TransDigm, Xerox, Cloud Software break; Buckeye, Iqvia, Fairbanks, System One revised

By Sara Rosenberg

New York, Nov. 15 – TransDigm Group Inc. tightened the original issue discount on its first-lien term loan J and moved up the commitment deadline, and Xerox Corp. upsized its first-lien term loan and modified the issue price, and then both of these deals freed to trade on Wednesday.

Also, Cloud Software Group Inc. launched an add-on term loan B in the morning, upsized it and set the original issue discount at the tight end of talk in the afternoon, and broke the debt for trading late in the session.

In more happenings, Buckeye Partners LP set the spread on its term loan B at the low end of guidance and changed the issue price, Iqvia Inc. raised the size of its term loan B, and Fairbanks Morse Defense (Arcline FM Holding LLC) increased the size of its incremental first-lien term loan and revised the original issue discount.

Furthermore, System One revised the issue price on its add-on term loan B, and Tekni-Plex Inc. (Trident TPI Holdings Inc.) accelerated the commitment deadline for its incremental first-lien term loan B-4.

TransDigm tweaked

TransDigm changed the original issue discount on its $1 billion first-lien term loan J due February 2031 (Ba3/B+) to 99.75 from talk in the range of 99 to 99.5, according to a market source.

As before, the term loan is priced at SOFR plus 325 basis points with a 0% floor and has 101 soft call protection for six months.

Goldman Sachs Bank USA is the left lead on the deal.

The term loan will be used with $1 billion of senior secured notes and cash on hand to fund the acquisition of Communications & Power Industries’ electron device business, a manufacturer of electronic components and subsystems primarily serving the aerospace and defense market, for $1.385 billion and for general corporate purposes, including further increasing liquidity and funding potential future acquisitions, dividends or stock repurchases.

TransDigm frees up

Commitments for TransDigm’s term loan J were due at noon ET on Wednesday, accelerated from 1 p.m. ET on Thursday, and the debt made its way into the secondary market later in the day, with levels quoted at 99 7/8 bid, par 1/8 offered, another source added.

Closing on the acquisition is expected by the end of TransDigm’s third fiscal quarter of 2024, subject to regulatory approvals and customary conditions.

However, the debt financing transactions are expected to close prior to completion of the acquisition. The new term loan J and notes will remain outstanding even if the acquisition is not consummated.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for commercial and military aircraft.

Xerox modified, trades

Xerox lifted its six-year first-lien term loan (Ba1/BBB-) to $550 million from $500 million and adjusted the original issue discount to 97 from 98, a market source said.

The term loan is still priced at SOFR plus 400 bps with a 0.5% floor, and has 101 soft call protection for six months.

During the session, the term loan broke for trading, with levels quoted at 97¼ bid, 98¼ offered, another source added.

Jefferies LLC, Citigroup Global Markets Inc., Credit Agricole, PNC, Mizuho, Bank of Nova Scotia and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance a $555 million bridge loan used to repurchase 34,245,314 shares of the company’s common stock at a price of $15.84 per share from Carl C. Icahn and certain of his affiliates.

Xerox is a Norwalk, Conn.-based supplier of print and digital document products and services.

Cloud finalized, breaks

Cloud Software approached lenders in the morning with a fungible $850 million add-on term loan B due March 30, 2029 with original issue discount talk of 95.25 to 95.5, according to a market source.

After the 3:30 p.m. ET commitment deadline passed, the loan was upsized to $1 billion and the discount was set at 95.5, the source said.

Like the existing term loan B, the add-on term loan (B2/B) is priced at SOFR+10 bps CSA plus 450 bps with a 0.5% floor.

The add-on term loan freed to trade late in the day, with levels quoted at 95¾ bid, 96¾ offered, another source added.

BofA Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to fund a distribution to repay some preferred equity.

Cloud Software, formed in 2022 through the combination of Citrix Systems Inc. and Tibco Software Inc., is an enterprise software provider.

Buckeye updated

Buckeye Partners firmed pricing on its $1 billion term loan B (Ba1/BB+/BBB-) at SOFR plus 250 bps, the low end of the SOFR plus 250 bps to 275 bps talk, and tightened the original issue discount to 99.75 from 99.5, a market source remarked.

As before, the term loan has a 0% floor and 101 soft call protection for six months.

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

MUFG, Truist Securities, CIBC, Wells Fargo Securities LLC, TD Securities (USA) LLC, ING, Mizuho, JPMorgan Chase Bank, Goldman Sachs Bank USA, Santander and National Australia Bank are leading the deal that will be used to fund a partial refinancing of the company’s term loan B due 2026 priced at SOFR plus 225 bps with a 0% floor and revolver borrowings.

Buckeye is a Houston-based owner and operator of integrated midstream assets.

Iqvia upsized

Iqvia increased its term loan B due 2031 to a minimum of $1.5 billion from $1.25 billion, a market source said.

The term loan is still talked at SOFR plus 225 bps to 250 bps with a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

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

JPMorgan Chase Bank is the left lead on the deal. BofA Securities Inc. is the administrative agent.

The term loan will be used with $1.25 billion of senior secured notes, upsized from $500 million, to repay certain of the company’s outstanding term loans due in 2024 and 2025 and to pay fees and expenses.

Iqvia is a Danbury, Conn.-based provider of advanced analytics, technology solutions and contract research services to the life sciences industry.

Fairbanks revised

Fairbanks Morse Defense raised its non-fungible incremental first-lien term loan due June 23, 2028 (B2/B) to $210 million from $185 million and moved the original issue discount to 98 from talk in the range of 97 to 97.5, a market source remarked.

Pricing on the incremental term loan remained at SOFR+CSA plus 525 bps with a 0.75% floor. CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Recommitments were due at 2:30 p.m. ET on Wednesday and allocations went out later in the day, the source added.

Jefferies LLC is leading the deal that will be used to refinance the company’s existing $86.5 million acquisition term loan, to pay down ABL revolver borrowings and to add cash to the balance sheet for general corporate purposes.

Fairbanks Morse is a Beloit, Wis.-based provider of mission-critical propulsion and power generation systems, material handling devices, valves, actuators, motors and other hi-rel electrical components for the U.S. Navy and U.S. Coast Guard.

System One tightened

System One changed the original issue discount on its fungible $65 million add-on covenant-lite term loan B due March 2028 to 99.25 from 99.03, according to a market source.

Pricing on the add-on term loan is SOFR plus 400 bps with a 0.75% floor, in line with existing term loan B pricing.

Commitments continue to be due at noon ET on Thursday, the source added.

Truist Securities is leading the deal that will be used to fund an acquisition.

System One, an Oaktree Capital Management portfolio company, is a Pittsburgh-based provider of specialized workforce solutions and integrated services.

Tekni-Plex accelerated

Tekni-Plex moved up the commitment deadline for its fungible $200 million incremental first-lien term loan B-4 due Sept, 17, 2028 (B2/B-) to noon ET on Thursday from 5 p.m. ET on Thursday, a market source remarked.

Pricing on the incremental term loan is SOFR plus 525 bps with a 0.5% floor, and the new debt is talked with an original issue discount of 97 to 97.5 and 101 soft call protection for six months.

UBS Investment Bank, Jefferies LLC and BMO Capital Markets are leading the deal that will be used to fund the acquisition of Seisa Medical Holdings Inc., an El Paso, Tex.-based medical device manufacturer.

Closing on the acquisition is subject to regulatory approval.

Pro forma for the transaction, the term loan B-4 will total about $324 million.

Tekni-Plex is a Wayne, Pa.-based provider of health care and consumer material solutions.

© 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.