Birch Communications, TeamViewer, TriNet break; Tensar, Iglo Foods updates surface

By Sara Rosenberg

New York, July 3 – Birch Communications Inc.’s credit facility made its way into the secondary market on Thursday with the term loan quoted above its original issue discount, and TeamViewer and TriNet HR Corp. freed up as well.

Moving to the primary market, Tensar increased the size of its first-lien term loan while finalizing the spread at the low end of talk and decreased the size of its second-lien term loan as pricing firmed at the wide end of talk, and Iglo Foods Midco Ltd. set pricing on its euro and sterling term loans at the tight end of revised guidance.

Birch frees up

Birch Communications’ credit facility began trading on Thursday with the $450 million six-year term loan quoted at 98¼ bid, 99¼ offered, according to a trader.

Pricing on the term loan is Libor plus 675 basis points with a 1% Libor floor and it was sold at an original issue discount of 98. There is 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from talk of Libor plus 550 bps to 575 bps and the discount widened from 99.

The company’s $500 million senior secured credit facility (B3/B) also includes a $50 million five-year revolver.

Jefferies Finance LLC and PNC Capital Markets LLC are leading the deal that will be used to help fund the acquisition of Cbeyond Inc. for about $10 per share in cash, or around $323 million.

Leverage is about 2.5 times.

Birch is an Atlanta-based IP-based telecommunications and managed services provider. Cbeyond is an Atlanta-based provider of telecommunications and information technology services.

TeamViewer hits secondary

TeamViewer’s credit facility also broke, with the $320 million 6½-year first-lien covenant-light term loan (B1/B) quoted at 97¾ bid, 98½ offered and the $125 million seven-year second-lien covenant-light term loan (Caa1/CCC+) quoted at 97¼ bid, 98 offered, a trader remarked.

Pricing on the U.S. first-lien term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 97½. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 850 bps with a 1% Libor floor was issued at 97. This debt has call protection of 103 in year one, 102 in year two and 101 in year three.

The company’s credit facility also includes a $35 million five-year revolver (B1/B), and a €100 million 6½-year first-lien covenant-light term loan (B1/B) priced at Euribor plus 525 bps with a 1% floor and sold at a discount of 97½. The euro term loan has 101 soft call protection for one year.

TeamViewer lead banks

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Nomura are leading TeamViewer’s credit facility, which recently underwent a number of revisions.

Specifically, during syndication, the U.S. first-lien term loan was upsized from $310 million and pricing was lifted from talk of Libor plus 450 bps to 475 bps, and pricing on the euro first-lien term loan was increased from talk of Euribor plus 475 bps to 500 bps. Also, the discount on both tranches widened from 99 and the maturity was shortened from seven years.

As for the second-lien loan, it saw pricing lifted from talk of Libor plus 800 bps to 825 bps, the discount change from 98½, the call protection sweetened from 102 in year one and 101 in year two, and the maturity shortened from eight years.

TeamViewer incremental

TeamViewer’s incremental allowance is $75 million plus unlimited amounts subject to 4 times first-lien net secured leverage and 5.25 times total net secured leverage. This was modified during syndication from $100 million plus unlimited amounts subject to 4.2 times first-lien net secured leverage and 5.4 times total net secured leverage.

The credit facility also includes an excess cash flow sweep of 75% above 4.75 times net total secured leverage, with step-downs to 50% above 4.25 times, 25% above 3.75 times and 0% below 3.75 times net total secured leverage. This was recently revised from 50% with step-downs to 25% below 5 times net total secured leverage and 0% below 4.50 times.

Proceeds from the credit facility will be used to help fund the buyout of the company by Permira, and the first-lien term loan upsizing amount will be used to cover the larger original issue discounts.

TeamViewer is a Germany-based provider of secure remote support software and online meetings.

TriNet breaks

TriNet’s credit facility emerged in the secondary as well, with the $200 million three-year term loan B and $375 million five-year term loan A quoted at 99¾ bid, a source said.

Pricing on the term loan B is Libor plus 275 bps with no Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for six months.

The term loan A, as well as $75 million five-year revolver, are priced at Libor plus 275 bps.

Recently, the term loan B was upsized from $175 million and pricing was cut from Libor plus 300 bps, and the term loan A firmed at the high end of revised size talk of $350 million to $375 million but down from initial talk of $400 million.

J.P. Morgan Securities LLC is leading the $650 million deal (B1) that will be used to refinance existing debt.

TriNet is a San Leandro, Calif.-based cloud-based provider of on-demand HR services.

Tensar updates deal

Over in the primary, Tensar raised its seven-year first-lien term loan (B2/B+) to $235 million from $230 million and firmed pricing at Libor plus 475 bps, the tight end of the Libor plus 475 bps to 500 bps talk, while keeping the 1% Libor floor, original issue discount of 99 and 101 soft call protection for one year intact, according to a market source.

Furthermore, the eight-year second-lien term loan (Caa2/B-) was reduced to $80 million from $85 million and pricing finalized at Libor plus 850 bps, the wide end of the Libor plus 825 bps to 850 bps talk, the source said. This tranche still has a 1% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two.

Recommitments for the company’s $345 million credit facility, which also includes a $30 million five-year revolver, are due at 5 p.m. ET on Monday, the source added.

UBS AG and Societe Generale are leading the deal that will help fund Castle Harlan’s buyout of Tensar, an Atlanta-based provider of specialty products and engineering services used in the development of commercial, residential, industrial and municipal sites and in transportation infrastructure.

Iglo sets pricing

Iglo Foods finalized the spread on its €620 million six-year covenant-light term loan B at Euribor plus 425 bps, the tight end of revised talk of Euribor plus 425 bps to 450 bps and down from initial talk of Euribor plus 450 bps, and on its GBP 400 million six-year covenant-light term loan B at Libor plus 475 bps, the low end of the revised talk of Libor plus 475 bps to 500 bps and down from original talk of Libor plus 500 bps, a market source said.

As before, both term loans have a par offer price and 101 soft call protection for six months.

Allocations are expected on Friday, the source added.

Deutsche Bank Securities Inc., Credit Suisse Securities and Nomura are leading the deal that will be used to refinance existing term loan debt.

Iglo is a Bedfont, England-based frozen food company.

Gates Global closes

In other news, the $5.4 billion buyout of Gates Global LLC by Blackstone from Onex Corp. and Canada Pension Plan Investment Board has been completed, a news release said.

For the transaction, Gates got a new credit facility that consists of a $125 million five-year revolver (B2/B+), a $325 million five-year ABL revolver, a $2.49 billion seven-year first-lien covenant-light term loan (B2/B+) and a €200 million seven-year first-lien covenant-light term loan (B2/B+).

Pricing on the U.S. term loans is Libor/Euribor plus 325 bps with a 1% floor and the debt was sold an original issue discount of 99. The loans have 101 soft call protection for one year.

During syndication, pricing on the term loans was decreased from talk of Libor/Euribor plus 375 bps to 400 bps and the MFN sunset was extended to 18 months from 12 months.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., UBS AG and Macquarie Capital (USA) Inc. led the deal.

Gates is a Denver-based manufacturer of power transmission belts and fluid power products.

Altegrity completes deal

Altegrity Inc. closed on its $275 million term loan and $60 million four-year and 270 day revolver, according to a news release.

The term loan is priced at Libor plus 825 bps with a 1% Libor floor and was issued at 98½. The debt is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

During syndication, the term loan was downsized from $550 million, pricing was raised from Libor plus 750 bps and the original issue discount was moved from 99, and the call protection was sweetened from non-callable for one year, then at 102 in year two and 101 in year three.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Macquarie Capital are leading the deal that was used with $825 million of bonds, upsized from $550 million, to refinance existing debt.

Altegrity is a Falls Church, Va.-based risk and information services company.

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