Teneo Holdings frees up; Insurity accelerated; West Deptford, ArisGlobal, CPP disclose talk

By Sara Rosenberg

New York, July 15 – Teneo Holdings LLC increased the size of its first-lien term loan and added a clause to the credit agreement, and the debt made its into the secondary market on Monday with levels quoted above its original issue discount.

In more happenings, Insurity Inc. moved up the commitment deadline for its first-lien term loan, and West Deptford Energy Holdings LLC, ArisGlobal (Athos Merger Sub LLC) and Consolidated Precision Products Corp. (WP CPP Holdings LLC) released price talk with launch.

Furthermore, Total Safety, Sotera Health Holdings LLC, United Road Services Inc., Select Medical Corp. and Midcontinent Communications joined this week’s primary calendar.

Teneo tweaks deal

Teneo lifted its six-year first-lien term loan (B2/B) to $370 million from $365 million and added a clause to the credit agreement stating that no loan party will dispose of a minority interest in a guarantor for the primary purpose of releasing the guarantee made by such guarantor, according to a market source.

The term loan is priced at Libor plus 525 basis points with a 1% Libor floor and an original issue discount of 96, and has 101 soft call protection for one year.

Earlier in syndication, the spread on the term loan was raised from talk in the range of Libor plus 450 bps to 475 bps, the two 25 bps leverage-based steps were eliminated, the Libor floor was revised from 0%, the discount was modified from 99, the call protection was extended from six months, the maturity was shortened from seven years, and a number of changes were made to documentation.

The extra term loan funds raised through the upsizing will be used to compensate for the wider original issue discount, the source said.

Teneo hits secondary

After terms finalized, Teneo’s first-lien term loan broke for trading on Monday and levels were quoted at 96¼ bid, 97¼ offered, another source added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and Nomura are leading the debt that will be used to help fund the buyout of the company by CVC Capital Partners from BC Partners.

Closing is subject to regulatory approval and other customary conditions.

Teneo is a New York-based provider of strategic communications, investment banking, business intelligence, financial analytics, executive recruiting, management consulting and corporate restructuring advisory services.

Insurity revises timing

Back in the primary market, Insurity accelerated the commitment deadline for its $370 million seven-year first-lien term loan to 3 p.m. ET on Tuesday from July 23, a market source said.

Talk on the first-lien term loan is Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $570 million of credit facilities also include a $40 million five-year revolver and a $160 million privately placed eight-year second-lien term loan.

Jefferies LLC and BofA Securities Inc. are leading the deal that will be used to help fund the buyout of the company by GI Partners.

Closing is expected in the third quarter.

Insurity is a Hartford, Conn.-based software platform for the property & casualty insurance industry.

West Deptford guidance

West Deptford Energy Holdings held its bank meeting on Monday and announced price talk on its $445 million seven-year first-lien term loan B at Libor plus 375 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

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

The company’s $500 million of credit facilities (BB-) also include a $55 million revolver.

Commitments are due at 5 p.m. ET on July 29.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing debt and fund a shareholder distribution.

West Deptford is a 744 MW gas-fired combined-cycle power generation facility.

ArisGlobal reveals talk

ArisGlobal came out with talk of Libor plus 450 bps to 475 bps with a 0% Libor floor and an original issue discount of 99 on its $240 million seven-year covenant-lite first-lien term loan that launched with a morning bank meeting, a market source said.

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

The company’s $270 million of credit facilities (B2/B-) also include a $30 million revolver.

Commitments are due at 5 p.m. ET on July 26.

Credit Suisse Securities (USA) LLC is leading the deal, which will be used to help fund the buyout of the company by Nordic Capital.

ArisGlobal is a Coral Gables, Fla.-based developer of cloud-based software for pharmaceutical and R&D companies.

CPP details emerge

Consolidated Precision Products held its call in the morning and launched a fungible $192 million add-on covenant-lite term loan B (B2/B) due April 2025 with original issue discount talk of 99.25, a market source remarked.

The add-on term loan is priced at Libor plus 375 bps with a 1% Libor floor.

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

The company is also getting a $50 million delayed-draw term loan and an $80 million second-lien term loan, which have been placed with Carlyle.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to support a recapitalization transaction with Berkshire Partners and Warburg Pincus, the company’s current financial partner, and the acquisition of Allegheny Technologies Inc.’s Cast Products business.

Consolidated Precision Products is a Cleveland-based manufacturer of engineered components and subassemblies primarily for the commercial aerospace, defense and industrial gas turbine markets. The Cast Products business is a producer of titanium investment castings that are primarily used by aerospace & defense OEMs in the production of commercial jet airframes and engines.

Total Safety joins calendar

Total Safety will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch $480 million of credit facilities, a market source said.

The facilities consist of a $75 million ABL revolver, a $330 million first-lien term loan and a $75 million delayed-draw first-lien term loan, the source added.

Goldman Sachs Bank USA, Citizens Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund the acquisition of Sprint Safety, refinance existing debt at Total Safety, and pay transaction-related fees and expenses.

Littlejohn is the sponsor.

Total Safety is a Houston-based outsourced provider of outsourced safety and compliance solutions to clients operating in hazardous environments in the refining and petrochemical end-markets. Sprint Safety is a provider of safety equipment rentals, breathable air solutions, training and turnaround management to the energy, industrial and environmental sectors.

Sotera readies loan

Sotera Health set a lender call for 11 a.m. ET on Tuesday to launch a non-fungible $320 million senior secured incremental first-lien term loan due May 15, 2022 that is talked with 101 soft call protection for six months, according to a market source.

Commitments are due at 4 p.m. ET on Thursday, the source said.

Jefferies LLC is leading the deal, which will be used to fund a distribution to shareholders.

Sotera is a Broadview Heights, Ohio-based provider of mission-critical health sciences, lab services and sterilization solutions for the healthcare industry.

United Road on deck

United Road Services scheduled a lender call for 10:30 a.m. ET on Tuesday to launch a fungible $92 million incremental covenant-lite first-lien term loan due September 2024 talked at is Libor plus 525 bps with a 1% Libor floor and an original issue discount of 98.88, a market source remarked.

Commitments are due at 5 p.m. ET on July 25, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to fund tuck-in acquisitions.

The company is also seeking an amendment to its credit agreement and offering existing holders a 25 bps amendment fee.

United Road is a Romulus, Mich.-based provider of vehicle transport and logistics.

Select Medical coming soon

Select Medical emerged with plans to hold a lender call at 11 a.m. ET on Tuesday to launch a $400 million add-on term loan B talked at Libor plus 250 bps to 275 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 at noon ET on July 24, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to repay revolver borrowings and for general corporate purposes.

The company is also seeking an amendment to its existing term loan B and is offering lenders a 25 bps amendment fee.

Select Medical is a Mechanicsburg, Pa.-based health care company.

Midcontinent plans refi

Midcontinent Communications will hold a lender call on Wednesday to launch a $685 million seven-year covenant-lite first-lien term loan B talked at Libor plus 225 bps with a 0% Libor floor and an original issue discount of 99.5, a market source said.

Commitments are due on July 29, the source added.

SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, CoBank, TD Securities (USA) LLC and MUFG are leading the deal that will be used to repay an existing term loan and notes.

Midcontinent Communications is a Sioux Falls, S.D.-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

© 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.