Light & Wonder, Compass Power loans break; TouchTunes, Kroll price guidance surfaces

By Sara Rosenberg

New York, April 7 – Light & Wonder Inc. (Scientific Games Corp.) trimmed the spread on its term loan and tightened the original issue discount before freeing up for trading on Thursday, and Compass Power Generation LLC’s term loan B made its way into the secondary market as well.

In more happenings, TouchTunes (TA TT Buyer LLC) and Kroll released price talk with launch, and Veracode (Mitnick Corporate Purchaser Inc.) joined the near-term primary calendar.

Light flexes, trades

Light & Wonder reduced pricing on its $2.2 billion seven-year term loan (Ba3/BB/BBB-) to SOFR+CSA plus 300 basis points from SOFR+CSA plus 325 bps and moved the original issue discount to 99.25 from talk in the range of 98.5 to 99, according to a market source.

As before, the term loan has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

Recommitments were due at 1 p.m. ET on Thursday and the term loan began trading later in the day, with levels quoted at 99½ bid, par offered, a trader added.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt.

Light & Wonder is a Las Vegas-based cross-platform games and entertainment company.

Compass hits secondary

Compass Power’s $650 million seven-year senior secured term loan B (Ba3/B+) freed to trade in the afternoon, with levels quoted at 97¼ bid, 98¼ offered, a trader remarked.

Pricing on the term loan is SOFR+CSA plus 425 bps with a 1% floor and it was sold at an original issue discount of 97. CSA is 11.4 bps one-month rate, 26.2 bps three-month rate and 42.8 bps six-month rate. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the high end of the 400 bps to 425 bps talk, CSA was added, the discount widened from 99, and changes were made to cash sweep, cash sweep timing, Chewy protections, incremental debt, reinvestment rights and capital expenditures allowance.

Morgan Stanley Senior Funding Inc., MUFG, Credit Agricole and Truist are leading the deal that will be used to refinance an existing loan.

Closing is expected late in the week of April 11.

Compass Power is an owner and operator of gas-fired power plants.

TouchTunes guidance

In other news, TouchTunes held its lender call on Thursday morning and announced talk on its $385 million seven-year covenant-lite first-lien term loan (B1) at SOFR plus 525 bps with a 0.5% floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on April 21, the source added.

Citizens Bank is leading the deal that will be used to help fund the buyout of the company by TA Associates from Searchlight Capital Partners LP and Newlight Partners LP.

TouchTunes is a New York-based in-venue, interactive music and entertainment platform.

Kroll proposed terms

Kroll came out with talk of SOFR plus 375 bps with a 1% floor and an original issue discount of 99 on its fungible $225 million incremental first-lien term loan due April 2027 that launched with a call in the morning, a market source said.

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

Goldman Sachs Bank USA and Stone Point Capital Markets are leading the deal, which will be used to repay revolver borrowings and add cash to the balance sheet.

The company is also seeking through a negative consent amendment to move pricing on its existing term loan due April 2027 to SOFR plus 375 bps with a 1% floor from Libor plus 375 bps with a 1% Libor floor.

Stone Point is the sponsor.

Kroll, previously known as Duff & Phelps, is a New York-based provider of data, technology and insights for risk, governance and growth.

Veracode on deck

Veracode scheduled a lender call for 9 a.m. ET on Monday to launch a $580 million seven-year first-lien term loan, according to a market source.

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

Commitments are due at noon ET on April 20, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to help fund the buyout of the company by TA Associates in a transaction that values Veracode at $2.5 billion. Thoma Bravo, Veracode’s current majority investor, will retain a minority position in the business.

Closing is expected this quarter, subject to customary conditions.

Veracode is a Burlington, Mass.-based provider of application security solutions.

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