Servpro, Direct ChassisLink, Trade Me Group, Hexion International, Insight Global break

By Sara Rosenberg

New York, April 12 – Servpro LLC trimmed the spread on its first-lien term loan, removed the leverage-based step-down and tightened the original issue discount, and then the debt made its way into the secondary market on Friday.

Other deals that broke for trading during the session included Direct ChassisLink Inc. (Drive Chassis Holdco LLC), Trade Me Group Ltd. (Titan Acquisitionco New Zealand), Hexion International Holdings BV and Insight Global (IG Investments Holdings LLC).

In more happenings, PlayPower Inc. disclosed price talk on its first-lien term loan in connection with its bank meeting.

Servpro flexes, trades

Servpro lowered pricing on its $315 million seven-year first-lien term loan (B2/B+) to Libor plus 350 basis points from talk in the range of Libor plus 375 bps to 400 bps, removed the 25 bps step-down based on leverage, while leaving in place the 25 bps step-down based upon an initial public offering, and adjusted the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due by noon ET on Friday and the first-lien term loan broke for trading later in the session, with levels quoted at par bid, par ˝ offered, another source said.

The company’s $485 million of credit facilities also include a $45 million five-year revolver (B2/B+) and a $125 million privately placed eight-year second-lien term loan.

Jefferies LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will help fund the purchase of a majority stake in the company by Blackstone. Servpro’s founders, the Isaacson family, will be reinvesting alongside Blackstone and will continue to be significant shareholders in the company.

Servpro is a Gallatin, Tenn.-based franchisor of residential and commercial property damage restoration services.

Direct ChassisLink frees up

Direct ChassisLink’s $825 million seven-year covenant-lite second-lien term loan (Caa1/B+) began trading, with levels quoted at 95 bid, 97 offered, according to a market source.

Pricing on the term loan is Libor plus 825 bps with a 0% Libor floor, and it was sold at an original issue discount of 95. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

During syndication, the term loan was downsized from $850 million, pricing was lifted from talk in the range of Libor plus 725 bps to 750 bps, the discount widened from revised talk in the range of 96 to 97 and initial talk of 99, the hard call protection was modified from 102 in year one and 101 in year two, and a bunch of documentation changes were made.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and MUFG are leading the loan that will be used to help fund the buyout of the company by Apollo Global Management LLC from EQT Infrastructure, who will retain a 20% minority stake.

Direct ChassisLink is a Charlotte, N.C.-based provider of domestic and marine chassis to the intermodal supply chain.

Trade Me hits secondary

Trade Me Group’s $605 million seven-year covenant-lite first-lien term loan (B1/B) broke too, with levels seen at par bid, par ˝ offered, a market source said.

Pricing on the first-lien term loan is Libor plus 425 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

On Thursday, the first-lien term loan was upsized from $575 million, pricing was reduced from talk in the range of Libor plus 450 bps to 475 bps and the discount was revised from 99.

Credit Suisse Securities (USA), Nomura, UBS Investment Bank, Macquarie Capital (USA) Inc. and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Apax Partners for NZ$6.45 per share.

The company is also getting a NZ$276 million privately placed second-lien loan, which was recently downsized from NZ$320 million.

Closing is expected this quarter, subject to shareholder and court approval.

Trade Me is an operator of online classified marketplaces for motor vehicles, property and jobs in New Zealand.

Hexion starts trading

Hexion’s $350 million 18-month debtor-in-possession term loan (Ba2/BB+) freed up as well, with levels quoted at par bid, par ˝ offered, according to a market source.

Pricing on the DIP term loan is Libor plus 275 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

On Thursday, the spread on the term loan firmed at the low end of the Libor plus 275 bps to 300 bps talk and the discount was modified from 99.5.

Credit Suisse Securities (USA) and J.P. Morgan Securities are leading the loan, which will be used to repay outstanding ABL borrowings and for general corporate purposes.

Hexion is a Columbus, Ohio-based producer of thermoset resins and related technologies and specialty products.

Insight Global breaks

Insight Global’s fungible $30 million incremental first-lien term loan (B2/B-) due May 2025 also emerged in the secondary market, with levels quoted at 99˝ bid, par offered, a market source remarked.

Pricing on the incremental loan is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99.5.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a distribution to shareholders.

In connection with this transaction, pricing on the company’s existing first-lien term loan is increasing to Libor plus 400 bps with a 1% Libor floor from Libor plus 350 bps with a 1% Libor floor to match pricing on the incremental term loan.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

PlayPower sets guidance

Back in the primary market, PlayPower held its bank meeting on Friday and released talk on its $340 million seven-year covenant-lite first-lien term loan (B2/B) at Libor plus 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on April 26, the source said.

The company’s $485 million of credit facilities also include a $45 million revolver (B2/B) and a $100 million privately placed 7.5-year second-lien term loan (Caa2/CCC+).

SG Americas Securities LLC is leading the deal that will be used to fund a dividend and refinance existing debt.

PlayPower is a Huntersville, N.C.-based manufacturer of commercial playground equipment, shade structures and floating dock systems.

Transact well met

In other news, Transact’s (RCP Vega Inc.) $260 million seven-year covenant-lite first-lien term loan was well oversubscribed by Friday’s 10:30 a.m. ET commitment deadline, a market source remarked.

Talk on the term loan is Libor plus 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc. and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Reverence Capital Partners LP from Blackboard Inc.

Closing is expected this quarter.

Transact is a Phoenix-based integrated payment and software solutions platform that facilitates mission-critical higher education student transactions.

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