ABC Supply, Caesars, Clarivate, Patheon, Vertafore break; USI, Conduent update deals

By Sara Rosenberg

New York, April 4 – American Builders & Contractors Supply Co. Inc. (ABC Supply) finalized pricing on its term loan B at the high end of talk and then hit the secondary market on Tuesday, and deals from Caesars Entertainment Operating Co. LLC, Clarivate Analytics (Camelot Finance LP), Patheon (Delta Dutch Newco BV) and Vertafore Inc. (VF Holding Corp.) also freed up.

Back in the primary market, USI Insurance Services upsized its term loan B and reduced pricing, and Conduent Business Services LLC firmed the spread on its term loan B at the tight end of guidance.

Furthermore, Air Methods Corp., Qlik Technologies Inc., Allied Universal Holdco LLC, U.S. TelePacific Corp., A Wireless (LSF9 Atlantis Holdings LLC), Blount International Inc. and Liberty Cablevision of Puerto Rico LLC released price talk with launch.

In addition, Checkers Drive-In Restaurants Inc., Blucora Inc. and Zest Holdings LLC joined this week’s new issue calendar.

ABC Supply firms, trades

American Builders & Contractors Supply set pricing on its $1,875,000,000 covenant-light term loan B (B1/BB+) due Oct. 31, 2023 at Libor plus 250 basis points, the wide end of the Libor plus 225 bps to 250 bps talk, and left the 0.75% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

With final terms in place, the term loan B broke for trading on Tuesday, and levels were quoted at par ¾ bid, 101 1/8 offered, a trader added.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 0.75% Libor floor.

Closing is expected on May 1.

American Builders is a Beloit, Wis.-based building products distributor.

Caesars tops OID

Caesars Entertainment’s new debt emerged in the secondary market as well, with the $1,235,000,000 seven-year covenant-light term loan B quoted at 99 7/8 bid, par 3/8 offered, a trader said.

Pricing on the term loan B is Libor plus 250 bps with a 0% Libor floor and an original issue discount of 99.5. The loan has 101 soft call protection for six months and a ticking fee of half the margin from days 31 to 90 and the full margin thereafter.

On Monday, pricing on the term loan was reduced from talk of Libor plus 275 bps to 300 bps.

The company’s $1,435,000,000 in senior secured credit facilities (Ba3/BB) also include a $200 million five-year revolver.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used for exit financing, including to repay existing debt.

Caesars, a Las Vegas-based casino-entertainment company, will have total opco debt of 2.8 times and net opco debt of 2.1 times. Total lease adjusted debt is 5.8 times and net lease adjusted debt is 5.5 times.

Clarivate hits secondary

Another deal to free up was Clarivate Analytics, with its $1,542,000,000 covenant-light first-lien term loan (B2/BB-) due October 2023 seen at par bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 350 bps with a 25 bps step-down subject to a B2 corporate rating with a stable outlook and a 1% Libor floor. The debt has 101 soft call protection for six months and was issued at par.

On Monday, pricing on the term loan was lifted from talk of Libor plus 300 bps to 325 bps, and the step-down was added.

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

Clarivate, formerly known as Thomson Reuters’ Intellectual Property & Science (IP&S) business, is a Philadelphia-based provider of comprehensive intellectual property and scientific information, decision support tools and services.

Patheon frees up

Patheon’s $1,133,000,000 covenant-light term loan (B2/B) due April 2024 also began trading, with levels quoted at par bid, par ½ offered, a trader said.

Pricing on the loan is Libor plus 325 bps with a 25 bps step-down upon a B2 rating with stable outlook and a 1% Libor floor. The debt has 101 soft call protection for six months and was sold at an original issue discount of 99.75.

On Monday, pricing on the term loan was increased from Libor plus 275 bps, and the step-down was added.

The company is also getting a €464 million covenant-light term loan (B2/B) due April 2024 priced at Euribor plus 300 bps with a 1% floor. This tranche was issued at a discount of 99.75 and has 101 soft call protection for six months as well.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing U.S. term loan priced at Libor plus 325 bps with a 1% Libor floor and an existing euro term loan priced at Euribor plus 350 bps with a 1% floor, and extend their maturities from 2021.

Patheon is a Durham, N.C.-based provider of outsourced pharmaceutical development and manufacturing services.

Vertafore breaks

Vertafore’s $60 million incremental covenant-light first-lien term loan due June 2023 broke too, with levels seen at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the incremental loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection through June.

Credit Suisse Securities (USA) LLC is leading the deal that will be used for general corporate purposes, including acquisitions.

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

USI revises loan

Returning to the primary market, USI Insurance Services raised its seven-year term loan B to $1,885,000,000 from $1,795,000,000 and trimmed pricing to Libor plus 300 bps from Libor plus 325 bps, according to a market source.

The term loan B still has a 25 bps step-down at 4.5 times net first-lien leverage, a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s now $2,085,000,000 in senior secured credit facilities also includes a $200 million revolver.

Bank of America Merrill Lynch, KKR Capital Markets, Citigroup Global Markets Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by KKR and Caisse de depot et placement du Quebec from Onex Corp. in a transaction that values the company at $4.3 billion.

Closing is expected by the end of the second quarter, subject to customary conditions, including regulatory approvals.

USI is a Valhalla, N.Y.-based insurance brokerage and consulting firm.

Conduent finalizes spread

Conduent Business Services set pricing on its $850 million senior secured term loan B due Dec. 7, 2023 at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and left the 0% Libor floor, par issue price and 101 soft call protection for six months intact, a market source said.

Citigroup Global Markets Inc. is the left lead arranger on the deal that will be used to reprice an existing term loan B down from Libor plus 550 bps with a 0.75% Libor floor.

Closing is expected on Monday.

Conduent is a Florham Park, N.J.-based provider of business process services with expertise in transaction-intensive processing, analytics and automation.

Air Methods details emerge

Air Methods held its bank meeting on Tuesday, at which time it launched a $1.07 billion seven-year term loan B at talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to market sources.

Previously, the size of the term loan B was described as up to $1.35 billion.

The company’s $1,195,000,000 in credit facilities (B+) also include a $125 million five-year revolver.

Commitments are due at noon ET on April 12, sources said.

RBC Capital Markets, Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets and Jefferies Finance LLC are leading the deal that will be used with equity to fund the buyout of the company by American Securities LLC for $43.00 per share in cash in a transaction with a total enterprise value of about $2.5 billion, including net debt.

Closing is expected by the end of the second quarter, subject to regulatory approval and the satisfaction of a minimum tender condition.

Air Methods is an Englewood, Colo.-based provider of air medical transportation and air tourism.

Qlik reveals guidance

Qlik Technologies disclosed price talk on its $75 million five-year revolver and $995 million seven-year covenant-light term loan B in connection with its morning lenders’ presentation, a market source remarked.

Talk on the revolver is Libor plus 350 bps to 375 bps with a 0% Libor floor, and talk on the term loan is Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, the source continued.

Commitments are due on April 18.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Lending Partners LLC are leading the $1.07 billion of senior secured credit facilities (B3/B) that will be used to refinance existing debt and for general corporate purposes.

Qlik is a Radnor, Pa.-based visual analytics company.

Allied Universal holds call

Allied Universal surfaced in the morning with plans to host a lender call at 5 p.m. ET to launch a $1.41 billion first-lien term loan due July 28, 2022 and a $100 million first-lien delayed-draw term loan due July 28, 2022, according to a market source.

Talk on the funded first-lien term loan is Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, and talk on the delayed-draw term loan is Libor plus 350 bps to 375 bps with a ticking fee of the full spread from days 31 to 90 and the full spread plus the greater of the floor and 30-day Libor thereafter, a 1% Libor floor and an original issue discount of 99.5, the source said.

Commitments are due at 2 p.m. ET on April 11.

Credit Suisse Securities (USA) LLC is leading the term loans (B2/B+) that will be used to reprice an existing first-lien term loan from Libor plus 450 bps with a 1% Libor floor and to fund pending tuck-in acquisitions.

Allied Universal is a Santa Ana, Calif.-based contract security services company.

U.S. TelePacific launches

U.S. TelePacific released talk of Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99 on its $655 million six-year first-lien term loan B that launched with a late-morning lender call, according to a market source.

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

The company’s $680 million in credit facilities (B3/B) also include a $25 million revolver.

Commitments are due at 5 p.m. ET on April 13.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

U.S. TelePacific is a Los Angeles-based provider of managed services and business communications solutions.

A Wireless terms surface

A Wireless held its bank meeting in the morning, launching its $510 million six-year first-lien term loan (Ba3/B) at talk of Libor plus 650 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year, a market source remarked.

The company’s $580 million senior secured credit facilities also include a $70 million ABL revolver.

Commitments are due on April 18, the source added.

UBS Investment Bank, Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc. and Jefferies Finance LLC are leading the deal that will be used to refinance existing debt.

A Wireless is an exclusive national authorized retailer for Verizon Wireless with corporate offices in Greenville, N.C., and Eden Prairie, Minn.

Blount discloses talk

Blount International came out with talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $471.4 million term loan B due April 12, 2023 that launched with a morning call, a market source said.

Commitments are due at noon ET on April 11, the source added.

Barclays is leading the deal that will be used to reprice an existing term loan B down from Libor plus 625 bps with a 1% Libor floor.

Leverage is 3.6 times.

Blount is a Portland, Ore.-based manufacturer and marketer of outdoor power equipment.

Liberty seeks add-on

Liberty Cablevision of Puerto Rico held a lender call at 2 p.m. ET to launch an $85 million add-on first-lien term loan B (B) due Jan. 7, 2022 that is talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

Commitments are due at noon ET on Thursday, the source said.

Morgan Stanley Senior Funding Inc. and The Bank of Nova Scotia are leading the deal that will be used to refinance an equivalent amount of existing second-lien term loan borrowings.

Liberty Cablevision of Puerto Rico is a cable TV service provider in Puerto Rico.

Checkers on deck

Also on the new deal front, Checkers Drive-In Restaurants scheduled a bank meeting for Thursday to launch $305 million in credit facilities, a market source remarked.

The facilities include a $25 million revolver, a $192.5 million seven-year first-lien term loan and an $87.5 million eight-year second-lien term loan, the source said.

Jefferies Finance LLC, Antares Capital, KeyBanc Capital Markets and Citizens are leading the deal that will be used to help fund the buyout of the company by Oak Hill Capital Partners from Sentinel Capital Partners in a transaction valued at about $525 million.

Closing is expected in the second quarter, subject to HSR approval and other customary conditions.

Checkers is a Tampa, Fla.-based operator and franchisor of drive-thru hamburger quick-service restaurants.

Blucora joins calendar

Blucora will hold a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch $425 million in credit facilities, according to a market source.

The facilities consist of a $50 million revolver, and a $375 million seven-year covenant-light first-lien term loan that includes a 1% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on April 19.

Credit Suisse Securities (USA) LLC, KeyBanC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal, which will be used to refinance an existing first-lien term loan and a convertible note.

Blucora is a Bellevue, Wash.-based technology-enabled financial solutions provider focused on tax preparation and financial advisory services.

Zest readies loan

Zest Holdings set a lender call for 11 a.m. ET on Wednesday to launch a $268 million term loan B due August 2023 that includes 101 soft call protection for six months, a market source remarked.

Deutsche Bank Securities Inc., Citizens Bank and Fifth Third are leading the deal, which will be used to merge an existing $218 million term loan B due August 2020 with a $50 million incremental term loan B into one fungible tranche.

Commitments from existing lenders are due at 5 p.m. ET on April 11 and from new lenders are due at noon ET on April 12, the source added.

Zest is a Carlsbad, Calif.-based developer, manufacturer and supplier of solutions to treat both natural teeth and implant supported restorations.

Telenet wraps

In other news, Telenet announced in a press release the successful completion of syndication of its $1.8 billion term loan AI due June 2025 and €1.33 billion term loan AH due March 2026.

Pricing on the term loan AI is Libor plus 275 bps, and pricing on the term loan AH is Euribor plus 300 bps, with both loans having a 0% floor, an original issue discount of 99.75 and 101 soft call protection for six months.

During syndication, the term loan AI was upsized from $1 billion and pricing firmed at the high end of the Libor plus 250 bps to 275 bps talk, and the term loan AH was upsized from €750 million and the spread finalized at the wide end of the Euribor plus 275 bps to 300 bps talk.

BNP Paribas and J.P. Morgan acted as mandated lead arrangers and global coordinators with Scotiabank, Deutsche Bank, Rabobank, RBC Capital Markets, Natwest Markets and Societe Generale acting as mandated lead arrangers and joint bookrunners.

Telenet, a Mechelen, Belgium-based cable operator, will use the new loans to refinance a €1.6 billion term loan AE due January 2025 that is priced at Euribor plus 325 bps with a 0% floor and a $1.5 billion term loan AF due January 2025 that is priced at Libor plus 300 bps with a 0% Libor floor.

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