LightSquared, Goodyear, U.S. Shipping, Mauser, Survey Sampling break; Academy, MRI revised

By Sara Rosenberg

New York, June 15 – LightSquared’s first-lien term loan emerged in the secondary market on Monday, with levels quoted above its original issue discount, and Goodyear Tire & Rubber Co., U.S. Shipping Corp., Mauser Group and Survey Sampling International LLC freed up as well.

Switching to the primary market, Academy Ltd. (Academy Sports + Outdoors) increased pricing on its term loan B and extended the soft call protection, MRI Software LLC modified the original issue discount on its first-lien term loan, and American Casino & Entertainment Properties LLC accelerated the commitment deadline on its deal.

In addition, Jeld-Wen Inc. and TI Automotive Ltd. revealed price talk with launch, and First Advantage (STG-Fairway Acquisitions Inc.), Bluestem Brands Inc., Amneal Pharmaceuticals LLC, Liberty Tire Recycling, Constantia Flexibles and AgroFresh joined this week’s primary calendar.

LightSquared hits secondary

LightSquared’s $1.5 billion five-year first-lien term loan started trading on Monday, with levels quoted at 97½ bid, 98 offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 875 basis points PIK with a 1% Libor floor, and it was sold at an original issue discount of 97. The debt is non-callable for two years, then at 104 in year three and 102 in year four and has a ticking fee of 1% for the first 90 days, 1.5% for days 91 to 120, 2.5% for days 121 to 150 and 3% thereafter.

During syndication, the first-lien term loan was downsized from $1.75 billion, pricing was raised from Libor plus 775 bps PIK, the call protection was sweetened from non-callable for one year, then at 102 in year two and 101 in year three, and the ticking fee was changed from 1% for the first 120 days and 2% after 120 days.

Credit Suisse Securities, Jefferies Finance LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to fund the company’s exit from Chapter 11 and refinance debtor-in-possession facilities.

LightSquared is a Reston, Va.-based wireless communications company.

Goodyear tops par

Goodyear Tire’s repriced $1 billion covenant-light second-lien term loan due April 2019 also broke, with levels quoted at 100¼ bid, 100¾ offered, a trader said.

Pricing on the loan is Libor plus 300 bps, after firming at the wide end of the Libor plus 275 bps to 300 bps talk. There is a 0.75% Libor floor and 101 soft call protection for one year, and the debt was issued at par.

The repricing is taking pricing on the existing second-lien term loan down from Libor plus 375 bps with a 1% Libor floor.

J.P. Morgan Securities LLC is leading the deal.

Goodyear is an Akron, Ohio-based tire company.

U.S. Shipping frees up

U.S. Shipping’s credit facility began trading too, with the $220 million six-year first-lien term loan B (B2/B+) seen at 99¾ bid, 100¼ offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.25. There is 101 soft call protection for six months.

The company’s $250 million credit facility also includes a $10 million five-year revolver (B2/B+) and a $20 million privately placed seven-year second-lien term loan.

During syndication, the first-lien term loan was upsized from $215 million, pricing was reduced from revised talk of Libor plus 450 bps to 475 bps and initial talk of Libor plus 475 bps to 500 bps, and the discount was tightened from 99. Also, with the first-lien term loan upsizing and a roughly $5 million increase to the cash consideration, the second-lien loan was downsized from $30 million.

RBC Capital Markets is leading the deal that will be used to refinance existing debt.

U.S. Shipping is an Edison, N.J.-based provider of long-haul marine transportation services.

Mauser starts trading

Mauser’s term debt freed up as well, with the $102 million add-on first-lien covenant-light term loan (B2) due 2021 seen at 99½ bid, par offered, and the amended covenant-light second-lien term loan due 2022 seen at 99 bid, par offered, according to a market source.

Pricing on the add-on first-lien term loan is Libor plus 350 bps with a 1% Libor floor, in line with current first-lien term loan pricing, and it was issued at a discount of 99.5, after firming last week at the tight end of the 99 to 99.5 talk. All of the first-lien term loan debt is getting 101 soft call protection for one year.

Credit Suisse Securities (USA) LLC and Nomura are leading the deal that will fund a dividend.

Meanwhile, the amended second-lien term loan is priced at Libor plus 775 bps with a 1% Libor floor, and the debt has call protection of 102 in year one and 101 in year two, with a 101 initial public offering carve-out.

The amendment lifted pricing on the second-lien loan from a current rate of Libor plus 725 bps with a 1% Libor floor and gave the Bruehl, Germany-based industrial packaging company permission to pay the dividend.

First-lien lenders were offered a 15 bps amendment fee, and second-lien lenders were offered a 75 bps fee.

Survey Sampling breaks

Another deal to hit the secondary market was Survey Sampling’s fungible $36 million incremental term loan (B), with levels quoted at par bid, 100½ offered, according to a trader.

The incremental loan is priced at Libor plus 500 bps with a 1% Libor floor, which matches pricing on the company’s existing $212 million term loan, and was issued at a discount of 99.75, after tightening during syndication from 99.5, a source remarked.

GE Capital Markets is leading the deal that will be used for merger and acquisition purposes.

Survey Sampling is a Shelton, Conn.-based provider of data solutions and technology for consumer and business-to-business research.

Academy ups spread

Over in the primary market, Academy raised pricing on its $1,825,000,000 seven-year term loan B (B2/B) to Libor plus 400 bps from talk of Libor plus 350 bps to 375 bps and pushed out the 101 soft call protection to one year from six months, while leaving the 1% Libor floor and original issue discount of 99.5 unchanged, according to a market source.

Commitments were due by 2 p.m. ET on Monday, the source said.

The company’s $2,475,000,000 credit facility also includes a $650 million ABL revolver.

Morgan Stanley Senior Funding Inc., KKR Capital Markets, Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Mizuho and Wells Fargo Securities LLC are leading the term loan B. JPMorgan is the left lead arranger on the revolver.

Proceeds will be used with cash on hand to refinance all of the company’s existing debt and fund a one-time dividend.

Academy is a Katy, Texas-based sports, outdoor and lifestyle retailer.

MRI Software tweaks deal

MRI Software tightened the original issue discount on its $155 million six-year first-lien term loan (B2/B+) to 99.5 from 99, according to a market source, who said that pricing remained at Libor plus 425 bps with a 1% Libor floor. The debt still has 101 soft call protection for six months.

The company’s $240 million credit facility also includes a $15 million revolver (B2/B+), and a $70 million seven-year second-lien term loan (Caa2/CCC+) priced at Libor plus 800 bps with a 1% Libor floor and a discount of 98.5. The second-lien loan has hard call protection of 102 in year one and 101 in year two.

Recommitments were due at 5 p.m. ET on Monday, the source added.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used with $216 million of equity to fund the buyout of the company by GI Partners from Vista Equity.

Pro forma for the transaction, senior net leverage will be 4.5 times, and total net leverage will be 6.6 times.

MRI Software is a Solon, Ohio-based provider of real estate property and investment management software solutions.

American Casino shutting early

American Casino moved up the commitment deadline on its $295 million first-lien term loan to Wednesday from June 25, a source remarked.

The term loan is talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company’s $310 million credit facility (B2/BB-) also includes a $15 million revolver.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing first- and second-lien borrowings.

American Casino is a Las Vegas-based owner and operator of gaming and entertainment properties.

Jeld-Wen sets talk

Also in the primary, Jeld-Wen held its call on Monday, launching its non-fungible $480 million incremental seven-year covenant-light term loan (B) with talk of Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

In connection with the incremental loan, the company is seeking certain amendments to its existing credit facility to effect the transaction, and lenders are offered a 12.5 bps consent fee, the source continued.

Commitments and consents are due by noon ET on June 25.

Barclays and Bank of America Merrill Lynch are leading the incremental term loan that will be used to fund a distribution to the company’s shareholders and pre-fund certain near-term bolt-on acquisitions.

Total leverage is 4.5 times.

Jeld-Wen is a Klamath Falls, Ore.-based door and window manufacturer.

TI Automotive guidance

TI Automotive came out with talk of Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year on its €620 million U.S. equivalent seven-year term loan in connection with its London bank meeting on Monday, according to a market source.

A bank meeting to launch the deal to U.S. investors will take place in New York on Tuesday.

The company’s credit facility (Ba3/BB) also includes a $125 million five-year revolver and a €450 million seven-year term loan.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays, Mizuho Securities USA Inc., Goldman Sachs Bank USA, RBC Capital Markets LLC, UBS AG and Nomura are leading the deal that will be used to help fund the buyout of the company by Bain Capital.

Closing is expected in mid-year, subject to approval from TI Automotive shareholders, a substantial majority of which have pledged to support the deal, regulatory review and other customary conditions.

TI Automotive is an Auburn Hills, Mich.-based provider of fluid storage, carrying and delivery systems to automotive manufacturers.

First Advantage returning

First Advantage scheduled a lender call for 2 p.m. ET on Tuesday to launch a $485 million seven-year covenant-light first-lien term loan that is being led by Bank of America Merrill Lynch, according to a market source.

The first-lien term loan, along with a new second-lien facility, will be used to refinance existing debt and fund a dividend to shareholders, the source said.

Last year, the company attempted to syndicate a $485 million seven-year covenant-light first-lien term loan at talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, but the deal was withdrawn in December due to unfavorable market conditions.

The pulled transaction also included a $170 million eight-year covenant-light second-lien term loan talked at Libor plus 850 bps to 875 bps with a 1% Libor floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three.

First Advantage is a St. Petersburg, Fla.-based provider of talent acquisition services, including background screening, recruiting, skills assessment and skills-related tax services.

Bluestem on deck

Bluestem Brands set a lender call for 1 p.m. ET on Tuesday to launch a fungible $280 million incremental first-lien term loan due Nov. 7, 2020 talked at Libor plus 750 bps with a 1% Libor floor, an original issue discount that is still to be determined and 101 soft call protection for six months, according to a market source.

The spread and floor on the incremental term loan match the company’s existing $279 million term loan, and the existing debt will get the same call protection as the incremental loan.

Commitments are due on June 25, the source said.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with cash on hand to fund the acquisition of Orchard Brands Corp. for $410 million in cash.

Closing is expected in the third quarter, subject to customary conditions, including the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and financing.

Bluestem is an Eden Prairie, Minn.-based online retailer. Orchard Brands is a multichannel retailer of apparel and home products.

Amneal readies call

Amneal Pharmaceuticals emerged with plans to hold a lender call on Wednesday to launch a repricing of its $735 million term loan B that is talked at Libor plus 325 bps with a 1% Libor floor, a par issue priced and 101 soft call protection for six months, a market source remarked.

The transaction will take pricing on the term loan B down from Libor plus 400 bps with a 1% Libor floor.

Commitments are due on June 24.

GE Capital Markets is leading the deal.

Pricing on the company’s $200 million covenant-light incremental term loan B-2 that was syndicated in March will be unchanged at Libor plus 350 bps with a 1% Libor floor, the source added.

Amneal Pharmaceuticals is a Bridgewater, N.J.-based manufacturer of generic pharmaceuticals.

Liberty joins calendar

Liberty Tire Recycling will hold a bank meeting on Tuesday to launch a $170 million five-year term loan that is talked at Libor plus 725 bps with a 1% Libor floor, an original issue discount of 98 and call protection of 102 in year one and 101 in year two, according to a market source.

In addition to the term loan, the company’s new $205 million credit facility includes a $35 million asset-based revolver.

Jefferies Finance LLC is leading the deal that will be used to refinance an existing credit facility and some second-lien PIK notes, the source added.

Liberty Tire is a Pittsburgh-based scrap tire collector and recycler.

Constantia Flexibles repricing

Constantia Flexibles set a call for Tuesday to launch a repricing of its U.S. and euro term loan B debt that is talked at Libor/Euribor plus 300 bps to 325 bps with a 0.75% floor and a par issue price, according to a market source.

This repricing will take the loans down from Libor/Euribor plus 375 bps with a 1% floor.

Commitments are due during the week of June 22, the source added.

J.P. Morgan Securities LLC and UniCredit are leading the deal.

Constantia Flexibles is a Vienna-based manufacturer of flexible packaging products and labels.

AgroFresh coming soon

AgroFresh scheduled a bank meeting for Thursday to launch its proposed credit facility that will help fund its acquisition by Boulevard Acquisition Corp. for 18.4 million shares of Boulevard common stock and $626 million in cash from the Dow Chemical Co., a source remarked. The total transaction value is about $810 million, assuming a valuation of $10 per Boulevard share.

Filings with the Securities and Exchange Commission have said that the credit facility will be sized at $450 million, consisting of a $25 million four-year revolver and a $425 million six-year term loan B.

BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC and Sumitomo are leading the deal.

Closing is expected in late July, subject to approval by Boulevard’s shareholders, the completion of regulatory filings and other customary conditions.

AgroFresh is a post‐harvest specialty chemical business.

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