Ufinet, ITP Aero, Tricor, Mobileum, Emerald EMS, Confluent, Dodge Construction break

By Sara Rosenberg

New York, Feb. 10 – Ufinet (Zacapa) trimmed pricing on its first-lien term loan, added a step-down and finalized the original issue discount at the tight end of talk, and ITP Aero cut the spread on its first-lien term loan, added a step-down and revised the issue price, and then these deals freed to trade on Thursday.

Also, before breaking for trading, Tricor Group (Thevelia (US) LLC) set the spread on its first-lien term loan at the low end of talk but finalized the original issue discount at the wide end, and Mobileum Inc. (Matrix Parent Inc.) firmed pricing on its first- and second-lien term loans, modified the original issue discount on the second-lien tranche and cancelled plans for a delayed-draw first-lien loan.

In addition, Emerald EMS upsized its first-lien term loan, sweetened the call protection and shortened the maturity, and Confluent Medical Technologies Inc. set pricing on its term loan at the low side of talk and removed step-downs ahead of hitting the secondary market, and Dodge Construction Network’s (Dodge Data & Analytics LLC) bank debt broke as well.

In more happenings, East West Manufacturing finalized the spread on its term loans at the high side of guidance, removed some step-downs and reworked documentation, and Foley Products Co. LLC set the spread on its first-lien term loan at the high side of guidance and made some documentation changes.

Furthermore, Laureate Education Inc. and Press Ganey (Azalea TopCo Inc.) released price talk with launch, and Hexion Holdings Corp. and Viasat Inc. joined the near-term primary calendar.

Ufinet flexes, trades

Ufinet reduced pricing on its $1.135 billion seven-year covenant-lite first-lien term loan (B2/B-) to SOFR plus 425 basis points from SOFR plus 450 bps, added a 25 bps step-down at 0.5x inside closing first-lien net leverage and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The 0.5% floor and 101 soft call protection for six months on the term loan were unchanged.

Recommitments were due at 11 a.m. ET on Thursday and the term loan broke in the afternoon, with levels quoted at 99¾ bid, par offered, another source added.

Credit Suisse Securities (USA) LLC, Barclays, UBS Investment Bank, Natixis, Bank of Nova Scotia, Santander and Credit Agricole are leading the deal that will be used to fund a majority investment in the company by the Seventh Cinven Fund for an enterprise value of about €2.5 billion.

Ufinet is a Madrid-based provider of fiber infrastructure and transmission services to telecom operators.

ITP revised, frees

ITP Aero trimmed the spread on its $666.7 million (€575 million equivalent) seven-year first-lien term loan (B2/B) to SOFR plus 400 bps from talk in the range of SOFR plus 425 bps to 450 bps, added a 25 bps step-down at 0.5x inside closing first-lien net leverage and tightened the original issue discount to 99.5 from 99, a market source said.

The term loan still has a 0.5% floor, 101 soft call protection for six months and ticking fees of half the margin from days 61 to 120 and the full margin thereafter.

Recommitments were due at noon ET on Thursday and the term loan started trading in the afternoon, with levels quoted at 99¾ bid, par ¼ offered, another source added.

The company’s credit facilities also include a €100 million euro revolver.

Credit Suisse, RBC Capital Markets, Santander, BBVA, Goldman Sachs and Standard Chartered are leading the deal that will be used to help fund the buyout of the company by Bain Capital Private Equity from Rolls-Royce for about €1.7 billion.

ITP Aero is a Zamudio, Spain-based aerospace and engine component supplier.

Tricor updated, breaks

Tricor Group set pricing on its $760 million seven-year first-lien term loan (B2/B/B+) at SOFR+CSA plus 400 bps, the low end of the SOFR+CSA plus 400 bps to 425 bps talk, and firmed the original issue discount at 99, the wide end of the 99 to 99.5 talk, a market source remarked.

The first-lien term loan has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, 101 soft call protection for six months, and ticking fees of half the margin from days 61 to 90 and the full margin thereafter.

In the afternoon, the first-lien term loan freed to trade, with levels quoted at 99¼ bid, par offered, another source added.

The company is also getting a $260 million pre-placed second-lien term loan.

Barclays, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., Nomura, MUFG, Credit Agricole and Standard Chartered are leading the deal that will help fund the buyout of the Hong Kong-based business expansion specialist by Baring Private Equity Asia from Permira in a transaction with an enterprise value of $2.76 billion.

Closing is expected early in the second quarter, subject to regulatory approvals.

Mobileum reworked

Mobileum set pricing on its $380 million seven-year first-lien term loan at SOFR+CSA plus 500 bps, the high end of the SOFR+CSA plus 475 bps to 500 bps talk, and terminated plans for a $100 million delayed-draw for 18 months first-lien term loan that was being sold as a strip with the funded tranche and had ticking fees of half the spread from days 46 to 90 and the full spread thereafter, according to a market source.

The company also cut the spread on its $160 million eight-year second-lien term loan to SOFR+CSA plus 800 bps from SOFR+CSA plus 825 bps but widened the original issue discount to 98.25 from 98.5, the source said.

And, the 25 bps leverage-based step-down was removed from both the first- and second-lien term loans.

The term loans still have a 0.75% floor and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, the first-lien term loan still has an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan still has hard call protection of 102 in year one and 101 in year two.

The company’s now $595 million of senior secured credit facilities also include a $55 million five-year revolver.

Mobileum frees up

Recommitments for Mobileum’s loans were due at 2:30 p.m. ET on Thursday and the debt broke in the later in the day, with the first-lien term loan quoted at 99 bid, par offered and the second-lien term loan quoted at 98¼ bid, 99¼ offered, another source added.

Jefferies LLC, Macquarie Capital (USA) Inc., UBS Investment Bank, Antares Capital, KKR Capital Markets, Barclays and Stifel are leading the deal that will be used to fund the acquisition of a majority stake in the company by H.I.G. Capital.

Mobileum is a Cupertino, Calif.-based provider of telecom analytics for roaming, security and risk management and end-to-end domestic and roaming testing solutions.

Emerald upsized, breaks

Emerald EMS raised its first-lien term loan to $265 million from $250 million, changed the call protection to a 101 hard call for one year from a 101 soft call for six months and shortened the maturity to six years from seven years, a market source said.

Pricing on the term loan remained at SOFR+CSA plus 625 basis points with a 1% floor and an original issue discount of 98. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The company’s now $310 million of credit facilities (B3/B-) also include a $45 million revolver.

During the session, the term loan freed to trade, with levels quoted at 98½ bid, par offered, another source added.

UBS Investment Bank and Barclays are leading the deal that will be used to support the recently completed buyout of the company by Crestview Partners.

Emerald EMS is a Salem, N.H.-based high-tech electronics manufacturing services and design firm.

Confluent modified, trades

Confluent Medical finalized pricing on its $395 million seven-year term loan (B2/B) at SOFR plus 375 bps, the low end of the SOFR plus 375 bps to 400 bps talk, and removed the 25 bps step-downs at 0.5x and 1x inside closing date first-lien net leverage, a market source remarked.

The term loan still has a 0.5% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

During market hours, the term loan started trading, with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

JPMorgan Chase Bank, Barclays, Credit Suisse Securities (USA) LLC, Jefferies LLC and Regions Bank are leading the deal that will be used to help fund the buyout of the company by TPG Capital. Existing investor Ampersand Capital Partners will retain a substantial minority interest in the company.

Confluent Medical is a Scottsdale, Ariz.-based materials science, development and manufacturing partner to medical device manufacturers.

Dodge hits secondary

Dodge Construction’s bank debt broke for trading in the morning, with the $455 million seven-year covenant-lite first-lien term loan (B2/B-) quoted at 98½ bid, 99 offered, according to a market source.

Pricing on the first-lien term loan is SOFR+CSA plus 475 bps with a 0.5% floor and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for one year.

The company is also getting a $130 million eight-year covenant-lite second-lien term loan (Caa2/CCC) priced at SOFR+CSA plus 825 bps with a 0.5% 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, pricing on the first-lien loan firmed at the high end of the SOFR plus 450 bps to 475 bps talk, the discount widened from 99 and the call protection was extended from six months, pricing on the second-lien loan finalized at the high end of the SOFR plus 800 bps to 825 bps talk, and CSA on both loans was changed to 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate from just 10 bps. Also, pricing step-downs were removed, and revisions were made to, among other things, MFN, general debt basket, incremental, general restricted payments basket, unlimited restricted payments, EBITDA and excess cash flow step-downs.

Dodge recapitalizing

Dodge Construction is using the new term loans to help fund a recapitalization in connection with a significant new equity investment from Clearlake Capital Group LP.

At closing, Clearlake will be an equal partner with the company’s existing investor, Symphony Technology Group.

Deutsche Bank Securities Inc., UBS Investment Bank, Wells Fargo Securities LLC, BMO Capital Markets and RBC Capital Markets are leading the first-lien debt, with Deutsche the left lead. UBS and Deutsche are the bookrunners on the second-lien debt, with UBS the left lead.

Closing is expected during the week of Feb. 14.

Dodge Construction is a Hamilton, N.J.-based data platform supporting the commercial construction industry.

East West tweaked

In other news, East West Manufacturing set pricing on its $275 million seven-year covenant-lite term loan B and $40 million delayed-draw term loan at SOFR plus 575 bps, the high end of the SOFR plus 550 bps to 575 bps talk, and removed a 25 bps step-down at 5x leverage and a 25 bps step-down upon an initial public offering, leaving one 25 bps step-down at 4.5x leverage, according to a market source.

Furthermore, ticking fees were modified to half the margin from days 46 to 90 and the full margin thereafter from 1% starting on day 91, changes were made to MFN, incremental, excess cash flow sweep, restricted payments, investments and EBITDA, and J. Crew, Chewy and Serta protections and quarterly calls were added.

The 0.75% floor, original issue discount of 99 and 101 soft call protection for six months on the term loan debt were unchanged.

The company’s $355 million of credit facilities (B3/B-) also include a $40 million five-year revolver.

KeyBanc Capital Markets, ING and TD Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by MSD Partners.

East West is an Atlanta-based integrated design, manufacturing, and distribution services partner for original equipment manufacturers and distributors.

Foley firms terms

Foley Products finalized pricing on its $370 million seven-year covenant-lite first-lien term loan (B2/B) at SOFR+CSA plus 475 bps, the high end of the SOFR+CSA plus 450 bps to 475 bps talk, a market source remarked.

Additionally, MFN was changed to 50 bps for life from 50 bps for 12 months and some carve-outs were removed, and incremental was revised to $54.375 million and 75% of EBITDA from $72.5 million and 100% of EBITDA, the source continued.

As before, the term loan has a 0.5% floor, an original issue discount of 99, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC and Truist are leading the deal that will be used to recapitalize Foley in conjunction with a minority investment from Oaktree Capital for a 37% stake in the company.

Foley is a Columbus, Ga.-based producer of precast concrete products.

Laureate guidance

Laureate Education held its lender call on Thursday morning and announced talk on its $500 million seven-year term loan B at SOFR+CSA plus 400 bps to 425 bps with a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at noon ET on Feb. 17, the source added.

Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal that will be used to fund a distribution to shareholders.

Laureate Education is a Miami-based provider of higher education programs and services.

Press Ganey talk

Press Ganey came out with talk of SOFR+CSA plus 375 bps with a 0.75% floor and an original issue discount of 99 to 99.5 on its non-fungible $400 million incremental first-lien term loan (B2/B-) due July 25, 2026 that launched with a call in the afternoon, a market source said.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on Feb. 17, the source added.

Barclays, Goldman Sachs Bank USA and BMO Capital Markets are leading the deal, which will be used to help fund the acquisition of Forsta, a provider of insight and analytics software and services to enterprise customers and market research professionals.

Press Ganey is a provider of patient experience analytics and performance improvement solutions to health care organizations, delivered through a proprietary software suite.

Hexion readies deal

Hexion will hold a lender call at 11 a.m. ET on Tuesday to launch a $1.4 billion first-lien term loan (B2), according to a market source.

The company is also getting a $425 million privately placed second-lien term loan (Caa2), the source said.

Goldman Sachs Bank USA, RBC Capital Markets, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Deutsche Bank Securities Inc., Barclays and Jefferies LLC are leading the deal that will be used with equity to fund the buyout of the company by American Securities LLC for $30 per share.

Closing is expected in the first half of this year, subject to shareholder and regulatory approvals and other customary conditions.

Hexion is a Columbus, Ohio-based supplier of thermoset resins.

Viasat on deck

Viasat set a lender call for 11 a.m. ET on Friday to launch a $700 million term loan B (Ba3/BB/BB+) talked at SOFR plus 375 bps with a 0.5% 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 Feb. 17, the source added.

JPMorgan Chase Bank is the left lead on the deal. BofA Securities Inc. is the administrative agent.

The term loan will be used to repay revolver borrowings and for general corporate purposes.

Viasat is a Carlsbad, Calif.-based communications company.

© 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.