Catalent breaks; Hudson’s Bay weakens; Tibco, C&J, Packers, Global Cash, Equinox revised

By Sara Rosenberg

New York, Nov. 24 – Catalent Pharma Solutions Inc.’s add-on term loan hit the secondary market on Monday with the U.S. tranche quoted above its original issue discount, and Hudson’s Bay Co.’s first-lien term loan was softer on paydown news.

Moving to the primary, Tibco Software Inc. lifted sizes on its term loan B and asset-sale bridge loan, widened the spread and original issue discount on the B tranche and firmed the discount on the asset-sale tranche at the low end of talk.

Also, C&J Energy Services Inc. restructured its deal to get a single term loan B tranche, and Packers Holdings LLC (PSSI) lowered pricing on its term loan B, added a step-down and set the offer price at the tight end of guidance.

In addition, Global Cash Access Inc. increased pricing on its term loan B, modified the original issue discount, shortened the maturity and added a covenant, Equinox Holdings Inc. lifted the spread on its add-on term loan, removed a step-down and extended the call protection, and Terra-Gen Finance Co. LLC moved up the commitment deadline on its loan.

Furthermore, First Advantage and Distribution International Inc. came out with talk with launch, Siemens Audiology Systems (Auris Luxembourg III Sarl) and Eye-Mart joined the near-term calendar, and timing emerged on New Media Investment Group Inc.’s incremental term loan and TASC Inc.’s incremental debt.

Catalent frees up

Catalent Pharma Solutions’ fungible add-on term loan B due May 19, 2021 began trading on Monday, with the $100 million U.S. tranche quoted at 99 7/8 bid, par 3/8 offered, according to a trader.

Pricing on the U.S. tranche is Libor plus 325 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99½. There is 101 soft call protection until May 19, 2015.

The company’s $190 million equivalent add-on term loan B also includes a €72.75 million tranche priced at Euribor plus 325 bps with a 1% floor and sold at discount of 99¾. This piece has 101 soft call protection until May 19, 2015 as well.

During syndication, the total add-on loan size was increased from $180 million equivalent, the original issue discount on the U.S. tranche firmed at the tight end of the 99 to 99½ talk, and the discount on the euro tranche tightened from talk of 99 to 99½.

Catalent refinancing

Proceeds from Catalent’s add-on term loan will be used to repay existing revolver borrowings and senior unsecured term loan debt.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Jefferies Finance LLC and Deutsche Bank Securities Inc. are leading the deal.

Catalent is a Somerset, N.J.-based provider of advanced technologies and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer health care companies.

Hudson’s Bay dips

Also in trading, Hudson’s Bay’s first-lien term loan dropped to par 1/8 bid, par 5/8 offered from par ¾ bid, 101 offered after news surfaced that about $1.2 billion of the tranche will be repaid with proceeds from a $1.25 billion 20-year mortgage on the ground portion of the company’s Saks Fifth Avenue flagship in New York City, according to a trader.

The mortgage loan is expected to have a fixed interest rate of less than 4.4%, versus pricing of Libor plus 475 bps on the term loan, and, pro forma for the transaction, the weighted-average term to maturity of the company’s funded debt is 11.5 years, compared to 5.3 years previously, the company said in a news release.

Closing is expected in early December.

Hudson’s Bay is an Ontario-based operator of department stores.

Tibco sets revisions

Over in the primary, Tibco Software raised its six-year covenant-light first-lien term loan B to $1.67 billion from $1.65 billion, lifted pricing to Libor plus 550 bps from Libor plus 450 bps, moved the original issue discount to 95 from talk of 98½ to 99 and extended the 101 soft call protection to one year from six months, according to a market source, who said the 1% Libor floor was unchanged.

Additionally, the one-year asset-sale bridge loan was upsized to $350 million from $300 million and the discount firmed at 99½, the tight end of the 99 to 99½ talk, while pricing remained at Libor plus 450 bps with a 1% Libor floor, the source said.

Other changes included removing the 12 month MFN sunset provision, decreasing the incremental allowance, increasing the excess cash flow sweep, reducing the junior debt buyback amount, reworking the incurred or assumed ratio test for permitted acquisitions, and updating terms for EBITDA, the reporting period and the asset sale of non-credit party guarantors.

The company’s now $2,145,000,000 secured credit facility also includes a $125 million five-year revolver.

Tibco funding buyout

Proceeds from Tibco’s credit facility, $950 million of senior unsecured notes, $543 million of cash from the balance sheet and $1,614,000,000 of equity will be used to fund its buyout by Vista Equity Partners for $24.00 per share in cash, or a total of about $4.3 billion, including the assumption of net debt.

J.P. Morgan Securities LLC, Jefferies Finance LLC, Apollo and MCS Capital are leading the deal.

First-lien leverage is 4.4 times and total leverage is 6.9 times.

Closing is expected in the fourth quarter, subject to approval by Tibco stockholders, regulatory approvals and other customary conditions.

Tibco is a Palo Alto, Calif.-based infrastructure and business intelligence software company.

C&J reworks deal

C&J Energy changed its financing plans to a $650 million five-year senior secured term loan B talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, according to a market source.

The single term loan B replaces previous plans to get a $300 million five-year term loan B-1 talked at Libor plus 350 bps to 375 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and a $375 million seven-year covenant-light term loan B-2 talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months.

The company’s now $1.25 billion credit facility also includes a $600 million revolver.

Commitments were due at 5 p.m. ET on Monday, the source said.

C&J lead banks

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading C&J Energy’s credit facility, with Bank of America the administrative agent.

Proceeds will be used to fund the company’s combination with Nabors Industries Ltd.’s completion and production services business, for which Nabors will receive total consideration comprised of a fixed 62.5 million common shares in the merged company and about $938 million in cash.

Closing is expected in the fourth quarter, subject to stockholder approval and customary conditions.

C&J is a Houston-based provider of hydraulic fracturing, coiled tubing, cased-hole wireline, pumpdown and other oilfield services.

Packers changes emerge

Packers Holdings trimmed pricing on its $355 million seven-year first-lien term loan B to Libor plus 400 bps from talk of Libor plus 425 bps to 450 bps, added a step-down to Libor plus 375 bps at 4.25 times net leverage and finalized the original issue discount at 99½, the tight end of the 99 to 99½ talk, a market source said.

As before, the B loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s $385 million senior credit facility (B2/B) also includes a $50 million revolver.

Recommitments were due by the end of the day on Monday, the source added.

Morgan Stanley Senior Funding Inc. and GE Capital Markets are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners LP from Harvest Partners LP.

Packers Holdings is a Kieler, Wis.-based contract sanitation service provider.

Global Cash tweaks loan

Global Cash Access widened pricing on its $800 million term loan B to Libor plus 525 bps from Libor plus 475 bps, changed the original issue discount to 98½ from 99, shortened the maturity to six years from seven years and added a secured leverage covenant to the initially covenant-light tranche, a source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $850 million senior secured credit facility (B1/B+) also includes a $50 million five-year revolver.

Recommitments are due at noon ET on Tuesday, the source added.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal.

Global Cash buying Multimedia

Proceeds from Global Cash’s credit facility and an expected $400 million senior unsecured notes offering will be used to fund the acquisition of Multimedia Games Holding Co. Inc. for $36.50 per share, for an aggregate purchase price of about $1.2 billion in cash.

Total leverage will be around 5.5 times.

Closing is expected in early 2015, subject to customary conditions, including receipt of Multimedia Games shareholder approval and antitrust and gaming regulatory approvals.

Global Cash is a Las Vegas-based provider of fully integrated cash access and related services to the gaming industry. Multimedia Games is an Austin, Texas-based developer and distributor of gaming technology.

Equinox modified

Equinox increased pricing on its $150 million add-on term loan B (B1/B) to Libor plus 375 bps from Libor plus 350 bps, eliminated a 25 bps step-down at less than 3.75 times leverage and pushed out the 101 soft call protection to one year from six months, a market source said.

As before, the loan has a 1.25% Libor floor and an original issue discount of 99.

Recommitments were due on Monday, the source added.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal that will be used for general corporate purposes, including a dividend payment.

Along with the add-on, the New York-based exercise and fitness company is amending its existing B loan and lenders are being offered a 25 bps consent fee.

Terra-Gen moves deadline

Terra-Gen Finance accelerated the commitment deadline on its $300 million seven-year term loan B (Ba3/BB-) to 5 p.m. ET on Tuesday from Dec. 3, a market source remarked.

The term loan is talked at Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and soft call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt and fund a distribution to equity owners.

Terra-Gen is a New York-based renewable energy company that owns 653 MW of generating capacity across 21 projects.

First Advantage discloses talk

In more primary happenings, First Advantage held its call on Monday, launching its $485 million seven-year covenant-light first-lien term loan with talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Also, the company’s $170 million eight-year covenant-light second-lien term loan was launched at Libor plus 850 bps to 875 bps with a 1% Libor floor, a discount of 98, and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the $655 million in term loans that will be used to refinance existing debt and fund a dividend.

First Advantage is a St. Petersburg, Fla.-based provider of talent acquisition services, including background screening, recruiting, skills assessment and skills-related tax services.

Distribution International guidance

Distribution International came out with talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $215.5 million seven-year covenant-light term loan B (B3/B) that launched with a bank meeting on Monday, a market source said.

Commitments are due on Dec. 10, the source added.

Bank of America Merrill Lynch, RBC Capital Markets LLC and BMO Capital Markets Corp. are leading the deal that will be used to help fund the buyout of the company by Advent International Inc. from Audax Private Equity.

Distribution International is a Houston-based distributor of insulation, related specialty fabricated products, and safety supplies.

Siemens Audiology on deck

Siemens Audiology Systems scheduled a bank meeting in London for Dec. 3 to launch a €745 million equivalent U.S. and euro seven-year covenant-light term loan B that is talked with a 1% floor and 101 soft call protection for six months, according to a market source. Spread and original issue discount talk are still to be determined.

Commitments are due on Dec. 12, the source said.

Deutsche Bank Securities Inc. (left on the euro), Goldman Sachs Bank USA (left on the U.S.) and UBS AG are the physical bookrunners on the deal, with UniCredit a joint bookrunner.

Proceeds will be used to help fund the buyout of the Singapore-based manufacturer and wholesaler of hearing aid devices by EQT VI and Santo Holding from Siemens AG.

Eye-Mart readies deal

Eye-Mart set a bank meeting for Dec. 2 to launch a $330 million credit facility, according to a market source.

The facility consists of a $30 million five-year revolver and a $300 million seven-year term loan B, the source said.

Wells Fargo Securities LLC is leading the deal that will be used with about $390 million in equity to fund the buyout of the company by Friedman Fleischer & Lowe LLC.

Eye-Mart is an eyewear company.

New Media sets meeting

New Media Investment emerged with plans to hold a bank meeting on Dec. 2 to launch its incremental term loan, according to a market source. Previously, timing on the deal was described as December business.

The loan has been rumored to be sized at roughly $170 million, however, an exact deal size has not yet been announced.

Citizens Financial Group is leading the deal that will be used with cash on the balance sheet to fund the $280 million acquisition of Halifax Media Group.

Closing is expected in the first quarter of 2015, subject to customary conditions.

New Media is a New York-based publisher of locally based print and online media. Halifax Media is a Daytona Beach, Fla.-based newspaper publisher.

TASC coming soon

TASC set a bank meeting for 10 a.m. ET on Dec. 3 to launch $645 million in incremental bank debt, according to a market source.

The debt consists of a $60 million incremental revolver due May 23, 2019 talked at Libor plus 550 bps, a $435 million incremental first-lien term loan due May 23, 2020 talked at Libor plus 550 bps with a 1% Libor floor and a $150 million incremental second-lien term loan due May 23, 2021 talked at a fixed-rate of 12%, the source said.

Barclays and Jefferies Finance LLC are leading the deal, with Barclays the left lead on the first-lien and Jefferies the left lead on the second-lien.

TASC being acquired

Proceeds from TASC’s bank debt will be used to repay existing debt at Engility Holdings Inc. and fund a cash dividend to Engility shareholders in conjunction with Engility’s acquisition of TASC.

Net first-lien leverage is 2.9 times and net total leverage is 4.4 times, the source added.

Closing is expected in the first quarter of 2015, subject to approval of stockholders of both Engility and TASC, consummation of the contemplated financing, regulatory approvals including clearance under the Hart-Scott-Rodino Antitrust Improvement Act of 1976 and other customary conditions.

TASC is a Chantilly, Va.-based professional services provider to the national security and public safety markets. Engility is a Chantilly, Va.-based pure-play government services contractor.

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