Idera breaks; Distribution tweaked; CoreCivic, Compuware, Unifrax, McAfee float talk

By Sara Rosenberg

New York, June 4 – Idera Inc. firmed the original issue discount on its add-on first-lien term loan at the tight side of guidance, canceled plans for an extension of its existing first-lien term loan and amendment to lower the Libor floor, and freed the add-on term loan for trading on Tuesday.

In more happenings, Distribution International raised the spread on its amended and extended first-lien term loan and modified the call protection.

Also, CoreCivic Inc., Compuware Corp., Unifrax (ASP Unifrax Holdings Inc.) and McAfee LLC revealed price talk with launch, and Circa Resort & Casino (18 Fremont Street Acquisition LLC) and Kindred At Home (Gentiva Health Services Inc.) emerged with new deal plans.

Idera updated, frees up

Idera finalized the original issue discount on its fungible $100 million add-on first-lien term loan (B2/B-) due 2026 at 99.5, the tight end of the 99.25 to 99.5 talk, according to a market source.

The add-on term loan is priced at Libor plus 450 basis points with a 1% Libor floor, which matches existing first-lien term loan pricing.

The company terminated plans to extend its existing first-lien term loan to 2026 from 2024 and amend the loan to change the Libor floor to 0% from 1%, which is why the add-on ended up with a 1% floor instead of a 0% floor as initially proposed.

As before, the add-on loan and existing term loan are getting 101 soft call protection for six months.

Commitments were due at 1 p.m. ET on Tuesday, moved up from 3 p.m. ET on Wednesday, and the add-on term loan broke for trading in the afternoon at 99 5/8 bid, par 1/8 offered, another source added.

Jefferies LLC is leading the deal that will be used with a $205 million privately placed second-lien term loan (Caa2/CCC) to support a minority investment from Partners Group. Partners Group will join existing investors HGGC, TA Associates and company management.

Idera is a Houston-based provider of software tools for databases.

Distribution International revised

Distribution International lifted pricing on its $206 million amended and extended first-lien term loan due Dec. 15, 2023 to Libor plus 575 bps from Libor plus 550 bps and updated the call protection to a 101 hard call for one year, a market source remarked.

The term loan still has a 1% Libor floor, lenders are still offered a 50 bps amendment fee and commitments remained due at 5 p.m. ET on Tuesday.

RBC Capital Markets is leading the deal that will be used to amend and extend an existing $206 million first-lien term loan due Dec. 15, 2021 and priced at Libor plus 500 bps with a 1% Libor floor.

The amendment and extension is being done in conjunction with an acquisition that will be funded with $25.6 million of sponsor equity and $25 million of incremental privately placed second-lien debt.

Distribution International, a portfolio company of Advent International, is a Houston-based distributor of mechanical and industrial insulation and accessory products for the industrial, commercial and marine product markets.

CoreCivic guidance

Also in the primary market, CoreCivic held its bank meeting on Tuesday and launched its $250 million seven-year covenant-lite term loan B (Ba1/BBB-/BBB-) at talk of Libor plus 225 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

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

Commitments are due on June 18, the source said.

Citizens Bank, SunTrust Robinson Humphrey Inc. and PNC Bank are the bookrunners on the deal and joint lead arrangers with Regions Bank.

The new loan will be used to refinance revolver borrowings and add cash to the balance sheet.

CoreCivic is a Nashville, Tenn.-based owner of partnership correctional, detention and residential reentry facilities.

Compuware sets talk

Compuware released talk of Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99.25 to 99.5 and 101 soft call protection for six months on its $230 million incremental first-lien term loan (B2) that launched with a morning lender call, a market source said.

Jefferies LLC is leading the deal, which will be used to fund a dividend.

In addition, the company is seeking an amendment to its existing credit agreement and lenders are being offered a 10 bps consent fee.

Amendment consents are due 3 p.m. ET on Monday and commitments for the incremental loan are due at 3 p.m. ET on June 11, the source added.

As part of this transaction, pricing on the company’s existing first-lien term loan is being increased to Libor plus 400 bps from Libor plus 350 bps for fungibility.

Compuware is a Detroit-based technology performance company.

Unifrax proposed terms

Unifrax launched with an afternoon call its $120 million incremental covenant-lite term loan B due Dec. 14, 2025 at talk of Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 97.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on June 11, the source said.

Morgan Stanley Senior Funding Inc. and Stifel, Nicolaus & Co. are leading the deal that will be used to fund an acquisition.

Unifrax is a Tonawanda, N.Y.-based supplier of high-performance specialty fibers and inorganic materials used in emission control, thermal management, filtration, battery and fire protection applications.

McAfee launches

McAfee held its lender call in the morning and announced original issue discount talk on its $300 million incremental first-lien term loan due September 2024 at 99 to 99.25 and discount talk on its $300 million equivalent euro incremental first-lien term loan due September 2024 at 99.5, a market source remarked.

Like the existing term loan debt, the U.S. incremental term loan is priced at Libor plus 375 bps with a 0% Libor floor and the euro incremental term loan is priced at Euribor plus 350 bps with a 0% floor.

The term loans have 101 soft call protection for six months.

Commitments and consents are due on Friday, the source said.

Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Mizuho Bank, Morgan Stanley Senior Funding Inc., RBC Capital Markets and UBS Investment Bank are leading the deal that will be used to return capital to shareholders and for general corporate purposes.

McAfee is a Santa Clara, Calif.-based cybersecurity company.

Circa Resort on deck

Circa Resort & Casino set a bank meeting for 10 a.m. ET in New York on Wednesday to launch a $550 million six-year first-lien term loan, according to a market source.

Commitments are due at 5 p.m. ET on June 19, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the construction of the Circa Resort in Las Vegas.

Kindred joins calendar

Kindred At Home will hold a lender call at noon ET on Wednesday to launch a fungible $410 million add-on first-lien term loan due July 2025 that is talked with an original issue discount of 99 to 99.5, a market source said.

Pricing on the add-on term loan is Libor plus 375 bps with a 0% Libor floor, in line with existing term loan pricing, and all of the debt is getting 101 soft call protection for six months.

Commitments are due at noon ET on June 12, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing second-lien term loan.

Kindred At Home is a provider of home health and hospice.

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