TTM Technologies, Chemours, Leighton, Quintiles, eResearch, Black Knight free to trade

By Sara Rosenberg

New York, May 7 – TTM Technologies Inc. upsized its first-lien term loan for a second time and then made its way into the secondary market on Thursday, and Chemours Co., Leighton Services (LS Deco LLC), Quintiles Transnational Corp., eResearchTechnology Inc. and Black Knight InfoServ LLC began trading too.

In more happenings, TransDigm Inc. reworked its deal, opting for a new term loan E instead of a tack-on term loan D and adding a repricing of its term loan C to the mix, and Air Canada firmed the spread on its term loan at the low end of talk and cut the Libor floor.

Also, Sterigenics International Inc. and A. Schulman Inc. tightened spreads and original issue discounts on their term loan Bs, and Smart & Final Stores Inc. set pricing on its term loan at the high end of guidance while trimming the Libor floor.

Furthermore, At Home Holding III Inc. and Physiotherapy Associates released talk with launch, and Blue Coat Systems Inc. timing and structure emerged.

TTM upsizes, trades

TTM Technologies raised its six-year first-lien term loan to $950 million from a revised amount of $850 million and an initial amount of $775 million and eliminated plans for a seven-year second-lien term loan that had previously been downsized to $100 million from $175 million, according to a market source.

As before, pricing on the first-lien term loan is Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 96.5, and there is 101 soft call protection for one year.

Previously in syndication, the discount on the first-lien term loan was modified from the 95 area, the call protection was extended from six months, and amortization was changed to 1% in year one, 4% in year two and 5% thereafter, from 1% per annum.

With final terms in place, the first-lien term loan broke for trading in the afternoon, and levels were seen at 98½ bid, 99¼ offered, another source added.

TTM Buying Viasystems

Proceeds from TTM’s term loan will be used to help fund the acquisition of Viasystems Group Inc. and to refinance existing debt at both companies.

J.P. Morgan Securities LLC and Barclays are leading the deal.

Closing on the acquisition is expected this quarter, subject to regulatory approvals.

TTM Technologies is a Costa Mesa, Calif.-based printed circuit board manufacturer. Viasystems is a St. Louis-based provider of complex multi-layer printed circuit boards and electro-mechanical solutions.

Chemours starts trading

Chemours freed up for trading on Thursday, with the $1.5 billion seven-year covenant-light term loan B seen at par ¼ bid, par ¾ offered, according to a market source.

Pricing on the term loan B is Libor plus 300 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. There is 101 soft call protection for one year.

Recently, the spread on the B loan was flexed from Libor plus 325 bps, the discount was tightened from 99, and the call protection was extended from six months.

The company’s $2.5 billion senior secured credit facility (Ba1/BBB-) also includes a $1 billion revolver.

JPMorgan and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the company’s spinoff from E.I. DuPont de Nemours & Co.

Chemours’ businesses include titanium technologies based around the white pigment titanium dioxide, fluoroproducts and chemical solutions aimed at the gold production, oil refining, agriculture, industrial polymers and other industries.

Leighton tops OID

Leighton Services’ $350 million seven-year covenant-light term loan B broke as well, with levels quoted at par bid, par ¾ offered, according to a trader.

Pricing on the term loan B is Libor plus 450 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for six months.

The company’s A$359 million seven-year covenant-light term loan B is expected to allocate on Friday, a source remarked. This tranche is priced at BBSY plus 550 bps with no floor, was issued at a discount of 99 and has 101 soft call protection for six months.

During syndication, pricing on the U.S. term loan was flexed from Libor plus 475 bps, pricing on the Australian term loan was trimmed from BBSY plus 575 bps, the excess cash flow sweep, which opens at 50%, saw the step-down to 25% at 1.75 times net first-lien leverage revised from 2 times, and the EBIDTA definition was changed to add a 20% maximum cap on add-backs for calculation of EBITDA and a limitation of an 18-month horizon on those add-backs, versus no limit on restructuring add-backs originally.

Leighton getting revolver

Along with the U.S. and Australian term loans, Leighton Services’ A$900 million-equivalent senior secured credit facility (Ba2/BB+) includes a A$100 million five-year revolver.

Barclays, Credit Agricole, ANZ and Goldman Sachs are leading the deal that is being used to finance the recently completed formation of Leighton Services, a 50-50 investment partnership with Leighton Holdings and Apollo Global Management LLC for Leighton’s merged operations and maintenance services businesses, and to fund a letter-of-credit cash collateral facility.

Net first lien and net total leverage is 2 times.

Leighton Services is a provider of industrial and civil services to clients in Australia and New Zealand across telecom, roads, water, power, utilities and environmental sectors.

Quintiles hits secondary

Quintiles Transnational’s credit facility was another deal to emerge in the secondary, with the $600 million seven-year term loan B quoted at par 1/8 bid, par 5/8 offered, a trader said.

Pricing on the term loan B is Libor plus 250 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75. There is 101 soft call protection for six months.

The company’s $1.95 billion senior secured credit facility also includes a $500 million five-year revolver and an $850 million five-year term loan A.

The other day, the term loan B was upsized from $500 million and pricing was lowered from talk of Libor plus 275 bps to 300 bps, and the term loan A was upsized from $750 million.

Quintiles refinancing

Proceeds from Quintiles’ credit facility and $800 million of unsecured debt will be used to refinance existing bank debt and for general corporate purposes, including corporate transactions and equity repurchases. The extra funds from the recent term loan upsizings will be used to add cash to the balance sheet.

JPMorgan, Barclays, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, MUFG and PNC Bank are leading the deal.

Quintiles is a Durham, N.C.-based provider of biopharmaceutical development and commercial outsourcing services.

eResearch breaks

eResearchTechnology also freed to trade during the session, with the $490 million seven-year covenant-light term loan B seen at par bid, par ½ offered, a trader remarked.

The term loan B is priced at Libor plus 450 bps with a 1% Libor floor and was issued at a discount of 99.5. This debt has 101 soft call protection for six months.

During syndication, the term loan B was upsized from $465 million, pricing firmed at the low end of the Libor plus 450 bps to 475 bps and the discount was modified from 99.

The company’s $535 million credit facility (B2/B) also includes a $45 million revolver.

Jefferies Finance LLC and Citizens Capital Markets are leading the deal that will be used to fund the acquisition of PHT Corp., and as a result of the recent term loan upsizing, to fund a dividend.

eResearchTechnology is a Philadelphia-based provider of patient-centric endpoint data collection solutions for use in clinical drug development. PHT is a Boston-based collector and reporter of secure real-time patient data from mobile apps.

Black Knight frees up

Black Knight InfoServ’s credit facility began trading too, with the $400 million seven-year term loan B quoted at par 3/8 bid, par 7/8 offered and then it moved up to par ½ bid, 101 offered, according to a trader.

Pricing on the term loan B is Libor plus 300 bps with a step-down to Libor plus 275 bps at less than 2.5 times senior leverage and a 0.75% Libor floor, and the debt was sold at an original issue discount of 99.75. There is 101 soft call protection for six months.

During syndication, pricing on the term loan B was reduced from talk of Libor plus 325 bps to 350 bps, the step-down was added, and the discount was changed from 99.5.

The company’s $1.6 billion senior secured credit facility (Ba2/BB) also provides for a $400 million five-year revolver and an $800 million five-year term loan A.

Black Knight lead banks

JPMorgan, Bank of America Merrill Lynch, U.S. Bank and Wells Fargo Securities LLC are leading Black Knight’s credit facility.

Proceeds will be used to repay, in part, a mirror loan and intercompany loans from Fidelity National Financial Inc., the indirect parent of Black Knight InfoServ.

Closing is subject to the completion of the initial public offering of the class A common stock of Black Knight Financial Services Inc. and market conditions.

Black Knight is a Jacksonville, Fla.-based provider of integrated technology, services, data and analytics.

TransDigm modifies deal

Back in the primary, TransDigm has decided to pursue a new $1.04 billion seven-year term loan E talked at Libor plus 275 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, in place of getting a $450 million first-lien covenant-light tack-on term loan D due June 2021, according to a market source.

The tack-on term loan D had been talked at Libor plus 300 bps with a 0.75% Libor floor, in line with existing term loan D, a discount of 99.5 to 99.75 and 101 soft call protection through June.

Proceeds from the term loan E and $450 million of senior subordinated notes will be used to fund the acquisition of Pexco LLC’s aerospace business for about $496 million in cash and to replenish cash on the balance sheet, which is what the tack-on term loan D would have been used for, but now the company will also repay its $490 million term loan B due February 2017 that is priced at Libor plus 275 bps with a 0.75% Libor floor, the source said.

TransDigm repricing

In addition to the restructuring of its new debt, TransDigm told lenders on Thursday that it is now seeking to reprice its existing $2,553,000,000 term loan C due February 2020 to Libor plus 275 bps with a 0.75% Libor floor from Libor plus 300 bps with a 0.75% Libor floor, the source continued.

The repriced loan is offered at par and has 101 soft call protection for six months.

Credit Suisse Securities, Citigroup Global Markets Inc., Morgan Stanley Senior Funding, UBS AG, Barclays, RBC Capital Markets, Credit Agricole and HSBC Securities (USA) Inc. are leading the loan transactions.

Commitments are due at 2:30 p.m. ET on Friday, the source added.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components.

Air Canada changes emerge

Air Canada firmed pricing on its $300 million term loan B due Sept. 26, 2019 at Libor plus 325 bps, the tight end of the Libor plus 325 bps to 350 bps talk, and reduced the Libor floor to 0.75% from 1%, a source remarked.

The term loan B is still offered at par and has 101 soft call protection for six months.

Proceeds will be used to reprice an existing term loan B from Libor plus 450 bps with a 1% Libor floor.

Recommitments are due at noon ET on Friday, the source added.

The Montreal-based airline company’s $510 million senior secured credit facility also includes a $210 million revolver due Sept. 26, 2018.

Citigroup Global Markets is leading the deal that is expected to close during the week of May 11.

Sterigenics flexes

Sterigenics International trimmed pricing on its $1.05 billion seven-year term loan B to Libor plus 325 bps from talk of Libor plus 350 bps to 375 bps and moved the original issue discount to 99.75 from 99.5, a source said.

As before, the term loan B has a 1% Libor floor and 101 soft call protection for six months.

The company’s $1.2 billion credit facility (B1/B) also includes a $150 million five-year revolver.

Recommitments are due at noon ET on Friday, the source added.

JPMorgan, Barclays, Jefferies Finance and RBC Capital Markets are leading the deal that will be used with $450 million of senior notes to help fund the company’s recapitalization with Warburg Pincus and GTCR.

Closing is expected this quarter.

Sterigenics is an Oak Brook, Ill.-based provider of contract sterilization, gamma technologies and medical isotopes.

A. Schulman reworked

A. Schulman cut pricing on its $350 million seven-year term loan B and €145 million seven-year term loan B to Libor/Euribor plus 325 bps from talk of Libor/Euribor plus 350 bps to 375 bps, adjusted the original issue discount to 99.75 from 99.5 and extended the 101 soft call protection to one year from six months, according to market sources, who said the 0.75% floor was unchanged.

The company’s senior secured credit facility (Ba3/BB-) also includes a $300 million five-year revolver and a $200 million five-year term loan A.

JPMorgan and Bank of America Merrill Lynch are leading the deal that will be used with $375 million of senior notes to fund the acquisition of Citadel Plastics Holdings Inc. from HGGC and Charlesbank Capital Partners for $800 million.

Closing is expected in the third quarter, subject to standard conditions.

A. Schulman is an Akron, Ohio-based supplier of high-performance plastic compounds, powders and resins. Citadel is a Chicago-based specialty engineered plastics company.

Smart & Final updated

Smart & Final Stores set pricing on its roughly $595 million first-lien senior secured term loan B at Libor plus 325 bps, the high end of the Libor plus 300 bps to 325 bps talk, and lowered the Libor floor to 0.75% from 1%, a market source remarked.

The loan still has 101 soft call protection for six months.

Commitments were due by the end of the day on Thursday, the source added.

Morgan Stanley Senior Funding is leading the deal that will be used to reprice an existing roughly $595 million term loan from Libor plus 375 bps with a 1% Libor floor.

Smart & Final is a Commerce, Calif.-based warehouse-style, no membership fee, multi-format retailer serving households and smaller businesses.

At Home sets guidance

Also on the primary front, At Home Holding held its bank meeting on Thursday, launching its $300 million first-lien term loan B (B-) with talk of Libor plus 400 bps to 425 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

Bank of America Merrill Lynch and Jefferies Finance are leading the deal that will be used to pay down revolver borrowings and refinance notes.

At Home is a Dallas-based big box specialty retailer of home decor products.

Physiotherapy Associates talk

Physiotherapy Associates released price talk on its $175 million credit facility that launched with a bank meeting during the session, a source said.

The $25 million five-year revolver and $105 million six-year first-lien term loan are talked at Libor plus 475 bps with a 1% Libor floor and an original issue discount of 99, and the $45 million seven-year second-lien term loan is talked at Libor plus 875 bps to 900 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source continued.

Commitments for the second-lien term loan are due on May 19 and commitments for the first-lien debt are due on May 21.

GE Capital Markets is leading the deal that will be used to refinance existing debt.

Physiotherapy Associates is an Exton, Pa.-based provider of outpatient rehabilitation services and orthotics and prosthetics services.

Blue Coat on deck

Blue Coat Systems set a bank meeting for Monday to launch a $1.15 billion credit facility that will be used to help fund its previously announced buyout by Bain Capital LLC from Thoma Bravo LLC for about $2.4 billion, according to a market source.

The facility consists of a $100 million revolver and a $1.05 billion term loan, the source said.

Jefferies Finance is leading the deal.

Closing is expected in the first half of this year, subject to customary conditions, including requisite regulatory approvals.

Blue Coat is a Sunnyvale, Calif.-based web security company.

Veresen wraps

In other news, Veresen Midstream LP completed syndication of its $575 million term loan B repricing at initial talk of Libor plus 425 bps with a 1% Libor floor, according to a market source.

The repriced loan was offered at par and has 101 soft call protection through March 2016.

RBC Capital Markets, TD Securities (USA) LLC and HSBC Securities are leading the deal that will take the term loan B pricing down from Libor plus 500 bps with a 1% Libor floor.

Veresen Midstream is a midstream energy company.

Horizon Pharma closes

Horizon Pharma Inc. completed its acquisition of Hyperion Therapeutics Inc. for $46.00 per share in cash, or about $1.1 billion on a fully diluted basis, according to a news release.

To help fund the transaction, Horizon Pharma got a $400 million six-year senior secured covenant-light term loan B (Ba2/BB-) priced at Libor plus 350 bps with a 1% Libor floor and sold at an original issue discount of 99½. The debt has 101 soft call protection for six months.

During syndication, the term loan was downsized from $500 million as the company’s senior notes offering was upsized to $475 million from $300 million, the spread was lowered from Libor plus 400 bps, and the discount was tightened from 99.

Citigroup Global Markets and Jefferies Finance led the deal.

Horizon Pharma is a Dublin-based specialty biopharmaceutical company. Hyperion is a Brisbane, Calif.-based commercial-stage biopharmaceutical company.

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