Atlantic Broadband, Parexel, Wilsonart, DuPage, Syncsort, Logix and more break for trading

By Sara Rosenberg

New York, Aug. 11 – Deals from Atlantic Broadband Finance LLC, Parexel International Corp., Wilsonart LLC, DuPage Medical Group, Syncsort Inc., Logix Communications, Sparta Systems Inc., Engility Corp. and General Communication Inc. all made their way into the secondary market on Friday.

Also, Innoviva Inc. lowered pricing on its term loan B and finalized the original issue discount at the tight side of guidance, Shutterfly Inc. set the spread on its delayed-draw term loan B at the high end of talk and revised the ticking fee, and Sensis (Project Sunshine IV Pty Ltd.) increased the size of its term loan B and firmed the issue price at the wide end of talk, and then these deals broke for trading too.

In more happenings, Sundial Brands LLC firmed the spread on its term loan B at the high side of talk, widened the original issue discount and extended the call protection, Russell Investments finalized pricing on its term loan at the tight end of guidance, and PRA Health Sciences Inc. came out with timing on the launch of its add-on term loan A.

Atlantic Broadband frees up

Atlantic Broadband’s credit facilities broke for trading on Friday, with the $1.7 billion seven-year covenant-light first-lien term loan quoted at par bid, par ¼ offered, according to a market source.

Pricing on the term loan is Libor plus 237.5 basis points with a 12.5 bps step-down at 4.85 times senior secured net leverage and a 0% Libor floor. The debt has 101 soft call protection for six months and was sold at an original issue discount of 99.75.

On Thursday, pricing on the term loan was reduced from talk of Libor plus 250 bps to 275 bps, the step-down was added, the discount was revised from 99.5 and ticking fees were specified as half the spread from days 31 to 90 and the full spread thereafter.

The $1.85 billion of credit facilities (B1/BB-) also include a $150 million revolver.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, CIBC and BMO Capital Markets are leading the deal that will be used with a $315 million equity investment from Caisse de depot et placement du Quebec to fund the acquisition of the MetroCast cable systems from Harron Communications LP for $1.4 billion.

Closing is expected in January 2018, subject to regulatory approvals and customary conditions.

Atlantic Broadband is a Quincy, Mass.-based cable operator.

Parexel tops OID

Parexel’s credit facilities surfaced in the secondary, with the $2,065,000,000 seven-year covenant-light term loan B quoted at par 1/8 bid, par ½ offered, a market source said.

Pricing on the term loan B is Libor plus 300 bps, after firming on Thursday at the tight end of the Libor plus 300 bps to 325 bps talk. The loan has a 0% Libor floor and 101 soft call protection for six months and was sold at an original issue discount of 99.5.

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

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 notes and equity to fund the buyout of the company by Pamplona Capital Management LLP for $88.10 per share in cash in a transaction valued at about $5 billion, including net 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.

Wilsonart hits secondary

Wilsonart’s $1,194,000,000 covenant-light term loan B due December 2023 began trading too, with levels seen at par ¼ bid, par ½ offered, according to a trader.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Thursday, pricing on the term loan was increased from Libor plus 300 bps.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., UBS Investment Bank, Goldman Sachs Bank USA and Barclays are leading the deal that will be used to reprice an existing term loan B down from Libor plus 350 bps with a 1% Libor floor.

Closing is expected on Thursday.

Wilsonart is a Temple, Texas-based engineered surfaces company.

DuPage Medical breaks

DuPage Medical Group’s bank debt freed up as well, with the $470 million seven-year first-lien term loan quoted at 99¾ bid, par offered before moving up to par bid, par ½ offered and the $150 million eight-year second-lien term loan quoted at par bid, par ½ offered before widening to par bid, 101 offered, market sources said.

Pricing on the first-lien term loan is Libor plus 300 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 700 bps with a 0.75% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

On Thursday, the first-lien term loan was upsized from $430 million and pricing was cut from Libor plus 375 bps, and the second-lien term loan was downsized from $190 million and pricing was lowered from Libor plus 775 bps.

Credit Suisse Securities (USA) LLC, Barclays, Nomura, Citizens Bank and Citigroup Global Markets Inc. are leading the $620 million in term loans that will be used for acquisition financing and to refinance existing debt.

DuPage is a Downers Grove, Ill.-based multi-specialty physician group.

Syncsort starts trading

Syncsort’s bank debt hit the secondary market, with the $610 million seven-year covenant-light first-lien term loan seen at 99¼ bid, 99¾ offered and the $180 million eight-year covenant-light second-lien term loan seen at 99 bid, par offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor, and it was sold at an original issue discount of discount of 99. The debt has 101 soft call protection for one year.

The second-lien term loan is priced at to Libor plus 900 bps with a 1% Libor floor and was issued at a discount of 98.5. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $590 million, pricing widened from Libor plus 475 bps and the call protection was extended from six months, and the second-lien term loan was downsized from $200 million and pricing was raised from Libor plus 875 bps.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Antares Capital, Golub Capital, Jefferies LLC and SunTrust Robinson Humphrey Inc. are leading the $790 million in term loans.

Syncsort being acquired

Proceeds from Syncsort’s term loans will be used to help fund its acquisition and the acquisition of Vision Solutions Inc. by Centerbridge Partners LP from Clearlake Capital Group LP and the merger of the two companies.

The transaction is valued at $1.26 billion.

Clearlake is retaining a minority ownership stake.

Closing is expected in the third quarter, subject to regulatory approval and other conditions.

Pearl River, N.Y.-based Syncsort and Irvine, Calif.-based Vision Solutions are enterprise software providers. The merged company will operate under the Syncsort name and be based in Pearl River, N.Y.

Logix frees to trade

Another deal to break was Logix Communications, with its $250 million covenant-light term loan B quoted at par 5/8 bid, 101 1/8 offered, according to a market source.

Pricing on the term loan is Libor plus 575 bps with a 1% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan finalized at the midpoint of the Libor plus 550 bps to 600 bps talk, a covenant was added and the MFN sunset was eliminated.

The company’s $270 million of credit facilities (B2/B) also include a $20 million revolver.

SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC and Brightwood are leading the deal that will be used to help fund the acquisition of Alpheus Communications from the Gores Group and Scott Widham.

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

Logix is a Houston-based fiber-optic bandwidth infrastructure services provider. Alpheus is a Houston-based provider of metro-regional fiber, data center and managed network solutions.

Sparta emerges in secondary

Sparta Systems’ credit facilities also freed up, with the $240 million seven-year first-lien term loan (B2/B-) quoted at par bid, par ¾ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps at 0.5 times inside of closing first-lien leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99.75 and 101 soft call protection for six months.

During syndication, pricing on the first-lien term loan was reduced from Libor plus 425 bps, the step-down was added and the discount was tightened from 99.5.

The company’s $340 million of senior secured credit facilities also include a $25 million revolver (B2/B-) and a $75 million privately placed eight-year second-lien term loan (CCC).

Jefferies LLC, Ares and BMO Capital Markets are leading the deal that will be used to help fund the buyout of Sparta Systems by New Mountain Capital LLC from Thoma Bravo LLC, which will retain a minority stake in the company.

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

Sparta Systems is a Hamilton N.J.-based provider of quality management system software to the pharmaceutical, medical device and CPG industries.

Engility levels surface

Engility’s loans started trading, with the $185 million term loan B-1 due Aug. 12, 2020 quoted at par 3/8 bid, par 7/8 offered and the $579 million term loan B-2 due Aug. 12, 2023 quoted at par ½ bid, 101 offered, a trader said.

Pricing on the term loan B-1 is Libor plus 275 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

The term loan B-2 is priced at Libor plus 325 bps, after firming on Thursday at the high end of the Libor plus 300 bps to 325 bps talk. This tranche has a 1% Libor floor and 101 soft call protection for six months, and was issued at par.

Morgan Stanley Senior Funding Inc., KKR Capital Markets LLC, Barclays, SunTrust Robinson Humphrey Inc., Regions Capital Markets, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the $764 million of senior secured loans that will reprice an existing term B-1 from Libor plus 325 bps with a 0% Libor floor and an existing term B-2 from Libor plus 375 bps with a 1% Libor floor.

Closing is expected during the week of Aug. 14.

Engility is a Chantilly, Va.-based provider of integrated services for the U.S. government.

GCI above par

General Communication’s $244 million term loan B began trading, with levels seen at par 1/8 bid, par 5/8 offered, a trader remarked.

Pricing on the loan is Libor plus 225 basis points with a 0% Libor floor and a par issue price.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 300 bps with a 0.75% Libor floor.

General Communication is an Anchorage-based telecommunications provider.

Innoviva flexes, breaks

Innoviva trimmed pricing on its $250 million five-year covenant-light senior secured term loan B (Ba3/BB) to Libor plus 450 bps from talk of Libor plus 475 bps to 500 bps and set the original issue discount at 99, the tight end of the 98 to 99 talk, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at 10:30 a.m. ET on Friday and then in the afternoon, the term loan B hit the secondary market with levels quoted at 99½ bid, par ½ offered, a trader added.

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.

Closing is expected during the week of Aug. 14.

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

Shutterfly tweaked, trades

Shutterfly set pricing on its $300 million delayed-draw seven-year term loan B at Libor plus 250 bps, the high end of the Libor plus 225 bps to 250 bps talk, changed the ticking fee to half the margin from days 31 to 60 and the full margin plus the greater of Libor or Libor floor thereafter, from half the margin from days 46 to 90 and the full margin thereafter, and removed the MFN sunset, a market source remarked.

The covenant-light term loan B still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $500 million of senior secured credit facilities (Ba3/BB+) also include a $200 million five-year revolver priced at Libor plus 175 bps with 0% Libor floor.

With final terms in place, the term loan B started trading and levels were seen at 99¾ bid, par ¼ offered, a trader added.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp., MUFG, U.S. Bank and Wells Fargo Securities LLC are leading the deal that will be used for general corporate purposes including to refinance existing $300 million convertible notes due May 2018.

Shutterfly, a Redwood City, Calif.-based online retailer and manufacturer of high-quality personalized products and services, expects to close on the credit facilities on Thursday.

Sensis revised, tops OID

Sensis raised its term loan B to $250 million from $225 million and finalized the original issue discount at 98.5, the wide end of the 98.5 to 99 talk, a market source said.

Pricing on the loan is still at Libor plus 700 bps with a 1% Libor floor, and the debt still has 101 soft call protection for six months.

By late afternoon, the term loan B freed up at 99 bid, a trader added.

Bank of America Merrill Lynch is the left lead on the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Sensis is a provider of local search and digital marketing solutions to Australian businesses.

Sundial sets changes

In other news, Sundial Brands firmed pricing on its $280 million seven-year term loan B at Libor plus 475 bps, the high end of the Libor plus 450 bps to 475 bps talk, moved the original issue discount to 98.5 from talk of 99 to 99.5 and extended the 101 soft call protection to one year from six months, a market source remarked.

As before, the term loan has a 1% Libor floor.

The company’s $315 million of senior secured credit facilities (B3/B-) also include a $35 million five-year revolver.

Goldman Sachs Bank USA, KeyBanc Capital Markets, UBS Investment Bank and J.P. Morgan Securities LLC are leading the deal that will be used to refinance existing debt, fund a distribution to shareholders and pay related fees and expenses.

Closing is expected on Tuesday.

Sundial Brands is an Amityville, N.Y.-based beauty company.

Russell firms spread

Russell Investments finalized pricing on its $843 million term loan B (Ba2/BB/BB) due June 1, 2023 at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source said.

Barclays is leading the deal that will be used to reprice an existing term loan from Libor plus 575 bps with a 1% Libor floor.

Russell Investments is a Seattle-based asset manager.

PRA readies call

PRA Health Sciences set a bank call for Thursday to launch its previously announced $550 million senior secured add-on term loan A, according to a market source.

PNC Bank is leading the deal that will be used to fund the acquisition of Symphony Health Solutions Corp., a Conshohocken, Pa.-based provider of data, analytics and consulting solutions to the life sciences market, from Symphony Technology Group for $530 million in cash.

Closing is expected in the third quarter, subject to regulatory clearances and other customary conditions.

PRA is a Raleigh, N.C.-based clinical research organization.

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