Edgewood Partners releases guidance; Virtu Financial, Duravant ready loan transactions

By Sara Rosenberg

New York, Jan. 8 – In the primary market, Edgewood Partners Holdings LLC (EPIC) came out with price talk on its incremental funded and delayed-draw first-lien term loan debt in connection with its lender call on Tuesday.

Also, Virtu Financial LLC disclosed a bank meeting date for its first-lien term loan, and Duravant LLC (Engineered Machinery Holdings Inc.) emerged with new loan plans.

Edgewood reveals talk

Edgewood Partners held its lender call during the session and announced original issue discount guidance of 99 on its fungible $295 million incremental first-lien term loan and $50 million first-lien delayed-draw term loan, according to a market source.

The new first-lien term loan debt is priced at Libor plus 425 basis points with a 1% Libor floor, which matches existing first-lien term loan pricing, and the new debt and existing $514 million first-lien term loan will get 101 soft call protection for six months, the source said.

The delayed-draw term loan will be available for 24 months with a 1% undrawn fee.

Commitments are due at 5 p.m. ET on Jan. 22, the source added.

Antares Capital and Golub Capital are leading the first-lien deal that will be used with a $325 million privately placed second-lien term loan and a $50 million delayed-draw second-lien term loan to finance an acquisition, repay revolver borrowings, refinance an existing $195 million second-lien term loan and pay acquisition-related fees and expenses.

Edgewood Partners, a portfolio company of Oak Hill Capital Partners, is a San Francisco-based insurance, risk management and employee benefits brokerage and consulting firm.

Virtu timing surfaces

Virtu Financial scheduled a bank meeting for 10:30 a.m. ET on Friday to launch its previously announced $1.5 billion seven-year first-lien term loan, a market source remarked.

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

Along with the term loan, the company will launch a $50 million three-year revolver.

Jefferies LLC and RBC Capital Markets are leading the $1.55 billion of senior secured credit facilities that will be used with cash on hand to fund the acquisition of Investment Technology Group Inc. for $30.30 per share, or about $1 billion, to refinance existing first-lien debt at both companies and to fund fees and expenses associated with the transaction.

Total leverage will be 2.76 times based on trailing 12 months adjusted EBITDA as of Sept. 30.

Closing is expected in the first half of this year, subject to Investment Technology shareholder approval and regulatory approvals.

Virtu is a New York-based technology-enabled market maker and liquidity provider to the financial markets. Investment Technology is a New York-based financial technology company.

Duravant on deck

Duravant set a lender call for 10 a.m. ET on Wednesday to launch a non-fungible $160 million incremental first-lien term loan due July 2024 that includes 101 soft call protection for six months, according to a market source.

Jefferies LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Antares Capital and Societe Generale are leading the deal that will be used with an equity contribution from the sponsor to fund the acquisition of Wulftec International.

Duravant is a Downers Grove, Ill.-based automation solutions platform providing highly engineered equipment and related aftermarket parts and services.

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