Hoffmaster breaks; Syniverse weakens on earnings; Telesat Canada finalizes loan terms

By Sara Rosenberg

New York, Nov. 9 – Hoffmaster Group Inc. finalized the spread on its first-lien term loan at the wide end of guidance and extended the call protection, and then the loan made its way into the secondary market above its original issue discount.

In more trading happenings, Syniverse Holdings Inc.’s new and old term loans headed lower on the back of disappointing quarterly numbers that showed a year-over-year decline in earnings, revenues and adjusted EBITDA.

Back in the primary market, Telesat Canada firmed pricing on its term loan B at the low end of talk and sweetened the call protection, TricorBraun released price talk with launch, Midcontinent Communications and SAI Global surfaced with new deal plans, and timing and structure came out on LDiscovery LLC’s loan transaction.

Hoffmaster updated

Hoffmaster set pricing on its $390 million seven-year first-lien covenant-light term loan (B2/B) at Libor plus 450 basis points, the high end of the Libor plus 425 bps to 450 bps talk, and pushed out the 101 soft call protection to one year from six months, according to a market source.

The first-lien term loan still has a 1% Libor floor and an original issue discount of 99.

The company’s $565 million credit facility also includes a $50 million revolver and a $125 million eight-year second-lien covenant-light term loan (Caa2/CCC+).

Talk on the second-lien term loan at launch was Libor plus 850 bps with a 1% Libor floor, an original issue discount of 98 to 98.5 and call protection of 102 in year one and 101 in year two. Final terms on this tranche have not yet been released.

Hoffmaster frees up

Recommitments for Hoffmaster’s first-lien term loan were due at 3:30 p.m. ET on Wednesday, and then the debt broke for trading with levels quoted at 99½ bid, par offered, a trader said.

The company’s second-lien term loan is expected to allocate on Thursday after document changes are posted in the morning, the source added.

RBC Capital Markets LLC, Jefferies Finance LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Wellspring Capital Management LLC from Metalmark Capital.

Hoffmaster is an Oshkosh, Wis.-based producer of specialty disposable tabletop products.

Syniverse softens

Syniverse’s term loans dropped in trading following the release of results for the quarter ended Sept. 30, 2016, a trader said.

The new and the old term loans were quoted at 88 bid, 90 offered, down from 91¾ bid, 92¾ offered, the trader added.

For the quarter, the company reported a net loss of $17.2 million, compared to a net loss of $5.8 million in the quarter ended Sept. 30, 2015.

Revenues for the quarter were $196.6 million, versus $223.9 million in the prior year, and adjusted EBITDA was $72.8 million, down from $81.3 million in the previous year.

Syniverse is a Tampa, Fla.-based provider of technology and business services for the telecommunications industry.

Garda holds steady

Garda World Security Corp.’s non-fungible $125 million add-on first-lien term loan (B1/B/BB+) was quoted at 98 bid, 99 offered, in line with where it freed up for trading on Tuesday afternoon, a market source remarked.

The loan is priced at Libor plus 300 bps with a 1% Libor floor, and was sold at an original issue discount of 98, after firming earlier this week at the wide end of the 98 to 98.5 talk. The debt has 101 soft call protection for six months.

Macquarie Capital (USA) Inc. led the deal that was used to pay down revolver borrowings and increase liquidity.

Closing on the loan was announced by the company on Wednesday.

Garda is a Montreal-based provider of business solutions and security services.

BWIC announced

Also in the secondary market, a $145.3 million Bid Wanted In Competition surfaced, with bids due at noon ET on Thursday, according to a trader.

Some of the names in the portfolio are Advanced Disposal Services Inc., BMC Software Inc., Chrysler Group LLC, Delta Air Lines Inc., Essential Power LLC, Goodyear Tire & Rubber Co., Information Resources Inc., National Cinemedia LLC, Valeant Pharmaceuticals International Inc. and Waste Industries USA Inc.

There are about 53 issuers in the BWIC, the trader added.

Telesat tweaks deal

Returning to the primary market, Telesat Canada finalized pricing on its $2.43 billion seven-year term loan B at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and extended the 101 soft call protection to one year from six months, a source said.

The term loan B still has a 0.75% Libor floor and an original issue discount of 99.

On Tuesday, the term loan B was upsized from $2.18 billion when the company downsized its notes offering to $500 million from $750 million.

J.P. Morgan Securities LLC is leading the $2.63 billion credit facility, which also includes a $200 million five-year revolver.

Proceeds from the credit facility and bonds will be used to redeem notes, repay bank debt and fund a cash dividend to shareholders.

Telesat is an Ottawa-based fixed satellite services operator.

TricorBraun discloses talk

TricorBraun held its bank meeting on Wednesday, launching its $600 million covenant-light term loan and $60 million delayed-draw term loan strip at talk of Libor plus 350 bps to 375 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The delayed-draw term loan is available for two years, with a ticking fee of half the spread for the first year and the full spread thereafter, the source said.

The company’s $735 million credit facility (B) also includes a $75 million revolver.

Commitments are due on Nov. 22 and closing is targeted for Nov. 30, the source added.

Antares Capital, Nomura and Guggenheim Securities are leading the deal that will be used to help fund the acquisition of the company by AEA Investors LP from CHS Capital.

TricorBraun is a St. Louis-based specialty distributor of plastic and glass packing products.

Midcontinent on deck

Midcontinent Communications set a bank meeting for 10 a.m. ET on Thursday to launch a $535 million credit facility, according to a market source.

The facility consists of a $250 million five-year revolver talked at Libor plus 225 bps, and a $285 million seven-year term loan B (Ba1) talked at Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, the source said.

Commitments are due on Nov. 22.

SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, RBC Capital Markets, TD Securities (USA) LLC and U.S. Bank are leading the deal that will be used to refinance an existing credit facility.

Secured leverage is 1.7 times and total leverage is 4.8 times.

Midcontinent Communications is a Sioux Falls, S.D.-based provider of cable television, local and long-distance digital telephone service and high-speed internet access.

SAI readies deal

SAI Global emerged with plans to hold a bank meeting at 1 p.m. ET in New York on Thursday to launch a $515 million first-lien term loan, a market source said.

Goldman Sachs Bank USA, UBS Investment Bank and HSBC Securities (USA) Inc. are leading the debt.

SAI is a Sydney, Australia-based provider of risk management products and services to businesses across a diverse range of end-markets and geographies.

LDiscovery sets launch

LDiscovery scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch $465 million of term loans, split between a $340 million seven-year first-lien term loan and a $125 million eight-year second-lien term loan, a source remarked.

RBC Capital Markets LLC is leading the deal that will be used to fund the roughly $410 million acquisition of Kroll Ontrack from Corporate Risk Holdings LLC.

Closing is expected in the fourth quarter, subject to customary conditions.

LDiscovery, a portfolio company of Carlyle Group and Revolution Growth, is a McLean, Va.-based technology-enabled eDiscovery services provider. Kroll Ontrack is a Minneapolis-based data recovery company.

Berlin Packaging closes

In other news, Berlin Packaging LLC completed its acquisition Italy-based Bruni Glass, a distributor of glass containers, bottles and special glass packaging, a news release said.

To fund the acquisition, Berlin Packaging got a new fungible $190 million incremental covenant-light term loan B (B2/B) due October 2021.

The term loan B is priced at Libor plus 350 bps with a 1% Libor floor and was issued at par, after tightening from talk of 99.5 to 99.75 during syndication. The debt has 101 soft call protection for six months, which was added to incremental and existing term loan at the same time that the issue price was revised.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Barclays led the deal.

Including the incremental loan, the term loan B size totals about $825 million.

Berlin Packaging is a Chicago-based hybrid packaging supplier.

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