Synchronoss, Dynegy, Travelport, Petco, Berry, 1-800, Delos, Summit, Affinity, US LBM break

By Sara Rosenberg

New York, Jan. 13 – The secondary market saw a number of deals free up for trading on Friday, including Synchronoss Technologies Inc., Dynegy Inc., Travelport Finance (Luxembourg) Sarl, Petco Animal Supplies Inc., Berry Plastics Corp., 1-800 Contacts Inc. (CNT Holdings III Corp.), Delos Finance Sarl, Summit Materials LLC, Affinity Gaming and US LBM Holdings LLC.

Over in the primary market, Optiv Security Inc. moved some funds between its first- and second-lien term loans, reduced spread talk on the debt and tightened original issue discounts, and Zayo Group Holdings Inc. upsized its seven-year term loan and downsized its four-year term loan.

In addition, Charter Communications Inc. set the issue price on the repricing of its term loan E and term loan F at the tight end of guidance, Univar Inc. upsized its term loan B and firmed the spread at the low end of talk, and Genesys firmed pricing on its term loan B at the tight end of guidance.

Furthermore, Alliant Holdings Intermediate LLC released price talk on its term loan B in connection with its lender call, and Life Time Fitness Inc. (LTF Merger Sub Inc.), Samsonite International SA and TKC Holdings Inc. emerged with new deal plans.

Synchronoss hits secondary

Synchronoss Technologies’ credit facility also began trading, with the $900 million seven-year first-lien term loan B seen at par bid, 100½ offered, a market source said.

Pricing on the term loan B is Libor plus 275 basis points with no Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months and a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

On Thursday, pricing on the term loan B was lowered from talk of Libor plus 300 bps to 325 bps.

The company’s $1.15 billion senior secured credit facility (Ba3/BB-) also includes a $250 million five-year revolver.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets Inc., Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal.

Synchronoss funding acquisition

Proceeds from Synchronoss’ credit facility will be used to help finance the purchase of Intralinks Holdings Inc. for $13.00 per share or $821 million in equity value.

Other funds for the transaction will come from cash on hand and proceeds from the $146 million sale of a portion of Synchronoss’ activation business to Sequential Technology International LLC.

Closing is anticipated this quarter, subject to customary conditions, including regulatory approval.

Synchronoss Technologies is a Bridgewater, N.J.-based provider of managed mobility solutions for Service Providers and Enterprise. Intralinks is a New York-based content collaboration company that provides cloud-based solutions to control the sharing, distribution and management of high value content.

Dynegy breaks

Dynegy’s $2,224,000,000 senior secured covenant-light term loan C emerged in the secondary as well, with levels quoted at 100¼ bid, 100¾ offered, according to a trader.

Pricing on the term loan C is Libor plus 325 bps with a 1% Libor floor, and the debt has 101 soft call protection for six months. Of the total amount, $224 million is an upsize that was issued at an original issue discount of 99.75, after tightening from 99.5 on Thursday, and $2 billion is a repricing that was issued at par.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Barclays, Credit Agricole CIB, MUFG, RBC Capital Markets, Credit Suisse Securities (USA) LLC, UBS Securities LLC and BNP Paribas Securities Corp. are leading the deal.

The upsize to the term loan C will be used to refinance an existing term loan B due 2020, and the repricing will take the existing term loan C down from Libor plus 400 bps with a 1% Libor floor.

Dynegy is a Houston-based energy company.

Travelport levels emerge

Travelport’s $2,278,000,000 term loan B (B2/B+) due September 2021 broke, with levels quoted at 100¾ bid, 101¼ offered, according to a market source.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par. The debt includes 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that will reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Closing is targeted for Thursday.

Travelport is an Atlanta-based provider of transaction processing services to the travel industry.

Petco frees up

Petco’s $2,506,000,000 senior secured covenant-light term loan B-1 (B1/B) due Jan. 26, 2023 began trading, with levels seen at 100½ bid, 100¾ offered, a trader remarked.

Pricing on the term loan B-1 is Libor plus 325 bps with a 25 bps step-down when net first-lien leverage is 4 times and a 1% Libor floor, and it was issued at par. The loan has 101 soft call protection for six months.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Nomura and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice the company’s existing term loan B-1 and term loan B-2 and consolidate the debt into one term loan B-1 tranche.

Currently, the term loan B-1 is priced at Libor plus 400 bps with a 1% Libor floor, and term loan B-2 is priced at Libor plus 425 bps with no floor, and both tranches have a 25 bps step-down in pricing when first-lien leverage is 4 times.

Closing is targeted for Jan. 27.

Petco is a San Diego-based specialty retailer of pet food, supplies and services.

Berry joins secondary

Berry Plastics’ term loans broke in the afternoon, with the $1,894,750,000 term loan I due October 2022 quoted at 100½ bid, 100 7/8 offered and the $500 million seven-year term loan J quoted at 100½ bid, 101 offered, according to a market source.

Pricing on both term loans is Libor plus 250 bps with no Libor floor, and they were both issued at par. The debt has 101 soft call protection for six months.

During syndication, the issue price on the term loan J was tightened from 99.5.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Wells Fargo Securities LLC are leading the $2,395,000,000 of term loans (Ba3/BB).

The loans are expected to close during the week of Jan. 16.

Berry acquisition/repricing

Proceeds from Berry Plastics’ term loan J will be used to help fund the cash portion of the acquisition of AEP Industries Inc. and refinance existing first-lien term loans, and the term loan I will be used to reprice an existing term loan H from Libor plus 275 bps with a 1% Libor floor.

AEP is being purchased for either $110 in cash or 2.5011 shares of Berry common stock per AEP share, subject to an overall 50/50 proration to ensure that 50% of the total outstanding AEP shares are exchanged for the cash consideration. The transaction is valued at $765 million, including AEP’s net debt.

Other funds for the cash portion of the transaction will come from cash on hand.

Closing on the acquisition is subject to AEP shareholder approval and other customary conditions.

Berry is an Evansville, Ind.-based provider of value-added plastic consumer packaging and engineered materials. AEP is a Montvale, N.J.-based manufacturer of flexible plastic packaging films.

1-800 starts trading

1-800 Contacts’ $496 million covenant-light first-lien term loan (B1/B) due Jan. 22, 2023 was another deal to hit the secondary market, and levels were seen at 100 5/8 bid, 101 1/8 offered, a trader said.

Pricing on the loan is Libor plus 325 bps with a step-down to Libor plus 300 bps at 3.5 times net first-lien leverage and a 1% Libor floor. The debt was issued at par and includes 101 soft call protection for six months.

On Thursday, the pricing step-down was added to the loan.

Credit Suisse Securities (USA) LLC is leading the deal that will reprice the existing first-lien term loan down from Libor plus 425 bps with a 1% Libor floor.

1-800 Contacts is a Draper, Utah-based retailer of contact lenses.

Delos Finance breaks

Delos Finance’s $1.5 billion term loan (Baa3/BBB-/BBB-) due Oct. 6, 2023 also started trading, with levels quoted at 100¼ bid, 100¾ offered, according to a market source.

Pricing on the loan is Libor plus 225 bps with a 0.75% Libor floor, and the debt was issued at par, after tightening from 99.875 on Wednesday. There is 101 soft call protection for six months.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance an existing term loan due March 6, 2021.

Delos is a subsidiary of AerCap Holdings NV, a Dublin-based commercial aircraft leasing company.

Summit begins trading

Summit Materials’ $642 million term loan B freed to trade in the morning, with levels quoted at 100¼ bid, 100¾ offered and then it moved up to 100½ bid, 101 offered, a trader remarked.

Pricing on the loan is Libor plus 275 bps with a 0.75% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will reprice an existing term loan. At closing in 2015, the term loan B was priced at Libor plus 325 bps with a 1% Libor floor and a step-down to Libor plus 300 bps based on leverage.

Summit Materials is a Denver-based construction materials company.

Affinity tops OID

Affinity Gaming’s $328.5 million covenant-light first-lien term loan (B1/B+) due July 1, 2023 hit the secondary as well, with levels seen at 100¼ bid, 100¾ offered, according to a trader.

The term loan is priced at Libor plus 350 bps with a 1% Libor floor. Existing lenders are being given a 25-bps consent fee and new money was issued at an original issue discount of 99.75. Included in the loan is 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Fifth Third Bank and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice an existing first-lien term loan from Libor plus 400 bps with a 1% Libor floor.

Affinity Gaming is a Las Vegas-based diversified casino gaming company.

US LBM frees to trade

US LBM’s fungible $80 million incremental first-lien term loan (B3/B+) due Aug. 20, 2022 broke for trading, with levels quoted at par bid, 100½ offered, a trader remarked.

The incremental loan is priced at Libor plus 525 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and was sold at an original issue discount of 99, following a tightening from 98.75 on Thursday, The debt has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the acquisition of Ridout Lumber Co., a Searcy, Ark.-based lumber company chain.

US LBM is a Green Bay, Wis.-based owner of building material distribution businesses.

Optiv Security reworked

Moving to the primary market, Optiv Security increased its seven-year covenant-light first-lien term loan to $800 million from $750 million, trimmed pricing to Libor plus 325 bps from talk of Libor plus 400 bps to 425 bps and moved the original issue discount to 99.75 from 99, while keeping the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

As for the company’s eight-year covenant-light second-lien term loan, it was scaled back to $230 million from $280 million, price talk was reduced to a range of Libor plus 725 bps to 750 bps from talk at launch of Libor plus 850 bps, and the discount was modified to 99.5 from 98.5, the source said. This tranche still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $1.13 billion credit facility also includes a $100 million five-year ABL revolver.

Commitments were due at 3 p.m. ET on Friday, the source added.

Optiv being acquired

Proceeds from Optiv’s credit facility will be used to help fund its buyout by KKR from a group of private investors, including a private equity fund managed by Blackstone, which will maintain a minority interest in Optiv along with Optiv management. Other selling shareholders include Investcorp and Sverica.

Jefferies Finance LLC, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the new bank debt.

Closing is expected this quarter, subject to customary conditions.

Optiv is a Denver-based provider of end-to-end cyber security solutions.

Zayo restructures

Zayo Group trimmed its seven-year term loan to $2 billion from $2.1 billion and lifted its four-year term loan to $500 million from $400 million, according to a market source.

Pricing on the seven-year loan is Libor plus 250 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. This tranche has 50 bps MFN for life.

The four-year loan is priced at Libor plus 200 bps with no Libor floor and was issued at a discount of 99.75. Included in this loan is 100 bps MFN with an 18-month sunset.

Previously in syndication, the deal was modified from a $2.5 billion seven-year term loan B talked at Libor plus 275 bps with a 1% Libor floor and a discount of 99.75.

Zayo lead banks

Morgan Stanley Senior Funding Inc., Barclays, SunTrust Robinson Humphrey Inc., RBC Capital Markets, Citigroup Global Markets Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading Zayo’s term loans.

Proceeds will be used with $800 million of senior notes to fund the $1.42 billion acquisition of Electric Lightwave and to refinance an existing term loan B.

Closing is expected this quarter, subject to customary regulatory approvals and conditions.

Zayo is a Boulder, Colo.-based provider of communications infrastructure services. Electric Lightwave, formerly known as Integra Telecom, is a Vancouver, Wash.-based provider of infrastructure and telecom services.

Charter updated

Charter Communications finalized the issue price on its $1,448,000,000 term loan E due 2020 and $1,158,000,000 term loan F due 2021 at par, the tight end of the 99.875 to par talk, and left pricing at Libor plus 200 bps with no Libor floor, a market source said.

Bank of America Merrill Lynch is the left lead on the deal that will be used to reprice the company’s existing term loan E and term loan F down from Libor plus 225 bps with a 0.75% Libor floor.

Charter is a Stamford, Conn.-based broadband communications company and cable operator.

Univar revises loan

Univar raised its term loan B to $2.2 billion from $2,024,000,000 and finalized pricing at Libor plus 275 bps, the tight end of the Libor plus 275 bps to 300 bps talk, according to a market source.

As before, the loan has no Libor floor, a par issue price and 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan B from Libor plus 325 bps with a 1% Libor floor, and the funds from the upsizing will be used to repay some euro term loan B borrowings.

Univar is a Downers Grove, Ill.-based distributor of industrial and specialty chemicals.

Genesys sets pricing

Genesys firmed pricing on its $1,575,000,000 term loan B due 2023 at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, a market source remarked.

The loan still has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will be used to refinance an existing term loan B that closed late last year as a $1,558,000,000 tranche priced at Libor plus 525 bps with a 1% Libor floor, and includes 101 soft call protection for one year.

Genesys is a Daly City, Calif.-based provider of omnichannel customer experience and contact center solutions.

Alliant reveals talk

Also in the primary market, Alliant Holdings held its lender call on Friday, launching its $1,598,500,000 senior secured covenant-light term loan B due Aug. 14, 2022 with talk of Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments/consents are due at noon ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to roll the $278.6 million term loan B-2 priced at Libor plus 400 basis points with a 1% Libor floor into the $1,319,900,000 term loan B priced at Libor plus 350 bps with a 1% Libor floor, and reprice the debt.

Alliant Holdings is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Life Time readies loan

Life Time Fitness set a lender call for 2 p.m. ET on Tuesday to launch a repricing of its $1.33 billion covenant-light term loan B (B1/BB-) due June 2022 that is talked at Libor plus 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Jan. 24, the source said.

Deutsche Bank Securities Inc. is leading the deal that will reprice the existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Life Time Fitness is a Chanhassen, Minn.-based operator of sports, professional fitness, family recreation and spa destinations.

Samsonite on deck

Samsonite will hold a lender call at 10:30 a.m. ET on Tuesday regarding its $2,415,499,998 senior secured credit facility, a market source said.

The facility consists of a $500 million revolver, a $1,242,187,498 term loan A and a $673,312,500 term loan B, the source added.

Morgan Stanley Senior Funding Inc., HSBC Bank USA, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and MUFG are leading the deal.

Samsonite is a Hong Kong-based manufacturer of bags and luggage.

TKC joins calendar

TKC Holdings scheduled a bank meeting for Wednesday to launch a new credit facility that will include a revolver (B), a first-lien term loan (B) and a second-lien term loan (CCC+), according to a market source, who said tranche sizes are not yet available.

Jefferies Finance LLC and KKR Capital Markets are leading the deal, with Jefferies left on the first-lien and KKR left on the second-lien.

Proceeds will be used refinance existing debt and fund a distribution to shareholders.

TKC is a St. Louis-based provider of food service, personal care products, electronics, clothing, technology, telecommunications and software solutions to the corrections industry, and a provider of in-room coffee service to hotels and motels.

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