Energizer, Kronos break; Virgin Media, Valeant, Infiltrator, Flint, TouchTunes tweak deals

By Sara Rosenberg

New York, May 20 – Energizer SpinCo Inc.’s credit facility made its way into the secondary market on Wednesday, with the term loan B seen trading above par, and Kronos Worldwide Inc.’s repriced loan freed up as well.

Over in the primary, Virgin Media upsized its term loan F and modified the original issue discount, and Valeant Pharmaceuticals International Inc. firmed its term loan D repricing at the wide end of talk and terminated plans for a term loan C repricing.

Also, Infiltrator Systems Integrated LLC shifted funds between its term loans and updated pricing, discount and call protection on the first-lien debt, and Flint Group (Colouroz Investment) downsized its U.S. term loan in favor of more euro term loan debt.

In addition, TouchTunes Interactive Networks Inc. set spreads on its first- and second-lien term loans while adjusting issue prices, Bombardier Recreational Products firmed the Libor floor on its repricing at the high end of talk and extended the call protection, and Camping World Inc. finalized the discount on its add-on term loan at the tight end of guidance.

Furthermore, Informatica Corp. and Sage Products Holdings III LLC came out with price talk on their deals, New Media Investment Group Inc. brought an add-on loan to market, CommScope Inc. revealed timing on the launch of its incremental term loan, and U.S. Shipping Corp. and Technicolor (Tech Finance & Co. SCA) emerged with new deal plans.

Energizer tops OID

Energizer SpinCo’s credit facility broke for trading on Wednesday, with the $400 million seven-year term loan B quoted at par 3/8 bid, par 7/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 250 basis points with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75. There is 101 soft call protection for one year.

During syndication, pricing on the B loan was reduced from talk of Libor plus 275 bps to 300 bps, the discount was changed from 99.5, and the call protection was extended from one year.

The company’s $650 million credit facility (Baa3) also includes a $250 million five-year revolver.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Bank of Tokyo Mitsubishi-UFJ and Citigroup Global Markets Inc. are leading the deal that will be used to help fund the spinoff of Energizer Holdings Inc.’s household products business into a newly formed publicly traded company named Energizer SpinCo.

Energizer SpinCo is a St. Louis-based manufacturer and marketer of batteries and lighting products.

Kronos frees up

Kronos’ repriced $347 million term loan B began trading too, with levels quoted at par bid, par ˝ offered, according to a trader.

The loan is priced at Libor plus 300 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Deutsche Bank Securities Inc. is the lead bank on the deal.

Through this transaction, the company is lowering pricing on its existing term loan from Libor plus 375 bps with a 1% Libor floor.

Closing is expected to occur on Thursday, a source added.

Kronos is a Chelmsford, Mass.-based provider of workforce management software.

Virgin Media reworked

Virgin Media lifted the size of its term loan F due June 2023 to $1,855,000,000 from a minimum size of $1.2 billion and changed the original issue discount to 99.25 from 99.5, a market source said, adding that allocations are targeted for Thursday.

As before, the loan is priced at Libor plus 275 bps with a 0.75% Libor floor and has 101 soft call protection for six months.

Bank of America Merrill Lynch, Scotiabank and Goldman Sachs are leading the deal that will be used to extend/refinance the company’s existing $1,855,000,000 term loan due June 2020 priced at Libor plus 275 bps with a 0.75% Libor floor.

Virgin Media, a subsidiary of Liberty Global plc, is a Hook, England-based provider of broadband, TV, mobile phone and home phone services.

Valeant modified

Valeant Pharmaceuticals set the spread on the repricing of its $1,109,000,000 series D term loan due February 2019 at Libor plus 275 bps, the high end of the Libor plus 250 bps to 275 bps, a source said.

The repriced term D has a step-down to Libor plus 250 bps when net first-lien leverage is below 1.75 times, the source continued, and, as before, a 0.75% Libor floor and a par issue price.

The repricing is taking the D loan down from Libor plus 300 bps with a 0.75% Libor floor.

In addition, the company cancelled a repricing of its $853 million series C term loan due December 2019 that was talked at Libor plus 250 bps to 275 bps with a 0.75% Libor floor and a par issue price, the source added. Current pricing on this loan is Libor plus 300 bps with a 0.75% Libor floor.

Deutsche Bank Securities and Barclays are leading the deal.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

Infiltrator changes emerge

Infiltrator Systems raised its seven-year first-lien covenant-light term loan to $245 million from $230 million, cut pricing to Libor plus 425 bps from Libor plus 450 bps, revised the original issue discount to 99.5 from 99 and extended the 101 soft call protection to one year from six months, according to a market source. This tranche still has a 1% Libor floor.

Meanwhile, the eight-year second-lien covenant-light term loan was reduced to $100 million from $115 million, the source said. Pricing on the debt was unchanged at Libor plus 875 bps with a 1% Libor floor and a discount of 98.5, and there is still call protection of 102 in year one and 101 in year two.

Deutsche Bank Securities, RBC Capital Markets and Nomura are leading the $345 million of term loans that will be used to help fund the buyout of the company by Teachers’ Private Capital.

Closing is expected late this month.

Infiltrator Systems is an Old Saybrook, Conn.-based, provider of engineered plastic chambers, synthetic aggregate leach fields, tanks and accessories for the onsite wastewater and stormwater industries.

Flint adjusts sizes

Flint Group trimmed its U.S. first-lien term loan due Sept. 7, 2021 to $806 million from $856 million and added a new €45 million term loan B-3 to its capital structure, a market source said.

The U.S. term loan is still priced at Libor plus 350 bps with a 1% Libor floor and a par issue price, after firming last week at the wide end of the Libor plus 325 bps to 350 bps talk and the tight end of the 99.9 to par talk.

The new term loan B-3 and the company’s €622 million first-lien term loan B-2 due Sept. 7, 2021 are priced at Euribor plus 325 bps with a 1% floor and a par issue price, the source said. Last week, the spread on the B-2 loan firmed at high end of the Euribor plus 300 bps to 325 bps talk, and the issue price was set at the tight end of the 99.9 to par talk.

All of the term loan debt is still getting 101 soft call protection for six months.

Flint lead banks

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Deutsche Bank Securities are leading Flint’s term loans that will be used to reprice existing U.S. and euro term loans.

In connection with the repricing, the company is amending its credit facility to increase the junior debt prepayment basket to €100 million from €30 million.

Closing is expected on Friday, the source added.

Flint is a Luxembourg-based supplier of inks and other print consumables.

TouchTunes tweaked

TouchTunes set pricing on its $170 million six-year first-lien term loan (B1/B+) at Libor plus 475 bps, the high end of the Libor plus 450 bps to 475 bps talk, and moved the original issue discount to 99.5 from 99, while leaving the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

As for the $62.5 million seven-year second-lien term loan (Caa1/CCC+), the spread firmed at Libor plus 825 bps, the low end of the Libor plus 825 bps to 850 bps talk, and the discount was revised to 98.5 from 98, the source said. This tranche still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $257.5 million credit facility also includes a $25 million revolver (B1/B+).

Recommitments were due at 5 p.m. ET on Wednesday, and allocations are expected early next week.

Citizens Bank and Societe Generale are leading the deal that will be used to help fund the buyout of the company by Searchlight Capital Partners LP.

TouchTunes is a New York-based in-venue interactive music and entertainment platform.

Bombardier updated

Bombardier Recreational Products firmed the Libor floor on its $792 million term loan repricing at 1%, the wide end of the 0.75% to 1% talk, and pushed out the 101 soft call protection to one year from six months, while keeping the spread at Libor plus 275 bps and the issue price at par, according to a market source.

Through this transaction, the company is taking pricing on its term loan down from Libor plus 300 bps with a 1% Libor floor.

RBC Capital Markets and BMO Capital Markets are leading the deal.

Bombardier Recreational is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

Camping World sets OID

Camping World finalized the original issue discount on its $95 million add-on term loan at 99.75, the tight end of the 99.5 to 99.75 talk, and left pricing at Libor plus 425 bps with a 1% Libor floor, a market source remarked.

Proceeds from the add-on will be used to fund a dividend.

As originally planned, in connection with the add-on, the company is repricing its existing term loan to Libor plus 425 bps with a 1% Libor floor from Libor plus 475 bps with a 1% Libor floor, and offering the repriced loan to lenders at par.

All of the term loan debt is getting 101 soft call protection for six months.

Commitments were due at the close of business on Wednesday, the source continued. The deadline was moved up from noon ET on Thursday.

Goldman Sachs Bank USA is leading the deal for the supplier of RV parts, supplies and accessories.

Informatica launches

Informatica held its bank meeting on Wednesday, launching its $1,875,000,000 seven-year covenant-light term loan B with talk of Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $2,025,000,000 senior secured credit facility (B2/B) also includes a $150 million revolver.

Commitments are due at 5 p.m. ET on June 1, the source said.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Morgan Stanley Senior Funding, Nomura Securities International, RBC Capital Markets and Deutsche Bank Securities are leading the deal that will be used with $750 million of unsecured notes and about $2,542,000,000 in equity to fund the buyout of the company by Permira funds and Canada Pension Plan Investment Board for $48.75 in cash per share. The transaction is valued at $5.3 billion.

Closing is expected in the second or third quarter, subject to shareholder and regulatory approval.

Informatica is a Redwood City, Calif., provider of enterprise data integration software and services.

Sage reveals talk

Sage Products disclosed talk of Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its roughly $551 million first-lien term loan due Dec. 13, 2019 that launched with a call during the session, according to a market source.

Commitments are due on May 28, the source said.

Barclays and Deutsche Bank Securities are leading the deal that will be used to reprice an existing first-lien term loan from Libor plus 400 bps with a 1% Libor floor and extend the 101 soft call protection from a current expiration date of June 12.

Sage Products is a Cary, Ill.-based developer of products primarily for hospital intensive care units, which help prevent hospital-acquired conditions.

New Media seeks add-on

New Media Investment Group approached lenders with a fungible $25 million add-on term loan due June 2020 that is talked at Libor plus 625 bps with a 1% Libor floor, in line with the existing term loan, and an original issue discount that is still to be determined, a market source said.

Citizens Bank is leading the deal.

Proceeds will be used for general corporate purposes, including repaying revolver debt and acquisitions, the source said.

New Media is a New York-based publisher of locally based print and online media.

CommScope timing surfaces

CommScope set a bank meeting for 10 a.m. ET on Thursday to launch its previously announced incremental seven-year term loan (BB), which is now known to be sized at $1.25 billion, according to a market source.

Proceeds will be used with $1.5 billion of senior unsecured notes, $500 million of senior secured notes and cash on hand to fund the acquisition of TE Connectivity’s Telecom, Enterprise and Wireless businesses in an all-cash transaction valued at about $3 billion.

Early this year, the company had outlined the debt financing for the transaction as a $1.5 billion seven-year incremental term loan and $1.5 billion of notes.

JPMorgan, Bank of America Merrill Lynch, Deutsche Bank Securities and Wells Fargo Securities LLC are leading the deal.

Closing is expected by year-end, subject to financing, regulatory approvals and other customary conditions.

CommScope is a Hickory, N.C.-based provider of infrastructure services for communication networks.

U.S. Shipping on deck

U.S. Shipping will hold a bank meeting at 10 a.m. ET on May 27 to launch a $220 million six-year first-lien term loan B, a market source said.

The company’s proposed $255 million credit facility also includes a $10 million five-year revolver and a $25 million seven-year second-lien term loan that was privately placed, the source said.

RBC Capital Markets is leading the deal that will be used to refinance existing debt.

U.S. Shipping is an Edison, N.J.-based provider of long-haul marine transportation services, principally for refined petroleum products.

Technicolor coming soon

Technicolor scheduled a lender call for Thursday to launch a repricing of its $763 million term loan due July 10, 2020 and its €301 million term loan due July 10, 2020 that is talked at Libor/Euribor plus 375 bps to 400 bps with a 1% floor, an original issue discount of 99.75 for existing lenders and 99.5 for new money, and 101 soft call protection for six months, according to a market source.

Proceeds will be used to reprice existing U.S. and euro term loans from Libor/Euribor plus 450 bps with a 1% floor.

Goldman Sachs and JPMorgan are the leads on the deal, with Goldman left lead on the U.S. term loan and JPMorgan left lead on the euro term loan.

Technicolor is a technology company focused on the media and entertainment sector.

© 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.