Dell Technologies, Jeld-Wen revise deals; UFC, KAR Auction modify loan deadlines

By Sara Rosenberg

New York, Sept. 11 – In the primary market on Wednesday, Dell Technologies increased the size of its term loan B, set the spread at the low end of guidance and tightened the original issue discount.

Also, Jeld-Wen Inc. upsized its add-on term loan B and revised the issue price, and UFC and KAR Auction Services Inc. accelerated the commitment deadlines for their term loans.

Furthermore, Ahead/Data Blue, CPI International Inc. (Communications & Power Industries) and HighTower Holdings LLC announced price talk with launch, and Guidehouse, Sotheby’s and Topps Co. Inc. joined the near-term primary calendar.

Dell changes emerge

Dell Technologies raised its term loan B (Baa3/BBB-/BBB-) due September 2025 to $4.75 billion from $4 billion, firmed pricing at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, and moved the original issue discount to 99.875 from 99.75, according to a market source.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Wednesday, accelerated from the original commitment deadline of 5 p.m. ET on Thursday, the source said.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal that will be used with balance sheet cash to refinance an existing term loan B due 2023.

The amount of cash being used for the refinancing was reduced to $162.5 million from $912.5 million with the term loan upsizing, the source added.

Dell Technologies is a Round Rock, Tex.-based technology company.

Jeld-Wen tweaks loan

Jeld-Wen increased its fungible add-on covenant-lite term loan B due Dec. 14, 2024 to $125 million from $100 million and moved the original issue discount to 99.5 from talk in the range of 99 to 99.25, a market source said.

The add-on term loan is priced at Libor plus 200 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Recommitments are due at 3 p.m. ET on Thursday, accelerated from an original deadline of noon ET on Friday, the source added.

Wells Fargo Securities LLC and BofA Securities, Inc. are leading the deal. BofA is the administrative agent.

The add-on loan will be used to repay existing debt, and the funds from the upsizing will be used for a revolver paydown.

The company’s existing term loan B due Dec. 14, 2024 is sized at $433 million.

Jeld-Wen is a Charlotte, N.C.-based door and window manufacturer.

UFC moves deadline

UFC revised the commitment deadline for its fungible $465 million add-on first-lien term loan B (B2/B) due April 2026 to noon ET on Thursday from Friday, a market source remarked.

Pricing on the add-on term loan is Libor plus 325 bps with a 1% Libor floor, in line with pricing on the existing $1.869 billion first-lien term loan B, and all of the debt is getting 101 soft call protection for six months.

The add-on term loan is talked with an original issue discount in the range of 99.5 to 99.75.

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to redeem outstanding preferred equity.

UFC is a Las Vegas-based mixed martial arts organization and pay-per-view event provider.

KAR accelerated

KAR Auction Services moved up the commitment deadline for its $950 million seven-year term loan B (Ba2/BB-) to 3 p.m. ET on Thursday from noon ET on Friday, a market source said.

Talk on the term loan is Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

J.P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, Fifth Third Bank and U.S. Bank are leading the deal that will be used to refinance existing bank debt and to add cash to the balance sheet.

KAR is a Carmel, Ind.-based provider of technology-driven remarketing solutions to the wholesale used vehicle industry.

Ahead/Data Blue guidance

In more primary happenings, Ahead/Data Blue held its bank meeting on Wednesday and released talk on its $440 million seven-year term loan B (B2/B) at Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Sept. 24, the source said.

BofA Securities, Inc. and TD Securities (USA) LLC are leading the deal that will be used to help fund the merger of the two Court Square Capital portfolio companies and to pay a dividend.

Ahead is a Chicago-based consulting company that helps enterprises transform how and where they run applications and infrastructure. Data Blue is an Atlanta-based designer and provider of IT infrastructure solutions for large enterprise clients.

CPI proposed terms

CPI International announced with its bank meeting talk on its non-fungible $195 million incremental first-lien term loan (B3/B) due July 26, 2024 at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due on Sept. 25, the source added.

UBS Investment Bank, Antares Capital, Golub, ING Capital and KKR Capital Markets are leading the deal that will be used to fund the acquisition of Satcom Technologies from General Dynamics Mission Systems Inc.

Closing is expected before the end of the year, subject to customary conditions.

CPI, a portfolio company of Odyssey Investment Partners, is a Palo Alto, Calif.-based manufacturer of electronic components and subsystems focused primarily on communications and defense markets. Satcom is a designer, manufacturer and installer of satellite communications antenna systems, and a provider of related radio frequency products and electronics.

HighTower reveals talk

HighTower held its bank meeting during the session and released talk on its $180 million of fungible incremental first-lien term loans at Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The debt, which is being sold as a strip, consists of a $135 million incremental first-lien term loan and a $45 million incremental delayed-draw first-lien term loan.

The delayed-draw term loan is available until Dec. 31, 2020 and has a 1% ticking fee, the source said.

The incremental and existing first-lien term loan debt are getting 101 soft call protection for six months.

Commitments are due on Sept. 25, the source added.

Antares Capital is leading the deal that will be used to fund planned acquisitions.

The company may also issue up to $20 million of incremental second-lien debt as part of the financing.

Currently, the company has a $50 million revolver, about $371 million of combined first-lien term loan and delayed-draw term loan facilities, and an $87.5 million second-lien term loan.

HighTower, a Thomas H. Lee Partners portfolio company, is a Chicago-based provider of a wealth management platform to financial advisers and their clients.

Ascensus talk surfaces

Ascensus Specialties LLC came out with talk on its $245 million seven-year first-lien term loan at Libor plus 475 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

The company’s $362.5 million of senior credit facilities, which launched with a bank meeting on Tuesday, also include a $40 million five-year revolver and a $77.5 million eight-year second-lien term loan.

Commitments are due on Sept. 23, the source added.

Antares Capital is leading the deal that will be used to fund the acquisition of Callery, a producer of boranes and specialty alcoholates.

Ascensus, a Wind Point Partners portfolio company, is a Bellevue, Wash.-based producer of dry and liquid sodium borohydride.

Guidehouse readies deal

Guidehouse set a bank meeting for 10 a.m. ET on Tuesday to launch $840 million of incremental term loans, according to a market source.

The debt consists of a $640 million incremental first-lien term loan (B1) and a $200 million incremental second-lien term loan (Caa1), the source said.

In addition, the company is upsizing its existing revolver to $125 million from $50 million.

RBC Capital Markets, Macquarie Capital (USA) Inc., UBS Investment Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the acquisition of Navigant Consulting Inc. for $28 in cash per share in a transaction valued at about $1.1 billion.

Closing is expected in the fourth quarter, subject to regulatory approvals and customary conditions.

Guidehouse, a portfolio company of Veritas Capital, is a provider of management consulting services to government clients. Navigant is a Chicago-based professional services firm.

Sotheby’s coming soon

Sotheby’s will hold a bank meeting on Thursday to launch $950 million of credit facilities, according to a market source.

The facilities consist of a $400 million revolver and a $550 million term loan B, the source said.

BNP Paribas Securities Corp. is the left lead on the deal that will be used to help fund the acquisition of the company by BidFair USA for $57 in cash per share of common stock in a transaction with an enterprise value of $3.7 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including regulatory clearance and shareholder approvals. The transaction is not subject to the availability of financing.

Sotheby’s is a New York-based auction house.

Topps on deck

Topps scheduled a lender call for 2:30 p.m. ET on Friday to launch a $122 million term loan B (B1/B-) due April 2022, a market source said.

Pricing on the term loan is Libor plus 600 bps.

Commitments are due at noon ET on Sept. 20, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to extend an existing term loan B by 18 months.

The extension fee to lenders has not yet been announced.

Topps is a producer of confectionery products and a brand marketer of sports & entertainment cards, products and digital apps.

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