Netsmart frees up; Spirit tweaks deal; White Cap, Infoblox, WCG Purchaser set price talk

By Sara Rosenberg

New York, Sept. 29 – Netsmart Technologies Inc. set the spread on its term loan B at the low end of talk, added a leverage-based step-down and tightened the original issue discount on Tuesday morning, and then the debt made its way into the secondary market in the afternoon.

In more happenings, Spirit AeroSystems Holdings Inc. modified the issue price on tis term loan B, and White Cap (AppleCaramel Buyer LLC), Infoblox Inc. (Delta Topco Inc.) and WCG Purchaser Corp. (Wesins) released price talk with launch.

Furthermore, Wheelabrator Technologies Inc. (Granite Acquisition Inc.), Genesys and Oxbow Carbon surfaced with new deal plans.

Netsmart revised, breaks

Netsmart finalized pricing on its $915 million seven-year term loan B at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, added a 25 bps step-down at 0.5x inside closing date net total leverage and changed the original issue discount to 99.5 from talk in the range of 98.5 to 99, a market source said.

As before, the term loan has a 25 bps step-down upon an initial public offering, a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $1.015 billion of credit facilities (B3/B-) also include a $100 million revolver.

Recommitments were due at noon ET on Tuesday and the term loan B freed to trade in the afternoon, with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Golub, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used to repay the company’s existing first- and second-lien term loans and to fund an acquisition.

Closing is expected this week.

Netsmart is an Overland Park, Kan.-based provider of software and technology solutions to the human services and post-acute care market.

Spirit changes OID

Spirit AeroSystems modified the original issue discount on its $400 million senior secured term loan B (Ba2/BB-) to 99.5 from talk in the range of 98.5 to 99, a market source remarked.

As before, the term loan is priced at Libor plus 525 bps with a 0.75% Libor floor.

Allocations are expected on Wednesday, the source added.

BofA Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are leading the loan that will be used with $500 million of senior secured notes, upsized from $400 million, to repay in full amounts borrowed under a term loan A and a delayed-draw term loan A, and for general corporate purposes.

Spirit AeroSystems is a Wichita, Kan.-based designer and builder of aerostructures for both commercial and defense customers.

White Cap guidance

White Cap held its lender call on Tuesday morning and announced talk on its $2.335 billion seven-year covenant-lite first-lien term loan B (B2/B) at Libor plus 400 bps to 425 bps with a 0.5% Libor floor and an original issue discount of 99, according to a market source.

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

Commitments are due at 5 p.m. ET on Oct. 8.

Deutsche Bank Securities Inc., RBC Capital Markets LLC, Jefferies LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Mizuho and Nomura are leading the deal.

White Cap being acquired

White Cap’s new term loan will be used to help fund its buyout by Clayton, Dubilier & Rice from HD Supply Holdings Inc. and its combination with Construction Supply Group.

At closing of both transactions, Clayton, Dubilier & Rice funds will hold a 65% ownership interest in the combined company, and the current shareholders of Construction Supply Group, led by Sterling Group, will hold a 35% interest.

The acquisition of White Cap is expected to close in October and is not conditioned on the closing of the acquisition of Construction Supply Group.

White Cap is a distributor of specialty concrete and construction products. Construction Supply Group is a distributor of specialty concrete and masonry accessories.

Infoblox sets talk

Infoblox revealed price talk on its first-and second-lien term loans with its morning lender call, a market source said.

The $1.29 billion seven-year covenant-lite first-lien term B (B2/B-/B-) is talked at Libor plus 400 bps with a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, and the $455 million eight-year covenant-lite second-lien term loan (Caa2/CCC/CCC) is talked at Libor plus 775 bps with a 0.75% Libor floor, a discount of 98.5 to 99 and hard call protection of 102 in year one and 101 in year two, the source continued.

The company’s $1.945 billion of senior secured credit facilities also include a $200 million five-year revolver (B2/B-/B-).

Commitments are due at noon ET on Oct. 9, the source added.

Infoblox lead banks

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, BofA Securities Inc., Jefferies LLC, Macquarie Capital (USA) Inc., UBS Investment Bank and Mizuho are leading Infoblox’s credit facilities.

The new debt will be used to fund the acquisition of a 50% equity stake in the company by Warburg Pincus, refinance existing debt and pay related fees and expenses. Existing private equity sponsor Vista Equity Partners will retain equal equity ownership.

Infoblox is a Santa Clara, Calif.-based provider of core networking and cybersecurity solutions.

WCG holds call

WCG Purchaser hosted a lender call at 2 p.m. ET to launch a $125 million incremental first-lien term loan due Jan. 8, 2027 talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 98 to 98.6 and 101 soft call protection through January 2021, according to a market source.

Commitments are due at noon ET on Oct. 6, the source added.

Barclays is leading the deal that will be used to fund tuck-in mergers and acquisitions and for general corporate purposes.

The spread, floor and call protection on the incremental term loan match the existing first-lien term loan.

WCG is Princeton, N.J.-based provider of clinical trial optimization solutions.

Wheelabrator on deck

Wheelabrator set a lender call for 11 a.m. ET on Wednesday to launch a $72.5 million incremental term loan B due Sept. 19, 2022 and an extension of its existing $1.324 billion term loan B to Sept. 19, 2022 from December 2021, a market source remarked.

Commitments are due on Monday, the source added.

Deutsche Bank Securities Inc., Barclays, Citizens, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and RBC Capital Markets are leading the deal.

Wheelabrator is a Portsmouth, N.H.-based owner and operator of waste-to-energy facilities and independent power-producing facilities.

Genesys readies deal

Genesys will hold a lender call at 11 a.m. ET on Wednesday to launch a $2.825 billion seven-year term loan B and a $525 million euro equivalent seven-year term loan B, according to a market source.

BofA Securities Inc., Goldman Sachs Bank USA, Citigroup Global Markets Inc., RBC Capital Markets, Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing debt and fund a dividend.

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

Oxbow joins calendar

Oxbow Carbon scheduled a lender call for 9:30 a.m. ET on Wednesday to launch a $400 million five-year term loan B, a market source said.

BofA Securities Inc. is the left lead on the deal that will be used to refinance existing debt.

Oxbow Carbon is a West Palm Beach, Fla.-based recycler of refinery and natural gas byproducts.

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