First Data, Seahawk, Burlington, Utility One break; Avaya, Intralinks, Chassix set changes

By Sara Rosenberg

New York, Nov. 9 – First Data Corp.’s term loan freed to trade on Thursday above par, and deals from Seahawk Holdings (Dell Software), Burlington Stores Inc. and Utility One Source (UOS LLC) made their way into the secondary market as well.

Moving to the primary market, Avaya Inc. upsized its term loan and set pricing at the tight side of talk, Intralinks Holdings Inc. increased the size of its first-lien term loan and finalized spreads on the first-lien loan as well as on its second-lien term loan at the low end of guidance, and Chassix downsized its term loan B, widened the spread and original issue discount and adjusted the call protection.

Also, Weight Watchers International Inc., TransDigm Inc., ESH Hospitality Inc., Hostess Brands LLC, Clarivate Analytics (Camelot Finance LP), EagleClaw Midstream Ventures LLC, Southern Graphics Inc., Avolon, Western Express, Daseke Inc. and Valeant Pharmaceuticals International Inc. released price talk with launch.

First Data frees up

First Data’s $3,892,000,000 first-lien term loan due April 2024 broke for trading on Thursday, with levels quoted at par 1/8 bid, par 3/8 offered, according to a market source.

Pricing on the term loan is Libor plus 225 basis points with a 25 bps step-down subject to a Ba3 rating from Moody’s and no floor. The debt was issued at par and includes 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to reprice an existing term loan down from Libor plus 250 bps.

First Data is an Atlanta-based provider of payment processing solutions.

Seahawk hits secondary

Seahawk Holdings’ $650 million incremental first-lien term loan due October 2022 and repriced $1.32 billion first-lien term loan due October 2022 freed up as well, with levels seen at par 1/8 bid, par 7/8 offered, a market source said.

Pricing on the term loan debt is Libor plus 550 bps with a 1% Libor floor. The incremental term loan was sold at an original issue discount of 99.5, and the repricing was issued at par. The debt has 101 soft call protection for six months.

On Wednesday, the incremental term loan was upsized from $375 million and the spread finalized at the wide end of the Libor plus 525 bps to 550 bps talk.

Credit Suisse Securities (USA) LLC is the left lead bank on the deal (B2).

The incremental loan will be used to refinance preferred equity and, because of the upsizing, to repay an existing second-lien term loan, and the repricing will take the existing term loan down from Libor plus 600 bps with a 1% Libor floor.

Seahawk is a provider of integrated software, identity and management solutions and network security solutions.

Burlington tops OID

Burlington Stores’ $1,117,000,000 senior secured term loan (BB+) due 2024 also emerged in the secondary market, with levels quoted at 99 7/8 bid, par 3/8 offered, a trader remarked.

Pricing on the loan is Libor plus 250 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.75.

During syndication, the spread on the term loan firmed at the high end of the Libor plus 225 bps to 250 bps talk.

J.P. Morgan Securities LLC is leading the deal that will be used to repay an existing term loan B due 2021 that is priced at Libor plus 275 bps with a 0.75% Libor floor.

Burlington Stores is a Burlington, N.J.-based discount retailer.

Utility One firms, breaks

Utility One Source’s fungible $50 million incremental covenant-light first-lien term loan B (B2/B) due April 18, 2023 freed up at 102½ bid, 103½ offered after the issue price on the debt was set at 102.5, the tight end of the 102 to 102.5 talk, according to market sources.

Pricing on the loan is Libor plus 550 bps with a 1% Libor floor, and it is non-callable until April 18, 2018, then at 102 for one year.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and RBC Capital Markets LLC are leading the deal that will be used for general corporate purposes, including to support additional rental equipment investments.

Closing is expected during the week of Nov. 13.

Utility One is a Kansas City, Mo.-based provider of equipment and service solutions to the utility and infrastructure sectors.

Avaya revises loan

Avaya lifted its seven-year first-lien term loan to $2,925,000,000 from $2,425,000,000 and finalized pricing at Libor plus 475 bps, the low end of the Libor plus 475 bps to 500 bps talk, a market source said.

Ratings on the term loan are now B2//B+, revised from B1//BB-, the source said. The rating from Standard & Poor’s is private.

The term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months. In addition, the loan includes a ticking fee of half the margin from Dec. 16 through Jan. 9 and the full margin thereafter.

Recommitments were due at 3 p.m. ET on Thursday, the source added.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the company’s exit from Chapter 11. The funds from the term loan upsizing replaced plans for new second-lien notes.

The company has also received a commitment for a $300 million five-year senior secured asset-based facility that is expected at Libor plus 175 bps, subject to a grid based on average daily historical excess availability.

Avaya is a Santa Clara, Calif.-based business communications company.

Intralinks tweaks deal

Intralinks lifted its seven-year covenant-light first-lien term loan to $475 million from $450 million and set pricing at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, while leaving the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, according to a market source.

In addition, the company firmed pricing on its $150 million eight-year covenant-light second-lien term loan at Libor plus 800 bps, the tight end of the Libor plus 800 bps to 825 bps talk, the source said. This tranche still has a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

The company’s now $675 million of senior secured credit facilities also include a $50 million five-year revolver.

Recommitments were due at 5 p.m. ET on Thursday and allocations are expected on Friday, the source added.

Intralinks being acquired

Proceeds from Intralinks’ credit facilities will be used to help fund its buyout by Siris Capital Group LLC from Synchronoss Technologies Inc. for about $1 billion.

RBC Capital Markets, Golub Capital and Macquarie Capital are leading the financing.

Closing is expected in mid-November, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other foreign antitrust regulatory approvals.

Intralinks is a New York-based provider of cloud-based virtual data room and highly secure team collaboration solutions to financial institutions and enterprises.

Chassix reworked

Chassix cut its term loan B (B+) to $225 million from $320 million, raised pricing to Libor plus 550 bps from talk in the range of Libor plus 475 bps to 500 bps, widened the original issue discount to 98 from 99, changed the call protection to a hard call of 102 in year one and 101 in year two from a 101 soft call for six months, shortened the maturity to six years from seven years and eliminated the MFN sunset, a market source remarked.

The tem loan still has a 1% Libor floor.

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

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and fund a dividend. The size of the dividend payment was scaled back with the term loan downsizing.

Chassix is a Southfield, Mich.-based automotive supplier of precision casting and machining solutions.

Weight Watchers talk

Also in the primary market, Weight Watchers held its lender call on Thursday and launched its $1.39 billion seven-year term loan B at talk of Libor plus 375 bps to 400 bps with a 1% 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 $1.54 billion of credit facilities (Ba3/B) also include a $150 million revolver due 2022.

Commitments are due at noon ET on Nov. 17, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt.

Weight Watchers is a New York-based provider of weight management services.

TransDigm hosts call

TransDigm came out with plans to hold a lender call at 3 p.m. ET on Thursday to launch a fungible $798 million incremental term loan F due June 2023, a repricing of its existing $2,857,000,000 term loan F due June 2023 and a repricing of its existing $1,503,000,000 term loan E due May 2022, a market source said.

Talk on all of the term loan debt is Libor plus 275 bps with a 0% Libor floor and 101 soft call protection for six months, the source continued. The incremental loan is talked with an original issue discount of 99.875 and the repricings are offered at par.

Commitments are due at 5 p.m. ET on Nov. 16, the source added.

Credit Suisse Securities (USA) LLC is leading the deal (Ba2/B+).

The incremental loan will be used to refinance a term loan D, and the term loan F and term loan E repricings will take the existing loans down from Libor plus 300 bps with a 0.75% Libor floor.

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

ESH seeks repricing

ESH Hospitality launched without a call a $1,287,000,000 covenant-light term loan B due August 2023 talked at Libor plus 200 bps to 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Nov. 16 and closing is targeted for Nov. 21, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0% Libor floor.

ESH Hospitality is a subsidiary of Extended Stay America Inc., a Charlotte, N.C.-based owner/operator of company-branded hotels.

Hostess comes to market

Hostess Brands announced in the morning plans to hold a lender call at 2:30 p.m. ET to launch a $994 million first-lien term loan (B1/BB-) due August 2023 talked at Libor plus 225 bps with a 25 bps ratings-based step-down, a 0.75% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months, according to a market source.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan due August 2022 priced at Libor plus 250 bps with a 0.75% Libor floor.

Hostess is a Kansas City, Mo.-based sweet baked goods company.

Clarivate details emerge

Clarivate Analytics held its lender call in the morning, launching a $1,535,000,000 first-lien term loan due October 2023 at 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 remarked.

Commitments are due on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Clarivate, formerly known as Thomson Reuters’ Intellectual Property & Science (IP&S) business, is a Philadelphia-based provider of comprehensive intellectual property and scientific information, decision support tools and services.

EagleClaw terms surface

EagleClaw Midstream Ventures LLC launched on its call the repricing of its $1.25 billion term loan at talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Signatures/commitments are due at 5 p.m. ET on Nov. 16, the source added.

Jefferies LLC is leading the deal that will reprice the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

EagleClaw is a Midland, Texas-based midstream operator in the Permian’s Delaware Basin in West Texas.

Southern Graphics guidance

Southern Graphics revealed price talk on its $680 million in term loans that launched with a morning bank meeting, according to a market source.

Talk on the $480 million five-year covenant-light first-lien term loan (B1/B) and $80 million covenant-light first-lien delayed-draw term loan (B1/B) is Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.5, and talk on the $120 million six-year covenant-light second-lien term loan (Caa1/CCC+) is Libor plus 750 bps with a 0% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $755 million of credit facilities also provide for a $75 million revolver (B1/B).

Commitments are due at noon ET on Nov. 21, the source added.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt.

Southern Graphics is a Louisville, Ky.-based provider of design-to-print graphics services to the consumer products packaging industry.

Avolon repricing

Avolon launched in the morning a $498,750,000 senior secured term loan B-1 (Ba1/BBB-) due Sept. 30, 2020 at talk of Libor plus 175 bps with a 0% 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 Wednesday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B-1 down from Libor plus 225 bps with a 0% Libor floor.

Avolon is an Ireland-based provider of aircraft leasing and lease management services.

Western Express sets talk

Western Express held its lender meeting, launching its $250 million six-year term loan B (B+) at talk of Libor plus 575 bps to 600 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, according to a market source.

Commitments are due on Nov. 22, the source said.

BMO Capital Markets is leading the deal that will be used to refinance existing debt.

Western Express is a Nashville, Tenn.-based diversified truckload carrier.

Daseke holds call

Daseke surfaced in the morning with plans to hold a lender call at 2 p.m. ET to launch a $150 million incremental first-lien term loan due February 2024 and a repricing of its existing $349 million first-lien term loan due February 2024 talked at Libor plus 475 bps with a 1% Libor floor and 101 soft call protection for six months, according to a market source.

The incremental loan is talked with an original issue discount of 99.5 and the repricing is offered at par, the source said. Existing lenders are being offered a 25 bps amendment fee.

Commitments are due at 5 p.m. ET on Nov. 16, the source added.

Credit Suisse Securities (USA) LLC is leading the deal.

The incremental loan will be used to fund tuck-in acquisitions and the repricing will take the existing term loan down from Libor plus 550 bps with a 1% Libor floor.

Daseke is an Addison, Texas-based owner of open deck equipment and a transportation and logistics solutions company in the open deck trucking market.

Valeant launches

Valeant Pharmaceuticals held a call in the morning to launch a repricing of its series F term loan B due April 1, 2022 at talk of Libor plus 350 bps with a 0.75% 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 Tuesday, the source added.

Barclays is leading the deal that will reprice the existing term loan down from Libor plus 475 bps with a 0.75% Libor floor.

Before closing on the repricing, the company plans to pay down some of the term loan B debt with proceeds from the sale of $750 million of secured notes.

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

Office Depot closes

In other news, Office Depot Inc. completed its acquisition of CompuCom, according to a news release.

To help fund the transaction, Office Depot got a $750 million five-year senior secured term loan B (B1) priced at Libor plus 700 bps with a 1% Libor floor and sold at an original issue discount of 97. The debt has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the loan was increased from talk in the range of Libor plus 500 bps to 525 bps, the discount widened from 98.5, the call protection was changed from a 101 soft call for six months, amortization was sweetened to 10% per annum from 5% and the maturity was shortened from six years.

Also, the company eliminated the MFN sunset, the incremental starter basket and all grower baskets, changed the excess cash flow sweep, the general restricted payments basket and the general investment basket, added a springing minimum liquidity covenant, and expanded the collateral to include the company headquarters.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC led the deal for the Boca Raton, Fla.-based provider of office supplies and business products and services.

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