SS&C, Leidos, Canam, Eastern Power, Alion break; Cushman & Wakefield, Dresser tweak deals

By Sara Rosenberg

New York, Aug. 16 – A couple of deals made their way into the secondary market on Thursday, including SS&C Technologies Inc., Leidos Innovations Corp., Canam, Eastern Power LLC and Alion Science & Technology Corp.

Meanwhile, in the primary market, Cushman & Wakefield increased the spread on its term loan B, and Dresser Natural Gas Solutions lowered pricing on its first-lien term loan, added a step-down and revised the original issue discount.

SS&C tops OID

SS&C Technologies’ $875 million incremental first-lien term loan B-5 (Ba3/BB) due April 2025 began trading, with levels seen at par bid, par 3/8 offered, a market source remarked.

Pricing on the incremental loan is Libor plus 250 bps with a 25 bps step-down at senior secured net leverage of less than 4.75 times and a 0% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection until October.

During syndication, the incremental loan was downsized from $950 million, revised to be a new tranche from an add-on to the term loan B-3 and the discount was tightened from talk in the range of 99 to 99.5.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used to help fund the acquisition of Eze Software, a Boston-based provider of investment technology, from TPG Capital for $1.45 billion.

The loan was downsized because the company decided to use more cash for the acquisition.

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

SS&C is a Windsor, Conn.-based provider of investment and financial software-enabled services and software for the financial services and healthcare industries.

Leidos hits secondary

Leidos Innovations’ $1,108,900,000 covenant-light term loan B due Aug. 22, 2025 freed up too, with levels quoted at par 1/8 bid, par ½ offered, according to a market source.

Pricing on the term loan B is Libor plus 175 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The company’s $2,759,300,000 of senior secured credit facilities also include a $750 million revolver, a $635 million term loan A and a $265.4 million term loan A-5.

Citigroup Global Markets Inc. is leading the deal that will be used to amend and extend existing credit facilities. The term loan B is being extended by two years.

As part of the amendment, the permitted receivables covenant is being changed to provide clarification and allow such program not to exceed $400 million, versus $100 million currently, the senior secured leverage ratio is being changed to provide for the ability to net cash up to $350 million, and the leverage ratio is being modified to a net leverage ratio with the ability to net cash up to $350 million.

Closing is expected on Aug. 22.

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

Canam frees up

Canam’s $316.8 million covenant-light term loan B (B3/B) due June 30, 2024 emerged in the secondary market as well, with levels quoted at par ½ bid, 101½ offered, a trader said.

Pricing on the loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 hard call protection until June 2019 and 101 soft call protection until December 2019.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice and amend an existing term loan B due June 30, 2024.

Closing is expected during the week of Aug. 20.

Canam is a Quebec-based fabricator of steel components.

Eastern Power breaks

Eastern Power’s $200 million add-on term loan B (B1/BB-) due Oct. 2, 2023 also freed to trade, with levels quoted at 99¾ bid, par ¼ offered, according to a trader.

Pricing on the add-on term loan is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and MUFG are leading the deal that will be used to make a special dividend and to pay fees and transaction costs.

The company is also amending its existing credit facility for which lenders are getting a 25 bps consent fee.

Closing is expected on Tuesday.

Eastern Power is an owner of gas-fired electric generating stations.

Alion starts trading

Alion Science & Technology’s $124.2 million add-on first-lien term loan (B1/B) broke for trading and was quoted at par 1/8 bid, par 5/8 offered, a market source said.

Pricing on the add-on term loan matches existing term loan pricing at Libor plus 450 bps with a 1% Libor floor, and the new debt was issued at par.

On Wednesday, the issue price on the add-on term loan was revised from 99.5.

UBS Investment Bank, RBC Capital Markets, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the deal that will be used to help fund the acquisition of MacAulay-Brown Inc., a Dayton, Ohio-based provider of complex engineering and mission critical technology solutions and services for national security missions across Department of Defense and Intelligence Community customers.

Other funds for the transaction will come from a $43 million privately placed add-on to the company’s mezzanine notes and additional contributed equity.

Alion, a portfolio company of Veritas Capital, is a McLean, Va.-based research and development, IT and operational services company.

Cushman flexes

Switching to the primary market, Cushman & Wakefield lifted pricing on its $2.85 billion seven-year term loan B (B1/BB-) to Libor plus 325 bps from talk in the range of Libor plus 275 bps to 300 bps, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source said.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to refinance existing debt.

Cushman & Wakefield is a Chicago-based commercial real estate services company.

Dresser sets changes

Dresser Natural Gas Solutions trimmed the spread on its $150 million seven-year first-lien term loan to Libor plus 425 bps from Libor plus 450 bps, added a step-down to Libor plus 400 bps and adjusted the original issue discount to 99.5 from 99, according to a market source.

As before, the first-lien term loan has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at the end of the day on Thursday, the source said.

The company’s $235 million of credit facilities also include a $35 million five-year revolver and a $50 million privately placed eight-year second-lien term loan.

BNP Paribas Securities Corp. is leading the deal that will be used to help fund the buyout of the company by First Reserve from Baker Hughes.

Dresser Natural Gas is an original equipment manufacturer of commercial and industrial natural gas meters and pipeline repair products.

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