WatchGuard Technologies, Asurion, BCP Renaissance term loans free to trade

By Sara Rosenberg

New York, Aug. 17 – WatchGuard Technologies Inc. firmed the original issue discount on its first-lien term loan at the tight end of revised guidance and Asurion LLC set the spread on its term loan B-10 at the low side of talk, and then both of these deals made their way into the secondary market on Wednesday.

Also, BCP Renaissance Parent LLC allocated a fungible add-on term loan B-3, which started trading as part of one tranche with the existing term loan B-3.

WatchGuard updated, breaks

WatchGuard finalized the original issue discount on its $550 million seven-year first-lien term loan (B2/B-) at 93.5, the tight end of revised talk of 93 to 93.5 and tighter than initial talk of 92 to 93, a market source remarked.

Pricing on the first-lien term loan is SOFR plus 525 basis points with a 0.75% floor, and the debt has 101 soft call protection for one year.

Earlier in syndication, some changes were made to documentation.

On Wednesday, the first-lien term loan broke for trading, with levels quoted at 94 bid, 95 offered before moving up to 94½ bid, 95½ offered, another source added.

Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are leading the deal. Barclays is the administrative agent on the first-lien term loan.

Proceeds will be used with a $200 million privately placed second-lien term loan to support the acquisition of a majority stake in the company by Vector Capital.

WatchGuard is a Seattle-based provider of network security, endpoint security, secure Wi-Fi, multi-factor authentication and network intelligence.

Asurion finalized, trades

Asurion firmed pricing on its $1.184 billion term loan B-10 due 2028 (Ba3/B+) at SOFR plus 400 bps, the low end of the SOFR plus 400 bps to 425 bps talk, according to a market source.

As before, the term loan B-10 has a 0% floor, 10 bps CSA, an original issue discount of 95 and 101 soft call protection for one year.

The term loan B-10 made its way into the secondary market during the session, with levels quoted at 95¼ bid, 95¾ offered, another source added.

BofA Securities Inc. is the left lead on the deal that will be used with $600 million of cash on the balance sheet to refinance an existing term loan B-6 due November 2023.

Asurion is a Nashville-based provider of technology-protection services.

BCP Renaissance frees

BCP Renaissance’s fungible $52 million add-on senior secured term loan B-3 due Oct. 31, 2026 (B2/B+) freed to trade, with levels quoted at 98¾ bid, 99½ offered, a trader said. The add-on term loan trades with the existing term loan B-3 as one tranche and levels on the existing loan were unchanged with allocations of the add-on.

The add-on term loan B-3 is priced at SOFR plus 350 bps with a 1% floor.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to partially repay a $106 million term loan B-1 due November 2024.

Closing was expected to occur on Wednesday.

Pro forma for the transaction, the term loan B-3 totals $1,012,331,344.

BCP Renaissance is the owner of a 32.435% interest in the Rover Pipeline, which transports natural gas from the Marcellus and Utica Shale production areas.

Chefs’ Warehouse allocates

In other news, Chefs’ Warehouse Inc. (Dairyland USA Corp.) allocated its $300 million seven-year first-lien term loan (B2/B+), according to a market source.

Pricing on the term loan is SOFR+CSA plus 475 basis points with a 0.5% floor and it was sold at an original issue discount of 97. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $250 million, the spread was reduced from SOFR+CSA plus 500 bps and the discount was revised from 95.

Jefferies LLC, BMO Capital Markets, BofA Securities Inc. and JPMorgan Chase Bank are leading the deal that will be used to refinance an existing first-lien term loan and fund cash to the balance sheet.

Chefs’ Warehouse is a Ridgefield, Conn.-based distributor of specialty food products.

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