Innovative XCessories, First Data, HealthSun free to trade; TricorBraun revisions surface

By Sara Rosenberg

New York, Nov. 23 – Innovative XCessories & Services LLC finalized price on its term loan B at the low end of guidance and then the debt made its way into the secondary market on Wednesday, and First Data Corp. and HealthSun began trading too.

In more happenings, TricorBraun firmed the spread and original issue discount on its funded and delayed-draw term debt at the wide side of talk, extended the call protection and reworked some of the delayed-draw terms, and GTT Communications Inc. scheduled a bank meeting for its previously announced credit facility.

Innovative XCessories breaks

Innovative XCessories & Services’ $400 million six-year term loan B (B2/B) freed up for trading on Wednesday at par bid, 101 offered after pricing on the debt firmed at Libor plus 475 basis points, the low end of the Libor plus 475 bps to 500 bps talk, according to a market source.

The term loan B has a 1% Libor floor and 101 soft call protection for one year and was sold at an original issue discount of 99.

In addition to the term loan B, the company’s $428 million credit facility includes a $28 million five-year revolver (B2/BB-) split between an $18 million U.S. tranche and a $10 million-equivalent Canadian tranche.

Jefferies Finance LLC, Antares Capital, ING, Siemens and MidCap are leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Pro forma net leverage is 3.9 times.

Innovative XCessories, an Olympus Partners portfolio company, is a Huntsville, Ala.-based provider of upfit services and accessories to the automotive aftermarket and original equipment manufacturers.

First Data starts trading

First Data’s $2,783,000,000 first-lien term loan due July 10, 2022 also broke, with levels seen at 100¼ bid, 100½ offered, a market source said.

Pricing on the term loan is Libor plus 300 bps with a 25-bps step-down at 3.5 times net first-lien leverage and no Libor floor. The debt was issued at par and includes 101 soft call protection for six months.

The company is also getting a €763 million first-lien term loan due July 10, 2022 priced at Euribor plus 325 bps with a 25-bps step-down at 3.5 times net first-lien leverage, no Euribor floor and a par issue price. This tranche also has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal (Ba3/BB) that will be used to reprice an existing U.S. term loan down from Libor plus 375 bps and an existing euro term loan down from Euribor plus 375 bps.

First Data is an Atlanta-based provider of payment processing solutions.

HealthSun frees up

HealthSun’s credit facility began trading as well, with the $457 million six-year covenant-light term loan B quoted at 94½ bid, 95½ offered, according to a market source.

The term loan B is priced at Libor plus 550 bps with a 1% Libor floor and was sold at an original issue discount of 94. The debt has 101 soft call protection for one year.

During syndication, the term loan was upsized from $450 million, pricing was lifted from revised talk of Libor plus 525 bps and initial talk of Libor plus 450 bps to 475 bps, the discount firmed at the wide end of most recent talk of 94 to 95 and wide of revised talk of 97 and initial talk of 99, the call protection was extended from six months, the maturity was shortened from seven years and the MFN sunset was removed.

The term loan upsizing was done to compensate for the wider original issue discount.

The company’s $482 million credit facility (B2/BB-) also includes a $25 million revolver.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to support the buyout of the company by Summit Partners.

HealthSun is a Coconut Grove, Fla.-based Medicare Managed Care Organization.

TricorBraun modified

Back in the primary market, TricorBraun set pricing on its $600 million covenant-light term loan and $60 million delayed-draw term loan strip at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, and firmed the original issue discount on the debt at 99, the wide end of the 99 to 99.5 talk, a source remarked.

Additionally, the 101 soft call protection was extended to one year from six months, the delayed-draw availability period was reduced to one year from two years, and the ticking fee was modified to half the spread for the first 90 days and the full spread (no Libor floor) thereafter, from half the spread for the first year and the full spread thereafter, the source continued.

Also, the MFN sunset was removed, the $50 million MFN carve-out was eliminated, certain EBITDA addbacks were capped at 25% of EBITDA, and management is required to conduct quarterly lender conference calls.

The term loans still have a 1% Libor floor.

TricorBraun getting revolver

Along with the term loans, TricorBraun’s $735 million credit facility (B2/B) includes a $75 million revolver.

Commitment confirmations are due by noon ET on Monday with allocations expected on Tuesday, 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.

Closing is anticipated for Nov. 30.

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

GTT timing emerges

GTT Communications set a bank meeting for 2 p.m. ET in New York on Tuesday to launch its $775 million credit facility, a market source said.

The facility consists of a $75 million revolver and a $700 million term loan B.

KeyBanc Capital Markets Inc., Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will help fund the acquisition of Hibernia Networks and refinance existing debt.

Other funds for the transaction are expected to come from $300 million of senior unsecured notes, according to filings with the Securities and Exchange Commission.

Total net debt to adjusted EBITDA at closing is expected to be about 4.5 times using pro forma combined third-quarter 2016 annualized adjusted EBITDA plus expected cost synergies.

Closing is expected by the end of first quarter 2017, subject to regulatory approvals and other conditions.

GTT is a McLean, Va.-based cloud networking provider. Hibernia is a provider of high-speed network connectivity solutions and an owner of terrestrial and subsea fiber assets.

Hoffmaster closes

In other news, the buyout of Hoffmaster Group Inc. by Wellspring Capital Management LLC from Metalmark Capital has been completed, according to a news release.

To help fund the transaction, Hoffmaster got a new $565 million credit facility that includes a $50 million revolver, a $390 million seven-year first-lien covenant-light term loan (B2/B) and a $125 million eight-year second-lien covenant-light term loan (Caa2/CCC+).

Pricing on the first-lien term loan is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 950 bps with a 1% Libor floor, and was issued at a discount of 97. This tranche has call protection of 102 in year one and 101 in year two.

Hoffmaster lead banks

RBC Capital Markets LLC, Jefferies Finance LLC and Macquarie Capital (USA) Inc. led Hoffmaster’s credit facility.

During syndication, the deal underwent a few updates, including finalizing pricing on the first-lien term at the high end of the Libor plus 425 bps to 450 bps talk and extending the call protection from six months. Also, pricing on the second-lien term loan was increased from Libor plus 850 bps, and the discount widened from talk of 98 to 98.5.

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

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