Rocket Software, J.D. Power break; Vertex Aerospace, AssuredPartners changes emerge

By Sara Rosenberg

New York, Sept. 28 – Rocket Software Inc.’s first-lien term loan B made its way into the secondary market on Thursday, with the debt bid in line with its original issue discount, and J.D. Power’s incremental first-lien term loan broke as well.

Meanwhile, in the primary market, Vertex Aerospace Services Corp. raised pricing on its term loan B and removed the leverage-based margin step-up, and AssuredPartners Inc. tightened the issue price on its incremental term loan B-4.

Also, Evertec Inc., iSolved and FR Refuel LLC disclosed price talk with launch, and Delrin joined the near-term primary calendar.

Rocket hits secondary

Rocket Software’s $1.41 billion first-lien term loan B due November 2028 broke for trading, with levels quoted at 98½ bid, 98 7/8 offered, according to a trader.

Pricing on the U.S. term loan is SOFR plus 475 basis points with a 0.5% floor and it was sold at an original issue discount of 98.5.

The company is also getting a €575 million first-lien term loan B due November 2028 priced at Euribor plus 475 bps with a 0% floor and issued at a discount of 98.5.

Both term loans (B2/B-) have 101 soft call protection for six months.

During syndication, the U.S. term loan was downsized from $1.6 billion, the euro term loan was upsized from €400 million, and the discount on both tranches firmed at the tight end of the 98 to 98.5 talk.

RBC Capital Markets LLC, Credit Suisse, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs and Truist are leading the deal that will be used to extend existing first-lien term loans from November 2025.

Rocket Software, a Bain Capital portfolio company, is a Waltham, Mass.-based infrastructure software provider.

J.D. Power tops OID

J.D. Power’s fungible $525 million incremental first-lien term loan (B2/B-/BB-) due May 2026 freed up too, with levels quoted at 99¾ bid, par 1/8 offered, a trader remarked.

Pricing on the term loan is SOFR+CSA plus 350 bps with a 0.5% floor, and the new debt was sold at an original issue discount of 99.51. CSA is ARRC standard 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate. The incremental term loan has 101 soft call protection for six months.

RBC Capital Markets, UBS Investment Bank, TD Securities (USA) LLC, Truist Securities and KKR Capital Markets are leading the deal that will be used to fund the acquisition of Autovista Group, a pan-European and Australian automotive data, analytics and industry insights provider, from Hayfin Capital Management.

Closing is expected this year, subject to customary conditions and regulatory approval.

Thoma Bravo is the sponsor.

J.D. Power is a Troy, Mich.-based provider of consumer insights, advisory services and data and analytics.

Vertex revised

Vertex Aerospace widened pricing on its $913 million term loan B (B1/B+) due Dec. 6, 2028 to SOFR plus 325 bps from SOFR plus 300 bps and eliminated the 25 bps step-up at more than 3.75x first-lien net leverage, according to a market source.

As before, the term loan has 10 bps CSA, a 0.75% floor, an original issue discount of 99.875 for both rollover and new money commitments, and 101 soft call protection for six months.

Commitments were due at 3 p.m. ET on Thursday, the source added.

RBC Capital Markets is leading the deal that will be used to reprice an existing $913 million term loan B due Dec. 6, 2028 down from SOFR+10 bps CSA plus 350 bps with a step-up to SOFR+10 bps CSA plus 375 bps at more than 3.75x first-lien net leverage and a 0.75% floor.

Vertex is a McLean, Va.-based provider of solutions across the operations and logistics, aerospace, training, and technology markets to national security, defense, civilian and international clients.

AssuredPartners tweaked

AssuredPartners modified the issue price on its fungible $400 million incremental term loan B-4 to par from 99.75, a market source remarked.

The issue price on the company’s $496.25 million repriced term loan B-4 remained at par.

Pricing on the total $896.25 million senior secured covenant-lite first-lien term loan B-4 (B2/B) due Feb. 13, 2027 is still SOFR plus 375 bps with a 0.5% floor, and the debt still has 101 soft call protection for six months.

Recommitments were due at 4 p.m. ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays, JPMorgan Chase Bank, BMO Capital Markets, Goldman Sachs Bank USA, RBC Capital Markets, Deutsche Bank Securities Inc., Mizuho, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and ING are bookrunners on the incremental loan, Morgan Stanley is sole bookrunner on the repricing. BofA Securities Inc. is the agent.

The incremental term loan will be used to fund acquisitions under letters of intent and for general corporate purposes, and the repricing will take the existing term loan down from SOFR plus 425 bps with a 0.5% floor.

Closing is expected during the week of Oct. 2.

AssuredPartners is a Lake Mary, Fla.-based insurance brokerage firm.

Evertec guidance

Evertec held its lender call on Thursday morning and announced talk on its $600 million seven-year covenant-lite term loan B (Ba3/BB-) at SOFR plus 375 bps to 400 bps with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months, a market source said.

Commitments are due on Oct. 12, the source added.

Truist Securities Inc. is the left lead on the deal that will be used with cash on hand to fund the acquisition of Sinqia for R$27.19 per share, increased by a customary daily “ticking fee” of up to R$1.00 per share depending on the timing of the closing, subject to certain limited exceptions. Consideration will be in the form of 90% cash and 10% Evertec shares.

Based on the closing price of Sinqia shares on July 19, Sinqia has an equity valuation of R$2.326 billion (U.S. $485 million) and an enterprise value of R$2.835 billion (U.S. $591 million).

Closing is expected in the fourth quarter, subject to satisfaction of customary conditions and approvals.

Evertec is a Puerto Rico-based full-service transaction processing company. Sinqia is a Brazil-based provider of technology for financial institutions.

iSolved proposed terms

iSolved came out with talk of SOFR plus 425 bps with a 0.5% floor and an original issue discount of 99 on its $550 million seven-year first-lien term loan in connection with its afternoon bank meeting, according to a market source.

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

The company’s $625 million of credit facilities also include a $75 million five-year revolver.

Commitments are due on Oct. 10, the source added.

UBS Investment Bank, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Jefferies LLC and JPMorgan Chase Bank are leading the deal that will be used to repay existing debt, to fund cash to the balance sheet and for general corporate purposes.

Accel-KKR is the sponsor.

iSolved is a provider of cloud based human capital management software, focusing on SMB and midmarket organizations.

FR Refuel talk

FR Refuel LLC launched on its morning call its non-fungible $120 million incremental covenant-lite first-lien term loan due Nov. 8, 2028 at talk of SOFR plus 475 bps with a 0.75% floor and an original issue discount of 97, a market source remarked.

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

Commitments are due on Oct. 13, the source added.

Citizens Bank is leading the deal that will be used to term out revolver borrowings and to fund an acquisition.

First Reserve is the sponsor.

FR Refuel is a Charleston, S.C.-based regional convenience store operator.

Delrin readies deal

Delrin set a lender call for 10 a.m. ET on Monday to launch a $700 million equivalent U.S. and euro first-lien term loan due 2030, according to a market source.

The U.S. portion of the term loan will have a minimum size of $500 million, the source added.

Goldman Sachs Bank USA, RBC Capital Markets, BMO Capital Markets, UBS Investment Bank, KeyBanc Capital Markets and KKR Capital Markets are leading the deal that will be used to help fund the acquisition of an 80.1% ownership interest in the company by The Jordan Co. from DuPont in a transaction valuing the business at $1.8 billion.

Under the agreement, DuPont will receive pre-tax cash proceeds of about $1.25 billion, a note receivable of $350 million, and will own a 19.9% non-controlling common equity interest in Delrin.

Closing is expected around year-end, subject to customary conditions and regulatory approval.

Delrin is a producer of acetal homopolymer, a high-end engineering thermoplastic.

Loan indices slide

In other news, IHS Markit’s iBoxx loan indices were weaker on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day down 0.06% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.11%.

Month to date, the MiLLi is up 0.9% and year to date it is up 9.84%, and the LLLi is up 0.67% month to date and up 9.14% year to date.

Average secondary market bids in the U.S. on Wednesday were 93.08, down 0.02% from the previous day and up 1.32% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Carestream Dental’s November 2021 covenant-lite term loan at 88, up from 86, HDT’s July 2021 covenant-lite term loan B at 47, up from 46, and Radiology Partners’ July 2018 covenant-lite term loan at 75.22, up from 74.15.

Some top decliners on Wednesday were EyeCare Partners’ August 2022 incremental term loan at 72.7, down from 74, Sound Physicians’ June 2018 term loan at 45.18, down from 45.81, and Venator’s June 2017 covenant-lite term loan B at 44.38, down from 45.

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