Orchid Orthopedic frees to trade; Travelport, Terex, Wynn Resorts disclose price talk

By Sara Rosenberg

New York, Feb. 28 – Orchid Orthopedic Solutions saw its first-lien term loan emerge in the secondary market on Thursday afternoon, with levels quoted above its original issue discount.

Meanwhile, in the primary market, Travelport Worldwide Ltd., Terex Corp. and Wynn Resorts Ltd. announced price talk with launch.

Also, Power Solutions (Panther BF Aggregator 2 LP) and Dental Corp. of Canada Inc. joined the near-term new issue calendar.

Orchid Orthopedic breaks

Orchid Orthopedic Solutions’ $485 million seven-year first-lien term loan (B2/B) began trading on Thursday, with levels quoted at 99½ bid, par ¼ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 450 basis points with a 25 bps leverage-based step-down and a 0% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for one year.

During syndication, the spread on the first-lien term loan firmed at the high end of the Libor plus 425 bps to 450 bps talk, the call protection was extended from six months and some changes were made to documentation.

The company’s $745 million of credit facilities also include a $100 million five-year revolver (B2/B) and a $160 million eight-year privately placed second-lien term loan.

Jefferies LLC, Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are leading the deal that will be used to help fund the buyout of the company by Nordic Capital Partners from Altor Fund III, which will retain a significant minority holding in Orchid Orthopedic.

Closing is expected during the week of March 4.

Orchid Orthopedic is a Holt, Mich.-based designer and manufacturer of medical devices.

Travelport proposed terms

Switching to the primary market, Travelport held its bank meeting on Thursday and announced price talk on its $2.8 billion seven-year covenant-light first-lien term loan (B2/B+) and $500 million eight-year covenant-light second-lien term loan (Caa2/CCC+), according to a market source.

The first-lien term loan is talked at Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 850 bps to 900 bps with a 0% Libor floor, a discount of 97 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $3.45 billion of credit facilities also include a $150 million revolver (B2/B+).

Commitments are due on March 13, the source added.

Travelport being acquired

Proceeds from Travelport’s credit facilities will be used with up to $1.08 billion of equity to fund its buyout by Siris Capital Group LLC and Evergreen Coast Capital Corp. for $15.75 per share in cash. The transaction is valued at about $4.4 billion.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., Credit Suisse Securities (USA) LLC and Barclays are leading the debt.

Closing on the buyout is expected in the second quarter, subject to customary conditions, including approval by Travelport shareholders and receipt of required regulatory approvals. The transaction is not subject to any financing condition.

Travelport is a Langley, U.K.-based travel technology company.

Terex reveals talk

Terex came out with talk of Libor plus 300 bps with a 0.75% Libor floor and an original issue discount of 98.5 to 99 on its non-fungible $200 million incremental first-lien term loan B-1 due Jan. 31, 2024 that launched with a morning lender call, a market source said.

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

Commitments are due at noon ET on Wednesday.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc., Credit Agricole, Commerzbank and Barclays are leading the deal, which will be used to repay revolver borrowings.

Terex is a Westport, Conn.-based lifting and material handling solutions company.

Wynn launches loan

Wynn Resorts held its call in the morning and launched its $250 million add-on covenant-light first-lien term loan due October 2024 with original issue discount talk of 98 to 98.5, according to a market source.

Like the existing term loan, the add-on term loan is priced at Libor plus 225 bps with a 0% Libor floor, and has 101 soft call protection through April 2019.

Commitments are due at noon ET on Wednesday.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used for general corporate purposes.

Wynn Resorts is a Las Vegas-based developer, owner and operator of destination casino resorts.

ConvergeOne OID guidance

ConvergeOne Holdings Inc. (PVKG Merger Sub Inc.) is talking its $960 million seven-year covenant-light first-lien term loan (B2/B-) at an original issue discount of 96 and its $275 million eight-year covenant-light second-lien term loan (Caa2/CCC) at a discount of 94, a market source remarked.

The first-lien term loan is priced at Libor plus 500 bps with a 0% Libor floor and has 101 soft call protection for one year, and the second-lien term loan is priced at Libor plus 850 bps with a 0% Libor floor and has call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments are due at the close of business on Wednesday, the source added.

Proceeds will back the already completed buyout of the company by CVC Capital Partners for $12.50 per share, or about $1.8 billion.

ConvergeOne lead banks

Deutsche Bank Securities Inc., UBS Investment Bank, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Societe Generale are leading ConvergeOne’s $1,235,000,000 of term loans, with Deutsche left on the first-lien and UBS left on the second-lien.

The buyout financing originally came to market in 2018 as a $925 million seven-year covenant-light first-lien term loan talked at Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and a $350 million eight-year covenant-light second-lien term loan talked at Libor plus 825 bps to 850 bps with a 0% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two.

However, syndication of the debt was postponed last year due to market conditions.

The company then revealed in early January that it closed on the credit facilities at the revised structure and pricing outlined for the term loans that are now being marketed to investors.

Along with the term loans, the company has a $250 million five-year ABL revolver.

ConvergeOne is an Eagan, Minn.-based IT and managed services provider of collaboration and technology solutions.

Power Solutions on deck

Power Solutions set bank meeting in New York for Monday and a bank meeting in London for Tuesday to launch $5.45 billion equivalent of term loans, according to a market source.

The debt consists of a $3.2 billion seven-year term loan B and a $2.25 billion equivalent euro seven-year term loan B, the source said.

Commitments are due at noon ET on March 14.

J.P. Morgan Securities LLC is the left lead on the U.S. loan and Barclays is the left lead on the euro loan. Filings with the Securities and Exchange Commission also listed Credit Suisse, Bank of America Merrill Lynch, BMO Capital Markets, CIBC Capital Markets, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, RBC Capital Markets, The Bank of Nova Scotia and TD Securities as leads on the loans. JPMorgan is the administrative agent.

Proceeds will be used with equity to help fund the acquisition of Johnson Controls’ power solutions business by Brookfield Business Partners LP and Caisse de depot et placement du Quebec for around $13.2 billion.

Closing is expected by June 30, 2019, subject to customary conditions including regulatory approvals.

Power Solutions is a supplier of low voltage automotive batteries.

Dental Corp. joins calendar

Dental Corp. of Canada scheduled a lender call for 9 a.m. ET on Friday to launch $177 million of incremental term loan debt, a market source said.

The debt is split between a $127 million incremental first-lien term loan due June 6, 2025 and a $50 million incremental second-lien term loan due June 6, 2026, the source said.

The first-lien term loan is getting 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to fund acquisitions.

Dental Corp. is a network of general and specialist dental clinics in Canada.

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