BMC Software, Atlantic Power, First Eagle, Talen Energy break; Utility One moves deadline

By Sara Rosenberg

New York, April 6 – BMC Software downsized its U.S. term loan, upsized its euro term loan and set the spread on the euro tranche at the tight end of talk before freeing up for trading on Thursday, and Atlantic Power Corp.’s term loan emerged in the secondary market too.

Also, First Eagle Holdings Inc. upsized its term loan B and finalized the spread at the high end of guidance, and Talen Energy Supply LLC increased the size of its term loan B-2 and updated pricing on the tranche, as well as on its term loan B-1, and then both of these deals broke as well.

Furthermore, Utility One Source (UOS LLC) moved up the commitment deadline on its credit facilities, TravelClick Inc., Checkers Drive-In Restaurants Inc., Authentic Brands Group and Edgewood Partners Insurance Center Inc. released price talk with launch, and Inmar Inc. disclosed guidance on its term loans in preparation for its upcoming bank meeting.

BMC modified, trades

BMC Software trimmed its U.S. covenant-light term loan (B1/B+) due September 2022 to $2,325,000,000 from $2,365,000,000, lifted its euro covenant-light term loan (Ba3/B+) due September 2022 to €690 million from €650 million and firmed pricing on the euro loan at Euribor plus 450 basis points, the low end of the Euribor plus 450 bps to 475 bps talk, according to a market source.

As before, the U.S. term loan is priced at Libor plus 400 bps with a step-down and a 1% Libor floor, the euro loan has a 0% floor, and both term loans have an original issue discount of 99.75 and 101 soft call protection for six months.

After terms finalized, the U.S. term loan freed to trade on Thursday, with levels seen at 100 1/8 bid, 100½ offered, another source remarked.

Credit Suisse is leading the deal that will be used to extend the existing U.S. term loan B from 2020, and the euro loan will be used to refinance debt and extend the existing euro term loan B from 2020.

BMC is a Houston-based provider of IT digital enterprise management solutions.

Atlantic Power frees up

Atlantic Power’s $615 million senior secured term loan B due April 2023 broke for trading too, with levels quoted at 101 bid, 102 offered, a market source said.

Pricing on the term loan B is Libor plus 425 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, RBC Capital Markets, MUFG and Wells Fargo Securities LLC are 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.

Atlantic Power is a Dedham, Mass.-based owner and operator of power generation assets.

First Eagle updated, breaks

First Eagle Holdings increased its senior secured covenant-light term loan B due Dec. 1, 2022 to $1,527,000,000 from $1,482,000,000 and set pricing at Libor plus 350 bps, the high end of the Libor plus 325 bps to 350 bps talk, according to a market source.

The term loan still has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET and then, by late day, the loan freed to trade, with levels quoted at 100¼ bid, 100¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc., Citigroup Global Markets Inc. and Bank of America Merrill Lynch are leading the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 0.75% Libor floor, and, because of the upsizing, for general corporate purposes.

Closing is expected on Wednesday.

First Eagle is a New York-based independent, privately held asset management firm.

Talen Energy revised

Talen Energy Supply raised its secured covenant-light term loan B-2 due April 2024 to $500 million from $400 million, firmed pricing at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and set the original issue discount at 99, the wide end of the 99 to 99.5 talk, according to a market source.

Additionally, the company finalized the spread on its $600 million covenant-light term loan B-1 due July 2023 at Libor plus 400 bps, the tight end of the Libor plus 400 bps to 425 bps talk, the source said.

Both term loans still have a 1% Libor floor and 101 soft call protection for six months, and the term loan B-1 still has a par issue price.

With the term loan B-2 upsizing, the company scaled back its senior notes offering to $400 million from $500 million, the source continued.

Talen hits secondary

Late in the session, Talen Energy’s loans began trading, with the term loan B-2 and the term loan B-1 both quoted at 100 1/8 bid, 100½ offered, a trader added.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., MUFG, Credit Suisse Securities (USA) LLC and RBC Capital Markets are the joint lead arrangers on the term loan B-2, with Morgan Stanley the administrative agent. Morgan Stanley, Goldman Sachs, Deutsche Bank, MUFG and Credit Suisse are the joint lead arrangers on the term loan B-1, with Goldman the administrative agent.

The term loan B-2 will be used with the notes to refinance some existing debt, including 6½% senior notes due 2018, 4 5/8% senior notes due 2019 and 4.6% senior notes due 2021, and to pay transaction fees and expenses, and the term loan B-1 will be used to amend and reprice an existing term loan B down from Libor plus 500 bps with a 1% Libor floor and revise the maturity from December 2023.

Closing is expected on April 13.

Talen Energy is an Allentown, Pa.-based competitive energy and power generation company.

Utility One tweaks timing

Back in the primary market, Utility One Source accelerated the commitment deadline on its $550 million in senior secured credit facilities (B2/B) to 5 p.m. ET on Thursday from Friday, a market source said.

The facilities consist of a $100 million revolver and a $450 million six-year covenant-light first-lien term loan B.

Talk on the term loan B is Libor plus 625 bps with a 1% Libor floor, an original issue discount of 98.5 and call protection of non-callable for one year, then with hard call protection of 102 in year two.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and RBC Capital Markets are leading the deal that will be used to refinance existing debt and pay related fees and expenses.

Utility One is a Kansas City, Mo.-based provider of equipment and service solutions to the utility and infrastructure sectors.

TravelClick holds call

TravelClick surfaced in the morning with plans to host a lender call at 11 a.m. ET on Thursday to launch a fungible $65 million incremental first-lien term loan due May 2021 and a repricing of its existing $385 million covenant-light first-lien term loan due May 2021, according to a market source.

The term debt is talked at Libor plus 400 bps with a 1% Libor floor and 101 soft call protection for six months, the source said. The incremental loan is talked with an original issue discount of 99.5 and the repricing is offered at par.

Commitments are due at 5 p.m. ET on April 13, the source added.

Credit Suisse Securities (USA) LLC is leading the deal (B2).

Proceeds from the incremental loan will be used to repay a portion of the company’s existing second-lien term loan and the repricing will take the existing term loan down from Libor plus 450 bps with a 1% Libor floor.

TravelClick is a New York-based provider of solutions to the hospitality industry.

Checkers sets guidance

Checkers Drive-In Restaurants had its bank meeting, launching its $192.5 million seven-year first-lien term loan at talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due on April 17, the source added.

The company’s $305 million of credit facilities also include a $25 million revolver and an $87.5 million pre-placed eight-year second-lien term loan.

Jefferies Finance LLC, Antares Capital, KeyBanc Capital Markets and Citizens are leading the deal that will be used to help fund the buyout of the company by Oak Hill Capital Partners from Sentinel Capital Partners in a transaction valued at about $525 million.

Closing is expected in the second quarter, subject to HSR approval and other customary conditions.

Checkers is a Tampa, Fla.-based operator and franchisor of drive-thru hamburger quick-service restaurants.

Authentic Brands details

Authentic Brands Group held a lender call in the morning, launching a $90 million add-on first-lien term loan (B+) talked at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99.75 and a $25 million add-on second-lien term loan (CCC+) talked at Libor plus 850 bps with a 1% Libor floor and a discount of 99.5 to 99.75, according to a market source.

The spreads and floors on the add-on term loans match existing first-and second-lien term loan pricing.

Commitments are due on April 13, the source said.

Bank of America Merrill Lynch is the lead bank on the $115 million in add-on term loans that will be used to fund an acquisition.

Authentic Brands is a New York-based brand development and licensing company.

Edgewood releases talk

Edgewood Partners launched at a morning meeting a $275 million term loan B (B3) that is talked at Libor plus 450 bps to 475 bps with a 1% Libor floor and an original issue discount of 99.75, a market source remarked.

J.P. Morgan Securities LLC is leading the deal.

The term loan B will be used to refinance existing debt and for general corporate purposes.

Edgewood is a San Francisco-based insurance brokerage and consulting company.

Inmar terms surface

Inmar came out with price talk on its $580 million seven-year covenant-light first-lien term loan and $175 million eight-year covenant-light second-lien term loan ahead of its bank meeting scheduled for 10 a.m. ET in New York on Friday, according to a market source.

The first-lien term loan is talked at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 825 bps with a 1% Libor floor and a discount of 98.5, the source said.

As previously reported, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $830 million of credit facilities also include a $75 million revolver.

Inmar lead banks

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading Inmar’s credit facilities that will be used to help fund its buyout by Omers Private Equity and management from ABRY Partners.

Commitments are due at 5 p.m. ET on April 21.

Closing on the buyout is expected in the second quarter.

Post-closing, ABRY will continue to be a significant shareholder in the company.

Inmar is a Winston-Salem, N.C.-based provider of technology-enabled promotion and inventory, logistics and settlement services.

UFC allocates

In other news, UFC Holdings LLC allocated on Thursday its fungible $100 million add-on first-lien term loan (B+), according to a market source.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par.

KKR Capital Markets LLC is leading the deal that will be used to help fund an earn-out and other payments to selling shareholders under a 2016 purchase agreement.

UFC is a Las Vegas-based sports brand and pay-per-view event provider.

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