ConvergeOne, Liquidnet, Grohe, Altisource break; Warner Music, Performance Food revise deals

By Sara Rosenberg

New York, May 3 - ConvergeOne's credit facility hit the secondary market on Friday, with levels quoted above its original issue discount price, and Liquidnet Holdings Inc., Grohe Holding GmbH and Altisource Portfolio Solutions SA freed up as well.

Moving to the primary market, Warner Music Group Corp. revised its delayed-draw term loan, reducing the coupon and the original issue discount, and decided to launch a refinancing of its existing term loan debt.

Also, Performance Food Group Inc. increased the size of its second-lien term loan, lowered the spread, added a leverage-based step-down, tightened the discount and accelerated the commitment deadline.

In addition, Atlantic Aviation FBO Inc. and Ancestry.com released talk on its loan with launch, Pact Group (USA) Inc. started disclosing talk on its upcoming deal, and CNO Financial Group Inc. announced repricing plans.

ConvergeOne hits secondary

ConvergeOne's credit facility freed up on Friday, with the $210 million six-year term loan B quoted at 99 bid, par offered, according to a market source.

Pricing on the term loan B is Libor plus 800 basis points with a 1.25% Libor floor, and it was sold at an original issue discount of 981/2. There is call protection of 103 in year one and 101 in year two.

During syndication, the spread on the loan was raised from talk of Libor plus 650 bps to 675 bps, the discount was revised from 99 and the call protection was sweetened from 101 soft call for one year.

The company's $230 million credit facility also includes a $20 million five-year revolver.

Goldman Sachs & Co. is leading the deal that will be used to refinance existing debt and fund a distribution to equity holders.

ConvergeOne is an Eagan, Minn.-based designer, implementer and manager of data and communications systems.

Liquidnet tops OID

Liquidnet's $150 million four-year senior secured first-lien term loan B began trading in the morning, with levels quoted at 99½ bid, par ½ offered, according to a market source.

Pricing on the loan is Libor plus 800 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

Jefferies Finance LLC and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Liquidnet is a New York-based institutional equities trading network.

Grohe frees up

Grohe's term loans also broke for trading, with the $255,072,500 covenant-light term loan due May 2017 quoted at par ¾ bid, according to a market source.

Pricing on the U.S. term loan is Libor plus 400 bps with a 1% Libor floor, and it was issued at par. There is 101 repricing protection for six months.

The company is also getting a €173,687,500 covenant-light term loan due May 2017 that is priced at Euribor plus 425 bps with a 1% floor, and it was issued at par. This tranche has 101 repricing protection for six months as well.

During syndication, the Libor floor on both term loans was reduced from 1.25%.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice existing U.S. and euro term loans from Libor/Euribor plus 550 bps with a 1.25% floor.

Grohe is a Germany-based manufacturer of bathroom and kitchen fittings.

Altisource starts trading

Another deal to make it way into the secondary was Altisource Portfolio Solutions' $200 million add-on senior secured term loan (B1/B+), with levels quoted at 101 bid, 101¾ offered, a trader remarked.

The add-on is fungible and trades with the existing loan, which had been quoted at 101 bid, 102 offered on Thursday, the trader said.

Pricing on the add-on loan and the existing term loan is Libor plus 450 bps with a 1.25% Libor floor. The add-on was issued at par ½ after tightening during syndication from par.

Bank of America Merrill Lynch, Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to fund the remainder of the previously announced transaction with Ocwen Financial Corp. related to the Residential Capital LLC servicing portfolio. The debt will also fund stock repurchases and corporate purposes, including potential acquisitions.

Altisource is a Luxembourg-based provider of services focused on high-value, technology-enabled knowledge-based solutions principally related to real estate and mortgage portfolio management, asset recovery and customer relationship management.

Calpine fairly steady

In more trading happenings, Calpine Construction Finance Co. LP's $900 million seven-year term loan was quoted on Friday by one source at par 3/8 bid, par 5/8 offered and by a second source at par 1/8 bid, par 5/8 offered, versus levels of par bid, par ½ offered on the break late Thursday.

Meanwhile, the $300 million term loan due January 2022 was quoted by one source at par 1/8 bid, par 5/8 offered and by a second source at par ¼ bid, par ¾ offered, compared to par 1/8 bid, par ¾ offered in the prior session.

Pricing on the seven-year loan is Libor plus 225 bps and pricing on the 2022 loan is Libor plus 250 bps, with both having a 0.75% Libor floor, and sold at an original issue discount of 993/4. The seven-year loan has 101 soft call protection for six months and the 2022 loan has a 101 soft call for one year.

At launch, the deal was structured as a single $1,055,000,000 seven-year term loan with talk of Libor plus 250 bps to 275 bps with a 0.75% Libor floor, an original issue discount of 99¾ and 101 soft call protection for six months. However, during syndication, the 2022 tranche was added, the seven-year loan was downsized and pricing was tweaked.

Goldman Sachs & Co. led the Houston-based power producer's $1.2 billion deal (BB) that was used to redeem 8% senior secured notes due 2016.

Warner Music flexes

Over in the primary market, Warner Music Group lowered pricing on its $820 million first-lien delayed-draw covenant-light term loan (Ba3/BB-) due July 2020 to Libor plus 275 bps from Libor plus 325 bps and revised the original issue discount to 99¾ from 991/2, according to a market source.

As before, the loan has a 1% Libor floor and a ticking fee of a third of the spread from days 31 to 60, two thirds of the spread from days 61 to 90 and the full spread thereafter. There is no ticking fee for the first 30 days.

The delayed-draw loan is split between a $710 million tranche and a $110 million tranche as they are expected to fund at different times due to timing of regulatory approvals.

The debt, which includes 101 soft call protection through Dec. 31, 2013, will be used to fund the acquisition of Parlophone Label Group from Universal Music Group for £487 million (around $765 million) and for general corporate purposes.

Closing on the acquisition is expected to occur mid-year, subject to regulatory approvals and a consultation procedure with employee representatives.

Warner Music refinancing

As the changes to the delayed-draw term loan emerged, investors were also told that the company is now looking to reprice/refinance its existing covenant-light term loan to Libor plus 275 bps with a 1% Libor floor from Libor plus 400 bps with a 1.25% Libor floor, the source continued.

The repriced loan will be sized at $492 million after a planned $100 million prepayment, is offered at par and has 101 soft call protection through Dec. 31, 2013.

Existing lenders will be paid out at 101 for the repriced term loan amounts, the source remarked. No cashless rolls are available.

Also, once all of the term loans are fully funded, they are expected to trade as a single tranche.

Lead banks, Credit Suisse Securities (USA) LLC, Barclays, UBS Investment Bank, Macquarie and Nomura, were seeking commitments on all of the term loans by 5 p.m. ET on Friday, the source added.

Warner Music is a New York-based music content company.

Performance Food tweaks deal

Performance Food Group upsized its 61/2-year covenant-light term loan to $750 million from $530 million, cut pricing to Libor plus 525 bps from talk of Libor plus 550 bps to 575 bps, and revised the original issue discount to 99½ from 99, according to a market source.

Furthermore, the company added a pricing step-down to Libor plus 500 bps if net leverage is less than 4.25 times, the source remarked.

As before, the loan has a 1% Libor floor and call protection of 102 in year one and 101 in year two on all voluntary prepayments.

Commitments are due at 3 p.m. ET on Monday, moved up from the original Wednesday deadline.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, BMO Capital Markets, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays and Blackstone Capital Markets are leading the deal for the Richmond, Va.-based foodservice distributor.

Proceeds will refinance existing mezzanine notes, and the funds raised through the upsizing will be used to fund a dividend, the source added.

Atlantic Aviation guidance

Also in the primary, Atlantic Aviation FBO held its bank meeting on Friday morning, launching its $465 million seven-year first-lien term loan with talk of Libor plus 275 bps to 300 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year, according to a market source.

The company's $535 million senior secured credit facility (Ba3/BB-) also includes a $70 million five-year revolver.

Commitments are due on May 17, the source said.

Barclays, Macquarie Capital and Wells Fargo Securities LLC are leading the deal that will be used with cash on hand and a proposed public offering of LLC interests to repay an existing credit facility and capital expenditures facility.

Atlantic Aviation is a New York-based owner, operator and investor in a diversified group of infrastructure businesses.

Ancestry.com pricing

Ancestry.com released talk of Libor plus 425 bps with a 1.25% Libor floor, a par offer price and 101 soft call protection until Dec. 28, 2013 on its $200 million five-year term loan B-2 that launched during the session, according to a market source.

Amortization on the term loan B-2 is 20% per annum.

Proceeds from the B-2 loan and $30 million of cash on hand will be used to pay down a portion of the existing $668 million term loan B.

With this transaction, the remaining $438 million of term loan B debt due Dec. 28, 2018 is being repriced to Libor plus 350 bps with a 1% Libor floor from Libor plus 575 bps with a 1.25% Libor floor.

The repriced loan has a par offer price, 101 soft call protection until Dec. 28, 2013 and amortization of 1% per annum, the source said.

Lead bank, Morgan Stanley Senior Funding Inc., asking for commitments by May 10.

Ancestry.com is a Provo, Utah-based online family history resource.

Pact Group floats talk

Pact Group released talk of Libor plus 325 bps to 350 bps with a 1.25% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year on its $925 million seven-year term loan B that will launch with a bank meeting at 10:30 a.m. ET in New York on Tuesday, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds from the term loan, along with a planned A$100 million five-year revolver, will be used to fund a recapitalization.

Pact Group is an Australia-based supplier of rigid plastic packaging and industrial metal packaging items.

CNO readies deal

CNO Financial Group scheduled a call for Monday afternoon to launch a repricing of its $631 million of term loan debt, according to a market source.

The debt includes a $225 million four-year term loan currently priced at Libor plus 325 bps with a 1% Libor floor, and a $406 million six-year term loan currently priced at Libor plus 375 bps with a 1.25% floor.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are leading the transaction.

With the repricing, the company wants to amend its credit facility to gain additional financial flexibility.

CNO is a Carmel, Ind.-based insurance company.

Charter closes

In other news, Charter Communications Operating LLC completed its $1.2 billion first-lien term loan F (Baa3/BB+/BB+) due January 2021 that is priced at Libor plus 225 bps with a 0.75% Libor floor, according to a news release. The loan was sold at an original issue discount of 99¾ and has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Morgan Stanley Senior Funding Inc., RBC Capital Markets, U.S. Bank, Goldman Sachs & Co. and SunTrust Robinson Humphrey Inc. led the deal.

Proceeds were used to refinance a $532 million term loan C due 2016 and a $743 million term loan D due 2019.

Charter Communications is a Stamford, Conn.-based broadband communications company.

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