Inovalon, CareCentrix, EVO free to trade; Compass Group, Peabody disclose price guidance

By Sara Rosenberg

New York, April 2 – Inovalon Holdings Inc.’s credit facilities emerged in the secondary market on Monday, with the term loan quoted above its original issue discount, and CareCentrix Inc. and EVO Payments International began trading as well.

Moving to the primary market, Compass Group Diversified Holdings LLC and Peabody Energy Corp. released price talk on their loan transactions with launch.

Also, International Textile Group Inc., Bomgar Corp., MW Industries, Atlantic Power Corp., EIF Channelview Cogeneration LLC and Ansira joined this week’s primary calendar.

Inovalon starts trading

Inovalon Holdings’ credit facilities freed to trade on Monday, with the $980 million seven-year covenant-light term loan B quoted at 98¾ bid, 99¼ offered, according to a trader.

Pricing on the term loan is Libor plus 350 basis points with a 0% Libor floor and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for one year.

The company’s $1.08 billion of senior secured credit facilities (B2/B) also include a $100 million five-year revolver priced at Libor plus 350 bps with a 0% Libor floor.

During syndication, pricing on the term loan and revolver was increased from talk in the range of Libor plus 275 bps to 300 bps. Also, the discount on the term loan was changed from 99.5 and the call protection was extended from six months.

Inovalon lead banks

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading Inovalon’s credit facilities.

Proceeds will be used with cash on hand to fund the acquisition of Ability Network for $1.1 billion in cash and $100 million in restricted Inovalon stock.

Pro forma net debt to adjusted EBITDA will be about 4.1 times at year-end 2018.

Closing was expected on Monday.

Inovalon is a Bowie, Md.-based technology company providing advanced, cloud-based platforms empowering a data-driven transformation from volume-based to value-based models across the health care ecosystem. Ability is a Minneapolis-based cloud-based software-as-a-service technology company.

CareCentrix breaks

CareCentrix’s credit facilities surfaced in the secondary market too, with the $450 million seven-year first-lien term loan B quoted at 99½ bid, par offered, a trader remarked.

Pricing on the term loan is Libor plus 450 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, the term loan was downsized from $570 million and pricing was increased from talk in the range of Libor plus 375 bps to 400 bps.

The company’s $500 million of senior secured credit facilities also include a $50 million five-year revolver.

UBS Investment Bank, Deutsche Bank Securities Inc. and Citizens Bank are leading the deal that will be used to refinance existing debt and fund a dividend payment, the amount of which was reduced with the recent term loan downsizing.

Summit Partners is the sponsor.

CareCentrix is a Hartford, Conn.-based home health care benefits manager.

EVO hits secondary

EVO Payments’ $95 million incremental term loan also broke for trading, with levels seen at par ¾ bid, 101¼ offered, a trader said.

Pricing on the incremental loan is Libor plus 400 bps with a 1% Libor floor, in line with existing term loan pricing, and the incremental loan was issued at par.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to fund acquisitions.

EVO Payments is an Atlanta-based payments processor and acquirer for merchants, independent sales organizations, financial institutions, government organizations and multinational corporations.

Compass sets guidance

Switching to the primary market, Compass Group Diversified Holdings held its call on Monday, launching a $500 million seven-year term loan B (Ba3/BB) at talk of Libor plus 225 bps to 250 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

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

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and U.S. Bank are leading the deal that will be used with $400 million of senior notes to refinance an existing $560 million term loan B and outstanding revolving credit facility borrowings.

Compass Group is a Westport, Conn.-based acquirer, owner and manager of a diverse group of subsidiaries operating within the industrial and branded consumer industries.

Peabody reveals talk

Peabody Energy came out with talk of Libor plus 250 bps to 275 bps with a 0% Libor floor, 101 soft call protection for six months and an amendment fee of 12.5 bps on its $446 million senior secured first-lien term loan (Ba3/BB) due March 2025 that launched with an afternoon lender call, according to a market source.

Commitments are due at 4 p.m. ET on Friday, the source said.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan B down from Libor plus 350 bps with a 1% Libor floor and extend the maturity by three years from March 2022.

In connection with this transaction, the company is asking to remove the capital expenditures covenant from the credit agreement, the source added.

Peabody is a St. Louis-based private sector coal company.

International Textile on deck

International Textile Group set a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch $710 million of term loans, a market source said.

The debt consists of a $575 million seven-year covenant-light first-lien term loan and a $135 million eight-year covenant-light second-lien term loan, the source added.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies LLC and HSBC Securities (USA) Inc. are leading the deal that will be used to fnd the acquisition of American & Efird, a Mt. Holly, N.C.-based manufacturer of sewing thread, embroidery thread and technical textiles, and to refinance existing debt.

International Textile Group is a Greensboro, N.C.-based manufacturer of industrial and technical threads and woven fabrics.

Bomgar readies deal

Bomgar emerged with plans to hold a bank meeting at 2 p.m. ET on Wednesday to launch $265 million of first-lien credit facilities, according to a market source.

The first-lien facilities consist of a $25 million revolver, and a $240 million seven-year first-lien term loan that has 101 soft call protection for six months, the source said.

The company’s $360 million of credit facilities also include a $95 million privately-placed eight-year second-lien term loan with call protection of 102 in year one and 101 in year two.

Jefferies LLC and Golub are leading the deal that will be used to help fund the buyout of the company by Francisco Partners.

Bomgar is a provider of remote support and privileged access management solutions to enterprise customers.

MW joins calendar

MW Industries scheduled a lender call for Wednesday to launch a fungible $75 million add-on first-lien term loan and a repricing of its existing first-lien term loan, a market source remarked.

RBC Capital Markets is leading the deal.

MW Industries is a Rosemont, Ind.-based designer and manufacturer of springs and other specialty engineered metal components for diverse end markets.

Atlantic Power plans call

Atlantic Power set a lender call for 11 a.m. ET on Tuesday to launch a $510 million senior secured first-lien term loan, according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan.

Atlantic Power is a Dedham, Mass.-based owner, developer and operator of a diversified fleet of 22 power generation projects totaling 1,440 MW of net generating capacity across nine states in the United States and two Canadian provinces.

EIF Channelview coming soon

EIF Channelview Cogeneration scheduled a lender call for 10 a.m. ET on Tuesday to launch $305 million of senior secured credit facilities that will be used to refinance existing debt, a market source remarked.

The facilities consist of a $30 million revolver and a $275 million term loan B, the source added.

Morgan Stanley Senior Funding Inc. is the sole bookrunner on the deal and a joint lead arranger with Investec Bank plc.

EIF Channelview is an 856 MW natural gas-fired combined cycle cogeneration plant located in Channelview, Texas.

Ansira readies launch

Ansira will hold a lender call on Tuesday to launch a refinancing of its $257 million term loan and upsizing of its existing delayed-draw term loan, according to a market source.

Antares Capital is leading the deal.

Ansira, an Advent International Corp. portfolio company, is a provider of independent data-driven, technology-enabled local marketing solutions based in St. Louis and Dallas.

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