Formula 1 launches $2.9 billion, NCI sets talk, PetVet bank meeting Tuesday

By Paul A. Harris

Portland, Ore., Jan. 22 – In a 101 bid loan market, accounts appear restive at the notion that they are facing another wave of repricings, a trader said on Monday.

Whether that wave will be distinguishable from the last wave or the present wave might be debated, the source said, adding that the leveraged loan market seems to be in the throes of an ongoing tide of repricings.

Meanwhile hedge fund activity causes some movement among higher beta loan paper, but it doesn't seem to amount to much, the trader said.

Last week the loan paper of Eastman Kodak Co. traded up to the mid-90s, the trader recounted, but added that it subsequently traded back down to the low 90s.

The primary market continues to operate at flank speed, fueled primarily by the aforementioned repricings.

Formula 1 launched a $2,902,000,000 first-lien term loan refinancing on a Monday.

NCI Building Systems, Inc. set talk for its $415 million covenant light first-lien term loan (Ba3/BB+) at Libor plus 225 basis points to 250 bps.

And PetVet Care Centers, LLC will hold a bank meeting on Tuesday for a $935 million credit facility in five tranches.

Formula 1 launches $2.9 billion

Formula 1, a subsidiary of Delta Topco Ltd., launched a $2,902,000,000 first-lien term loan refinancing on a Monday call with lenders.

The deal launched at a 250 basis points spread to Libor atop a 1% Libor floor at 99.75 to 99.875. There are six months of soft call protection at 101.

Commitments are due Jan. 29.

J.P. Morgan Securities LLC is the lead.

The refinancing, which encompasses $3,303,000,000 Formula 1 (Delta Topco) first-lien term loan debt, also involves the repayment of $400 million of that debt using a combination of excess cash on the balance sheet and loans under the first-lien revolving credit facility, subject to obtaining necessary consents and funding of the relevant loans, according to a Monday press release.

As of Dec. 31, 2017, the first-lien revolver was undrawn.

In February 2017 Formula 1 priced a $3.15 billion first-lien term loan at Libor plus 325 bps with a step-down to Libor plus 300 bps after six months and if a B2 corporate rating was achieved. There was a 1% Libor floor, and the deal came at an original issue discount of 99.5.

In July of 2017 Formula 1 did a $200 million add-on to the loan with the same spread and ratings contingency.

On July 20 Moody's affirmed the B2 rating.

Hence the present loan would decrease Formula 1's interest rate by 50 bps, to 250 bps from 300 bps.

NCI talk 225 bps to 250 bps

NCI Building Systems set talk for its $415 million covenant light first-lien term loan (Ba3/BB+) at Libor plus 225 bps to 250 bps.

The loan has an original issue discount of 99.5 and a 0% Libor floor.

NCI launched the loan at a bank meeting on Monday.

The term loan also has a seven-year maturity and 101 soft call protection for six months.

Credit Suisse is the lead bank.

Commitments are due by 5 p.m. ET on Feb. 2.

Proceeds from the new facility will be used to refinance NCI’s existing term loan and ABL facility and to redeem its $250 million of 8¼% senior notes due 2023. NCI issued a call for the notes on Friday.

Lumileds $1.38 billion repricing

Lumileds (Bright Bidco BV) will hold a lender call at 10:30 a.m. ET on Tuesday for a repricing of its $1,383,000,000 term loan B due June 30, 2024 (Ba3/B+).

The repriced loan is talked at Libor plus 350 basis points to Libor plus 375 bps and will be offered at par.

The 1% Libor floor will be left unchanged but the 101 soft call protection for six months will be refreshed with the repricing.

Deutsche Bank and Credit Suisse are bookrunners with Deutsche Bank on the left.

PetVet bank meeting Tuesday

PetVet Care Centers will hold a bank meeting at 10 a.m. ET on Tuesday for a $935 million credit facility in five tranches.

The facility includes a $75 million revolver, a $470 million first lien term loan, a $125 million first-lien delayed-draw term loan, a $215 million second-lien term loan and a $50 million second-lien delayed-draw term loan.

The first-lien term loans have a seven-year maturity and soft call protection at 101 for six months. The second-lien loans have an eight-year maturity and hard call at 102, then 101.

Jefferies and KKR Capital Markets are leading the deal with Jefferies on the left.

Proceeds will be used to help fund the buyout of the company by KKR from Ontario Teachers’ Pension Plan, L Catterton and other existing shareholders.

Atkore $425 million incremental loan

Atkore International, Inc. plans to launch a $425 million incremental term loan B with a lender call on Tuesday.

The new loan is being offered with an original issue discount of 99.5.

The coupon of Libor plus 300 basis points, the 1% Libor floor and the Dec. 22, 2023 maturity match the existing loan.

The loan will amortize in equal quarterly installments at 1% of the original principal amount per year, with the balance due at maturity.

Deutsche Bank is the left bookrunner for the new loan.

Proceeds will be used to fund a stock repurchase and to prepay all or a portion of the loans outstanding under the company’s asset-based loan facility.

MyEyeDr. $600 million launch Wednesday

MyEyeDr. the business name for Capital Vision Services LLC, will hold a bank meeting at 11 a.m. ET on Wednesday for a $600 million credit facility.

The facility includes a $440 million senior secured first-lien term loan and a $160 million senior secured second-lien term loan.

Goldman Sachs is left lead arranger, and RBC Capital Markets, Credit Suisse, Barclays, Jefferies and Golub are also lead arrangers.

Proceeds will be used to refinance debt.

ASG Technologies repricing

ASG Technologies Group, Inc. will hold a lender call at 2 p.m. ET on Tuesday to launch a repricing of its $299 million first-lien term loan due July 2024 (B2/B).

The repricing is talked at Libor plus 350 basis points to 375 bps, down from the current Libor plus 475 bps with a stepdown to Libor plus 450 bps.

The repriced loan is offered at par and has 101 soft call protection for six months.

Commitments are due by 12 p.m. ET on Jan. 26.

Credit Suisse is the lead.

EIG launches $220 million

EIG Management Co. LLC launched a $220 million term loan at Libor plus 400 basis points to 425 bps atop a 1% Libor floor at 99.5 during a Monday bank meeting.

The deal comes with 101 soft call protection for six months.

Commitments are due on Feb. 1.

J.P. Morgan Securities LLC is the lead.

The Washington, D.C.-based financial services provider plans to use the proceeds to refinance its existing term loan and to provide funding for a joint venture with Philadelphia-based asset manager FS Energy and Power Fund.

Epicor Software sets talk

Epicor Software Corp. set talk on the repricing of its first-lien term loan at Libor plus 325 basis points to Libor plus 350 bps, to be offered at par, according to a market source.

The Libor floor is 0%.

Epicor launched the repricing with a lender call on Monday.

Consents and new orders are due by 4 p.m. ET on Thursday.

Jefferies is the lead bank.

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