St. George’s, Ivanti, Blackhawk, WaveDivision, C.H.I. break; Apple, Cypress, Gateway updated

By Sara Rosenberg

New York, Feb. 14 – St. George’s University changed the issue price on its add-on first-lien term loan and Ivanti Software Inc. upsized its incremental term loan B and finalized the issue price at the tight side of talk, and then these deals freed up for trading on Tuesday.

Other deals to make their way into the secondary market during the session included Blackhawk Mining LLC, WaveDivision Holdings LLC and C.H.I. Overhead Doors Inc.

Returning to the primary market, Apple Leisure Group widened spreads and original issue discounts on its first-and second-lien term loans and revised call premiums, Cypress Semiconductor Corp. set the spread on its term loan A and term loan B at the low end of guidance and revised original issue discount talk on the B tranche, and Gateway Casinos & Entertainment Ltd. increased the size of its term loan borrowings, adjusted pricing and modified original issue discounts.

Furthermore, Mallinckrodt International Finance SA, Formula 1 (Delta Topco Ltd.), CSP Technologies North America LLC, Interior Logic Group and TriMark (TMK Hawk Parent Corp.) released additional details on their new loan transactions in connection with their launches.

In addition, Amaya Holdings B.V., Virtus Investment Partners Inc., Navios Maritime Partners LP and CPM Acquisition Corp. jumped onto this week’s primary calendar.

St. George’s revised, trades

St. George’s University tightened the issue price on its fungible $125 million add-on first-lien term loan due July 6, 2022 to par from 99.75, a market source said.

Pricing on the add-on loan is Libor plus 525 basis points with a 1% Libor floor, and the debt has 101 soft call protection until June, which matches terms on the existing first-lien term loan.

With final terms in place, the loan made its way into the secondary market on Tuesday afternoon, and levels were quoted at par ¾ bid, 101¾ offered, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to fund a dividend and for general corporate purposes.

St. George’s is a Grenada, West Indies-based educational institution, providing students with medical degrees as well as veterinary and liberal arts graduate and undergraduate degrees.

Ivanti tweaked, breaks

Ivanti Software lifted its fungible incremental covenant-light term loan B due Jan. 20, 2024 to $50 million from $30 million and set the issue price at par, the tight end of the 99.75 to par talk, according to a market source.

The incremental loan is priced at Libor plus 425 bps with a 1% Libor floor.

Following the upsizing and pricing update, the incremental term loan began trading, and levels were seen at par ¼ bid, par ¾ offered, a trader said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used for general corporate purposes.

Closing is expected next week.

Ivanti, formerly known as LANDesk Software Group Inc., is a South Jordan, Utah-based user-centered IT management company.

Blackhawk hits secondary

Blackhawk Mining’s $660 million five-year first-lien term loan also broke, with levels seen at 98 bid, 99 offered, a market source said.

Pricing on the term loan is Libor plus 950 bps with a 1% Libor floor, and it was sold at an original issue discount of 97. The debt is non-callable for one year, then has hard call protection of 103 in year two, 102 in year three and 101 in year four.

Last week, pricing on the loan was increased from talk of Libor plus 800 bps to 850 bps, the discount was changed from 98, the call protection was sweetened from a hard call of 103 in year one, 102 in year two and 101 in year three, amortization was lifted to 16.5% in year one and 8.5% in year two (returning to original terms thereafter) from 12.5% in year one and 7.5% in year two, and the company said it would use commercially reasonable efforts to get a public rating from Standard & Poor’s and Moody’s by Dec. 31, 2017 as opposed to being unrated.

Jefferies Finance LLC is leading the deal that will be used by the Lexington, Ky.-based producer of coal to refinance existing ABL-A and ABL-B facilities, legacy Blackhawk debt, a first-lien term loan and a 1.5-lien term loan, to cash collateralize letters of credit and to pay fees and expenses.

WaveDivision frees up

WaveDivision’s $620.4 million term loan began trading too, with levels quoted at par 1/8 bid, par ½ offered, a market source remarked.

The term loan is priced at Libor plus 275 bps with no Libor floor and was issued at par. The debt includes 101 soft call protection for six months.

During syndication, pricing on the loan was increased from Libor plus 250 bps, and the 1% Libor floor was eliminated.

Wells Fargo Securities LLC, Jefferies Finance LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 1% Libor floor.

WaveDivision is a Kirkland, Wash.-based owner and operator of broadband cable systems.

C.H.I. Overhead breaks

C.H.I. Overhead’s $430.7 million first-lien term loan also hit the secondary market, with levels seen at par bid, par 3/8 offered, according to a market source.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par.

UBS Investment Bank is leading the deal that will reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor.

C.H.I. Overhead is an Arthur, Ill.-based manufacturer and marketer of overhead garage doors.

Strategic Partners rises

Also in trading, Strategic Partners Acquisition Corp.’s repriced $335 million first-lien term loan was quoted at par ¾ bid, 101¼ offered, up from break levels on Monday of par ¼ bid, par ¾ offered, a market source said.

Pricing on the loan is Libor plus 450 bps with a 1% Libor floor, and it was issued at par.

UBS Investment Bank is leading the deal that will reprice the existing term loan down from Libor plus 525 bps with a 1% Libor floor.

The company’s $380 million credit facility also includes a $45 million revolver.

Strategic Partners is a Chatsworth, Calif.-based designer and manufacturer of medical apparel and footwear and school uniforms.

Apple Leisure modified

Back in the primary market, Apple Leisure Group lifted pricing on its $600 million seven-year covenant-light first-lien term loan (B2/B) to Libor plus 475 bps from Libor plus 450 bps, moved the original issue discount to 97.5 from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

In addition, the company increased pricing on its $225 million eight-year covenant-light second-lien term loan (Caa2/CCC+) to Libor plus 900 bps from Libor plus 850 bps, widened the discount to 96.5 from 98, and changed the call protection to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said.

Both term loans still have a 1% Libor floor.

The company’s $950 million credit facility also includes a $125 million revolver (B2/B).

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by KKR and KSL Capital Partners from Bain Capital Private Equity.

Closing is expected this quarter, subject to customary regulatory approvals.

Apple Leisure is a Philadelphia-based hospitality company.

Cypress updated

Cypress Semiconductor finalized pricing on its $95 million term loan A due March 12, 2020 and $438,750,000 term loan B due July 5, 2021 at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Additionally, original issue discount talk for new commitments for the term loan B was revised to a range of 99.5 to 99.75 from just 99.5, the source said.

As before, the term loan A has no floor and a discount of 99.75, and the term loan B has no Libor floor, a par issue price for rolled commitments and 101 soft call protection for six months.

The company’s 1,073,750,000 senior secured credit facility also includes a $540 million revolver due March 12, 2020 priced at talk at Libor plus 225 bps with no floor and a discount of 99.9.

Commitments/consents were due at 2 p.m. ET on Tuesday, the source added.

Cypress lead banks

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and Barclays are leading Cypress Semiconductor’s credit facility.

Proceeds will be used to amend the existing senior secured credit facility and reprice the term loan A due 2020 and term loan B due 2021.

With the transaction, the total leverage covenant is being amended to 4.25 times through Dec. 31, 2017, 4 times through June 30, 2018 and 3.75 times thereafter.

Cypress Semiconductor is a San Jose, Calif.-based manufacturer of mixed-signal integrated circuits.

Gateway reworks deal

Gateway Casinos & Entertainment raised its six-year first-lien term loan B (Ba3/BB-) to include a $405 million B-1 tranche and a C$80 million B-2 tranche from a total $440 million equivalent U.S. and Canadian loan, a market source said.

Furthermore, pricing on the U.S. term loan was cut to Libor plus 375 bps, and pricing on the Canadian term loan was updated to BA plus 400 bps, versus initial talk at launch of Libor plus 425 bps, and original issue discounts on both tranches were changed to 99.5 from 99, the source continued.

The term loans still have a 1% floor and 101 soft call protection for six months.

The company’s senior secured facility also includes a C$125 million five-year revolver.

Commitments were due at 5 p.m. ET on Tuesday, accelerated from Thursday, and allocations are targeted for Wednesday.

Gateway increases dividend

Due to the term debt upsizing, the dividend Gateway Casinos is paying to shareholders with a portion of the proceeds from the new debt was lifted to $100 million from C$100 million, the source added.

Remaining proceeds from the credit facility and the issuance of second-priority senior secured notes will be used to refinance existing debt, fund the acquisition of two “Gaming Bundles” from the Ontario Lottery and Gaming Corp. and increase available liquidity for future growth capital expenditures.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc., Macquarie Capital (USA) Inc. and National Bank of Canada Financial Markets are leading the deal.

Gateway Casinos is a Burnaby, B.C.-based owner of gaming properties.

Mallinckrodt guidance

Also on the new deal front, Mallinckrodt held its lender call on Tuesday, launching its $1,862,000,000 term loan B (BB+) due Sept. 24, 2024 at talk of Libor plus 275 bps to 300 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source remarked.

Commitments from existing lenders are due at 5 p.m. ET on Feb. 21, and new money commitments are due at noon ET on Feb. 23.

Deutsche Bank Securities Inc. is leading the deal that will be used to amend and extend an existing term loan B due March 19, 2021 priced at Libor plus 250 bps with a 0.75% Libor floor and an existing term loan B-1 due March 19, 2021 priced at Libor plus 275 bps with a 0.75% Libor floor.

Mallinckrodt is a U.K.-based specialty pharmaceutical company.

Formula 1 launches

Formula 1 launched on its lender call its $2.85 billion term loan with talk of Libor plus 325 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

KKR Capital Markets is leading the deal that will be used with cash on hand to refinance a $3,145,000,000 first-lien term loan priced at Libor plus 375 bps with a 1% Libor floor.

Formula 1 is a motorsports business.

CSP terms surface

CSP Technologies released talk of Libor plus 500 bps to 525 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its fungible $12 million incremental first-lien term loan due Jan. 29, 2022 and repricing of its $165.9 million first-lien term loan due Jan. 29, 2022 that launched with an afternoon lender call, according to a market source.

Commitments are due at 1 p.m. ET on Feb. 24, the source said.

Barclays is leading the deal.

The incremental loan will be used to term out outstanding borrowings under the company’s existing revolving credit facility.

CSP is an Auburn, Ala.-based manufacturer of polymer containers primarily for the pharmaceutical and consumer industries.

Interior Logic sets talk

Interior Logic Group came out with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $255 million seven-year covenant-light term loan B (B3/B) that launched with a morning meeting, a source said.

Commitments are due at noon ET on Feb. 24, the source added.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal that will be used to help fund the buyout of the company by Platinum Equity.

Interior Logic is a provider of interior finish products to builders and their customers.

TriMark seeks tack-on

Shortly before TriMark’s morning lender call began, it was revealed that the company would be launching to lenders a fungible $77.5 million tack-on first-lien term loan due Oct. 1, 2021 with original issue discount talk of 99.75 to par, a market source remarked.

The tack-on term loan is priced at Libor plus 425 bps with a 1% Libor floor, which matches existing first-lien term loan pricing.

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

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to fund a tuck-in acquisition.

TriMark is a South Attleboro, Mass.-based provider of equipment, supplies and design services to the foodservice industry.

Amaya readies deal

Amaya set a lender call for 10 a.m. ET on Wednesday to launch a repricing of its $2,021,000,000 covenant-light term loan B due August 2021 and €286 million covenant-light term loan B due August 2021, a source said.

The repriced U.S. term loan is talked at Libor plus 350 bps with a 1% Libor floor, and the repriced euro term loan is talked at Euribor plus 375 bps with no floor, with both tranches having a par issue price and 101 soft call protection for six months, the source continued.

Deutsche Bank Securities Inc., Barclays and Macquarie Capital (USA) Inc. are leading the deal that will reprice the U.S. term loan down from Libor plus 400 bps with a 1% Libor floor and the euro term loan down from Euribor plus 425 bps with a 1% floor.

In addition, the company is seeking to amend its term loans to waive the 2016 and 2017 excess cash flow sweep payments, and lenders are being offered a 15 bps amendment fee.

Commitments and amendment consents from existing lenders are due by 5 p.m. ET on Feb. 22, and new lender commitments are due by noon ET Feb. 24, the source added.

Amaya is a Pointe-Claire, Quebec-based poker operator and public online real money gaming company.

Virtus on deck

Virtus Investment Partners scheduled a lenders’ presentation for 11 a.m. ET on Thursday to launch a $360 million senior secured credit facility, according to a market source.

The facility consists of a $100 million revolver and a $260 million first-lien term loan B, the source said.

Morgan Stanley Senior Funding Inc., Barclays, J.P. Morgan Securities LLC and Bank of America Merrill Lynch are leading the deal that will be used to help fund the acquisition of RidgeWorth Investments from Lightyear Capital LLC in a transaction that values RidgeWorth at $472 million. Virtus will also acquire certain investments at their fair value as of closing, for a total consideration of about $513 million.

Closing is expected mid-year, subject to customary conditions and regulatory, fund shareholder and other client approvals.

Virtus is a Hartford, Conn.-based provider of investment management products and services. RidgeWorth is an Atlanta-based multi-boutique asset management firm.

Navios coming soon

Navios Maritime Partners emerged with plans to host a lenders’ presentation at 2 p.m. ET on Wednesday to launch a $400 million first-lien term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt.

Navios Maritime is a Monaco-based seaborne shipping and logistics company.

CPM joins calendar

CPM Acquisition set a lender call for 2 p.m. ET on Wednesday to launch a $298 million senior secured term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and Rabobank are leading the deal that will be used to reprice an existing term loan B due 2022.

CPM is a supplier of process equipment used for oilseed processing and animal feed production.

Infiltrator Water tops OID

In other news, Infiltrator Water Technologies LLC’s $100 million incremental covenant-light first-lien term loan (B2/B) due Feb. 16, 2022 allocated on Tuesday, according to a market source.

Pricing on the loan is Libor plus 350 bps with a 1% Libor floor, in line with existing term loan pricing, and it was sold at an original issue discount of 99.875, after tightening on Monday from 99.5. The loan has 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance an existing second-lien term loan.

Closing is targeted for Feb. 22.

Infiltrator Water is an Old Saybrook, Conn.-based provider of engineered plastic chambers, synthetic aggregate leach fields, tanks and accessories for the onsite wastewater and stormwater industries.

Hemisphere Media closes

Hemisphere Media Group Inc. said in a news release that it completed its amended and extended $213 million senior secured term loan B due February 2024.

As previously reported, the amended term loan is priced at Libor plus 350 bps with no Libor floor and was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the loan firmed at the high end of the Libor plus 325 bps to 350 bps talk, and the discount was set at the wide end of the 99.5 to 99.75 talk.

J.P. Morgan Securities LLC led the deal that was used to reprice and extend an existing term loan B due 2020 priced at Libor plus 400 bps with a 1% Libor floor.

Hemisphere Media is a Coral Gables, Fla.-based Spanish-language media company.

© 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.