Vivint, Sabre GLBL, Skillsoft, United Talent, Shutterfly, Avantor break; Gastro tweaks deal

By Sara Rosenberg

New York, July 1 – Vivint (APX Group Inc.) increased the size of its term loan B and lowered the spread and Sabre GLBL Inc. tightened the original issue discount on its term loan, and then both of these deals made their way into the secondary market on Thursday.

Also, ahead of breaking for trading, Skillsoft widened the spread and issue price on term loan B, and sweetened the call protection, and United Talent Agency firmed the original issue discount on its term loan.

Other deals to surface in the secondary market during the session included Shutterfly LLC and Avantor Inc.

In more happenings, Gastro Health revised the original issue discount on its first-lien term loan debt, and Datasite joined the near-term primary calendar.

Vivint revised, trades

Vivint raised its seven-year covenant-lite term loan B to $1.35 billion from $1.25 billion and trimmed pricing to Libor plus 350 basis points from Libor plus 375 bps, according to a market source.

As before, the term loan has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

On Thursday, the term loan B freed to trade, with levels quoted at 99¾ bid, par 1/8 offered, a trader added.

BofA Securities Inc. is the left lead on the deal that will be used with $800 million of senior notes, downsized from $900 million, and $140 million of cash from the balance sheet to refinance an existing term loan B, 7.875% senior secured notes due 2022, 8.5% senior secured notes due 2024 and 7.625% senior notes due 2023.

The company also plans on getting a $350 million five-year revolver.

Vivint is a Provo, Utah-based smart home services provider.

Sabre tweaked, frees

Sabre GLBL adjusted the original issue discount on its $1.04 billion term loan (Ba3) due December 2027 to 99.75 from 99.5 a market source remarked.

Pricing on the term loan remained at Libor plus 350 bps with a 0.5% Libor floor.

In the afternoon, the term loan broke for trading, with levels quoted at 99 7/8 bid, par 1/8 offered, a trader added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan due December 2027 and repay revolver borrowings.

Sabre is a Southlake, Tex.-based software and technology company for the travel industry.

Skillsoft reworked

Skillsoft raised pricing on its $480 million seven-year senior secured covenant-lite term loan B (B2/B-) to Libor plus 475 bps from Libor plus 375 bps, revised original issue discount talk to a range of 98 to 98.5 from 99.5, before finalized at 98.5 later in the day, and the modified the call protection to a 102 hard call for one year from a 101 soft call for six months, according to a market source.

Furthermore, the incremental was reduced to $160 million from $175 million and the reallocation of the general basket was removed. And, the leverage ratios were modified to 3x net first lien leverage, 3.75x net secured leverage and 4.5x net total leverage from 3.75x net first lien leverage, 4.5x net secured leverage and 5.25x net total leverage, with the interest coverage prong and “no worse” prong removed, the source continued.

The term loan still has a 0.75% Libor floor.

Skillsoft breaks

Recommitments for Skillsoft’s term loan B were due at 3 p.m. ET on Thursday and the debt freed to trade late in the day, with levels quoted at 99¼ bid, par ¼ offered, another source added.

Citigroup Global Markets Inc., BofA Securities Inc. and JPMorgan Chase Bank are leading the deal that will be used to refinance borrowings under existing term loan facilities and repay an existing accounts receivable facility.

Closing is expected in early-to-mid July.

Skillsoft is a Dublin-based provider of cloud-based learning services.

United Talent updated, frees

United Talent Agency set the original issue discount on its $300 million term loan B (B2/B+) at 99, the wide end of revised talk of 99 to 99.5 but in line with initial talk of 99, a market source remarked.

Pricing on the term loan is Libor plus 400 bps with a 0.75% Libor floor, and the debt has 101 soft call protection for six months.

Previously in syndication, pricing on the term loan firmed at the high end of the Libor plus 375 bps to 400 bps talk.

The term loan broke for trading during the session, with levels quoted at 99¼ bid, another source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt, fund a distribution and add cash to the balance sheet.

United Talent is a Los Angeles-based talent and entertainment company.

Shutterfly hits secondary

Shutterfly’s $1.105 billion senior secured term loan (B2/B-) due Sept. 25, 2026 began trading, with levels quoted at 99 5/8 bid, par 1/8 offered, a market source said.

Pricing on the term loan is Libor plus 500 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for one year. Of the total term loan amount, $215 million is delayed-draw and includes a ticking fee of half the spread from days 46 to 75 and the full spread thereafter.

During syndication, the term loan was upsized from $1.023 billion.

Barclays is the left lead on the deal.

Shutterfly buying Spoonflower

Shutterfly will use the new term loan to fund the acquisition of Spoonflower, a Durham, N.C.-based marketplace connecting makers and consumers with artists, for about $225 million and to refinance existing debt. The additional proceeds from the recent upsizing will repay a Spoonflower acquisition seller note and pay related fees and expenses.

The delayed-draw portion is for the funds needed to close the Spoonflower acquisition and upon closing/funding the delayed-draw will merge into the term loan B creating one tranche.

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

Apollo Global Management LLC is the sponsor.

Shutterfly is a Redwood City, Calif.-based manufacturer and seller of customizable photo-based products and services.

Avantor starts trading

Avantor’s bank debt also freed up, with the $1.172 billion term loan B-4 due 2027 quoted at 99 7/8 bid, par 1/8 offered, according to a trader.

Pricing on the term loan B-4 is Libor plus 225 bps with a 0.5% Libor floor and it was issued at par.

The company is also getting a $421 million term loan B-3 due 2024 priced at Libor plus 200 bps with a 0.5% Libor floor and issued at par.

BofA Securities Inc. is the left lead on the deal.

Proceeds will be used to reprice an existing term loan B-3 and an existing term loan B-4 down from Libor 225 bps with a 1% Libor floor.

Avantor is a Radnor, Pa.-based provider of mission-critical products and services to customers in the life sciences and advanced technologies & applied materials industries.

Gastro tightens

Back in the primary market, Gastro Health modified the original issue discount on its $300 million first-lien term loan (B2/B-) and $100 million delayed-draw first-lien term loan (B2/B-) to 99.5 from 99, a market source remarked.

As before, the first-lien term loan debt is priced at Libor plus 450 bps with a 0.75% Libor floor, and has 101 soft call protection for six months.

The company’s $550 million of credit facilities also include a $60 million revolver (B2/B-) and a $90 million privately placed second-lien term loan (Caa2/CCC).

BMO Capital Markets and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Omers.

Closing is expected this quarter, subject to certain conditions, including regulatory approvals.

Gastro Health is a Miami-based platform supporting medical groups specializing in the treatment of gastrointestinal disorders, nutrition and digestive health.

Datasite joins calendar

Datasite will hold a lender call at 10 a.m. ET on Tuesday to launch a $100 million equivalent add-on term loan, and a repricing of its existing $300 million term loan and €220 million term loan, according to a market source.

Talk on the U.S. term loan debt is Libor plus 375 bps with a 0.75% Libor floor and an original issue discount of 99.75, and talk on the euro term loan debt is Euribor plus 375 bps to 400 bps with a 0% floor and a discount of 99.75, the source said.

The U.S. and euro term loans are getting 101 soft call protection for six months.

Commitments are due at the end of the day on July 12, the source added.

JPMorgan Chase Bank is leading the deal.

Proceeds from the add-on term loan will be used for acquisition financing.

Datasite is a Minneapolis-based SaaS provider for the mergers and acquisitions industry.

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