Transact, AppLovin break; Vizient tweaks term loan B; Twin River floats price talk

By Sara Rosenberg

New York, April 17 – Transact (RCP Vega Inc.) reduced pricing on its term loan from recently revised talk before freeing up for trading on Wednesday, and AppLovin Corp.’s incremental first-lien term loan broke as well.

In more happenings, Vizient Inc. lowered the spread on its term loan B, added a leverage-based step-down and tightened the original issue discount.

Also, Twin River Management Group Inc. came out with price talk on its term loan in connection with its bank meeting, and API Technologies Corp. revealed timing and structure for its buyout financing credit facilities.

Transact flexes

Transact trimmed the spread pricing on its $260 million seven-year covenant-lite first-lien term loan (B3/B) to Libor plus 475 basis points from revised talk of Libor plus 500 bps, which is still wider than initial talk of Libor plus 425 bps, a market source said.

The term loan still has a 50 bps step-down at B3/B- corporate ratings with a stable outlook, a 0% Libor floor, and original issue discount of 98.5 and 101 soft call protection for six months.

On Tuesday, when the first spread change was announced, the pricing step-down was added, the discount widened from 99 and some modifications were made to covenants.

Current corporate ratings are Caa1/B- with a stable outlook.

Recommitments were due at noon ET on Wednesday.

Transact frees up

Later in the session, Transact’s first-lien term loan broke for trading, with the debt seen at 99 bid, another source added.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc. and UBS Investment Bank are leading Transact’s term loan.

The new loan will be used to help fund the buyout of the company by Reverence Capital Partners LP from Blackboard Inc.

Closing is expected this quarter.

Transact is a Phoenix-based integrated payment and software solutions platform that facilitates mission-critical higher education student transactions.

AppLovin starts trading

AppLovin’s fungible $400 million incremental first-lien term loan (B+) emerged in the secondary market too, with levels quoted at par ¼ bid, par ¾ offered, according to a market source.

The incremental term loan is priced at Libor plus 375 bps with a step-down to Libor plus 350 bps when total leverage is 3.5 times and a 0% Libor floor. The debt was sold at an original issue discount of 99.75.

During syndication, the discount on the term loan was tightened from 99.5.

Bank of America Merrill Lynch and KKR Capital Markets are leading the deal that will be used to add cash to the balance sheet for acquisitions and investments.

AppLovin is a Palo Alto, Calif.-based mobile monetization platform that enables performance-based user acquisition campaigns for mobile game and other app developers.

Blackstone Mortgage levels

Also in trading, Blackstone Mortgage Trust Inc.’s $500 million seven-year senior secured term loan B was quoted at par bid, par ½ offered on Wednesday morning, after breaking for trading on Tuesday night, a market source remarked.

Pricing on the term loan B is Libor plus 250 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.

During syndication, the term loan B was upsized from $400 million, the spread firmed at the low end of the Libor plus 250 bps to 275 bps talk and the discount was modified from 99.5.

J.P. Morgan Securities LLC is the left lead on the deal that will be used for general corporate purposes, including investment portfolio growth.

Blackstone Mortgage Trust is a New York-based real estate finance company.

Vizient revised

Back in the primary market, Vizient trimmed pricing on its $500 million seven-year term loan B to Libor plus 275 bps from Libor plus 300 bps, added a 25 bps step-down at 3 times total net leverage 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.

The company’s $1.6 billion of senior secured credit facilities (Ba3/BB-) also include a $500 million revolver and a $600 million term loan A.

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

Barclays, Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the credit facilities that will be used with $300 million of notes to refinance existing debt.

Vizient is an Irving, Tex.-based network of not-for-profit health care organizations.

Twin River guidance

Twin River Management Group held its bank meeting on Wednesday afternoon and announced talk on its $350 million term loan B at Libor plus 300 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $600 million of credit facilities (BB) also include a $250 million revolver.

Commitments are due on May 2, the source added.

Citizens Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used with $350 million of bonds to refinance existing debt and for general corporate purposes.

Twin River is a Lincoln, R.I.-based owner and operator of casino resorts.

API on deck

API Technologies set a bank meeting for 10 a.m. ET in New York on Tuesday to launch $295 million of first-lien credit facilities split between a $50 million revolver and a $245 million first-lien term loan, according to a market source.

The company is also getting a $90 million privately placed second-lien term loan and a $50 million privately placed second-lien delayed-draw term loan, which will not be drawn at close.

RBC Capital Markets, UBS Investment Bank and Antares Capital are leading the deal that will be used to help fund the buyout of the company by AEA Investors from J.F. Lehman & Co.

Closing on the buyout is expected in May.

API is a Marlborough, Mass.-based provider of high-performance RF, microwave, millimeterwave, power and security solutions for defense, aviation, communications and other commercial and industrial end markets.

Ellie Mae closes

In other news, the buyout of Ellie Mae Inc. by Thoma Bravo LLC for $99.00 in cash per share, or about $3.7 billion, has been completed, a news release said.

To help fund the transaction, Ellie Mae got $1,425,000,000 of credit facilities consisting of a $75 million five-year revolver (B2/B/BB), a $965 million seven-year first-lien term loan (B2/B/BB) and a $385 million privately placed eight-year second-lien term loan.

Pricing on the first-lien term loan is Libor plus 400 bps with a 25 bps leveraged based step-down 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.

During syndication, the discount on the term loan was revised from 99.

Jefferies LLC, Macquarie Capital (USA) Inc. and Nomura led the debt.

Ellie Mae is a Pleasanton, Calif.-based cloud-based platform provider for the mortgage finance industry.

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