StubHub, LegalShield break; Chromalloy, TransDigm, Webpros, Genesys, U.S. Silica set talk

By Sara Rosenberg

New York, March 12 – StubHub Holdings Inc. (StubHub Holdco Sub LLC) increased the size of its U.S. term loan B and lowered the spread, and tightened the original issue discount on its U.S. and euro tranches, and LegalShield upsized its add-on first-lien term loan, and then both of these deals freed to trade on Tuesday.

In more happenings, Chromalloy Corp., TransDigm Group Inc., Webpros, Genesys, U.S. Silica Co. and Proofpoint Inc. released price talk with launch, and Perforce Software LLC, Russell Investments and HireRight Holdings Corp. joined this week’s new issue calendar.

StubHub reworked

StubHub raised its U.S. senior secured term loan B due March 2030 to $1.953 billion from $1 billion, revised price talk to SOFR plus 475 basis points to 500 bps from SOFR plus 500 bps before finalizing at SOFR plus 475 bps following an 11 a.m. ET recommitment deadline, and changed the original issue discount to 99 from talk in the range of 98 to 98.5, according to a market source.

In addition, the company modified the original issue discount talk on its €452 million senior secured term loan B due March 2030 to a range of 98.5 to 99 from a range of 98 to 98.5 and then firmed the discount at 99, the source continued.

As before, the U.S. term loan has a 0% floor, the euro term loan is priced at Euribor plus 500 bps with a 0% floor, and both loans (B3/B-) have 101 soft call protection for six months.

StubHub hits secondary

On Tuesday, StubHub’s bank debt freed to trade, with the U.S. term loan quoted at 99¼ bid, 99¾ offered on the open and then it moved up to 99 5/8 bid, par 1/8 offered, another source added. The euro term loan was quoted at 99¼ bid, 99¾ offered on the break.

JPMorgan Chase Bank is the left lead on the deal.

The loans will be used to amend and extend in full, revised from a partial extension, the company’s existing $1.632 billion term loan B due February 2027 priced at SOFR plus 350 bps and $321 million term loan B-2 due February 2027 priced at SOFR plus 425 bps, and to extend in full a €452 million term loan B due February 2027 priced at Euribor plus 350 bps.

StubHub is a Wilmington, Del.-based ticketing marketplace for live events.

LegalShield upsized, frees

LegalShield lifted its fungible add-on first-lien term loan due December 2028 to $160 million from $125 million, a market source said.

Pricing on the term loan is SOFR+CSA plus 375 bps with a 0.5% floor, and the add-on has an original issue discount of 99.5 and 101 soft call protection for six months. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Commitments were due at 2:30 p.m. ET on Tuesday and the add-on term loan broke for trading shortly thereafter, with levels quoted at 99 5/8 bid, par offered, a trader added.

RBC Capital Markets, Stone Point Capital Markets and KKR Capital Markets are leading the deal that will be used to repay a portion of the company’s existing second-lien debt and to pay related fees and expenses.

Pro forma for the transaction, the first-lien term loan will total $1.14 billion.

Stone Point Capital, MidOcean Partners and Further Global Capital Management are the sponsors.

LegalShield is an Ada, Okla.-based provider of legal and identity theft protection plans.

Chromalloy guidance

Chromalloy held its lender call on Tuesday afternoon and announced talk on its $900 million seven-year term loan B (B2/B) at SOFR plus 400 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on March 21, the source added.

RBC Capital Markets, Goldman Sachs Bank USA, BofA Securities Inc., UBS Investment Bank, BMO Capital Markets, Mizuho, PSP, Citizens and MUFG are leading the deal that will be used to refinance the company’s existing term loan, which was provided by direct lenders as part of the acquisition of the business by Veritas Capital in November 2022.

Chromalloy is a Palm Beach Gardens, Fla.-based provider of proprietary engine solutions, primarily for the commercial aerospace, energy and military end markets.

TransDigm shops loans

TransDigm held a lender call at 1 p.m. ET, launching a $1.708 billion first-lien term loan K due March 2030 and a $4.525 billion first-lien term loan I due August 2028 with talk of SOFR plus 275 bps with a 0% floor and 101 soft call protection for six months, a market source remarked.

The term loan K is talked with an original issue discount of 99.5 to 99.75, and the term loan I is talked with a discount of 99.75 to par.

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

Goldman Sachs Bank USA is the left lead on the deal, which will be used to reprice and extend by about three years an existing $1.708 billion first-lien term loan H due Feb. 22, 2027 priced at SOFR plus 325 bps with a 0% floor, and to reprice an existing $4.525 billion first-lien term loan I due Aug. 24, 2028 down from SOFR plus 325 bps with a 0% floor.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for commercial and military aircraft.

Webpros refinancing

Webpros held a lender call at 3 p.m. ET to launch a $515 million seven-year term loan B (B1//BB) talked at SOFR plus 425 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on March 19, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance an existing $489 million first-lien term loan and to pay down revolver borrowings.

Webpros is a provider of web hosting automation software, web billing and other web applications.

Genesys launches

Genesys announced in the morning that it would hold a lender call at 2:30 p.m. ET to launch a $2.619 billion term loan B due December 2027 talked at SOFR plus 350 bps with no CSA, a 0.75% floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 10 a.m. ET on Friday, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to reprice an existing $2.619 billion term loan B due December 2027 down from SOFR+CSA plus 400 bps with a 0.75% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Genesys is a Daly City, Calif.-based provider of AI-powered experience orchestration.

U.S. Silica repricing

U.S. Silica emerged in the morning with plans to hold a lender call at 11:30 a.m. ET to launch an $868 million first-lien term loan B due March 2030 talked at SOFR plus 400 bps with no CSA, a 0.5% floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on March 20, the source added.

BNP Paribas Securities Corp. and MUFG are the joint lead arrangers on the deal, with BNP the sole bookrunner and administrative agent.

The loan will be used to reprice an existing $868 million term loan B due March 2030 down from SOFR+10 bps CSA plus 475 bps with a 0.5% floor.

U.S. Silica is a Katy, Tex.-based performance materials company and a provider of high value minerals and specialty products.

Proofpoint holds call

Proofpoint came out in the morning with plans to hold a lender call at 1:30 p.m. ET to launch a fungible $800 million incremental term loan B due August 2028 talked with an original issue discount of 99.04 to 99.5, a market source remarked.

Pricing on the term loan B is SOFR+CSA plus 325 bps with a 0.5% floor. CSA is ARRC standard of 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.

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

Goldman Sachs Bank USA is the left lead on the deal that will be used to refinance an existing $800 million second-lien term loan.

Proofpoint is a Sunnyvale, Calif.-based cybersecurity provider.

Perforce readies deal

Perforce Software set a lender call for 1 p.m. ET on Wednesday to launch a non-fungible $375 million incremental first-lien term loan (B2/B-), according to a market source.

Commitments are due at 5 p.m. ET on March 21, the source added.

Antares Capital is leading the deal that will be used to fund an acquisition and pay down revolver borrowings.

Perforce Software, backed by Francisco Partners and Clearlake Capital, is a Minneapolis-based developer of software used for application development.

Russell on deck

Russell Investments will hold a lender all at 1:30 p.m. ET on Wednesday to launch a $1.207 billion first-lien term loan B due May 30, 2027 talked at SOFR plus 500 bps plus 150 bps PIK interest with a 1% floor, a cash original issue discount of 3 points and a PIK original issue discount of 4 points, a market source said.

The term loan is callable at par through December 2025, then at 101 through December 2026 and at 103 thereafter.

Commitments are due at 5 p.m. ET on March 22, the source added.

Barclays is the left lead on the deal that will be used to amend and extend an existing first-lien term loan B due May 30, 2025.

The size of the extended term loan reflects a $100 million fiscal year 2023 paydown and PIK original issue discount.

Russell Investments, backed by TA Associates and Reverence Capital Partners, is a Seattle-based investment solutions provider.

HireRight joins calendar

HireRight scheduled a lender call for 10:30 a.m. ET on Wednesday to launch a fungible $250 million incremental first-lien term loan, according to a market source.

Goldman Sachs Bank USA, RBC Capital Markets, Stone Point Capital Markets, Barclays, Citizens and Capital One are leading the deal that will be used to help fund the acquisition of the company by General Atlantic and Stone Point Capital LLC. The sponsors are currently the beneficial owners of about 75% of the company’s outstanding shares of common stock, and will acquire the outstanding shares they do not already own for $14.35 per share in cash, which implies a total enterprise value of around $1.65 billion.

Closing is expected in mid-2024, subject to approval by stockholders of a majority of the shares not owned by the sponsors, receipt of regulatory approvals and other customary conditions.

HireRight is a Nashville-based provider of technology-driven workforce risk management and compliance solutions.

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