Delek term loan frees to trade; Cornerstone OnDemand reveals guidance

By Sara Rosenberg

New York, May 18 – Delek US Holdings Inc.’s incremental term loan B made its way into the secondary market on Monday with levels quoted above its original issue discount.

In more happenings, Cornerstone OnDemand Inc. disclosed price talk on its first-lien term loan with its lender call.

Delek breaks

Delek’s $200 million non-fungible incremental covenant-lite term loan B (B1) due March 30, 2025 began trading on Monday afternoon, with levels seen at 93˝ bid, 94˝ offered, according to a market source.

Pricing on the term loan is Libor plus 550 basis points with a 1% Libor floor, and it was sold at an original issue discount of 93. The debt is non-callable for one year and then has a 101 soft call for one year.

Last week, pricing on the term loan firmed at the high end of the Libor plus 525 bps to 550 bps talk, the discount was revised from 95 and the call protection saw the addition of the 101 soft call following the expiration of the non-call period.

Wells Fargo Securities LLC is the lead arranger on the deal.

Proceeds will be used to fund cash to the balance sheet.

Delek is a Brentwood, Tenn.-based integrated downstream energy company focused on petroleum refining, the transportation, storage and wholesale distribution of crude oil, intermediate and refined products and convenience store retailing.

Cornerstone sets talk

Cornerstone OnDemand held its call in the afternoon and announced talk on its $1,004,700,000 covenant-lite first-lien term loan B due April 22, 2027 at Libor plus 425 bps with a 0% Libor floor, an original issue discount of 95 to 96 and 101 soft call protection for one year, a market source remarked.

The company’s $1,154,700,000 of senior secured credit facilities (B1/B) also include a $150 million five-year revolver.

Commitments are due at noon ET on May 28, the source added.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Jefferies LLC and BMO Capital Markets Corp. are leading the deal that was used to help fund the acquisition of Saba Software from Vector Capital for about $1.295 billion, consisting of $1.262 billion in cash and 1,110,352 shares of common stock.

The credit facilities closed on April 22.

Cornerstone is a Santa Monica, Calif.-based people development company. Saba is a Dublin, Calif.-based provider of learning, performance and recruiting product solutions.

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