Intelligrated trades up on purchase by Honeywell; WEX, Affinity close on credit facilities

By Sara Rosenberg

New York, July 1 – Intelligrated saw its term loan head higher in the quiet pre-holiday secondary market on Friday following news that the company is being acquired by investment-grade company Honeywell International Inc., according to a market source.

The term loan was quoted at par bid, par ½ offered, up from 99 bid, par offered, the source said.

Under the agreement, Honeywell is buying Intelligrated from Permira for $1.5 billion in an all-cash transaction.

Closing is expected by the end of the third quarter, subject to customary conditions, including regulatory review.

Intelligrated is a Mason, Ohio-based provider of intelligent automated material handling solutions that drive fulfillment productivity for retailers, manufacturers and logistics providers.

WEX completes deal

In other news, WEX Inc. closed on its $2.125 billion credit facility (Ba3/BB-) that consists of a $470 million five-year revolver, a $455 million five-year term loan A and a $1.2 billion seven-year term loan B, according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the revolver and term loan A is Libor plus 325 basis points, and pricing on the term loan B term loan B is Libor plus 350 bps with a step-down to Libor plus 325 bps when consolidated total leverage is less than or equal to 3.5 times and a 0.75% Libor floor. The term loan B has 101 soft call protection for one year and was sold at an original issue discount of 99.

During syndication, the term loan A was upsized from $445 million and the term loan B was downsized from $1.21 billion. Also, pricing on the term loan B was reduced from Libor plus 400 bps, the step-down was changed from Libor plus 375 bps at consolidated total leverage that was still to be determined, the call protection was extended from six months, the 12-month MFN sunset was removed, setting the 50-bps MFN for the life of the deal, and the incremental allowance was changed to the greater of $375 million and 4 times total leverage from the greater of $450 million and 4 times total leverage, the source continued.

WEX lead banks

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., MUFG and Citizens Bank led WEX’s credit facility.

Proceeds were used to help fund the acquisition of Electronic Funds Source LLC, a provider of payments solutions, for $1.1 billion in cash and the issuance of 4 million shares of common stock to Warburg Pincus, Electronic Funds Source’s current owner, to repay existing revolver borrowings of $219 million and to repay an existing $452 million term loan A.

WEX is a South Portland, Maine-based provider of corporate payment solutions.

Affinity Gaming wraps

Affinity Gaming completed its $375 million credit facility (B1/BB-) that includes a $75 million undrawn revolver and a $300 million seven-year first-lien term loan B, a news release said.

Pricing on the term loan B is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the B loan firmed at the low end of the Libor plus 400 bps to 425 bps talk and the discount was tightened from 99.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and Fifth Third Bancorp led the deal that is being used with $95 million of cash on hand to call the company’s $200 million of 9% senior notes due 2018 and repay its existing $180 million secured term loan.

Total leverage is declining to about 4.2 times from 5.3 times with the refinancing.

Affinity Gaming is a Las Vegas-based casino owner and operator.

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