Altice Financing, Global Knowledge, Charter NEX break for trading; Curo Health updates deal

By Sara Rosenberg

New York, Jan. 30 – Altice Financing SA firmed spreads on its U.S. and euro term loans at the tight end of revised guidance and then freed up for trading on Friday, and Global Knowledge Training LLC and Charter NEX US Holdings Inc. broke as well.

Shifting to the primary market, Curo Health Services finalized pricing on its first-lien term loan at the high end of talk, Select Staffing (Koosharem LLC) moved up the commitment deadline on its loan, and Veresen Midstream LP and Phoenix Services (Metal Services LLC) joined the near-term calendar.

Altice sets spreads

Altice firmed pricing on its $500 million seven-year first-lien term loan B and €400 million seven-year first-lien term loan B at Libor/Euribor plus 425 basis points, the low end of revised talk of Libor/Euribor plus 425 bps to 450 bps, according to a market source. The spreads came down from talk at launch of Libor plus 500 bps to 525 bps on the U.S. piece and Euribor plus 475 bps to 500 bps on the euro piece.

Both term loans have a 1% floor and 101 soft call protection for one year, the U.S. term loan has an original issue discount of 99, and the euro term loan has a discount of 99½.

When price talk was initially changed, the call protection on both term loans was revised from 102 in year one and 101 in year two.

Goldman Sachs, J.P. Morgan Securities LLC, Credit Suisse, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Credit Agricole, Banca IMI, Citigroup Global Markets Inc., HSBC Securities, Nomura Securities, RBC Capital Markets, Societe Generale and UniCredit Group are leading the deal.

Altice tops OIDs

With final terms in place, Altice’s new debt began trading, with the U.S. term loan B quoted at 99¾ bid, par ½ offered and the euro term loan B quoted at par ½ bid, 101½ offered, a trader remarked.

Along with the new term debt, the company is getting $2.06 billion and €500 million of senior secured notes at Altice Financing SA and $385 million of senior notes at Altice Finco SA.

The U.S. senior secured notes priced at par to yield 6 5/8%, the euro senior secured notes priced at par to yield 5¼%, and the senior notes priced at par to yield 7 5/8%.

Proceeds from the term loans and notes will be used to help fund the acquisition of the Portuguese assets of Portugal Telecom from Grupo Oi SA.

The transaction values Portugal Telecom at an enterprise value of €7.4 billion on a cash and debt-free basis, which includes a €500 million consideration related to the future revenue generation of Portugal Telecom.

Altice is a Luxembourg-based telecommunications and cable company.

Global Knowledge frees up

Global Knowledge’s credit facility hit the secondary market too, with the $175 million six-year first-lien term loan (B1/B+) quoted at 99½ bid, par ½ offered and the $50 million seven-year second-lien term loan (Caa1/B) quoted at 98½ bid, 99 offered, according to a trader.

The first-lien term loan is priced at Libor plus 550 bps with a 1% Libor floor and was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Pricing on the second-lien term loan is Libor plus 950 bps with a 1% Libor floor, and it was issued at a discount of 98. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

The company’s $245 million credit facility also includes a $20 million revolver (B1/B+).

Global Knowledge leads

Credit Suisse Securities, Macquarie Capital and ING are leading Global Knowledge’s credit facility.

During syndication, pricing on the first-lien term loan was lifted from Libor plus 525 bps and the discount tightened from revised talk of 98½ but ended up in line with initial talk of 99, pricing on the second-lien term loan was increased from Libor plus 900 bps and the discount revised from 98½, and a maximum total leverage covenant was added to the initially covenant-light term loans.

Proceeds will be used to help fund the buyout of the company by Rhone Capital LLC from MidOcean Partners.

Global Knowledge is a Cary, N.C.-based provider of IT and business skills training.

Charter NEX breaks

Charter NEX’s credit facility also freed up, with the $270 million seven-year first-lien covenant-light term loan B (B1/B+) seen at 99½ bid, par offered and the $110 million eight-year second-lien covenant-light term loan (Caa1/CCC+) seen at 99½ bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor, and it was sold at a discount of 98½. This debt has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was lowered from Libor plus 475 bps, and the call protection was extended from six months; the spread on the second-lien term loan was reduced from Libor plus 875 bps.

Charter NEX getting revolver

Charter NEX’s $430 million senior secured credit facility also includes a $50 million five-year revolver (B1/B+) that is priced at Libor plus 425 bps with no Libor floor and was sold at an original issue discount of 99.

Pricing on the revolver was trimmed from Libor plus 450 bps during syndication.

Morgan Stanley Senior Funding and Guggenheim Corporate Funding LLC are leading the deal.

Proceeds will be used to help fund the buyout of the company by Pamplona Capital Management LLP.

Closing is expected on Thursday.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

Curo firms pricing

Over in the primary, Curo Health Services finalized pricing on its $380 million first-lien term loan (B2/B) at Libor plus 550 bps, the wide end of the Libor plus 525 bps to 550 bps talk, and kept the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a source remarked.

The company’s $545 million senior secured credit facility also includes a $45 million revolver (B2/B), and a $120 million second-lien term loan (CCC+) that was privately placed.

Recommitments were due at 2 p.m. ET on Friday, the source added.

Goldman Sachs Bank USA, Jefferies Finance LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Thomas H. Lee.

Curo Health is a Mooresville, N.C.-based provider of home health care and hospice services.

Select Staffing tweaks deadline

Select Staffing changed the commitment deadline on its $255 million tack-on senior secured term loan due May 2020 (B3/B-) to 5 p.m. ET on Monday from Tuesday, a source said.

Pricing on the tack-on term loan is Libor plus 650 bps with a 1% Libor floor, in line with the existing term loan, and it is being offered at an original issue discount of 98½. There is call protection of 102 through May 2015 and a 101 soft call for six months thereafter.

Credit Suisse Securities and RBC Capital Markets are leading the deal that will be used to help fund the company’s acquisition of EmployBridge Inc. from Morgan Stanley Global Private Equity and Constitution Capital.

Along with the tack-on loan, the company is seeking an amendment to its existing $370 million term loan due May 2020 for which the consent fee is 25 bps.

Select Staffing is a provider of workforce management services. EmployBridge is a provider of specialty staffing services. The combined company will be based in Atlanta.

Veresen readies deal

Veresen Midstream emerged with plans to hold a bank meeting on Wednesday to launch a $600 million seven-year term loan B, according to a market source.

Proceeds will be used to fund the acquisition of certain natural gas gathering and compression assets supporting Montney development in the Dawson area of northeastern British Columbia from Encana Corp. and the Cutbank Ridge Partnership for $600 million, plus actual costs accrued in 2015.

The company’s proposed senior secured credit facility also includes a C$75 million revolver that will be available for operating and working capital requirements, and a C$1,275,000,000 non-revolving expansion facility that will be largely undrawn initially and available to fund future growth.

RBC Capital Markets, TD Securities (USA) LLC and HSBC Securities are leading the deal.

Closing is expected this quarter, subject to receipt of approvals under the Competition Act and the Investment Canada Act and other customary conditions.

Veresen Midstream is a joint venture being formed by Veresen Inc. and Kohlberg Kravis Roberts & Co. LP.

Phoenix Services on deck

Phoenix Services set a call for 3 p.m. ET on Monday to launch a $50 million tack-on first-lien term loan due June 30, 2017 that is talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

The spread and floor on the tack-on loan matches the existing term loan, and the existing loan will get the same six months of call protection as the new debt.

All of the debt has a maximum leverage covenant, and the company will seek an amendment to the existing loan to reset the leverage ratio levels, the source said.

Credit Suisse Securities and Morgan Stanley Senior Funding are leading the tack-on loan that will be used by the industrial services company for general corporate purposes.

Commitments are due on Feb. 6, the source added.

Dynacast closes

In other news, the buyout of Dynacast International, a Charlotte, N.C.-based manufacturer of metal components, by Partners Group from existing financial investors has been completed, a news release said.

To help fund the transaction, Dynacast obtained a $530 million seven-year first-lien term loan (Ba3/B) and a $170 million eight-year second-lien term loan (Caa1/B-) led by JPMorgan, Barclays and Macquarie Capital.

Pricing on the first-lien term loan is Libor plus 425 bps 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.

The second-lien term loan, which priced at Libor plus 850 bps with a 1% Libor floor, was issued at a discount of 98. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the spread on the first-lien term loan was reduced from talk of Libor plus 450 bps to 475 bps, and the call protection was extended from six months, and the discount on the second-lien loan firmed at the wide end of the 98 to 98½ talk.

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