Safe Fleet frees up; ConvergeOne, Jostens, Cambium, Active Minerals guidance surfaces

By Sara Rosenberg

New York, Nov. 28 – Safe Fleet Holdings LLC finalized the original issue discount on its term loan B-2 at the middle of revised guidance and then the debt emerged in the secondary market on Wednesday to be quoted above its issue price.

In more happenings, ConvergeOne Holdings Inc., Jostens Inc. (Champ Acquisition Corp.), Cambium Learning Group Inc. and Active Minerals International LLC revealed price talk with launch, and C&D Technologies Inc. joined this week’s primary calendar.

Safe Fleet updated

Safe Fleet set the original issue discount on its $65 million senior secured first-lien term loan B-2 (B2/B-) due Feb. 1, 2025 at 97.25, the midpoint of revised talk in the range of 97 to 97.5 and wide of initial talk of 98.6, according to a market source.

As before, the term loan is priced at Libor plus 375 basis points with a 1% Libor floor and has 101 soft call protection for six months.

Earlier in syndication, the spread on the term loan was increased from Libor plus 300 bps with a step-down to Libor plus 275 bps at 6.25 times net total leverage, the call protection was added and the loan was modified to a stand-alone tranche from a fungible add-on piece.

Safe Fleet breaks

After pricing finalized, Safe Fleet’s term loan B-2 freed to trade, with levels seen at 97½ bid, 98½ offered, another source added.

Goldman Sachs Bank USA and UBS Investment Bank are leading the loan, which will be used for mergers and acquisitions.

Closing is targeted for Friday.

Safe Fleet is a Belton, Mo.-based provider of safety and productivity solutions for fleet vehicles.

ConvergeOne sets guidance

Back in the primary market, ConvergeOne held its bank meeting on Wednesday and announced price talk on its $925 million seven-year covenant-light first-lien term loan (B2/B-) and $350 million eight-year covenant-light second-lien term loan (Caa2/CCC), according to market sources.

The first-lien term loan is talked at Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 0% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, sources said.

Commitments are due at 5 p.m. ET on Dec. 11.

The company’s $1,525,000,000 of senior secured credit facilities also include a $250 million five-year ABL revolver.

ConvergeOne lead banks

Deutsche Bank Securities Inc., UBS Investment Bank, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Societe Generale are leading ConvergeOne’s term loans, with Deutsche the left lead on the first-lien and UBS the left lead on the second-lien. Wells Fargo is leading the ABL revolver.

The new debt will be used with up to $750 million of equity to fund the buyout of the company by CVC Fund VII for $12.50 per share, or about $1.8 billion.

Closing is expected this quarter or in the first quarter of 2019, subject to customary conditions and regulatory approvals.

ConvergeOne is an Eagan, Minn.-based IT and managed services provider of collaboration and technology solutions.

Jostens proposed terms

Jostens disclosed price talk on its $750 million seven-year covenant-light first-lien term loan (B) and $150 million eight-year covenant-light second-lien term loan (CCC+) that launched with a bank meeting in the morning, a market source remarked.

Talk on the first-lien term loan is Libor plus 475 bps with a 0% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 875 bps with a 0% Libor floor and a discount of 98, the source added.

Commitments are due at noon ET on Dec. 12.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., BMO Capital Markets, Goldman Sachs Bank USA and Stifel are leading the $900 million of term loans that will be used to help fund the buyout of the company by Platinum Equity from Newell Brands.

Newell’s gross proceeds from the Jostens sale are expected to be about $1.3 billion.

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

Jostens is a Minneapolis-based provider of yearbooks, class jewelry and other scholastic products to schools.

Cambium floats talk

Cambium Learning came out with price talk on its $320 million first-lien term loan (B2/B-/BB) and $130 million second-lien term loan (Caa2/CCC/CCC+) in connection with its afternoon bank meeting, according to a market source.

The first-lien term loan is talked at Libor plus 450 bps with no Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 850 bps with no Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $500 million of credit facilities also include a $50 million revolver (B2/B-/BB).

Commitments are due at noon ET on Dec. 11.

RBC Capital Markets, Deutsche Bank Securities Inc., Barclays and BMO Capital Markets are leading the deal that will be used to help fund the buyout of the company by Veritas Capital for $14.50 in cash per share.

Closing is expected this quarter or in the first quarter of 2019, subject to customary conditions and regulatory approvals.

Cambium is a Dallas-based educational technology solutions company.

Active Minerals launches

Active Minerals held its bank meeting during the session, launching its $120 million term loan at talk of Libor plus 500 bps to 525 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

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

Societe Generale and BNP Paribas Securities Corp. are leading the deal that will be used to support the company’s recently completed buyout by Golden Gate Capital from Merit Capital Partners.

Active Minerals is a Sparks, Md.-based producer and distributor of specialty industrial minerals, including kaolin and gel quality attapulgite clay minerals.

C&D readies loan

C&D Technologies set a bank meeting for 10:30 a.m. ET in New York on Thursday to launch a $400 million seven-year covenant-light first-lien term loan B, according to a market source.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, ING and KeyBanc Capital Markets are leading the deal that will be used with a subordinated sponsor subscription facility, ABL borrowings and a cash contribution from KPS Capital Partners to fund the acquisition of Trojan Battery Co. LLC from Charlesbank Capital Partners and to refinance existing debt.

C&D, a KPS portfolio company, is a Blue Bell, Pa.-based manufacturer and servicer of industrial lead acid batteries and battery systems. Trojan is a Santa Fe Springs, Calif.-based manufacturer, marketer and distributor of industrial deep-cycle batteries for both the motive and stationary power markets.

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