CPM Holdings, Hyland Software, Meredith, Delek, Holley Perfomance/Driven Performance break

By Sara Rosenberg

New York, Oct. 24 – A bunch of deals made their way into the secondary market on Wednesday, including CPM Holdings Inc., Hyland Software Inc., Meredith Corp., Delek US Holdings Inc. and Holley Performance Products/Driven Performance Brands (Holley Purchaser Inc.).

Meanwhile, in the primary market, AssetMark Financial Holdings Inc., Syncsort Inc. and Cyanco Intermediate 2 Corp. announced price talk with launch, and RealD Inc. came out with guidance on its term loans in preparation for its upcoming bank meeting.

CPM hits secondary

CPM Holdings’ credit facilities freed up for trading on Wednesday, with the $540 million seven-year first-lien term loan quoted at par ½ bid, 101¼ offered and the $200 million eight-year second-lien term loan quoted at 99¾ bid, par ¾ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 375 basis points with a 25 bps leverage-based pricing step-down and a 0% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 825 bps with a 0% Libor floor and was issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $515 million, the spread firmed at the low end of the Libor plus 375 bps to 400 bps talk, the discount was tightened from 99.5 and one 25 bps leverage-based step-down was removed from the pricing grid. As for the second-lien term loan, it was downsized from $225 million, pricing finalized at the high end of the Libor plus 800 bps to 825 bps talk and the only 25 bps leverage-based step-down was eliminated.

CPM getting revolver

In addition to the first-and second-lien term loans, CPM’s $790 million of senior secured credit facilities include a $50 million five-year revolver.

Jefferies LLC, BMO Capital Markets, Rabobank, Goldman Sachs Bank USA and Stifel are leading the deal that will be used to fund the buyout of the company by American Securities LLC.

CPM is a provider of proprietary process equipment, engineered system solutions and related aftermarket parts for the animal feed, oilseed processing, consumer food products, biomass, and engineered materials markets.

Hyland starts trading

Hyland Software’s bank debt emerged in the secondary as well, with the $1.52 billion first-lien term loan (B1/B-) due July 1, 2024 quoted at par ½ bid, 101 offered and the fungible $225 million incremental second-lien term loan due 2025 quoted at par ¼ bid, a market source said.

Pricing on the first-lien term loan, which includes a $147 million incremental tranche and a $1,373,000,000 extended tranche, is Libor plus 350 bps with a 25 bps step-down at 0.5 times inside closing first-lien net leverage and a 0.75% Libor floor. The debt has 101 soft call protection for six months and was issued at par, with a 25 bps extension fee offered on the extended tranche.

The incremental second-lien term loan is priced at Libor plus 700 bps with a 0.75% Libor floor and was issued at par. This tranche has 101 hard call protection for 18 months.

On Tuesday, the incremental first-lien term loan was increased from $97 million, the issue price was changed from 99.75 and the step-down was added. Also, the incremental second-lien term loan was decreased from $275 million, pricing was cut from Libor plus 725 bps, the issue price was modified from 99.5 and the call protection was revised from 102 in year one and 101 in year two.

Hyland lead banks

Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading Hyland’s $1,745,000,000 of term loans.

The incremental loans will be used to fund a shareholder distribution, and the first-lien term loan extension will push out the maturity on the existing first-lien term loan by two years and increase pricing from Libor plus 325 bps with a 0.75% Libor floor.

Because pricing on the incremental second-lien term loan was flexed down during syndication, pricing on the company’s existing $285 million second-lien term loan due 2025 is not being increased to Libor plus 725 bps from its current rate of Libor plus 700 bps.

Hyland, a Thoma Bravo portfolio company, is a Westlake, Ohio-based enterprise content-management software developer.

Meredith tops par

Meredith’s $1,595,000,000 term loan B (BB) began trading too, with levels quoted at par 1/8 bid, par 3/8 offered, according to a trader.

Pricing on the term loan is Libor plus 275 bps with a 25 bps stepdown at 2.25 times consolidated net leverage and a 0% Libor floor. The loan was issued at par and includes 101 soft call protection for six months.

On Tuesday, pricing on the term loan was lifted from Libor plus 250 bps, the condition for the step-down was revised from 2 times consolidated net leverage, and all proposed amendments were removed except for the request to remove payment of unsecured unsubordinated debt and junior lien secured indebtedness from the restriction on restricted payments.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan B from Libor plus 300 bps with a 0% Libor floor.

Meredith is a Des Moines-based media and marketing company.

Delek frees up

Delek US Holdings’ $696.5 million covenant-light term loan B due March 30, 2025 also broke, with levels seen at par bid, par ¼ offered, a market source remarked.

Pricing on the term loan is Libor plus 225 bps with no floor and it was issued at par. The loan has 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with no floor.

Delek is a Brentwood, Tenn.-based Permian-based integrated downstream energy company.

Holley/Driven breaks

Holley Performance/Driven Performance’s credit facilities freed to trade, with the $380 million seven-year first-lien term loan quoted at 99 bid, 99¾ offered, a market source said.

Pricing on the term loan is Libor plus 500 bps with a 0% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was raised from Libor plus 450 bps, the discount widened from 99.5, the call protection was extended from six months, the MFN sunset and first-lien MFN adjustment exceptions were removed, asset sale sweep step-downs were removed, the 5% market capitalization provision for post-IPO dividends was eliminated, the unlimited junior debt prepayment provision was removed, a requirement for quarterly lender calls was added, and step-downs were added to the 8.5 times initial total gross leverage maintenance covenant, to 8 times total gross leverage in September 2021, 7.5 times total gross leverage in March 2024 and 7 times total gross leverage in March 2025.

Holley/Driven merging

Proceeds from the term loan will be used to fund the combination of Holley Performance Products and Driven Performance Brands by Sentinel Capital Partners.

Along with the term loan, the company’s $450 million of senior secured credit facilities (B2/B-) include a $50 million five-year revolver and a $20 million first-lien delayed-draw term loan.

During syndication, the delayed-draw term loan was detached from the funded term loan and no longer offered for syndication.

UBS Investment Bank, SunTrust Robinson Humphrey Inc., MUFG and Cowen are leading the deal.

Holley Performance Products is a Bowling Green, Ky.-based automotive performance company. Driven Performance Brands is a Santa Rosa, Calif.-based provider of automotive aftermarket products.

AssetMark sets guidance

Switching to the primary market, AssetMark held its bank meeting on Wednesday morning and shortly before the event began, price talk on its $250 million seven-year first-lien term loan (B1/BB+) was revealed to be Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

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

Commitments are due on Nov. 7.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a shareholder distribution and for general corporate purposes.

AssetMark is a Concord, Calif.-based provider of wealth management and technology solutions that power independent financial advisers and their clients.

Syncsort comes to market

Syncsort launched during the session a $761 million covenant-light term loan B (B2/B-) due Aug. 16, 2024 talked at Libor plus 425 bps to 450 bps with 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Oct. 31, the source added.

Bank of America Merrill Lynch is the left lead on the deal that will be used to reprice an existing term loan B.

Syncsort is a Pearl River, N.Y.-based enterprise software provider.

Cyanco launches

Cyanco released talk of Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $75 million incremental covenant-light first-lien term loan (B2/B) due March 2025 that launched with an afternoon call, a market source remarked.

Commitments are due at 5 p.m. ET on Tuesday.

Deutsche Bank Securities Inc., RBC Capital Markets, Societe Generale and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt.

Cyanco is a Pearland, Texas-based supplier of sodium cyanide used for the extraction of gold and silver.

RealD floats talk

RealD is talking its $250 million five-year first-lien term loan at Libor plus 550 bps to 575 bps with a 0% Libor floor and an original issue discount of 99, and its $75 million six-year second-lien term loan at Libor plus 1,000 bps with a 0% Libor floor and a discount of 98.5 to 99, according to a market source.

The first-lien term loan has 101 soft call protection for one year, while call protection on the second-lien term loan is still to be determined.

As previously reported, the $325 million of senior secured term loans will launch with a bank meeting at 2:15 p.m. ET on Thursday. The company will be holding a 3D screening at 2 p.m. ET on Thursday and an additional 3D screening upon completion of the bank meeting.

Jefferies LLC is leading the deal, which will be used to refinance existing debt.

RealD is a Beverly Hills, Calif.-based licensor of 3D and other visual technologies for use in the cinema industry.

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