U.S. Security, Booz Allen free to trade; Alliant Insurance, Plaskolite loans come to market

By Sara Rosenberg

New York, July 7 – U.S. Security Associates Inc.’s credit facility made its way into the secondary market on Thursday, with the term loan B quoted above its issue price, and Booz Allen Hamilton Inc.’s loan transaction freed up as well.

Switching to the primary market, Alliant Insurance Intermediate LLC released price talk with launch, and Plaskolite LLC disclosed original issue discount guidance on its add-on first-lien term loan.

Also, Realogy Group LLC came out with timing and structure on its refinancing transaction, and Texas Competitive Electric Holdings Co. LLC joined the near-term new issue calendar.

U.S. Security starts trading

U.S. Security Associates’ credit facility broke for trading on Thursday, with the $450 million seven-year senior secured term loan B quoted at 99¾ bid, 100¾ offered, according to a market source.

Pricing on the term loan B is Libor plus 500 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan B was increased from Libor plus 475 bps, the discount firmed at the wide end of the 99 to 99.5 talk, the call protection was extended from six months, the incremental starter basket was decreased to $50 million from $100 million, the MFN sunset provision was removed, and the restricted payment builder starter basket was removed and the ratio test was reduced to 3.75 times first-lien secured leverage.

The company’s $525 million credit facility (B2/B+) also includes a $75 million revolver.

Goldman Sachs & Co., KeyBanc Capital Markets LLC, ING and Mizuho are leading the deal that will be used by the Roswell, Ga.-based safety and security services company to refinance existing bank debt.

Booz Allen frees up

Booz Allen Hamilton’s $400 million seven-year term loan B (Ba2/BB) also hit the secondary market, with levels quoted at 100 1/8 bid, without any offers, a trader remarked.

Pricing on the term loan B is Libor plus 275 bps with no floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

Recently, the term loan B was downsized from $541 million as the company’s term loan A was upsized by $141 million, pricing was cut from the Libor plus 300 bps area, the 0.75% Libor floor was eliminated, and the discount was tightened from 99.5.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, SMBC and Fifth Third are leading the deal.

Booz Allen refinancing

Proceeds from Booz Allen’s term loan B will be used to help refinance an existing term loan B.

The company said in a recent filing with the Securities and Exchange Commission that it is working on a repricing and maturity extension of the $1,618,000,000 of debt outstanding under its revolver, term loan A and term loan B and reallocating a portion of the debt currently under its term loan B to its term loan A.

At March 31, there was $741.8 million outstanding under the term loan A due May 31, 2019 and $841.2 million outstanding under the term loan B due July 31, 2019.

Booz Allen is a McLean, Va.-based provider of management and technology consulting services, and engineering services to governments, corporations and not-for-profit organizations.

Alliant discloses talk

Moving to the primary market, Alliant Insurance held its lender call on Thursday morning, launching its $280 million senior secured incremental first-lien covenant-light term loan B due Aug. 14, 2022 with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, a market source said.

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

Morgan Stanley Senior Funding Inc., MCS Capital Markets LLC and KKR Capital Markets LLC are leading the debt that will be used to finance acquisitions.

Alliant Insurance is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Plaskolite OID guidance

Plaskolite came out with original issue discount talk of 99 to 99.5 on its fungible $70 million add-on first-lien term loan (B) that launched with an afternoon lender call, a source remarked.

As previously reported, based on an existing leverage based grid, pricing on the pro forma $381.6 million first-lien term loan will be Libor plus 475 bps with a 1% Libor floor.

Commitments are due on July 14 and closing and funding is targeted for July 19, the source added.

Antares Capital and KeyBanc Capital Markets LLC are leading the deal that will be used with a privately placed $15 million add-on to the company’s existing $105 million second-lien term loan to fund a distribution to shareholders and pay transaction-related fees and expenses.

Plaskolite is a Columbus, Ohio-based manufacturer of acrylics and other plastic products supplying a diverse range of end markets. The company was acquired by Charlesbank Capital Partners and management in November 2015.

Realogy sets call

Realogy scheduled a lender call for 11 a.m. ET on Friday to launch $1.43 billion of term loans (Ba1/BB+), consisting of a $1.1 billion term loan B due 2022 and a $330 million term loan A due 2021, according to a market source.

The term loan B is talked at Libor plus 300 bps with a 0.75% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC is leading the debt that will be used with revolver borrowings and cash on hand will be used to refinance an existing roughly $1.9 billion term loan B.

Closing is expected in mid-July.

Realogy is a Madison, N.J.-based real estate company.

Texas Competitive on deck

Texas Competitive Electric Holdings set a bank meeting for 1 p.m. ET in New York on Tuesday to launch $3.5 billion in covenant-light term loans, according to a market source.

The debt is split between a $2.85 billion term loan B and a $650 million term loan C, the source said.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, UBS Investment Bank and Natixis are leading the financing, which is a DIP roll-up that will convert to an exit facility.

The company disclosed recently in its debt commitment letter that, along with the term loans, it expects to get a $750 million revolver.

Texas Competitive is a Dallas-based power generation company.

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