TierPoint breaks; Royalty Pharma guidance surfaces; primary calendar continues to build

By Sara Rosenberg

New York, Dec. 1 – TierPoint’s credit facility freed up for trading during Monday’s market hours with both the first- and second-lien term loan quoted above their original issue discounts.

Moving to the primary, Royalty Pharma released price talk on its term loan B-4 with launch, and Proserv Group Inc., Impax Laboratories Inc., Sage Products Holdings III LLC, Oasis Outsourcing, CRGT Inc., Accuvant and Spectrum Brands Inc. and Multi Packaging Solutions joined this week’s calendar.

TierPoint starts trading

TierPoint’s credit facility emerged in the secondary on Monday morning with the $330 million seven-year first-lien term loan (B2/B+) seen at 99¾ bid, par ¼ offered and the $90 million eight-year second-lien term loan (Caa2/CCC+) seen at 99½ bid, par ½ offered, according to a trader.

The first-lien term loan is priced at Libor plus 425 basis points with a 1% Libor floor and was issued at a discount of 99. There is 101 soft call protection for one year.

Pricing on the second-lien term loan is Libor plus 775 bps with a 1% Libor floor and it was sold at an original issue discount of 99. This debt has hard call protection of 102 in year one and 101 in year two.

Recently, the first-lien term loan was upsized from $320 million, the spread was cut from Libor plus 450 bps and the call protection was extended from six months, and the second-lien term loan was downsized from $100 million while pricing was trimmed from Libor plus 800 bps.

The company’s $465 million credit facility also includes a $45 million revolver that was upsized from $40 million.

TierPoint buying Xand

Proceeds from TierPoint’s credit facility will be used to help fund the acquisition of Xand from ABRY Partners.

RBC Capital Markets LLC and Credit Suisse Securities (USA) LLC are leading the deal.

The company will also use incremental equity from its existing investors, which includes Cequel III management led by chairman Jerry Kent, RedBird Capital Partners, Stephens Group, Jordan/Zalaznick Advisers Inc. and Thompson Street Capital Partners, as well as a new investor, Ontario Teachers’ Pension Plan, for the acquisition.

TierPoint is a St. Louis-based provider of cloud, colocation and managed services. Xand is a Hawthorne, N.Y.-based provider of data center, cloud and managed services.

Royalty Pharma discloses talk

Over in the primary, Royalty Pharma held its bank meeting to launch its $1.5 billion term loan B-4 (Baa2) with talk of Libor plus 300 bps to 325 bps with a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year, according to a market source.

Bank of America Merrill Lynch, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to repay short-term debt that was used to fund the $3.3 billion acquisition of royalties on Vertex Pharmaceuticals’ cystic fibrosis treatments owned by Cystic Fibrosis Foundation Therapeutics.

Royalty Pharma is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

Proserv sets meeting

Proserv Group will hold a bank meeting at 1:30 p.m. ET on Tuesday to launch a $540 million credit facility that consists of a $60 million revolver, a $365 million first-lien term loan and a $115 million second-lien term loan, according to a market source.

Goldman Sachs Bank USA, UBS AG, HSBC Securities (USA) Inc. and BNP Paribas Securities Corp. are leading the deal, with Goldman left on the first-lien and UBS left on the second-lien.

Proceeds will be used to help fund the buyout of the Aberdeen, Scotland-based energy services company by Riverstone Holdings LLC from Intervale Capital, Weatherford International and certain minority shareholders.

Closing is expected this month, subject to certain regulatory approvals.

Impax readies launch

Impax Laboratories set a bank meeting for Tuesday to launch its $435 million senior secured term loan, according to a market source, who said the company’s $485 million credit facility also includes a $50 million revolver.

Barclays, RBC Capital Markets and Wells Fargo Securities LLC are leading the deal.

Proceeds, along with cash on hand, will fund the $700 million acquisition of Tower Holdings Inc., including operating subsidiaries CorePharma LLC and Amedra Pharmaceuticals LLC, and Lineage Therapeutics Inc.

Impax is a Hayward, Calif., technology-based specialty pharmaceutical company. Tower Holdings and Lineage develop, manufacture and commercialize complex generic and branded pharmaceutical products.

Sage to seek loans

Sage Products intends to hold a bank meeting at 10 a.m. ET on Wednesday to launch $380 million of fungible incremental term loans, according to a market source.

The debt is comprised of a $315 million incremental first-lien term loan and a $65 million incremental second-lien term loan, the source said.

Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to fund a shareholder distribution and pay related fees and expenses.

Sage Products is a Cary, Ill.-based developer of products primarily for hospital intensive care units, which help prevent hospital-acquired conditions.

Oasis timing revealed

Oasis Outsourcing scheduled a bank meeting for Thursday to launch its previously announced $270 million credit facility, a market source said.

The facility consists of a $50 million five-year revolver, a $160 million seven-year first-lien term loan and a $60 million eight-year second-lien term loan.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Stone Point Capital and management from Nautic Partners and Altaris Capital Partners.

Closing is expected by year-end, subject to customary conditions.

Oasis is a provider of outsourced human resource services.

CRGT joins calendar

CRGT emerged with plans to hold a bank meeting at 3 p.m. ET in New York on Tuesday to launch a $115 million credit facility, according to a market source.

The facility consists of a $15 million revolver, and a $100 million six-year first-lien term loan that is talked with 101 soft call protection for one year, the source said.

Commitments are due on Dec. 15.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the buyout of the company by Bridge Growth Partners LLC from Veritas Capital, which is expected to close by year-end. Veritas will continue to hold a minority stake in CRGT following the close of the transaction.

As part of the transaction, GoldPoint Partners provided mezzanine debt and an equity co-investment.

CRGT is a Reston, Va.-based provider of custom software development and data analytics to federal government agencies.

Accuvant on deck

Accuvant will hold a bank meeting on Tuesday to launch $425 million of term loans, split between a $300 million first-lien term loan and a $125 million second-lien term loan, a market source said.

Goldman Sachs Bank USA and Societe Generale are leading the deal that will be used to help fund the merger of Denver, Colo.-based Accuvant and Overland Park, Kan.-based FishNet Security, two providers of information security services.

Blackstone private equity funds will maintain majority ownership in the combined company and current investors of both organizations, including existing management, Sverica International and Investcorp, are maintaining minority equity interests in the combined company.

Closing is expected in the first quarter of 2015, subject to regulatory approvals.

Spectrum coming soon

Spectrum Brands scheduled a conference call for 11 a.m. ET on Tuesday to launch a €150 million seven-year covenant-light term loan B (Ba3/BB) that is talked with a 0.75% floor and 101 soft call protection for six months, a market source remarked. Spread and original issue discount talk are not yet available.

Commitments are due at 5 p.m. ET on Dec. 10, the source added.

Deutsche Bank Securities Inc. and Credit Suisse are leading the deal that will be used with $250 million of senior notes to repay revolver borrowings, to fund a planned acquisition and for general corporate purposes.

Spectrum Brands is a Madison, Wis.-based diversified consumer products company.

Multi Packaging plans call

Multi Packaging Solutions set a conference call for 10 a.m. ET on Wednesday to launch a £143.6 million term loan B due September 2020 talked at Libor plus 425 bps to 450 bps and a €170.9 million term loan B due September 2020 talked at Euribor plus 375 bps to 400 bps, according to a market source.

Both loans have a 1% floor, a par offer price and 101 soft call protection for six months, the source said.

Commitments are due on Dec. 9.

Credit Suisse is leading the deal that will be used to refinance an existing pound sterling term loan priced at Libor plus 500 bps with a 1% Libor floor and a euro term loan B priced at Euribor plus 450 bps with a 1% floor.

Multi Packaging is a New York-based provider of value-added packaging services.

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