ABB/Con-Cise, SRS Distribution tweak deals; Harland, Chefs’ Warehouse modify deadlines

By Sara Rosenberg

New York, June 10 – ABB/Con-Cise Optical Group LLC came out with changes to its credit facility on Friday, including upsizing its first-lien term loan B, firming the spread at the wide end of guidance and setting the original issue discount at the tight side of talk.

Also, SRS Distribution Inc. increased the size of its incremental first-lien term loan and updated pricing on the tranche as well as on its second-lien term loan, and Harland Clarke Holdings Corp. and Chefs’ Warehouse Inc. accelerated the commitment deadlines on their loans.

In addition, Patterson Medical, Mediware Information Systems Inc., Travelport Worldwide Ltd. and Bats Global Markets Inc. joined the near-term new issue calendar.

ABB/Con-Cise revised

ABB/Con-Cise Optical on Friday raised its seven-year first-lien covenant-light term loan B to $370 million from $350 million, firmed pricing at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk and finalized the issue price at 99, the tight end of the 98.5 to 99 talk, according to a market source.

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

The company’s now $630 million senior secured credit facility also includes a $100 million five-year revolver and a $160 million privately placed eight-year second-lien term loan.

Recommitments were due by 5 p.m. ET on Friday, with allocations targeted for Monday.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Capital One, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading the deal that will be used to refinance existing debt and to fund a shareholder dividend, the amount of which was increased with the term loan B upsizing, the source added.

ABB/Con-Cise is a Coral Springs, Fla. optical distributor.

SRS reworks deal

SRS Distribution lifted its incremental first-lien covenant-light term loan due Aug. 25, 2022 to $147 million from $127 million, firmed the spread at Libor plus 425 bps, the low end of the Libor plus 425 bps to 450 bps talk, and changed the original issue discount on new loans only to 99.5 from 99, a market source remarked.

The first-lien term loan still has a 1% Libor floor and 101 soft call protection for one year.

As for the $130 million second-lien covenant-light term loan due Feb. 25, 2023, pricing was reduced to Libor plus 875 bps from Libor plus 900 bps and the discount was set at 98, the tight end of the 97 to 98 talk, the source said.

Unchanged on the second-lien term loan was the 1% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

Barclays and UBS Investment Bank are the bookrunners on the now $277 million in term loans, with Barclays the left lead on the first-lien term loan and UBS left lead on the second-lien term loan.

SRS documentation changes

Along with the size and pricing updates, SRS Distribution revised the first-lien incremental ratio basket to unlimited up to 4 times net first-lien leverage from unlimited up to 4.25 times net first-lien leverage and modified the second-lien incremental ratio basket to unlimited up to 5.25 times net secured leverage from unlimited up to 5.5 times net secured leverage, the source continued.

Additionally, dividends under restricted payments were changed to unlimited amount up to 4 times net total leverage from unlimited amount up to 4.5 times net total leverage, junior debt prepayments under restricted debt payments were revised to unlimited amounts up to 4.5 times net total leverage from unlimited amounts up to 5 times net total leverage, the investments ratio basket was changed to unlimited amounts up to 4.75 times net total leverage from unlimited amounts up to 5 times net total leverage, and costs to achieve synergies under consolidated EBITDA were capped at 20% of consolidated EBITDA from uncapped previously.

Commitments are due at 5 p.m. ET on Monday, moved up from 5 p.m. ET on June 20, the source added.

Proceeds from the term loans will be used by the McKinney, Texas-based roofing distributor to fund a dividend to existing shareholders.

Harland moves deadline

Harland Clarke changed the commitment deadline on its $800 million term loan B-5 (B1/BB-) due December 2019 to 5 p.m. ET on Monday from Tuesday, a market source said.

The term loan B-5 is talked at Libor plus 600 bps with a 1% Libor floor and an original issue discount of 97 and has 101 soft call protection for one year, amortization of 10% per annum and a springing maturity.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Jefferies Finance LLC, Macquarie Capital (USA) Inc. and PNC Capital Markets are leading the deal.

Proceeds will be used to refinance an existing term loan B-2 and a portion of the company’s term loan B-3.

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

Chefs’ shutting early

Chefs’ Warehouse accelerated the commitment deadline on its $330 million six-year term loans to close of business on Tuesday from Thursday, a source remarked.

The term debt is split between a $280 million funded tranche and a $50 million delayed-draw tranche, which are being sold as a strip.

Price talk on the debt is Libor plus 475 bps to 500 bps with a 1% Libor floor and an original issue discount of 99, and there is 101 soft call protection for one year.

The company’s $405 million credit facility also provides for a $75 million ABL revolver.

Jefferies Finance LLC, BMO Capital Markets Corp., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing credit facility debt, to retire outstanding senior secured notes, for general corporate purposes and for potential acquisitions.

Chefs’ Warehouse is a Ridgefield, Conn.-based distributor of specialty food products.

Patterson coming soon

In more primary news, Patterson Medical scheduled a bank meeting for 10 a.m. ET on Tuesday to launch a $330 million covenant-light term loan B, according to a market source.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the acquisition of Performance Health from Gridiron Capital.

Closing is expected this summer, subject to customary conditions.

Patterson Medical, a Madison Dearborn Partners portfolio company, is a Warrenville, Ill.-based distributor of rehabilitation, sports medicine and assistive patient products. Performance Health is an Akron, Ohio-based manufacturer and supplier of consumer branded health, wellness and self-care products.

Mediware readies loan

Mediware Information Systems emerged with plans to hold a bank meeting at 10 a.m. ET on Tuesday to launch a $300 million term loan, according to a market source.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Mediware is a Lenexa, Kan.-based provider of specialized healthcare IT solutions for automating and managing complex healthcare processes.

Travelport on deck

Travelport set a lender call for 10:30 a.m. ET on Monday to launch a repricing of its term loan B, a market source remarked.

Deutsche Bank Securities Inc. is leading the deal.

According to filings with the Securities and Exchange Commission, current pricing on the term loan B is Libor plus 475 bps with a 1% Libor floor.

Travelport is an Atlanta-based provider of transaction processing services to the travel industry.

Bats joins calendar

Bats Global Markets is getting ready to launch on Monday a new $750 million credit facility (BB-), split between a $100 million revolver and a $650 million term loan B, a market source said.

Bank of America Merrill Lynch is leading the deal that will be used to refinance an existing $100 million revolver and $656 million term loan B.

Closing is expected this month.

Bats Global Markets is a Kansas City-based operator of exchanges and services for financial markets.

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