TransDigm dips with new loan launch; Valeant rises; United Site, Constellis set changes

By Sara Rosenberg

New York, Aug. 8 – TransDigm Inc. saw its terms loans soften in trading on Tuesday with the launch of a new term loan G, and Valeant Pharmaceuticals International Inc. was stronger after the release of second quarter numbers.

Moving to the primary market, United Site Services increased its first-and second-lien term loan sizes, trimmed spreads, added a step-down and tightened the original issue discount on the second-lien tranche, and Constellis Holdings LLC upsized its incremental term loan.

In addition, Innoviva Inc., ATI Holdings Acquisition Inc. and BBB Industries LLC moved up the commitment deadlines on their term loans.

Also, Parexel International Corp., E.W. Scripps Co. and Curo Health Services Holdings Inc. disclosed talk with launch, and Eastern Power LLC, Affinity Gaming, Grosvenor Capital Management, A Wireless and RentPath Inc. emerged with new deal plans.

TransDigm loans weaken

TransDigm’s term loans headed lower in the secondary market after news surfaced that the company would be holding a lender call at 1 p.m. ET to launch a $1.8 billion seven-year first-lien term loan G (Ba2/B+) talked at Libor plus 300 basis points with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to market sources.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan C and fund a shareholder distribution.

Post news, the company’s term loan F was quoted in trading at par 1/8 bid, par 3/8 offered, down from par ½ bid, par ¾ offered, the term loan D and term loan E were quoted at par 1/8 bid, par 3/8 offered, down from par 3/8 bid, par 5/8 offered, and the term loan C was quoted at 99¾ bid, par offered, down from par 1/8 bid, par ½ offered, sources said.

One source explained that trading levels on the existing F, D and E loans came down a bit because of the discount offered on the new term loan G.

Commitments for the term loan G are due at 5 p.m. ET on Aug. 15, and the company is offering consenting term loan D, term loan E and term loan F lenders a 12.5 bps amendment fee.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for use on commercial and military aircraft.

Valeant gains ground

Valeant Pharmaceuticals’ term loan F moved up to 101 7/8 bid, 102¼ offered from 101¾ bid, 102 1/8 offered following the company’s second quarter earnings announcement, traders remarked.

For the second quarter, the company reported a net loss of $38 million, or $(0.11) per diluted share, compared to a net loss of $302 million, or $(0.88) per diluted share, in the previous year.

Also, total revenues for the quarter were $2.23 billion, versus $2.42 billion in the second quarter of 2016, and adjusted EBITDA was $951 million, compared to $1.09 billion in the prior year.

The company also updated full-year 2017 revenues guidance to a range of $8.7 billion to $8.9 billion from a range of $8.9 billion to $9.1 billion to reflect the impact of the sale of the CeraVe, AcneFree and AMBI skincare brands and the sale of Dendreon Pharmaceuticals LLC.

Full-year adjusted EBITDA guidance was confirmed in the range of $3.6 billion to $3.75 billion.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

BWIC surfaces

A $123 million loan Bid Wanted In Competition emerged, with bids due at 10:30 a.m. ET on Wednesday, according to a trader.

Some of the names in the portfolio are Allied Universal, CenturyLink, Charter Communications Operating LLC, Federal-Mogul Corp., Riverbed Technology Inc., Virtu Financial and Windstream Corp.

There are about 73 issuers in the BWIC, the trader added.

United Site reworked

Switching to the primary market, United Site Services lifted its seven-year covenant-light first-lien term loan to $487 million from $475 million, cut pricing to Libor plus 375 bps from Libor plus 450 bps and added a 25 bps step-down when corporate ratings are B2/B, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

Additionally, the company upsized its eight-year covenant-light second-lien term loan to $293 million from $280 million, trimmed pricing to Libor plus 775 bps from Libor plus 850 bps, added a 25 bps step-down when corporate ratings are B2/B, and tightened the original issue discount to 99 from 98.5, the source said. This tranche still has hard call protection of 102 in year one and 101 in year two.

Commitments are due at 10 a.m. ET on Thursday, moved up from noon ET on Aug. 16.

The company’s now $865 million of credit facilities also include an $85 million ABL revolver.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Jefferies LLC and Deutsche Bank Securities Inc. are leading the deal that will be used with equity to fund the buyout of the company by Platinum Equity from Calera Capital, to refinance existing debt, and, due to the upsizings, to add cash to the balance sheet.

United Site Services is a Westborough, Mass.-based provider of portable restrooms, temporary fence and related site services.

Constellis tweaks size

Constellis raised its incremental first-lien term loan due April 2024 to $120 million from $95 million, a market source said.

As before, the incremental term loan is priced at Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99 and has 101 soft call protection through April 2018.

Spread, floor and call protection on the incremental loan matches the existing term loan.

Commitments were due at 5 p.m. ET on Tuesday.

Credit Suisse Securities (USA) LLC, Barclays and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of Omniplex World Services Corp. from Altamont Capital Partners, and due to the upsizing, for general corporate purposes, the source added.

Closing is expected this month, subject to Defense Security Service review and other conditions.

Constellis is a Reston, Va.-based provider of operational support and risk management services to government and commercial clients. Omniplex is a Chantilly, Va.-based provider of protective and investigative services.

Innoviva accelerated

Innoviva moved up the commitment deadline on its $250 million five-year covenant-light senior secured term loan B to 5 p.m. ET on Thursday from Aug. 15, according to a market source.

Talk on the term loan B is Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 98 to 99 and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are leading the deal that will be used to refinance the company’s 2029 non-recourse notes.

Innoviva is a Brisbane, Calif.-based biopharmaceutical company.

ATI revises deadline

ATI Holdings’ accelerated the commitment/consent deadline on its $758 million term loan B due May 10, 2023 to 5 p.m. ET on Tuesday from noon ET on Wednesday, a market source said.

Price talk on the loan is Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Barclays, Jefferies LLC and HSBC Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 450 bps with a 1% Libor floor.

Advent International is the sponsor.

ATI is a Bolingbrook, Ill.-based outpatient physical therapy provider.

BBB updates timing

BBB Industries accelerated the commitment deadline on its $438 million term loan B to noon ET on Thursday from noon ET on Monday, a market source remarked.

Talk on the loan is Libor plus 450 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Nomura is leading the deal that will be used to reprice an existing term loan B from Libor plus 500 bps with a 1% Libor floor.

BBB is a Daphne, Ala.-based remanufacturer of automotive products for the North American aftermarket.

Parexel releases talk

Parexel International held its bank meeting on Tuesday, launching its $2,065,000,000 seven-year covenant-light term loan B at talk of Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $2,365,000,000 of senior secured credit facilities (B1/B) also include a $300 million five-year revolver.

Commitments are due at noon ET on Friday, the source said.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Barclays, Morgan Stanley Senior Funding Inc. HSBC Securities (USA) Inc. and Jefferies LLC are leading the deal that will be used with $720 million in notes and $2.7 billion of equity to fund the buyout of the company by Pamplona Capital Management LLP for $88.10 per share, or about $5 billion including net debt, and refinance existing debt.

Pro forma for the transaction senior secured leverage will be 5 times and total leverage will be 6.75 times based on March 31 LTM pro forma adjusted EBITDA of $413 million. Net senior secured leverage is 4.3 times and net total leverage is 6.1 times based on a closing cash balance of $284 million.

Closing is expected in late September, subject to shareholder approval and other conditions.

Parexel is a Waltham, Mass.-based biopharmaceutical services company.

E.W. Scripps sets guidance

E.W. Scripps came out with price talk of Libor plus 225 bps with no Libor floor and an original issue discount of 99.5 on its $250 million seven-year term loan B (BB+) that launched with an afternoon call, a market source remarked.

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

Commitments are due at 1 p.m. ET on Aug. 18.

Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are leading the deal that will be used with about $50 million of cash on hand to fund the acquisition of Katz broadcasting networks for $302 million or a net purchase price of $292 million after accounting for its 5% ownership position in a portion of the business.

Closing is expected on Oct. 2, subject to Hart-Scott-Rodino clearance and customary conditions.

Net secured leverage is 0.9 times and net total leverage is 3.4 times.

E.W. Scripps is a Cincinnati-based broadcasting company.

Curo holds call

Curo Health Services hosted a lender call at 10 a.m. ET to launch a $15 million add-on term loan B due February 2022 and a repricing of its existing $431 million term loan B due February 2022 that are talked at Libor plus 400 bps to 425 bps with a 1% Libor floor and 101 soft call protection for six months, according to a market source.

Original issue discount talk for new money is 99.75 and the repricing is offered at par, the source said.

Commitments are due at 5 p.m. ET on Monday.

Goldman Sachs Bank USA is leading the deal.

The repricing will take the existing term loan down from Libor plus 475 bps with a 1% Libor floor.

Curo Health is a Mooresville, N.C.-based pure play hospice provider.

Eastern Power repricing

Also in the primary market, Eastern Power will hold a lender call at 10 a.m. ET on Wednesday to launch a repricing of its 1,636,716,543 senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal.

Eastern Power is an owner of gas-fired electric generating stations.

Affinity coming soon

Affinity Gaming set a bank meeting for 2:30 p.m. ET on Wednesday to launch $225 million in term loans, a market source said.

The debt is split between a $125 million incremental first-lien term loan B and a $100 million second-lien term loan, the source added.

Jefferies LLC is leading the deal that will be used to refinance the company’s existing second-lien term loan and to fund a future dividend.

The use of proceeds is subject to regulatory approval.

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

Grosvenor readies deal

Grosvenor Capital Management scheduled a lender call for 1 p.m. ET on Wednesday to launch a fungible $75 million add-on first-lien term loan due August 2023 priced at Libor plus 300 bps with a 1% Libor floor, in line with existing term loan pricing, according to a market source.

Original issue discount talk on the add-on term loan is still to be determined, the source said.

Goldman Sachs Bank USA and UBS Investment Bank are leading the deal.

Grosvenor Capital is a Chicago-based independent alternative asset management firm.

A Wireless joins calendar

A Wireless will hold a lender call for 3 p.m. ET on Wednesday to launch a $50 million incremental term loan, a market source said.

UBS Investment Bank is leading the deal that will be used to fund a dividend.

A Wireless is an exclusive national authorized retailer for Verizon Wireless with corporate offices in Greenville, N.C., and Eden Prairie, Minn.

RentPath on deck

RentPath set a lender call for 10 a.m. ET on Wednesday to launch a repricing of its existing first-lien term loan, a market source remarked.

RBC Capital Markets is leading the transaction.

RentPath is an Atlanta-based vertical search company for apartment and home renters.

Neustar buyout closes

In other news, the acquisition of Neustar Inc. by Golden Gate Capital for $33.50 per share in cash has been completed, according to a news release.

To help fund the transaction, Neustar got $1.65 billion in term loans, split between a $350 million 2.5-year first-lien term loan B-1, a $975 million seven-year first-lien term loan B-2 and a $325 million eight-year second-lien term loan.

Pricing on the term loan B-1 is Libor plus 325 bps with a 0% Libor floor and it was issued at par, pricing on the term loan B-2 is Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99.5, and pricing on the second-lien term loan is Libor plus 800 bps with a 1% Libor floor and it was issued at a discount of 98.5. The B-1 and B-2 loans have 101 soft call protection for six months, and the second-lien loan has hard call protection of 102 in year one and 101 in year two.

Neustar lead banks

Bank of America Merrill Lynch, UBS Investment Bank, Jefferies Finance LLC, Credit Suisse Securities (USA) LLC, Mizuho, Societe Generale and Angel Island Capital led Neustar’s term loans, with Bank of America left lead on the first-lien debt and UBS left lead on the second-lien loan.

During syndication, the issue price on the term loan B-1 was tightened from 99.5, and the term loan B-2 was upsized from $950 million while the spread firmed at the low end of the Libor plus 375 bps to 400 bps talk, and the discount was set at the tight end of the 99 to 99.5 talk. Also, the second-lien term loan was downsized from $350 million as the spread finalized at the low end of the Libor plus 800 bps to 850 bps talk, and the discount firmed at the wide end of the 98.5 to 99 talk, and the MFN on the loans was changed to 50 bps for 18 months from 75 bps for 12 months.

Neustar is a Sterling, Va.-based provider of real-time information services.

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