DigiCert rises on investment news; Teneo revises loan; multiple deals see price talk emerge

By Sara Rosenberg

New York, July 9 – DigiCert Inc.’s term loan headed higher in the secondary market on Tuesday after news came out that the company is receiving a strategic growth investment from Clearlake Capital Group LP and TA Associates.

Moving to the primary market, Teneo Holdings LLC widened the spread, floor and original issue discount on its term loan, sweetened the call protection, shortened the maturity and made a sizeable amount of documentation changes.

Also, Sinclair Broadcast Group Inc. (Diamond Sports Group LLC), Sinclair Television Group Inc., Whatabrands LLC, Press Ganey Associates Inc. (Emerald TopCo Inc.), Ensemble Health Partners, Pregis LLC, ION Media Networks Inc., Insurity Inc., Ineos Enterprises and Garda World Security Corp. released price talk with launch.

Furthermore, PLZ Aeroscience Corp. and Boyd Corp. surfaced with new deal plans.

DigiCert gains ground

DigiCert’s term loan rose to par bid, par ¼ offered from 99¾ bid, par offered after it was announced that Clearlake Capital and TA Associates, an existing investor, are investing in the company, according to a market source.

As a part of the transaction, Clearlake and TA will become equal partners in DigiCert.

The company will continue to be led by chief executive officer John Merrill and the current management team, who are investing alongside Clearlake and TA in the transaction.

Closing is expected in the second half of this year, subject to customary regulatory approvals and conditions.

DigiCert is a Lehi, Utah-based provider of scalable security solutions.

Teneo reworks deal

Switching to the primary market, Teneo Holdings lifted pricing on its $365 million first-lien term loan (B2/B) to Libor plus 525 basis points from talk in the range of Libor plus 450 bps to 475 bps, removed the two 25 bps leverage-based steps, raised the Libor floor to 1% from 0%, revised the original issue discount to 96 from 99 and extended the 101 soft call protection to one year from six months, a market source remarked.

Additionally, the term loan maturity was shortened to six years from seven years, and documentation changes were made to MFN, excess cash flow sweep, asset sale sweep, incremental, available amount, general debt basket, investments, restricted payments, junior debt payments, IPO proceeds distribution basket, unlimited restricted payments and junior debt prepayments, EBITDA definition and quarterly lender call requirement.

Recommitments are due at noon ET on Friday, the source added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and Nomura are leading the deal that will be used to help fund the buyout of the company by CVC Capital Partners from BC Partners.

Closing is subject to regulatory approval and other customary conditions.

Teneo is a New York-based provider of strategic communications, investment banking, business intelligence, financial analytics, executive recruiting, management consulting and corporate restructuring advisory services.

Sinclair sets guidance

Sinclair Broadcast and Sinclair Television held their bank meeting on Tuesday morning and released price talk on their term loans, according to a market source.

The Sinclair Broadcast $3.3 billion seven-year term loan B (BB) is talked at Libor plus 375 bps to 400 bps with a 0% Libor floor and an original issue discount of 99, and the Sinclair Television $700 million seven-year incremental term loan B (BB+) is talked at Libor plus 300 bps with a 0% Libor floor and an original issue discount of 99 to 99.5, the source said.

Both term loans have 101 soft call protection for six months and a commitment deadline of noon ET on July 18.

Based on filings with the Securities and Exchange Commission, Sinclair Broadcast is also expected to get a $300 million five-year revolver and Sinclair Television is expected to amend its existing credit agreement to get a $650 million revolver.

Sinclair lead banks

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., RBC Capital Markets and BofA Securities Inc. provided Sinclair with the debt commitment.

The new loans will be used with $2.55 billion of senior secured notes, $2,325,000,000 of senior unsecured notes and $1,025,000,000 of newly issued perpetual preferred equity of Diamond Sports to fund the acquisition of 21 Regional Sports Networks and Fox College Sports from the Walt Disney Co.

The total enterprise value of the assets is $10.6 billion, reflecting a purchase price of $9.6 billion, after adjusting for minority equity interests.

Consolidated net leverage is expected to be 4.7x and 5.1x through the preferred financing.

Closing on the acquisition is subject to customary conditions, including the approval of the U.S. Department of Justice.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

Whatabrands proposed terms

Whatabrands released talk of Libor plus 325 bps to 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $1.33 billion seven-year covenant-lite first-lien term loan B that launched with a lenders’ presentation in the morning, a market source said.

The company’s $1.53 billion of senior secured credit facilities also include a $200 million five-year revolver.

Commitments are due on July 23, the source added.

Morgan Stanley Senior Funding Inc., UBS Investment Bank and Credit Suisse Securities (USA) LLC are leading the deal, which will be used to fund the buyout of Whataburger by BDT Capital Partners LLC.

Closing is expected later this summer, subject to regulatory approval and other customary conditions.

Whatabrands is a San Antonio, Tex.-based restaurant company.

Press Ganey launches

Press Ganey launched at its morning bank meeting its $1.25 billion seven-year first-lien term loan at talk of 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.

The company’s $1.5 billion of credit facilities (B2/B) also include a $250 million revolver.

Commitments are due at 5 p.m. ET on July 22, the source said.

Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, BMO Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used with $453 million of second-lien notes privately placed with Goldman Sachs Merchant Banking Division and GIC to help fund the buyout of the company by Leonard Green & Partners LP and Ares Management Corp.

Closing is expected in the third quarter, subject to customary approvals.

Press Ganey is a South Bend, Ind.-based provider of patient experience measurement and performance improvement solutions to health care organizations.

Ensemble Health talk

Ensemble Health Partners released talk of Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 99 on its $672 million seven-year first-lien term loan (B2/B) that launched with an afternoon bank meeting, a market source said.

Commitments are due on July 22, the source added.

Goldman Sachs Bank USA, Antares Capital, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Guggenheim are leading the deal that will be used to help fund the buyout of a majority stake in the company by Golden Gate Capital from Bon Secours Mercy Health.

Closing is subject to regulatory approvals.

Ensemble Health is a revenue cycle management provider.

Pregis reveals guidance

Pregis held its bank meeting in the morning and, shortly before the event kicked off, price talk on its $615 million seven-year covenant-lite first-lien term loan (B2/B) was announced at Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

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

Commitments are due on July 23, the source said.

The company’s $955 million of credit facilities also include a $125 million revolver (B2/B) and a $215 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used to help fund the buyout of the company by Warburg Pincus from Olympus Partners.

Pregis is a Deerfield, Ill.-based protective packaging materials and automated systems manufacturer.

ION launches loan

ION Media Networks came out with talk of Libor plus 300 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $1,365,635,015 covenant-lite first-lien term loan B (B1/BB-) due December 2024 that launched with a presentation in the afternoon, a market source remarked.

Commitments/consents are due at noon ET on July 17, the source added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal, which will be used to extend an existing term loan and fund a distribution to shareholders.

ION is a West Palm Beach, Fla.-based television broadcast network.

Insurity discloses talk

Insurity held its bank meeting during the session and announced price talk on its $370 million seven-year first-lien term loan at Libor plus 400 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

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

Commitments are due on July 23, the source said.

The company’s $570 million of credit facilities also include a $40 million five-year revolver and a $160 million privately placed eight-year second-lien term loan.

Jefferies LLC and BofA Securities Inc. are leading the deal that will be used to help fund the buyout of the company by GI Partners.

Closing is expected in the third quarter.

Insurity is a Hartford, Conn.-based software platform for the property & casualty insurance industry.

Ineos price guidance

Ineos Enterprises released talk of Libor/Euribor plus 325 bps to 350 bps with a 0% floor and an original issue discount of 99 to 99.5 on its €525 million equivalent U.S. dollar seven-year term loan B (Ba3/BB) and €525 million seven-year term loan B (Ba3/BB), according to a market source.

The company’s €1.7 billion equivalent credit facilities also include a €350 million five-year term loan A (Ba3/BB) and a €300 million three-year receivables securitization facility.

A bank meeting for European investors took place in London on Tuesday and a meeting for U.S. investors will take place in New York on Wednesday.

Commitments are due on July 25.

Barclays, BNP Paribas and NatWest Markets are leading the deal that will be used to finance acquisitions, refinance existing debt and pay transaction expenses.

Ineos is a London-based producer of intermediate chemicals.

Garda floats OID

Garda World Security launched on its morning call its $194.5 million incremental first-lien term loan B due May 26, 2024 with original issue discount talk of 99.05, a market source said.

Like the existing term loan, the incremental term loan is priced at Libor plus 350 bps with a 1% Libor floor, and all of the debt is getting 101 soft call protection for six months.

The incremental loan is expected to be fungible with the existing term loan B.

Commitments are due at noon ET on July 16, the source added.

Barclays is leading the deal that will be used to fund acquisitions, including Whelan Security and CPS Security.

Rhone Group is the sponsor.

Garda is a Montreal-based provider of cash logistics and security solutions.

PLZ joins calendar

PLZ Aeroscience set a lender call for Thursday to launch $719 million of credit facilities, according to a market source.

The facilities consist of a $75 million revolver and a $644 million covenant-lite term loan, the source said.

Antares Capital and BMO Capital Markets are leading the deal that will be used to refinance existing debt, including an existing $30 million revolver.

PLZ, a portfolio company of Pritzker Private Capital, is a Downers Grove, Ill.-based producer of specialty aerosol products.

Boyd readies loan

Boyd scheduled a lender call for Wednesday to launch a non-fungible $125 million seven-year incremental first-lien term loan talked at Libor plus 475 bps with step-downs based on leverage and an initial public offering and a 0% Libor floor, a market source remarked.

Commitments are due at noon ET on July 17, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to fund an acquisition. RBC Capital Markets is the administrative agent.

Boyd is a Pleasanton, Calif.-based provider of highly engineered thermal management and environmental sealing solutions.

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