Voyage Digital, Tronox term loans free to trade; Colibri Group updates surface

By Sara Rosenberg

New York, March 3 – Voyage Digital (NZ) Ltd. finalized the sizes of its U.S. and NZ dollar tranches, widened spread and original issue discount on the U.S. loan, added ticking fees and made a number of changes to documentation before breaking for trading on Thursday.

Also, Tronox lifted pricing on its first-lien term loan and revised the issue price, and then the debt made its way into the secondary market.

Furthermore, Colibri Group (McKissock Investment Holdings LLC) increased the size of its first-lien term loan and finalized the spread.

Voyage revised

Voyage Digital firmed the breakdown of its NZ$1.35 billion equivalent U.S. and New Zealand dollar seven-year senior secured covenant-lite term loan B (Ba3/B+) at $510 million and NZ$600 million, raised pricing on the U.S. loan to SOFR plus 450 basis points from talk in the range of SOFR plus 400 bps to 425 bps and adjusted the original issue discount to 98.5 from talk in the range of 99 to 99.5, according to a market source.

Furthermore, ticking fees were added to the term loan of half the margin from days 76 to 90 and the full margin thereafter, and the start of the pricing grid on the U.S. term loan was revised to the second full fiscal quarter from after delivery of compliance certificate for first full fiscal quarter following the closing date.

Changes were also made to MFN, incremental/ratio debt, excess cash flow sweep, asset sale sweep step-downs, asset sale sweep reinvestment rights, contribution debt/liens basket, leverage basket restricted payments, leverage basket investments, investments in non-guarantor restricted subsidiaries, J. Crew protection and EBITDA add back.

Also, the incremental facility inside maturity basket was removed, and Chewy and Serta protection as well as quarterly lender calls were added.

The U.S. term loan still has 0 bps CSA, a 0.5% floor and 101 soft call protection for six months.

Voyage starts trading

Recommitments for Voyage Digital’s U.S. term loan were due at 1:30 p.m. ET on Thursday and the debt freed up later in the day, with levels quoted at 98¾ bid, 99¼ offered, another source added.

Morgan Stanley Senior Funding Inc., Natixis, UBS Investment Bank, Deutsche Bank Securities Inc. and ING are leading the deal. Global Loan Agency Servicing is the administrative agent.

The term loan debt will be used to fund the acquisition of Two Degrees Group Ltd. and repay existing debt at Two Degrees and Voyage Australia Pty Ltd.

Closing is expected in late April.

Voyage Digital, a joint venture between Macquarie Asset Management and Aware Super, is a telecommunications company.

Tronox flexes, breaks

Tronox widened pricing on its $400 million seven-year first-lien term loan (Ba2/BB) to SOFR plus 325 bps from talk in the range of SOFR plus 275 bps to 300 bps and changed the original issue discount to 99 from 99.5, a market source said.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

During the session, the term loan broke for trading, with levels quoted at 99¼ bid, par offered, another source added.

Goldman Sachs Bank USA, HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., BofA Securities Inc., Barclays, BNP Paribas Securities Corp. and Deutsche Bank Securities Inc. are leading the deal. HSBC is the administrative agent.

The loan will be used with cash on hand to refinance the company’s senior secured notes due 2025.

Closing is expected on April 4.

Tronox is a Stamford, Conn.-based producer of titanium bearing mineral sands and titanium dioxide pigment.

Colibri upsizes

Colibri Group raised its seven-year first-lien term loan to $670 million from $645 million and firmed the spread at SOFR+CSA plus 500 bps, compared to talk in the 500 bps area, a market source remarked.

As before, the first-lien term loan has a 0.75% floor, an original issue discount of 99, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

Allocations are expected on Friday morning, the source added.

The company’s now $900 million of credit facilities also include a $50 million five-year revolver and a $180 million privately placed second-lien term loan.

Jefferies LLC, Macquarie Capital (USA) Inc., Capital One, Golub and SMBC are leading the deal that will be used with $100 million of new equity to refinance existing debt, fund the acquisitions of Becker Professional Education and OnCourse Learning from Adtalem Global Education, and, due to the upsizing, to add cash to the balance sheet.

Colibri, backed by Gridiron Capital LLC, is a St. Louis-based provider of career lifecycle management for mandatory professional education solutions. Becker is a provider of accounting continuing professional education and test prep. OnCourse is a provider of professional education to financial institutions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.