Charter, Indivior, Western Dental, Diplomat, MB, Hi-Crush, Navitas, Aristocrat and more break

By Sara Rosenberg

New York, Dec. 14 – Charter Communications Inc. upsized its term loan B and tightened the issue price, Indivior Finance reworked the sizes of its U.S. and euro term loans, and Western Dental Services (Premier Dental Services Inc.) lifted pricing on its term loan B, and then these deals freed up for trading on Thursday.

Also, Diplomat Pharmacy Inc. set the original issue discount on its term loan B at the tight end of revised talk, MB Aerospace Holdings II Corp. lowered pricing on its term loan, Hi-Crush Partners LP extended the call protection on its term loan B and Navitas Midstream Midland Basin LLC set the spread on its term loan at the wide end of guidance, and then these deals emerged in the secondary market too.

Other deals to begin trading during the session included Aristocrat Leisure Ltd., Compass Power Generation LLC, Nomad Foods Ltd. and Innovative XCessories & Services LLC.

In more happenings, Intelsat Jackson Holdings SA released tranche sizes on its term loan and updated pricing, CIBT raised pricing on its term loan, and Evoqua Water Technologies (EWT Holding III Corp.) finalized the spread on its term loan at the low end of talk and added a step-down.

Additionally, Tradesmen International LLC upsized its incremental first-lien term loan an adjusted the original issue discount, Sedgwick Claims Management Services Inc. accelerated the commitment deadline on its term loans, and PDC Brands (Parfums Holding Co. Inc.) approached lenders with an incremental term loan B.

Charter tweaked, tops OID

Charter Communications raised its term loan B due April 2025 to $6.35 billion from $6,328,000,000 and modified the original issue discount to 99.875 from 99.75, according to a market source.

The term loan B is still priced at Libor plus 200 basis points with no Libor floor and has 101 soft call protection for six months.

By late Thursday, the term loan B broke for trading and levels were quoted at par 1/8 bid, par 3/8 offered, another source added.

The company’s $12.35 billion of credit facilities (Ba1/BBB-) also include a $3.5 billion revolver due March 2023 and a $2.5 billion term loan A due March 2023.

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

Proceeds will be used to refinance existing bank debt.

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

Indivior retranches, frees up

Indivior Finance lifted its U.S. term loan B due December 2022 to $415 million from $394,919,400 and trimmed its euro term loan B due December 2022 to €60 million from €76,277,245, a market source remarked.

Pricing on the loans is still Libor/Euribor plus 450 bps with an original issue discount of 99.5. The U.S. loan has a 1% Libor floor and the euro loan has a 0% floor, and both loans have 101 soft call protection for six months.

Previously in syndication, pricing on the term loans was cut from talk in the range of Libor/Euribor plus 475 bps to 500 bps.

The company’s senior secured credit facilities (B3/B+) also include a $50 million revolver.

After terms firmed up, the U.S. term loan B began trading, with levels quoted at par bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance the company’s existing senior secured debt facilities.

Closing is expected on Monday.

Indivior is a Richmond, Va.-based specialty pharmaceutical company.

Western Dental revised, trades

Western Dental Services widened pricing on its $352.2 million term loan B (B3/B-) due June 30, 2023 to Libor plus 450 bps from Libor plus 425 bps, according to a market source.

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

With final terms in place, the loan made its way into the secondary market and levels were quoted at par ¼ bid, par ¾ offered, a trader added.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan down from Libor plus 525 bps with a 1% Libor floor.

The repricing effective date is Jan. 2.

Western Dental, a portfolio company of New Mountain Capital, is an Orange, Calif.-based dental services organization.

Diplomat sets OID, breaks

Diplomat Pharmacy firmed the original issue discount on its $400 million covenant-light term loan B at 99, the tight end of revised talk in the range of 98.5 to 99 but in line with initial talk of 99, according to a market source.

The term loan B is priced at Libor plus 450 bps with a 1% Libor floor and has 101 soft call protection for one year.

Previously, the term loan B was downsized from $545 million with the addition of a $150 million term loan A to the transaction, pricing was lifted from talk in the range of Libor plus 400 bps to 425 bps and the call protection was extended from six months.

The term loan B surfaced in the secondary market during the session and was seen at par ¼ bid, the source added.

J.P. Morgan Securities LLC and Capital One are leading the deal that will fund the acquisition of Leehar Distributors LLC for $515 million cash and about $80 million in Diplomat common stock and refinance bank debt.

Diplomat is a Flint, Mich.-based provider of specialty pharmacy services. Leehar is a St. Louis-based full-service pharmacy benefit manager.

MB tightens, hits secondary

MB Aerospace cut the spread on its $255 million seven-year covenant-light first-lien term loan to Libor plus 350 bps from Libor plus 400 bps, a market source said.

The term loan still has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $305 million of secured credit facilities (B2/B) also include a $50 million five-year revolver.

Recommitments were due at 1 p.m. ET on Thursday and by late day the term loan had started trading with levels quoted at par ¼ bid, par ¾ offered, a trader added.

RBC Capital Markets, Societe Generale, Barclays and Citizens Bank are leading the deal that will fund the acquisition of Taiwan-based Asian Compressor Technology Services Co. Ltd. and refinance existing debt.

Closing is expected in January.

MB Aerospace, a Blackstone portfolio company, is an East Granby, Conn.-based provider of advanced technological solutions to the aerospace and defense industry.

Hi-Crush modified, frees up

Hi-Crush Partners extended the 101 soft call protection on its $200 million seven-year senior secured term loan B (B-) to one year from six months, according to a market source.

As before, the term loan is priced at Libor plus 400 bps with a 25 bps step-down upon a B2 corporate rating, a 1% Libor floor and an original issue discount of 99.

The term loan began trading late in the session and levels were quoted at 99¼ bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance an existing term loan B due 2021.

Closing is expected next week.

Hi-Crush is a Houston-based producer, transporter, marketer and distributor of premium frac sand.

Navitas firms, trades

Navitas Midstream finalized pricing on its $350 million seven-year first-lien term loan (B3/B+) at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

The term loan then hit the secondary market, with levels quoted at par bid, par ¾ offered, another source added.

The company’s $400 million of credit facilities also include a $50 million super-priority revolver.

Jefferies LLC, Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to repay $135 million of outstanding bank debt, finance the construction of the next 200 MMcf/d state-of-the-art cryogenic natural gas processing plant (Glasscock Plant) and fund the further build-out of the system (pipeline and compression) to serve growing volumes.

Navitas is a The Woodlands, Texas-based natural gas gathering and processing company.

Aristocrat levels emerge

Aristocrat Leisure’s fungible $890 million incremental senior secured term loan B (Ba1/BB+) due October 2024 broke, with levels seen at par ¼ bid, par ½ offered, a market source said.

Pricing on the loan is Libor plus 200 bps with a 0% Libor floor and it was sold at an original issue discount of 99.875.

During syndication, the discount on the loan tightened from 99.75.

UBS Investment Bank, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will be used with $125 million of cash on hand to fund the acquisition of Big Fish Games Inc. from Churchill Downs Inc. for $990 million in cash, subject to customary completion adjustments.

Closing is expected in the first quarter of 2018, subject to regulatory and other approvals, and customary conditions.

Pro forma net leverage is expected to be 2.2 times.

Aristocrat Leisure is a Sydney, Australia-based provider of gaming solutions. Big Fish is a Seattle-based social gaming company.

Compass Power tops par

Compass Power Generation’s $750 million seven-year senior secured term loan B freed up too, with levels quoted at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $700 million, pricing was reduced from Libor plus 400 bps and the discount was revised from 99.

The company’s $810 million of senior secured credit facilities also include a $60 million revolver.

Morgan Stanley Senior Funding Inc. and MUFG are leading the deal that will be used to refinance existing debt, fund a distribution to Starwood Energy Group, fund a capital expenditure reserve and pay transaction costs. The funds from the term loan upsizing will be used to increase the dividend payment.

Closing is expected next week.

Compass Power Generation, a Starwood Energy Group portfolio company, is a 1.2 GW natural gas power portfolio.

Nomad Foods starts trading

Nomad Foods’ $50 million incremental term loan due May 15, 2024 and repriced $610 million term loan due May 15, 2024 broke as well, with the debt quoted at par bid, a market source said.

Pricing on the incremental and repriced loan is Libor plus 225 bps with a 0% Libor floor. The incremental term loan was sold at an original issue discount of 99.75 and the repricing was issued at par.

The company is also getting a €58 million incremental term loan due May 15, 2024 and a repriced €500 million term loan due May 15, 2024 at pricing of Euribor plus 275 bps with a 0% floor and a par issue price.

During syndication, the issue price on the euro incremental term loan was changed from 99.75.

All of the loans have 101 soft call protection for six months, and the incremental debt has an availability period of 60 days and a ticking fee of half the spread from days 31 to 60.

Goldman Sachs, Credit Suisse, UBS and Deutsche Bank are leading Nomad Foods’ term loans (B1/BB-), with Goldman the left lead on the U.S. debt and Credit Suisse the left lead on the euro debt.

The incremental loans will be used by the Feltham, England-based frozen foods company for general corporate purposes, including potential acquisitions, and the repricings will take the U.S. term loan down from Libor plus 275 bps with a 0% Libor floor and the euro term loan down from Euribor plus 300 bps with a 0% floor.

Innovative XCessories breaks

Innovative XCessories & Services’ fungible $235 million incremental senior secured first-lien term loan (B2/B) due Nov. 29, 2022 hit the secondary market too, with levels seen at par ½ bid, 101 offered, a market source remarked.

Pricing on the incremental loan is Libor plus 475 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and the new debt was sold at an original issue discount of 99.5. The incremental and the existing first-lien term loan are getting 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to fund an acquisition and a distribution to shareholders.

Innovative XCessories, an Olympus Partners portfolio company, is a Huntsville, Ala.-based provider of upfit services and accessories to the automotive aftermarket and original equipment manufacturers.

Intelsat terms emerge

Back in the primary market, Intelsat Jackson sized its floating-rate term loan B-4 due January 2024 at $395 million and its fixed-rate term loan B-5 due January 2024 at $700 million, a market source remarked.

Additionally, pricing on the term loan B-4 was set at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, and pricing on the term loan B-5 was trimmed to 6.625% from talk in the area of 6.75% to 7%, the source continued.

The term loan B-4 still has a 1% Libor floor, and both loans still have a par issue price and are non-callable for 2.5 years, then at half the coupon for a year, then at a quarter of the coupon for a year and then at par in the last 18 months.

J.P. Morgan Securities LLC is leading the deal that will be used to extend a $1,095,000,000 term loan B-2 due 2019.

Intelsat is a Luxembourg-based communications satellite company.

CIBT flexes

CIBT increased pricing on its $339.2 million covenant-light first-lien term loan to Libor plus 375 bps from Libor plus 350 bps, according to a market source.

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

Allocations were planned to go out on Thursday afternoon, the source said.

Antares Capital and Goldman Sachs Bank USA are leading the deal that will be used to refinance an existing first-lien term loan, and the additional $10 million in proceeds will be used to repay a portion of the company’s current revolver borrowings.

CIBT, a Kohlberg & Co. portfolio company, is a McLean, Va.-based provider of mobility solutions, offering expedited visa, work permit, immigration, passport and other related value-added services.

Evoqua tweaks deal

Evoqua Water Technologies firmed the spread on its $796 million covenant-light first-lien term loan (B2/B) due December 2024 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and added a 25 bps pricing step-down subject to B1/B+ ratings with a stable outlook, a market source said.

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

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to extend an existing term loan from January 2021 and reprice the debt from Libor plus 375 bps with a 1% Libor floor.

Lenders are offered a 25 bps amendment fee.

Evoqua is a Warrendale, Pa.-based provider of equipment and services for water treatment.

Tradesmen changes surface

Tradesmen International raised its incremental first-lien term loan due February 2024 to $105 million from $90 million and modified the original issue discount to 99.75 from 99.5, according to a market source.

The incremental loan is priced at Libor plus 450 bps with a 1% Libor floor, which matches existing first-lien term loan pricing, and all of the debt is getting 101 soft call protection for six months.

The company is also asking to amend its credit agreement to refresh the $40 million incremental free and clear at close, the source said.

Recommitments were due at 5 p.m. ET on Thursday and amendment signatures are due at noon ET on Friday, the source added.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used for acquisition financing and the funds from the upsizing will pay down second-lien term loan borrowings.

Including the incremental loan, the first-lien term loan will total $359 million.

Tradesmen is a Macedonia, Ohio-based agency-based provider of outsourced skilled craftsmen to non-residential construction and industrial contractors.

Sedgwick moves deadline

Sedgwick Claims Management Services accelerated the commitment deadline on its fungible $735 million incremental first-lien term loan B (B) due 2021 and fungible $200 million second-lien term loan (CCC+) due 2022 to end of day on Thursday from 10 a.m. ET on Friday, according to a market source.

Pricing on the first-lien term loan is Libor plus 275 bps with a 1% Libor floor and it is talked with an original issue discount of 99.51, and pricing on the second-lien term loan is Libor plus 575 bps with a 1% Libor floor and it is talked with a discount of 99.26.

The incremental first-lien term loan and the existing term loan B with which it is fungible are getting 101 soft call protection for six months.

KKR Capital Markets is leading the $935 million in term loans that will be used to fund the acquisition of Cunningham Lindsey, a Tampa, Fla.-based loss adjusting, claims management and risk solutions firm.

Closing is subject to customary conditions and regulatory approvals.

Sedgwick, which is majority owned by KKR, is a Memphis, Tenn.-based provider of technology-enabled risk and benefits solutions.

PDC comes to market

PDC Brands approached existing lenders only with a fungible $25 million incremental term loan B due June 30, 2024 talked with a par issue price, a market source remarked.

The incremental loan is priced at Libor plus 475 bps with a 1% Libor floor and has 101 soft call protection until June 30, 2018, all of which matches the existing term loan B.

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

Nomura is leading the deal that will be used with up to $20 million of revolver borrowings to fund a distribution to shareholders.

Closing is targeted for next week.

PDC is a Stamford, Conn.-based beauty and personal care products company.

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