Vistra Energy, TerraForm, Western Digital, Big Jack’s, Everi, Foundation Building, MHS break

By Sara Rosenberg

New York, May 11 – A number of deals freed up for trading on Friday, including Vistra Energy (Vistra Operating Co. LLC), TerraForm Power Operating LLC, Western Digital Corp., Big Jack’s Holdings LP (Jack’s Family Restaurant) and Everi Payments Inc.

In addition, Foundation Building Materials Holdings Co. LLC firmed the spread on its term loan B at the low end of guidance and tightened the original issue discount, and MHS Holdings Inc. lifted pricing on its add-on term loan B and canceled plans for a repricing of its existing B loan, and then both of these deal made their way into the secondary market.

Also, Waste Industries USA LLC (Wrangler Buyer LLC) released price talk with launch, and Plantronics Inc., 24 Hour Fitness Worldwide Inc., ON Semiconductor Corp. and Open Text Corp. joined the near-term primary calendar.

Vistra Energy frees up

Vistra Energy’s bank debt began trading on Friday, with the $2,814,000,000 covenant-light first-lien term loan B-1 (Ba1//BBB-) due August 2023 and the $2.05 billion covenant-light first-lien term loan B-3 (//BBB-) due December 2025 quoted at par ¼ bid, par ½ offered, according to a trader.

Pricing on both term loans is Libor plus 200 basis points with a 0% Libor floor. The term loan B-1 was issued at par and the term loan B-3 was sold at an original issue discount of 99.875. Both loans have 101 soft call protection for six months.

On Thursday, the discount on the term loan B-3 firmed at the tight end of the 99.75 to 99.875 talk.

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.

TerraForm hits secondary

TerraForm’s $349,125,000 senior secured term loan B (Ba1/BB+/BB+) due Nov. 8, 2022 also broke, with levels seen at par bid, par ¼ offered, a trader said.

Pricing on the term loan is Libor plus 200 bps with a 0% Libor floor and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

On Thursday, the spread on the term loan was set at the low end of the Libor plus 200 bps to 225 bps talk and the issue price widened from par.

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.

Western Digital tops par

Western Digital’s $2,455,000,000 covenant-light term loan B (Baa2/BBB-/BBB-) due April 29, 2023 freed to trade too, with levels quoted at par 3/8 bid, par 5/8 offered, according to a trader.

The term loan is priced at Libor plus 175 bps with a 0% Libor floor and was issued at par. The debt has 101 soft call protection for six months.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Mizuho, RBC Capital Markets and Wells Fargo Securities LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 200 bps with a 0% Libor floor.

Western Digital is an Irvine, Calif.-based developer and manufacturer of storage solutions that enable people to create, manage, experience and preserve digital content.

Big Jack’s starts trading

Big Jack’s Holdings’ $245 million covenant-light first-lien term loan B (B3/B) due April 5, 2024 emerged in the secondary market as well, with levels seen at par ½ bid, 101 offered, a trader remarked.

Pricing on the term loan is Libor plus 350 bps with a 25 bps step-down at 3.75 times net first-lien leverage and a 1% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

RBC Capital Markets, Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 1% Libor floor.

Onex Partners Manager LP is the sponsor.

Big Jack’s is an Alabama-based operator of quick-service restaurants.

Everi frees up

Everi Payments’ $813,850,000 senior secured first-lien term loan (B1/B+) due May 9, 2024 broke, with levels seen at par bid, par ½ offered and then it moved up to par ¼ bid, par 5/8 offered, a trader said.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Everi Payments is a Las Vegas-based provider of video and mechanical reel gaming content and solutions, integrated gaming payment solutions and compliance and efficiency software solutions.

Foundation updated, breaks

Foundation Building Materials set pricing on its $450 million seven-year covenant-light term loan B (B3/B+) at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, and changed the original issue discount to 99.75 from 99.5, according to a market source.

The term loan has a 25 bps step-down at 4 times first-lien net leverage, a 0% Libor floor, 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin plus Libor thereafter.

After terms finalized, the B loan freed to trade and levels were quoted at par 1/8 bid, par 5/8 offered, a trader added.

RBC Capital Markets, Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc. and Stifel are leading the deal that will be used with an asset-based revolver draw to redeem the company’s existing 8¼% senior secured notes due 2021 and pay related expenses.

Foundation Building is a Tustin, Calif.-based building material company.

MHS revised, trades

MHS Holdings raised pricing on its fungible $200 million add-on covenant-light term loan B (B2/B) due May 1, 2024 to Libor plus 500 bps from revised talk of Libor plus 425 bps and initial talk of Libor plus 375 bps, and left the 1% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months unchanged, a market source said.

Also, the company eliminated plans to reprice its existing $263 million term loan B (B2/B) down from Libor plus 500 bps with a 1% Libor floor. The repricing had been offered at par.

The add-on term loan then hit the secondary market during the session, with levels quoted at par bid, 101 offered, a trader added.

RBC Capital Markets is leading the add-on loan that will be used to fund a dividend.

Thomas H. Lee Partners LP is the sponsor.

MHS is a Louisville, Ky.-based provider of e-commerce infrastructure.

Waste Industries guidance

In more happenings, Waste Industries held its lender call on Friday, launching its fungible $170 million incremental term loan B (B1/B) and a repricing of its existing $888 million term loan B (B1/B) at talk of Libor plus 275 bps with a step-down to Libor plus 250 bps at first-lien net leverage of 4 times, a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

Barclays is the left lead on the deal.

The incremental loan will be used to fund acquisitions and/or to repay revolver borrowings related to acquisitions, and the repricing will take the existing term loan down from Libor plus 300 bps with a 25 bps step-down and a 0% Libor floor.

HPS Investment Partners LLC and Equity Group Investments are the sponsors.

Waste Industries is a Raleigh, N.C.-based provider of non-hazardous solid waste collection, transfer, recycling and disposal services.

Plantronics timing emerges

Plantronics set a bank meeting for 10 a.m. ET in New York on Tuesday to launch its previously announced $1,375,000,000 of credit facilities, according to a market source.

The facility consists of a $100 million revolver, and a $1,275,000,000 seven-year covenant-light term loan B that has 101 soft call protection for six months, the source said.

Commitments are due at noon ET on May 31.

Wells Fargo Securities LLC is the left lead on the deal that will be used with cash on hand to fund the acquisition of Polycom, to refinance existing debt and for general corporate purposes.

Polycom is being bought for $2 billion enterprise value consisting of an estimated $690 million of net debt and an estimated $948 million in cash and 6.352 million Plantronics shares.

Closing is expected by the end of the third quarter, subject to regulatory approvals and other customary conditions.

Plantronics is a Santa Cruz, Calif.-based audio communications company. Polycom is a San Jose, Calif.-based provider of secure video, voice and content solutions.

24 Hour readies deal

24 Hour Fitness will hold a lender presentation at 10:30 a.m. ET on Tuesday to launch $970 million of senior secured credit facilities, a market source said.

The facilities consist of a $120 million revolver and an $850 million first-lien term loan B, the source added.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, RBC Capital Markets and Citizens Capital Markets are leading the deal that will be used to refinance existing debt.

24 Hour Fitness is a San Ramon, Calif.-based fitness-club operator.

ON Semiconductor on deck

ON Semiconductor scheduled a lender call for 10 a.m. ET on Monday to launch a $1,205,000,000 covenant-light term loan B due March 2023 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 remarked.

Commitments from existing lenders are due at noon ET on May 21 and commitments from new lenders are due at noon ET on May 22, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor.

ON Semiconductor is a Phoenix-based semiconductor company.

Open Text joins calendar

Open Text set a lender call for 1 p.m. ET on Monday to launch a $1 billion seven-year term loan B, according to a market source.

Barclays is the left lead on the deal that will be used to refinance an existing term loan B and revolver borrowings.

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

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