GEO, RPI, Summit, Eldorado, Navex break; Lumileds, Avast, Lightstone, Foresight revised

By Sara Rosenberg

New York, March 16 – GEO Group Inc.’s term loan B freed up for trading on Thursday above its original issue discount and deals from Royalty Pharma (RPI Finance Trust), Summit Midstream Partners Holdings LLC, Eldorado Resorts Inc. and Navex Global hit the secondary market too.

Over in the primary market, Lumileds (Bright Bidco BV) tightened the spread and original issue discount on its term loan, and Avast Software upsized its U.S. and euro term loans, set the spread on the euro tranche at the low side of talk and firmed the issue price on both loans at the tight end of guidance.

Also, Lightstone Holdco LLC firmed pricing on its term loans at the low end of talk, Foresight Energy LLC upsized its term loan and Greektown Holdings LLC, Big Jack’s Holdings LP (Jack’s Family Restaurant) and Advanced Integration Technology LP accelerated the commitment deadlines on their term loans.

In addition, RGIS Services LLC, Las Vegas Sands LLC and Technicolor SA released price talk with their launches and Spectrum Brands Inc., AlixPartners LLP, nThrive Inc. and Gates Global LLC emerged with new deal plans.

GEO frees up

GEO Group’s $800 million seven-year term loan B began trading on Thursday, with levels quoted at par bid on the break. The loan then got as high as par 3/8 bid, 101 3/8 offered before settling in at par 3/8 bid, par 7/8 offered, according to a trader.

Pricing on the term loan B is Libor plus 225 basis points 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, the term loan B was upsized from $700 million and pricing was reduced from talk of Libor plus 250 bps to 275 bps.

BNP Paribas Securities Corp. is leading the deal that will be used to repay an existing term loan B and to fund the acquisition of Community Education Centers for $360 million in an all-cash transaction, excluding transaction related expenses. Funds from the upsizing will be used for general corporate purposes.

Closing on the acquisition is expected in the second quarter, subject to customary conditions.

GEO is a Boca Raton, Fla.-based real estate investment trust specializing in correctional, detention and community reentry facilities. Community Education Centers is a West Caldwell, N.J.-based provider of rehabilitative services and management services for correctional and detention facilities.

Royalty Pharma tops par

Royalty Pharma’s $1.1 billion six-year term loan B-6 and $3,383,000,000 delayed-draw term loan B-6 freed up too, with levels on both tranches seen at par ¼ bid, par 5/8 offered, a trader remarked.

Pricing on the B-6 debt is Libor plus 200 bps with a 0% Libor floor. The funded term loan was sold at an original issue discount of 99.75 while the delayed-draw term loan was issued at par. Both loans have 101 soft call protection for six months beginning on the delayed-draw funding date.

During syndication, pricing on the loans firmed at the low end of the Libor plus 200 bps to 225 bps talk.

Bank of America Merrill Lynch, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal (Baa2/BBB-).

Proceeds from the funded term loan will be used to help fund the acquisition of Perrigo Co. plc’s rights to the royalty stream from the net sales of the multiple sclerosis drug Tysabri for $2.2 billion of cash at closing and up to $650 million of potential milestone payments, and the delayed-draw term loan will refinance a term loan B-5 priced at Libor plus 250 bps with a 0% Libor floor, which has 101 soft call protection expiring in April.

Royalty Pharma is a New York-based acquirer of royalty interests in marketed and late-stage biopharmaceutical products.

Summit starts trading

Summit Midstream’s $300 million first-lien term loan B (B3/B-) due May 2022 emerged in the secondary market as well, quoted at par ½ bid, 101¼ offered, a market source said.

Pricing on the term loan is Libor plus 600 bps after firming on Wednesday at the low end of the Libor plus 600 bps to 625 bps talk. The debt has a 1% Libor floor and call protection of 102 in year one and 101 in year two. It was sold at an original issue discount of 99.

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

Summit Midstream Partners is a The Woodlands, Texas-based owner and operator of midstream energy infrastructure assets.

Eldorado breaks

Eldorado Resorts’ $1.45 billion seven-year covenant-light term loan B freed to trade, with levels seen at par ¼ bid, par ¾ offered, a source remarked.

Pricing on the loan is Libor plus 225 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, pricing on the loan was reduced from talk of Libor plus 250 bps to 275 bps and the issue price firmed at the tight end of revised talk of 99.75 to par and tight of initial talk of 99.75.

The company’s $1.75 billion credit facility (Ba3/BB) also includes a $300 million five-year revolver.

J.P. Morgan Securities LLC is leading the deal that will be used with $375 million in eight-year senior notes to help fund the acquisition of Isle of Capri Casinos Inc. for $23.00 in cash or 1.638 shares of Eldorado common stock, at the election of each Isle of Capri shareholder, reflecting total consideration of about $1.7 billion, inclusive of $929 million of long-term debt of Isle of Capri and its subsidiaries.

Net leverage is expected to be 5.1 times.

Closing is expected in the second quarter, subject to approval of stockholders and regulatory approvals.

Reno, Nev.-based Eldorado and St. Louis-based Isle of Capri are gaming and entertainment companies.

Navex hits secondary

Navex Global’s $282.4 million first-lien covenant-light term loan (B3/B-) due November 2021 also broke for trading. It was quoted at 99¾ bid, according to a trader.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor and the debt includes 101 soft call protection for six months.

Of the total term loan amount, $50 million is an add-on that was sold at an original issue discount of 99.5 that will be used to repay some second-lien term loan borrowings.

The remaining $232.4 million is a repricing of the existing term loan from Libor plus 475 bps with a 1% Libor floor and this portion was issued at par.

Antares Capital is leading the deal.

Navex is a Lake Oswego, Ore.-based provider of ethics and compliance software, content and services.

Lumileds changes surface

Switching to the primary market, Lumileds cut pricing on its $1.15 billion seven-year covenant-light first-lien term loan (Ba3/B+) to Libor plus 450 bps from talk of Libor plus 500 bps to 525 bps, removed the pricing step-downs, modified the original issue discount to 99.5 from 99, eliminated the MFN sunset and removed the asset sale sweep step-downs, a market source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Included in the term loan is a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Commitments were due at noon ET on Thursday and allocations are expected on Friday, the source added.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., ING Capital Markets and Rabobank are leading the deal that will help fund the acquisition of an 80.1% interest in the company by Apollo Global Management LLC from Royal Philips, which will retain the remaining 19.9% interest. The transaction values Lumileds at an enterprise value of about $2 billion, including debt and debt-like items.

Closing is expected in the first half of this year, subject to customary conditions and regulatory approvals.

Lumileds is a supplier of LED components and automotive lighting.

Avast reworks deal

Avast Software lifted its U.S. term loan B due September 2023 to $1.21 billion from $1,185,000,000 and its euro term loan B due September 2023 to €445 million from €395 million, according to a market source.

Additionally, pricing on the euro loan firmed at Euribor plus 350 bps, the low end of the Euribor plus 350 bps to 375 bps talk, and the issue price on both term loans finalized at par, the tight end of the 99.875 to par talk, the source said.

The U.S. loan is still priced at Libor plus 325 bps with a 1% Libor floor, the euro loan still has a 0% floor and both loans still have 101 soft call protection for six months.

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

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Bank of America Merrill Lynch are leading the deal that will be used to reprice and extend an existing U.S. term loan due September 2022 priced at Libor plus 400 bps with a 1% Libor floor and an existing euro term loan due September 2022 priced at Euribor plus 375 bps with a 1% floor, and, due to the upsizings, for general corporate purposes.

Avast is a Prague-based maker of security software.

Lightstone updated

Lightstone firmed pricing on its $1,625,000,000 covenant-light term loan B due January 2024 and $100 million term loan C (funded letter-of-credit facility) due January 2024 at Libor plus 450 bps, the low end of the Libor plus 450 bps to 475 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source remarked.

Originally, the term loan B was expected to be sized at $1,575,000,000 and the term loan C was expected at $150 million, but the sizes were changed shortly after the deal was announced and the adjusted sizes were outlined on last Friday’s lender call.

Commitments were due at 2 p.m. ET on Thursday, accelerated from 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the $1,725,000,000 in term loans that will be used to reprice an existing term loan B and term loan C from Libor plus 550 bps with a 1% Libor floor.

Lightstone is a portfolio of four power generation facilities.

Foresight upsizes

Foresight Energy lifted its five-year first-lien term loan to $825 million from $750 million in reaction to its bond offering being downsized to $425 million from $500 million, according to a market source.

Also, some covenant changes were made, including revising the secured leverage ratio test for additional parity lien debt in the permitted lien clause to 3.75 times from 4.25 times and adding a covenant that prohibits Hillsboro, Patton or any of their subsidiaries, at any time when they are unrestricted subsidiaries, from distributing insurance proceeds relating to Deer Run to anyone other than the issuer or a restricted subsidiary, the source said.

As before, the term loan is priced at Libor plus 575 bps with a 1% Libor floor and an original issue discount of 98.5, and has 101 soft call protection for one year.

On Wednesday, the spread on the term loan firmed at the high end of the Libor plus 550 bps to 575 bps talk and the discount widened from 99.

Foresight getting revolver

In addition to the term loan, Foresight Energy’s now $995 million senior secured credit facility includes a $170 million revolver.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Goldman Sachs Bank USA, Huntington, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are leading the deal that will be used with the bonds and about $78 million of cash on hand to refinance around $349 million in second-lien senior secured PIK notes due 2021, about $300 million in second-lien senior secured exchangeable PIK notes due 2017 and existing credit facilities, including the roughly $353 million outstanding under the revolver and the roughly $296 million term loan.

In connection with the refinancing, Murray Energy Corp. intends to contribute to Foresight Energy about $60.6 million in cash in the form of common equity and Murray Energy is expected to exercise its option to acquire an additional 46% voting interest in Foresight Energy GP LLC, increasing its voting interest to 80%.

Foresight Energy is a St. Louis-based producer and marketer of thermal coal.

Greektown moves deadline

Greektown Holdings’ accelerated the commitment deadline on its $375 million seven-year covenant-light first-lien term loan B (B2/B+) to 2 p.m. ET on Friday from 5 p.m. ET on Wednesday, a market source said.

The term loan is talked at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies Finance LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

Greektown is a gaming, hotel, dining and entertainment facility in Detroit.

Big Jack’s shutting early

Big Jack’s Holdings changed the commitment deadline on its $275 million seven-year term loan B to 5 p.m. ET on Friday from Monday, a market source remarked.

The term loan is talked at Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $305 million senior secured credit facility (B3/B) also includes a $30 million five-year revolver.

RBC Capital Markets LLC and Bank of America Merrill Lynch are leading the deal that will be used to refinance existing debt and fund a dividend.

Onex Partners Manager LP is the sponsor.

Big Jack’s is an Alabama-based operator of premium quick-service restaurants.

Advanced Integration accelerated

Advanced Integration Technology moved up the commitment deadline on its $107 million six-year incremental first-lien term loan to 4 p.m. ET on Friday from Tuesday, according to a market source.

Talk on the loan is Libor plus 550 bps with a step to Libor plus 475 bps on July 23, a 1% Libor floor, a par issue price and 101 soft call protection for six months.

UBS Investment Bank is leading the deal that will be used to fund an acquisition.

Advanced Integration is a Plano, Texas-based industrial automation and tooling company delivering turnkey factory integration to the aerospace industry.

RGIS reveals guidance

Also in the primary market, RGIS Services held its bank meeting on Thursday, launching its $460 million six-year first-lien term loan at talk of Libor plus 800 bps with a 1% Libor floor, an original issue discount of 98.5 and call protection of non-callable for one year, then at 103 in year two and 101 in year three, according to a market source.

The company’s $495 million credit facility (B3) also includes a $35 million five-year revolver.

Commitments are due at 5 p.m. ET on March 27, the source said.

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

RGIS is an Auburn Hills, Mich.-based provider of inventory services, data collection, insight, merchandising and optimization solutions.

Las Vegas details emerge

Las Vegas Sands LLC launched on its lender call a $2,183,000,000 seven-year term loan talked at Libor plus 200 bps with a 0% Libor floor, an original issue discount of 99.875 to par and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on March 23, the source added.

The Bank of Nova Scotia, Barclays, Bank of America Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Fifth Third Bank are leading the deal that will be used to refinance an existing term loan B that is priced at Libor plus 225 bps with a 0% Libor floor.

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

Technicolor discloses talk

Technicolor came out with price talk on its €560 million-equivalent U.S. and euro senior secured covenant-light term loan B due December 2023 in connection with its lender call on Thursday, a market source said.

The U.S. loan is talked at Libor plus 275 bps to 300 bps and the euro loan is talked at Euribor plus 300 bps to 325 bps, with both having a 0% floor, an original issue discount of 99.75 and 101 soft call protection for six months, the source continued.

Commitments are due on March 23.

Goldman Sachs International, Morgan Stanley Senior Funding Inc. and Natixis are leading the deal that will be used to refinance existing term loan debt due in 2020.

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

Spectrum on deck

Spectrum Brands set a lender call for 1 p.m. ET on Friday to launch a $1 billion term loan B, according to a market source.

Signatures are due at 5 p.m. ET on March 24 and allocations are targeted for March 27, the source said.

RBC Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing U.S. term loan B.

Closing is expected in April.

Spectrum Brands is a Middleton, Wis.-based consumer products company.

AlixPartners readies loan

AlixPartners scheduled a lender call for 11 a.m. ET on Friday to launch a $1.37 billion seven-year covenant-light term loan B that includes 101 soft call protection for six months, a market source remarked.

Deutsche Bank Securities Inc. is leading the deal.

The new term loan will be used to refinance an existing term loan and fund a distribution to shareholders.

AlixPartners is a New York-based performance improvement, corporate turnaround and financial advisory services firm.

nThrive coming soon

nThrive will hold a lender call on Friday to launch a $562 million term loan B due Oct. 20, 2022, a market source said.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan B due 2022.

nThrive (formerly Precyse Acquisition Corp.) is a patient to payment provider of revenue cycle management technology and services.

Gates joins calendar

Gates Global surfaced with plans to hold a lender call at 10 a.m. ET on Friday to launch a $300 million-equivalent add-on first-lien U.S. and euro term loan B due March 2024, and an amendment and extension of its $1,949,000,000 term loan B and €193 million term loan B to March 2024, which is a two years and eight months extension, according to a market source.

The term debt is getting 101 soft call protection for six months.

Commitments are due at noon ET on March 29, the source said.

Credit Suisse, Citigroup, Macquarie and Morgan Stanley are leading the deal.

Proceeds from the add-on loan will be used to partially repay the existing first-lien term loan and the company will also use proceeds from a $150 million add-on 6% senior unsecured notes offering to pay down the U.S. term loan B. As of Dec. 31, the U.S. term loan B totaled $2,398,700,000.

Gates is a Denver-based aftermarket-focused manufacturer of power transmission belts and fluid power products.

Aveanna closes

In other news, the formation of Aveanna has been completed through the buyout of Epic Health Services by Bain Capital Private Equity from Webster Capital, the buyout of PSA Healthcare by Bain Capital, and the merger or Epic Health and PSA, according to a news release.

For the transaction, Aveanna got a new $900 million senior secured credit facility that includes a $75 million five-year revolver (B2/B), a $585 million seven-year first-lien term loan (B2/B) and a $240 million eight-year second-lien term loan.

The first-lien term loan is priced at Libor plus 425 bps with a 1% Libor floor and was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

Pricing on the second-lien term loan is Libor plus 800 bps with a 1% Libor floor, and it was issued at a discount of 98.5. This tranche has call protection of 102 in year one and 101 in year two.

Aveanna lead banks

Barclays, RBC Capital Markets LLC, BMO and Goldman Sachs Bank USA led Aveanna’s credit facility, with Barclays left lead on the first-lien debt and RBC left lead on the second-lien debt.

Secured leverage is 4.3 times, and total leverage is 6 times.

Epic Health is a Dallas-based provider of home health-care services to medically fragile children and adults. PSA is an Atlanta-based provider of pediatric and adult home health-care services.

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