SolarWinds sets bank meeting; Northstar Asset Management, GCP Applied ready deals

By Sara Rosenberg

New York, Jan. 8 – In the primary market on Friday, SolarWinds came out with timing on the launch of its proposed credit facility, and Northstar Asset Management Group Inc. and GCP Applied Technologies Inc. joined the near-term calendar.

SolarWinds timing revealed

SolarWinds scheduled bank meetings for Wednesday in New York and for Thursday in London to launch its $1,625,000,000 senior secured credit facility, according to a market source.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are leading the deal that will help fund the buyout of the company by Silver Lake Partners and Thoma Bravo LLC for $60.10 per share, or about $4.5 billion in cash.

The facility consists of a $125 million revolver and a $1.5 billion equivalent U.S. dollar- and euro-denominated first-lien term loan, the source said, which matches what the company had previously outlined in filings with the Securities and Exchange Commission.

The SEC filings also said that $580 million in senior secured second-lien notes, $2.42 billion in equity and about $150 million in cash on hand would be used for the buyout as well.

Closing is expected this quarter, subject to approval by SolarWinds stockholders, regulatory approvals and other customary conditions.

SolarWinds is an Austin, Texas-based provider of IT management software.

Northstar on deck

Northstar Asset Management Group emerged with plans to hold a bank meeting at 2 p.m. ET in New York on Tuesday to launch a $500 million senior secured term loan B, a market source said.

Morgan Stanley Senior Funding Inc. is leading the deal.

The company disclosed in October 2015 that it received a $500 million debt financing commitment to fund its acquisition of a roughly 85% interest in the Townsend Group, a manager and advisor of real assets, for about $380 million and for general corporate purposes, including repurchases of common stock.

The acquisition is expected to close early this year.

Northstar is a New York-based asset management firm focused on managing real estate investment platforms.

GCP coming soon

GCP Applied Technologies set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $275 million covenant-light term loan B, according to a market source.

Commitments are due on Jan. 21, the source said.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the loan that is being done in connection with the company’s spinoff from W.R. Grace & Co.

Proceeds will be used to fund a distribution to W.R. Grace and for working capital.

GCP is a Cambridge, Mass.-based provider of products and technology solutions in the specialty construction chemicals, specialty building materials and packaging sealants and coating industries.

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