Smart Start, Conservice deal changes surface; LogMeIn accelerates commitment deadline

By Sara Rosenberg

New York, Aug. 12 – In the primary market on Wednesday, Smart Start Inc. lowered the spread on its term loan B and revised the original issue discount, Conservice Midco LLC increased the size of its incremental first-lien term loan and tightened the issue price, and LogMeIn Inc. moved up the commitment deadline for its first-lien term loan B.

Also, UPC/Sunrise launched U.S. and euro term loans to investors, AmeriLife Holdings LLC released original issue discount talk on its incremental term loan, and PetVet Care Centers LLC came to market with an incremental term loan B-3.

Smart Start flexes

Smart Start trimmed pricing on its $350 million term loan B (B2/B) to Libor plus 500 bps from talk in the range of Libor plus 525 bps to 550 bps and changed the original issue discount to 98.5 from talk in the range of 97 to 98, according to a market source.

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

Commitments were due at the end of the day on Wednesday, moved up from Thursday, the source continued.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing first- and second-lien term loans.

Smart Start is a Grapevine, Tex.-based provider of ignition interlocks and portable devices for alcohol monitoring.

Conservice updated

Conservice raised its fungible incremental covenant-lite first-lien term loan due May 2027 to $75 million from $50 million and modified the original issue discount to 98 from talk in the range of 97 to 97.5, a market source said.

The incremental term loan is priced at Libor plus 425 bps with a 0% Libor floor and has 101 soft call protection through May 2021, same as the existing first-lien term loan.

Commitments continued to be due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC and Golub are leading the deal that will be used to fund tuck-in acquisitions and for general corporate purposes.

Conservice is a Logan, Utah-based provider of utility management and billing software solutions to property owners and managers.

LogMeIn changes deadline

LogMeIn accelerated the commitment deadline for its $1.95 billion seven-year first-lien term loan B (B1/B-/BB-) to 5 p.m. ET on Thursday from noon ET on Friday, a market source remarked.

Talk on the term loan B is Libor plus 475 bps to 500 bps with a 0% Libor floor, an original issue discount of 97 and 101 soft call protection for six months.

Barclays, RBC Capital Markets, Deutsche Bank Securities Inc., Jefferies LLC and Mizuho Bank Ltd. are leading the deal.

Proceeds will be used with a $500 million pre-placed second-lien term loan (Caa1), $750 million of senior secured notes and equity to fund the buyout of the company by Francisco Partners and Elliott Management Corp. for $86.05 per share in cash. The aggregate equity valuation is about $4.3 billion.

Closing is expected in the third quarter.

LogMeIn is a Boston-based provider of cloud-based connectivity.

UPC/Sunrise holds call

UPC/Sunrise hosted a lender call at 11 a.m. ET on Wednesday to launch a $1.2 billion covenant-lite term loan B-1 due January 2029 and a €500 million covenant-lite term loan B-1 due January 2029 at NewCo, and a $1.2 billion covenant-lite term loan B-2 due January 2029 and a €500 million covenant-lite term loan B-2 due January 2029 at UPC, according to a market source.

Talk on the term loan B-1 and B-2 debt is Libor/Euribor plus 350 bps with a 0% floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months, the source said.

The term loans are to be allocated and trade as strips for each respective currency.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and J.P. Morgan Securities LLC are the global coordinators and joint bookrunners on the deal, with Deutsche the left lead on the U.S debt. Other joint bookrunners include BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse, Goldman Sachs and Bank of Nova Scotia.

UPC/Sunrise timing

Commitments for UPC/Sunrise’s U.S. loans are due at 5 p.m. ET on Aug. 19 and commitments for the euro loans are due at 7 a.m. ET on Aug. 20, the source added.

The new debt will be used with about CHF 3.5 billion of existing cash at UPC’s parent company, Liberty Global, to fund the acquisition of Sunrise Communications Group AG for CHF 110 per share, representing a total enterprise value of CHF 6.8 billion, and to refinance existing debt.

Sunrise will be a part of the UPC credit pool and targeted leverage for this pool will be 5x, pro forma for this transaction, including vendor financing and leases.

Closing will occur following receipt of requisite regulatory approvals, which the parties expect to receive around year end, and satisfaction of other customary conditions.

UPC/Sunrise is an integrated video, broadband internet, fixed-line telephony and mobile services.

AmeriLife sets OID talk

AmeriLife held its call in the morning and, shortly before the call began, original issue discount talk on its fungible $80 million incremental covenant-lite first-lien term loan due March 18, 2027 was announced at 98, a market source remarked.

Like the existing term loan, the incremental term loan is priced at Libor plus 400 bps with a 0% Libor floor and has 101 soft call protection through Sept. 18.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund tuck-in acquisitions and for general corporate purposes.

AmeriLife is a Clearwater, Fla.-based insurance marketing organization.

PetVet shops incremental

PetVet emerged in the morning with plans to hold a lender call at 3 p.m. ET to launch a fungible $200 million incremental first-lien term loan B-3 due February 2025 talked with an original issue discount of 99, according to a market source.

The incremental term loan is priced at Libor plus 425 bps with a 1% Libor floor, in line with the existing term loan B-3, and has 101 soft call protection for six months, the source said.

Commitments are due at 1 p.m. ET on Monday.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to fund an acquisition.

Pro forma for the transaction, the term loan B-3 will total about $324 million. When obtained, the existing term loan B-3 debt had been directly placed.

PetVet is a Westport, Conn.-based acquirer and operator of general practice and specialty veterinary hospitals for companion animals.

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