Sivantos Group changes surface; World Triathlon shelved; Dynatrace, Electro Rent set talk

By Sara Rosenberg

New York, July 23 – On Monday, Sivantos Group (Auris Luxembourg III Sarl) firmed pricing on its U.S. and euro term loans, tightened the issue price on the euro piece, revised the ticking fees and reworked other terms on its loan transaction.

Additionally, World Triathlon Corp. put its credit facilities on hold, Dynatrace and Electro Rent Corp. released price talk with launch, and Lumentum Holdings Inc. and Newport Group joined this week’s primary calendar.

Sivantos tweaks deal

Sivantos Group set pricing on its €990 million equivalent U.S. dollar seven-year covenant-light term loan B (B2/B+) at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and on its €1.7 billion seven-year covenant-light term loan B (B2/B+) at Euribor plus 400 bps, the high end of the Euribor plus 375 bps to 400 bps talk, a market source said.

Also, the issue price on the euro loan was tightened to par from 99.5, the source continued.

Furthermore, the ticking fees on the term loans were revised to half the margin from days 31 to 75 and the full margin thereafter, from half the margin from days 61 to 90 and the full margin thereafter, the MFN was changed to 50 bps with no sunset from 75 bps with a 12 month sunset, the incremental was modified and the restricted payment starter basket was eliminated.

As before, the U.S. term loan has an original issue discount of 99.5, and both term loans have a 0% floor and 101 soft call protection for six months.

The company’s credit facilities also include a €200 million 6.5-year revolver (B2/B+).

Sivantos lead banks

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Goldman Sachs are leading Sivantos’ credit facilities, with JPMorgan the left lead on the U.S. loan and Deutsche the left lead on the euro loan.

Commitments are due at 10 a.m. ET on Tuesday, the source added.

The new debt will be used to fund the merger of Sivantos and Widex, both manufacturers and wholesalers of hearing aid devices, and to refinance existing debt.

The combined company will be based in Lynge, Denmark, and Singapore.

World Triathlon tabled

World Triathlon Corp. placed its $271 million of credit facilities (B2/B) on hold, according to a market source.

The facilities consisted of a $21 million revolver, and a $250 million term loan talked at launch at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

UBS Investment Bank was leading the deal that was going to be used to refinance existing debt.

World Triathlon is an owner and operator of Ironman triathlon events.

Dynatrace guidance

Also in the primary market, Dynatrace held its bank meeting on Monday and announced price talk on its $950 million seven-year first-lien term loan and $170 million eight-year second-lien term loan with its bank meeting on Monday, a market source remarked.

Talk on the first-lien term loan is Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps with a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, except initial public offering proceeds and change of control will be at 101 in year one, the source continued.

The company’s $1.18 billion of senior secured credit facilities, which will be used to refinance debt, also include a $60 million five-year revolver.

Commitments are due at 4 p.m. ET on Aug. 6, the source added.

Jefferies LLC is the left lead on the deal. Goldman Sachs Bank USA is a lead as well.

Dynatrace is a Waltham, Mass.-based digital performance management company.

Electro Rent floats OID

Electro Rent came out with original issue discount talk of 99.75 to par on its $34 million incremental covenant-light first-lien term loan (B2/B) due January 2024 that launched with an afternoon call, according to a market source.

The incremental first-lien term loan is priced at Libor plus 500 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and all of the first-lien term loan debt is getting 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that will be used with an $11 million privately placed incremental second-lien term loan to fund an acquisition.

The company is also seeking a one-time waiver of the ratio test restricting acquisitions to allow for the transaction and lenders are being offered a 15 bps amendment fee.

Commitments and consents are due by noon ET on Thursday.

Platinum Equity is the sponsor.

Electro Rent is a Van Nuys, Calif.-based provider of specialty testing and measurement equipment services.

Lumentum on deck

Lumentum set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $500 million seven-year covenant-light first-lien term loan that has a 0% Libor floor, according to a market source.

Commitments are due on Aug. 7, the source said.

Deutsche Bank Securities Inc. is leading the deal, which will be used to help fund the acquisition of Oclaro Inc. for $5.60 in cash and 0.0636 of a share of Lumentum common stock. The transaction values Oclaro at about $1.8 billion in equity value.

Closing is expected in the second half of this year, subject to approval by Oclaro’s stockholders, antitrust regulatory approval in the U.S. and China, and other customary conditions.

Lumentum is a Milpitas, Calif.-based provider of photonics products for optical networking and lasers for industrial and consumer markets. Oclaro is a San Jose, Calif.-based provider of optical components and modules for the long-haul, metro and data center markets.

Newport readies deal

Newport Group emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Thursday to launch $270 million of first-lien senior secured credit facilities, a market source said.

The facilities consist of a $30 million revolver and a $240 million first-lien term loan, the source added.

The company is also getting a $60 million second-lien term loan has been privately placed.

RBC Capital Markets, SunTrust Robinson Humphrey Inc., Capital One and Fifth Third are leading the deal that will be used to finance Kelso & Co.’s acquisition of a majority stake in the company.

Existing investors Stone Point Capital and management will retain a significant interest in the company.

Newport Group is a Walnut Creek, Calif.-based provider of retirement services and consulting services related to retirement plans.

Consolidated Aero filling up

In other news, Consolidated Aerospace Manufacturing LLC’s $125 million add-on term loan (B+) is already close to full subscribed ahead of Friday’s commitment deadline, according to a market source.

The add-on term loan is priced at Libor plus 375 bps with a 1% Libor floor, in line with the existing term loan, and is being talked with an original issue discount of 99.5 and 101 soft call protection for six months.

Citizens Bank is leading the deal that will be used to help fund the acquisition of an engine component manufacturer.

Consolidated Aerospace is a manufacturer of components principally for the aerospace industry.

VetCor holds steady

Moving to the secondary market, VetCor Professional Practices LLC’s $450 million seven-year first-lien term loan (B2/B) was quoted at 99¾ bid, par ¼ offered on Monday, in line with where it broke for trading on Friday, a market source remarked.

Pricing on the first-lien term loan is Libor plus 300 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The company’s $830 million of senior secured credit facilities also provide for a $50 million five-year revolver (B2/B), a $95 million pre-placed delayed-draw first-lien term loan (B2/B), a $195 million eight-year pre-placed second-lien term loan (Caa2/CCC+) and a $40 million pre-placed delayed-draw second-lien term loan (Caa2/CCC+).

Included in the second-lien term loan is hard call protection of 102 in year one and 101 in year two.

The delayed-draw term loans have a 24-month commitment period.

Jefferies LLC and Golub Capital are leading the deal that will be used to fund the buyout of the company by Oak Hill Capital Partners.

VetCor is a Hingham, Mass.-based owner and operator of veterinary hospitals.

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