Output Services, GreenSky, Chemours break; McDermott, HealthChannels, Rocket revise deals

By Sara Rosenberg

New York, March 26 – Output Services Group Inc. (OSG Billing Services) saw its credit facilities hit the secondary market on Monday, GreenSky LLC’s term loan B began trading following an upsizing and finalization of the spread at the low end of talk, and Chemours Co. broke after updating pricing on its debt and upsizing its euro term loan.

In more happenings, McDermott International Inc. reduced the size of its term loan, widened the spread and original issue discount and sweetened the call protection, and HealthChannels Inc. raised pricing on its term loan and adjusted the call premium.

Also, Rocket Software Inc. set the spread on its incremental first-lien term loan and repriced term loan at the low side of guidance and tightened the original issue discount on the incremental piece, and Loparex International Holding BV accelerated the commitment deadline on its credit facilities.

Furthermore, Consilio + Advanced Discovery (GI Revelation Acquisition LLC), SBA Communications Corp., Arch Coal Inc. and Townsquare Media Inc. released price talk with launch, and EmployBridge LLC, Ceridian HCM and Aspen Dental Management Inc. joined this week’s primary calendar.

Output Services frees up

Output Services Group’s credit facilities broke for trading on Monday, with the $242.5 million funded first-lien term loan and $50 million delayed-draw first-lien term loan quoted at par ¼ bid, par ¾ offered and the $52.5 million second-lien term loan quoted at 98½ bid, 99½ offered, according to a market source.

Pricing on the first-lien term loan debt is Libor plus 425 basis points with a 1% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 850 bps with a 1% Libor floor and was issued at a discount of 98.5. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the funded first-lien term loan was upsized from $230 million while the second-lien term loan was downsized from $65 million. Also, pricing on the first-lien term loan debt was lowered from Libor plus 450 bps and the discount was set at the tight end of the 99 to 99.5 talk.

The company’s $360 million of credit facilities also include a $15 million revolver.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt, add cash to the balance sheet and fund future acquisitions.

Output Services is a Ridgefield Park, N.J.-based provider of billing and customer communications services.

GreenSky tweaked, trades

GreenSky raised its seven-year term loan B to $400 million from $350 million and firmed pricing at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk, according to a market source.

As before, the term loan has a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Once final terms were in place, the term loan B made its way into the secondary market and levels were quoted at par bid, par ¾ offered, a trader added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan.

GreenSky is an Atlanta-based financial technology company.

Chemours firms, breaks

Chemours finalized pricing on its $900 million seven-year term loan at Libor plus 175 bps, the low end of the Libor plus 175 bps to 200 bps talk, and left the 0% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months unchanged, a market source said.

The term loan then freed to trade with levels quoted at 99 7/8 bid, par ¼ offered, another source added.

The company is also getting a euro seven-year term loan that was upsized to €350 million from €300 million, saw pricing firm at Euribor plus 200 bps, the low end of the Euribor plus 200 bps to 225 bps, and had the discount changed to 99.875 from 99.75. This tranche still has 0.5% floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt.

Chemours is a Wilmington, Del.-based provider of performance chemicals.

McDermott reworks loan

McDermott International trimmed its seven-year first-lien term loan (Ba2/BB-) to $2.06 billion from $2.15 billion, raised pricing to Libor plus 500 bps from talk in the range of Libor plus 400 bps to 425 bps, moved the original issue discount to 99 from 99.5 and extended the 101 soft call protection to one year from six months, according to a market source.

Furthermore, a maximum total leverage covenant of 4.25 times with step-downs was added to the previously covenant-light term loan, a springing maturity was added to six months inside of the six-year notes with stipulations, and the excess flow sweep was increased to 75% with step-downs from 50% with step-downs, the source said.

Changes were also made to the incremental, asset sale mandatory prepayments, movement of IP assets to non-loan parties, interest period, restricted payments, capital expenditure limitation and financial statements.

The term loan has a 1% Libor floor, and a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

McDermott lead banks

Barclays, Credit Agricole, Goldman Sachs Bank USA, MUFG, ABN Amro, RBC Capital Markets and Standard Chartered are leading McDermott’s term loan.

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

The term loan will be used to refinance existing debt, to cash collateralize letters of credit and to pay related fees and expenses.

The source explained that the size of the term loan was reduced due to incremental commitments to the letter of credit facility.

Pro forma first-lien net leverage is 0.7 times and net total leverage is 1.8 times.

McDermott is a Houston-based provider of integrated engineering, procurement, construction and installation, front-end engineering and design and module fabrication services for upstream field developments.

HealthChannels revised

HealthChannels widened pricing on its $250 million seven-year senior secured first-lien term loan to Libor plus 450 bps from Libor plus 400 bps, modified the call protection to a 101 hard call for one year with a change of control carve-out from a 101 soft call for six months, and made other lender friendly documentation changes, a market source said.

As before, the term loan has a 0% Libor floor and an original issue discount of 99.5.

The company’s $270 million of credit facilities (B3/B) also include a $20 million five-year revolver.

Commitments were due at 4 p.m. ET on Monday, the source added.

Jefferies LLC and Capital One are leading the deal that will be used to refinance existing debt and to fund a distribution to Vesey Street Capital Partners.

HealthChannels is a Fort Lauderdale, Fla.-based medical scribing, care coordination and real-time coding services company.

Rocket Software updated

Rocket Software firmed pricing on its $85 million incremental first-lien term loan due October 2023 and repricing of its existing $667 million first-lien term loan due October 2023 at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, and changed the original issue discount on the incremental tranche to 99.75 from 99.5, a market source remarked.

The term loan debt (B1/BB-) still has a 1% Libor floor and 101 soft call protection for six months, and the repricing is still offered at par.

Commitments are due at 5 p.m. ET on Tuesday, moved up from 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is leading the deal.

The incremental loan will be used to fund tuck-in acquisitions and the repricing will take the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

Rocket Software is a Waltham, Mass.-based software development firm.

Loparex moves deadline

Loparex accelerated the commitment deadline for its $350 million of credit facilities (B2/B) to noon ET on Tuesday from Wednesday, according to a market source.

The facilities consist of a $30 million five-year revolver, and a $320 million seven-year senior secured first-lien term loan 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.

Jefferies LLC, ABN Amro and Rabobank are leading the deal that will be used to refinance existing bank debt and repay shareholder loans.

Loparex is a developer and producer of specialty release liner product solutions.

Consilio + Advanced guidance

Also in the primary market, Consilio + Advanced Discovery held its bank meeting and Monday and announced price talk on its $415 million seven-year first-lien term loan (B+) and $150 million eight-year second-lien term loan (CCC+), according to a market source.

The first-lien term loan is talked at Libor plus 450 bps to 475 bps with a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 850 bps to 875 bps with a 0% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The $615 million of senior secured credit facilities also provide for a $50 million five-year revolver (B+).

Consilio + Advanced merging

Proceeds from the credit facilities will be used to fund the acquisitions of Consilio and Advanced Discovery by GI Partners, and combination of the two businesses.

Commitments are due on April 9, the source added.

Jefferies LLC, SunTrust Robinson Humphrey Inc., Goldman Sachs Bank USA and KKR Capital Markets are leading the debt.

The Advanced Discovery purchase is expected to close in late March and the Consilio acquisition and subsequent merger are expected to close in the second quarter, subject to usual and customary conditions.

Consilio is a provider of eDiscovery, document review and legal consulting services. Advanced Discovery is a provider of eDiscovery and risk management, partnering with law firms and corporations.

SBA reveals talk

SBA Communications came out with talk of Libor plus 175 bps to 200 bps with no Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $2.2 billion seven-year term loan B that launched with an afternoon lender call, a market source said.

The company’s $3.45 billion of credit facilities (BB) also include a $1.25 billion five-year revolver.

Commitments are due on April 4, the source added.

TD Securities (USA) LLC, Mizuho, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing credit facilities.

SBA is a Boca Raton, Fla.-based owner and operator of wireless communications infrastructure.

Arch Coal holds call

Arch Coal surfaced early in the day with plans to hold a lender call at 10:30 a.m. ET to launch a $298 million covenant-light first-lien term loan B due March 2024 talked at Libor plus 250 bps to 275 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 1% Libor floor.

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

Townsquare details emerge

Townsquare Media held its call in the morning, launching its $282.3 million covenant-light first-lien term loan (Ba2/BB-) due April 1, 2022 at talk of Libor plus 275 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

RBC Capital Markets LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 1% Libor floor.

Townsquare Media is a Greenwich, Conn.-based diversified media and entertainment and digital marketing services company.

EmployBridge on deck

EmployBridge set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $485 million seven-year covenant-light first-lien term loan B (B3/B-) talked at Libor plus 500 bps to 525 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 April 10, the source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets, Citizens Bank, Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

EmployBridge is a workforce specialist provider.

Ceridian readies deal

Ceridian HCM will hold a bank meeting at 2:30 p.m. ET in New York on Tuesday to launch $980 million of credit facilities (B3/B-), according to a market source.

The facilities consist of a $300 million revolver and a $680 million seven-year covenant-light term loan B, the source said.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to refinance existing debt.

Ceridian is a provider of cloud HCM technology and offers a broad range of human resources software and service solutions.

Aspen joins calendar

Aspen Dental Management plans to hold a lender call at 2 p.m. ET on Tuesday to launch $945 million of senior secured credit facilities, a market source said.

The facilities consist of a $75 million five-year revolver and an $870 million seven-year term loan B, the source added.

RBC Capital Markets, BMO Capital Markets, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance the company’s capital structure.

Aspen Dental is an East Syracuse, N.Y.-based dental support organization.

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