Dell, Extended Stay, Jeld-Wen break; KAR, UFC set changes; B&G, Autodata, Virtu accelerated

By Sara Rosenberg

New York, Sept. 12 – Dell Technologies’ term loan B made its way into the secondary market on Thursday and was trading above its original issue discount, and deals from Extended Stay America Inc. (ESH Hospitality Inc.) and Jeld-Wen Inc. freed up as well.

Moving to the primary market, KAR Auction Services Inc. lowered the spread on its term loan B, and UFC tightened the issue price on its add-on first-lien term loan B.

Also, B&G Foods Inc., Autodata Group and Virtu Financial LLC (VFH Parent LLC) moved up the commitment deadlines for their term loans.

Furthermore, ZelisRedCard, Sotheby’s, Merrill Corp. and MeridianLink released price talk with launch, and Monotype Imaging Holdings Inc. joined the near-term primary calendar.

Dell hits secondary

Dell Technologies’ $4.75 billion term loan B (Baa3/BBB-/BBB-) due September 2025 began trading on Thursday, with levels quoted at par 3/8 bid, par 5/8 offered, according to a market source.

Pricing on the term loan is Libor plus 200 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

On Wednesday, the term loan was upsized from $4 billion, pricing firmed at the low end of the Libor plus 200 bps to 225 bps talk and the discount was tightened from 99.75.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal that will be used with balance sheet cash to refinance an existing term loan B due 2023.

The amount of cash being used for the refinancing was reduced to $162.5 million from $912.5 million with the recent term loan upsizing.

Dell Technologies is a Round Rock, Tex.-based technology company.

Extended Stay breaks

Extended Stay’s $631 million seven-year covenant-lite term loan B (Ba2/BB+) emerged in the secondary too, with levels quoted at par bid, par ˝ offered, a market source said.

Pricing on the term loan is Libor plus 200 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the discount on the loan was modified from 99.5.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are leading the deal that will amend and extend $631 million of the company’s existing term loan B due 2023. The remaining $500 million term B balance will be repaid with proceeds from a senior note offering.

The notes were upsized recently to $750 million from $500 million and the extra bond proceeds raised will be used for general corporate purposes.

Closing is expected on Wednesday.

Extended Stay is a Charlotte, N.C.-based owner and operator of company-branded hotels.

Jeld-Wen frees to trade

Jeld-Wen’s fungible $125 million add-on covenant-lite term loan B due Dec. 14, 2024 also broke, with levels seen at par bid, par ˝ offered, a market source remarked.

Pricing on the add-on term loan is Libor plus 200 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

On Wednesday, the add-on term loan was upsized from $100 million and the discount was revised from talk in the range of 99 to 99.25.

Wells Fargo Securities LLC and BofA Securities, Inc. are leading the deal. BofA is the administrative agent.

Proceeds will be used to repay existing debt, including revolver borrowings.

The company’s existing term loan B due Dec. 14, 2024 is sized at $433 million.

Jeld-Wen is a Charlotte, N.C.-based door and window manufacturer.

KAR flexes

Switching to the primary market, KAR Auction Services trimmed pricing on its $950 million seven-year term loan B (Ba2/BB-) to Libor plus 225 bps from talk in the range of Libor plus 250 bps to 275 bps, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

J.P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, Fifth Third Bank and U.S. Bank are leading the deal.

The new loan will be used to refinance existing bank debt and add cash to the balance sheet.

KAR is a Carmel, Ind.-based provider of technology-driven remarketing solutions to the wholesale used vehicle industry.

UFC tweaks loan

UFC adjusted the issue price on its fungible $465 million add-on first-lien term loan B (B2/B) due April 2026 to par from talk in the range of 99.5 to 99.75, a market source said.

The add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor, in line with the existing $1.869 billion first-lien term loan B, and all of the debt is getting 101 soft call protection for six months.

Recommitments were due by the close of business on Thursday, the source added.

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to redeem outstanding preferred equity.

UFC is a Las Vegas-based mixed martial arts organization and pay-per-view event provider.

B&G revises timing

B&G Foods accelerated the commitment deadline for its $450 million seven-year covenant-lite term loan B (Ba2/BB) to 5 p.m. ET on Friday from noon ET on Tuesday, according to a market source.

Talk on the term loan is Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Barclays is the left lead on the loan that will be used with $450 million of senior unsecured notes to refinance the company’s existing $700 million of 4 5/8% senior notes due 2021, to pay down revolver borrowings and to pay related fees and expenses.

Closing is expected on Oct. 11.

In order to allow for the prepayment of the senior notes, a majority consent is required from existing revolver lenders plus new term loan B lenders. In addition, the definition of specified change of control is being modified to delete the continuing director clause.

Pro forma for the transaction, net secured debt is 1.5x and net total debt is 5.9x.

B&G Foods is a Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable food, frozen food and household products.

Autodata accelerated

Autodata moved up the commitment deadline for its fungible $755 million incremental first-lien term loan (//BB-) due May 2026 to noon ET on Monday from noon ET on Tuesday, a market source remarked.

The term loan is talked with an original issue discount of 98.5.

Pricing on the incremental term loan is Libor plus 350 bps with a 0% Libor floor, and the debt is getting 101 soft call protection for six months.

The company is also getting a fungible $265 million privately placed incremental second-lien term loan due May 2027.

RBC Capital Markets, KKR Capital Markets, SunTrust Robinson Humphrey Inc. and UBS Investment Bank are leading the deal, which will be used to fund a business combination.

Pro forma for the transaction, the first-lien term loan will total $1.155 billion and the second-lien term loan will total $415 million.

Autodata, a Thoma Bravo LLC portfolio company, is a London, Ont.-based provider of data, technology platforms and services to the automotive industry.

Virtu moves deadline

Virtu accelerated the commitment deadline for its fungible $525 million incremental senior secured first-lien term loan (//BB-) due March 1, 2026 to 2 p.m. ET on Friday from 2 p.m. ET on Tuesday, according to a market source.

Amendment consents remain due at noon ET on Friday, the source said.

Pricing on the incremental term loan is Libor plus 350 bps with a 0% Libor floor, in line with existing term loan pricing, and it is talked with an original issue discount of 99.5. The term loan debt has 101 soft call protection that expires March 2020.

Jefferies LLC is leading the deal that will be used to redeem second-lien notes due 2022.

Virtu is a New York-based financial services firm that leverages cutting edge technology to deliver liquidity to the markets and innovative, transparent trading solutions.

ZelisRedCard reveals talk

Also in the primary market, ZelisRedCard held its lenders’ presentation on Thursday morning and disclosed talk on its $1.5 billion seven-year covenant-lite first-lien term loan B at Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $1.65 billion of senior secured credit facilities (B2/B) also include a $150 million five-year revolver.

Commitments are due at noon ET on Sept. 26, the source said.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., UBS Investment Bank, Antares Capital, Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Jefferies LLC and Goldman Sachs Bank USA are leading the deal that will be used to support the merger of Zelis Healthcare Corp. and RedCard Holdings LLC under pro forma ownership of Bain Capital, Parthenon Capital and existing shareholders.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Zelis is a Bedminster, N.J.-based provider of integrated health care cost management and payments solutions. RedCard is a St. Louis-based provider of health care payments and communications optimization.

Sotheby’s sets guidance

Sotheby’s came out with talk of Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $550 million term loan B due January 2027 that launched with a bank meeting during the session, a market source said.

The company’s $950 million of credit facilities also include a $400 million revolver.

Commitments are due on Sept. 20, the source added.

BNP Paribas Securities Corp. and Goldman Sachs Bank USA are leading the deal that will be used with $550 million of other secured debt to help fund the acquisition of Sotheby’s by BidFair USA for $57 in cash per share of common stock in a transaction with an enterprise value of $3.7 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including regulatory clearance and shareholder approvals. The transaction is not subject to the availability of financing.

Sotheby’s is a New York-based auction house.

Merrill proposed terms

Merrill had its bank meeting in the afternoon, launching its $400 million seven-year first-lien term loan (B2/B) at talk of Libor plus 500 bps to 525 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Sept. 25, the source said.

Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance an existing term loan B and fund a dividend to shareholders.

Merrill is a St. Paul, Minn., SaaS-based provider of secure collaboration solutions for professionals.

MeridianLink launches

MeridianLink announced with its lender call original issue discount talk of 99 on its fungible $60 million incremental first-lien term loan, a market source remarked.

The term loan is priced at Libor plus 400 bps with a 1% Libor floor.

Commitments are due on Sept. 19, the source added.

Antares Capital and Golub Capital are leading the deal.

The company’s existing first-lien term loan is sized at about $352 million.

MeridianLink, a Thoma Bravo LLC portfolio company, is a Costa Mesa, Calif.-based provider of SaaS-based solutions to financial institutions that simplify loan decisioning, deposit/loan originations and workflow challenges.

Monotype on deck

Monotype Imaging set a bank meeting for 10 a.m. ET in New York on Tuesday to launch its previously announced $440 million seven-year covenant-lite first-lien term loan (B2/B-), according to a market source.

The company is also getting a $135 million second-lien term loan that was privately placed, and based on filings with the Securities and Exchange Commission, the new credit facilities are expected to include a $50 million revolver (B2/B-) as well.

Deutsche Bank Securities Inc., Antares Capital, Macquarie Capital and BNP Paribas Securities Corp. are leading the deal that will be used with $275 million of equity to fund the buyout of the company by HGGC for $19.85 per share in cash, representing an aggregate equity value of about $825 million.

Closing is subject to Monotype shareholder approval, regulatory approvals and other customary conditions.

Monotype is a Woburn, Mass.-based provider of type related software solutions and technologies.

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