Curo breaks; SIG Combibloc, Exact Holding, IPC, CSP Technologies emerge with deal changes

By Sara Rosenberg

New York, Feb. 2 – Curo Health Services’ credit facility made its way into the secondary market on Monday with the first-lien term loan quoted above its original issue discount.

Meanwhile, the primary market saw a few deals undergo some changes, including SIG Combibloc Group AG, which came out with an upsizing to its term loan, a tightening to the spread and offer price, and updates to the call protection and ticking fee.

Also, Exact Holding NV increased pricing, modified original issue discounts and sweetened call premiums on its first- and second-lien term loans, IPC Corp. shifted some funds between its first- and second-lien term loans, and CSP Technologies North America LLC widened the spread and original issue discount on its term loan.

Curo frees up

Curo Health Services’ broke for trading on Monday with the $380 million first-lien term loan (B2/B) quoted at 99½ bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 550 basis points, after firming last week at the wide end of the Libor plus 525 bps to 550 bps talk. There is a 1% Libor floor and 101 soft call protection for one year, which was extended from six months, and the debt was sold at an original issue discount of 99.

The company’s $545 million senior secured credit facility also includes a $45 million revolver (B2/B) and a $120 million second-lien term loan (CCC+) that was privately placed.

Goldman Sachs Bank USA, Jefferies Finance LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Thomas H. Lee.

Curo Health is a Mooresville, N.C.-based provider of home health care and hospice services.

SIG Combibloc revised

Over in the primary, SIG Combibloc increased its U.S. dollar and euro seven-year covenant-light term loan to €2,134,000,000 equivalent from €1,965,000,000 equivalent, lowered pricing to Libor/Euribor plus 425 bps from talk of Libor/Euribor plus 450 bps to 475 bps, changed the original issue discount to 99½ from 99, extended the 101 soft call protection to one year from six months, and modified the ticking fee to the full spread and floor at day 31 from half the spread from days 31 to 60 and the full spread thereafter, a market source said.

As before, the term loan debt has a 1% floor.

The term loan debt is split between a $1,225,000,000 tranche and a €1.05 billion tranche.

Recommitments for the U.S. term loan were due at 5 p.m. ET on Monday and for the euro term loan were due at noon ET GMT on Tuesday, the source continued.

The company’s now €2,434,000,000 equivalent credit facility (B1/B+) also includes a €300 million six-year multicurrency revolver.

SIG Combibloc buyout

Proceeds from SIG Combibloc’s credit facility, a €675 million-equivalent notes offering and equity will be used to finance its buyout by Onex Corp. for up to €3.75 billion, of which €3,575,000,000 will be paid at the closing and an additional up to €175 million will be payable based on the financial performance of SIG Combibloc in 2015 and 2016.

The bond offering was downsized from €700 million with the term loan upsizing, another source added.

Barclays, Bank of America Merrill Lynch, Goldman Sachs & Co., Nomura Securities Co. Ltd., RBC Capital Markets LLC, Credit Agricole, Mizuho, RBS Securities Inc., UniCredit and Rabobank are leading the bank deal.

Net senior secured leverage is 4.8 times, and net total leverage is 6.3 times.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

SIG Combibloc is a Switzerland-based supplier of carton packaging and filling machines for beverages and food.

Exact modifications surface

Exact Holding flexed up pricing on its $335 million U.S. and euro seven-year first-lien term loan (B1/B) to Libor/Euribor plus 525 bps from Libor/Euribor plus 475 bps, changed the original issue discount to 96 from 99, extended the 101 soft call protection to one year from six months and removed the leveraged-based pricing step-down, according to a market source. The 1% floor was unchanged.

In addition, pricing on the $125 million U.S. and euro eight-year second-lien term loan (Caa1/CCC+) was lifted to Libor/Euribor plus 900 bps from Libor/Euribor plus 875 bps, the discount widened to talk of 94 to 95 from 98½, and the call protection was modified to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said. This tranche also has a 1% floor.

Furthermore, the company removed the available amount EBITDA builder basket, reduced the total leverage ratio to make unlimited investments to 4.5 times, and eliminated the MFN sunset.

The breakdown of U.S. and euro amounts for the $460 million equivalent of first- and second-lien term loans is still to be determined.

Exact lead banks

RBC Capital Markets LLC, Deutsche Bank Securities Inc. and ING are leading Exact’s credit facility, which also provides for a €30 million revolver (B1/B). RBC is the left lead on the first-lien debt and Deutsche is the left lead on the second-lien debt.

Recommitments are due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used with equity to fund the buyout of the company by Apax Partners for €32.00 per ordinary share.

Exact is a Netherlands-based vendor of on-premise and true-cloud accounting, CRM and ERP software services for businesses.

IPC retranches

IPC lifted its 6½-year first-lien term loan (B) to $595 million from $555 million, while cutting its seven-year second-lien covenant-light term loan (B-) to $305 million from $345 million, according to a market source.

Pricing on the first-lien term loan is Libor plus 550 bps with a 1% Libor floor and original issue discount of 97, and it has 101 soft call protection for one year. Previously, pricing was flexed from Libor plus 475 bps with a discount of 99, the call protection was extended from six months, the maturity was shortened from seven years and a net first-lien maintenance covenant was added to the originally covenant-light tranche.

The second-lien term loan is priced at Libor plus 950 bps with a 1% Libor floor and a discount of 95½ and is non-callable for one year, then at 103 in year two and 101 in year three. Earlier in syndication, pricing on the second-lien term loan was raised from Libor plus 850 bps with a discount of 98½, the call protection was modified from 102 in year one and 101 in year two and the maturity was shortened from eight years.

Also, last week, the company eliminated the 12-month MFN sunset provision from both term loans, increased the excess cash flow sweep to 75% with step-down from 50% with step-downs and adjusted the unlimited amount provision under the incremental allowance.

IPC getting revolver

In addition to the first- and second-lien term loans, IPC’s $925 million credit facility includes a $25 million five-year revolver (B1/B).

Recommitments were due by 5 p.m. ET on Monday, the source added.

Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Centerbridge Partners LP from Silver Lake Partners for about $1.2 billion.

IPC is a Jersey City, N.J.-based provider of mission-critical network services and trading communication technology to the financial markets community.

CSP reworks deal

CSP Technologies raised pricing on its $170 million seven-year first-lien term loan to Libor plus 600 bps from talk of Libor plus 525 bps to 550 bps and moved the original issue discount to 98 from 98½, a market source remarked.

In addition, the incremental term loan allowance was cut to $17 million plus an amount subject to 3.5 times first-lien net leverage from $35 million plus an amount subject to 4 times first-lien net leverage, and the excess cash flow sweep revised to 50% with a step-down to 25% at 3.5 times first-lien net leverage from 50% with a step-down to 25% at 4 times first-lien net leverage and to 0% at 3.25 times first-lien net leverage, the source continued.

As before, the term loan has a 1% Libor floor and 101 soft call protection for one year.

The company’s $195 million credit facility (B3/B+) also includes a $25 million five-year revolver.

Recommitments were due by noon ET on Monday and the deal allocated in the afternoon, the source added.

CSP being acquired

Proceeds from CSP’s credit facility and about $190 million of equity will be used to fund its buyout by Wendel Group for around $360 million.

Barclays is leading the debt that will result in total leverage of 5.1 times.

Closing is expected in the first quarter, following customary consultation with the company’s French Workers Council and after receiving necessary approvals from the antitrust authorities.

CSP Technologies is an Auburn, Ala.-based designer and producer of desiccant plastic vials for the diabetes test-strip market.

Presidio closes

In other news, Presidio Inc.’s buyout by Apollo Global Management LLC from American Securities LLC has been completed, a news release said.

For the transaction, Presidio got a new $650 million credit facility (B1/B) consisting of a $50 million revolver and a $600 million seven-year first-lien covenant-light term loan.

Pricing on the term loan is Libor plus 525 bps with a 1% Libor floor and it was sold at an original issue discount of 97. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was lifted from Libor plus 475 bps, the discount was changed from 99 and the call protection was extended from six months.

Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., RBC Capital Markets LLC and Goldman Sachs Bank USA led the deal.

Other funds for the buyout came from $400 million of bonds.

Presidio is a New York-based IT infrastructure services provider.

Accuvant completes deal

Accuvant, a Denver-based provider of information security services, closed on its merger with FishNet Security, an Overland Park, Kan.-based provider of information security services, according to a news release.

To help fund the merger, Accuvant got a $300 million seven-year first-lien covenant-light term loan (B1/B) and a $125 million eight-year second-lien covenant-light term loan (Caa1/CCC+).

Pricing on the first-lien term loan is Libor plus 525 bps with a 1% Libor floor and it was sold at an original issue discount of 98. There is 101 soft call protection for one year

The second-lien term loan is priced at Libor plus 900 bps with a 1% Libor floor and was sold at 99. This debt has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan firmed at the wide end of revised talk of Libor plus 500 bps to 525 bps and up from initial talk of Libor plus 450 bps to 475 bps, the discount was modified from revised talk of 98½ and initial talk of 99 and the call protection was extended from six months, and the spread on the second-lien term loan firmed at the high end of the Libor plus 875 bps to 900 bps talk.

Goldman Sachs Bank USA and Societe Generale led the term loans.

PODS wraps

The purchase of PODS LLC, a Clearwater, Fla.-based provider of storage and moving containers, by Ontario Teachers’ Pension Plan closed, a news release said, and funding for the transaction came from a $610 million senior facility comprised of a $50 million revolver (B1/B+), a $410 million seven-year first-lien covenant-light term loan B (B1/B+) and a $150 million eight-year second-lien covenant-light term loan (Caa1/CCC+).

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 99½. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was sold at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $390 million, pricing was flexed from talk of Libor plus 450 bps to 475 bps with a discount of 99 and the call protection was extended from six months, and the second-lien loan was downsized from $170 million while pricing was cut from talk in the Libor plus 850 bps area with a discount of 98½.

Morgan Stanley Senior Funding Inc., Barclays and Goldman Sachs Bank USA led the deal, with Morgan Stanley left lead on the term loan B and Barclays left lead on the second-lien loan.

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