Quantum Health, Asurion, Cloudera, Tank Holding loan transactions free to trade

By Sara Rosenberg

New York, Dec. 18 – Quantum Health Inc. finalized the original issue discount on its first-lien term loan at the wide end of guidance and then the debt made its way into the secondary market on Friday afternoon.

Other deals to free up for trading during the session included Asurion LLC, Cloudera Inc. and Tank Holding Corp.

Quantum updated, breaks

Quantum Health set the original issue discount on its $300 million seven-year covenant-lite first-lien term loan at 98.5, the wide end of the 98.5 to 99 talk, according to a market source.

As before, the term loan is priced at Libor plus 500 basis points with a 0.75% Libor floor and has 101 soft call protection for six months.

The company’s $360 million of credit facilities (B3/B-) also include a $60 million revolver.

Recommitments were due at 11 a.m. ET on Friday and the term loan freed to trade in the afternoon, with levels quoted at 98¾ bid, 99¼ offered, another source added.

Credit Suisse Securities (USA) LLC, Jefferies LLC, UBS Investment Bank and Mizuho are leading the deal that will be used to help fund a significant investment in the company by Warburg Pincus. Great Hill Partners, which invested in Quantum Health in 2017 and is the company’s current majority shareholder, will retain a significant stake.

Quantum Health is a Columbus, Ohio-based consumer health care navigation and care coordination company.

Asurion starts trading

Asurion’s $3.1 billion six-year term loan B-8 (Ba3/B+) surfaced in the secondary market, with levels quoted at 99 bid, 99¼ offered, a market source said.

Pricing on the term loan B-8 is Libor plus 325 bps with a 0% Libor floor and it was sold at an original issue discount of 98.75. The loan has 101 soft call protection for six months.

During syndication, the term loan B-8 was upsized from $2.087 billion and the discount was tightened from talk in the range of 97.5 to 98.

BofA Securities Inc., Morgan Stanley Senior Funding, Inc., Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing term loan B-4 and, due to the recent upsizing, term loan B-6 borrowings.

Asurion is a Nashville-based provider of technology protection services.

Cloudera frees up

Cloudera’s $500 million seven-year senior secured covenant-lite term loan B (Ba3/BB-) broke as well, with levels quoted at par bid, par ¾ offered, a market source remarked.

Pricing on the term loan is Libor plus 250 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 six months.

During syndication, pricing on the term loan was flexed lower from revised talk in the range of Libor plus 275 bps to 300 bps and initial talk of Libor plus 325 bps, and the discount was modified from 99.

Citigroup Global Markets Inc., BofA Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used for general corporate purposes, for share repurchases and to pay transaction-related fees and expenses.

Closing is expected on Tuesday.

Cloudera is a Santa Clara, Calif.-based enterprise data cloud company.

Tank hits secondary

Tank Holding’s $240 million incremental covenant-lite first-lien term loan B (B2/B-) due March 2026 began trading too, with levels quoted at 99½ bid, par ½ offered, according to a market source.

Pricing on the incremental term loan is Libor plus 500 bps with a 0.75% Libor floor and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from Libor plus 550 bps and the discount was tightened from 98.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used with a privately placed incremental second-lien term loan to fund a dividend to shareholders and tuck-in acquisitions under letters of intent.

Alongside the new loan, the company sought an amendment to its existing $518 million first-lien term loan B and lenders are being paid a 25 bps amendment fee.

Closing is expected during the week of Dec. 21.

Tank Holding is a Lincoln, Neb.-based manufacturer of rotationally molded poly and welded steel bulk storage and material handling products.

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