UFC changes emerge; Adient revises deadline; BGIS sets guidance; near-term calendar builds

By Sara Rosenberg

New York, April 22 – In the primary market on Monday, UFC modified the original issue discount and maturity on its add-on first-lien term loan B, and launched an amendment and extension proposal for its existing term loan B and revolving credit facility.

Also, Adient plc accelerated the commitment for its term loan B, and BGIS (Brookfield Global Integrated Solutions) came out with size and price talk for its first-lien term loan in connection with its bank meeting.

In addition, JBS USA Lux SA, Charter NEX US Inc., II-VI Inc., Tamko Building Products, Flexera Software LLC, Wheel Pros LLC, NVA Holdings Inc. and Kontoor Brands Inc. all joined this week’s primary calendar.

UFC reworked

UFC changed the original issue discount on its fungible $435 million add-on first-lien term loan B (B2/B+) to 99.75 from talk in the range of 99 to 99.5, according to a market source.

Furthermore, the company is now asking that the maturity on the add-on first-lien term loan B and the existing $1,442,000,000 first-lien term loan B be revised to April 2026 from August 2023, and the maturity on the existing revolver be extended to April 2024 from 2021, the source said.

Extending lenders are being offered a 12.5 bps fee, the source added.

As before, pricing on the add-on loan matches existing term loan B pricing at Libor plus 325 basis points with a 1% Libor floor, and all of the term loan B debt is getting 101 soft call protection for six months.

Recommitments and amendment and extension signature pages are due at 5 p.m. ET on Tuesday.

Goldman Sachs Bank USA is the left lead on the deal.

The add-on loan will be used to refinance the company’s existing $425 million second-lien term loan due 2024.

UFC is a Las Vegas-based mixed martial arts organization and pay-per-view event provider.

Adient accelerated

Adient moved up the commitment deadline for its $750 million five-year covenant-lite term loan B (Ba2/BB-) to Wednesday from noon ET on Friday, a market source remarked.

Talk on the term loan B is Libor plus 450 bps with a 0% Libor floor and an original issue discount of 99.

BofA Merrill Lynch is the left lead on the loan that will be used with an asset-based revolving credit facility and $750 million of senior secured notes to refinance the company’s existing credit facilities.

Adient is a Plymouth, Mich.-based manufacturer of automotive seating.

ION moves deadline

ION Investment Group pushed the commitment deadline for its $2.2 billion equivalent U.S. and euro term loan to April 30 from April 24 to accommodate holidays in the United States and Europe, a market source said.

Price talk on the U.S. term loan is Libor plus 550 bps with a 0% Libor floor and an original issue discount of 98.5, and talk on the euro term loan is Euribor plus 500 bps with a 1% floor and a discount of 98.5.

UBS Investment Bank is leading the deal that will be used for the refinancing of ION’s corporates division, which include Openlink Financial LLC, Wall Street Systems, Triple Point Technology and Allegro.

ION is a provider of mission-critical trading and workflow automation software solutions to financial institutions, central banks, governments and corporations.

BGIS reveals talk

BGIS held its bank meeting on Monday afternoon, launching a $455 million seven-year senior secured covenant-lite first-lien term loan (B1/B) at talk of Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on May 2, the source said.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., BMO Capital Markets, TD Securities (USA) LLC and MUFG are leading the deal that will be used to help fund the buyout of the company by CCMP Capital Advisors LP from Brookfield Business Partners for about $1 billion.

Closing is expected during the week of May 27, subject to customary conditions.

BGIS is an integrated facilities management company.

JBS joins calendar

Also in the primary market, JBS USA scheduled a lender call for Tuesday to launch a $1.9 billion seven-year term loan B, a market source remarked.

Commitments are due at 5 p.m. ET on Thursday, the source added.

Barclays is the left lead on the deal that will be used to refinance an existing term loan B due 2022.

JBS is a Greeley, Colo.-based animal protein products processing company.

Charter NEX sets meeting

Charter NEX plans to hold a bank meeting at 10:30 a.m. ET on Wednesday to launch $685 million of incremental bank debt, split between a $25 million incremental revolver due May 16, 2022 and a $660 million non-fungible incremental first-lien term loan due May 16, 2024, according to a market source.

The incremental term loan has 101 soft call protection for six months, the source said.

Jefferies LLC and Nomura are leading the deal that will be used to fund an acquisition.

Charter NEX is a manufacturer of highly engineered specialty films, focused on the stable food and medical end-markets.

II-VI on deck

II-VI will hold a bank meeting at 1:30 p.m. ET on Tuesday to launch its $800 million seven-year covenant-lite term loan B (B1//BB+), a market source said.

BofA Merrill Lynch, PNC Bank, BMO Capital Markets, Citizens Bank, Fifth Third, MUFG, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are leading the deal that will be used to help fund the acquisition of Finisar Corp. for $15.60 per share in cash and 0.2218x shares of II-VI common stock. The transaction is valued at about $3.2 billion.

Others funds for the transaction will come from $1 billion of combined balance sheet cash, a $450 million five-year revolver and a $1,175,000,000 five-year term loan A. Initial pricing on the revolver and term loan A is Libor plus 200 bps.

Net total leverage at close is expected to be around 3.5 times.

Closing is targeted for midyear, subject to regulatory approvals and other customary conditions.

The revolver and term loan A already closed but will not fund until completion of the acquisition.

II-VI is a Saxonburg, Pa.-based engineered materials and optoelectronic components company. Finisar is a Sunnyvale, Calif.-based optical communications company.

Tamko launching soon

Tamko Building Products scheduled a bank meeting for Tuesday to launch a $600 million term loan B (BB-), a market source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to fund a recapitalization and a distribution to existing shareholders.

Carlyle Global Partners is becoming a minority investor in the company.

Tamko is a Joplin, Mo.-based manufacturer of residential roofing products, decking and railing products, waterproofing, cements, and coatings.

Flexera readies deal

Flexera set a lender call for 2 p.m. ET on Tuesday to launch $260 million of incremental term loans and a corresponding amendment, according to a market source.

The debt is split between a $220 million incremental first-lien term loan and a $40 million incremental second-lien term loan, the source said.

Jefferies LLC is leading the loans that will be used for a recapitalization.

Flexera is an Itasca, Ill.-based provider of software and services that enable software publishers and device makers to install, enforce and deploy software licenses.

Wheel Pros timing

Wheel Pros surfaced with plans to hold a bank meeting at 10 a.m. ET on Thursday to launch its previously announced $326 million incremental first-lien term loan, a market source said.

The company is also getting a $90 million privately placed incremental second-lien term loan.

UBS Investment Bank, Antares Capital, Deutsche Bank Securities Inc. and ING are leading the debt that will be used to fund a transformative acquisition.

Pro forma EBITDA will be about $130 million, first-lien leverage will be around 4.25 times and total leverage will be about 5.5 times.

Wheel Pros is a distributor of proprietary branded wheels and performance tires.

NVA coming soon

NVA Holdings will hold a lender call at 10 a.m. ET on Tuesday to launch a non-fungible $200 million incremental first-lien term loan (B) due February 2025, according to a market source.

BofA Merrill Lynch is the left lead on the deal that will be used to fund acquisitions under signed letters of intent, to refinance revolver borrowings and to fund cash to the balance sheet for future acquisitions.

NVA is an Agoura Hills, Calif.-based owner of independent freestanding veterinary hospitals.

Kontoor plans meeting

Kontoor Brands set a bank meeting for 11 a.m. ET on Tuesday to launch a $300 million seven-year covenant-lite term loan B that has 101 soft call protection for six months, a market source remarked.

Commitments are due on May 7, the source added.

J.P. Morgan Securities LLC and Barclays are leading the loan that will be used with a $750 million term loan A to fund the company’s spinoff from VF Corp. and for general corporate purposes.

Closing is expected in the first half of this year, subject to customary conditions.

Kontoor Brands is a Greensboro, N.C.-based jeanswear company.

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