Formula 1, SS&C Technologies, Aristocrat Leisure break; TransDigm dips with amendment

By Sara Rosenberg

New York, Feb. 24 – Deals from Formula One (Delta Topco Ltd.), SS&C Technologies Inc. and Aristocrat Leisure Ltd. freed up for trading on Friday, and TransDigm Group Inc.’s term loans were a little lower after details surfaced on an amendment request.

Moving to the primary market, Salient CRGT Inc. raised pricing on its term loan, widened the original issue discount and sweetened the call protection, and Ranpak Corp. increased the spread on its add-on first-lien term loan, tightened issue price talk and eliminated plans for a repricing of its existing first-lien term debt.

In addition, VIP Cinema tightened the original issue discount on its first-lien term loan and added a pricing step-down, and Gavilan Resources LLC modified size, spread and issue price on its second-lien term loan.

Also, SRAM LLC approached lenders with a new term loan B, and Cole-Parmer Instrument Co. came out with timing on the launch of its credit facility.

Formula 1 starts trading

Formula 1’s $3,153,000,000 covenant-light first-lien term loan made its way into the secondary market on Friday, with levels quoted at 100 1/8 bid, 100½ offered, according to a trader.

Pricing on the loan is Libor plus 325 basis points with a step-down to Libor plus 300 bps after six months and if a B2 corporate rating is achieved, and a 1% Libor floor. The debt was sold at an original issue discount of 99.5 and includes 101 soft call protection for six months.

During syndication, the first-lien term loan was upsized from $2,853,000,000.

KKR Capital Markets is leading the deal that will be used to refinance a $3,153,000,000 first-lien term loan priced at Libor plus 375 bps with a 1% Libor floor.

The $300 million of cash on hand that was going to be used to pay down the existing first-lien term loan with the refinancing is instead being used to repay a portion of the company’s existing second-lien term loan.

Formula 1 is a motorsports business.

SS&C frees to trade

SS&C Technologies’ term loans began trading too, with the strip of $1,480,200,000 covenant-light term loan B-1 due July 8, 2022 and $142.1 million covenant-light term loan B-2 due July 8, 2022 debt quoted at 100 1/8 bid, 100 3/8 offered on the break and then it moved up to 100¼ bid, 100½ offered, a trader said.

Pricing on the term loan B-1 and B-2 is Libor plus 225 bps with a 0% Libor floor, and the debt was issued at par. The loans have 101 soft call protection for six months.

The company’s $1,856,700,000 of term loans also includes a $91.9 million term loan A-1 due July 8, 2020 and a $142.5 million term loan A-2 due July 8, 2020, both priced at Libor plus 175 bps with a 0% Libor floor and issued at par.

Morgan Stanley Senior Funding Inc. is the bookrunner on the deal that will be used to reprice the existing term loan A debt due 2020 and the existing term loan B debt due 2022. Deutsche Bank Securities Inc. is the administrative agent.

Closing is expected during the week of Feb. 27.

SS&C is a Windsor, Conn.-based provider of financial services software and software-enabled services.

Aristocrat hits secondary

Aristocrat Leisure’s $1 billion first-lien term loan broke as well, with levels seen at 100¼ bid, 100¾ offered, according to a trader.

Pricing on the loan is Libor plus 225 bps with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan from Libor plus 275 bps with a 0.75% Libor floor.

Aristocrat Leisure is a Sydney, Australia-based provider of gaming services.

TransDigm loans soften

Also in trading, TransDigm’s term loans were a bit weaker as the company disclosed that it is seeking an amendment to its senior secured credit facilities to allow for up to $1.5 billion of dividends or repurchases of its capital stock on or prior to the first anniversary of the amendment and to permit up to $500 million of the $1.5 billion to be used at any time if used to repurchase stock, a trader remarked.

Post- news, the term loan F was quoted at 100¼ bid, 100 5/8 offered, down from 100 5/8 bid, 101 offered, and the term loans C, D and E were quoted at 100¼ bid, 100 5/8 offered, down from 100½ bid, 100 7/8 offered, the trader continued.

Credit Suisse Securities (USA) LLC is leading the amendment.

Lenders are being offered a 15-bps amendment fee, and consents are due at noon ET on Thursday, a market source added.

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

Salient changes emerge

Over in the primary market, Salient CRGT lifted the spread on its $420 million five-year first-lien term loan to Libor plus 575 bps from Libor plus 550 bps, changed the original issue discount to 98 from 99 and extended the 101 soft call protection to 24 months from six months, according to a market source.

As before, the term loan has a 1% Libor floor and amortization of 2.5% in years one, two and three and 5% thereafter.

The company’s $455 million credit facility (B3/B) also includes a $35 million revolver.

Recommitments were due at 2:30 p.m. ET on Friday, the source said.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Regions Bank and RBC Capital Markets are leading the deal that will be used to fund the acquisition of Information Innovators Inc. (Triple-i), which is expected to close this quarter, and to refinance existing debt.

Salient CRGT is a Fairfax, Va.-based provider of agile based software systems development for federal government agencies. Information Innovators is a Springfield, Va.-based provider of solutions and services to IT and health-focused clients across the federal government.

Ranpak reworks deal

Ranpak raised pricing on its fungible $45 million add-on first-lien term loan to Libor plus 325 bps from talk of Libor plus 275 bps to 300 bps and changed the original issue discount talk to a range of 99.75 to par from 99.5, while leaving the 1% Libor floor intact, a market source remarked.

Also, the company cancelled plans for a repricing of its existing roughly $214 million U.S. first-lien term loan down from Libor plus 325 bps with a 1% Libor floor.

The repricing was talked at Libor plus 275 bps to 300 bps with a 1% Libor floor and a par issue price.

Furthermore, the first-lien term loan debt is no longer having its 101 soft call protection refreshed for six months, the source continued.

Commitments were due at 5 p.m. ET on Friday, with allocations targeted for Monday, the source added.

Macquarie Capital (USA) Inc. is leading the add-on loan that will be used to repay a second-lien term loan.

Ranpak is a Concord Township, Ohio-based manufacturer of paper-based systems for protective packaging needs.

VIP updated again

VIP Cinema moved the original issue discount on its $165 million six-year first-lien term loan (B1/B+) to 99.5 from 99 and added a pricing step-down to Libor plus 575 bps based on leverage, according to a market source.

Opening pricing on the first-lien term loan is still Libor plus 600 bps with a 1% Libor floor, and the debt still has 101 soft call protection for one year.

The company’s $230 million credit facility also includes a $20 million five-year revolver (B1/B+) priced at Libor plus 600 bps and a $45 million seven-year second-lien term loan (Caa1/CCC+) that was pre-placed with Oaktree Capital in the Strategic Credit fund at pricing of Libor plus 950 bps with a 1% Libor floor.

Previously in syndication, pricing on the first-lien term loan and the revolver was lifted from talk of Libor plus 550 bps to 575 bps, the call protection on the first-lien term loan was extended from six months, and the MFN sunset was eliminated.

BNP Paribas Securities Corp. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the New Albany, Miss.-based cinema seating company by H.I.G. Capital.

Gavilan revises loan

Gavilan Resources changed its second-lien term loan size to $450 million from a revised amount of $350 million and an initial size at launch of up to $500 million, cut pricing to Libor plus 600 bps from Libor plus 650 bps, and tightened the original issue discount to 99 from 98.5, according to a market source.

As before, the term loan has a 1% Libor floor and is non-callable for one year, then at 102 in year two and 101 in year three.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Natixis, Macquarie Capital (USA) Inc. and RBC Capital Markets are leading the deal that will be used to help fund the acquisition by Sanchez Energy Corp. and Blackstone Energy Partners of Anadarko Petroleum Corp.’s working interest in around 318,000 gross operated acres in the Western Eagle Ford for about $2.3 billion, subject to normal and customary closing conditions and purchase price adjustments.

Closing is expected this quarter, subject to customary conditions.

SRAM holds call

In more primary news, SRAM hosted a lender call on Friday to launch a $570 million term loan B (B2/B) due 2024 talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan due 2020 priced at Libor plus 300 bps with a 1% Libor floor.

SRAM is a Chicago-based bicycle components company.

Cole-Parmer sets timing

Cole-Parmer Instrument nailed down timing on the launch of its previously announced credit facility, with the bank meeting scheduled to take place at 10:30 a.m. ET on Wednesday, according to a market source.

The facility includes a revolver, a first-lien term loan and a second-lien term loan.

Jefferies Finance LLC, Golub and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Golden Gate Capital from GTCR.

Closing is expected this quarter.

Cole-Parmer is a Vernon Hills, Ill.-based provider of laboratory and industrial fluid handling products, instrumentation, equipment and supplies.

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