CareerBuilder, Flying Fortress, J.D. Power break; GNC term loan rises on quarterly numbers

By Sara Rosenberg

New York, July 27 – Deals from CareerBuilder LLC, Flying Fortress Inc. and J.D. Power all freed up for trading during Thursday’s session, and GNC Holdings Inc.’s term loan was stronger with the release of earnings.

Moving to the primary market, Cision lowered the spread on its term loan, added a step-down and modified the original issue discount, and Albany Molecular Research Inc. increased the size of its first-lien term loan and reduced pricing on the tranche as well as on its second-lien term loan.

Also, Accudyne Industries raised the size of its first-lien term loan and terminated plans for a second-lien term loan, Culligan Holding Inc. upsized its incremental term loan and updated pricing on the debt and on its term loan B-1 repricing, Victory Capital Operating LLC reduced pricing on its term loan B, and FleetCor Technologies Inc. lifted the size of its term loan, cut the spread loan and set the issue price at the tight side of guidance.

Additionally, Avast Software raised the size of its euro term loan and tightened issue price talk on the euro debt as well as on its U.S. term loan, American Seafoods Group LLC shifted funds between its first-and second-lien term loans and trimmed pricing on the first-lien tranche, and United Pacific accelerated the commitment deadline on its credit facilities.

Furthermore, Atlantic Broadband Finance LLC, USI Inc., Travel Leaders Group LLC, Sundial Brands LLC, Evoqua Water Technologies (EWT Holdings III Corp.) and Lumileds (Bright Bidco BV) disclosed price talk with launch, and DuPage Medical Group, Kraton Corp. and Sparta Systems Inc. emerged with new deal plans.

CareerBuilder frees up

CareerBuilder’s credit facilities began trading on Thursday, with the $350 million six-year covenant-light first-lien term loan quoted at 97¼ bid, 98¼ offered, according to a market source.

Pricing on the term loan is Libor plus 675 basis points with a 1% Libor floor and it was sold at an original issue discount of 97. The term loan has 101 soft call protection for one year.

On Wednesday, pricing on the term loan was increased from Libor plus 600 bps, the discount widened from talk in the range of 98 to 99 and the call protection was extended from six months.

The company’s $400 million of credit facilities (B2/B) also include a $50 million revolver.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Goldman Sachs Bank USA are leading the deal that will help fund the buyout of the company by Apollo Global Management LLC and Ontario Teachers’ Pension Plan Board. Current owners, Tegna Inc., Tribune National Marketing Co. LLC and McClatchy Interactive West, will retain a minority interest.

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

CareerBuilder is a Chicago-based end-to-end human capital solutions company.

Flying Fortress hits secondary

Another deal to free to trade was Flying Fortress’ $750 million term loan B due October 2022, with levels seen at par ¼ bid, par 5/8 offered, a trader remarked.

Pricing on the term loan is Libor plus 200 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

RBC Capital Markets and Bank of America Merrill Lynch are leading the deal that will reprice an existing term loan down from Libor plus 225 bps with a 0.75% Libor floor.

Flying Fortress is a subsidiary of AerCap, a Dublin-based aircraft leasing company.

J.D. Power tops OIDs

J.D. Power’s incremental term loans also broke for trading, with the $140 million incremental first-lien term loan (B2//BB) due September 2023 quoted at par ½ bid, 101 offered and the $40 million incremental second-lien term loan (Caa2//BB-) due September 2024 quoted at 101 bid, 101½ offered, a trader said.

Pricing on the incremental first-lien loan is Libor plus 425 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 850 bps with a 1% Libor floor and was issued at a discount of 99.5. This tranche has call protection of 102 in year one and 101 in year two.

On Wednesday, the discount on the first-lien term loan was changed from 99.5 and the discount on the second-lien term loan was modified from 99.

Credit Suisse Securities (USA) LLC is leading the $180 million in incremental term loans that will be used to fund an acquisition and a shareholder distribution.

With this transaction, existing lenders were offered a 12.5 bps consent fee.

J.D. Power is a Costa Mesa, Calif.-based consumer data and analytics company.

GNC gains ground

Also in trading, GNC’s term loan headed up to 96 bid, 97 offered from 92 bid, 93 offered after the company announced results for the second quarter, according to a trader.

The trader went on to say that the company is going through a restructuring of its business and it “seems to be working”.

For the quarter, the company reported net income of $15.7 million, or $0.23 per diluted share, compared with $64 million, or $0.94 per diluted share, in the prior year.

And, consolidated revenue for the quarter was $641 million, versus $673.2 million for the second quarter of 2016.

GNC is a Pittsburgh-based specialty health, wellness and performance retailer.

Cision updated

Switching to the primary market, Cision lowered pricing on its $1.25 billion U.S. and euro senior secured covenant-light first-lien term loan B (B2/B) due June 2023 to Libor/Euribor plus 425 bps from Libor/Euribor plus 450 bps, added a 25 bps pricing step-down upon senior secured net leverage of less than 4 times and tightened the original issue discount to 99.75 from 99, a market source said.

The term loan, split between a $960 million tranche and a €250 million tranche, still has a 0% floor and 101 soft call protection for six months.

Recommitments are due at the end of the day on Friday, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance an existing first-lien term loan, repay $38 million of revolver borrowings and $76 million of second-lien term loan debt, add $4 million of cash to the balance sheet, and cover fees and expenses.

Total debt to pro forma adjusted EBITDA will be 4.7 times and net debt will be 4.5 times.

Cision is a Chicago-based media intelligence company.

Albany Molecular revised

Albany Molecular Research raised its seven-year first-lien term loan (B) to $655 million from $620 million, cut pricing to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps, moved the original issue discount to 99.75 from 99.5 and extended the 101 soft call protection to one year from six months, while leaving the 1% Libor floor unchanged, according to a market source.

As for the $205 million eight-year second-lien term loan (B-), pricing was trimmed to Libor plus 700 bps from talk of Libor plus 750 bps to 775 bps and the discount was tightened to 99.5 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 now $960 million of senior secured credit facilities also include a $100 million five-year revolver (B).

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

Albany Molecular leads

Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets, Goldman Sachs Bank USA, Jefferies LLC and Mizuho Bank Ltd. are leading Albany Molecular’s credit facilities, with Barclays the left lead on the first-lien term loan and Morgan Stanley the left lead on the second-lien term loan.

Proceeds will be used with equity to fund the buyout of the company by the Carlyle Group and GTCR LLC for $21.75 per share in cash. Due to the first-lien term loan upsizing, the amount of equity being used for the transaction is being reduced, the source added.

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. A shareholder meeting to vote on the transaction is expected to take place in the third quarter.

Albany Molecular is an Albany, N.Y.-based contract research and manufacturing organization that works with the life sciences industry to improve patient outcomes and the quality of life.

Accudyne restructures

Accudyne Industries upsized its seven-year covenant-light first-lien term loan to $825 million from $705 million as an initially planned $120 million eight-year covenant-light second-lien term loan was removed from the capital structure, a market source remarked.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The cancelled second-lien term loan was talked at Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

The company’s $975 million senior secured deal also includes a $150 million five-year revolver.

Commitments continue to be due on Tuesday, the source added.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will refinance existing debt, and fund working capital and general corporate purposes.

Accudyne is a Dallas-based provider of precision engineered, process-critical and technologically advanced flow control systems and industrial compressors.

Culligan changes surface

Culligan Holding lifted its incremental covenant-light senior secured term loan B due Dec. 13, 2023 (at an Australian borrower) to $345 million from $335 million and tightened the original issue discount to 99.875 from 99.5, a market source said.

Also, pricing on the incremental loan as well as on the repricing of the company’s existing $298.5 million covenant-light term loan B-1 due Dec. 13, 2023 (at a U.S. borrower) was set at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and a step-down was added to Libor plus 325 bps at 0.75 times below closing net first-lien leverage, the source continued.

As before, the term loans have a 1% Libor floor and 101 soft call protection for six months, and the repricing is offered at par.

Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, BMO Capital Markets Corp. and Citigroup Global Markets Inc. are leading the deal.

Culligan buying Zip

Proceeds from Culligan’s incremental loan will be used to fund the acquisition of Zip Industries and to refinance an existing euro term loan B. The repricing will take the existing term loan B-1 down from Libor plus 400 bps with a 1% Libor floor.

The source explained that the upsizing to the incremental loan was done to account for foreign exchange rates.

Commitments/consents were due at 5 p.m. ET on Thursday, the source added.

Closing on the acquisition is expected in August.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services. Zip Industries is an Australian supplier of instant drinking water appliances.

Victory cuts spread

Victory Capital trimmed pricing on its $540 million term loan B (B2/BB-) due Oct. 31, 2021 to Libor plus 525 bps from talk of Libor plus 550 bps to 600 bps, a market source remarked.

The term loan still has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

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

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan B from Libor plus 750 bps with a 1% Libor floor.

Victory Capital is a Brooklyn, Ohio-based asset management firm.

FleetCor modifies loan

FleetCor Technologies raised its seven-year covenant-light term loan to $350 million from $250 million, lowered pricing to Libor plus 200 bps from Libor plus 225 bps and firmed the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will be used to amend and extend from 2021 an existing term loan.

FleetCor is a Norcross, Ga.-based provider of specialized payment products and services, including fleet cards, food cards and corporate lodging discount cards for businesses.

Avast tweaks deal

Avast Software upsized its fungible euro incremental covenant-light term loan B due September 2023 to €75 million from €50 million, and tightened issue price talk on the euro term loan as well as on its fungible $50 million incremental covenant-light term loan B due September 2023 to a range of 100.25 to 100.5 from par, a market source remarked.

Pricing on the incremental U.S. term loan is Libor plus 325 bps with a 1% Libor floor, pricing on the incremental euro term loan is Euribor plus 350 bps with a 0% floor, and both loans have 101 soft call protection through Sept. 30.

Commitments for the U.S. term loan were due at 5 p.m. ET on Thursday and commitments for the euro term loan are due at 7 a.m. ET on Friday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used for general corporate purposes.

Avast is a Prague-based maker of security software.

American Seafoods reworked

American Seafoods Group upsized its six-year first-lien term loan (BB-) to $600 million from $565 million and flexed pricing down to Libor plus 325 bps from Libor plus 375 bps, while keeping the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, according to a market source.

With the first-lien term loan upsizing, the 6.5-year second-lien term loan (CCC+) was scaled back to $115 million from $150 million, the source said.

The company’s $775 million of senior secured credit facilities also include a $60 million five-year revolver (BB-).

Recommitments were due at 3 p.m. ET on Thursday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

American Seafoods is a Seattle-based harvester and processor of seafood.

United Pacific moves deadline

United Pacific accelerated the commitment deadline on its $255 million of credit facilities (B1/B) to 5 p.m. ET on Monday from noon ET on Wednesday, a market source said.

The facilities consist of a $25 million revolver, and a $230 million seven-year first-lien term loan talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing bank debt, to fund a dividend, to add cash to the balance sheet and for general corporate purposes.

United Pacific is a seller of fuel and convenience items through its network of retail gas stations and a convenience store operator.

Atlantic Broadband sets talk

In more primary news, Atlantic Broadband had its bank meeting on Thursday afternoon, and a few hours before the event kicked off, price talk was announced on its $1.7 billion seven-year covenant-light first-lien term loan at Libor plus 250 bps to 275 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and ticking fees will be on offer.

The $1.85 billion of credit facilities (B1/BB-) also include a $150 million revolver.

Commitments are due on Aug. 11.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, CIBC and BMO Capital Markets are leading the deal that will be used with a $315 million equity investment from Caisse de depot et placement du Quebec to fund the acquisition of the MetroCast cable systems from Harron Communications LP for $1.4 billion.

Closing is expected in January 2018, subject to regulatory approvals and other conditions.

Atlantic Broadband, a subsidiary of Cogeco Communications Inc., is a Quincy, Mass.-based cable operator. The new debt will be non-recourse to Cogeco.

USI terms revealed

USI launched on its lender call a $525 million incremental covenant-light first-lien term loan (B) due May 16, 2024 talked at Libor plus 300 bps with a 25 bps step-down when the corporate credit/corporate family rating is B2/B, a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection until Nov. 16, 2017, a market source remarked.

Spread, floor and call protection on the incremental loan matches the existing first-lien term loan.

Commitments are due at noon ET on Aug. 4, the source added.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, KKR Capital Markets and Macquarie are leading the deal that will be used to fund the acquisition of ACO Brokerage (Wells Fargo Insurance Services USA) from Wells Fargo & Co.

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

USI is a Valhalla, N.Y.-based insurance brokerage and consulting firm.

Travel Leaders launches

Travel Leaders held its call, launching its $100 million incremental senior secured covenant-light term loan B due Jan. 25, 2024 and repricing of its existing $433,912,500 senior secured covenant-light term loan B due Jan. 25, 2024 at talk of Libor plus 475 bps with a 0% Libor floor and 101 soft call protection for six months, according to a market source.

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

Consents and commitments are due at noon ET on Aug. 3.

Morgan Stanley Senior Funding Inc., UBS Investment Bank and J.P. Morgan Securities LLC are leading the deal that will be used to fund certain merger and acquisition transactions and reprice the existing term loan B down from Libor plus 525 bps with a 0% Libor floor.

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

Sundial discloses guidance

Sundial Brands came out with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months on its $280 million seven-year term loan B that launched with a morning bank meeting, a market source said.

The company’s $315 million of senior secured credit facilities (B-) also include a $35 million five-year revolver.

Goldman Sachs Bank USA, KeyBanc Capital Markets and UBS Investment Bank are leading the deal that will be used to refinance existing debt, fund a distribution to shareholders and pay related fees and expenses.

Sundial Brands is an Amityville, N.Y.-based beauty company.

Evoqua details surface

Evoqua Water Technologies held its lender call in the morning, and shortly before the call began it was revealed that the company would be presenting lenders with an $80 million tack-on first-lien term loan (B2/B) due Jan. 15, 2021 and a repricing of its $183 million incremental first-lien term loan (B2/B) due Jan. 15, 2021, according to a market source.

The tack-on loan and repriced loan are talked at Libor plus 375 bps with a 1% Libor floor and 101 soft call protection for six months, the source said, adding the tack-on loan is talked with an original issue discount of 99.75 and the repricing is offered at par.

Credit Suisse Securities (USA) LLC is leading the deal for which commitments are due at 5 p.m. ET on Aug. 3.

Proceeds from the tack-on loan will be used to repay revolver borrowings and for general corporate purposes, and the repricing will take the incremental term loan down from Libor plus 450 bps with a 1% Libor floor.

The loans will be fungible with the company’s existing $636 million term loan priced at Libor plus 375 bps with a 1% Libor floor.

Evoqua is a Warrendale, Pa.-based provider of equipment and services for water treatment.

Lumileds floats price

Lumileds launched with a call its $240 million add-on covenant-light first-lien term loan B due June 2024 at original issue discount talk of 99.75 to par, according to a market source.

Like the existing loan, the add-on term loan is priced at Libor plus 450 bps with a 1% Libor floor and has 101 soft call protection until December 2017.

Commitments are due at 5 p.m. ET on Aug. 3, the source said.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to fund a $235 million distribution to equity holders.

An amendment is being sought after in connection with the add-on loan and dividend payment, and lenders are offered a 25 bps consent fee, the source added.

Apollo is the sponsor.

Lumileds is a supplier of LED components and automotive lighting.

DuPage readies deal

DuPage Medical Group will hold a bank meeting at 10:30 a.m. ET on Monday to launch $620 million in term loans, a market source remarked.

The debt is split between a $430 million seven-year first-lien term loan with 101 soft call protection for six months and a $190 million eight-year second-lien term loan with call protection of 102 in year one and 101 in year two, the source added.

Commitments are due at 5 p.m. ET on Aug. 14.

Credit Suisse Securities (USA) LLC, Barclays, Nomura, Citizens Bank and Citigroup Global Markets Inc. are leading the deal that will be used for acquisition financing and to refinance existing debt.

DuPage is a Downers Grove, Ill.-based multi-specialty physician group.

Kraton on deck

Kraton set a lender meeting in London for Monday to launch a $606 million covenant-light term loan (Ba3/BB-) and a €220 million covenant-light term loan (Ba3/BB-), market sources said.

Talk on the U.S. term loan is Libor plus 325 bps to 350 bps with a 1% Libor floor and a par issue price, and talk on the euro term loan is Euribor plus 250 bps to 275 bps with a 1% floor and an issue price of 99.75 to par, sources continued, adding that both loans have 101 soft call protection for six months.

Commitments are due on Aug. 7.

J.P. Morgan, Deutsche Bank, Credit Suisse and Bank of America Merrill Lynch are leading the deal.

The euro term loan will be used to repay a portion of the company’s existing U.S. term loan and the U.S. term loan will be used to reprice the remaining amount under the U.S. term loan from Libor plus 400 bps with a 1% Libor floor.

Kraton is a Houston-based producer of engineered polymers and styrenic block copolymers.

Sparta joins calendar

Sparta Systems will hold a bank meeting on Wednesday to launch $265 million of senior secured credit facilities, according to a market source.

The facilities consist of a $25 million revolver and a $240 million seven-year first-lien term loan with 101 soft call protection for six months, the source said.

The company is also getting a $75 million eight-year second-lien term loan that has been privately placed.

Jefferies LLC, Ares and BMO Capital Markets are leading the deal that will be used to help fund the buyout of Sparta Systems by New Mountain Capital LLC from Thoma Bravo LLC, which will retain a minority stake in the company.

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

Sparta Systems is a Hamilton N.J.-based provider of quality management system software to the pharmaceutical, medical device and CPG industries.

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