Arby's cuts pricing, trims discount; Convergint Technologies sets talk

By Paul A. Harris

Portland, Ore., Jan. 18 – In Thursday's leveraged loan market Arby’s Restaurant Group Inc. reduced pricing and narrowed the original issue discount on its proposed $1,575,000,000 seven-year term loan B.

And Convergint Technologies set talk for its planned term loans with the launch of the new $861 million credit facility.

Arby’s cuts pricing, trims OID

Arby’s Restaurant Group Inc. (IRB Holding Corp.) reduced pricing and narrowed the original issue discount on its proposed $1,575,000,000 seven-year term loan B.

The loan is now priced at Libor plus 325 basis points with a step down to Libor plus 300 bps on net first-lien leverage reaching 2.5 times. Previously price talk was Libor plus 375 bps.

In addition, the OID is now 99.75 instead of 99.5.

The loan continues to have a 1% Libor floor and 101 soft call protection for six months, the source said.

Commitments were due at 1 p.m. ET on Thursday, a deadline previously accelerated from noon ET on Jan. 19.

The company’s $1,725,000,000 of senior secured credit facilities (B1/B) also include a $150 million revolver.

Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are the arrangers on the deal. Barclays is the administrative agent.

Proceeds will be used to help fund the acquisition of Buffalo Wild Wings Inc. for $157.00 per share in cash in a transaction valued at about $2.9 billion, including net debt.

Convergint sets talk

Convergint Technologies (Gopher Sub Inc.) set talk for its planned term loans with the launch of the new $861 million credit facility.

A $575 million seven-year first-lien term loan (B2/B) is talked at Libor plus 350 basis points with a 0.75% Libor floor and an original issue discount of 99.5.

Of the total loan, $40 million is delayed-draw and $535 million funded.

A $211 million eight-year second-lien term loan (Caa2/CCC) is talked at Libor plus 750 bps with a 0.75% Libor floor and OID of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Jefferies LLC, RBC Capital Markets and Bank of America Merrill Lynch are the lead banks on the deal.

Commitments are due at 5 p.m. ET on Jan. 31.

Proceeds will be used to help fund the buyout of the company by Ares Management.

Prometric tightens first-lien loan

Prometric lowered pricing on its $572.5 million seven-year covenant-light first-lien term loan (B1/B) to Libor plus 300 basis points from original talk of Libor plus 350 bps.

The loan continues to have a 1% Libor floor and an original issue discount of 99.5. Also unchanged is the 101 soft call protection for six months.

Commitments were due by 5 p.m. ET Thursday. The deadline was previously accelerated from Jan. 22.

Barclays, Deutsche Bank Securities Inc. and Nomura are the lead arrangers on the deal. Barclays is also administrative agent.

Proceeds will be used to help fund the buyout of the company by Baring Private Equity Asia and to pay related fees and expenses.

Marketo sets pricing

Marketo Inc. set terms on its $465 million of senior secured credit facilities.

The deal includes a $35 million five-year revolver talked at a 375 to 400 basis point spread to Libor with a 0% Libor floor.

A $430 million seven-year term loan B is talked at a 375 bps to 400 bps spread to Libor with a 0% Libor floor at 99.5. The term loan comes with a six-month soft call at 101 and a 1% annual amortization rate.

Commitments are due Feb. 1.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Golub Capital Markets LLC, Jefferies LLC, Macquarie Capital (USA) Inc., Bank of America Merrill Lynch and Nomura Securities are the leads on the deal.

Proceeds will be used to refinance existing senior secured credit facilities, to provide cash on balance sheet for general corporate purposes and to pay fees and expenses.

Vistage sets talk

Vistage Worldwide Inc. set talk on its planned first-lien and second-lien term loans with the launch of its $385 million of credit facilities.

The $260 million seven-year first-lien term loan B is talked at Libor plus 400 basis points with an original issue discount of 99.5 and a 1% Libor floor.

The $100 million eight-year second-lien term loan is talked at Libor plus 800 bps, an OID of 99 and a 1% Libor floor, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Commitments are due on Feb. 1.

Macquarie Capital (USA) Inc. is the lead bank on the deal.

The facilities also include a $25 million five-year revolving credit facility.

Proceeds will be used to help fund the buyout of the company by Providence Equity Partners from TowerBrook Capital Partners.

Tacala sets talk

Tacala Cos. set price talk on the $335 million first-lien term loan and $115 million second-lien term loan included in its new credit facility.

The first-lien loan is talked at Libor plus 350 basis points and a price of 99.5 while the second-lien loan is talked at Libor plus 750 bps and a price of 99.

Both tranches have a Libor floor of 0%, the source said.

KKR Capital Markets and Wells Fargo Securities LLC are the leads on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

SnapAV/Wirepath talks repricing

SnapAV/Wirepath LLC set talk at Libor plus 475 basis points in its repricing of its $265 million term loan (B2/B).

The repriced loan is being offered at par with a 1% Libor floor.

As part of the repricing, the soft call protection will be reset at 101 for six months.

UBS Investment Bank is the bookrunner on the deal.

Commitments are due by Jan. 24.

Current term loan pricing is Libor plus 525 bps with a 1% Libor floor.

Axilone sets Tuesday meeting

Axilone sets Tuesday meeting for a €405 million credit facility.

The deal includes a €50 million six-year senior secured first-lien revolver, a €265 million seven-year senior secured first-lien term loan and a €90 million 7.5-year senior secured second-lien term loan.

Lead arranger Barclays will act as the administrative agent. RBC Capital Markets LLC and Credit Suisse Securities (USA) LLC are also lead arrangers.

Proceeds will be used to finance the acquisition of the Ileos Group SAS and Ileos USA by Citic Capital Partners.

Epicor sets lender call

Epicor Software Corp. will hold a lender call at 1 p.m. ET on Monday to launch a repricing of its first-lien term loan.

Jefferies is the lead bank.

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