Switch, Oxbow Carbon, BenefitMall, EVO Payments International, PDC Brands break for trading

By Sara Rosenberg

New York, Dec. 18 – Switch Ltd. finalized pricing on its term loan B at the wide end of guidance and then emerged in the secondary market on Monday, with levels quoted above its issue price.

Other deals to free up for trading during the session included Oxbow Carbon LLC, BenefitMall (BMC Acquisition Inc.), EVO Payments International and PDC Brands (Parfums Holding Co. Inc.).

Switch firms, trades

Switch set the spread on its $598.5 million covenant-light term loan B due June 2024 at Libor plus 225 basis points, the high end of the Libor plus 200 bps to 225 bps talk, according to a market source.

As before, the term loan has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

With final terms in place, the term loan B broke for trading on Monday and levels were seen at par 1/8 bid, par 3/8 offered, a trader added.

BMO Capital Markets and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 275 bps with a step-down to Libor plus 250 bps and a 0% Libor floor.

Closing is expected on Dec. 28.

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

Oxbow hits secondary

Oxbow Carbon’s bank debt also freed to trade, with the $450 million covenant-light first-lien term loan B (B1/BB-) quoted at par ½ bid and the $175 million covenant-light second-lien term loan (Caa1/B) quoted at par bid, a trader said.

Pricing on the term loan B is Libor plus 375 bps with a step-down to Libor plus 350 bps at 2.5 times net leverage and a 0% Libor floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has call protection of 103 in year one, 102 in year two and 101 in year three.

The company’s $1,175,000,000 of credit facilities include a $325 million revolver (B1/BB-) and a $225 million term loan A (B1/BB-) as well.

Oxbow lead banks

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, PNC, Rabobank and SunTrust Robinson Humphrey Inc. are leading Oxbow Carbon’s credit facilities.

During syndication, the term loan B was downsized from $575 million as the term loan A (B1/BB-) was upsized from $100 million, the spread firmed at the low end of the Libor plus 375 bps to 400 bps talk, the step-down was added and the discount was tightened from 99.5. Additionally, pricing on the second-lien term loan was reduced from talk in the range of Libor plus 775 bps to 800 bps talk and the discount was revised from 98.5.

Proceeds will be used to refinance existing debt.

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

BenefitMall frees ups

BenefitMall’s credit facilities began trading as well, with the $230 million seven-year covenant-light first-lien term loan quoted at 99½ bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 525 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The term loan has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from talk in the range of Libor plus 475 bps to 500 bps, the discount widened from 99.5 and the call protection was extended from six months.

The company’s $270 million of credit facilities (B2/B) also include a $40 million revolver.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used with equity to fund the buyout of the company by the Carlyle Group from an investor group led by Austin Ventures.

Closing is expected this year, subject to customary conditions.

BenefitMall is a Dallas-based provider of employee benefits and payroll services to small and medium sized businesses.

EVO Payments breaks

EVO Payments’ $567 million term loan broke too, with the debt seen at par ½ bid, according to a market source.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor and it was issued at par.

During syndication, the spread on the loan firmed at the low end of the Libor plus 400 bps to 425 bps talk.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 500 bps with a 1% Libor floor.

EVO Payments is an Atlanta-based payments processor and acquirer for merchants, independent sales organizations, financial institutions, government organizations and multinational corporations.

PDC tops issue price

PDC Brands’ fungible $25 million incremental term loan B due June 30, 2024 emerged in the secondary market, with levels quoted at par 5/8 bid, 101 1/8 offered, a trader remarked.

Pricing on the incremental loan is Libor plus 475 bps with a 1% Libor floor, in line with the existing term loan B, and it was issued at par. Like the existing loan, the incremental term loan has 101 soft call protection until June 30, 2018.

Nomura is leading the deal that will be used with up to $20 million of revolver borrowings to provide a distribution to shareholders.

Closing is expected next week.

PDC is a Stamford, Conn.-based beauty and personal care products company.

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