Mitel Networks, Gateway Casinos tweak deals; Intermedia moves up commitment deadline

By Sara Rosenberg

New York, July 12 – In the primary market on Thursday, Mitel Networks Corp. set spreads on its first-and second-lien term loans and tightened the issue price on the first-lien tranche, and Gateway Casinos & Entertainment Ltd. increased the size of its add-on term loan B and set the original issue discount at the narrow end of guidance.

Also, Intermedia accelerated the commitment deadline on its credit facilities, and naviHealth Inc., NVA Holdings Inc., Nautilus Power LLC, Parts Town (PT Holdings LLC) and Verra Mobility Inc. announced price talk with launch.

Mitel finalizes terms

Mitel Networks firmed pricing on its $1.12 billion seven-year first-lien term loan at Libor plus 450 basis points, the low end of the Libor plus 450 bps to 475 bps talk, and moved the original issue discount to 99.75 from 99.5, a market source remarked.

Additionally, the company set pricing on its $260 million eight-year second-lien term loan at Libor plus 875 bps, the high end of the Libor plus 850 bps to 875 bps talk, the source continued.

As before, the first-lien term loan has a 0% Libor floor and 101 soft call protection for six months, and the second-lien term loan has a 0% Libor floor, an original issue discount of 98 and hard call protection of 103 in year one, 102 in year two and 101 in year three.

Previously in syndication, the first-lien term loan was upsized from $1.02 billion. Also, the second-lien term loan was downsized from $360 million, the discount widened from 99 and the hard call protection was modified from 102 in year one and 101 in year two.

Mitel getting revolver

Along with the first-and second-lien term loans, Mitel’s $1.48 billion of senior secured credit facilities include a $100 million revolver.

Commitments are due at noon ET on Friday, accelerated from 5 p.m. ET on Friday, the source added.

Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and TD Securities (USA) LLC are leading the deal that will be used with up to $700 million of equity to fund the buyout of the company by Searchlight Capital Partners LP for $11.15 per common share in cash. The all-cash transaction is valued at about $2 billion, including net debt.

Closing is expected during the second half of this year, subject to customary conditions, including receipt of shareholder, regulatory and court approvals.

Mitel is an Ottawa-based provider of communications software solutions.

Gateway changes surface

Gateway Casinos raised its fungible add-on term loan B due March 13, 2025 to $105 million from $80 million and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The add-on term loan B is still priced at Libor plus 300 bps with a step-down to Libor plus 275 bps following an initial public offering and a 0% Libor floor, and still has 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Thursday, accelerated from 10 a.m. ET on Friday, the source said.

Morgan Stanley Senior Funding Inc. is leading the deal. BMO Capital Markets Corp. is the administrative agent.

The new debt will be used to fund the acquisition of the Ontario Central Gaming Bundle, which consists of two current sites, Georgian Downs and Casino Rama, and one future site, Wasaga Beach/Collingwood, to fund general corporate purposes and to pay related fees and expenses.

Gateway Casinos is a Burnaby, B.C.-based owner of gaming properties.

Intermedia revises deadline

Intermedia moved up the commitment deadline on its $285 million of credit facilities (B3/B) to 3 p.m. ET on Friday from Wednesday as a result of strong demand, a market source said.

The facilities consist of a $25 million five-year revolver and a $260 million seven-year term loan B.

Talk on the term loan B is Libor plus 575 bps to 600 bps with a 1% Libor floor, an original issue discount of 98 to 99 and 101 soft call protection for one year.

TD Securities (USA) LLC is leading the deal that will be used to refinance existing first- and second-lien term loans.

Intermedia, a Madison Dearborn Partners portfolio company, is a Mountain View, Calif.-based provider of Unified Communications as a Service and business cloud applications software.

naviHealth reveals talk

Also in the primary market, naviHealth came out with talk of Libor plus 425 bps to 450 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $425 million seven-year first-lien term loan that launched with a bank meeting on Thursday, according to a market source.

The company’s $525 million of credit facilities also include a $100 million five-year revolver.

Commitments are due at 5 p.m. ET on June 26, the source added.

Barclays, Morgan Stanley Senior Funding Inc., MUFG, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Natixis are leading the deal that will be used to fund a joint investment in the company by Clayton, Dubilier & Rice and Cardinal Health Inc.

Through the transaction, Clayton, Dubilier & Rice will acquire about a 55% stake in naviHealth while Cardinal will retain around a 45% interest. Also, Cardinal will have a call right to reacquire the business.

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

naviHealth is a Brentwood, Tenn.-based manager of post-acute benefits for health plans and a value-based care partner to health systems and providers.

NVA holds call

NVA Holdings hosted a lender call at 2 p.m. ET to launch a fungible $175 million incremental covenant-light term loan B due Feb. 2, 2025 talked with an original issue discount in the 98.5 area, a market source said.

Pricing on the incremental loan is Libor plus 275 bps with a 0% Libor floor, in line with the existing term loan, and the new debt has 101 soft call protection for six months, the source added.

Commitments are due at noon ET on Tuesday.

Bank of America Merrill Lynch, RBC Capital Markets, Jefferies LLC and Nomura are leading the deal that will be used to fund acquisitions under signed letters of intent, to refinance revolver borrowings and to add cash to the balance sheet for future acquisitions.

NVA is an Agoura Hills, Calif.-based owner of independent freestanding veterinary hospitals.

Nautilus guidance

Nautilus Power released original issue discount talk of 99.5 on its fungible $85 million add-on term loan B due May 16, 2024 that launched with a morning call, according to a market source.

Pricing on the add-on term loan is Libor plus 425 bps with a 1% Libor floor.

Commitments are due at noon ET on July 19, the source added, the source said.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used with new cash equity from sponsor Carlyle Power Partners to fund the $115 million acquisition of Rock Springs units 1 and 2 from Old Dominion Electric Cooperative.

Nautilus is a Massachusetts-based wholesale power generation and marketing company.

Parts Town details emerge

Parts Town held its lender call in the morning, launching a $28 million incremental first-lien term loan that is talked with an original issue discount of 99.5 to 99.75, a market source said.

The incremental term loan is priced at Libor plus 400 bps with a 1% Libor floor.

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

Jefferies LLC is leading the deal that will be used to back the acquisition of PartsXpress, the commercial foodservice equipment parts business division of Smart Care Equipment Solutions.

Parts Town is an Addison, Ill.-based OEM parts distributor and service provider to the foodservice equipment market.

Verra Mobility launches

Verra Mobility launched during the session a fungible $70 million incremental covenant-light term loan B due March 1, 2025 with original issue discount talk of 99.5 to 99.75, according to a market source.

Like the existing term loan, the incremental loan is priced at Libor plus 375 bps with a 0% Libor floor.

The incremental term loan has 101 soft call protection for six months, the source said.

Commitments and consents are due at noon ET on July 19.

Bank of America Merrill Lynch is the left lead on the deal that will be used to refinance a portion of the company’s second-lien term loan as part of the agreement to merge with Gore Holdings II, and to pay related fees and expenses.

Verra Mobility, formerly known as ATS Consolidated Inc., is a Mesa, Ariz.-based provider of tech-enabled smart transportation solutions.

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