DHX, Switch, MTS Systems, Global Healthcare break; number of primary deal updates surface

By Sara Rosenberg

New York, June 22 – DHX Media Ltd.’s credit facilities made their way into the secondary market on Thursday, with the term loan B quoted above its original issue discount, and Switch Ltd., MTS Systems Corp. and Global Healthcare Exchange LLC freed up for trading as well.

Switching to the primary market, Aptean Inc. lifted pricing on its term loan B, Western Dental Services (Premier Dental Services Inc.) upsized its term loan and firmed the spread at the low end of guidance, and Cirque du Soleil Canada Inc. lifted the size of its add-on term loan while tightening the issue price and raised pricing on the add-on debt as well as on the repricing of its existing loan.

Also, Live Nation Entertainment Inc. increased the spread on its term loan B and finalized the issue price at the tight end of talk, Seminole Tribe of Florida set pricing on its term loan B at the low side of talk, Virgin Media pulled its term loan K from market and INC Research Holdings Inc. accelerated the commitment deadline on its term loan B.

In addition, Liquidnet Holdings Inc., Jo-Ann Stores Inc., Nexstar Broadcasting Group Inc. and Genesys disclosed price talk with launch, and Constellis Holdings LLC joined this week’s calendar.

DHX hits secondary

DHX Media’s credit facilities broke for trading on Thursday, with the $495 million 6.5-year term loan B quoted at par bid, par ½ offered, according to a trader.

Pricing on the term loan B is Libor plus 375 basis points with a 1% 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 B was upsized from $480 million, pricing was reduced from Libor plus 400 bps, the discount was tightened from 99 and the MFN sunset was removed.

The company’s $525 million of credit facilities also include a $30 million five-year revolver.

RBC Capital Markets LLC and Jefferies Finance LLC are leading the deal that will be used to help fund the acquisition of the entertainment division of Iconix Brand Group Inc., which includes an 80% controlling interest in Peanuts and 100% of Strawberry Shortcake, for $345 million, and to refinance existing debt. The remaining 20% interest in Peanuts will continue to be held by members of the family of Charles M. Schulz.

Closing is expected on or around June 30, subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.

DHX is a Halifax, Nova Scotia-based children’s content and brands company.

Switch frees up

Switch’s credit facilities began trading too and the $600 million seven-year senior secured covenant-light term loan B seen at par 3/8 bid, par 7/8 offered, a trader said.

The term loan B is priced at Libor plus 275 bps with a step-down to Libor plus 250 bps when total leverage is less than 4 times and a 0% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

The company’s $1.1 billion of credit facilities (B1/BBB-) also includes a $500 million revolver.

On Monday, the term loan B size was increased from $500 million, pricing was cut from talk of Libor plus 300 bps to 325 bps, the step-down was added and the discount was revised from 99.5. Also, the revolver was upsized from $450 million.

BMO Capital Markets, Wells Fargo Securities LLC, Goldman Sachs and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt, to fund a dividend and for general corporate purposes.

Closing is expected on Tuesday.

Switch is a Las Vegas-based developer and operator of data centers.

MTS tops par

MTS Systems’ $457.7 million term loan B also broke, with levels quoted at par 1/8 bid, par 5/8 offered, a market source remarked.

Pricing on the loan is Libor plus 325 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for one year.

During syndication, pricing on the loan firmed at the high end of the Libor plus 300 bps to 325 bps talk and the call protection was extended from six months.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan B from Libor plus 425 bps with a 0.75% Libor floor.

MTS is an Eden Prairie, Minn.-based supplier of high-performance test systems and position sensors.

Global Healthcare breaks

Another deal to free up was Global Healthcare Exchange’s $513 million seven-year first-lien term loan, with levels seen at par bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 325 bps with a 25 bps step-down at 4.5 times net first-lien leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, the term loan was upsized $488 million and pricing was reduced from talk of Libor plus 350 bps to 375 bps.

J.P. Morgan Securities LLC, Jefferies LLC, Credit Suisse Securities (USA) LLC, Golub Capital and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by Temasek. Thoma Bravo will retain a minority position in the company.

Other funds for the transaction will come from a $197 million privately placed second-lien term loan led by Ares and from equity, the amount of which was reduced with the recent first-lien term loan upsizing.

Global Healthcare Exchange is a Louisville, Colo.-based provider of cloud-based health care supply chain management technology and services.

Aptean flexes up

Moving to the primary market, Aptean increased pricing on its $595 million senior secured covenant-light term loan B due Dec. 20, 2022 to Libor plus 425 bps from talk of Libor plus 375 bps to 400 bps and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, according to a market source.

Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc., MUFG and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to reprice an existing term loan B from Libor plus 500 bps with a 1% Libor floor.

Consents/commitments were due at 5 p.m. ET on Thursday, extended from noon ET on Thursday, the source said.

Aptean is an Alpharetta, Ga.-based provider of enterprise application software.

Western Dental reworked

Western Dental Services raised its six-year term loan B to $325 million from $305 million, firmed pricing at Libor plus 525 bps, the low end of the Libor plus 525 bps to 550 bps talk, and removed the MFN sunset, a market source said.

The term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s now $350 million of senior secured credit facilities also include a $25 million revolver.

Recommitments were due at 5 p.m. ET on Thursday.

RBC Capital Markets and BMO Capital Markets are leading the deal that will be used to refinance existing debt and to fund the acquisition of Project Riley. Funds from the upsizing will be used to add about $20 million in cash to the balance sheet at closing, the source added.

Western Dental, a portfolio company of New Mountain Capital, is an Orange, Calif.-based dental services organization.

Cirque changes emerge

Cirque du Soleil increased its fungible add-on covenant-light first-lien term loan due July 2022 to $85 million from $65 million and revised the issue price to par from 99.875, according to a market source.

Additionally, pricing on the add-on term loan and repricing of the company’s existing $625 million covenant-light first-lien term loan due July 2022 was revised to Libor plus 375 bps from talk of Libor plus 325 bps to 350 bps, and the 101 soft call protection was extended to one year from six months, the source said.

As before, the old money is offered at par and all of the term loan debt has a 1% Libor floor.

Commitments were due at 5 p.m. ET on Thursday, the source added.

RBC Capital Markets is leading the deal that will be used to fund an acquisition and reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Cirque du Soleil is a Montreal-based producer of live artistic entertainment.

Live Nation tweaked

Live Nation Entertainment lifted pricing on its $970 million term loan B to Libor plus 225 bps from Libor plus 200 bps and set the issue price at par, the tight end of the 99.75 to par talk, a market source remarked.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 250 bps with a 0% Libor floor.

Live Nation is a Beverly Hills, Calif.-based provider of live music concerts and live entertainment ticketing sales and marketing services.

Seminole firms spread

Seminole Tribe of Florida set the spread on its $1.2 billion term loan B (Baa2/BBB/BBB) at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, and left the 0% Libor floor and original issue discount of 99.5 intact, a market source remarked.

Bank of America Merrill Lynch is leading the deal which will be used to refinance existing debt.

Seminole Tribe of Florida is a Hollywood, Fla.-based Indian tribe that owns and operates gaming and resort facilities.

Virgin Media withdrawn

Virgin Media removed from the primary market its $3.43 billion term loan K that was talked at Libor plus 250 bps with a 0% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, according to a market source.

J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Nomura, RBC Capital Markets and Bank of Nova Scotia were leading the deal.

The term loan K was going to be used to refinance a term loan I priced at Libor plus 275 bps with a 0% Libor floor.

Virgin Media, a subsidiary of Liberty Global plc, is a Hook, England-based provider of broadband, TV, mobile phone and home phone services.

INC Research moves deadline

INC Research accelerated the commitment deadline on its $1.85 billion seven-year covenant-light term loan B to 3 p.m. ET on Friday from 5 p.m. ET on Tuesday, according to a market source.

Talk on the term loan B is Libor plus 225 bps with a 0% Libor floor, an original issue discount of 99.75, 101 soft call protection for six months and a ticking fee of half the spread for days 31 to 90 and the full spread thereafter.

The company’s $3.1 billion of credit facilities (Ba2/BB+) also include a $500 million five-year revolver and a $750 million five-year term loan A, both talked at Libor plus 175 bps with step-downs and a 0% Libor floor.

Credit Suisse Securities (USA) LLC, ING, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., PNC and Wells Fargo Securities LLC are leading the deal, with Credit Suisse the left lead on the term loan B and ING the left lead on the revolver and term loan A.

INC Research refinancing

Proceeds from INC Research’s credit facilities will be used to refinance existing debt in connection with its all-stock merger with inVentiv Health Inc.

Upon closing, INC Research shareholders are expected to own about 53% and inVentiv shareholders are expected to own about 47% of the combined company on a fully diluted basis. Advent International and Thomas H. Lee Partners, the current equal equity owners of inVentiv, will remain investors in the combined company.

The transaction values inVentiv at an enterprise value of around $4.6 billion, and the combined company at an enterprise value of about $7.4 billion.

Closing is expected in the second half of this year, subject to approval by INC Research shareholders, the satisfaction of regulatory requirements and other customary conditions.

INC Research is a Raleigh, N.C.-based contract research organization providing the full range of Phase I to Phase IV clinical development services for the biopharmaceutical and medical device industries. inVentiv is a Burlington, Mass.-based contract research organization and contract commercial organization.

Liquidnet discloses guidance

Also in the primary market, Liquidnet held its bank meeting on Thursday, launching its $200 million seven-year senior secured first-lien term loan (B1) 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 July 10, the source said.

Jefferies LLC is leading the deal that will be used to refinance an existing term loan, to fund the acquisition of OTAS Technologies and for general corporate purposes, including capital expenditures and potential future acquisitions.

Liquidnet is a New York-based regulated agency securities broker that operates a trading platform connecting asset managers to trade equities and fixed income securities. OTAS is a London-based analytics platform that delivers actionable market intelligence and context to institutional traders and portfolio managers.

Jo-Ann reveals talk

Jo-Ann Stores came out with talk of Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99 to 99.5 on its fungible $100 million add-on term loan (B) due October 2023 that launched with a morning lender call, a market source remarked.

The spread and floor on the add-on matches existing term loan pricing.

Bank of America Merrill Lynch is leading the deal that will be used to repay opco notes.

Jo-Ann Stores is a Hudson, Ohio-based specialty retailer of fabrics and crafts.

Nexstar details surface

Nexstar launched on its lender call a repricing of its $2,125,000,000 term loan B at talk of Libor plus 250 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

The repricing will take the existing term loan B down from Libor plus 300 bps with a 0% Libor floor.

Commitments are due on Wednesday, the source added.

Bank of America Merrill Lynch is leading the deal.

Nexstar is an Irving, Texas-based diversified media company.

Genesys holds call

Genesys hosted a lender call during the session, launching a repricing of its $1,573,000,000 term loan B and its €528 million term loan B at talk of Libor/Euribor plus 325 bps to 350 bps with a 0% floor, a par issue price and 101 soft call protection for six months, a market source said.

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

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Citigroup Global Markets Inc. and RBC Capital Markets LLC are leading the deal that will reprice the existing loans down from Libor/Euribor plus 400 bps with a 1% floor.

Genesys is a Daly City, Calif.-based provider of omnichannel customer experience and contact center solutions.

Constellis on deck

Constellis Holdings set a lender call for loan lenders at 11 a.m. ET on Friday, according to a market source.

Credit Suisse Securities (USA) LLC is leading the transaction.

Constellis is a Reston, Va.-based provider of operational support and risk management services to government and commercial clients.

Mitchell allocates

In other news, Mitchell International Inc. allocated its fungible $70 million incremental term loan due Oct. 11, 2020, according to a market source.

Pricing on the incremental loan is Libor plus 350 bps with a 1% Libor floor, in line with existing term loan pricing, and the debt was issued at par.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to repay existing debt and fund cash to the balance sheet for general corporate purposes.

Mitchell is a San Diego-based provider of technology, connectivity and information solutions to the property and casualty claims and collision repair industries.

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