SS&C Technologies, Six Flags, Emerging Markets, First Advantage, Confie Seguros break

By Sara Rosenberg

New York, June 29 – SS&C Technologies Inc. downsized its term loan B debt, added a pricing step-down, removed the MFN sunset provision, upsized its term loan A debt and then broke for trading on Monday.

Other deals to free up during the session included Six Flags Entertainment Corp., Emerging Markets Communications LLC and First Advantage (STG-Fairway Acquisitions Inc.).

In addition, Confie Seguros set original issue discounts on its add-on term loans at the tight end of guidance and then it too made its way into the secondary market, and Hamilton Lane Advisors LLC moved up the commitment deadline on its term loan.

SS&C tweaks deal

SS&C Technologies downsized its seven-year covenant-light term loan B-2 at SS&C Technologies Holdings Europe Sarl to $410 million from $460 million and added a step-down to Libor plus 300 basis points at 4 times net total leverage to the tranche as well as to its $1.82 billion seven-year covenant-light term loan B-1 at SS&C Technologies, according to a market source.

Initial pricing on the term loan B’s, which were sold as a strip, remained at Libor plus 325 bps with a 0.75% Libor floor and an original issue discount of 99.5.

The company’s $2.63 billion senior secured credit facility (Ba3/BB) also includes a $150 million five-year revolver, a $100 million five-year term loan A-1 at SS&C European Holdings Sarl, upsized from $40 million and a $150 million five-year term loan A-2 at SS&C Technologies Holdings Europe Sarl, downsized from $160 million.

The term loan A’s, which were also sold as a strip, are priced at Libor plus 275 bps with no floor and an original issue discount of 99.75.

Along with the pricing update on the B loans, the company removed the MFN sunset provision on all tranches, the source continued.

SS&C starts trading

Commitments for SS&C Technologies’ credit facility were due at 1:30 p.m. ET on Monday, accelerated from noon ET on Tuesday, and late in the day, the debt made its way into the secondary market, with the term loan B-1 and B-2 debt quoted at 99 7/8 bid, 100 3/8 offered, the source added.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Barclays are leading the credit facility that will be used with funds from a common stock offering and $600 million of senior notes, upsized from $500 million, to finance the acquisition of Advent Software Inc., to refinance existing debt at both companies and for general corporate purposes.

Advent is being bought for about $2.7 billion in cash, equating to $44.25 per share plus the assumption of debt.

Closing is expected during the week of July 6.

SS&C is a Windsor, Conn.-based provider of financial services software and software-enabled services. Advent is a San Francisco-based provider of software and services for the investment management industry.

Six Flags frees up

Six Flags’ $700 million seven-year term loan B (Ba2/BBB-) broke as well, with levels seen at 100 1/8 bid, 100 5/8 offered, a trader said.

Pricing on the term loan is Libor plus 275 bps with a step-down to Libor plus 250 bps when leverage is below 3 times and a 0.75% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the step-down was added and the discount was tightened from 99.5.

The company’s $950 million credit facility (Ba2/BBB-) also includes a $250 million revolver.

Wells Fargo Securities LLC is leading the deal that will be used to refinance an existing senior secured credit facility that includes a $200 million revolver and a roughly $570 million term loan B, and for general corporate purposes, including share repurchases.

Six Flags is a Grand Prairie, Texas-based regional theme park company.

Emerging Markets tops OIDs

Another deal to emerge in the secondary market was Emerging Markets Communications, with its $268 million six-year first-lien term loan B (B1/B+) and its $92 million seven-year second-lien term loan (Caa1/CCC+) both quoted at 98¾ bid, 99½ offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 575 bps with a 1% Libor floor, and it was sold at an original issue discount of 98.5. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 962.5 bps with a 1% Libor floor, and was issued at 98.5. This tranche has hard call protection of 102 in year one and 101 in year two.

The company’s $400 million credit facility also includes a $40 million revolver (B1/B+).

Morgan Stanley Senior Funding, Citizens Bank and Macquarie Capital (USA) Inc. are leading the deal.

Emerging Markets buying MTN

Proceeds from Emerging Markets Communications will be used to fund the acquisition of MTN Communications, a Miramar, Fla.-based provider of communications and content for remote locations, and to refinance existing debt.

During syndication, pricing on the first-lien term loan was increased from talk of Libor plus 425 bps to 450 bps, the discount widened from 99, the call protection was extended from six months and the maturity was shortened from seven years.

Also, during syndication, pricing on the second-lien loan was raised from talk of Libor plus 800 bps to 825 bps, the discount was tightened from revised talk of 98 but ended up in line with initial talk of 98.5, the call protection was sweetened to 103 in year one, 102 in year two and 101 in year three before returning to the originally proposed 102 in year one and 101 in year two protection, and the maturity was shortened from eight years.

Closing is subject to regulatory review and other customary conditions.

Emerging Markets is a Miami-based provider of hybrid global satellite and terrestrial communications.

First Advantage hits secondary

First Advantage’s $485 million seven-year covenant-light first-lien term loan (B2/B+) also began trading, with levels quoted at 98¾ bid, 99½ offered, according to a trader.

Pricing on the term loan is Libor plus 525 bps with a 1% Libor floor, and it was issued at a discount of 98.5. The debt has 101 soft call protection for one year.

Last week, the spread on the loan was increased from Libor plus 475 bps and the discount widened from 99.

Bank of America Merrill Lynch is leading the deal that will be used with a new second-lien facility to refinance existing debt and fund a dividend to shareholders.

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

Confie firms OIDs, breaks

Confie Seguros finalized the original issue discount on its $115 million add-on first-lien term loan at 99.5, the tight end of the 99 to 99.5 talk, a market source said. This tranche is priced at Libor plus 450 bps with a 1.25% Libor floor.

As for the $80 million add-on second-lien term loan, the discount firmed at 99, the tight end of the 98.5 to 99 talk, the source continued. Pricing on the loan is Libor plus 900 bps with a 1.25% Libor floor.

With final terms in place, the new debt freed up for trading with the add-on first-lien loan quoted at par bid, 100½ offered and the add-on second-lien was quoted at 99½ bid, a trader added.

Pro forma for the transaction, the company’s first-lien debt will total $554.4 million, and its second-lien debt will total $261.4 million.

RBC Capital Markets is leading the $195 million in fungible add-on term loans that will be used for merger and acquisition financing.

Confie Seguros is a Buena Park, Calif.-based personal lines insurance broker.

Hamilton Lane accelerated

In more happenings, Hamilton Lane Advisors revised the commitment deadline on its $260 million seven-year senior secured term loan B to 4 p.m. ET on Wednesday from July 7, according to a market source.

The loan is talked at of Libor plus 350 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the buyback of equity interests, to refinance existing debt, to fund a distribution to equity holders and for general corporate purposes.

Hamilton Lane is a financial institution that provides discretionary and non-discretionary private equity asset management services.

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