Allison Transmission cancels amendment request; LPL firms spread; TaxACT reveals price talk

By Sara Rosenberg

New York, Nov. 19 – In primary happenings on Thursday, Allison Transmission Inc. withdrew the amendment request to its existing term loan B-3 and removed the proposed soft call protection from its add-on term loan B-3 that remained in market.

Also, LPL Financial Holdings Inc. finalized pricing on its incremental term loan and extension of its existing term loan B at the wide end of guidance.

In addition, TaxACT Holdings Inc. released price talk on its term loan B in connection with its launch, and ViaWest Inc. emerged with new loan plans.

Allison pulls amendment

Allison Transmission cancelled its proposed amendment for existing term loan B-3 lenders only to eliminate the term loan B-3 pricing grid step-up to Libor plus 275 basis points when total senior secured leverage is above 3.5 times, according to a market source.

As a result, lenders are no longer being offered a 12.5-bps amendment fee.

Following the news, the company’s existing term loan B-3 was unchanged in trading at 99¾ bid, 100¼ offered, a trader remarked.

Allison add-on

Although the amendment was withdrawn, Allison Transmission is still seeking a fungible $189 million add-on senior secured covenant-light term loan B-3 due Aug. 23, 2019 talked at Libor plus 250 bps with a 1% Libor floor and an original issue discount of 99.5, the market source continued.

However, lenders to the add-on and existing term loan B-3 are no longer being offered 101 soft call protection for six months, the source added.

Citigroup Global Markets Inc. is leading the add-on loan that will be used to refinance term loan B-2 debt due 2017.

Commitments were due at 5 p.m. ET on Thursday and closing is expected on Nov. 30.

Allison Transmission is an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems.

LPL sets pricing

LPL Financial finalized pricing on its $700 million incremental term loan (Ba3/BB-) due 2022 at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk, and left the 0.75% Libor floor, original issue discount of 99 and 101 soft call protection for one year unchanged, a source remarked.

Additionally, pricing on the extension of the company’s existing roughly $1.06 billion term loan B to March 2021 from March 2019 firmed at Libor plus 350 bps, the wide end of the Libor plus 325 bps to 350 bps talk, while the 0.75% Libor floor and 101 soft call protection for one year remained intact, the source continued.

Prior to the extension, term loan B pricing was Libor plus 250 bps with a 0.75% Libor floor.

Proceeds from the incremental term loan will be used to fund a share repurchase, to repay revolver borrowings and for general corporate purposes. The company’s share repurchase authorization was recently increased to $500 million.

LPL lead banks

J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch, Citizens Bank, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading LPL Financial’s term debt.

Along with the incremental term loan and extension, the company sought an amendment to its existing credit facility to provide for the new debt and modify the restricted payment provisions to enable execution of the full amount of the increased share repurchase authorization.

Existing lenders were offered a 25-bps fee to approve the amendment.

LPL Financial is a Boston-based investment company.

TaxACT comes to market

TaxACT launched on Thursday its $425 million credit facility (B1), comprised of a $25 million five-year revolver and a $400 million seven-year first-lien term loan B, according to a market source.

The term loan B is talked at Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99, the source added.

BMO Capital Markets Corp. is leading the deal that will be used with cash on hand to fund the acquisition of HD Vest Financial Services for about $580 million.

Closing is expected in late 2015 or early 2016, subject to customary conditions and regulatory approvals.

TaxAct, a subsidiary of Blucora Inc., is a Cedar Rapids, Iowa-based provider of digital and download tax preparation solutions. HD Vest is an Irving, Texas-based broker-dealer providing wealth management and advisory solutions specifically for tax professionals.

ViaWest on deck

ViaWest surfaced with plans to hold a lender call on Monday to launch a $170 million add-on term loan B, according to a market source.

RBC Capital Markets, TD Securities (USA) LLC and Citigroup Global Markets Inc. are leading the deal that will be used to fund the $162.5 million acquisition of INetU Inc. from BV Investment Partners and other shareholders.

Closing is expected by year-end, subject to customary conditions.

The company’s existing term loan B is priced at Libor plus 350 bps with a 1% Libor floor.

ViaWest is a Greenwood Village, Colo.-based IT Infrastructure solutions company. INetU is an Allentown, Pa.-based customer-centric cloud company.

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