Innovative Water Care, Neustar revisions surface; MYOB sets talk; near-term calendar builds

By Sara Rosenberg

New York, Feb. 25 – Innovative Water Care Global Corp. increased the size of its first-lien term loan on Monday, firmed pricing on the first-lien loan, as well as on its second-lien loan, at the high side of guidance, and modified Libor floors and issue prices on both tranches.

Another deal to disclose changes during the session was Neustar Inc., as the company widened the spread and original issue discount on its incremental term loan.

In other news, MYOB released price talk on its U.S. first-lien term loan in connection with its bank meeting, and Travelport Worldwide Ltd., Quorum Business Solutions (QBS Parent Inc.), Equinox Holdings Inc. and Spring Education Group joined this week’s primary calendar.

Innovative Water reworked

Innovative Water Care raised its seven-year first-lien term loan to $360 million from $350 million, set the spread at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk, and changed the original issue discount to 95 from 98, a market source said.

Additionally, pricing on the company’s $100 million eight-year second-lien term loan firmed at Libor plus 900 bps, the wide end of the Libor plus 875 bps to 900 bps talk, and the discount was modified to 90 from 97, the source continued.

Furthermore, the Libor floor on both term loans was revised to 1% from 0%.

The first-lien term loan still has 101 soft call protection for one year, and the second-lien term loan still has hard call protection of 102 in year one and 101 in year two.

Innovative Water leads

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Nomura and BMO Capital Markets are leading the term loans, with Bank of America the left lead on the first-lien loan and Citigroup the left lead on the second-lien loan.

Allocations are targeted for Tuesday afternoon, the source added.

The new debt will be used to help fund the buyout of the company by Platinum Equity from Lonza Group for $630 million.

Closing is expected this quarter, subject to customary conditions.

Innovative Water is an Alpharetta, Ga.-based provider of water treatment solutions and residential pool care products.

Neustar tweaks deal

Neustar raised pricing on its non-fungible $200 million incremental covenant-light term loan (B1/BB-) due August 2024 to Libor plus 450 bps from talk in the range of Libor plus 400 bps to 425 bps and changed the original issue discount to 98 from talk in the range of 98.5 to 99, according to a market source.

The incremental term loan has 101 soft call protection for one year.

Bank of America Merrill Lynch is leading the deal that will be used to refinance an existing term loan due January 2020 and for general corporate purposes.

Neustar is a Sterling, Va.-based provider of real-time information services.

MYOB reveals guidance

MYOB held its bank meeting on Monday morning and announced price talk of Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 99 on its $486 million seven-year covenant-light first-lien term loan, a market source remarked.

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

Commitments are due at noon ET on March 8.

Credit Suisse Securities (USA) LLC, KKR Capital Markets, Jefferies LLC, Macquarie Capital (USA) Inc., Credit Agricole, Natixis and Crescent are leading the deal that will help fund the buyout of the company by KKR.

Along with the U.S. term loan, the company is getting an A$50 million revolver, a A$250 million first-lien term loan, a A$75 first-lien delayed-draw term loan, a A$145 second-lien term loan and a A$25 million second-lien delayed-draw term loan.

MYOB is an Australia-based provider of online business management solutions.

Travelport readies loans

In more happenings, Travelport emerged with plans to hold a bank meeting on Thursday to launch $3.3 billion of term loans, according to a market source.

The debt consists of a $2.8 billion seven-year covenant-light first-lien term loan and a $500 million eight-year covenant-light second-lien term loan, the source said.

Based on filings with the Securities and Exchange Commission, the company is also expected to get a $150 million revolver.

Bank of America Merrill Lynch, Deutsche Bank Securities, Macquarie Capital (USA) Inc., Credit Suisse Securities and Barclays are leading the debt, which will be used with up to $1.08 billion of equity to fund the buyout of the company by Siris Capital Group LLC and Evergreen Coast Capital Corp. for $15.75 per share in cash. The transaction is valued at about $4.4 billion.

Closing is expected in the second quarter, subject to customary conditions, including approval by Travelport shareholders and receipt of required regulatory approvals.

Travelport is a Langley, U.K.-based travel technology company.

Quorum joins calendar

Quorum Business Solutions set a lender call for 1:30 p.m. ET on Tuesday to launch a $90 million covenant-light incremental first-lien term loan due September 2025 that is talked with a 0% Libor floor and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on March 8, the source said.

Credit Suisse Securities and Macquarie Capital (USA) Inc. are leading the loan, which will be used to fund the acquisition of Coastal Flow Measurement.

Quorum is a provider of software to energy companies.

Equinox coming soon

Equinox Holdings schedule a lender call for Tuesday to launch a non-fungible $200 million incremental term loan (B1), a market source said.

Bank of America Merrill Lynch is leading the deal that will be used for capital expenditures associated with new club openings and for general corporate purposes.

Equinox is a New York-based exercise and fitness company.

Spring Education on deck

Spring Education Group is expected to hold a lender call on Wednesday to launch a $106 million incremental first-lien term loan, according to a market source.

Macquarie Capital (USA) Inc. is leading the deal that will be used to fund the acquisition of schools.

Spring Education, a Primavera Capital Group portfolio company, is a provider of pre-K through 12th grade education.

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