Information Resources breaks; Celestica, Talbots, Ring Container release deal updates

By Sara Rosenberg

New York, Nov. 9 – Information Resources Inc.’s (IRI Holdings Inc.) credit facilities emerged in the secondary market on Friday, with the first-lien term loan quoted above its original issue discount.

Over in the primary market, Celestica Inc. reduced the size of its term loan B, increased the spread and finalized the original issue discount at the wide end of guidance, and Talbots Inc. sweetened the spread and issue price on its term loan B.

Also, Ring Container Technologies Group LLC firmed the original issue discount on its incremental first-lien term loan at the tight end of talk, and Imperva Inc. and Office Depot Inc. came out with pricing guidance on their loan transactions with launch.

Additionally, Global Tel*Link Corp. Inc., Jason Inc., Avantor and Perimeter Solutions LP surfaced with new deal plans.

IRI frees to trade

Information Resources’ credit facilities began trading on Friday, with the $1.21 billion seven-year first-lien term loan (B2/B-) quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 450 basis points with a 25 bps leverage-based step-down and a 0% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for one year.

During syndication, the spread on the first-lien term loan was increased from talk in the range of Libor plus 375 bps to 400 bps, the discount was revised from 99.5 and the call protection was extended from six months.

The company’s $1.68 billion of senior secured credit facilities also include an $80 million five-year revolver (B2/B-) and a $390 million privately placed eight-year senior secured second-lien term loan (Caa2/CCC).

Jefferies LLC and Nomura are leading the deal that will be used to help fund the buyout of the company by Vestar Capital and select co-investors.

Information Resources is a Chicago-based provider of big data, predictive analytics and forward-looking insights that help companies grow their businesses.

Celestica changes emerge

Switching to the primary market, Celestica trimmed its non-fungible covenant-light term loan B due June 27, 2025 to $250 million from $350 million, raised pricing to Libor plus 250 bps from Libor plus 225 bps, and set the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source remarked.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Allocations are expected on Tuesday.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of Impakt Holdings LLC for $329 million from Graycliff Partners, to pay related fees and expenses and for general corporate purposes.

The company will use its revolver for the remainder of the financing as a result of the term loan B downsizing, the source added.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

Celestica is a Toronto-based designer and manufacturer of electronic components. Impakt is a Santa Clara, Calif.-based provider of manufacturing solutions for the display, semiconductor, solar and other capital equipment industries.

Talbots reworked

Talbots lifted pricing on its $420 million five-year covenant-light term loan B (B2/B-) to Libor plus 700 bps from talk in the range of Libor plus 625 bps to 650 bps and adjusted the original issue discount to 98 from 99, a market source said.

The loan still has a 0% Libor floor and is non-callable for one year, then at 102 in year two and par thereafter.

Bank of America Merrill Lynch and KKR Capital Markets are leading the deal that will be used to refinance existing first- and second-lien term loans.

Talbots is a Hingham, Mass.-based multi-channel retailer of women’s apparel.

Ring Container updated

Ring Container Technologies Group firmed the original issue discount on its fungible $65 million incremental covenant-light first-lien term loan (B2/B) due Oct. 31, 2024 at 99.25, the tight end of the 99 to 99.25 talk, according to a market source.

Like the existing loan, the incremental term loan is priced at Libor plus 275 bps with a 0% Libor floor.

The incremental loan has 101 soft call protection for six months.

Bank of America Merrill Lynch, BMO Capital Markets and Antares Capital are leading the deal that will be used to refinance an existing second-lien term loan.

Ring Container is an Oakland, Tenn.-based manufacturer of plastic containers for dressings, sauces, oils, spreads and other related products.

Imperva guidance

Imperva held its bank meeting on Friday morning and announced price talk on its $760 million seven-year covenant-light first-lien term loan (B-/B+) and $290 million eight-year covenant-light second-lien term loan (CCC/CCC+), according to a market source.

The first-lien term loan is talked at Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $1.15 billion of senior secured credit facilities also include a $100 million revolver (B-/B+).

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

Imperva lead banks

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Citigroup Global Markets Inc., Jefferies LLC, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading Imperva’s credit facilities, with Bank of America left on the first-lien loan and Goldman left on the second-lien loan.

The new debt will be used with equity to fund the buyout of the company by Thoma Bravo LLC for $55.75 per share in cash in a transaction valued at about $2.1 billion.

Closing is expected late in the fourth quarter or early in the first quarter of 2019, subject to approval by Imperva’s stockholders and regulatory authorities and the satisfaction of customary conditions.

Imperva is a Redwood Shores, Calif.-based provider of best-in-class cybersecurity solutions on-premises, in the cloud and across hybrid environments.

Office Depot sets talk

Office Depot released talk of Libor plus 525 bps to 550 bps with a 1% Libor floor and a par issue price on its $500 million senior secured first-lien term loan B due November 2022 that launched with a morning lender call, a market source said.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan B down from Libor plus 700 bps with a 1% Libor floor.

The repriced term loan B has 101 hard call protection through Nov. 8, 2019 and amortization of 10% per annum, which matches the call protection and amortization on the existing term loan B, the source said.

Commitments are due on Nov. 19, the source added.

Office Depot is a Boca Raton, Fla.-based provider of office supplies and business products and services.

Global Tel readies loan

In more primary happenings, Global Tel*Link set a lender call for 1 p.m. ET on Tuesday to launch a $940 million seven-year covenant-light first-lien term loan (B2/B) talked at Libor plus 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Nov. 20, the source said.

Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the deal that will be used with a $260 million pre-placed second-lien term loan to refinance existing debt.

Global Tel*Link is a Reston, Va.-based provider of technology solutions to the corrections industry.

Jason on deck

Jason will hold a lender call at 11 a.m. ET on Tuesday to launch $383 million of term loans, a market source said.

The debt consists of a $293 million covenant-light first-lien term loan due June 2024 talked at Libor plus 500 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year, and a $90 million covenant-light second-lien term loan due June 2025 talked at Libor plus 900 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source continued.

Commitments from existing lenders are due at 5 p.m. ET on Nov. 16 and commitments from new lenders are due at noon ET on Nov. 20.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are leading the deal that will be used to amend and extend by three years existing first-and second-lien term loans. The existing first-lien term loan is priced at Libor plus 450 bps with a 1% Libor floor and the existing second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor.

Jason is a Milwaukee, Wis.-based diversified manufacturer of finishing, components, seating and acoustic products and solutions to industrial, energy, heavy fabrication, off-highway equipment and transportation markets.

Avantor joins calendar

Avantor will hold a lender call at 11 a.m. ET on Tuesday to launch a $1,938,000,000 term loan B and a €993 million term loan B, a market source remarked.

Goldman Sachs Bank USA is leading the deal that will be used to reprice existing U.S. and euro term loans.

Avantor is a Radnor, Pa.-based provider of integrated, tailored solutions for the life sciences and advanced technology industries.

Perimeter Solutions repricing

Perimeter Solutions set a lender call for 10:30 a.m. ET on Tuesday to launch a $542 million first-lien term loan B (B1/B+/BB+) due March 2025, according to a market source.

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

Barclays, Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are leading the deal that will be used to reprice an existing first-lien term loan B.

Perimeter Solutions, formerly known as Invictus, is a St. Louis-based formulator and manufacturer of fire management chemicals.

TRC allocates

TRC Cos. Inc. allocated on Friday its fungible $49 million incremental first-lien term loan (B2/B) due June 2024, a market source said.

Pricing on the incremental loan is Libor plus 350 bps with a 1% Libor floor and it was issued at par.

During syndication, the incremental term loan was upsized from $43 million.

UBS Investment Bank is leading the deal that will be used to refinance existing debt and for general corporate purposes.

TRC is a Windsor, Conn.-based engineering, environmental consulting and construction management firm.

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