Nine Entertainment, Go Daddy break atop OIDs; Activision, Steinway revisions surface

By Sara Rosenberg

New York, Sept. 11 - Nine Entertainment Group Pty Ltd.'s term loan freed up for trading on Wednesday above its original issue discount price, and Go Daddy Operating Co. LLC's term loan began trading as well.

Switching to the primary, Activision Blizzard Inc. cut the coupon on its term loan B, and Steinway Musical Instruments Inc. increased the size of its first- and second-lien term loans while reducing pricing on both tranches and tightening the discount on the second-lien debt.

Also, Dell Inc. and Topps Co. Inc. announced price talk in connection with their bank meetings, and details on Syniverse Holdings Inc.'s transaction came out with launch.

Nine frees up

Nine Entertainment's $185 million first-lien term loan B (A$200 million) due Feb. 5, 2020 broke for trading on Wednesday, with levels seen at par bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 300 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 993/4. There is 101 soft call protection for six months.

During syndication, the spread on the loan was reduced from Libor plus 325 bps and the discount was revised from 991/2.

UBS Securities LLC is the lead bank on the deal that will be used to fund the acquisition of WIN Perth.

Nine Entertainment is an Australian diversified media and entertainment group.

Go Daddy starts trading

Go Daddy also hit the secondary with the $100 million incremental senior secured term loan due Dec. 17, 2018 quoted at par bid, par 1/8 offered, a market source said.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor and it was sold at par, after tightening earlier in the week from 993/4.

Barclays, KKR Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to finance potential acquisitions.

Go Daddy is a Scottsdale, Ariz.-based provider of web hosting and domain names.

Activison flexes

Over in the primary, Activision lowered the spread on its $2.5 billion seven-year covenant-light term loan B to Libor plus 250 bps from talk of Libor plus 275 bps to 300 bps, according to a market source, who said the loan still has a 0.75% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Recommitments were due on Wednesday, the source added.

The flex comes on the heels of the recent upsizing to the B loan from $2.25 billion as the company canceled plans for a $1 billion senior secured notes offering. The other $750 million of funds lost were gained through an upsizing to an eight-year senior notes offering to $1.5 billion from $1 billion and a 10-year senior notes offering to $750 million from $500 million.

The company's $2.75 billion senior secured credit facility (Baa3/BBB) also includes a $250 million five-year revolver.

Activision lead banks

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading Activision's new debt, which will be used with about $1.2 billion of cash on hand, to fund the acquisition of around 429 million company shares and certain tax attributes from Vivendi SA in exchange for roughly $5.83 billion in cash, or $13.60 per share.

The transaction will result in Activision becoming an independent company with the majority of its shares owned by the public. Vivendi will no longer be the majority shareholder, but will retain a stake of 83 million shares or about 12%. ASAC II LP - the investor group that includes chief executive officer Bobby Kotick, co-chairman Brian Kelly Davis, Davis Advisors, Leonard Green & Partners LP, Tencent, as well as a large institutional investor - will own a stake of about 24.9%.

Closing is expected by the end of September, subject to customary conditions.

Activision Blizzard is a Santa Monica, Calif.-based interactive entertainment publishing company.

Steinway reworks deal

Steinway Musical upsized its six-year first-lien term loan (B1) to $200 million from $190 million and cut pricing to Libor plus 375 bps from Libor plus 425 bps, while keeping the 1% Libor floor, original issue discount of 99½ and 101 soft call protection for one year intact, according to a market source.

In addition, the seven-year second-lien term loan (Caa1) was lifted to $110 million from $100 million, the spread was lowered to Libor plus 825 bps from Libor plus 850 bps and the discount was modified to 99 from 98, the source remarked. This tranche still has a 1% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will help fund the buyout of the company by Paulson & Co. Inc. for $40 per share, or about $512 million.

With the term loan upsizings, the equity being used for the buyout was reduced, the source added.

Steinway is a Waltham, Mass.-based musical instruments company.

Dell sets guidance

Dell held its bank meeting in the afternoon, at which time price talk on its term loan B and term loan C was revealed, according to sources.

The $4 billion 61/2-year covenant-light term loan B (Ba2/BB+/BB+) was launched at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99, and the $1.5 billion five-year covenant-light term loan C (Ba2/BB+/BB+) was launched at Libor plus 275 bps to 300 bps with a 1% Libor floor and a discount of 991/2, sources said.

By comparison, filings with the Securities and Exchange Commission had the term loan B expected at Libor plus 350 bps with a 1% Libor floor and the term loan C expected at Libor plus 300 bps with a 1% Libor floor.

Both term loans have 101 soft call protection for six months.

Amortization on the term B is 1% per annum and the C loan amortizes at 10% per annum.

Commitments are due on Sept. 23, sources added.

Dell getting revolver

Dell's $7.5 billion senior secured credit facility also provides for a $2 billion asset-based revolver, which the SEC filings had expected at Libor plus 175 bps.

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, RBC Capital Markets and UBS Securities LLC are leading the deal.

Proceeds will be used to help fund the buyout of the company by Michael Dell, founder, chairman and chief executive officer, and Silver Lake for $13.75 per share plus a special dividend at or before closing of $0.13 per share.

Dell is a Round Rock, Texas-based provider of technology and business products and services.

Topps releases talk

Topps also launched, with talk on its $150 million seven-year term loan coming out at Libor plus 450 bps with a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

The company's $175 million credit facility 9B1) also includes a $25 million revolver.

Commitments are due at noon ET on Sept. 25, the source said.

Deutsche Bank Securities Inc. and BMO Capital Markets are leading the deal that will be used to refinance existing debt.

Topps is a creator and marketer of sports and related cards, entertainment products and distinctive confectionery brands.

Syniverse holds call

Syniverse hosted its lender call on Wednesday, launching a $911.5 million term loan B due April 23, 2019 with talk of Libor plus 300 bps with a 1% Libor floor, a par offer price and 101 soft call protection for six months, a market source said.

Proceeds will be used to reprice an existing term loan B from Libor plus 375 bps with a 1.25% Libor floor.

The term loan B is currently sized at $940.5 million, but it will be paid down to $911.5 million with the repricing. The company also plans to use some of its $50 million total paydown funds to reduce the balance on its incremental term loan.

Commitments are due on Tuesday, the source added.

Barclays is leading the deal for the Tampa, Fla.-based provider of technology and business services for the telecommunications industry.

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