Bats, Chefs’ Warehouse break; AlliedUniversal, Alorica update deals; Booz Allen talk emerges

By Sara Rosenberg

New York, June 20 – Bats Global Markets Inc. firmed the spread on its term loan B at the low end of guidance, added a step-down and finalized the original issue discount at the tight end of talk, and then the debt freed up for trading on Monday, and Chefs’ Warehouse Inc.’s credit facility hit the secondary as well.

In more happenings, AlliedUniversal (USAGM Holdco LLC) finalized pricing on its incremental and delayed-draw first-lien term loans at the tight side of talk, and Alorica Inc. lowered the spread, added a step-down and modified the original issue discount on its term loan B.

Furthermore, Booz Allen Hamilton Inc. released price talk with launch, On Assignment Inc. emerged with plans for a repricing transaction, and U.S. Security Associates is getting ready to bring a new deal to market.

Bats tweaked, trades

Bats Global Markets set pricing on its $650 million term loan B at Libor plus 350 basis points, the low end of the Libor plus 350 bps to 375 bps talk, added a step-down to Libor plus 325 bps at 2 times senior secured leverage and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source. The tranche still has no Libor floor.

The company’s $750 million credit facility (BB-) also includes a $100 million revolver.

With final terms in place, the term loan B broke for trading on Monday and levels were quoted at par bid, 100½ offered, a trader remarked.

Bank of America Merrill Lynch, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing $100 million revolver and $656 million term loan B.

Closing is expected this month.

Bats Global Markets is a Kansas City-based operator of exchanges and services for financial markets.

Chefs’ starts trading

Chefs’ Warehouse’s credit facility also freed up, with the $305 million funded six-year term loan quoted at 99½ bid, 100¼ offered, a market source said.

Pricing on the funded term loan, as well as on a $50 million delayed-draw term loan, is Libor plus 475 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, the funded term loan was upsized from $280 million, and pricing on all of the term debt firmed at the low end of the Libor plus 475 bps to 500 bps talk.

The company’s $430 million credit facility also includes a $75 million ABL revolver.

Jefferies Finance LLC, BMO Capital Markets Corp., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing credit facility debt, to retire outstanding senior secured notes, for general corporate purposes and for potential acquisitions.

Chefs’ Warehouse is a Ridgefield, Conn.-based distributor of specialty food products.

AlliedUniversal firms spread

Back in the primary market, AlliedUniversal finalized pricing on its $1.26 billion incremental first-lien term loan due July 28, 2022 and on its $250 million delayed-draw first-lien term loan due July 28, 2022 at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source said.

The company’s $1.68 billion in new loans (B2/B+) also includes a $170 million add-on revolver.

Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets and Societe Generale are leading the deal.

Allied/Universal merging

Proceeds from AlliedUniversal’s new bank debt will be used to fund the merger of AlliedBarton Security Services, a portfolio company of Wendel, and Universal Services of America, a portfolio company of Warburg Pincus and Partners Group, and to fund potential add-on acquisitions.

In exchange for its contribution of its shareholding in AlliedBarton, Wendel will receive about 33% of the shares of AlliedUniversal and a cash payment of around $387 million. Warburg Pincus will get about 33% of the shares of the combined company and Partners Group will have about 17%.

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

AlliedBarton is a provider of security services. Universal Services is a Santa Ana, Calif.-based security company and a provider of janitorial solutions, as well as safety and emergency preparation services.

Alorica flexes

Alorica trimmed pricing on its $350 million six-year first-lien term loan B to Libor plus 475 bps from Libor plus 500 bps, added a step-down to Libor plus 450 bps at 2.5 times gross leverage and changed the original issue discount to 99.25 from 99, according to a market source.

As before, the term loan B has a 0.75% Libor floor and 101 soft call protection for one year.

Commitments are due at 5 p.m. ET on Tuesday, the source said.

The company’s $1.12 billion credit facility (B1/BB) also includes a $225 million revolver and a $545 million term loan A.

Previously in syndication, the term loan B size was reduced from $450 million as the term loan A was increased from $445 million.

Alorica funding acquisition

Proceeds from Alorica’s credit facility will be used to finance the purchase of Expert Global Solutions from One Equity Partners.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Bank of the West, BNP Paribas Securities Corp. and Wells Fargo Securities LLC are leading the debt.

Closing on the acquisition is expected in the third quarter, subject to customary conditions, including regulatory requirements.

Alorica is an Irvine, Calif.-based provider of services, including customer relationship management and back office support. Expert Global Solutions is a Plano, Texas-based customer service organization.

Booz Allen sets talk

Booz Allen Hamilton held its lender call on Monday, launching its roughly $541 million seven-year term loan B (Ba2/BB) with talk in the Libor plus 300 bps area with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due on July 1, the source added.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, SMBC and Fifth Third are leading the deal that will be used to refinance an existing term loan B.

The company said in an 8-K filed with the Securities and Exchange Commission on Friday that it is evaluating a repricing and maturity extension of the $1,618,000,000 of debt outstanding under its revolver, term A and term B and that a portion of its debt currently under its term B would be reallocated to its term A.

As of March 31, there was $741.8 million outstanding under the term loan A due May 31, 2019 and $841.2 million outstanding under the term loan B due July 31, 2019.

Booz Allen is a McLean, Va.-based provider of management and technology consulting services, and engineering services to governments, corporations and not-for-profit organizations.

On Assignment joins calendar

On Assignment scheduled a lender call for 1 p.m. ET on Tuesday to launch a repricing of its roughly $700 million term loan B that is talked at Libor plus 275 bps with a 0.75% Libor floor, a par offer price and 101 soft call protection for six months, a market source remarked.

The repricing will the term loan B down from Libor plus 300 bps with a 0.75% Libor floor.

Commitments are due on June 27, the source added.

Wells Fargo Securities LLC is leading the deal for the Calabasas, Calif.-based provider of diversified professional staffing solutions.

U.S. Security on deck

U.S. Security Associates is set to hold a bank meeting at noon ET in New York on Tuesday to launch a $525 million credit facility (B+), according to a market source.

The facility consists of a $75 million revolver and a $450 million term loan B, the source said.

Goldman Sachs & Co., KeyBanc Capital Markets and ING are leading the deal that will be used to refinance existing debt.

U.S. Security Associates is a Roswell, Ga.-based safety and security services company.

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