Harland Clarke, Cypress, U.S. Farathane, Vectra, OpenText, Gateway Casinos break for trading

By Sara Rosenberg

New York, Feb. 15 – Harland Clarke Holdings Corp. finalized the original issue discount on its incremental first-lien term loan B-6 at the tight end of guidance, and Cypress Semiconductor Corp. firmed the issue price for new commitments for its term loan B at the tight side of revised talk, and then both of these companies’ debt emerged in the secondary market.

Also, U.S. Farathane LLC set the spread on its term loan at the low end of guidance and Vectra Co. (Duke Finance LLC) increased the size of its term loan, and then these deals freed to trade too, as did OpenText Corp. and Gateway Casinos & Entertainment Ltd.

In more happenings, Sabre Inc. changed the original issue discount on its term loan B and added a pricing step-down, and TeamViewer adjusted sizes on its first- and second-lien term loans and updated pricing.

Additionally, Level 3 Financing Inc. upsized its term loan B and lowered the spread, Greenway Health LLC trimmed pricing on its first-lien term loan and revised the original issue discount, and BBB Industries LLC set the spread on its incremental first-lien term loan at the wide side of talk.

Furthermore, Arch Coal Inc., KeyPoint Government Solutions Inc., Navios Maritime Partners LP, CPM Acquisition Corp. and National Veterinary Associates released price talk with launch, and Aristocrat Leisure Ltd. and Ranpak Corp. emerged with new deal plans.

Harland updates deal

Harland Clarke firmed the original issue discount on its $325 million incremental covenant-light first-lien term loan B-6 due February 2022 at 99.5, the tight end of the 99.25 to 99.5 talk, according to a market source.

As before, pricing on the incremental term loan B-6 is Libor plus 550 basis points with a 1% Libor floor, and the debt has 101 soft call protection through August.

The company is also getting a $760 million covenant-light first-lien term loan B-5 due December 2021 priced in line with talk at Libor plus 600 bps with a 1% Libor floor and an original issue discount of 99.75. This tranche has 101 soft call protection through June.

Spread, floor and call protection on the term loan B-5 and the incremental term loan B-6 matches existing term loan B-5 and B-6 terms.

Harland tops OIDs

Once terms firmed up, Harland Clarke’s term loans began trading on Wednesday, with the term loan B-6 quoted at par bid, par ½ offered and the term loan B-5 quoted at par ¼ bid, par ¾ offered, the source said.

Credit Suisse Securities (USA) LLC is leading the term loans (B1) that will be used to extend an existing term loan B-5 from December 2019 and to refinance the company’s remaining term loan B-4 debt.

Harland Clarke is a San Antonio-based provider of media delivery, payment solutions and marketing services.

Cypress sets price

Cypress Semiconductor finalized the original issue discount for new commitments for its $438.75 million term loan B due July 5, 2021 at 99.75, the tight end of revised talk of 99.5 to 99.75 and tight of initial talk of 99.5, according to a market source.

Pricing on the term loan B is still Libor plus 375 bps with a 0% Libor floor and a par issue price for rolled commitments, and the debt still has 101 soft call protection for six months.

The company’s $1,073,750,000 senior secured credit facility also includes a $540 million revolver due March 12, 2020 priced at Libor plus 225 bps with a 0% Libor floor and an original issue discount of 99.9, and a $95 million term loan A due March 12, 2020 priced at Libor plus 375 bps with a 0% Libor floor and a discount of 99.75.

On Tuesday, the spread on the term loan B and the term loan A firmed at the low end of the Libor plus 375 bps to 400 bps talk.

Cypress frees up

With final terms in place, Cypress Semiconductor’s credit facility began trading, and the term loan B was quoted at par ¾ bid, 101¾ offered, a trader remarked.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and Barclays are leading the deal that will be used to amend the existing senior secured credit facility and reprice the term loan A due 2020 and term loan B due 2021.

With the transaction, the total leverage covenant is being amended to 4.25 times through Dec. 31, 2017, 4 times through June 30, 2018 and 3.75 times thereafter.

Closing is expected on Friday, the source added.

Cypress is a San Jose, Calif.-based manufacturer of mixed-signal integrated circuits.

U.S. Farathane firms, trades

U.S. Farathane finalized pricing on its $533.7 million term loan B due Dec. 23, 2021 at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, a market source said.

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

In the afternoon, the term loan B freed up, with levels seen at par ½ bid, 101¼ offered, another source added.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 1% Libor floor.

U.S. Farathane is an Auburn Hills, Mich.-based manufacturer of single-shot and multi-shot injection molded, compression molded and extruded components and assemblies, primarily for use in lightweight vehicles.

Vectra upsizes, breaks

Vectra lifted its seven-year covenant-light first-lien term loan to $475 million from $425 million and left pricing at Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan still has 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday, and then the loan hit the secondary market with levels quoted at 99¼ bid, 99¾ offered, another source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and fund a shareholder distribution.

Vectra, formerly known as OM Group Inc., is a St. Louis-based technology-driven specialty materials and specialty chemicals company.

OpenText hits secondary

OpenText’s $776 million term loan B due Jan. 16, 2021 began trading as well, with levels quoted at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the term loan is Libor plus 200 bps with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Barclays is leading the deal that will be used to reprice an existing term loan down from Libor plus 250 bps with a 0.75% Libor floor.

Closing is expected on Tuesday.

OpenText is a Waterloo, Ont.-based software provider of business-to-business cloud integration services.

Gateway starts trading

Gateway Casinos & Entertainment’s credit facility also emerged in the secondary market, with the $405 million six-year first-lien term loan B-1 (Ba3/BB-) quoted at par bid, par ½ offered, according to a trader.

Pricing on the term loan B-1 is Libor plus 375 bps with a 1% floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The company’s senior secured facility also includes a C$125 million five-year revolver priced at CDOR plus 375 bps with no floor and a C$80 million six-year first-lien term loan B-2 (Ba3/BB-) priced at CDOR plus 400 bps with a 1% floor, and issued at a discount of 99.5. The term loan B-2 also has 101 soft call protection for six months.

On Tuesday, the term loan debt was increased from a total $440 million equivalent U.S. and Canadian loan, pricing was revised from initial talk of Libor plus 425 bps and the original issue discount was changed from 99.

Gateway readies close

Closing on Gateway Casinos’ credit facility is targeted to take place on Feb. 22, another source added.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc., BMO Capital Markets, Macquarie Capital (USA) Inc., National Bank of Canada Financial Markets and ING are leading the deal that will be used with new second-priority senior secured notes to refinance existing debt, fund the acquisition of two “Gaming Bundles” from the Ontario Lottery and Gaming Corp., increase available liquidity for future growth capital expenditures and fund a dividend to shareholders.

Due to the recent term debt upsizing, the dividend was increased to $100 million from C$100 million.

Gateway Casinos is a Burnaby, B.C.-based owner of gaming properties.

Sabre revised

Back in the primary market, Sabre modified the original issue discount on its $1.9 billion seven-year covenant-light term loan B (BB-) to 99.875 from talk of 99.5 to 99.75 and added a pricing step-down to Libor plus 250 bps when leverage is 2.5 times, a market source remarked.

Opening pricing on the loan is still Libor plus 275 bps with a 0% Libor floor, and there is still 101 soft call protection for six months.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Mizuho, Wells Fargo Securities LLC, Natixis, Morgan Stanley Senior Funding Inc. and MUFG are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Sabre is a Southlake, Texas-based online travel company.

TeamViewer modified

TeamViewer downsized its U.S. seven-year covenant-light first-lien term loan B to $325 million from $390 million and set pricing at Libor plus 475 bps, the low end of the Libor plus 475 bps to 500 bps talk, a market source said.

Additionally, the company upsized its euro seven-year covenant-light first-lien term loan B to $240 million euro-equivalent from $160 million euro-equivalent and trimmed the spread to Euribor plus 450 bps from talk of Euribor plus 475 bps to 500 bps.

And, the eight-year covenant-light second-lien term loan was downsized to $200 million from $215 million with pricing cut to Libor plus 825 bps from talk of Libor plus 875 bps to 900 bps, the source continued.

All of the term loans have a 1% floor, the first-lien term loans are being sold at an original issue discount of 99.5 and include 101 soft call protection for six months, and the second-lien term loan is being issued at a discount of 98.5 and has call protection of 102 in year one and 101 in year two.

TeamViewer lead banks

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Nomura are leading TeamViewer’s debt, with Bank of America the left lead on the first-lien term loans and Credit Suisse the left lead on the second-lien term loan.

Recommitments were due at 1 p.m. ET on Wednesday, the source added.

Proceeds will be used to refinance existing debt and fund a shareholder distribution.

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

Level 3 reworks loan

Level 3 increased its seven-year covenant-light term loan B to a range of $3.61 billion to $4.61 billion from an initial amount of $2.61 billion and lowered pricing to Libor plus 225 bps from Libor plus 250 bps, while keeping the 0% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months intact, a market source remarked.

Recommitments are due by the close of business on Thursday, the source added.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance the company’s $815 million term loan B-3 due in 2019 and its $1,795,500,000 term loan B due in 2020, and due to the upsizing, to refinance some or all of its $2 billion term loan B-2 due in 2022.

Level 3 is a Broomfield, Colo.-based provider of communications services to enterprise, government and carrier customers.

Greenway flexes lower

Greenway Health lowered the spread on its $530 million seven-year covenant-light first-lien term loan to Libor plus 475 bps from talk of Libor plus 500 bps to 525 bps and moved the original issue discount to 99.5 from 99, according to a market source.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $560 million credit facility (B3/B-) also includes a $30 million five-year revolver.

Recommitments were due at 5 p.m. ET on Wednesday, the source said.

Jefferies Finance LLC, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

Greenway Health is a Carrollton, Ga.-based provider of clinical, financial, administrative and connectivity information solutions to physician practices.

BBB finalizes pricing

BBB Industries LLC firmed pricing on its $100 million incremental first-lien term loan (B2) at Libor plus 500 bps, the high end of the Libor plus 475 bps to 500 bps talk, and left the 1% Libor floor and original issue discount of 99.5 unchanged, a source said.

Commitments are due at 10 a.m. ET on Thursday, the source added.

Nomura and Jefferies Finance LLC are leading the deal that will be used to prepay an existing second-lien term loan.

The company’s existing first-lien term loan is priced at Libor plus 500 bps with a 1% Libor floor, so there is no longer the potential for a repricing of the existing first-lien loan with the incremental loan.

BBB is a Daphne, Ala.-based remanufacturer of automotive products for the North American aftermarket.

KeyPoint reveals talk

Also in the primary market, KeyPoint Government Solutions held its bank meeting on Wednesday, launching its $250 million seven-year senior secured term loan B at talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $265 million credit facility (B) also includes a $15 million revolver.

Commitments are due at 1 p.m. ET on March 1, the source added.

Barclays is leading the deal that will be used to refinance the company’s existing term loan, fund a dividend to shareholders and pay transaction related fees and expenses.

KeyPoint is a Loveland, Colo.-based provider of background investigative services for the federal government.

Navios terms surface

Navios Maritime launched with a presentation its $400 million five-year senior secured first-lien term loan B (B3/B) at talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year, according to a market source.

Commitments are due on March 1, the source said.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, S. Goldman Advisors LLC, DVB, Credit Agricole, ABN Amro and Clarkson are leading the deal that will be used to refinance existing debt.

Navios Maritime is a Monaco-based seaborne shipping and logistics company.

CPM discloses guidance

CPM Acquisition came out with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $310 million senior secured covenant-light term loan B due April 2022 that launched with an afternoon lender call, according to a market source.

Commitments are due on Tuesday, the source said.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and Rabobank are leading the deal that will be used to reprice the company’s existing term loan B.

CPM is a supplier of process equipment used for oilseed processing and animal feed production.

National Veterinary launches

National Veterinary Associates held a lender call in the morning, launching a $670 million first-lien term loan B-2 due August 2021 at talk of Libor plus 350 bps with a 1% Libor floor, a par issue price for rolled term loan B and term loan B-1 commitments, an original issue discount of 99.5 on new money commitments, and 101 soft call protection for six months, a market source said.

In addition, the company launched a fungible $50 million add-on second-lien term loan due August 2022 at pricing of Libor plus 700 bps with a 1% Libor floor, in line with the existing second-lien term loan, and discount talk of 99.25 to 99.5, the source continued. This tranche has 101 hard call protection through October.

Bank of America Merrill Lynch, Jefferies Finance LLC, RBC Capital Markets and Nomura are leading the deal that will be used to refinance/reprice $594 million in term loan B and term loan B-1 debt, to repay revolver borrowings and to add cash to the balance sheet.

The existing term loan B due August 2021 is priced at Libor plus 375 bps with a 1% Libor floor and the existing term loan B-1 is priced at Libor plus 450 bps with a 1% Libor floor.

National Veterinary is an Agoura Hills, Calif., owner of independent freestanding veterinary hospitals.

Arch Coal coming soon

Arch Coal emerged with plans to hold a bank meeting at 3 p.m. ET in New York on Thursday to launch a $250 million seven-year covenant-light first-lien term loan B talked at Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on March 2, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

Arch Coal is a St. Louis-based coal producer.

Aristocrat on deck

Aristocrat Leisure set a lender call for 3 p.m. ET on Thursday to launch a $1 billion first-lien term loan, according to a market source.

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan from Libor plus 275 bps with a 0.75% Libor floor, the source said.

Aristocrat Leisure is a Sydney, Australia-based provider of gaming services.

Ranpak joins calendar

Ranpak will hold a lender call at 11 a.m. ET on Thursday to launch a fungible $45 million add-on first-lien term loan, a market source said.

Macquarie Capital (USA) Inc. is leading the deal that will be used to repay a second-lien term loan.

Ranpak is a Concord Township, Ohio-based manufacturer of paper-based systems for protective packaging needs.

Herbalife closes

In other news, Herbalife completed its $1.45 billion credit facility that includes a $150 million revolver and a $1.3 billion six-year first-lien term loan, according to a news release.

Pricing on the term loan is Libor plus 550 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 hard call protection for 18 months.

During syndication, the term loan was upsized from $1,175,000,000, pricing was increased from Libor plus 375 bps, the discount was set at the tight end of revised talk of 97 to 98 but wide of initial talk of 99, and the call protection was changed from revised talk of 102 in year one and 101 in year two and initial talk of a 101 soft call for six months.

Also during syndication, the maturity of the term loan was shortened from seven years, the MFN sunset was removed, amortization was raised to 7.5% per annum from 1% per annum, the covenant-light status was changed through the addition of a total leverage covenant, the $430 million freebie basket on the incremental was removed and the incremental ratios were changed to gross leverage from net leverage.

Credit Suisse Securities (USA) LLC and Rabobank led the deal that was used by the Los Angeles-based nutrition and weight management company to refinance an existing revolver and for general corporate purposes.

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