bank of Ireland are leading the deal that will help fund the acquisition of the company by JLL Continuation Fund from another JLL fund and refinance existing debt.

Secretariat is a specialty consulting firm providing independent advisory services and expert testimony to clients involved in disputes or litigation related to construction delays or damages.

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