Lyons Magnus frees up; NSO Group changes surface; Ultimate Software Group revises timeline

By Sara Rosenberg

New York, April 2 – Lyons Magnus Inc.’s add-on term loan made its way into the secondary market on Tuesday afternoon and was seen trading above its original issue discount.

Meanwhile, in the primary market, NSO Group raised the spread, widened the issue price and sweetened the call protection on its term loan, and Ultimate Software Group Inc. moved up the commitment deadline on its first-lien term loan by a week.

Additionally, Momentive Performance Materials Inc. (MPM Holdings Inc.) and Wrench Group LLC released price talk with launch, and Hexion International Holdings BV and Neovia Logistics joined the near-term new issue calendar.

Lyons Magnus breaks

Lyons Magnus’ fungible $75 million add-on term loan began trading on Tuesday, with levels quoted at 99 1/8 bid, 99˝ offered, a trader remarked.

Pricing on the add-on term loan is Libor plus 400 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.

RBC Capital Markets is leading the deal that will be used to fund an acquisition.

In connection with this transaction, pricing on the company’s existing term loan is being increased to Libor plus 400 bps from Libor plus 375 bps.

Paine Schwartz Partners is the sponsor.

Lyons Magnus is a developer, manufacturer and marketer of fruit and flavor solutions for the foodservice, health care and industrial dairy channels.

NSO reworks loan

Switching to the primary market, NSO Group lifted pricing on its $500 million equivalent U.S. and euro term loan (B2/B) to Libor/Euribor plus 700 bps, with no step-downs, from Libor/Euribor plus 600 bps, modified the original issue discount to 94 from 98 and revised the call protection to a hard call of 102 in year one and 101 in year two from a 101 soft call for six months, according to a market source.

Also, the maturity of the term loan was shortened to six years from seven years, and a first-lien net leverage covenant was added, the source said.

The term loan has a 0% floor, amortization of 5% per annum and an excess cash flow sweep starting at 75%.

Recommitments are due at 4 p.m. ET on Friday, the source added.

Jefferies LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund the buyout of the company by management and Novalpina Capital from Francisco Partners.

NSO is a Luxembourg-based cyber-technology company.

Ultimate Software accelerated

Ultimate Software Group revised the commitment deadline on its $2.3 billion seven-year covenant-lite first-lien term loan to 5 p.m. ET on Thursday from 5 p.m. ET on April 11, a market source said.

The term loan is talked at Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $2,575,000,000 of first-lien credit facilities (B2/B) also include a $275 million revolver.

Credit Suisse, Nomura, Bank of America Merrill Lynch, BNP Paribas Securities Corp. and Ares are leading the deal that will be used to help fund the buyout of the company by an investor group led by Hellman & Friedman, and including Blackstone, GIC, Canada Pension Plan Investment Board and JMI Equity, for $331.50 per share in cash, representing an aggregate value of about $11 billion.

Other funds for the transaction will come from a $900 million privately placed second-lien term loan provided by Ares and GSO and up to $8,133,000,000 of equity.

Closing is expected mid-year, subject to stockholder and regulatory approvals, and other conditions.

Ultimate Software is a Weston, Fla.-based provider of human capital management solutions in the cloud.

Momentive sets talk

Momentive Performance Materials held its bank meeting on Tuesday and announced talk on its $839 million five-year covenant-lite term loan B (B1/B+) at Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on April 16, the source said.

BNP Paribas and Citigroup Global Markets Inc. are leading the loan that will be used with cash to fund the acquisition of the company by SJL Partners LLC, KCC Corp. and Wonik QnC Corp. for $32.50 per share. The transaction is valued at about $3.1 billion, including the assumption of net debt, pension and OPEB liabilities.

Closing is expected in the second quarter, subject to regulatory approvals and other customary conditions.

Momentive is a Waterford, N.Y.-based silicones and advanced materials company. KCC is a Seoul, South Korea-based chemicals manufacturer. Wonik is a Gumi, South Korea-based manufacturer and seller of quartz and ceramic wares used in the production of semiconductor wafers.

Wrench reveals guidance

Wrench Group came out with talk of Libor plus 425 bps to 450 bps with two 25 bps leverage-based step-downs, a 0% Libor floor and an original issue discount of 99 on its $225 million seven-year first-lien term loan and $75 million delayed-draw first-lien term loan shortly before its morning bank meeting began, a market source remarked.

The delayed-draw term loan, which is being sold as a strip with the funded term loan, has a 24-month availability and a ticking fee of half the spread for days 46 to 90 and the full spread thereafter.

The first-lien term loan has 101 soft call protection for six months.

Commitments are due at 1 p.m. ET on April 12, the source added.

The company’s $420 million of credit facilities also include a $45 million revolver and a $75 million privately placed eight-year second-lien term loan.

Jefferies, Macquarie Capital (USA) Inc. and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners from Investcorp.

Wrench Group is a provider of home maintenance and repair services specializing in heating, ventilation and air conditioning, plumbing and electrical services.

Hexion on deck

Hexion set a bank meeting for 10:30 a.m. ET in New York on Monday to launch a $350 million 18-month debtor-in-possession term loan, according to a market source.

The loan has 101 soft call protection, the source said.

Commitments are due on April 17.

Credit Suisse and J.P. Morgan Securities LLC are leading the deal that will be used to repay outstanding ABL borrowings and for general corporate purposes.

Hexion is a Columbus, Ohio-based producer of thermoset resins and related technologies and specialty products.

Neovia joins calendar

Neovia Logistics scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch a $325 million first-lien term loan, a market source said.

The company’s $600 million of credit facilities also include a $75 million super-senior revolver and a $200 million privately placed second-lien term loan, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used with up to $165 million of preferred equity to fund a comprehensive recapitalization, which will refinance the company’s entire balance sheet.

GS Merchant Banking Division and Rhone Group are the sponsors.

Neovia is an Irving, Texas-based third-party logistics company.

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