Syniverse breaks; TerraForm, Pixelle revised; Bombardier pulled; Polyconcept changes timing

By Sara Rosenberg

New York, May 10 – Syniverse Holdings LLC’s term loan B made its way into the secondary market on Tuesday, with the debt bid in line with its original issue discount.

In other news, TerraForm Power finalized pricing on its first-lien term loan at the low end of talk, and Pixelle (Spectrum Group Buyer Inc.) set the spread on its first-lien term loan B at the high end of guidance, raised the floor, sweetened the call protection and shortened the maturity.

Also, Bombardier Recreational Products Inc. (BRP Inc.) withdrew its incremental term loan from market, and Polyconcept accelerated the commitment deadline for its term loan B.

Syniverse hits secondary

Syniverse’s $1.025 billion seven-year term loan B (B3/B-) freed to trade on Tuesday, with levels quoted at 96 bid, 96˝ offered, a market source remarked.

Pricing on the term loan is SOFR plus 700 basis points with a 0.5% floor and it was sold at an original issue discount of 96. The debt has 101 soft call protection for six months, an ESG step-down of 7.5 bps subject to an outlined key performance indicator that steps back up by 7.5 bps if the company fails to meet the KPI metric, and no CSA.

During syndication, pricing on the term loan was increased from talk in the range of SOFR plus 500 bps to 525 bps, the discount widened from 97, the preferred dividend restricted payment carve-out was revised to up to 4.85x first-lien net leverage from up to 6x total net leverage, an available amount leverage governor was added requiring an ability to incur $1 of ratio debt, and the free and clear was modified to the greater of $165 million and 75% of EBITDA from the greater of $242 million and 100% of EBITDA.

Syniverse lead banks

Barclays, Goldman Sachs Bank USA, Mizuho, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and Societe Generale are leading Syniverse’s term loan.

Proceeds will be used with $340 million of preferred equity, upsized recently from $315 million, and an equity investment from Twilio Inc. to refinance the company’s existing capital structure.

The Carlyle Group will maintain its majority interest in Syniverse.

Closing is expected in Syniverse’s fiscal second-quarter 2022.

Syniverse is a Tampa, Fla.-based provider of technology and business services for the telecommunications industry.

TerraForm updated

Moving to the primary market, TerraForm Power firmed pricing on its $500 million seven-year first-lien green term loan (Ba2/BB+/BB+) at SOFR+10 bps CSA plus 275 bps, the low end of the 275 bps to 300 bps talk, according to a market source.

As before, the term loan has a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months.

RBC Capital Markets, Barclays and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Brookfield Asset Management is the sponsor.

TerraForm is a New York-based owner and operator of a renewable power portfolio including solar and wind assets.

Pixelle reworked

Pixelle set pricing on its $507 million first-lien term loan B at SOFR plus 650 bps, the high end of the SOFR plus 625 bps to 650 bps talk, changed the floor to 0.75% from 0.5%, revised the call protection to a 101 hard call for one year from a 101 soft call for a year and shortened the maturity to six years from seven years, while leaving the original issue discount at 98, a market source said.

The company’s $567 million of credit facilities (B1/B) also include a $60 million revolver.

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

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Barclays, BMO Capital Markets and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital from Lindsay Goldberg.

Closing is expected this quarter, subject to customary conditions, including regulatory approvals.

Pixelle is a Spring Grove, Pa.-based manufacturer of fiber-based specialty products for label technology, food packaging, and other commercial and industrial end uses.

Bombardier shelved

Bombardier Recreational Products pulled from market its non-fungible $500 million seven-year incremental term loan (Ba2/BB) due to unfavorable market conditions, according to a market source.

The term loan was talked at SOFR+10 bps CSA plus 325 bps to 350 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months.

RBC Capital Markets and Citigroup Global Markets Inc. were leading the deal that was going to be used for general corporate purposes, including to repay outstanding revolver borrowings, to fund an issuer bid to purchase for cancellation up to C$250 million of its subordinate voting shares through a “modified Dutch auction” and to pay related fees and expenses.

Bombardier is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

Polyconcept accelerated

Polyconcept moved up the commitment deadline for its $800 million seven-year covenant-lite term loan B to 5 p.m. ET on Wednesday from noon ET on Thursday, a market source remarked.

Talk on the term loan is SOFR plus 525 bps to 550 bps with a 0.5% floor, an original issue discount of 98 and 101 soft call protection for six months.

The company is also getting a $125 million five-year ABL revolver.

KKR Capital Markets, Barclays, Jefferies LLC, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., PNC and Stifel are leading the deal that will be used to refinance existing loans.

Polyconcept is a New Kensington, Pa.-based supplier of promotional products.

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