Novolex, Flying, Charter, Halyard, Q Holding, Equinix, Tekni, Consolidated, Vertafore break

By Sara Rosenberg

New York, Dec. 16 – Deals from Novolex (Flex Acquisition Co. Inc.), Flying Fortress Inc., Charter Communications Inc., Halyard Health Inc., Q Holding Co., Equinix Inc. and Tekni-Plex Inc. all surfaced in the secondary market on Friday.

Also, Consolidated Communications Inc. finalized spread and original issue discount on its term loan at the tight side of guidance, and Vertafore Inc. (VF Holding Corp.) firmed pricing on its first-lien term loan at the low end of talk, and then these deals freed up for trading as well.

In more happenings, DigitalGlobe Inc. trimmed the spread on its term loan, added a leverage-based step-down and tightened the original issue discount, and Vestcom International Inc. upsized its first-lien term loan, set the spread at the tight end of guidance, added a step-down and revised the issue price.

Furthermore, MediaOcean LLC finalized pricing on its first-lien term loan repricing at the wide end of talk, and Las Vegas Sands LLC came to market with a repricing transaction.

Novolex tops OID

Novolex’s credit facility broke for trading, with the $1,575,000,000 seven-year covenant-light term loan B quoted at 100¾ bid, 101¼ offered, according to a trader.

The term loan B is priced at Libor plus 325 basis points with a 1% Libor floor and was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan B was trimmed from talk of Libor plus 375 bps to 400 bps, and the MFN sunset was removed for U.S. dollar incremental term loans and set at 12 months for incremental term loans denominated in other currencies.

The company’s $1,875,000,000 credit facility (B1/B) also includes a $300 million revolver.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are leading the credit facility that will be used with $625 million of unsecured notes to help fund the buyout of the company by Carlyle Group from Wind Point Partners and TPG Growth.

Closing is expected on Dec. 29.

Novolex is a Hartsville, S.C.-based packaging company.

Flying Fortress breaks

Flying Fortress’ $750 million term loan B (Baa3/BBB-) due October 2022 freed to trade too, with levels seen at 100¼ bid, 100 5/8 offered, a trader said.

Pricing on the loan is Libor plus 225 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.875. The loan has 101 soft call protection for six months.

On Thursday, pricing on the loan was reduced from Libor plus 250 bps.

RBC Capital Markets LLC and Bank of America Merrill Lynch are leading the deal that will be used to amend, extend and reprice an existing term loan B due April 2020 priced at Libor plus 275 bps with a 0.75% Libor floor.

Closing is targeted for the week of Dec. 19.

Flying Fortress is a subsidiary of AerCap, a Dublin-based aircraft leasing company.

Charter begins trading

Charter Communications’ term loans broke for trading, with the $995 million term loan H due January 2022 quoted at 100 1/8 bid, 100½ offered, and the $2,786,000,000 term loan I due January 2024 quoted at 100¼ bid, 100½ offered, a trader remarked.

Pricing on the term loan H is Libor plus 200 bps with no Libor floor, and pricing on the term loan I is Libor plus 225 bps with no Libor floor, and both term loans were sold at an original issue discount of 99.875 and have 101 soft call protection for six months.

During syndication, the discount on the term loan H was tightened from 99.75, and the discount on the term loan I was revised from talk of 99.5 to 99.75.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and UBS Investment Bank are leading the deal that will reprice an existing term loan H from Libor plus 250 bps with a 0.75% Libor floor and extend the maturity from August 2021 and reprice an existing term loan I from Libor plus 275 bps with a 0.75% Libor floor and extend the maturity by about one year.

Charter is a Stamford, Conn.-based broadband communications company and cable operator.

Halyard frees up

Halyard Health’s $339,025,000 senior secured covenant-light first-lien term loan B (Ba2/BB-) due Oct. 31, 2021 began trading as well, with levels quoted at 100¼ bid, 101 offered, according to a trader.

Pricing on the loan is Libor plus 275 bps with a 0.75% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and MUFG are leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 0.75% Libor floor.

Closing is expected on Tuesday.

Halyard Health is an Alpharetta, Ga.-based medical technology company focused on preventing infection, eliminating pain and speeding recovery.

Q Holding starts trading

Q Holding’s $113 million incremental term loan B (B3) due December 2021 also surfaced in the secondary market, with levels quoted at 99 7/8 bid, 100 7/8 offered, a trader said.

Pricing on the incremental term loan B is Libor plus 500 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

RBC Capital Markets LLC is leading the deal that will be used to fund the acquisition of Degania Silicone Ltd., a manufacturer of medical catheters.

With the incremental loan, the term loan B will total $283 million.

Q Holding is a Twinsburg, Ohio-based manufacturer of highly engineered precision-molded elastomeric components used in a broad range of medical, pharmaceutical and electrical management applications.

Equinix emerges in secondary

Equinix’s repriced $248.75 million U.S. term loan B broke on Friday, with levels quoted at 100½ bid, 101 offered, according to a trader.

Pricing on the loan is Libor plus 250 bps with no floor, and it was issued at par. The debt has 101 soft call protection for six months.

The company is also repricing its £298.5 million term loan at Libor plus 300 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

During syndication, pricing on the U.S. loan firmed at the low end of the Libor plus 250 bps to 275 bps talk, and pricing on the sterling loan finalized at the tight end of the Libor plus 300 bps to 325 bps talk.

The repricing will take the U.S. term loan B down from Libor plus 325 bps with a 0.75% Libor floor and the sterling term loan B down from Libor plus 375 bps with a 0.75% Libor floor.

Bank of America Merrill Lynch is the left lead on the deal.

Equinix is a Redwood City, Calif.-based interconnection and data center company.

Tekni-Plex breaks

Tekni-Plex’s fungible $80 million tack-on first-lien term loan due June 2022 was another deal to free up, with levels seen at 100½ bid, 101 offered, a trader remarked.

Pricing on the tack-on term loan is Libor plus 350 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and it was sold at an original issue discount of 99.75.

On Thursday, the tack-on term loan was upsized from $45 million and the discount was revised from 99.5.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay a portion of the company’s existing second-lien term loan.

Tekni-Plex is a King of Prussia, Pa.-based provider of specialty packaging solutions.

Consolidated sets pricing

Consolidated Communications firmed pricing on its fungible $935 million incremental senior secured term loan (Ba3/BB-) due Oct. 5, 2023 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The term loan has a 1% Libor floor, 101 soft call protection through April 5, 2017 and a ticking fee starting on day 31 of the full spread plus the greater of the 1% Libor floor and three month adjusted Libor.

Morgan Stanley Senior Funding Inc., MUFG, TD Securities (USA) LLC and Mizuho Bank Ltd. are leading the deal. Wells Fargo Securities LLC is the administrative agent.

Consolidated hits secondary

With final terms in place, Consolidated Communications’ term loan began trading, with levels quoted at 100 3/8 bid, 100 7/8 offered, a trader said.

The new loan is being obtained in connection with the acquisition of FairPoint Communications Inc. for a fixed exchange ratio of 0.73 shares of Consolidated Communications common stock for each share of FairPoint common stock. The all-stock merger transaction is valued at about $1.5 billion, including debt.

Proceeds from the loan and cash on hand, or other sources of liquidity, will be used to refinance FairPoint debt and pay fees and expenses associated with the transaction.

Pro forma for the transaction, net leverage is 3.8 times as of Sept. 30.

Closing is expected by mid-2017, subject to federal and state regulatory approvals, the approval of both companies’ shareholders and other customary conditions.

Consolidated Communications is a Mattoon, Ill.-based broadband and business communications provider. FairPoint is a Charlotte, N.C.-based provider of data, voice and video technologies.

Vertafore updated, trades

Vertafore set pricing on its $1.1 billion covenant-light first-lien term loan (B2/B-) due June 2023 at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

The loan then made its way into the secondary market, with levels quoted at 100¼ bid, 100 5/8 offered, a trader added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Mizuho are leading the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

DigitalGlobe reworked

DigitalGlobe lowered pricing on its $1,275,000,000 seven-year term loan B to Libor plus 275 bps from Libor plus 300 bps, added a step-down to Libor plus 250 bps when total leverage is 2.75 times and moved the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $1,475,000,000 credit facility (Ba3/BB+) also includes a $200 million revolver.

Final commitments were due at 4 p.m. ET on Friday, the source said.

Barclays is the lead left on the deal that will be used to pay down revolver borrowings, to refinance a term loan B due 2020 and 5¼% notes due 2021 and to pay related fees and expenses.

DigitalGlobe is a Westminster, Colo.-based provider of Earth imaging and geospatial solutions.

Vestcom modified

Vestcom International raised its covenant-light first-lien term loan (B2) to $345 million from $335 million, finalized pricing at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, added a step-down to Libor plus 400 bps at total net leverage of 5.5 times, changed the original issue discount to 99.5 from 99 and eliminated the MFN sunset, a market source said.

The first-lien term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s credit facility also includes a $40 million revolver (B2) and a $158 million second-lien term loan that has been privately placed.

Antares Capital, Credit Suisse Securities (USA) LLC, RBC Capital Markets and Barclays are leading the deal that will help fund the buyout of Vestcom by Charlesbank Capital Partners from Court Square Capital Partners.

With the first-lien term loan upsizing, the equity investment for the transaction was reduced by $10 million.

Closing is expected on Monday.

Vestcom is a Little Rock, Ark.-based provider of outsourced shelf-edge information and media solutions.

MediaOcean firms spread

MediaOcean set pricing on its $282.5 million first-lien term loan repricing at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, a market source remarked.

The term loan still has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Macquarie Capital (USA) Inc. is leading the deal that will reprice the term loan down from Libor plus 475 bps with a 1% Libor floor.

MediaOcean is a New York-based software company for the advertising sector.

Las Vegas Sands repricing

Las Vegas Sands hosted a lender call at 11:30 a.m. ET on Friday to launch a repricing of its roughly $2.19 billion term loan B, according to a market source.

The repriced loan is talked at Libor plus 225 bps with no Libor floor and a par issue price, the source said.

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

Scotiabank is the sole bookrunner and administrative agent on the deal and an arranger with Bank of America Merrill Lynch, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Fifth Third Bank and Goldman Sachs Bank USA.

The repricing will take the term loan B down from Libor plus 250 bps with a 0.75% Libor floor.

Las Vegas Sands is a Las Vegas-based developer and operator of integrated resorts.

Rexnord closes

In other news, Rexnord Corp. closed on its $1,606,000,000 covenant-light first-lien term loan (B1/BB-) due August 2023, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the term loan is Libor plus 275 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. Included in the loan is 101 soft call protection for six months.

During syndication, the spread on the term loan firmed at the low end of the Libor plus 275 bps to 300 bps talk.

Credit Suisse Securities (USA) LLC led the deal that was used to help refinance an existing $1,801,000,000 first-lien term loan due August 2020 priced at Libor plus 300 bps with a 1% Libor floor.

The borrowers are RBS Global Inc. and Rexnord LLC.

Rexnord is a Milwaukee-based industrial company comprising two strategic platforms: process & motion control and water management.

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