Datto, Qlik Technologies, Aptean, Quick Base free to trade; Blucora modifies discount

By Sara Rosenberg

New York, March 29 – Datto Inc. lowered the spread on its first-lien term loan and adjusted the original issue discount, and then then debt made its way into the secondary market on Friday.

Also, Qlik Technologies Inc. (Project Alpha Intermediate Holding Inc.) firmed pricing on its incremental term loan B at the low end of guidance before freeing up in the afternoon, and deals from Aptean and Quick Base broke as well.

In more happenings, Blucora Inc. tightened the original issue discount on its add-on term loan B, and Momentive Performance Materials Inc. (MPM Holdings Inc.) joined the near-term primary calendar.

Datto revised, breaks

Datto trimmed pricing on its $550 million seven-year covenant-lite first-lien term loan (B2/B) to Libor plus 425 basis points from talk in the range of Libor plus 475 bps to 500 bps and changed the original issue discount to 99.5 from 99, according to a market source.

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

Recommitments were due at 11 a.m. ET on Friday and the term loan emerged in the secondary market later in the day, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Datto is a Norwalk, Conn.-based provider of data protection and IT solutions to small and medium-sized businesses.

Qlik updated, trades

Qlik Technologies firmed the spread on its non-fungible $465 million incremental covenant-lite term loan B (B3/B) due April 26, 2024 at Libor plus 425 bps, the tight end of the Libor plus 425 bps to 450 bps talk, a market source said.

The term loan still has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

After terms finalized, the loan broke for trading, with levels quoted at 99¼ bid, 99¾ offered, a trader added.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of Attunity Ltd. for $23.50 in cash per share, or about $560 million.

Closing is expected during the week of May 6.

Qlik is a King of Prussia, Pa.-based data analytics company. Attunity is a Boston-based provider of data integration and big data management software solutions.

Aptean hits secondary

Aptean’s bank debt also freed to trade, with the $350 million seven-year covenant-lite first-lien term loan (B2/B-) quoted at 99¾ bid, par ¼ offered, a market source remarked.

Pricing on the first-lien term loan is Libor plus 425 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.

During syndication, the spread on the first-lien term loan firmed at the low end of the Libor plus 425 bps to 450 bps talk and the discount was revised from 99.

The company’s $650 million of credit facilities also include a $50 million five-year revolver, a $100 million privately placed covenant-lite delayed-draw first-lien term loan and a $150 million eight-year privately placed covenant-lite second-lien term loan.

Aptean being acquired

Aptean will use its new credit facilities to back a joint investment from TA Associates and Vista Equity Partners. TA Associates and Vista will be equal partners, each investing new equity to acquire Aptean from the separate Vista fund that initially invested in the company in 2012.

Golub Capital and Macquarie Capital (USA) Inc. are leading the debt.

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

Aptean is an Alpharetta, Ga.-based provider of mission-critical, industry-specific enterprise software solutions.

Quick Base frees up

Quick Base’s credit facilities began trading too, with the $275 million seven-year covenant-lite first-lien term loan (B1/B) seen at 99¾ bid, par ¼ offered, a market source said.

Pricing on the first-lien term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps based on leverage and a 0% Libor floor. The loan was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

On Thursday, pricing on the first-lien term loan was set at the low end of the Libor plus 400 bps to 425 bps talk, the step-down was added and the discount was tightened from 99.

The company’s $455 million of credit facilities also include a $40 million five-year revolver (B1/B) and a $140 million eight-year covenant-lite second-lien term loan that has been privately placed.

Quick Base leads

Golub Capital and Neuberger Berman are the joint lead arrangers and joint bookrunners on Quick Base’s first-lien deal. Carlyle Global Credit is acting as a joint lead arranger and administrative agent on the second-lien term loan.

The new debt will be used to help fund the buyout of the company by Vista Equity Partners.

Quick Base’s current investor, Welsh, Carson, Anderson & Stowe, is reinvesting in the company as part of the transaction.

Quick Base is a Cambridge, Mass.-based provider of platform-as-a-service application development tools that allow non-technical users to develop and deploy their own highly configurable apps that streamline a variety of day-to-day functions.

Blucora tweaks loan

Back in the primary market, Blucora revised the original issue discount on its fungible $125 million add-on term loan B due 2024 to 99.5 from 99, according to a market source.

The add-on term loan is priced at Libor plus 300 bps with a 1% Libor floor, in line with the existing term loan B.

Recommitments were due at noon ET on Friday, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used with cash on hand to fund the $180 million acquisition of 1st Global Inc.

Net leverage would be 2.7 times, based on pro forma 2018 EBITDA.

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

Blucora is an Irving, Texas-based provider of tax-smart financial solutions. 1st Global is a Dallas-based tax-focused wealth management company.

Momentive on deck

Momentive Performance Materials set a bank meeting for 10:30 a.m. ET in New York on Tuesday to launch a new loan transaction to existing and prospective lenders, a market source remarked.

BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are leading the deal that will be used with cash to fund the acquisition of the company by SJL Partners LLC, KCC Corp. and Wonik QnC Corp. for $32.50 per share. The transaction is valued at about $3.1 billion, including the assumption of net debt, pension and OPEB liabilities.

Closing is expected in the first half of 2019, subject to regulatory approvals and other customary conditions.

Momentive is a Waterford, N.Y.-based silicones and advanced materials company. KCC is a Seoul, South Korea-based chemicals manufacturer. Wonik is a Gumi, South Korea-based manufacturer and seller of quartz and ceramic wares used in the production of semiconductor wafers.

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