Go Daddy, Electrical Components break; Chief Exploration, Eddie Bauer, Sterling revised

By Sara Rosenberg

New York, May 5 - Go Daddy Operating Co. LLC's credit facility emerged in the secondary market on Monday with the term loan quoted above its original issue discount price, and Electrical Components International Inc. began trading as well.

Over in the primary, Chief Exploration & Development increased the size of its second-lien term loan and tightened the original issue discount, Eddie Bauer Inc. downsized its term loan B while sweetening the spread, offer price and call premium, and Sterling Infosystems Inc. reduced the size of its term loan, lifted pricing, updated original issue discount talk and extended the call protection.

In addition, Texas Competitive Electric Holdings Co. LLC released talk on its debtor-in-possession term loans with launch, SunEdison Semiconductor Ltd. disclosed the new bank meeting date for its credit facility, and Authentic Brands Group and Wyle joined this week's calendar.

Go Daddy frees up

Go Daddy's credit facility began trading on Monday, with the $1.1 billion seven-year covenant-light term loan B quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the loan is Libor plus 375 basis points with a step-down to 50 bps upon a qualified initial public offering and 3.25 times net total leverage. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was sold at an original issue discount of 991/2.

Last week, pricing on the loan firmed at the wide end of the Libor plus 350 bps to 375 bps talk, the step-down was changed from 25 bps upon a qualified IPO and 25 bps at 3.5 times net first-lien leverage, the call protection was extended from six months and the MFN sunset was removed.

The company's $1.25 billion credit facility (Ba3/B) also includes a $150 million five-year revolver.

Go Daddy lead banks

Deutsche Bank Securities Inc., Barclays, RBC Capital Markets, KKR Capital Markets, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading Go Daddy's credit facility, with Deutsche the left lead and Barclays the administrative agent.

Proceeds will be used to refinance an existing revolver and term loan and to fund a one-time dividend.

The term loan that is being taken out is priced at Libor plus 300 bps with a step-down to Libor plus 275 bps, when the Standard & Poor's rating is B+ and the recovery rating is 2, and a 1% Libor floor.

Go Daddy is a Scottsdale, Ariz.-based provider of web hosting and domain names.

Electrical Components tops OID

Electrical Components' credit facility broke too, with the $260 million seven-year term loan B seen at par bid, par ½ offered, a trader remarked.

Pricing on the term loan is Libor plus 475 bps with a step-down to Libor plus 450 bps when total net leverage is 3.5 times. There is a 1% Libor floor and 101 soft call protection for one year, and the debt was sold at a discount of 991/2.

Recently, pricing on the term loan firmed at the wide end of the Libor plus 450 bps to 475 bps talk, the step-down was added and the discount was changed from 99.

The company's $310 million credit facility (B1/B+) also includes a $50 million five-year revolver.

Bank of America Merrill Lynch, GE Capital Markets Inc. and Fifth Third Bank are leading the deal that will help fund the buyout of Electrical Components, a St. Louis-based manufacturer of wire harnesses and value-added assembly services for consumer appliance and specialty-industrial applications, by KPS Capital Partners LP.

Closing is expected in the second quarter, subject to customary conditions.

Chief Exploration tweaks deal

Moving to the primary, Chief Exploration & Development lifted its second-lien term loan to $400 million from $350 million and moved the original issue discount to 99 from 981/2, according to a market source.

As before, the loan is priced at Libor plus 650 bps with a 1% Libor floor and is non-callable for six months, then at 102 for a year and 101 for a year.

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

J.P. Morgan Securities LLC, UBS Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt.

Eddie Bauer reworked

Eddie Bauer trimmed its six-year term loan B (B3/B-) to $225 million from $250 million, raised pricing to Libor plus 525 bps from talk of Libor plus 425 bps to 450 bps, changed the discount to 98½ from 99 and pushed out the 101 soft call protection to one year from six months, a market source said.

Recommitments were due at 5p.m. ET on Monday.

Goldman Sachs Bank USA, Guggenheim and MCS Capital are leading the deal that will be used to refinance existing debt and fund a dividend.

Eddie Bauer is a Bellevue, Wash.-based manufacturer of clothing, accessories and gear for men and women.

Sterling reveals changes

Sterling Infosystems reduced its seven-year covenant-light term loan to $250 million from $290 million, lifted pricing to Libor plus 475 bps from Libor plus 400 bps, modified original issue discount talk to 99 to 99½ from just 991/2, extended the 101 soft call protection to one year from six months and removed the MFN sunset, according to a market source.

As before, the term loan has a 1% Libor floor.

The company's now $275 million credit facility (B2/B) also includes a $25 million six-year revolver.

GE Capital Markets, Deutsche Bank Securities Inc. and RBS Citizens are leading the deal that will be used to repay existing debt and fund a dividend, the size of which was reduced by $40 million due to the term loan downsizing, the source remarked.

Sterling Infosystems is a New York-based provider of comprehensive employment and background screening services.

Texas Competitive sets talk

Texas Competitive Electric Holdings held its meeting on Monday, launching its $1,425,000,000 covenant-light term loan and $1.1 billion delayed-draw covenant-light term loan with talk of Libor plus 300 bps with a 1% Libor floor and a discount of 991/2, according to a market source, who said the debt is being sold as a strip.

The delayed-draw term loan has a ticking fee of half the spread from days 61 through 90 after close, the source said. If the delayed-draw term loan is terminated during the 90 day availability window, the original issue discount on the debt will be paid to lenders.

Commitments for the Dallas-based energy company's $4,475,000,000 24-month DIP facility, which also includes a $1.95 billion revolver, are due at noon ET on Friday, the source continued.

Citigroup Global Markets Inc. is leading the deal that will be used for liquidity, adequate protection payments, restructuring costs and general corporate purposes, and the delayed-draw term loan will provide cash to backstop letters-of-credit posted to the Railroad Commission of Texas.

SunEdison timing emerges

SunEdison Semiconductor will hold a bank meeting on Wednesday to launch its $250 million credit facility that was initially expected to launch on April 28, according to a market source.

The facility consists of a $50 million revolver and a $200 million term loan B.

Goldman Sachs Bank USA is leading the deal that will be used to repay intercompany notes in connection with the company's spinoff from SunEdison Inc. and initial public offering of ordinary shares.

SunEdison Semiconductor is a Toa Payoh, Singapore-based developer, manufacturer and seller of silicon wafers to the semiconductor industry.

Authentic Brands on deck

Authentic Brands Group scheduled a bank meeting for Thursday to launch $465 million of new term loans, according to a market source.

The debt consists of a $335 million seven-year first-lien term loan and a $130 million eight-year second-lien term loan, the source said.

Bank of America Merrill Lynch, KeyBanc Capital Markets, Barclays and Canaccord are leading the deal that will be used to refinance existing debt, redeem preferred stock, fund a dividend and purchase a minority interest in the Marilyn Monroe brand.

Authentic Brands is a New York-based brand development and licensing company.

Wyle coming soon

Wyle surfaced with plans to hold a bank meeting on Wednesday to launch a $250 million seven-year term loan, according to a market source.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Wyle is an El Segundo, Calif.-based provider of high-tech aerospace engineering, information technology and scientific services to the federal government.

KCA Deutag well met

In other news, KCA Deutag's $375 million six-year secured term loan (B3/B) is already subscribed with lenders still having until the May 12 commitment deadline to place their orders, a market source said.

The loan is talked at Libor plus 525 bps to 550 bps with a 1% Libor floor and an original issue discount of 98½ to 99, and has call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Lloyds Securities LLC are leading the deal that will be used by the Scotland-based drilling contractor to refinance existing bank debt and add a small amount of cash to the balance sheet.

Other funds for the transaction will come from $375 million of secured notes for which a roadshow started on Monday and pricing is expected around May 13.

Initially, investors were told that the total amount of term loan debt and notes would be $750 million, and the split was unavailable. However, on Friday, when timing on the notes emerged, so did the breakdown on sizes.

USI closes

USI Insurance Services completed its acquisition of 40 insurance brokerage and consulting locations from Wells Fargo Insurance, a news release said.

For the transaction, USI got a new fungible $125 million add-on term loan priced at Libor plus 325 bps with a 1% Libor floor, in line with the existing term loan, and sold at discount of 99. There is 101 soft call protection for six months.

During syndication, the offer price on the term loan firmed at the tight end of the 98¾ to 99 talk.

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

USI is a Valhalla, N.Y.-based insurance broker.

Learning Care wraps

The buyout of Learning Care Group by American Securities from Morgan Stanley Global Private Equity has closed, according to a news release.

To help fund the transaction, Learning Care got a new $370 million credit facility (B2/B) consisting of a $50 million revolver and a $320 million covenant-light term loan.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the spread on the term loan finalized at the high end of the Libor plus 425 bps to 450 bps talk and the call protection was extended from six months.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and BMO Capital Markets led the deal.

Learning Care Group is a Novi, Mich.-based provider of early education and childcare services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.