Ancestry.com finalizes spread, breaks; Osmose Holdings, JBS USA revisions surface

By Sara Rosenberg

New York, Aug. 17 – Ancestry.com firmed pricing on its term loan B at the wide end of talk and then freed up for trading on Monday, with the debt quoted above its original issue discount.

In more happenings, Osmose Holdings shifted some funds between its first- and second-lien term loans and finalized spreads at the low end of guidance, JBS USA LLC revised the ticking fee on its term loan, and Townsquare Media Inc. surfaced with add-on term loan plans.

Ancestry.com updates terms

Ancestry.com finalized pricing on its $735 million seven-year covenant-light term loan B at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, while leaving the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, according to a market source.

In addition, the incremental freebie in the loan agreement was reduced to $100 million from $150 million and the unlimited incremental allowance was modified to up to 3 times leverage from up to 4 times leverage, the source said, adding that there is no MFN sunset provision in the loan.

The company’s $835 million senior secured credit facility (Ba3/B) also includes a $100 million five-year revolver priced at Libor plus 375 bps with a leverage-based step-down and no Libor floor.

The spread on the revolver firmed at the high end of the Libor plus 350 bps to 375 bps talk, the source continued.

Ancestry.com starts trading

With final terms in place, Ancestry.com’s credit facility made its way into the secondary market on Monday, with the term loan B quoted at 99¼ bid, 99¾ offered, a trader remarked.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and RBC Capital Markets are leading the deal.

Proceeds will be used to refinance existing term loan B-1 and B-2 borrowings, to fund a dividend distribution and for general corporate purposes.

Ancestry.com, a Provo, Utah-based online family history resource, expects to close on the new credit facility this month.

Osmose tweaks deal

Back in the primary, Osmose Holdings lifted its seven-year first-lien covenant-light term loan to $285 million from $275 million and firmed pricing at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, a market source remarked.

In addition, the company decreased its eight-year second-lien covenant-light term loan to $105 million from $115 million and set the spread at Libor plus 775 bps, the tight end of the Libor plus 775 bps to 800 bps talk, the source said.

As before, both term loans have a 1% Libor floor, the first-lien loan has an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien loan has a discount of 99 and call protection of 102 in year one and 101 in year two.

The company’s $435 million credit facility also includes a $45 million five-year revolver.

Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the Tyrone, Ga.-based service provider safeguarding utility infrastructure by Kohlberg & Co.

JBS modifies ticking fee

JBS changed the ticking fee on its $1.2 billion first-lien term loan due August 2022 (Ba1/BB+) to half the spread from day 31 to 60 and the full spread and floor thereafter, from half the spread from days 31 to 60, the full spread from days 61 to 90 and the full spread plus the Libor floor thereafter, according to a market source.

The company also clarified that the 101 soft call protection would run seven months from when the loan goes into escrow which is six months of call protection from the day lenders receive full coupon and floor, the source said.

Talk on the term loan is Libor plus 300 bps with a 1% Libor floor and a discount of 99.5.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Rabobank are leading the deal that will help fund the $1.45 billion acquisition of Cargill’s U.S.-based pork business.

Closing is subject to regulatory review and approval.

JBS is a Greeley, Colo.-based beef, pork and lamb processing company.

Townsquare readies call

Townsquare Media set a lender call for 10 a.m. ET on Tuesday to launch a fungible $45 million add-on term loan, a market source said.

Pricing on the add-on term loan matches existing term loan pricing at Libor plus 325 bps with a 1% Libor floor. Original issue discount talk on the add-on debt is not yet available, the source continued.

RBC Capital Markets is leading the deal that will be used to help fund the acquisition of North American Midway Entertainment LLC for about $75.5 million, subject to certain working capital and other adjustments.

Townsquare Media is a Greenwich, Conn.-based diversified media and entertainment and digital marketing services company. North American Midway Entertainment is a Farmland, Ind.-based provider of rides, games and food concessions.

AMAG closes

In other news, AMAG Pharmaceuticals Inc. completed its $350 million six-year senior secured covenant-light term loan (Ba2/BB), according to an 8-K filed with the Securities and Exchange Commission.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor, and it was issued at a discount of 99.75. There is 101 soft call protection for six months.

During syndication, pricing on the loan was lowered from Libor plus 400 bps, the discount was changed from 99.5, and the MFN sunset provision was eliminated.

Jefferies Finance LLC and Barclays led the deal that was used to help fund the acquisition of Cord Blood Registry from GTCR for $700 million and to repay AMAG’s existing roughly $320 million senior secured term loan.

AMAG is a Waltham, Mass.-based specialty pharmaceutical company. Cord Blood is a stem cell collection and storage company serving pregnant women and their families.

ServiceMaster completes loan

ServiceMaster Co. LLC closed on its $400 million add-on term loan (B1), the company revealed in an 8-K filing.

Pricing on the add-on term loan is Libor plus 325 bps with a 1% Libor floor, in line with existing term loan pricing, and it was sold an original issue discount of 99.5, after firming at the wide end of the 99.5 to 99.75 talk during syndication.

J.P. Morgan Securities LLC led the deal that was used with cash on hand to fund the repurchase of 7% senior notes.

ServiceMaster is a Memphis-based provider of maintenance services to residential and commercial customers.

© 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.