Lummus, Intelsat break; Ventia sets tranching; Ultimate Software discloses guidance

By Sara Rosenberg

New York, June 16 – Lummus Technology (Illuminate Buyer LLC) lowered the spread on its first-lien term loan and tightened the original issue discount before freeing up for trading on Tuesday, and Intelsat Jackson Holdings SA’s debtor-in-possession term loan surfaced in the secondary market as well.

In other news, Ventia Finco Pty Ltd. reduced the size of its incremental term loan and set U.S. and Australian tranche sizes, and HelpSystems (HS Purchaser LLC) accelerated the commitment deadline for its incremental first-lien term loan.

Also, Ultimate Software Group Inc. announced price talk on its incremental first-and second-lien term loans with launch, and Caesars Resorts Collection LLC, Carrols Restaurant Group Inc., Neenah Inc., Diversey (Diamond BC BV) and Cardtronics plc emerged with new deal plans.

Lummus flexes

Lummus Technology trimmed pricing on its $1.05 billion seven-year covenant-lite first-lien term loan to Libor plus 400 basis points from talk in the range of Libor plus 425 bps to 450 bps and changed the original issue discount to 97.5 from 97, according to a market source.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Tuesday, the source said.

The company’s $1.375 billion of credit facilities (B1/B+) also include a $175 million revolver and a $150 million letter-of-credit facility.

Prior to its lender call on June 9, the company upsized the term loan from $600 million and eliminated plans for a secured notes offering that was being considered but never launched. Lummus is still issuing $460 million of senior notes.

Lummus starts trading

On Tuesday, Lummus’ first-lien term loan freed to trade, with levels quoted at 98¼ bid, 99 offered, another source added.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., RBC Capital Markets, Societe Generale, UBS Investment Bank and SunTrust Robinson Humphrey Inc. are leading the credit facilities.

Proceeds from the bank debt and the bonds will be used to help fund the acquisition of the company by the Chatterjee Group and Rhone Capital from Houston-based McDermott International Inc. for $2.725 billion.

Lummus is a developer and licensor of mission essential technologies for the refining and petrochemical industries and a supplier of catalysts and proprietary equipment.

Intelsat frees up

Intelsat’s $1 billion super priority secured covenant-lite debtor-in-possession term loan due July 13, 2021 broke too, with levels quoted at par bid, 101 offered, a market source remarked.

Pricing on the loan is Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 98.5.

Of the total term loan amount, $500 million is delayed-draw and the discount on that piece will be paid if and when it funds. The delayed-draw piece has a 360 bps ticking fee.

The term loan has two six-month extensions at the borrower’s option with a 50 bps extension fee each time.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Intelsat Jackson is a subsidiary of Intelsat SA, a Luxembourg City, Luxembourg-based satellite telecommunications company. The company filed bankruptcy on May 14 under Chapter 11 case number 20-32299.

Ventia updated

Back in the primary market, Ventia scaled back its fungible incremental senior secured term loan due May 21, 2026 to about A$478.5 million equivalent from roughly A$525 million equivalent, and firmed the split at a $200 million tranche and an A$185 million tranche, a market source said.

The U.S. portion of the incremental term loan is priced at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 97.5, and the Australian portion is priced at BBSY plus 550 bps with a 0% floor and a discount of 97. Both tranches have 101 soft call protection for one year.

During syndication, pricing on the U.S. loan was lowered from talk in the range of Libor plus 450 bps to 475 bps and the discount was tightened from the 97 area, and pricing on the Australian loan firmed at the low end of the BBSY plus 550 bps to 575 bps talk.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and UBS Investment Bank are leading the deal, which has allocated.

Ventia funding acquisition

Proceeds from Ventia’s term loan will be used to fund the A$485 million purchase of Broadspectrum, an Australian company that provides infrastructure maintenance services.

Closing is expected on June 30.

Ventia is a provider of industrial and civil services to clients in Australia and New Zealand across telecom, roads, water, power, utilities and environmental sectors. The company was formed by a 50/50 investment partnership between funds managed by affiliates of Apollo Global Management and the Cimic Group.

HelpSystems accelerated

HelpSystems moved up the commitment deadline for its fungible $130 million incremental first-lien term loan due November 2026 to 2 p.m. ET on Tuesday from end of day and allocated late in the session, a market source remarked.

Pricing on the incremental term loan is Libor plus 475 bps with a 1% Libor floor, in line with existing term loan pricing, and the debt was sold at an original issue discount of 98.56. The incremental loan has 101 soft call protection for one year.

Jefferies LLC is leading the deal that will be used to fund two acquisitions, fund cash to the balance sheet, and pay any related transaction and advisory fees and expenses.

Including the incremental term loan, the company’s term loan will total $915 million.

HelpSystems is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity, and business intelligence software.

Ultimate Software guidance

Ultimate Software Group held its lender call on Tuesday afternoon and disclosed price talk on its $3.3 billion of non-fungible incremental first-and second-lien term loans, according to a market source.

Talk on the $2.6 billion incremental covenant-lite first-lien term loan B (B) due May 2026 is Libor plus 400 bps to 425 bps with a 0.75% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, and talk on the $700 million covenant-lite second-lien term loan (CCC) due May 2027 is Libor plus 700 bps with a 0.75% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on Thursday.

Credit Suisse Securities (USA) LLC, Nomura and others to be announced are leading the deal, with Credit Suisse the left lead on the term loan B and Nomura the left lead on the second-lien loan.

Ultimate refinancing Kronos

Proceeds from Ultimate Software’s term loans will be used to refinance debt at Kronos Inc. now that the all-stock merger of the two companies was completed earlier this year.

Hellman & Friedman LLC, the controlling shareholder of both Kronos and Ultimate Software, is the controlling shareholder of the combined company. Blackstone, GIC, Canada Pension Plan Investment Board and JMI Equity are minority investors.

Weston, Fla.-based Ultimate Software and Lowell, Mass.-based Kronos are providers of cloud human capital management and employee experience solutions. The combined company shares joint headquarters in Weston, Fla., and Lowell, Mass.

Caesars coming soon

Also in the primary market, Caesars Resorts emerged with plans to hold a lender call at 10:30 a.m. ET on Wednesday to launch a $1.47 billion five-year covenant-lite first-lien term loan, according to a market source.

Commitments are due at noon ET on June 24, the source said.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Macquarie Capital (USA) Inc., BofA Securities Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc., U.S. Bank and Citizens Bank are leading the deal that will be used to help fund the acquisition of Caesars Entertainment Corp. by Eldorado Resorts Inc.

Eldorado will acquire all of the outstanding shares of Caesars for $8.40 per share in cash consideration and 0.0899 of a share of Eldorado common stock for each Caesars share of common stock.

Closing is expected in mid-2020.

Caesars is a Las Vegas-based gaming and entertainment company. Eldorado is a Reno, Nev.-based gaming company. Upon completion of the transaction the combined company will retain the Caesars name and be based in Reno.

Carrols readies deal

Carrols Restaurant Group set a lender call for 10:30 a.m. ET on Wednesday to launch a non-fungible $50 million incremental covenant-lite term loan B (B3/B-) due April 30, 2026, a market source remarked.

The term loan is non-callable for one year.

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

Wells Fargo Securities LLC is the left lead on the deal that will be used to repay revolver borrowings and to bolster liquidity.

Carrols is a Syracuse, N.Y.-based restaurant franchisee and operator.

Neenah on deck

Neenah scheduled a lender call for Wednesday to launch a $200 million seven-year covenant-lite term loan B (Ba3/BBB-) talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for one year, according to a market source.

Commitments are due at noon ET on June 26, the source said.

J.P. Morgan Securities LLC, BofA Securities Inc., BMO Capital Markets, Commerzbank and Goldman Sachs Bank USA are leading the deal that will be used to refinance $175 million of senior unsecured notes due May 2021.

Neenah is an Alpharetta, Ga.-based specialty materials company focused on premium niche markets that value performance and image.

Diversey joins calendar

Diversey will hold a lender call at 9 a.m. ET on Wednesday to launch a non-fungible $135 million incremental covenant-lite first-lien term loan (B1/CCC+) due September 2024 that is talked with a 1% Libor floor and 101 soft call protection for one year, a market source said.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal, which will be used to repay revolver borrowings.

Diversey is a Fort Mill, S.C.-based hygiene and cleaning solutions company.

Cardtronics plans call

Cardtronics scheduled a lender call for Wednesday to launch a $500 million seven-year term loan B, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Cardtronics is a Houston-based ATM owner and operator.

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