Indivior breaks; Research Now, Surgical Care updated; E.W. Scripps, Wabash modify deadlines

By Sara Rosenberg

New York, March 11 – Indivior plc’s credit facility made its way into the secondary market on Wednesday, with the U.S. term loan B seen trading above its original issue discount.

Switching to the primary, Research Now Group Inc. upsized its revolver and first-lien term loan B, tightened spreads and offer prices on its first- and second-lien term debt, and extended the call protection on the first-lien loan, and Surgical Care Affiliates Inc. firmed the original issue discount on its term loan at the tight end of revised guidance.

Also, E.W. Scripps Co. and Wabash National Corp. moved up the commitment deadlines on their loan deals, Hyperion Insurance Group Ltd. disclosed price talk with launch, Blackboard Inc. came to market with an add-on term loan B-3, and ViaWest emerged with new deal plans.

Indivior frees up

Indivior’s roughly $644 million U.S. 4¾-year term loan B broke for trading on Wednesday, with levels quoted at 94½ bid, 95½ offered, according to a trader.

Pricing on the U.S. term loan B, as well as on a €100 million 4¾-year term loan B, is Libor/Euribor plus 600 basis points with a 1% floor, and the debt was sold at an original issue discount of 94. There is 101 soft call protection for one year.

During syndication, pricing on the term B debt was increased from Libor/Euribor plus 575 bps, the discount widened from talk of 97 to 98, the call protection was extended from six months, the maturity was shortened from five years, the cap on add-backs to consolidated adjusted EBITDA was reduced and the incremental allowance was revised.

Indivior getting revolver

Indivior’s $800 million senior secured credit facility (B3/B) also includes a $50 million 4¾-year revolver that is priced at Libor plus 550 bps with no Libor floor.

The revolver also saw changes during syndication, including a bump in pricing from Libor plus 525 bps and a shortening of the maturity from five years.

Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to fund a dividend and for general corporate purposes.

Indivior is a Richmond, Va.-based specialty pharmaceutical company focused on addiction and related mental health disorders.

Research Now reworked

Over in the primary, Research Now lifted its first-lien term loan B to $265 million from $255 million, trimmed pricing to Libor plus 450 bps from Libor plus 500 bps, moved the original issue discount to 99½ from 99 and pushed out the 101 soft call protection to one year from six months, while keeping the 1% Libor floor intact, a market source remarked.

Additionally, pricing on the company’s $135 million second-lien term loan was lowered to Libor plus 875 bps from Libor plus 900 bps and the discount was modified to 98½ from 98, the source said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Another change made was that the company’s revolver was upsized to $40 million from $35 million.

Recommitments were due at the end of the day on Wednesday.

GE Capital Markets, Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey Inc. are leading the now $440 million credit facility that will be used with equity to fund the buyout of the company by Court Square Capital Partners from TA Associates, Polaris Partners, Sutter Hill Ventures and other shareholders.

Due to the upsizing to the bank deal, the amount of equity for the buyout was reduced, the source added.

Research Now is a Plano, Texas-based digital data collection provider.

Surgical Care sets OID

Surgical Care Affiliates finalized the original issue discount on its $450 million term loan at 99¾, compared to revised talk of 99½ to 99¾ and initial talk of 99, according to a market source.

As before, pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and there is 101 soft call protection for six months.

Recently, the term loan was upsized from $350 million as the company’s senior unsecured notes were downsized to $250 million from $350 million, and pricing was reduced from Libor plus 375 bps.

The company’s $700 million senior secured credit facility (B1/B+) also includes a $250 million revolver.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. leading the deal that will be used to refinance an existing credit facility and for general corporate purposes.

Closing is expected by the end of this quarter.

Surgical Care is a Deerfield, Ill.-based operator of surgical facilities.

E.W. Scripps shutting early

E.W. Scripps accelerated the commitment deadline on its fungible $200 million add-on term loan B to 5 p.m. ET on Friday from noon ET on Tuesday as the book is already in amazing shape, a market source remarked.

The add-on loan is talked at Libor plus 275 bps with a 0.75% Libor floor and an original issue discount of 99.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to facilitate the movement of broadcast assets into E.W. Scripps and newspaper assets into Journal Communications.

With the add-on, the company is repricing its existing roughly $200 million term loan B to Libor plus 275 bps with a 0.75% Libor floor from Libor plus 250 bps with a 0.75% Libor floor.

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

Wabash revises deadline

Wabash National changed the commitment deadline on its $192.8 million senior secured term loan (BB) due 2022 to noon ET on Friday from March 20, according to a market source.

The term loan is talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year.

Wells Fargo Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to repay an existing term loan due May 8, 2019.

Wabash is a Lafayette, Ind.-based diversified industrial manufacturer and a producer of semi-trailers and liquid transportation systems.

Hyperion reveals talk

Also in the primary, Hyperion Insurance held its bank meeting on Wednesday, launching its $725 million seven-year term loan B with talk of Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company also launched an £85 million five-year revolver with talk of Libor plus 425 bps with leverage-based step-downs, no Libor floor and an original issue discount of 99, the source said.

Commitments are due on March 25 with closing expected in April.

Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc. and RBC Capital Markets are the bookrunners on the senior secured credit facility (B1) and joint lead arrangers with Lloyds Securities Inc.

Proceeds will be used with equity to fund the acquisition of RK Harrison Holdings Ltd. and repay existing Hyperion debt.

Hyperion is a London-based insurance intermediary group. RK is a London-based insurance and reinsurance broker.

Blackboard holds call

Blackboard announced in the morning plans to hold a lender call at 2 p.m. ET on Wednesday to launch a fungible $75 million add-on term loan B-3 due Oct. 4, 2018, which was then upsized to $85 million in the afternoon, prior to the 4 p.m. ET commitment deadline, according to a market source.

The add-on (B+) is talked at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99.27, and will have 101 soft call protection for six months, which the existing term B-3 will get as well, the source said.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the acquisition of Schoolwires and for general corporate purposes.

As a result of the add-on upsizing, the amount of the company’s expected revolver draw was reduced.

Closing is subject to regulatory approval and other customary conditions.

Blackboard is a Washington, D.C.-based education technology company. Schoolwires is a State College, Pa.-based educational website, hosting and content management providers to K-12 schools and districts.

ViaWest on deck

ViaWest set a bank meeting for 10 a.m. ET on Thursday to launch a $450 million senior secured credit facility, a market source remarked.

The facility consists of a $75 million five-year revolver and a $375 million seven-year term loan B, the source continued.

TD Securities (USA) LLC and RBC Capital Markets are leading the deal that will be used to refinance existing debt.

ViaWest is a Greenwood Village, Colo.-based IT Infrastructure solutions company.

PetSmart closes

In other news, the buyout of PetSmart Inc. by a consortium led by BC Partners Inc. for $83.00 per share in cash, or about $8.7 billion, has been completed, a news release said.

To fund the transaction, PetSmart got a new $5.05 billion credit facility, consisting of a $750 million five-year asset-based revolver and a $4.3 billion seven-year senior secured covenant-light term loan B (Ba3/BB-), $1.9 billion of senior notes and about $2.3 billion of equity.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

During syndication, pricing on the B loan was reduced from revised talk of Libor plus 425 bps and initial talk of Libor plus 450 bps to 475 bps, and the discount was tightened from 99.

Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc., Nomura Securities International Inc., Jefferies Finance LLC, RBC Capital Markets and Macquarie Capital (USA) Inc. led the bank debt.

PetSmart is a Phoenix-based specialty pet retailer.

© 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.