Time, 4L break; Interactive Data, Munters reveal revisions; Sterling, Learning Care set talk

By Sara Rosenberg

New York, April 17 - Time Inc.'s credit facility freed up for trading on Thursday with the term loan quoted above its original issue discount price, and 4L Technologies Inc. surfaced in the secondary market as well.

Moving to the primary, Interactive Data Corp. reduced the size of its term loan and raised the spread, and Munters Group widened price talk and original issue discount on its term loan, sweetened the call protection and added a financial covenant.

In addition, Sterling Infosystems Inc. and Learning Care Group released talk with launch, and Electrical Components International Inc. disclosed timing and structure on its buyout deal.

Time starts trading

Time's credit facility hit the secondary on Thursday, with the $700 million seven-year covenant-light term loan B quoted at 99½ bid, par ¼ offered, according to a trader.

Pricing on the B loan is Libor plus 325 basis points 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 and ticking fee of half the spread starting on day 46 and ending on the earlier of the closing date and June 30.

During syndication, the term loan was downsized from $900 million as the company's senior notes offering was lifted to $700 million from $500 million, pricing was flexed up from talk of Libor plus 275 bps to 300 bps, the discount was modified from 99½ and the call protection as extended from six months.

The company's $1.2 billion credit facility (Ba1/BBB-) also includes a $500 million five-year revolver.

Time lead banks

Citigroup Global Markets Inc., Barclays, BNP Paribas Securities Corp., Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading Time's credit facility.

Closing is anticipated to occur in the week of April 21.

Proceeds from the credit facility and notes will be used to fund the acquisition of Time Inc.'s U.K. publishing business, which is owned by a wholly owned subsidiary of Time Warner Inc., and to pay a special cash dividend to Time Warner Inc.

Time is a New York-based media company.

4L frees up

4L Technologies' credit facility also broke for trading, with the $650 million six-year covenant-light term loan B seen at 99¼ bid, par offered, a trader remarked.

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

Recently, pricing was increased from Libor plus 425 bps, the discount widened from 991/2, the call protection as extended from six months and the MFN was revised to 50 bps for life instead of for 18 months.

The company's $715 million credit facility (B2/B+) also includes a $65 million five-year revolver.

Bank of America Merrill Lynch and GE Capital Markets are leading the deal that will be used to refinance existing debt and fund a dividend.

4L Technologies is a Hoffman Estates, Ill.-based printer cartridge and mobile phone remanufacturer.

Interactive Data modified

In the primary, Interactive Data downsized its seven-year covenant-light term loan to $1.9 billion from $2.05 billion as its bond deal was upsized to $350 million from $200 million, a market source said. Before firming, the term loan was talked at $1.85 billion to $1.9 billion and the notes were talked at $350 million to $400 million.

Additionally, pricing on the term loan was raised to Libor plus 375 bps from Libor plus 325 bps, while the 1% Libor floor, discount of 99½ and 101 soft call protection for six months were unchanged, the source continued.

Recommitments for the company's credit facility, which also includes a $160 million five-year revolver, were due at 11 a.m. ET on Thursday, the source added. Allocations are targeted for early in the week of April 21.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, UBS Securities LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Well Fargo Securities LLC are leading the deal that will be used by the Bedford, Mass.-based provider of financial market data to refinance existing term loans, redeem 10¼% senior notes due 2018 and fund a roughly $273 million dividend.

Munters reworks loan

Munters Group lifted price talk on its $280 million seven-year term loan B (B3/B) to Libor plus 500 bps to 525 bps from Libor plus 400 bps to 425 bps, moved the original issue discount to 99 from 991/2, extended the 101 soft call protection to one year from six months and added a total leverage maintenance covenant to the previously covenant-light transaction, according to a market source.

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

Recommitments were due at the end of the day on Thursday, the source remarked.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance existing debt.

Munters is a Sweden-based provider of energy-efficient air treatment services with expertise in climate control technologies.

Sterling guidance emerges

Sterling Infosystems held its bank meeting on Thursday, launching its $25 million six-year revolver and a $290 million seven-year covenant-light term loan with talk of Libor plus 400 bps with an original issue discount of 991/2, according to a market source.

The term loan has a 1% Libor floor and 101 soft call protection for six months, the source said.

Commitments for the $315 million credit facility (B2/B) are due on May 1.

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 distribution to shareholders.

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

Learning Care discloses talk

Learning Care Group came out with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $320 million covenant-light term loan that launched with a bank meeting during the session, a source said.

The company's $370 million credit facility also includes a $50 million revolver.

Commitments are due on May 1, the source added.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used with equity to fund the buyout of the company by American Securities from Morgan Stanley Global Private Equity.

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

Electrical Components on deck

Electrical Components set a bank meeting for Tuesday to launch a $260 million seven-year term loan B that will be used to help fund its buyout by KPS Capital Partners LP, according to a market source.

Bank of America Merrill Lynch, GE Capital Markets Inc. and Fifth Third Bank are leading the deal.

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

Electrical Components is a St. Louis-based manufacturer of wire harnesses and value-added assembly services for consumer appliance and specialty-industrial applications.

© 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.