Leidos, PolyOne, Equinix, US LBM, United Site Services, Vectra, BBB Industries break

By Sara Rosenberg

New York, Aug. 10 – Leidos Innovations Corp. and PolyOne Corp. moved up the commitment deadlines on their term loans and Equinix Inc. set pricing on its term loans at the tight end of talk, and then these deals freed to trade on Thursday.

Other deals to surface in the secondary market during the session included US LBM Holdings LLC, United Site Services, Vectra Co. (Duke Finance LLC) and BBB Industries LLC.

Back in the primary market, Atlantic Broadband Finance LLC lowered pricing on its term loan, added a step-down, tightened the original issue discount and specified ticking fees, Green Plains Inc. finalized the spread on its term loan B at the high side of talk and sweetened the call protection, and Wilsonart LLC lifted pricing on its term loan.

Also, DuPage Medical Group moved some funds between its first-and second-lien term loans and reduced spreads, Syncsort Inc. shifted funds between its term loans and raised pricing on both tranches, Engility Corp. firmed pricing on its term loan B-2 at the high end of talk, and Parexel International Corp. set pricing on its term loan at the low side of guidance.

In addition, TruGreen LP tightened the spread and issue price on its term loan, Logix Communications set pricing on its term loan at the midpoint of guidance, Jane Street eliminated plans for a euro tranche under its term loan, firmed the spread at the high side of talk and tightened the issue price, and Prestige Brands Inc. and IPS Intermediate Holding Corp. released price talk with launch.

Leidos shuts early, trades

Leidos Innovations accelerated the deadline for commitments from new lenders for its $1,126,000,000 senior secured covenant-light term loan B due Aug. 16, 2023 to noon ET on Thursday from 5 p.m. ET on Thursday, a market source said.

Pricing on the term loan is Libor plus 200 bps with a 0% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

The loan freed up for trading in the afternoon, with levels quoted at par 1/8 bid, par ½ offered, another source added.

Citigroup Global Markets Inc., MUFG, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Scotiabank, Wells Fargo Securities LLC and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan B from Libor plus 225 bps with a 0% Libor floor.

Closing is expected on Wednesday.

With this transaction, the company is increasing the designated additional letter of credit facilities basket to $200 million from $100 million.

Leidos is a Reston, Va.-based provider of technology and sector expertise to customers in national security, health and engineering.

PolyOne accelerated, frees up

PolyOne moved up the deadline for new money commitments for its $640.7 million senior secured covenant-light term loan B due Nov. 12, 2022 to noon ET on Thursday from 5 p.m. ET on Thursday, according to a market source.

Pricing on the loan is Libor plus 200 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

In the afternoon, the term loan began trading and levels were quoted at par 1/8 bid, par ½ offered, another source said.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 225 bps with a 0.75% Libor floor.

Closing is expected during the week of Aug. 14.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials, services and solutions.

Equinix firms terms, breaks

Equinix set pricing on its $247 million covenant-light term loan B due 2023 at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, on its €998 million covenant-light term loan B at Euribor plus 250 bps, the tight end of the Euribor plus 250 bps to 275 bps talk, and on its £296 million covenant-light term loan B at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, according to a market source.

Also, the issue price on the sterling loan finalized at par, the tight end of the 99.875 to par talk.

All of the term loans have a 0% floor, the U.S. and euro loans have a par issue price, the U.S. term loan has 101 soft call protection for six months, and the euro and sterling loans have 101 soft call protection for one year.

After terms finalized, the U.S. term loan made its way into the secondary market and it was quoted at par ¼ bid, a trader added.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing U.S. term loan down from Libor plus 250 bps with a 0% Libor floor, an existing euro term loan from Euribor plus 325 bps with a 0% floor and an existing sterling term loan from Libor plus 300 bps with a 0.75%.

Equinix is a Redwood City, Calif.-based interconnection and data center company.

US LBM hits secondary

US LBM’s $853 million first-lien term loan (B3/B+) due August 2022 broke too, with levels seen at par ½ bid, 101 offered, a trader said.

Pricing on the loan is Libor plus 450 bps with a step-down to Libor plus 400 bps post an initial public offering and subject to B2/B stable ratings. Included in the loan is a 1% Libor floor and 101 soft call protection for six months, and it was issued at par.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 525 bps with a 1% Libor floor.

US LBM is a Green Bay, Wis.-based owner of building material distribution businesses.

United Site tops issue prices

United Site Services’ credit facilities freed to trade, with the $487 million seven-year covenant-light first-lien term loan quoted at par ¼ bid, par ¾ offered and the $293 million eight-year covenant-light second-lien term loan quoted at par ½ bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 375 bps with a 25 bps step-down when corporate ratings are B2/B and a 1% Libor floor. The debt has 101 soft call protection for six months and was issued at par.

The second-lien term loan is priced at Libor plus 775 bps with a 25 bps step-down when corporate ratings are B2/B and a 1% Libor floor. This tranche was issued at par and has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $475 million, pricing was cut from Libor plus 450 bps and the issue price was revised from 99.5, the second-lien term loan was lifted from $280 million, pricing was lowered from Libor plus 850 bps and the issue price was tightened from revised talk of 99 and initial talk of 98.5, and the step-down was added to both loans.

The company’s $865 million of credit facilities also include an $85 million ABL revolver.

United Site lead banks

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Jefferies LLC and Deutsche Bank Securities Inc. are leading United Site Services’ credit facilities.

Proceeds will be used with equity to fund the buyout of the company by Platinum Equity from Calera Capital, to refinance existing debt, and, due to the recent term loan upsizings, to add cash to the balance sheet.

United Site Services is a Westborough, Mass.-based provider of portable restrooms, temporary fence and related site services.

Vectra frees up

Vectra’s $474 million first-lien term loan (B2/B) due Feb. 21, 2024 also began trading, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 500 bps with a 1% Libor floor.

Vectra, formerly known as OM Group Inc., is a St. Louis-based technology-driven specialty materials and specialty chemicals company.

BBB begins trading

Another deal to make its way into the secondary market was BBB Industries’ $438 million term loan B, with levels quoted at par ½ bid, 101 offered, a market source said.

Pricing on the loan is Libor plus 450 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Nomura is leading the deal that will be used to reprice an existing term loan B from Libor plus 500 bps with a 1% Libor floor.

BBB is a Daphne, Ala.-based remanufacturer of automotive products for the North American aftermarket.

ATI bid above par

Also in trading, ATI Holdings Acquisition Inc.’s $768 million term loan B due May 10, 2023 was quoted at par ½ bid, 101¼ offered, in line with where it went out on Wednesday after breaking late that day, a trader remarked.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $758 million and pricing firmed at the low end of the Libor plus 350 bps to 375 bps talk.

Barclays, Jefferies LLC and HSBC Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor, and, due to the upsizing, for general corporate purposes.

ATI, an Advent International portfolio company, is a Bolingbrook, Ill.-based outpatient physical therapy provider.

Atlantic Broadband revised

Returning to the primary market, Atlantic Broadband cut pricing on its $1.7 billion seven-year covenant-light first-lien term loan to Libor plus 237.5 bps from talk of Libor plus 250 bps to 275 bps, added a 12.5 bps step-down at 4.85 times senior secured net leverage, moved the original issue discount to 99.75 from 99.5 and outlined the ticking fees as half the spread from days 31 to 90 and the full spread thereafter, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

The $1.85 billion of credit facilities (B1/BB-) also include a $150 million revolver.

Recommitments were due at 2 p.m. ET on Thursday and allocations are expected on Friday.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, CIBC and BMO Capital Markets are leading the deal that will be used with a $315 million equity investment from Caisse de depot et placement du Quebec to fund the acquisition of the MetroCast cable systems from Harron Communications LP for $1.4 billion.

Closing is expected in January 2018, subject to regulatory approvals and customary conditions.

Atlantic Broadband, a subsidiary of Cogeco Communications Inc., is a Quincy, Mass.-based cable operator. The new debt will be non-recourse to Cogeco.

Green Plains tweaks loan

Green Plains firmed pricing on its $500 million six-year term loan B (B2/BB-) at Libor plus 550 bps, the high end of the Libor plus 500 bps to 550 bps talk, revised the call protection to a 101 hard call for 18 months from a 101 soft call for six months, and eliminated the MFN sunset, a market source said.

As before, the term loan has a 1% Libor floor and an original issue discount of 99.

Allocations are anticipated next week, the source added.

BNP Paribas Securities Corp. is leading the deal that will be used to refinance existing debt.

Green Plains is an Omaha-based ethanol production, marketing and commodities company.

Wilsonart modifies spread

Wilsonart raised pricing on its $1,194,000,000 covenant-light term loan B due December 2023 to Libor plus 325 bps from Libor plus 300 bps, and kept the 1% Libor floor, par issue price and 101 soft call protection for six months intact, according to a market source.

Commitments were due at 5 p.m. ET on Thursday, extended from noon ET on Thursday, the source said.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 350 bps with a 1% Libor floor.

Wilsonart is a Temple, Texas-based engineered surfaces company.

DuPage Medical restructures

DuPage Medical Group increased its seven-year first-lien term loan to $470 million from $430 million and flexed pricing to Libor plus 300 bps from Libor plus 375 bps, while leaving the 0.75% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source remarked.

As for the eight-year second-lien term loan, it was scaled back to $150 million from $190 million and pricing was lowered to Libor plus 700 bps from Libor plus 775 bps, the source continued. This tranche still has a 0.75% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Recommitments were due at 3 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, Barclays, Nomura, Citizens Bank and Citigroup Global Markets Inc. are leading the $620 million in term loans that will be used for acquisition financing and to refinance existing debt.

DuPage is a Downers Grove, Ill.-based multi-specialty physician group.

Syncsort sets changes

Syncsort upsized its seven-year covenant-light first-lien term loan to $610 million from $590 million, widened pricing to Libor plus 500 bps from Libor plus 475 bps and extended the 101 soft call protection to one year from six months, according to a market source.

The company also downsized its eight-year covenant-light second-lien term loan to $180 million from $200 million and raised pricing to Libor plus 900 bps from Libor plus 875 bps, the source said.

The first-lien loan still has a 1% Libor floor and a discount of 99, and the second-lien loan still has a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Antares Capital, Golub Capital, Jefferies LLC and SunTrust Robinson Humphrey Inc. are leading the $790 million in term loans that will be used to help fund the acquisitions of Syncsort and Vision Solutions Inc. by Centerbridge Partners LP from Clearlake Capital Group LP and the merger of the two companies. The transaction is valued at $1.26 billion. Clearlake is retaining a minority ownership stake.

Closing is expected in the third quarter, subject to regulatory approval and other conditions.

Pearl River, N.Y.-based Syncsort and Irvine, Calif.-based Vision Solutions are enterprise software providers. The merged company will operate under the Syncsort name and be based in Pearl River, N.Y.

Engility finalizes terms

Engility firmed pricing on its $579 million term loan B-2 due Aug. 12, 2023 at Libor plus 325 bps, the high end of the Libor plus 300 bps to 325 bps talk, and left the 1% Libor floor, a par issue price and 101 soft call protection for six months unchanged, a market source said.

The company is also getting a $185 million term loan B-1 due Aug. 12, 2020 that priced in line with talk at Libor plus 275 bps with a 0% Libor floor and a par issue price, and has 101 soft call protection for six months as well.

Consents/commitments were due at 5 p.m. ET on Thursday and allocations are expected on Friday morning, the source added.

Morgan Stanley Senior Funding Inc., KKR Capital Markets LLC, Barclays, SunTrust Robinson Humphrey Inc., Regions Capital Markets, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the $764 million of senior secured loans that will reprice an existing term B-1 from Libor plus 325 bps with a 0% Libor floor and an existing term B-2 from Libor plus 375 bps with a 1% Libor floor.

Engility is a Chantilly, Va.-based provider of integrated services for the U.S. government.

Parexel done at low end

Parexel firmed pricing on its $2,065,000,000 seven-year covenant-light term loan B at Libor plus 300 bps, the tight end of the Libor plus 300 bps to 325 bps talk, according to a market source.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The Waltham, Mass.-based biopharmaceutical services company’s $2,365,000,000 of senior secured credit facilities (B1/B) also include a $300 million five-year revolver.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Barclays, Morgan Stanley Senior Funding Inc. HSBC Securities (USA) Inc. and Jefferies LLC are leading the deal that will be used with $720 million in eight-year senior unsecured notes and $2.7 billion of equity to fund the buyout of the company by Pamplona Capital Management LLP and refinance existing debt. Parexel is being bought for $88.10 per share in cash in a transaction valued at about $5 billion, including net debt.

Pro forma for the transaction senior secured leverage will be 5 times and total leverage will be 6.75 times based on March 31 LTM pro forma adjusted EBITDA of $413 million. Net senior secured leverage is 4.3 times and net total leverage is 6.1 times based on a closing cash balance of $284 million.

Closing is expected in late September, subject to shareholder approval and other conditions.

TruGreen flexes lower

TruGreen reduced pricing on its $800 million term loan (B) due April 2023 to Libor plus 400 bps from talk of Libor plus 425 bps to 450 bps and modified the original issue discount to 99.75 from 99.5, according to a market source.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, ING Capital Markets, Natixis, Rabobank, Goldman Sachs Bank USA and SMBC are leading the deal that will be used to refinance an existing term loan and fund a dividend.

TruGreen is a Memphis, Tenn.-based lawn care company.

Logix updates pricing

Logix Communications finalized the spread on its $250 million covenant-light term loan B at Libor plus 575 bps, the midpoint of the Libor plus 550 bps to 600 bps talk, added a covenant and dropped the MFN sunset, a market source remarked.

The 1% Libor floor on the term loan, original issue discount of 99 and 101 soft call protection for six months were left intact.

The company’s $270 million of credit facilities (B2/B) also include a $20 million revolver.

Recommitments were due at 5 p.m. ET on Thursday and allocations are expected on Friday, the source added.

SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC and Brightwood are leading the deal that will be used to help fund the acquisition of Alpheus Communications from the Gores Group and Scott Widham.

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

Logix is a Houston-based fiber-optic bandwidth infrastructure services provider. Alpheus is a Houston-based provider of metro-regional fiber, data center and managed network solutions.

Jane Street restructures

Jane Street opted for an all U.S. dollar $600 million term loan B (Ba3/BB-) due August 2022, instead of a U.S. and euro denominated loan, set the spread at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, and changed the original issue discount to 99.75 from 99.5, a market source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Jane Street is a trading firm with offices in New York, London and Hong Kong.

Prestige reveals talk

In more primary happenings, Prestige Brands held its call on Thursday, launching its $1,312,000,000 term loan B (B1/BB-) due Jan. 26, 2024 at talk of Libor plus 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments/consents are due at noon ET on Wednesday, the source said.

Cashless roll is available.

Barclays is leading the deal that will be used to reprice an existing term loan B.

Prestige Brands is a Tarrytown, N.Y.-based marketer and distributor of over-the-counter and household cleaning products.

IPS discloses OID

IPS Intermediate came out with original issue discount talk of 99.5 on its fungible $80 million incremental term loan due Dec. 20, 2023 that launched with an afternoon call, a market source said.

Like the existing loan, the incremental loan is priced at Libor plus 525 bps with a 1% Libor floor and has 101 soft call protection through Dec. 21.

Commitments are due at noon ET on Wednesday, the source added.

Jefferies LLC is leading the deal that will be used to fund the acquisition of Dura Plastic Products.

IPS, a portfolio company of Nautic Partners LLC, is a Compton, Calif.-based manufacturer of solvent cements, primers and sealants, plumbing and roofing products, and structural and assembly adhesives.

Brown Jordan wraps

Brown Jordan International Inc. completed syndication of its $165 million term loan B (B2/B) due January 2023 at initial talk of Libor plus 500 bps with a 1% Libor floor and a par issue price, according to a market source.

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

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan down from Libor plus 575 bps with a 1% Libor floor.

Closing is expected on Friday, the source added.

Brown Jordan is a St. Augustine, Fla.-based manufacturer of indoor and outdoor furniture.

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