Dell Software, Neustar, Dexter Axle break; Nielsen resized again; Focus revises deadline

By Sara Rosenberg

New York, Sept. 27 – Dell Software Group’s credit facility freed up for trading on Tuesday, with its first-lien term loan quoted above its original issue discount, and deals from Neustar Inc. and Dexter Axle hit the secondary market as well.

Meanwhile, in the primary market, Nielsen Finance LLC increased the size of its term loan B-3 for a second time, and Focus Brands Inc. moved up the commitment deadline on its credit facility.

In addition, Vizient Inc., Casella Waste Systems Inc. and SRS Distribution Inc. released price talk on their new deals with launch.

Dell Software frees up

Dell Software’s credit facility began trading on Tuesday, with the $1.35 billion six-year covenant-light first-lien term loan quoted at 99¼ bid, 99¾ offered, according to a trader.

Pricing on the term loan is Libor plus 600 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for one year.

Last week, the spread on the term loan was lifted from Libor plus 550 bps, and the call protection was extended from six months.

The company’s $1.45 billion credit facility (B1/B) also includes a $100 million revolver.

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Francisco Partners and Evergreen Coast Capital from Dell Inc.

Closing is subject to customary regulatory review.

Dell Software is a provider of integrated software, identity and management solutions and network security solutions.

Neustar hits secondary

Neustar’s $498,893,750 term loan A (Ba2/BB+) due Jan. 22, 2019 began trading too, with levels quoted at 99¾ bid, 100¾ offered, a trader said.

Pricing on the term loan A is Libor plus 325 bps with no floor.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, RBC Capital Markets, BTMU, BMO Capital Markets, BBVA and Capital One are leading the deal that will be used to consolidate two existing term loan A tranches and extend the maturity to 2019.

Closing is expected on Wednesday.

Neustar is a Sterling, Va.-based real-time provider of cloud-based information services.

Dexter Axle breaks

Dexter Axle’s $80 million add-on term loan (B1/B+) also freed up, with levels seen at par bid, 101 offered, according to a market source.

Pricing on the add-on loan is Libor plus 525 bps with a 1% Libor floor, which matches existing term loan pricing, and it was sold at an original issue discount of 99.75, after tightening late last week from 99.5.

BNP Paribas Securities Corp. is leading the deal that will be used to fund an acquisition.

Dexter Axle is an Elkhart, Ind.-based designer and manufacturer of trailer axles, brakes and related components.

Nielsen ups size

Switching to the primary market, Nielsen Finance raised its seven-year covenant-light term loan B-3 (Ba1) to up to $1.9 billion from a revised amount of up to $1.6 billion and an initial size of $500 million, a market source said.

Pricing on the term loan B-3 is Libor plus 250 bps with no Libor floor and an original issue discount of 99.75, and the debt has 101 soft call protection for six months.

Previously in syndication, the spread on the term loan B-3 firmed at the low end of the Libor plus 250 bps to 275 bps talk and the discount was changed from 99.5.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance the company’s existing term loan B-1, its dollar-denominated term loan B-2 and, because of the newest upsizing, to repay revolver borrowings, the source added. The term loan B-1 refinancing plans were added upon the first upsizing.

Commitments were due at noon ET on Tuesday.

Nielsen euro repricing

As previously reported, along with the new term loan B-3, the company asking to reprice its €286 million covenant-light term loan B-2, with talk on the repricing being Euribor plus 250 bps with no floor, a par issue price and 101 soft call protection for six months.

The repricing will take the euro term loan B-2 down from Euribor plus 300 bps with no floor.

Cashless roll commitments for repricing are due at 5 p.m. ET on Wednesday, and new money commitments are due at 5 p.m. ET on Thursday.

Closing on the term loan B-3 and the repricing is expected this week.

Nielsen Finance is a subsidiary of Nielsen Co. BV, a New York and Netherlands-based provider of information and insights into what consumers watch and buy.

Focus Brands moves deadline

Focus Brands accelerated the commitment deadline on its $625 million credit facility (B2/B) to noon ET on Thursday from 5 p.m. ET on Oct. 4, according to a market source.

The facility consists of a $25 million revolver, and a $600 million seven-year covenant-light first-lien term loan talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

Focus Brands is an Atlanta-based restaurant franchisor and operator.

Vizient releases talk

Vizient held its call on Tuesday, launching the repricing of its term loan B due Feb. 13, 2023 at talk of Libor plus 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a source said.

The repricing will take the existing term loan B down from Libor plus 525 bps with a 1% Libor floor, and existing lenders will be paid out at 101 due to current soft call protection terms.

The company also plans to use $150 million of the $250 million net proceeds from its recently completed sale of National IPA to pay down the term loan B on Friday, which would reduce the term loan B size to $1,122,000,000 from $1,272,000,000 currently, the source continued.

Along with the repricing, the company is seeking an amendment to waive the asset sale mandatory prepayment requirements related to the remaining $100 million of net proceeds from the National IPA transaction.

Lenders are offered a 10 bps consent fee, the source added.

Barclays is leading the deal for which commitments/consents are due at 5 p.m. ET on Oct. 4.

Vizient is an Irving, Texas-based network of not-for-profit health care organizations.

Casella guidance emerges

Casella Waste Systems came out with talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $350 million seven-year covenant-light term loan B that launched with a meeting during the session, according to a market source.

The company’s $500 million credit facility (B1/B+) also includes a $150 million revolver.

Bank of America Merrill Lynch is the left lead on the deal that will be used to redeem 7¾% senior subordinated notes due 2019, to repay in full an existing senior secured asset-based revolver and letter-of-credit facility due Feb. 26, 2020 and for working capital and other purposes.

Casella is a Rutland, Vt.-based solid waste, recycling and resource management services company.

SRS holds call

SRS Distribution had its lender call, launching its $100 million incremental covenant-light first-lien term loan (B) due Aug. 25, 2022 with talk of Libor plus 425 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, an original issue discount of 99.5 and 101 soft call protection until June 21, 2017, a market source said.

Commitments are due by the close of business on Friday, the source added.

Barclays and UBS Investment Bank are leading the deal that will be used to prepay an existing ABL draw and to fund general corporate purposes, including potential acquisitions.

SRS Distribution is a McKinney, Texas-based roofing distributor.

Ancestry gives call protection

Also in the primary, Ancestry.com Operations Inc. revealed that its $550 million eight-year second-lien term loan includes hard call protection of 102 in year one and 101 in year two, a market source remarked.

The second-lien term loan and a $1.35 billion seven-year first-lien term loan B were launched to investors with a lender call in the afternoon.

When the deal was first announced on Monday, price talk on the first-lien term loan emerged at Libor plus 425 bps to 450 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan came out at Libor plus 850 bps with a 1% Libor floor and a discount of 98.5.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are leading the $1.9 billion of term loans, with JPMorgan the left lead on the first-lien term loan and Deutsche Bank the left lead on the second-lien term loan.

Proceeds will be used to refinance a $728 million term loan B, $300 million of Opco unsecured notes and $390 million of Holdco unsecured notes, and to fund a return of capital to shareholders.

Ancestry.com is a Provo, Utah-based online family history resource.

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