Aristocrat, GFL, Bright Horizons break; Vistra Energy, American Airlines, TerraForm update

By Sara Rosenberg

New York, May 10 – Aristocrat Leisure Ltd.’s term loan emerged in the secondary market on Thursday and was trading above its issue price, and deals from GFL Environmental Inc. and Bright Horizons Family Solutions Inc. freed up too.

Moving to the primary market, Vistra Energy (Vistra Operating Co. LLC) finalized the issue price on its term loan B-3 at the tight end of talk, American Airlines Inc. modified the original issue discount on its term loan, and TerraForm Power Operating LLC firmed the spread on its term loan B at the low end of guidance but widened the issue price.

Also, Interior Logic Group Holdings IV LLC and Ashland LLC announced price talk with launch, and Valeant Pharmaceuticals International Inc., Generac Power Systems Inc. and Safe Fleet Holdings LLC joined the near-term primary calendar.

Aristocrat frees up

Aristocrat Leisure’s $2,261,000,000 billion term loan due October 2024 began trading, with levels quoted at par 1/8 bid, par 3/8 offered, according to a trader.

Pricing on the loan is Libor plus 175 basis points with a 0% Libor floor. The debt has 101 soft call protection for six months.

Proceeds will be used to extend an existing $950 million term loan from 2021 and reprice the debt from Libor plus 200 bps with a 0% Libor floor, and reprice an existing $1,311,000,000 term loan due October 2024 from Libor plus 200 bps with a 0% Libor floor. The two term loans are being combined into the one fungible $2,261,000,000 tranche.

The extended/repriced 2021 term loan was issued at an original issue discount of 99.875 and the repriced 2024 term loan was issued at par.

UBS Investment Bank is leading the deal.

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

GFL hits secondary

GFL Environmental’s $905 million seven-year senior secured covenant-light term loan B also freed up, with levels seen at par ¼ bid, par ¾ offered, a market source remarked.

Pricing on the term loan, of which $100 million is delayed-draw, is Libor plus 275 bps with a 1% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months and the delayed-draw tranche has a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

During syndication, the term loan was upsized from $435 million, pricing firmed at the low end of the Libor plus 275 bps to 300 bps talk, the discount was tightened from 99.5 and the draw-down period under the delayed-draw term loan was extended to Oct. 31 from Sept. 30.

Citigroup Global Markets Inc., RBC Capital Markets, Barclays and BMO Capital Markets are leading the deal.

GFL being acquired

Proceeds from GFL’s term loan will be used to help fund its buyout by BC Partners, Ontario Teachers’ Pension Plan and GIC and refinance some existing debt, including, because of the recent upsizing, existing U.S. and Canadian term loan B’s. The transaction implies a total GFL enterprise value of about $5,125,000,000.

The delayed-draw loan is available only to finance acquisitions and if the acquisition is levered at 6.25 times or less.

Closing is expected on May 31.

GFL Environmental is a Vaughan, Ont.-based waste management services company.

Bright Horizons breaks

Bright Horizons Family Solutions’ $1,064,000,000 term loan due November 2023 surfaced in the secondary market too, with levels seen at par 3/8 bid, par ¾ offered, according to a market source.

Pricing on the term loan is Libor plus 175 bps with a 0.75% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0.75% Libor floor.

Bright Horizons is a Watertown, Mass.-based provider of employer-sponsored child care, back-up care, early education, educational advisory services and other work/life services.

Vistra Energy firms

Moving to the primary market, Vistra Energy set the original issue discount on its $2.05 billion covenant-light first-lien term loan B-3 (//BBB-) due December 2025 at 99.875, the tight end of the 99.75 to 99.875 talk, and left pricing at Libor plus 200 bps with a 0% Libor floor, a market source remarked.

The company is also getting a $2,814,000,000 covenant-light first-lien term loan B-1 (//BBB-) due August 2023 priced at Libor plus 200 bps with a 0% Libor floor and a par issue price.

Both term loans have 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Thursday and allocations are targeted for Friday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan B-1 down from Libor plus 250 bps with a 0.75% Libor floor and to refinance existing debt.

Vistra, formerly known as Texas Competitive Electric Holdings Co. LLC, is a Dallas-based power generator and retail electric provider.

American Airlines tweaked

American Airlines changed the original issue discount on its $1,825,000,000 senior secured term loan (BB+) due June 27, 2025 to 99.625 from 99.75, according to a market source.

As before, the term loan is priced at Libor plus 175 bps with a 0% Libor floor and has 101 soft call protection for six months.

Final commitments were due at 1 p.m. ET on Thursday, the source said.

Barclays is leading the deal that will be used to amend and extend an existing term loan B due 2020 priced at Libor plus 200 bps with a 0% Libor floor. Deutsche Bank Securities Inc. is the administrative agent.

American Airlines is a Fort Worth-based airline company.

TerraForm updated

TerraForm set pricing on its $349,125,000 senior secured term loan B (Ba1/BB+/BB+) due Nov. 8, 2022 at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, and moved the original issue discount to 99.875 from par, a market source said.

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

Signature pages were due at noon ET on Thursday, the source added.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan down from Libor plus 275 bps with a 1% Libor floor.

TerraForm Power is a Bethesda, Md.-based owner and operator of a renewable power portfolio of solar and wind assets.

Interior Logic talk

Interior Logic Group released price talk on its $400 million seven-year covenant-light term loan B (B2/B) in connection with its bank meeting on Thursday, according to a market source.

The term loan is talked at Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on May 18.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Jefferies LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and pay related fees and expenses in connection with the cashless merger of Littlejohn & Co.’s portfolio company Interior Specialists Inc. LLC, a provider of interior design, design center management and installation services, and Platinum Equity's portfolio company Interior Logic Group.

Closing is expected in the second quarter.

Interior Logic is an Irvine, Calif.-based provider of design center services and interior finish solutions.

Ashland details surface

Ashland held its lender call in the morning and launched a $596 million senior secured covenant-light term loan B due May 2024 talked at Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments from existing lenders are due at 5 p.m. ET on Wednesday and commitments from new lenders are due at noon ET on May 17, the source added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor. Bank of Nova Scotia is the administrative agent.

In addition to the repricing, the company is looking to amend its credit agreement to permit the sale of the Composites, BDO and I&S business subject to fair market value and the pro forma total leverage ratio being no worse than the total leverage ratio for the most recently ended four quarter period with remaining proceeds available for restricted payments.

Closing is expected around mid-May.

Ashland is a Covington, Ky.-based specialty chemicals company.

Valeant readies deal

In more primary news, Valeant Pharmaceuticals set a lender call for 11 a.m. ET on Monday to launch $5,015,000,000 of credit facilities, according to a market source.

The facilities consist of a $1.2 billion revolver and a $3,815,000,000 senior secured term loan B, the source said.

Barclays, Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used with a potential combination of new senior secured notes and senior unsecured notes to refinance an existing term loan B series F, 5.375% senior notes due 2020, 6.375% senior notes due 2020, 6.75% senior notes due 2021 and 7.25% senior notes due 2022.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

Generac coming soon

Generac Power Systems will hold a lender call at 11 a.m. ET on Friday to launch an $879 million term loan B due May 2023 talked at Libor plus 175 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on May 17, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0.75% Libor floor. The existing term loan is being paid down by $50 million in connection with the repricing.

Generac is a Waukesha, Wis.-based designer and manufacturer of generators.

Safe Fleet on deck

Safe Fleet scheduled a lender call for 1 p.m. ET on Monday to launch an $80 million add-on senior secured first-lien term loan, a market source remarked.

Goldman Sachs Bank USA is leading the deal that will be used for mergers & acquisitions.

Safe Fleet is a Belton, Mo.-based provider of safety and productivity solutions for fleet vehicles.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.