AlliedUniversal breaks; RadNet, Linden Cogeneration, Strategic Partners updates surface

By Sara Rosenberg

New York, June 21 – AlliedUniversal’s (USAGM Holdco LLC) strip of incremental and delayed-draw first-lien term loan debt made its way into the secondary market on Tuesday with levels quoted above its original issue discount.

Moving to the primary market, RadNet Management Inc. finalized pricing on its term loan B at the wide end of guidance, Linden Cogeneration Power Complex (EFS Cogen Holdings I LLC) upsized its term loan B and firmed the spread at the tight end of talk, and Strategic Partners Acquisition Corp. increased the size of its term loan and reduced pricing.

Also, U.S. Security Associates disclosed price talk with launch, Internet Brands Inc. (MH Sub I LLC and Micro Holding Corp.) and MSHC Inc. (Service Logic) approached lenders with new deals, and Give & Go Prepared Foods Corp. joined this week’s primary calendar.

AlliedUniversal frees up

AlliedUniversal’s strip of $1.26 billion incremental first-lien term loan due July 28, 2022 and $250 million delayed-draw first-lien term loan due July 28, 2022 began trading on Tuesday, and levels were seen at 99¼ bid, 99¾ offered, according to a trader.

Pricing on the term debt is Libor plus 450 basis points 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.

Recently, the spread on the term loans firmed at the low end of the Libor plus 450 bps to 475 bps talk.

The company’s $1.68 billion of new loans (B2/B+) also includes a $170 million add-on revolver.

Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets and Societe Generale are leading the deal.

Allied/Universal merger

Proceeds from AlliedUniversal’s new bank debt will be used to fund the merger of AlliedBarton Security Services, a portfolio company of Wendel, and Universal Services of America, a portfolio company of Warburg Pincus and Partners Group, and to fund potential add-on acquisitions.

In exchange for its contribution of its shareholding in AlliedBarton, Wendel will receive about 33% of the shares of AlliedUniversal and a cash payment of around $387 million. Warburg Pincus will get about 33% of the shares of the combined company and Partners Group will have about 17%.

Closing is expected in the third quarter, subject to customary regulatory approvals.

AlliedBarton is a provider of security services. Universal Services is a Santa Ana, Calif.-based security company and a provider of janitorial solutions, as well as safety and emergency preparation services.

RadNet sets spread

Over in the primary market, RadNet firmed pricing on its $485 million seven-year term loan B at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, and left the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source remarked.

The company’s $585 million credit facility also includes a $100 million five-year revolver.

Barclays, SunTrust Robinson Humphrey Inc., Capital One, Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to refinance an existing $444.8 million first-lien term loan, pay down revolver borrowings and repay some of the existing $180 million second-lien term loan.

Closing is expected this month.

Net first-lien leverage is 3.5 times and net total leverage is 4.8 times.

RadNet is a Los Angeles-based owner and operator of outpatient diagnostic imaging centers.

Linden Cogeneration updated

Linden Cogeneration increased its seven-year first-lien term loan B to $1.05 billion from $1 billion and set pricing at Libor plus 425 bps, the tight end of the Libor plus 425 bps to 450 bps talk, a market source said.

As before, the term loan B has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s now $1,175,000,000 senior secured credit facility also includes a $125 million five-year revolver.

Commitments are due by noon ET on Wednesday, with allocations expected thereafter, the source added.

Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc., MUFG, GE, Investec and ICBC are leading the deal that will be used to recapitalize the borrower in connection with Ares EIF’s acquisition, to refinance Linden’s existing debt and to fund a debt service reserve account.

Linden Cogeneration is the owner of a natural gas-fired combined-cycle cogeneration project, located in Linden, N.J.

Strategic Partners revised

Strategic Partners raised its seven-year first-lien covenant-light term loan to $335 million from $325 million and trimmed pricing to Libor plus 525 bps from Libor plus 550 bps, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s now $380 million credit facility also includes a $45 million revolver.

Commitments were due on Tuesday, the source said.

UBS Investment Bank, Goldman Sachs & Co. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by New Mountain Capital.

Strategic Partners is a Chatsworth, Calif.-based designer and manufacturer of medical apparel and footwear and school uniforms.

U.S. Security releases talk

U.S. Security Associates held its bank meeting on Tuesday, launching its $450 million term loan B with talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source said.

The company’s $525 million credit facility (B2/B+) also includes a $75 million revolver.

Commitments are due at 5 p.m. ET on June 29, the source added.

Goldman Sachs & Co., KeyBanc Capital Markets and ING are leading the deal that will be used to refinance existing bank debt.

U.S. Security Associates is a Roswell, Ga.-based safety and security services company.

Internet Brands holds call

Internet Brands surfaced in the morning with plans to hold a lender call at 3 p.m. ET to launch $325 million in fungible first-lien term loans (B1/B) due July 8, 2021, split between a $175 million incremental term loan and a $150 million delayed-draw term loan with a 12 month availability period, according to a market source.

The term loans are talked at Libor plus 400 bps with a step-down at net first-lien leverage of 3.75 times, a 1% Libor floor and an original issue discount of 99.04, the source said.

Also, the debt has a ticking fee of the full spread plus the floor after 30 days.

The spread and floor on the new term debt matches existing first-lien term loan pricing, and the original issue discount will be paid at closing, not upon the delayed-draw term loan funding.

The El Segundo, Calif.-based provider of online media and software services must be in compliance with a 4.5 times net first-lien leverage test for the delayed-draw to fund.

Credit Suisse Securities (USA) LLC, KKR Capital Markets and RBC Capital Markets are leading the deal that will be used to fund a dividend, for future general corporate purposes and for future acquisitions.

Commitments are due on June 28, the source added.

MSHC launches

MSHC launched in the afternoon a $164.8 million five-year senior credit facility split between a $10 million revolver, a $103.4 million term loan and a $51.4 million delayed-draw term loan, according to a market source.

The term loans are talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

The delayed-draw term loan will be available for 18 months, with a 1.5% unused fee during that time.

Commitments are due on July 8 and closing is targeted for July 15.

Antares Capital is leading the deal that will be used with about $15 million of pre-placed mezzanine financing to refinance existing debt and fund add-on acquisitions.

MSHC, a portfolio company of Sterling Investment Partners, is a Denver-based heating, ventilation and air conditioning service provider

Give & Go readies loan

Give & Go Prepared Foods emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Thursday to launch a $375 million first-lien covenant-light term loan, a market source said.

Deutsche Bank Securities Inc., Antares Capital, BMO Capital Markets and HSBC Securities (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Thomas H. Lee Partners LP from OMERS Private Equity.

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

Give & Go is a Toronto-based manufacturer of value-added baked goods.

CIBT allocates

In other news, CIBT Holdings Inc. allocated its $327 million senior credit facility that includes a $217 million six-year U.S. term loan, a $30 million equivalent pound sterling six-year term loan, a $20 million equivalent euro six-year term loan, a $40 million 18-month delayed-draw six-year final maturity term loan and a $20 million five-year revolver, according to a market source.

Pricing on all of the term loans is Libor plus 525 bps with a 1% Libor floor, and they were sold at an original issue discount of 99. The debt has 101 soft call protection for six months and the delayed-draw term loan has a 1% unused fee during the delayed-draw period.

During syndication, the U.S. term loan was downsized from $227 million, the pound sterling term loan was upsized from $20 million and the spread on all of the term loans was reduced from Libor plus 550 bps.

Antares Capital is leading the deal that will be used to refinance existing debt and fund add-on acquisitions.

CIBT, an ABRY Partners portfolio company, is a McLean, Va.-based provider of travel document processing services.

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