Misys outlines talk on $5.75 billion four-part deal; TierPoint talks $920 million

By Paul A. Harris

Portland, Ore., April 18 – In Tuesday's leveraged loan market Misys Ltd. set tranche sizes and price talk in its $5.75 billion equivalent amount of senior secured credit facilities.

And TierPoint, LLC set price talk in its $920 million of credit facilities.

Misys talk, tranche sizes

Misys set tranche sizes and price talk in its $5.75 billion equivalent amount of senior secured credit facilities, according to a market source.

A $400 million five-year revolver is talked at Libor plus 350 basis points to 375 bps with a 0% Libor floor.

A $3.12 billion seven-year first lien term loan B is talked at Libor plus 350 bps to 375 bps atop a 1% Libor floor at 99 to 99.5. It features six month of soft call protection at 101 and a 1% annual amortization rate.

A €1 billion seven-year first-lien term loan B is talked at Euribor plus 400 bps to 425 bps, with a 0% Euribor floor, at 99 to 99.5. It features six months of soft call protection at 101 and a 1% annual amortization rate.

An $850 million eight-year second-lien loan is talked at Libor plus 775 bps to 800 bps atop a 1% Libor floor, at 98.5. It features hard calls at 102 and 101.

A €280 million eight-year second-lien term loan is talked at Euribor plus 725 bps to 750 bps atop a 1% Euribor floor at 98.5. It features hard calls at 102 and 101.

Commitments are due on May 3.

Joint lead arranger and joint bookrunner Morgan Stanley is leading the dollar-denominated term loan B.

Joint lead arranger and joint bookrunner Citigroup is leading the euro-denominated term loan B. Joint lead arranger and joint bookrunner Barclays is leading the second-lien tranches. Macquarie and Nomura are also joint lead arrangers and joint bookrunners.

Proceeds will be used to partially fund the acquisition of DH Corp. and to refinance existing debt at both Misys and DH.

Misys is a London-based provider of financial services software.

TierPoint talk

TierPoint set price talk in its $920 million of credit facilities, according to a market source.

The deal includes a $700 million seven-year first-lien loan (B2/B+/BB) talked at Libor plus 325 basis points to 350 bps atop a 1% Libor floor at 99.5. RBC Capital Markets LLC is the left bookrunner for the first-lien tranche.

A $220 million eight-year second-lien loan (Caa2/CCC+/B-) is talked at Libor plus 725 bps to 750 bps atop a 1% Libor floor at 99. Credit Suisse Securities (USA) LLC is the left bookrunner for the second-lien tranche.

The first-lien tranche comes with six months of soft call protection at 101. The second-lien tranche comes with hard calls at 102, then 101; the second-lien tranche also comes with a high-yield carveout at 101.

Commitments are due on April 28.

The company plans to use the proceeds to refinance its existing credit facilities.

TierPoint is a St. Louis-based provider of cloud, colocation and managed services designed to help organizations improve business performance and manage risk.

Nautilus Power talk

Nautilus Power, LLC talked its $575 million seven-year first-lien term loan B with a 425 basis points to 450 bps spread to Libor atop a 1% Libor floor at 99, according to a market source.

The deal comes with six months of soft call protection at 101 and a 1% annual amortization rate.

Commitments are due at noon ET on April 28.

Morgan Stanley & Co., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the joint lead arrangers and joint bookrunners.

The $650 million senior secured credit facility also includes a $75 million revolving credit facility, also talked at Libor plus 400 bps to 425 bps, with a 0% Libor floor.

Proceeds will be used to recapitalize the business in connection with Carlyle Power Partners’ acquisition, including the refinancing of existing debt.

The borrower is a Massachusetts-based wholesale power generation and marketing company.

Alvogen incremental loan

Alvogen Pharma US Inc. talked its $350 million fungible incremental term loan due April 2, 2022 with a 500 basis points spread to Libor atop a 1% Libor floor at 99.126, according to a market source.

Commitments are due at 5 p.m. ET on April 26.

Jefferies Finance LLC is the lead on the deal.

The loan's six months of soft call protection at 101 will be reset.

Proceeds will be used to pay down ABL revolver borrowings and fund general corporate purposes, including a restricted payment, the source said.

Alvogen is a Pine Brook, N.J.-based developer and manufacturer of generic drugs, and provider of contract manufacturing, development and research services to large branded pharma companies.

APC talks covenant light deal

APC Aftermarket talked its $315 million seven-year covenant-light first-lien term loan with a 450 basis points spread to Libor atop a 1% Libor floor at 99, according to a market source.

Commitments are due May 1.

Left arranger Jefferies LLC and joint arranger Goldman Sachs & Co. are leading the loan, which comes with six months of call protection, at 101.

The $515 million facility also includes a $75 million asset-based revolver and a $125 million privately placed second-lien term loan.

Proceeds will be used to fund the acquisition and merger of AP Exhaust Products, Inc. and CWD, LLC to create APC Aftermarket, an emissions supplier in the automotive, heavy-duty, and performance aftermarkets as well as a leading full-line distributor and supplier of aftermarket brake and chassis components.

Harland Clarke lender meeting

Harland Clarke Holding Corp. plans to meet with prospective lenders at 3 p.m. ET on Wednesday to discuss a $360 million incremental covenant-light first-lien term loan B6 due February 2022, according to a market source.

The maturity and 550 basis points spread will be the same as those of the existing loan, as will the 101 soft call protection, which runs through August.

The issue price remains to be determined.

Commitments are due at 5 p.m. ET on April 26.

Credit Suisse Securities (USA) LLC has the books.

Proceeds will be used for acquisition financing.

The borrower is a San Antonio, Texas-based provider of media delivery, payment solutions and marketing services.

Garda extends deadline

Garda World Security Corp. extended the commitment deadline for its $980 million-equivalent seven-year senior secured covenant-light term loan to April 25, according to a market source.

The previous deadline was April 19.

Updated timing was announced on Tuesday in conjunction with the announcement of deadline extension of the cash logistics and security solutions provider's tender offer for its $440 million of 7¼% senior notes due 2021 to May 12 from April 18.

A $630 million offering of senior notes (Caa2/CCC+) is expected to launch on Monday.

As reported, Garda's loan will include a U.S. dollar tranche and a Canadian dollar tranche.

Talk on the U.S. term loan tranche is Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 99 to 99.5, and talk on the Canadian term loan tranche is CDOR plus 425 bps with a 1% floor and a discount of 99 to 99.5, the source said.

Both term loan tranches have 101 soft call protection for six months.

The company’s $1.22 billion in credit facilities (NA/NA/BB+) also include a $240 million revolver.

Barclays, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., TD Securities (USA) LLC and Societe Generale are the bookrunners on the deal.

Garda is a Montreal-based provider of cash logistics and security solutions.

Accuride lender call

There will be a lender call at 4 p.m. ET Wedneday to launch a fungible add-on to Accuride's existing $225 million term loan B, according to a market source.

Proceeds will be used to fund an acquisition.

RBC Capital Markets will lead the transaction.

Accuride is an Evansville, Ind.-based supplier of components to the commercial vehicle industries.

DiversiTech buyout deal

DiversiTech plans to put in place $495 million of credit facilities backing the buyout of the company by Premira from an affiliate of Jordan Co., according to a market source.

The deal, which will include a $50 million revolver, a $325 million first-lien term loan and a $120 million second-lien term loan, is expected to hit the market during the second week of May.

RBC Capital Markets, Barclays, Deutsche Bank and Societe Generale are joint bookrunners and joint lead arrangers.

Deluxe Entertainment call Wednesday

Deluxe Entertainment Services Group Inc. plans to participate in a conference call with lenders at 10 a.m. ET on Wednesday, according to a market source.

The Los Angeles-based provider of digital asset creation, management and distribution services plans to syndicate a $200 million fungible tack-on to its first-lien term loan due Feb. 20, 2020 (B2/B-).

Commitments are due at 5 p.m. ET on April 26.

Credit Suisse Securities (USA) LLC is the lead.

The six months of soft call protection at 101 will be reset. The loan also features a 2.5% annual amortization rate.

Proceeds will be used to pay down the ABL facility and refinance the existing term loan.

Alliant lenders meeting

Alliant Holdings Intermediate, LLC plans to meet with lenders at 11:30 a.m. ET on Wednesday to kick off a $200 million incremental term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets LLC are the arrangers.

The proceeds will be used to fund a dividend to shareholders.

Alliant Holdings is a Newport Beach, Calif.-based specialty insurance brokerage firm.

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