Hargray Communications, Maravai LifeSciences break; Filtration Group revises timing

By Sara Rosenberg

New York, Oct. 15 – Hargray Communications Group Inc. increased the size of its incremental first-lien term loan and then the debt made its way into the secondary market on Thursday, and Maravai LifeSciences (Maravai Intermediate Holdings LLC) saw its term loan B free up as well.

In other news, Filtration Group Corp. moved up the commitment deadline for its incremental first-lien term loan B.

Also, Barracuda Networks Inc., Hyperion Insurance Group Ltd., NorthStar Group Services Inc., Veracode (Valkyr Purchaser LLC) and Curium Bidco Sarl released price talk with launch, and E2open emerged with new deal plans.

Hargray upsizes, trades

Hargray lifted its fungible incremental covenant-lite first-lien term loan due May 2024 to $100 million from $60 million, according to a market source.

Like the existing term loan, pricing on the incremental term loan is Libor plus 300 basis points with a 25 bps step-down at 4.75x first-lien leverage and a 1% Libor floor.

The original issue discount on the incremental term loan remained at 99.28.

Commitments were due at noon ET on Thursday and the incremental term loan broke for trading in the afternoon, with levels quoted at 99 3/8 bid, 99¾ offered, another source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used for general corporate purposes, including capital expenditures and acquisitions.

Hargray is a Hilton Head Island, S.C.-based telecommunications provider.

Maravai hits secondary

Maravai LifeSciences’ $600 million seven-year covenant-lite first-lien term loan B freed to trade too, with levels quoted at 99½ bid, par offered, a trader said.

Pricing on the term loan B is Libor plus 425 bps with a 25 bps step-down at B2/B corporate family ratings and a 25 bps step-down at 4.5x net first-lien leverage, and a 1% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for six months.

The company’s $780 million of senior secured credit facilities (B3/B-) also include a $180 million five-year revolver.

During syndication, the spread on the term loan B was lowered from Libor plus 450 bps and the ratings-based step-down was added, and the revolver was upsized from $150 million.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Jefferies LLC and Antares Capital LP are leading the deal that will be used to refinance existing debt, fund the repurchase of an existing Cygus minority interest, fund a distribution to shareholders and pay transaction fees and expenses.

Closing is expected early next week.

Maravai, a GTCR portfolio company, is a San Diego-based provider of life science reagents and services.

Filtration revises deadline

Returning to the primary market, Filtration Group accelerated the commitment deadline for its $400 million incremental first-lien term loan B (B3/B) due March 2025 to 11 a.m. ET on Friday from Tuesday, a market source remarked.

Talk on the incremental term loan is Libor plus 375 bps to 400 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to fund a dividend recapitalization.

Filtration Group is a provider of filtration solutions serving a diverse portfolio of global end markets.

Barracuda guidance

Barracuda Networks held its lender call on Thursday and announced price talk on its fungible $206 million add-on first-lien term loan B (B2) due February 2025 and its $365 million eight-year second-lien term loan (Caa2), according to a market source.

Talk on the add-on first-lien term loan is Libor plus 375 bps to 400 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps to 775 bps with a 0.75% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

In connection with this transaction, pricing on the company’s existing $744 million first-lien term loan B due February 2025 will be changed from the current rate of Libor plus 325 bps with a 1% Libor floor to match the add-on term loan spread and floor. The existing term loan B is offered at par and will get the 101 soft call protection for six months as well.

Barracuda lead banks

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS Investment Bank and Stone Point are leading Barracuda Networks’ $571 million of term loans.

The new debt will be used to fund a dividend to existing shareholders and add cash to the balance sheet for potential future acquisitions.

Commitments and existing first-lien term loan amendment signature pages are due by the close of business on Oct. 22, the source added.

Barracuda Networks is a Campbell, Calif.-based provider of security and data protection solutions.

Hyperion proposed terms

Hyperion Insurance Group launched on its afternoon call its $625 million seven-year incremental senior secured covenant-lite first-lien term loan B (B2/B) at talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Oct. 22, the source added.

Morgan Stanley Senior Funding Inc., RBC Capital Markets, Barclays, HSBC Securities (USA) Inc., Lloyds and Julius Baer are leading the deal that will be used to fund the company’s acquisition of A-Plan Group, a personal and commercial lines insurance broker, repay revolver borrowings, fund its locked box account and pay related fees and expenses.

HgCapital will make a £500 million equity investment in Hyperion, adding Hg as long-term investors in Hyperion alongside General Atlantic and Caisse de depot et placement du Quebec.

Hyperion is a London-based insurance intermediary group.

NorthStar holds call

NorthStar Group Services hosted its call during the session, launching its $555 million first-lien term loan (B2/B) at talk of Libor plus 475 bps to 500 bps 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 Oct. 29, the source added.

Macquarie Capital (USA) Inc. is leading the deal that will be used to refinance existing debt and fund a dividend.

NorthStar is a New York-based provider of specialized environmental and technical services to government and commercial facility owners in need of operational, decommissioning and remediation services.

Veracode sets talk

Veracode came out with talk of Libor plus 400 bps to 425 bps with a 0.75% Libor floor and an original issue discount of 99 on its $300 million seven-year first-lien term loan B that launched with a call in the morning, a market source said.

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

Commitments are due at 5 p.m. ET on Oct. 28, the source added.

Barclays and Deutsche Bank Securities Inc. are leading the deal, which will be used to refinance the company’s $300 million of existing borrowings and pay related fees and expenses.

Veracode is a Burlington, Mass.-based provider of SaaS based application security testing solutions designed to enhance security and proactively prevent security breaches.

Curium launches

Curium set price talk on its $265 million seven-year covenant-lite first-lien term loan B (B2/B/B+) and its $325 million eight-year covenant-lite second-lien term loan (Caa2/CCC+/CCC+) with its lender call on Thursday, a market source remarked.

The first-lien term loan is talked at Libor plus 400 bps to 425 bps with a 25 bps step-down at 3.5x first-lien net leverage, a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 0.75% Libor floor, a discount of 98 to 98.5 and hard call protection of 102 in year one and 101 in year two, the source added.

Commitments are due at noon ET on Oct. 27.

J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and Nomura are leading the $590 million of term loans that will be used to help fund the acquisition of the company by CapVest Fund IV and third-party investors from CapVest Fund III.

Curium is a nuclear medicine company with headquarters in London and Paris.

E2open readies deal

E2open set a lender call for 10 a.m. ET on Tuesday to launch $600 million of credit facilities, according to a market source.

The facilities consist of a $75 million revolver and a $525 million first-lien term loan B, the source said.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Golub Capital are leading the deal that is being done in connection with the company’s combination with CC Neuberger Principal Holdings I, a publicly traded special purpose acquisition company formed via a partnership between CC Capital and Neuberger Berman

The term loan will be used with up to $1.13 billion of equity to refinance the company’s existing net debt, distribute cash to existing shareholders, place cash on the balance sheet for working capital and pay related fees and expenses.

E2open is an Austin, Texas-based network-based provider of cloud-based, end-to-end supply chain management software.

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