Ocwen dips on license woes; Ascend Learning accelerates deadline; TTM, Nellson disclose talk

By Sara Rosenberg

New York, Jan. 13 – Ocwen Financial Corp.’s term loan dropped in the secondary market on Tuesday on the back of reports that the company may lose its mortgage license in the state of California.

Moving to the primary market, Ascend Learning moved up the commitment deadline on its add-on first-lien term loan, and TTM Technologies Inc. and Nellson Nutraceutical LLC released talk with launch.

In addition, PODS Inc., Charter NEX Films Inc., Insight Global (IG Investments Holdings LLC) and Orica Chemicals emerged with new deals plans.

Ocwen retreats

Ocwen Financial’s term loan weakened in trading on Tuesday with news reports that California is looking to suspend the company’s mortgage license for a year, according to a trader.

The term loan was quoted at 93 bid, 95 offered, down from 95¾ bid, 97¼ offered, the trader said.

The reports claim that Ocwen failed to turn over documents to California’s Department of Business Oversight showing that it is complying with laws that protect homeowners, and as a result, a suspension of the mortgage license is being sought after.

Ocwen is an Atlanta-based servicer and originator of mortgage loans.

Ascend Learning shutting early

Switching to the primary, Ascend Learning accelerated the commitment deadline on its $40 million add-on first-lien term loan (B2) due July 31, 2019 to noon ET on Wednesday from noon ET on Thursday, according to a market source.

Pricing on the add-on loan is Libor plus 500 basis points with a 1% Libor floor, in line with the existing first-lien term loan, and it is offered at an original issue discount of 98½.

Bank of America Merrill Lynch, GE Capital Markets and Barclays are leading the deal that will be used with cash on hand to fund the acquisition of a U.S.-based medical education management services provider.

Burlington, Mass., and Leawood, Kan.-based Ascend Learning is a provider of technology-based learning services focused on student training and testing results in health care and other vocational fields.

TTM sets talk

TTM Technologies held its bank meeting on Tuesday, launching its $765 million term loan B (B+) with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due on Jan. 27, the source added.

J.P. Morgan Securities LLC and Barclays are leading the deal that will be used to help fund the acquisition of Viasystems Group Inc. shares for $11.33 in cash and 0.706 of a share of TTM common stock. The total enterprise value of the transaction, including the assumption of debt, is about $927 million.

Closing is expected in the first half of this year, subject to regulatory approvals and Viasystems shareholder approval.

TTM Technologies is a Costa Mesa, Calif.-based printed circuit board manufacturer. Viasystems is a St. Louis-based provider of complex multi-layer printed circuit boards and electro-mechanical services.

Nellson reveals guidance

Nellson Nutraceutical came out with talk in the Libor plus 450 bps area with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $240 million seven-year first-lien term loan (B) that launched with a bank meeting during the session, according to a market source.

The company’s $368 million senior credit facility also includes a $55 million five-year revolver (B), and a $73 million second-lien term loan (CCC+) that is being privately placed.

Commitments are due on Jan. 27, the source said.

GE Capital Markets, BMO Capital Markets, RBC Capital Markets and Madison Capital are leading the deal that will be used to fund the tack-on acquisition of Le Groupe Mulitbar Inc. and refinance existing debt.

Nellson Nutraceutical, a Kohlberg & Co. LLC portfolio company, is an Irwindale, Calif.-based nutritional diet protein energy diabetic medical bar and powder manufacturer. Le Groupe Multibar is a Montreal-based manufacturer of nutritional and snack bars.

PODS coming soon

PODS set a bank meeting for 2 p.m. ET in New York on Thursday to launch a $610 million senior credit facility that will be used to help fund its buyout by Ontario Teachers’ Pension Plan, a market source said.

The facility consists of a $50 million revolver, a $390 million first-lien term loan B and a $170 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc., Barclays, and Goldman Sachs Bank USA are leading the deal, with Morgan Stanley left lead on the term loan B and Barclays left lead on the second-lien loan.

Closing is expected this quarter.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Charter NEX on deck

Charter NEX scheduled a bank meeting for 10:30 a.m. ET on Thursday to launch a $430 million senior secured credit facility, according to a market source.

The facility consists of a $50 million revolver, a $270 million first-lien term loan B and a $110 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc. and Guggenheim Corporate Funding LLC are leading the deal that will be used to help fund the buyout of the company by Pamplona Capital Management LLP.

Closing is expected this quarter, subject to customary conditions, including expiration of the applicable waiting period under the Hart-Scott-Rodino Act.

Charter NEX Films is a manufacturer of monolayer, coextruded and barrier films.

Insight Global joins calendar

Insight Global surfaced with plans to hold a call at 11 a.m. ET on Wednesday to launch a $210 million first-lien tack-on covenant-light term loan due October 2021 that will be used to fund a distribution to the sponsor and minority shareholders, according to a market source.

In addition, the company will be seeking an extension of its existing credit facilities for which lenders are being offered a 20 bps extension fee. And, existing lenders are also being offered a 5 bps amendment fee.

All of the company’s first-lien term loan debt will get 101 soft call protection for one year, the source said.

Commitments are due on Jan. 21.

With the news, Insight Global’s existing first-lien term loan was unchanged in trading at 99¼ bid, par ¼ offered, a trader added.

Credit Suisse Securities (USA) LLC is leading the deal for the Atlanta-based temporary staffing firm for the information technology sector.

Orica Chemicals readies loan

Orica Chemicals set a bank meeting for Thursday to launch a A$500 million U.S. dollar-equivalent term loan, a market source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the A$750 million buyout of the company by Blackstone from Orica Ltd.

The sale includes the chemicals trading businesses in Australia, New Zealand and Latin America and the Australian Chloralkali manufacturing business. It also includes Bronson & Jacobs which is a supplier to the food & nutrition and health & personal care industries in Australia, New Zealand and Asia.

Closing is expected this quarter, subject to Australian Foreign Investment Review Board and New Zealand Overseas Investment Office approval and other customary conditions.

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