Epicor, Virgin Media, Weather, Infiltrator, Hubbard Radio, LegalShield, Bombardier break

By Sara Rosenberg

New York, May 21 – Epicor Software Corp. lowered pricing on its first-lien term loan, extended the call protection and then freed up for trading on Thursday, and Virgin Media Inc., Weather Co. (TWCC Holding Corp.), Infiltrator Systems Integrated LLC, Hubbard Radio LLC, LegalShield (Pre-Paid Legal Services Inc.), Bombardier Recreational Products Inc. and Creganna-Tactx Medical hit the secondary market too.

In more happenings, Salient Partners LP modified spread talk and original issue discount on its term loan, Merrill Communications LLC added a covenant to its previously covenant-light first-lien term loan, and TransUnion LLC revised the condition under which pricing will step-down on its term loan B-2.

Also, Coveris Holdings SA set its add-on term loan size at the high end of talk while tightening the issue price, and firmed spreads on the add-on loan and its repricing transaction at the tight end of guidance, CommScope Inc. released price talk with launch, and Dollar Tree Inc. and SterlingBackcheck joined the near-term calendar.

Epicor revised, trades

Epicor Software cut pricing on its $1.4 billion seven-year covenant-light first-lien term loan to Libor plus 375 basis points from Libor plus 400 bps, pushed out the 101 soft call protection to one year from six months and eliminated the MFN sunset, according to a market source.

The term loan still has an original issue discount of 99.75 for everyone and a 1% Libor floor.

Previously in syndication, the issue price on the term loan was adjusted from 99.5 for new money and par for existing money.

The company’s $1.5 billion credit facility (B2/B) also includes a $100 million revolver.

With final terms in place, the deal made its way into the secondary market on Thursday, and the first-lien term loan was quoted at par bid, 100½ offered, a trader remarked.

Epicor leads

Jefferies Finance LLC, Macquarie Capital (USA) Inc. and Nomura are leading Epicor’s credit facility that will be used to refinance existing debt and fund a dividend to investors, including Apax Partners.

In addition to the credit facility, funds for the transaction will come from $610 million of second-lien notes that were pre-placed.

Leverage through the first-lien is 5.1 times, and total leverage is 7.3 times.

Epicor is a Dublin, Calif.-based provider of enterprise business software services.

Virgin Media tops OID

Virgin Media’s $1,855,000,000 term loan F due June 2023 freed up too, with levels quoted by one trader at 99½ bid, 99¾ offered and by a second trader at 99 5/8 bid, 99 7/8 offered.

Pricing on the term loan F is Libor plus 275 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.25. There is 101 soft call protection for six months.

The other day, the loan was upsized from a minimum of $1.2 billion, and the discount widened from 99.5.

Bank of America Merrill Lynch, Scotiabank and Goldman Sachs are leading the deal, with Scotia the administrative agent.

Proceeds will be used to extend/refinance the company’s existing $1,855,000,000 term loan due June 2020 that is priced at Libor plus 275 bps with a 0.75% Libor floor.

Virgin Media, a subsidiary of Liberty Global plc, is a Hook, England-based provider of broadband, TV, mobile phone and home phone services.

Weather frees to trade

Weather’s $1.35 billion first-lien term loan due February 2020 broke on Thursday at par bid, 100½ offered, a source remarked.

Pricing on the loan is Libor plus 500 bps with a 0.75% Libor floor, and it was sold at a discount of 99. There is 101 soft call protection for one year and existing lenders were offered a 100 bps extension fee.

Deutsche Bank Securities Inc. is leading the deal that will be used to extend the maturity of the existing first-lien term loan by three years while increasing pricing from Libor plus 275 bps with a 0.75% Libor floor.

During syndication, the size of the loan was increased from $1 billion, the spread was raised from Libor plus 425 bps, the discount for new money widened from 99.5, the extension fee offered to existing lenders was changed from 25 bps, the call protection was extended from six months, the excess cash flow sweep was increased to 75% and the $100 million par offer paydown was changed to be offered to first-lien lenders only, instead of as $50 million on the first-lien term loan at par and $50 million on an existing second-lien term loan at par.

Closing is expected during the week of June 1, the source added.

Weather is an Atlanta-based multi-platform media and information company focused on weather.

Infiltrator starts trading

Infiltrator Systems’ term debt surfaced in trading, with the $245 million seven-year first-lien covenant-light term loan seen at par bid, par 5/8 offered and the $100 million eight-year second-lien covenant-light term loan seen at 99 bid, par offered, 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 an original issue discount of 99.5. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 875 bps with a 1% Libor floor and was issued at a discount of 98.5. This debt has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $230 million as the second-lien loan was downsized from $115 million, pricing was reduced from Libor plus 450 bps, the discount tightened from 99, and the call protection was extended from six months.

Infiltrator being acquired

Proceeds from Infiltrator Systems’ $345 million of term loan will be used to help fund the buyout of the company by Teachers’ Private Capital.

Deutsche Bank Securities, RBC Capital Markets and Nomura are leading the debt.

Closing is expected this month.

Infiltrator Systems is an Old Saybrook, Conn.-based, provider of engineered plastic chambers, synthetic aggregate leach fields, tanks and accessories for the onsite wastewater and stormwater industries.

Hubbard Radio breaks

Hubbard Radio’s credit facility was another deal to free up, with the $360 million seven-year term loan B quoted at 99 7/8 bid, 100 3/8 offered, a trader remarked.

The term loan B is priced at Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The company’s $370 million senior secured credit facility also includes a $10 million five-year revolver priced at Libor plus 325 bps with a step-down to Libor plus 300 bps at 4 times leverage and no Libor floor.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance an existing senior secured credit facility.

Closing is expected on Wednesday.

Hubbard Radio is a St. Paul-based broadcasting company.

LegalShield hits secondary

LegalShield’s term loans broke, with the $295 million first-lien term loan (Ba2/B+) due July 1, 2019, including a $70 million add-on, quoted at 99¾ bid, 100¼ offered and the $175 million second-lien term loan due July 1, 2020 quoted at 99½ bid, 100½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 525 bps with a 1.25% Libor floor, and the add-on was sold at an original issue discount of 99.5. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 900 bps with a 1.25% Libor floor and has hard call protection of 102 for six months then 101 for one year.

Proceeds from the add-on will be used to help fund a $75 million dividend, and with the transaction, the company is increasing pricing on its existing first-lien term loan from Libor plus 500 bps with a 1.25% Libor floor and on its existing second-lien term loan from Libor plus 850 bps with a 1.25% Libor floor.

LegalShield amendment

Along with revising existing term loan pricing, LegalShield’s credit facility amendment is allowing for the dividend payment and resetting the secured leverage covenant

Existing first-lien term loan lenders were offered a 50 bps amendment fee, and existing second-lien lenders were offered a 75 bps amendment fee.

Morgan Stanley Senior Funding Inc. and RBC Capital Markets is leading the deal.

LegalShield is an Ada, Okla.-based provider of legal services.

Bombardier frees up

Bombardier Recreational Products’ repriced $792 million covenant-light term loan due January 2019 also began trading, with levels seen at par bid, 100¼ offered, a trader said.

Pricing on the loan is Libor plus 275 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for one year.

Recently, the Libor floor firmed at the wide end of the 0.75% to 1% talk and the call protection was extended from six months.

RBC Capital Markets LLC and BMO Capital Markets Corp. are leading the deal.

The repricing is taking the term loan pricing down from Libor plus 300 bps with a 1% Libor floor.

Bombardier Recreational is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

Creganna-Tactx breaks

Creganna-Tactx Medical’s repriced first-lien term loan (B1/B) due Dec. 1, 2021 hit the secondary as well, with levels quoted at 100 1/8 bid, 100 5/8 offered, according to a trader.

Pricing on the loan is Libor plus 375 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

The repricing is taking the term loan down from Libor plus 425 bps with a 1% Libor floor.

RBC Capital Markets, Morgan Stanley Senior Funding Inc., Bank of Ireland and Societe Generale are leading the deal.

Creganna-Tactx is a Galway, Ireland-based provider of medical device outsourcing services.

Salient reworks deal

Back in the primary, Salient Partners changed price talk on its $160 million term loan to Libor plus 600 bps to 650 bps from Libor plus 500 bps and moved the original issue discount to 98 from 99, while keeping the 1% Libor floor and 101 soft call protection for six months unchanged, a market source said.

The company’s $175 million credit facility (BB-) also includes a $15 million revolver.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

Macquarie Capital (USA) Inc. is leading the deal that will be used to refinance existing debt and fund the acquisition of Forward Management LLC, a San Francisco-based asset management firm.

Closing is expected this quarter, subject to approval by Forward Funds’ shareholders and customary conditions.

Salient is a Houston-based investment management firm.

Merrill adds covenant

Merrill Communications added a net first-lien leverage covenant to its $510 million seven-year first-lien term loan that was originally being shopped as a covenant-light loan, according to a market source.

Pricing on the term loan is still Libor plus 475 basis points with a 1% Libor floor and an original issue discount of 99, and there is still 101 soft call protection for one year.

The company’s $560 million credit facility (B2/BB-) also includes a $50 million revolver.

Commitments continue to be due on Wednesday, the source added.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to refinance existing debt.

Merrill is a St. Paul-based provider of outsourcing solutions for complex business communication and information management.

TransUnion tweaks step-down

TransUnion changed the leverage test for the pricing step-down on its $1,877,000,000 term loan B-2 due April 2021, a source said.

The step-down to Libor plus 275 bps will now occur at 4.25 times secured leverage, instead of at 4.5 times secured leverage. The step-down will still be triggered upon completion of an initial public offering of equity securities and 5 times net total leverage through the holdco.

Initial pricing on the term loan B-2 remained at Libor plus 300 bps with a 0.75% Libor floor, and the debt still has an original issue discount of 99.75 and 101 soft call protection for six months.

Commitments continued to be due at the close of business on Thursday.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance an existing term loan due April 2021 priced at Libor plus 300 bps with a 1% Libor floor.

TransUnion amending

As previously reported, along with the refinancing, TransUnion is seeking an amendment to its credit facility to permit the incurrence of new pro rata facilities to be substituted for an existing revolver.

The company said in a recent 8-K filing with the Securities and Exchange Commission that it plans to get a new $210 million revolver due 2020 and a new $325 million to $350 million term loan due 2020.

Proceeds from the new term loan due 2020 and from an IPO will be used to redeem $600 million of 9.625%/10.375% senior PIK toggle notes due 2018 and $400 million 8.125%/8.875% senior PIK toggle notes due 2018.

TransUnion is a Chicago-based provider of information management and risk management services.

Coveris updates emerge

Coveris Holdings finalized its add-on term loan due May 2019 at €75 million, the high end of the €50 million to €75 million talk, and revised the issue price to par from 99.75, according to a market source.

Additionally, the spread on the add-on term loan and on the repricing of the company’s U.S. dollar and euro senior secured term loan debt due May 2019 firmed at Libor/Euribor plus 350 bps, the low end of the Libor/Euribor plus 350 bps to 375 bps talk, the source said.

All of the term loans still have a 1% floor and 101 soft call protection for six months, and the repriced loans are still offered at par.

Prior to this transaction, the company’s debt was split between a $429.6 million tranche priced at Libor plus 425 bps with a 1% Libor floor and a $187.9 million-equivalent euro term loan priced at Euribor plus 475 bps with a 1% floor. However, in connection with the repricing, which is expected to close this month, the add-on euro term loan will be used to repay a portion of the U.S. dollar-denominated term loan so that it will total $348.2 million.

Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the covenant-light term loans.

Coveris is a Chicago-based manufacturer of packaging solutions and coated film technologies.

CommScope discloses talk

Also in the primary, CommScope released talk of Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $1.25 billion incremental seven-year covenant-light term loan B (BB) that launched during the session, according to a market source.

Commitments are due on May 28, the source said.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the loan that will be used with $1.5 billion of senior unsecured notes, $500 million of senior secured notes and cash on hand to fund the acquisition of TE Connectivity’s Telecom, Enterprise and Wireless businesses in an all-cash transaction valued at about $3 billion.

Closing is expected by year-end, subject to financing, regulatory approvals and other customary conditions.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

Dollar Tree readies call

Dollar Tree set a lender call for Tuesday to launch a repricing of $3.45 billion of its $3.95 billion term loan B and a $500 million fixed-rate carve-out from the loan, according to a market source.

Talk on the $3.45 billion term loan B is Libor plus 275 bps with a 0.75% Libor floor, an issue price of 99.75 to par and 101 soft call protection for one year, and talk on the fixed-rate term loan is 4.25% with call protection of non-callable for one year, then at 102 in year two and 101 in year three, the source said.

By comparison, the company’s current $3.95 billion term loan B is priced at Libor plus 350 bps with a 0.75% Libor floor.

Commitments are due on June 2, the source added.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal for the Chesapeake, Va.-based discount store operator.

SterlingBackcheck on deck

SterlingBackcheck scheduled a bank meeting for May 28 to launch a $510 million credit facility, a market source said.

The facility consists of a $60 million five-year revolver (B1), a $315 million seven-year first-lien covenant-light tem loan (B1) and a $135 million eight-year second-lien covenant-light term loan (Caa1), the source continued.

Goldman Sachs Bank USA, Nomura and KeyBanc Capital Markets are leading the deal that will be used to help fund the buyout of the company by Broad Street Principal Investments from Calera Capital.

SterlingBackcheck, formerly Sterling Infosystems, is a New York-based company focused on background checks.

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