Booz Allen, U.S. Security changes emerge; Imagine! Print details revealed with launch

By Sara Rosenberg

New York, July 6 – In the primary market on Wednesday, Booz Allen Hamilton Inc. trimmed the size of its term loan B, lowered the spread, removed the Libor floor and tightened the original issue discount.

Also, U.S. Security Associates Inc. raised pricing on its term loan B, firmed the original issue discount at the wide end of guidance and extended the call protection, in addition to making some documentation revisions.

Furthermore, Imagine! Print Solutions LLC launched its add-on term loan B to investors, and Alliant Insurance Intermediate LLC and Plaskolite LLC joined this week’s new issue calendar with plans for incremental loans.

Booz revises term B

Booz Allen Hamilton cut its seven-year term loan B (Ba2/BB) to $400 million from $541 million, reduced pricing to Libor plus 275 basis points from the Libor plus 300 bps area, modified the Libor floor to 0% from 0.75% and moved the original issue discount to 99.75 from 99.5, according to a market source.

The term loan B still has 101 soft call protection for six months.

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.

Booz upsizes term A

As a result of the term loan B downsizing, Booz Allen’s term loan A was upsized by $141 million, the source said.

The company disclosed in a recent filing with the Securities and Exchange Commission that it is working on a repricing and maturity extension of the $1,618,000,000 of debt outstanding under its revolver, term loan A and term loan B and reallocating a portion of the debt currently under its term loan B to its term loan A.

At 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.

U.S. Security reworks loan

U.S. Security Associates lifted pricing on its $450 million seven-year senior secured term loan B to Libor plus 500 bps from Libor plus 475 bps, set the original issue discount at 99, the wide end of the 99 to 99.5 talk, and pushed out the 101 soft call protection to one year from six months, according to a market source.

Also, the incremental starter basket was decreased to $50 million from $100 million, the MFN sunset provision was removed, and the restricted payment builder starter basket was removed and the ratio test was reduced to 3.75 times first-lien secured leverage, the source said.

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

The company’s $525 million credit facility (B2/B+) also includes a $75 million revolver.

Books closed at 5 p.m. ET on Wednesday, the source added.

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

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

Imagine! holds call

Imagine! Print Solutions hosted a lender call at 2 p.m. ET on Wednesday to launch a fungible $50 million add-on term loan B talked at Libor plus 600 bps with a 1% Libor floor and an original issue discount of 99.5, a market source said.

The spread and floor on the add-on loan matches pricing on the existing $325 million term loan B.

Commitments are due on Tuesday, the source added.

RBC Capital Markets LLC and Societe Generale are leading the deal that will be used to fund the purchase of Midnight Oil Agency.

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

Imagine! is a Minneapolis-based provider of printed in-store marketing solutions. Midnight Oil is a Burbank, Calif.-based marketing agency.

Alliant readies deal

Alliant Insurance emerged with plans to hold a lender call at 11 a.m. ET on Thursday to launch a $280 million senior secured incremental first-lien term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc., MCS Capital Markets LLC and KKR Capital Markets LLC are leading the deal that will be used to fund acquisitions.

Alliant Insurance is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Plaskolite on deck

Plaskolite scheduled a conference call for Thursday afternoon to launch a fungible $70 million add-on first-lien term loan, according to a market source.

Based on an existing leverage based grid, pricing on the pro forma $381.6 million first-lien term loan will be Libor plus 475 basis points with a 1% Libor floor, the source said.

Antares Capital and KeyBanc Capital Markets are leading the deal that will be used with a privately placed $15 million add-on to the company’s existing $105 million second-lien term loan to fund a distribution to shareholders, and pay transaction-related fees and expenses.

Plaskolite is a Columbus, Ohio-based manufacturer of acrylics and other plastic products that was acquired by Charlesbank Capital Partners and management in November 2015.

BWIC surfaces

Moving to the secondary market, a roughly $145 million loan Bid Wanted In Competition was announced in the morning, with the deadline for bids set at noon ET on Thursday, a trader remarked.

Some of the names in the portfolio are Avaya Inc., Chrysler Group LLC, Energy Future Intermediate Holding Co., LA Fitness International LLC, Misys, Nielsen Finance LLC, NXP Semiconductor LLC, Texas Competitive Electric Holdings LLC and US Foods Inc.

The loan portfolio includes about 41 issuers, the trader added.

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