Las Vegas Sands, Lions Gate, Traeger deals updated; Filtration, Wyndham and more set talk

By Sara Rosenberg

New York, March 20 – In the primary market on Tuesday, Las Vegas Sands LLC set the issue price on its term loan at the tight side of talk and extended the maturity, Lions Gate Entertainment Corp. increased the sizes of its term loan A and term loan B and modified the issue price on the institutional tranche, and Traeger Grills (TGP Holdings III LLC) finalized the spread on its first-lien term loan debt at the low end of guidance.

Also, Filtration Group Corp., Wyndham Hotels & Resorts Inc., Stars Group Inc., Shape Technologies (Waterjet Holdings Inc.), Vivid Seats LLC, West Corp. and Bowlero Corp. released talk with launch.

Additionally, ConvergeOne Holdings Corp., Rocket Software Inc., TravelClick Inc., AES Corp., Cast & Crew Entertainment Services LLC and Duff & Phelps hopped onto this week’s primary calendar.

Las Vegas Sands tweaked

Las Vegas Sands set the issue price on its $2,183,000,000 term loan B at par, the tight end of the 99.75 to par talk, and pushed out the maturity date to March 2025 from March 2024, a market source said.

Pricing on the loan is still Libor plus 175 basis points with a 0% Libor floor, and the debt still has 101 soft call protection for six months.

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

Bank of Nova Scotia, Bank of America Merrill Lynch, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Fifth Third Bank and Goldman Sachs Bank USA are leading the deal. Scotia is the administrative agent.

The loan will be used to reprice and extend an existing term loan down due March 2024 from Libor plus 200 bps with a 0% Libor floor.

Las Vegas Sands is a Las Vegas-based developer and operator of integrated resorts.

Lions Gate restructured

Lions Gate Entertainment upsized its five-year term loan A to $750 million from $500 million and its seven-year term loan B to $1.25 billion from $1,025,000,000, and tightened the issue price on the term loan B to par from talk in the range of 99.75 to 99.875, a market source remarked.

As before, the term loan A is priced at Libor plus 175 bps and the term loan B is priced at Libor plus 225 bps with a 0% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt, including a $1 billion revolver, a $950 million term loan A and an $825 million term loan B.

Lions Gate is a Santa Monica, Calif.-based entertainment company.

Traeger Grills firms

Traeger Grills set pricing on its $47 million incremental first-lien term loan (B-) due September 2024, and repricing of its existing $254 million first-lien term loan (B-) due September 2024 and $40 million delayed-draw first-lien term loan due September 2024 at Libor plus 425 bps, the tight end of the Libor plus 425 bps to 450 bps talk, according to a market source.

As before, the incremental loan is offered with an original issue discount of 99.75, the repricing is offered at par with a 25 bps amendment fee, and all of the term loan debt has a 1% Libor floor and 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Tuesday, the source said.

Credit Suisse Securities (USA) LLC is leading the deal.

The incremental loan will be used to fund an earn-out payment and the repricing will take the existing first-lien term loan debt down from Libor plus 500 bps with a 1% Libor floor.

Traeger is a Salt Lake City-based designer of outdoor cooking products.

Filtration reveals talk

Also in the primary market, Filtration Group held its lender call on Tuesday and announced price talk on its $1,653,000,000 equivalent U.S. and euro seven-year senior secured first-lien term loan B (B2/B), according to a market source.

The U.S. tranche is talked at Libor plus 325 bps to 350 bps and the euro tranche is talked 25 bps wider than the U.S. piece at Euribor plus 350 bps to 375 bps, the source said. Both loans are talked with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The euro tranche will be sized at up to €250 million.

Commitments are due at noon ET on March 27, the source added.

Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to fund mergers and acquisitions and to refinance existing debt.

Filtration Group is a Chicago-based manufacturer and distributor of filtration products to end markets.

Wyndham terms emerge

Wyndham Hotels & Resorts launched with a bank meeting its $1.6 billion seven-year covenant-light term loan B (Baa3/BBB-) at talk of Libor plus 200 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on March 28, the source added.

Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., Bank of Nova Scotia, MUFG and US Bank are leading the deal that will be used to help fund the acquisition of La Quinta Holdings Inc.’s hotel franchise and hotel management businesses for $1.95 billion in cash.

Under the agreement, stockholders of La Quinta will receive $8.40 per share in cash, about $1 billion in aggregate, and Wyndham will repay approximately $715 million of La Quinta debt net of cash and set aside a reserve of $240 million for estimated taxes expected to be incurred in connection with the taxable spinoff of La Quinta’s owned real estate assets into CorePoint Lodging Inc.

Closing is expected in the second quarter, subject to approval by La Quinta stockholders, regulatory and government approval and the satisfaction of other customary conditions.

Wyndham Hotels is a Parsippany, N.J.-based hotel franchisor.

Stars holds call

Stars Group had its lender call in the morning and released price talk on its $2,196,000,000 seven-year covenant-light term loan and $599 million euro equivalent seven-year covenant-light term loan, according to a market source.

Talk on the U.S. term loan is Libor plus 300 bps to 325 bps and talk on the euro term loan is Euribor plus 325 bps to 350 bps, the source said. Both loans are talked with a 0% floor, an original issue discount of 99.75, or a 25 bps extension for those cashless rolling, and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on March 28.

Deutsche Bank Securities Inc. and Macquarie Capital (USA) Inc. are leading the $2,795,000,000 in term loans (B2/B+) that will be used to amend and extend a $1,896,000,000 term loan and a $474 million euro equivalent term loan, and the $425 million in incremental debt raised will be used to fund recent acquisitions and repay second-lien term loan borrowings.

Stars Group is a Toronto-based provider of technology-based products and services in the gaming and interactive entertainment industries.

Shape discloses guidance

Shape Technologies came out with talk of Libor plus 325 bps to 350 bps with a 0% Libor floor and an original issue discount of 99.5 on its $300 million seven-year covenant-light first-lien term loan (B2/B) shortly before its afternoon bank meeting kicked off, a market source said.

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

Commitments are due on April 3.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Barclays are leading the deal that will be used to refinance existing debt.

Shape Technologies is a Kent, Wash.-based provider of automation solutions utilizing ultra-high pressure technology.

Vivid sets price talk

Vivid Seats launched with a call its $522 million first-lien term loan B due June 30, 2024 at talk of Libor plus 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Barclays, RBC Capital Markets, SunTrust Robinson Humphrey Inc. and Jefferies LLC are leading the deal that will be used to reprice an existing first-lien term loan B.

Vivid Seats is a Chicago-based secondary ticket marketplace for live sports, concerts and theater events.

West floats OID

West Corp. held its bank meeting in the morning, launching its $350 million incremental first-lien term loan due Oct. 10, 2024 at original issue discount talk of 99.75 to par, according to a market source.

The incremental loan is priced in line with the existing term loan at Libor plus 400 bps with a 1% Libor floor, and includes 101 soft call protection through October 2018.

Commitments are due on March 27.

Credit Suisse Securities (USA) LLC is leading the deal, and RBC Capital Markets is involved as well.

The new term loan will be used to fund the acquisition of the public relations and webcasting and webhosting products and services within Nasdaq Inc.’s Corporate Solutions business for about $335 million, subject to adjustments.

Closing is expected in the second quarter, subject to regulatory approvals and customary conditions.

West is an Omaha-based provider of communication and network infrastructure services.

Bowlero launches add-on

Bowlero launched with a call a fungible $113 million add-on first-lien term loan (B2/B) talked with an original issue discount of 99.875 to par, a market source said.

The add-on term loan is priced at Libor plus 425 bps with a 1% Libor floor, in line with the existing term loan, and has 101 soft call protection through July 2018.

J.P. Morgan Securities LLC is leading the deal that will be used to repay second-lien term loan borrowings.

Bowlero is a New York-based operator of bowling centers.

ConvergeOne joins calendar

ConvergeOne scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch a $650 million seven-year covenant-light first-lien term loan that has a 1% Libor floor and 101 soft call protection for six months, a market source remarked.

Commitments are due on April 4, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

ConvergeOne is an Eagan, Minn.-based provider of communications solutions.

Rocket readies deal

Rocket Software set a lender call for 10 a.m. ET on Wednesday to launch an $85 million incremental first-lien term loan due October 2023 and a repricing of its existing $667 million first-lien term loan due October 2023, according to a market source.

The term loans are talked at Libor plus 375 bps to 400 bps with a 1% Libor floor and 101 soft call protection for six months, the source said. Original issue discount talk on the incremental loan is 99.5 and the repricing is offered at par.

Commitments are due at 5 p.m. ET on March 28, the source added.

Credit Suisse Securities (USA) LLC is leading the deal.

The incremental loan will be used to fund tuck-in acquisitions and the repricing will take the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Rocket Software is a Waltham, Mass.-based software development firm.

TravelClick coming soon

TravelClick will hold a lender call at 10 a.m. ET on Wednesday to launch a $34 million incremental first-lien term loan (B1/B-) due May 6, 2021 and a repricing of its existing $446 million first-lien term loan (B1/B-) due May 6, 2021, a market source remarked.

The term loans have a 1% Libor floor and 101 soft call protection for six months, the source added.

Commitments are due on March 28.

Credit Suisse Securities (USA) LLC is the left lead on the deal.

The incremental loan will be used to repay a portion of the company’s second-lien term loan.

TravelClick is a New York-based provider of solutions to the hospitality industry.

AES repricing

AES scheduled a lender call for 10 a.m. ET on Wednesday to launch a repricing of its existing $521,062,500 senior secured covenant-light term loan B due May 2022, according to a market source.

The repriced loan has a 0% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due at noon ET March 27.

Barclays is leading the deal that will reprice the existing term loan B down from Libor plus 200 bps with a 0.75% Libor floor.

The size of the term loan B excludes a pending 0.25% amortization payment scheduled for March 29.

Pro forma senior secured leverage is 0.8 times and total leverage is 4.3 times.

AES is an Arlington, Va.-based power company.

Cast & Crew on deck

Cast & Crew Entertainment Services will hold a lender call at 1 p.m. ET on Thursday to launch a $493 million first-lien term loan talked at Libor plus 250 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

RBC Capital Markets is the left lead arranger on the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 0% Libor floor.

Cast & Crew, a Silver Lake portfolio company, is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry.

Duff & Phelps on deck

Duff & Phelps set a lender call for 10:30 a.m. ET on Wednesday to launch a new loan, according to a market source.

UBS Investment Bank and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of Kroll.

Closing is expected in the second quarter, subject to customary conditions and regulatory approval.

Duff & Phelps is a New York-based independent advisor with expertise in the areas of valuation, corporate finance, disputes and investigations, compliance and regulatory matters, and other governance-related issues. Kroll is a provider of investigations and risk solutions.

© 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.