AmWINS, Optiv, LANDesk, NRG, Travel Leaders, Alliant, KIK Custom, Gemini break for trading

By Sara Rosenberg

New York, Jan. 19 – AmWINS Group LLC modified spreads and original issue discounts on its first-and second-lien term loans, and Optiv Security Inc. revealed final pricing on its second-lien term loan, and then both deals broke for trading on Thursday; LANDesk Software Group Inc., NRG Energy Inc., Travel Leaders Group LLC, Alliant Holdings Intermediate LLC, KIK Custom Products Inc. and Gemini HDPE LLC freed up as well.

Shifting to the primary market, Avolon reworked its term loan B, splitting it into two tranches that have different maturities and price talk, and ticking fees were revealed on the debt, and TransDigm Group Inc. upsized its term loan.

Also, Koppers Holdings Inc. increased the size of its revolver and bond offering, and eliminated plans for a new term loan A, MEG Energy Corp. and Electrical Components International Inc. accelerated the commitment deadlines on their term loans, and Worldwide Express privately placed its second-lien term loan.

Furthermore, Daseke Inc., Compuware Corp., Solera Holdings Inc. and Plaskolite LLC released price talk with launch, Lionbridge Technologies Inc. began circulating guidance on its term debt ahead of its bank meeting, and Herbalife, Terex Corp. and SMS Systems Maintenance Services Inc. surfaced with new loan plans.

AmWINS revised, trades

AmWINS cut pricing on its $1.05 billion seven-year first-lien term loan (B1/B+) to Libor plus 275 basis points from Libor plus 300 bps and moved the original issue discount to 99.75 from 99.5, while leaving the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

Also, the company trimmed pricing on its $200 million eight-year second-lien term loan (Caa1/B-) to Libor plus 675 bps from Libor plus 750 bps and changed the discount to 99.25 from 99, the source said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $1,375,000,000 credit facility includes a $125 million revolver (B1/B+) as well.

Recommitments were due at 1 p.m. ET on Thursday, and by late day, the deal freed up with the first-lien term loan quoted at par 1/8 bid, par 5/8 offered and the second-lien term loan quoted at par ¼ bid, a source added.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used by the Charlotte, N.C.-based specialty insurance broker to refinance existing debt and for general corporate purposes.

Closing is expected during the week of Jan. 23.

Optiv tops OID’s

Optiv Security’s credit facility began trading during the session, with the $800 million seven-year covenant-light first-lien term loan quoted at par ¼ bid, par ¾ offered and the $230 million eight-year covenant-light second-lien term loan quoted at par bid, par ½ offered, a source remarked.

Pricing on the first-lien term loan is Libor plus 325 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 725 bps, after firming at the low end of revised talk of Libor plus 725 bps to 750 bps and tightening from initial talk of Libor plus 850 bps. This tranche has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two and was issued at a discount of 99.5.

Previously in syndication, the first-lien term loan was upsized from $750 million, pricing was cut from talk of Libor plus 400 bps to 425 bps and the discount was changed from 99, and the second-lien term loan was downsized from $280 million and the discount was revised from 98.5.

Optiv funding buyout

Proceeds from Optiv Security’s $1.13 billion credit facility, which also includes a $100 million five-year ABL revolver, will be used to help fund its acquisition by KKR.

KKR is buying the company from a group of private investors, including a private equity fund managed by Blackstone, which will maintain a minority interest in Optiv along with Optiv management. Other selling shareholders include Investcorp and Sverica.

Jefferies Finance LLC, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the debt.

Closing is expected this quarter, subject to customary conditions.

Optiv Security is a Denver-based provider of end-to-end cyber security solutions.

LANDesk starts trading

LANDesk’s credit facility also freed to trade, with the $825 million seven-year covenant-light first-lien term loan quoted at par ½ bid, 101 offered and the $200 million eight-year covenant-light second-lien term loan quoted at 99 bid, par offered, a trader said.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 900 bps with a 1% Libor floor and was issued at a discount of 98.5. This tranche has hard call protection of 102 in year one and 101 in year two.

On Wednesday, the first-lien term loan was upsized from $800 million, pricing firmed at the low end of revised talk of Libor plus 425 bps to 450 bps and down from initial talk of Libor plus 475 bps to 500 bps, and the discount tightened from 99. Also, the second-lien term loan was downsized from $225 million and the spread finalized at the low end of the Libor plus 900 bps to 925 bps talk, and the MFN sunset was removed.

LANDesk getting revolver

LANDesk’s $1.1 billion senior secured credit facility also includes a $75 million five-year revolver priced at Libor plus 425 bps, after flexing down on Wednesday from talk of Libor plus 475 bps to 500 bps.

Morgan Stanley Senior Funding Inc., Barclays, Jefferies Finance LLC, Golub Capital LLC, Macquarie Capital Inc. and Nomura Securities International are leading the deal that will be used to help fund the buyout of the company by Clearlake Capital Group LP from Thoma Bravo and to refinance existing debt.

In connection with the transaction, Clearlake will contribute its portfolio company HEAT Software, a Milpitas, Calif.-based provider of Cloud Service Management and Unified Endpoint Management software solutions, to the new platform investment in LANDesk.

Closing is expected on Friday.

LANDesk is a Salt Lake City-based user-centered IT management company.

NRG above par

NRG Energy’s $1.89 billion covenant-light first-lien term loan B (Baa3/BB+) due June 2023 started trading, with levels seen at par 3/8 bid, par 7/8 offered, according to a trader.

The loan is priced at Libor plus 225 bps with a 0.75% Libor floor and was issued at par. The debt has 101 soft call protection for six months.

During syndication, the issue price on the loan was changed from 99.875.

Credit Suisse Securities (USA) LLC, Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 0.75% Libor floor.

NRG is a power producer with headquarters in Princeton, N.J., and Houston.

Travel Leaders breaks

Another deal to make its way into the secondary market was Travel Leaders Group, with its $435 million seven-year covenant-light first-lien term loan B seen at par ¼ bid, par ¾ offered, a trader said.

The term loan B is priced at Libor plus 525 bps with no Libor floor and was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

On Wednesday, the term loan B was upsized from $400 million, pricing was lowered from talk of Libor plus 550 bps to 575 bps and the discount was revised from 99.

The company’s $460 million senior secured credit facility also includes a $25 million five-year revolver priced at Libor plus 500 bps.

Morgan Stanley Senior Funding Inc. and UBS Securities LLC are leading the deal that will be used to refinance existing debt, for general corporate purposes and for certain acquisitions, and the additional proceeds from the recent term loan B upsizing will add cash to the balance sheet.

Closing is expected this coming Wednesday.

Travel Leaders is a Plymouth, Minn.-based travel agency.

Alliant begins trading

Alliant Holdings’ $1,598,500,000 senior secured covenant-light term loan B due Aug. 14, 2022 freed up, with levels seen at par ½ bid, 101 offered, a trader remarked.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets are leading the deal that will be used to roll the $278.6 million term loan B-2 priced at Libor plus 400 bps with a 1% Libor floor into the $1,319,900,000 term loan B priced at Libor plus 350 bps with a 1% Libor floor, and reprice the debt.

Closing is expected during the week of Jan. 23.

Alliant Holdings is a Newport Beach, Calif.-based specialty insurance brokerage firm.

KIK hits secondary

KIK Custom Products’ $840 million term loan B due Aug. 26, 2022 broke as well, with levels quoted at par ½ bid, 101 offered, according to a market source.

The term loan B is priced at Libor plus 450 bps with a 1% Libor floor and was issued at par. The debt has 101 soft call protection for six months.

Barclays is leading the deal that will be used to reprice an existing term loan B down from Libor plus 500 bps with a 1% Libor floor.

KIK is an Ontario-based developer and marketer of pool and spa treatment products and a manufacturer of consumer, institutional and industrial products.

Gemini frees up

Gemini HDPE’s $410.6 million term loan B due Aug. 7, 2021 began trading too, with levels quoted at par ¾ bid, 101¼ offered, a trader said.

Pricing on the loan is Libor plus 300 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

On Wednesday, pricing on the term loan was reduced from Libor plus 325 bps.

Barclays is leading the deal that will be used to reprice an existing term loan from Libor plus 375 bps with a 1% Libor floor.

Closing is expected on Monday.

Gemini HDPE is a bimodal, high-density polyethylene plant in Texas.

Avolon retranches

Moving to the primary market, Avolon divided its $5.5 billion five-year senior secured first-lien term loan B into a $500 million 3.5-year term loan B-1 talked at Libor plus 225 bps with no Libor floor and an original issue discount of 99.75 and a $5 billion five-year term loan B-2 talked at Libor plus 275 bps with a 0.75% Libor floor and a discount of 99.5, according to a market source.

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

In addition, the ticking fee on the debt was outlined as half the drawn spread starting on day 31, with funding into escrow if the acquisition has not closed by March 20, the source said.

When the deal launched as one term loan it was talked at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Avolon lead bank

Morgan Stanley Senior Funding Inc., UBS Investment Bank, Barclays, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Credit Agricole CIB and SunTrust Robinson Humphrey Inc. are leading Avolon’s term debt.

Commitments continued to be due by the end of the day on Thursday, the source added.

Proceeds will be used with senior notes to fund the $10 billion acquisition of CIT Group Inc.’s commercial aerospace leasing business.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Avolon is an Ireland-based provider of aircraft leasing and lease management services.

TransDigm upsizes

TransDigm lifted its seven-year covenant-light first-lien term loan (Ba2/B) to $2,029,000,000 from $1,225,000,000, and left talk at Libor plus 275 bps with no Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a source remarked.

Commitments were due at 5 p.m. ET on Thursday.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., UBS Investment Bank, Barclays, Goldman Sachs Bank USA, HSBC Securities Corp. and RBC Capital Markets are leading the deal that will be used to refinance a term loan C due Feb. 28, 2020 priced at Libor plus 300 bps with a 0.75% Libor floor, and, because of the upsizing, to refinance a term loan D due June 2021 priced at Libor plus 300 bps with a 0.75% Libor floor.

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

Koppers reworks deal

Koppers lifted its five-year revolving credit facility to $400 million from $300 million and its senior notes offering to $500 million from $400 million, and canceled plans for a $200 million five-year term loan A, a market source said.

Pricing on the revolver is expected to remain at Libor plus 225 bps, the source added.

PNC Bank, Bank of America Merrill Lynch and Fifth Third Bank are leading the deal.

The credit facility and notes will be used to refinance the company’s existing senior secured revolver and term loan due Aug. 15, 2019, to repurchase all outstanding senior notes due 2019 and to pay related fees and expenses.

Koppers is a Pittsburgh-based provider of treated wood products, wood treatment chemicals and carbon compounds.

MEG moves deadline

MEG Energy accelerated the commitment deadline on its $1,235,000,000 senior secured covenant-light term loan B (Ba3/BB+/BB) due Dec. 31, 2023 to 5 p.m. ET on Thursday from 5 p.m. ET on Tuesday, a market source said.

Talk on the term loan B is Libor plus 375 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Barclays, BMO Capital Markets and RBC Capital Markets are leading the deal that will be used to refinance an existing term loan B due 2020.

The Calgary, Alta.-based oil sands company also expects to extend the maturity on its revolver by two years to Nov. 5, 2021 and reduce the commitment amount to $1.4 billion.

And, the company intends to amend its credit agreement to allow for the issuance of second-lien debt, to permit the sale of its interest in the Access Pipeline, provided 70% of the net proceeds are used to repay first-lien term debt, and to allow for the sale of an additional $550 million of certain encumbered assets, in addition to the $200 million already permitted, provided that 70% of the net proceeds are used to repay first-lien term debt.

Electrical shutting early

Electrical Components moved up the commitment deadline on its $135 million add-on term loan to noon ET on Friday from Jan. 26, according to a market source.

Pricing on the term loan is Libor plus 475 bps with a 1% Libor floor, and the add-on is talked with an original issue discount of 99.25.

Bank of America Merrill Lynch is leading the deal that will be used to fund the acquisition of Fargo Assembly Co., a Fargo, N.D.-based supplier of wire harnesses to the motorcycle, agriculture, construction and specialty transportation end-markets.

Closing is expected this quarter.

Electrical Components, a portfolio company of KPS Capital Partners LP, is a St. Louis-based manufacturer of wire harnesses and provider of value-added assembly services for the home appliance industry.

Worldwide places second-lien

Worldwide Express privately placed its $125 million eight-year second-lien term loan (Caa1/CCC+) at talk of Libor plus 875 bps with a 1% Libor floor, an original issue discount of 98.5 and hard call protection of 102 in year one and 101 in year two, a market source remarked.

The company’s $545 million credit facility also includes a $60 million revolver (B1/B) and a $360 million seven-year first-lien term loan (B1/B) talked at Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Commitments for the first-lien term loan are due on Jan. 31.

Antares Capital, Deutsche Bank Securities Inc. and Citizens Bank are leading the deal, with Antares the left lead on the first-lien debt and Deutsche the left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by Ridgemont Equity Partners from Quad-C Management and combination with Unishippers Global Logistics, an existing portfolio company of Ridgemont.

Dallas-based Worldwide Express and Salt Lake City-based Unishippers are non-asset-based third-party logistics providers.

Daseke discloses talk

Also in the primary market, Daseke held its bank meeting on Thursday, launching its $350 million seven-year first-lien term loan (B1/BB-) at talk of Libor plus 550 bps to 575 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months, according to a market source.

The term loan includes a $100 million delayed-draw component.

Commitments are due at 5 p.m. ET on Feb. 2.

Credit Suisse Securities (USA) LLC, UBS Investment Bank and PNC Capital Markets are leading the term loan.

The company is also expected to get a $70 million asset-based revolver led by PNC.

Daseke being acquired

Proceeds from Daseke’s credit facility will be used to help fund its acquisition by Hennessy Capital Acquisition Corp. II, a blank-check company, in an all-stock merger transaction. The transaction will introduce Daseke as a publicly traded company, with an anticipated initial enterprise value of about $702 million. With the merger, Hennessy will change its name to Daseke Inc.

Closing is expected this quarter, subject to customary conditions, including regulatory and stockholder approvals and the receipt of proceeds from proposed debt and equity financing activities.

Daseke is an Addison, Texas-based owner of open deck equipment and a transportation and logistics solutions company in the open deck trucking market.

Compuware guidance

Compuware came out with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor and 101 soft call protection for six months on the repricing of its existing $931 million term loan B-2 and its $310 million add-on to the term loan B-2 that launched with a call during the session, according to a market source.

The repricing is offered at par and the add-on is talked with an original issue discount of 99.75, the source said.

Signature pages are due at 5 p.m. ET on Jan. 26 and new money commitments are due at 3 p.m. ET on Jan. 27.

Jefferies Finance LLC is the left lead on the deal that will reprice the existing term loan B-2 down from Libor plus 525 bps with a 1% Libor floor and repay a term loan B-1 priced at Libor plus 525 bps with a 1% Libor floor.

Compuware is a Detroit-based technology performance company.

Solera holds call

Solera Holdings hosted a lender call at 12:30 p.m. ET to launch its fungible $300 million incremental term loan B (Ba3/B) due March 2023 that is talked at Libor plus 475 bps with a 1% Libor floor, a par issue price and 101 soft call protection until March, a market source said.

Commitments are due at 11 a.m. ET on Friday, the source added.

Nomura, Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the acquisition of Autodata from Bowmark Capital and Rothschild & Co.’s Five Arrows Principal Investments.

Solera is a Westlake, Texas-based provider of software and services to the automobile insurance claims processing industry. Autodata is a U.K.-based provider of technical information and knowledge solutions for the automotive service, maintenance and repair industry.

Plaskolite launches

Plaskolite held a lender call to launch a $420 million credit facility, split between a $40 million revolver due November 2021 and a $380 million term loan B due November 2022, according to a market source.

The revolver is talked at Libor plus 400 bps with no floor and an original issue discount of 99.5, and the term loan is talked at Libor plus 400 bps with a 1% Libor floor, a discount of 99.75 and 101 soft call protection for six months, the source said.

Commitments are due on Jan. 26.

Antares Capital and KeyBanc Capital Markets are leading the deal that will be used to refinance existing bank debt.

Plaskolite is a Columbus, Ohio-based manufacturer of acrylics and other plastic products supplying a diverse range of end markets.

Lionbridge floats talk

Lionbridge came out with price talk on its $200 million seven-year first-lien term loan and $85 million eight-year second-lien term loan ahead of its Friday morning bank meeting, according to a market source.

The first-lien term loan is talked at Libor plus 550 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 975 bps with a 1% Libor floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three, the source said.

The company’s $325 million senior secured credit facility also provides for a $40 million revolver.

Commitments are due at 5 p.m. ET on Feb. 3.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used with about $172 million in equity to help the buyout of the company by H.I.G. Capital LLC for $5.75 per share in cash.

Closing is subject to shareholder approval, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Lionbridge is a Waltham, Mass.-based provider of translation, online marketing, global content management and application testing solutions.

Herbalife readies deal

Herbalife emerged with plans to hold a bank meeting at 10 a.m. ET on Friday to launch a $1,325,000,000 credit facility, according to a market source.

The facility consists of a $150 million revolver and a $1,175,000,000 seven-year covenant-light first-lien term loan, the source said.

Talk on the term loan is Libor plus 375 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source continued.

Commitments are due at 5 p.m. ET on Feb. 2.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing revolver and for general corporate purposes.

Herbalife is a Los Angeles-based nutrition and weight management company.

Terex on deck

Terex scheduled a lender call for 11:30 a.m. ET on Friday to launch a $400 million seven-year covenant-light first-lien term loan talked at Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Jan. 26, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

Terex is a Westport, Conn.-based lifting and material handling solutions company.

SMS joins calendar

SMS Systems Maintenance Services Inc. set a lenders’ meeting for Tuesday to launch a $270 million add-on term loan that will be fungible with the company’s existing $260 million term loan issued in October 2016, according to a market source.

Antares Capital is leading the deal.

The loan will be used to help fund the company’s merger with Curvature LLC, and, following the transaction, the combined company will assume the name SMS | Curvature.

Closing is expected by the end of February, subject to customary conditions, including regulatory approval.

SMS is a Charlotte, N.C.-based provider of IT data center lifecycle services. Curvature is a Santa Barbara, Calif.-based provider of new and pre-owned network hardware and IT infrastructure services.

Synchronoss closes

In other news, Synchronoss Technologies Inc. completed its purchase of Intralinks Holdings Inc. for $13.00 per share or $821 million in equity value, a news release said.

To help fund the transaction Synchronoss got a new $1.15 billion senior secured credit facility (Ba3/BB-) that includes a $250 million five-year revolver and a $900 million seven-year first-lien term loan B.

Pricing on the term loan B is Libor plus 275 bps with no Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan B was lowered from talk of Libor plus 300 bps to 325 bps.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets Inc., Bank of America Merrill Lynch and Wells Fargo Securities LLC led the deal.

Synchronoss Technologies is a Bridgewater, N.J.-based provider of managed mobility solutions for Service Providers and Enterprise. Intralinks is a New York-based content collaboration company that provides cloud-based solutions to control the sharing, distribution and management of high value content.

Penn National wraps

Penn National Gaming Inc. closed on its $1.5 billion senior secured credit facility (Ba2/BB) consisting of a $700 million five-year revolver, a $300 million five-year term loan A and a $500 million seven-year term loan B, according to a news release.

Pricing on the revolver and term loan A is Libor plus 225 bps, and pricing on the term loan B is Libor plus 250 bps with a 0.75% Libor floor. The term loan was issued at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, pricing on the term loan B was reduced from talk of Libor plus 275 bps to 300 bps.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC led the deal that was used to help refinance existing credit facilities, to fund related transaction fees and expenses and for general corporate purposes.

Penn National is a Wyomissing, Pa.-based owner and manager of gaming and racing facilities and video gaming terminal operations.

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