Sabre, Constellis, Polyconcept break; Staples, United Site, ATI, Sparta, TMS revise deals

By Sara Rosenberg

New York, Aug. 9 – Sabre Inc. firmed pricing on its term loan B at the tight side of guidance and set the issue price at the midpoint of talk before freeing up for trading on Wednesday, and Constellis Holdings LLC and Polyconcept hit the secondary market too.

Also, Staples Inc. upsized its first-lien term loan, United Site Services tightened issue prices on its first- and second-lien term loans, and ATI Holdings Acquisition Inc. increased the size of its term loan B and finalized the spread at the low end of talk.

Furthermore, Sparta Systems Inc. lowered pricing on its first-lien term loan, added a step-down and tightened the original issue discount. TMS International Corp. cut the spread on its term loan and set the issue price in the middle of guidance, and Sensis (Project Sunshine IV Pty Ltd.) accelerated the commitment deadline on its term loan.

In addition, Cincinnati Bell Inc., Eastern Power LLC, RentPath Inc., Affinity Gaming, RadNet Management Inc., Epicor Software Corp., Grosvenor Capital Management and A Wireless released price talk with launch, and Prestige Brands Inc., On Assignment Inc. and IPS Intermediate Holding Corp. joined this week’s primary calendar.

Sabre updated, trades

Sabre finalized pricing on its $1,891,000,000 term loan B at Libor plus 225 basis points, the low end of the Libor plus 225 bps to 250 bps talk, and firmed the original issue discount at 99.875, the midpoint of the 99.75 to par talk, according to a market source.

The loan still has a 0% Libor floor and 101 soft call protection for six months.

By late day, the term loan B emerged in the secondary market and levels were quoted at par ¼ bid, par 5/8 offered, a trader added.

Bank of America Merrill Lynch is the left lead on the deal that will be used to refinance an existing term loan B that is priced at Libor plus 275 bps with a 0% Libor floor and a step-down to Libor plus 250 bps when leverage is 2.5 times.

Sabre is a Southlake, Texas-based online travel company.

Constellis frees up

Constellis’ $120 million incremental first-lien term loan due April 2024 began trading too, with levels quoted at 99¼ bid, par offered, a trader said.

Pricing on the incremental term loan is Libor plus 500 bps with a 1% Libor floor, and it has 101 soft call protection through April 2018, like the existing term loan. The incremental loan was sold at an original issue discount of 99.

On Tuesday, the incremental term loan was upsized from $95 million.

Credit Suisse Securities (USA) LLC, Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of Omniplex World Services Corp. from Altamont Capital Partners and, due to the upsizing, for general corporate purposes.

Closing is expected this month, subject to Defense Security Service review and other customary conditions.

Constellis is a Reston, Va.-based provider of operational support and risk management services to government and commercial clients. Omniplex is a Chantilly, Va.-based provider of protective and investigative services.

Polyconcept hits secondary

Polyconcept’s fungible $30 million add-on term loan B (B1/B) due August 2023 and repriced $432 million term loan B (B1/B) due August 2023 also broke, with levels seen at par ¼ bid, 101 offered, a trader remarked.

Pricing on the term debt is Libor plus 475 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Goldman Sachs Bank USA, RBC Capital Markets and Natixis are leading the deal.

Proceeds from the add-on term loan will be used to fund cash to the balance sheet to support potential future tuck-in acquisitions and to pay transaction-related fees and expenses, and the repricing will take the existing term loan down from Libor plus 525 bps with a 1% Libor floor.

Closing is expected on Aug. 17.

Polyconcept is a supplier of decorated promotional products.

OB Hospitalist holds steady

Also in the secondary market, OB Hospitalist’s $210 million seven-year covenant-light term loan was quoted at par bid, par ½ offered, in line with where it broke for trading on Tuesday, according to a market source.

Pricing on the term loan is Libor plus 425 bps with a step-down to Libor plus 400 bps at less than 3.75 times net leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, the term loan was upsized from $200 million, pricing firmed at the low end of the Libor plus 425 bps to 450 bps talk and the discount was tightened from 99.

The company’s $230 million of credit facilities also include a $20 million five-year revolver.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by Gryphon Investors from Ares Management LP.

OB Hospitalist is a Mauldin, S.C.-based provider of OB/GYN hospitalist services.

Staples reworks size

Back in the primary market, Staples raised its seven-year first-lien term loan to $2.7 billion from $2.4 billion and accelerated the commitment deadline to noon ET on Friday from Monday, a source said.

Talk on the loan is unchanged at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

With the term loan upsizing, the Framingham, Mass.-based retailer of office supplies reduced its unsecured bridge loan to $1.3 billion from $1.6 billion, the source said.

UBS Investment Bank, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, Jefferies LLC, Fifth Third Bank, Goldman Sachs Bank USA, Citigroup Global Markets Inc., KKR Capital Markets and Natixis are leading the deal that will be used to help fund the buyout of the company by Sycamore Partners for $10.25 in cash per share of common stock. The transaction is valued at about $6.9 billion.

The company is also getting a $1.2 billion ABL facility for which Wells Fargo is the left lead.

The debt financing is for the North American delivery business, which will have pro forma leverage of around 4 times.

Closing is expected no later than December, subject to regulatory and stockholder approval.

United Site revised

United Site Services changed the issue price on its $487 million seven-year covenant-light first-lien term loan to par from 99.5 and the issue price on its $293 million eight-year covenant-light second-lien term loan to par from revised talk of 99 and initial talk of 98.5, according to a market source.

As before, the first-lien term loan is priced at Libor plus 375 bps with a 25 bps step-down when corporate ratings are B2/B and a 1% Libor floor and has 101 soft call protection for six months, and the second-lien term loan is priced at Libor plus 775 bps with a 25 bps step-down when corporate ratings are B2/B and a 1% Libor floor and has hard call protection of 102 in year one and 101 in year two.

On Tuesday, the first-lien term loan was upsized from $475 million and pricing was cut from Libor plus 450 bps, the second-lien term loan was lifted from $280 million and pricing was lowered from Libor plus 850 bps, and the step-down was added to both loans.

United site getting revolver

Along with the term loans, United Site Services’ $865 million of credit facilities include an $85 million ABL revolver.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Jefferies LLC and Deutsche Bank Securities Inc. are leading the deal that will be used with equity to fund the buyout of the company by Platinum Equity from Calera Capital, to refinance existing debt, and, due to the recent term loan upsizings, to add cash to the balance sheet.

United Site Services is a Westborough, Mass.-based provider of portable restrooms, temporary fence and related site services.

ATI tweaks deal

ATI Holdings lifted its term loan B due May 10, 2023 to $768 million from $758 million and firmed pricing at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, according to a market source.

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

Recommitments were due at noon ET on Wednesday, the source added.

Barclays, Jefferies LLC and HSBC Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor, and, due to the upsizing, for general corporate purposes.

ATI, an Advent International portfolio company, is a Bolingbrook, Ill.-based outpatient physical therapy provider.

Sparta changes surface

Sparta Systems cut pricing on its $240 million seven-year first-lien term loan (B2/B-) to Libor plus 400 bps from Libor plus 425 bps, added a step-down to Libor plus 375 bps at 0.5 times inside of closing first-lien leverage and revised the original issue discount to 99.75 from 99, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $340 million of senior secured credit facilities also include a $25 million revolver (B2/B-) and a $75 million privately placed eight-year second-lien term loan (CCC).

Commitments were due at 5 p.m. ET on Wednesday, the source added.

Jefferies LLC, Ares and BMO Capital Markets are leading the deal that will be used to help fund the buyout of Sparta Systems by New Mountain Capital LLC from Thoma Bravo LLC, which will retain a minority stake in the company.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Sparta Systems is a Hamilton N.J.-based provider of quality management system software to the pharmaceutical, medical device and CPG industries.

TMS cuts pricing

TMS International trimmed pricing on its $465 million seven-year first-lien term loan (B1/BB-) due August 2024 to Libor plus 300 bps from Libor plus 325 bps and set the original issue discount at 99.625, the midpoint of the 99.5 to 99.75 talk, a market source remarked.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

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

TMS is a Glassport, Pa.-based provider of mill services for steelmakers.

Sensis moves deadline

Sensis accelerated the commitment deadline on its $225 million term loan B (B) to noon ET on Thursday from noon ET on Friday, according to a market source.

Talk on the term loan is Libor plus 700 bps with a 1% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months.

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

Proceeds will be used to refinance existing debt and fund a distribution to shareholders.

Sensis is a provider of local search and digital marketing solutions to Australian businesses.

Cincinnati Bell floats terms

Also on the new deal front, Cincinnati Bell had its lenders’ presentation on Wednesday and disclosed price talk on its $780 million of senior secured credit facilities (Ba3/BB-), a market source said.

Talk on the $180 million five-year revolver is Libor plus 325 bps to 350 bps with a 0% Libor floor, and talk on the $600 million seven-year covenant-light term loan B is Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months

Commitments are due on Aug. 17, the source added.

Morgan Stanley Senior Funding Inc., PNC Bank, Regions Bank, Barclays, Citigroup Global Markets Inc. and Citizens Bank are leading the deal that will be used to help fund the acquisitions of Hawaiian Telcom Inc. for about $650 million in cash and stock and OnX Enterprise Solutions for around $201 million in cash, and to refinance debt at Cincinnati Bell and Hawaiian Telcom.

The Hawaiian Telcom transaction is expected to close in the second half of 2018, and the OnX transaction will close in the beginning of the fourth quarter 2017, both subject to regulatory approvals.

Cincinnati Bell is a Cincinnati-based provider of integrated communications solutions. Hawaiian Telcom is a Honolulu-based provider of integrated communications, broadband, data center and entertainment solutions. OnX is a Toronto-based technology service and solution provider.

Eastern Power guidance

Eastern Power held its lender call, launching its $1,636,716,543 senior secured term loan B (B1/BB-) due Oct. 2, 2023 at talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments/consents are due at noon ET on Aug. 16, the source added.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 1% Libor floor.

Eastern Power is an owner of gas-fired electric generating stations.

RentPath discloses talk

RentPath came out with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on the repricing of its $492 million first-lien term loan (B2/B+) that launched with a morning call, according to a market source.

Commitments are due at noon ET on Aug. 16, the source said.

RBC Capital Markets is leading the deal that will reprice the existing term loan down from Libor plus 525 bps with a 1% Libor floor.

In addition the company is seeking an amendment to its existing first-and second-lien credit agreements to change the definition of working capital.

No amendment fee is being offered, the source added.

RentPath is an Atlanta-based vertical search company for apartment and home renters.

Affinity Gaming launches

Affinity Gaming held its bank meeting in the afternoon and announced price talk on its $125 million incremental first-lien term loan B and $100 million second-lien term loan, market source remarked.

The incremental first-lien term loan B is talked at Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 775 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

Commitments are due on Aug. 17.

Jefferies LLC is leading the $225 million in term loans that will be used to refinance the company’s existing second-lien term loan and to fund a future dividend.

The use of proceeds is subject to regulatory approval.

Existing lenders are being offered a 12.5 bps fee for an amendment request.

Also, with this transaction, the company is looking to reprice its existing first-lien term loan to Libor plus 325 bps with a 1% Libor floor from Libor plus 350 bps with a 1% Libor floor.

Affinity Gaming is a Las Vegas-based diversified casino gaming company.

RadNet seeks incremental

RadNet Management launched on its call a $170 million incremental first-lien term loan due June 30, 2023 at talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for one year, a market source said.

The term loan has a step-up to Libor plus 450 bps if first-lien leverage is more than 5.5 times, and step-downs to Libor plus 350 bps if first-lien leverage is greater than 3.5 times but equal to 4 times and Libor plus 325 bps if first-lien leverage is 3.5 times, the source added.

Barclays is leading the deal that will be used to refinance a second-lien term loan.

In connection with this transaction, the company is seeking an amendment to permit the proposed incremental loan as well as various other requests and is offering lenders a 25 bps consent fee.

Commitments/consents are due at noon ET on Aug. 16.

Including the incremental loan, the first-lien term loan will total $637 million.

RadNet is a Los Angeles-based owner and operator of outpatient diagnostic imaging centers.

Epicor comes to market

Epicor Software launched a fungible $221.2 million incremental term loan B due June 1, 2022 at talk of Libor plus 375 bps with a 1% Libor floor and a par issue price, according to a market source.

Spread and floor on the incremental loan matches existing term loan pricing.

Commitments are due at 5 p.m. ET on Monday, the source said.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to refinance an existing first-lien term loan B-1.

Epicor is an Austin, Texas-based provider of enterprise business software services.

Grosvenor reveals OID

Grosvenor Capital Management disclosed original issue discount talk of 99.5 on its fungible $75 million add-on first-lien term loan due August 2023 that launched with an afternoon call, a market source remarked.

Pricing on the add-on term loan is Libor plus 300 bps with a 1% Libor floor, in line with existing term loan pricing.

Commitments are due on Tuesday, the source added.

Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used to fund a dividend.

Grosvenor Capital is a Chicago-based independent alternative asset management firm.

A Wireless talk

A Wireless held its call, launching its $50 million incremental term loan at talk of Libor plus 600 bps with a 1% Libor floor and a par issue price, according to a market source.

The spread and floor on the incremental loan matches existing term loan pricing.

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

UBS Investment Bank and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund a dividend.

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

Prestige readies deal

In more primary happenings, Prestige Brands set a lender call for 11 a.m. ET on Thursday to launch a repricing of its $1,312,000,000 term loan B, according to a market source.

Cashless roll is available, the source said.

Barclays is leading the deal.

Prestige Brands is a Tarrytown, N.Y.-based marketer and distributor of over-the-counter and household cleaning products.

On Assignment schedules call

On Assignment emerged with plans to hold a lender call at 11 a.m. ET on Thursday to launch the previously announced repricing of its existing $594 million term loan B, a market source said.

Talk on the loan is Libor plus 200 bps with no Libor floor, a par issue price and 101 soft call protection for six months, the source added.

Commitments are due at 3 p.m. ET on Aug. 16.

Wells Fargo Securities LLC is leading the deal that will reprice the existing term loan B down from Libor plus 225 bps with no Libor floor.

On Assignment is a Calabasas, Calif.-based provider of diversified professional staffing solutions.

IPS coming soon

IPS Intermediate Holding scheduled a lender call for 3:15 p.m. ET on Thursday to launch a fungible $80 million incremental term loan due Dec. 20, 2023, according to a market source.

The incremental loan is priced at Libor plus 525 bps with a 1% Libor floor, which matches existing term loan pricing, the source said.

The loan has 101 soft call protection through Dec. 21.

Jefferies LLC is leading the deal that will be used to fund the acquisition of Dura Plastic Products.

IPS, a portfolio company of Nautic Partners LLC, is a Compton, Calif.-based manufacturer of solvent cements, primers and sealants, plumbing and roofing products, and structural and assembly adhesives.

© 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.