Alion Science, MyEyeDr. reveal pricing guidance; First Brands Group readies deal

By Sara Rosenberg

New York, July 13 – In the primary market on Monday, Alion Science & Technology Corp. and MyEyeDr. (MED ParentCo. LP) came out with talk on their first-lien term loans in connection with their launches.

Also, First Brands Group LLC emerged with plans to bring an incremental first-lien term loan to market later this week.

Alion discloses guidance

Alion Science & Technology held its lender call on Monday and announced talk on its $360 million four-year first-lien term loan (B1/BB-) at Libor plus 400 basis points with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on July 22, the source added.

The company is also getting a $40 million revolver (Ba1/BB).

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used with cash on hand to refinance an existing first-lien term loan and mezzanine tranche.

Alion, a portfolio company of Veritas Capital, is a McLean, Va.-based provider of advanced engineering, intelligence surveillance and reconnaissance, research development test and evaluation, live virtual and constructive training, electronic warfare, and cybersecurity solutions primarily to U.S. Department of Defense and Intelligence Community customers.

MyEyeDr. holds call

MyEyeDr. surfaced in the morning with plans to hold a lender call at 4 p.m. ET to launch an $80 million senior secured first-lien term loan (B3) due August 2026 talked at Libor plus 650 bps with a 1% Libor floor and an original issue discount of 97 to 98, a market source remarked.

The term loan has hard call protection of 102 in year one and 101 in year two.

Commitments are due at 1 p.m. ET on Thursday, the source added.

Jefferies LLC, Nomura, Golub Capital, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used for general corporate purposes.

MyEyeDr. is an optometry platform. The company is affiliated with Capital Vision Services LP, which provides management services to MyEyeDr. optometrists and its practices with financial, marketing, human resources and account services, along with managed care credentialing and claims processing.

First Brands on deck

First Brands Group set a lender call for 11 a.m. ET on Wednesday to launch a fungible $710 million incremental first-lien term loan due Feb. 2, 2024 talked at Libor plus 750 bps with a 1% Libor floor, an original issue discount of 94, and hard call protection of 102 in year one and 101 in year two, according to a market source.

Jefferies LLC is leading the deal that will be used to fund acquisitions.

Including the incremental term loan, the first-lien term loan size will total about $1.479 billion.

With the incremental term loan, the company is seeking an amendment to increase its ABL size, modify the total net leverage covenant and consolidated adjusted EBITDA definition, increase the leverage governor on permitted acquisitions, remove the cap on cash netting for the consolidated total net debt definition, increase the basket for sales leaseback transactions and assign Jefferies the role of administrative agent, the source said.

Lenders are offered a 1% amendment/exchange fee.

First Brands, formerly known as Trico Group, is an automotive aftermarket platform offering a comprehensive solution for consumable maintenance and mission-critical repair parts.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.