Travelport, Power Solutions free to trade; AMC Entertainment, Tank Holding modify deals

By Sara Rosenberg

New York, March 18 – Travelport Worldwide Ltd. finalized the spread on its first-lien term loan at the high end of revised talk before breaking for trading on Monday, and Power Solutions (Panther BF Aggregator 2 LP) saw its term loan debt make its way into the secondary market as well.

In more happenings, AMC Entertainment Holdings Inc. set pricing on its term loan at the wide side of guidance and tightened the issue price, and Tank Holding Corp. lowered the spread on its first-lien term loan and modified the original issue discount.

Additionally, Calpine Corp. and Hyperion Insurance Group Ltd. released price talk on their loan transactions with launch, and Qlik Technologies Inc. and Allison Transmission Inc. joined this week’s primary calendar.

Travelport updated

Travelport firmed pricing on its $2.8 billion seven-year covenant-lite first-lien term loan (B2/B+/BB-) at Libor plus 500 basis points, the high end of revised talk of Libor plus 475 bps to 500 bps and wide of initial talk in the range of Libor plus 450 bps to 475 bps, according to a market source.

Furthermore, the original issue discount on the first-lien term loan finalized at 98, the wide end of revised talk of 98 to 98.5 but in line with initial talk of just 98, the source said.

The first-lien term loan still has a 0% Libor floor and 101 soft call protection for one year.

The company’s $3.45 billion of credit facilities also include a $150 million revolver (B2/B+/BB-), and a $500 million eight-year covenant-lite second-lien term loan (Caa2/CCC+/B-) priced at Libor plus 900 bps with a 0% Libor floor and a discount of 97.

The second-lien term loan has call protection of 102 in year one and 101 in year two.

Previously in syndication, the call protection on the first-lien term loan was extended from six months, and the spread on the second-lien term loan firmed at the high end of the Libor plus 850 bps to 900 bps talk.

Travelport hits secondary

On Monday, Travelport’s bank debt freed to trade, with the first-lien term loan quoted at 98 bid, 98 ½ offered and the second-lien term loan quoted at 97 bid, 98 offered, a trader remarked.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., Credit Suisse Securities (USA) LLC and Barclays are leading the debt that will be used with up to $1.08 billion of equity to fund the buyout of the company by Siris Capital Group LLC and Evergreen Coast Capital Corp. for $15.75 per share in cash. The transaction is valued at about $4.4 billion.

Closing is expected in the second quarter, subject to customary conditions, including approval by Travelport shareholders and receipt of required regulatory approvals. The transaction is not subject to any financing condition.

Travelport is a Langley, U.K.-based travel technology company.

Power Solutions breaks

Power Solutions’ bank debt began trading too, with the $4.2 billion seven-year covenant-lite term loan B quoted at par bid, par ¼ offered on the break, according to traders. The loan then traded up to par 1/8 bid, par 3/8 offered and by mid-afternoon it moved to 99 7/8 bid, par 1/8.

The company’s €1,955,000,000 seven-year covenant-lite term loan B also freed up, and it was seen at 99¾ bid, par offered, traders said.

Pricing on the U.S. term loan B is Libor plus 350 bps with a 0% Libor floor, and it was sold at an original issue discount of 99. The loan has 101 soft call protection for one year.

The euro term loan B is priced at Euribor plus 375 bps with a 0% floor and was issued at a discount of 99.5. This tranche has 101 soft call protection for one year as well.

During syndication, the U.S. term loan was upsized from $3.2 billion, pricing was set at the low end of revised talk of Libor plus 350 bps to 375 bps and down from initial talk in the range of Libor plus 400 bps to 425 bps, and the discount was modified from 98.5. Also, the euro term loan size firmed from an initial description of $2.25 billion equivalent, pricing was cut from revised talk of Euribor plus 400 bps and initial talk in the range of Euribor plus 400 bps to 425 bps talk, and the discount was tightened from 99. Additionally, the call protection on both tranches was extended from six months.

Power Solutions buyout

Proceeds from Power Solutions’ term loans (Ba3/B+/BB), $1 billion of U.S. senior secured notes, which were downsized from $2 billion with the U.S. term loan upsizing, €700 million of senior secured notes, which firmed from talk of €660 million minimum, $1.95 billion of senior notes and equity will be used to fund the acquisition of the company by Brookfield Business Partners LP and Caisse de depot et placement du Quebec from Johnson Controls for around $13.2 billion.

J.P. Morgan Securities is the left lead on the U.S. term loan B, and Barclays is the left lead on the euro term loan B. Filings with the Securities and Exchange Commission listed Credit Suisse, Bank of America Merrill Lynch, BMO Capital Markets, CIBC Capital Markets, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, RBC Capital Markets, Bank of Nova Scotia and TD Securities as leads on the debt as well. JPMorgan is the administrative agent.

Closing is expected by June 30, subject to customary conditions, including regulatory approvals.

Power Solutions is a supplier of low voltage automotive batteries.

AMC tweaks loan

Back in the primary market, AMC Entertainment firmed pricing on its $2 billion seven-year covenant-lite term loan B at Libor plus 300 bps, the high end of the Libor plus 275 bps to 300 bps talk, modified the original issue discount to 99.5 from 99, and made a number of documentation changes, a market source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Monday, the source added.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance existing credit facilities and redeem 5.875% senior subordinated notes due 2022 and 6% senior secured notes due 2023.

AMC is a Leawood, Kan.-based movie exhibitor.

Tank revises pricing

Tank Holding trimmed the spread on its $480 million seven-year covenant-lite first-lien term loan (B2/B) to Libor plus 400 basis points from talk in the range of Libor plus 425 bps to 450 bps and adjusted the original issue discount to 99.5 from 99, according to a market source.

As before, the term loan B has a 0% Libor floor and 101 soft call protection for six months.

Commitments are due at noon ET on Wednesday, moved up from noon ET on Friday, the source said.

The company’s $710 million of senior secured credit facilities also include a $60 million five-year revolver (B2/B) and a $170 million privately placed second-lien term loan.

Morgan Stanley Senior Funding Inc., Antares Capital and Carlyle Global Credit Investment Management LLC are leading the deal that will be used to help fund the buyout of the company by Olympus Partners.

Tank Holding is a manufacturer of rotationally molded poly and welded steel bulk storage and material handling products. The company has headquarters in St. Bonifacius, Minn., and Lincoln, Neb.

Calpine holds call

Calpine hosted a lender call at 2 p.m. ET on Monday to launch a $950 million seven-year senior secured covenant-lite term loan B-9 talked at Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Friday, the source added.

Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Natixis, RBC Capital Markets and SMBC are leading the deal that will be used to refinance an existing term loan B-8 due December 2019 and an existing term loan B-6 due January 2023.

Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.

Hyperion reveals guidance

Hyperion came out with original issue discount talk of 98.789 on its fungible $130 million add-on senior secured covenant-lite term loan B due Dec. 20, 2024 that launched with a morning call, a market source remarked.

The add-on term loan is priced at Libor plus 350 bps with a 1% Libor floor.

Morgan Stanley Senior Funding Inc. is the left lead on the debt that will be placed on the balance sheet in a locked box account to fund future acquisitions.

With this transaction, lenders are being offered a 25 bps amendment fee.

Commitments and consents are due at noon ET on Friday, the source added.

Hyperion is a London-based insurance intermediary group.

Qlik readies deal

Qlik Technologies set a lenders’ presentation for 1:30 p.m. ET on Tuesday to launch a $465 million incremental term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the acquisition of Attunity Ltd. for $23.50 in cash per share, or about $560 million.

Closing is expected in the second quarter, subject to customary conditions, including the approval of Attunity shareholders and regulatory clearances.

Qlik is a King of Prussia, Pa.-based data analytics company. Attunity is a Boston-based provider of data integration and big data management software solutions.

Allison on deck

Allison Transmission scheduled a lender call for 11:30 a.m. ET on Tuesday to launch a new loan deal to current and prospective lenders, a market source remarked.

Citigroup Global Markets Inc. is leading the transaction.

Allison Transmission is an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems.

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