Informatica, Internet break; Life Time, U.S. Shipping, ConvaTec, Technicolor, Dell updated

By Sara Rosenberg

New York, June 3 – Informatica Corp.’s credit facility emerged in the secondary market on Wednesday, with the U.S. dollar term loan B seen trading above par, and Internet Brands Inc.’s incremental first-lien term loan broke as well.

Moving to the primary market, Life Time Fitness Inc. (LTF Merger Sub Inc.) increased the size of its term loan B and reduced price talk, and U.S. Shipping Corp. lowered price talk on its first-lien term loan B and accelerated the commitment deadline as a result of strong demand.

Also, ConvaTec Inc. finalized pricing on its term loans at the low end of revised guidance and tightened issue prices, Technicolor (Tech Finance & Co. SCA) firmed the spreads on its term loans at the wide end of talk, updated original issue discounts and extended the call protection, and Dell Inc. upsized its U.S. and euro term loans while firming pricing at the wide end of talk.

Furthermore, Spectrum Brands Inc., Alere Inc. and Zep Inc. disclosed price talk with launch, and VAT and Lindblad Expeditions Inc. surfaced with new deal plans.

Informatica frees up

Informatica’s credit facility broke for trading on Wednesday, with the $1.71 billion U.S. dollar seven-year covenant-light term loan B quoted by one trader at 100½ bid, 100¾ offered, and by a second trader at 100 3/8 bid, 100 5/8 offered.

Pricing on the U.S. term loan B, as well as on a €250 million seven-year covenant-light term loan B, is Libor/Euribor plus 350 basis points with a 25 bps step-down at 6.25 times net total leverage and a 1% floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

During syndication, the U.S. term loan was upsized from a revised amount of $1,705,000,000, and before that it was lifted from $1,605,000,000 when the company’s bond offering was downsized to $650 million from $750 million, and prior to that it was downsized from $1,875,000,000 when the company added the euro term loan B to the capital structure.

Also in syndication, pricing on the U.S. and euro term loans was lowered from Libor/Euribor plus 375 bps, and the discount was tightened from 99.5.

Informatica getting revolver

In addition to the term loans, Informatica’s $2.13 billion senior secured credit facility (B2/B) includes a $150 million revolver.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities, Macquarie Capital (USA) Inc., Morgan Stanley Senior Funding, Nomura Securities International Inc., RBC Capital Markets and Deutsche Bank Securities are leading the deal.

Proceeds will be used with the bonds and about $2,542,000,000 in equity to fund the buyout of the company by Permira funds and Canada Pension Plan Investment Board for $48.75 in cash per share. The transaction is valued at $5.3 billion.

Closing is targeted for the second or third quarter, subject to shareholder and regulatory approval.

Informatica is a Redwood City, Calif., provider of enterprise data integration software and services.

Internet Brands starts trading

Internet Brands’ $175 million incremental first-lien term loan due July 8, 2021 hit the secondary too, with levels seen at 100¼ bid, 100¾ offered, a trader said.

Pricing on the loan, which was recently upsized from $100 million, is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection through July 2015.

The spread, floor and call protection on the incremental loan are in line with the company’s existing first-lien term loan.

Credit Suisse Securities, RBC Capital Markets and KKR Capital Markets are leading the deal that will be used for general corporate purposes.

The borrowers are MH Sub I LLC and Micro Holding Corp.

Internet Brands is an El Segundo, Calif.-based provider of vertically focused online media and software services.

Life Time reworks deal

Meanwhile, in the primary market, Life Time Fitness lifted its seven-year covenant-light term loan B to $1.25 billion from $1.1 billion as its senior notes offering was downsized to $450 million from $600 million, and modified price talk to Libor plus 325 bps to 350 bps from Libor plus 350 bps to 375 bps, a market source remarked.

As before, the term loan B has a 1% Libor floor and an original issue discount in the 99.5 area.

The company’s now $1.5 billion credit facility also includes a $250 million revolver.

Recommitments are due at 10:30 a.m. ET on Thursday, the source added.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies Finance LLC, BMO Capital Markets Corp., RBC Capital Markets LLC, Macquarie Capital (USA) Inc., Nomura and Mizuho are leading the deal.

Life Time being acquired

Proceeds from Life Time Fitness’ credit facility and bonds will be used with a $900 million sale leaseback to help fund its buyout by Leonard Green & Partners and TPG for $72.10 per share in cash. The transaction is valued at more than $4 billion.

Other key investors in the buyout include LNK Partners and Life Time Fitness chairman, president and chief executive officer Bahram Akradi, who will remain in his role and has committed to make a rollover investment of $125 million in common stock.

Closing is expected this month, subject to shareholder approval and other customary conditions.

Life Time Fitness is a Chanhassen, Minn.-based operator of sports, professional fitness, family recreation and spa destinations.

U.S. Shipping revises talk

U.S. Shipping trimmed price talk on its $215 million six-year first-lien term loan B (B2/B+) to Libor plus 450 bps to 475 bps from Libor plus 475 bps to 500 bps, while leaving the 1% Libor floor, original issue discount of 99 and 101 soft call protection for six months intact, according to a market source.

Along with the price talk change, the commitment deadline was moved up to 5 p.m. ET on Friday from Tuesday, the source said.

The company’s $255 million credit facility also includes a $10 million five-year revolver (B2/B+) and a $30 million seven-year second-lien term loan that was privately placed.

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

U.S. Shipping is an Edison, N.J.-based provider of long-haul marine transportation services, principally for refined petroleum products.

ConvaTec updates emerge

ConvaTec set pricing on its $800 million term loan and $850 million euro-equivalent term loan at Libor/Euribor plus 325 bps, the tight end of the revised Libor/Euribor plus 325 bps to 350 bps talk and down from initial talk of Libor/Euribor plus 350 bps to 375 bps, a market source said.

In addition, the original issue discount on the U.S. term loan was moved to 99.75 from 99.5 and the issue price on the euro term loan was changed to par from 99.5, the source continued.

The term loans have a 1% floor and 101 soft call protection for six months.

Along with the term loans, the company’s $1.85 billion credit facility (Ba2) includes a $200 million revolver due 2020.

Goldman Sachs, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance an existing credit facility and senior secured notes.

ConvaTec is a Luxembourg-based medical products and technologies company.

Technicolor sets terms

Technicolor finalized the repricing of its $763 million and €301 million term loans due July 10, 2020 at Libor/Euribor plus 400 bps, the high end of the Libor/Euribor plus 375 bps to 400 bps talk, firmed the original issue discount at 99.75 for everyone, compared to talk of 99.75 for existing lenders and 99.5 for new money, and pushed out the 101 soft call protection to one year from six months, according to a market source.

As before, the loans have a 1% floor.

The repricing is taking pricing on the loans down from Libor/Euribor plus 450 bps with a 1% floor.

Goldman Sachs and J.P. Morgan Securities LLC are leading the deal that is expected to close on Friday, with Goldman left on the U.S. debt and JPMorgan left on the euro debt.

Along with the repricing, the company is amending its credit facility to increase its investment capacity in joint-ventures, reduce restrictions on raising new debt, raise the gross debt to EBITDA financial covenant to 4 times from 3.5 times and lift the dividend payment basket to €150 million through June 2020.

Technicolor is a technology company focused on the media and entertainment sector.

Dell changes revealed

Dell increased its U.S. dollar term loan B-2 due April 29, 2020 to about $4.36 billion from $3 billion and its euro term loan due April 29, 2020 to €825 million from €622 million and set pricing on the tranches at Libor/Euribor plus 325 bps, the high end of the Libor/Euribor plus 300 bps to 325 bps talk, according to a market source.

The term loans still have a 0.75% floor, a discount of 99.75 and 101 soft call protection for six months.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., UBS AG and Goldman Sachs Bank USA are leading the deal that will be used to refinance a U.S. term loan B priced at Libor plus 350 bps with a 1% Libor floor, a euro term loan priced at Euribor plus 375 bps with a 1% floor and a term loan C priced at Libor plus 275 bps with a 1% Libor floor.

Dell is a Round Rock, Texas-based provider of technology and business products and services.

Spectrum releases talk

Also on the new deal front, Spectrum Brands held its lender call on Wednesday morning, and with the event, price talk on its U.S., euro and Canadian term loans was announced, according to a market source.

The $1.45 billion seven-year covenant-light term loan and the €300 million seven-year covenant-light term loan are talked at Libor/Euribor plus 275 bps to 300 bps with a 0.75% floor and an original issue discount of 99.5, and the C$75 million seven-year covenant-light term loan is talked at Libor plus 350 bps to 375 bps with a 0.75% floor and a discount of 99, the source said. All of the term loans have 101 soft call protection for six months.

The company’s new credit facility also includes a $500 million revolver.

Commitments are due at 5 p.m. ET on June 11.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal (BB) that will refinance an existing $400 million ABL revolver, about $1.58 billion of term loans and $300 million of 6.75% notes due 2020.

Spectrum Brands is a Middleton, Wis.-based diversified consumer products company.

Alere launches

Alere released price talk on its term loan A and term loan B in connection with its morning call and set a commitment deadline of June 10, a source said.

The $600 million five-year term loan A is talked at Libor plus 300 bps with an original issue discount of 99.5, and the $1.1 billion seven-year covenant-light term loan B is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, a discount of 99.5 and 101 soft call protection for six months, the source continued.

The company’s $1.95 billion credit facility (Ba3) also includes a $250 million five-year revolver.

Goldman Sachs Bank USA, GE Capital Markets, J.P. Morgan Securities LLC, RBC Capital Markets LLC, DNB, Citizens Bank and HSBC Securities (USA) Inc. are leading the deal that will be used to refinance existing debt.

Alere is a Waltham, Mass.-based provider of near-patient diagnosis, monitoring and health management.

Zep discloses guidance

Zep came out with talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $360 million seven-year term loan B that launched with a bank meeting during the session, a market source remarked.

The company’s $402.5 senior secured credit facility (B2/B+) also includes a $42.5 million five-year revolver.

Commitments are due on June 17, the source added.

Jefferies Finance LLC, KeyBanc Capital Markets Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used with $382.5 million in equity to fund the buyout of the company by New Mountain Capital LLC for $20.05 per share in cash. The transaction is valued at about $692 million, including net debt.

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

Zep is an Atlanta-based consumable chemical packaged goods company.

VAT on deck

VAT set a lender call for 11 a.m. ET on Thursday to launch a $344 million first-lien covenant-light term loan due 2021 that is talked at Libor plus 325 bps with a 1% Libor floor, an issue price of 99.75 to par and 101 soft call protection for one year, according to a market source.

Commitments are due on June 11, the source said.

Credit Suisse Securities (USA) LLC and UBS AG are leading the deal that will be used to reprice an existing term loan from Libor plus 375 bps with a 1% Libor floor.

The company’s credit facility also includes a CHF 30 million revolver.

VAT is a Sennwald, Switzerland-based vacuum valves company.

Lindblad readies loan

Lindblad Expeditions scheduled a bank meeting for 2 p.m. ET in New York on Monday to launch a $150 million seven-year first-lien term loan that is talked at Libor plus 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a source said.

Commitments are due at 5 p.m. ET on June 23, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to help fund the acquisition of the company by Capitol Acquisition Corp. II for around $439 million.

Lindblad Expeditions is a New York-based expedition cruising and extraordinary adventure travel company.

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