FullBeauty firms discounts, breaks; GTT Communications, Quincy Newspapers changes emerge

By Sara Rosenberg

New York, Oct. 15 – FullBeauty Brands finalized terms on its credit facility and then freed up for trading, with the first-lien debt quoted above its original issue discount and the second-lien debt bid in line with its issue price.

In more happenings, GTT Communications Inc. lifted pricing on its term loan B and widened the original issue discount, and Quincy Newspapers Inc. raised the spread on its B loan, revised the issue price and extended the call protection.

Also, Computer Sciences Government Services Inc., First Eagle Investment Management Inc. and eBay Enterprise Omni-Channel Logistics and Solutions Inc. released price talk with launch, Numericable-SFR SA approached lenders with U.S. and euro term loans, and Jarden Corp. joined the near-term calendar.

FullBeauty sets terms

FullBeauty firmed the original issue discount on its $820 million seven-year first-lien term loan (B1/B-) at 93, the tight end of revised talk of 92 to 93 but wide of initial talk of 99, and finalized the discount on its $345 million eight-year second-lien term loan (Caa1/CCC) at 87, basically in line with revised talk in the 87 area and wide of initial talk of 98 to 98.5, according to a market source.

Pricing on the first-lien term loan is Libor plus 475 basis points with a 1% Libor floor, and the debt has 101 soft call protection for one year. Pricing on the second-lien term loan is Libor plus 900 bps with a 1% Libor floor, and the tranche is non-callable for one year, then at 102 in year two and 101 in year three.

The company’s $1,265,000,000 credit facility also includes a $100 million asset-based revolver.

Previously in syndication, the spread on the first-lien term loan was increased from Libor plus 450 bps and the call protection was extended from six months, the spread on the second-lien term loan was lifted from Libor plus 850 bps and the call protection was revised from 102 in year one and 101 in year two, the revolver was downsized from $125 million, the MFN sunset was removed and the excess cash flow sweep was increased to 75%.

FullBeauty frees up

With final terms in place, FullBeauty’s credit facility made its way into the secondary market, with the first-lien term loan quoted at 94 bid, 95 offered and the second-lien term loan quoted at 87 bid, a trader said.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Jefferies Finance LLC and Deutsche Bank Securities Inc. are leading the deal, with JPMorgan left lead on the first-lien and Goldman left lead on the second-lien.

Proceeds will be used to help fund the buyout of the company by Apax Partners LLP from Charlesbank Capital Partners and Webster Capital. Charlesbank, however, will maintain a substantial ownership interest in the company.

Closing is expected during the fourth quarter, subject to customary conditions.

FullBeauty is a New York-based catalog retailer and online marketplace for plus-size consumers.

GTT revises deal

Back in the primary, GTT Communications increased pricing on its $400 million term loan B to Libor plus 525 bps from talk of Libor plus 450 bps to 475 bps and moved the original issue discount to 98 from 99, while leaving the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

Also, the starter basket on the incremental was changed to $75 million and the unlimited basket was set to a half turn inside closing date leverage, from initially proposed amounts of $100 million with unlimited at closing leverage, the MFN sunset was eliminated and the excess cash flow sweep was lifted to 75% when leverage is greater than 3 times, from 50%, the source said.

The company’s $450 million credit facility (B2/B+) also includes a $50 million revolver.

Commitments are due at 5 p.m. ET on Friday, extended from Thursday, the source added.

GTT buying One Source

Proceeds from GTT’s credit facility will be used to fund the acquisition of One Source Networks for $175 million, consisting of $165 million in cash and about $10 million in GTT common stock, and to refinance existing debt.

KeyBanc Capital Markets LLC and SunTrust Robinson Humphrey Inc. are leading the deal.

Pro forma total debt to annualized adjusted EBITDA is expected to be about 4.1 times.

GTT is a McLean, Va.-based provider of cloud networking services. One Source is an Austin, Texas-based provider of global data, internet, session initiation protocol trunking and managed services.

Quincy loan modified

Quincy Newspapers raised pricing on its $250 million seven-year term B (Ba2/B+) to Libor plus 450 bps from talk of Libor plus 375 bps to 400 bps, widened the original issue discount to 98 from 99, extended the 101 soft call protection to one year from six months and added a covenant to the previously covenant-light tranche, according to a market source.

Also, the incremental allowance was reduced to $25 million from $50 million.

As before, the term loan has a 1% Libor floor.

The company’s $280 million credit facility also includes a $30 million five-year revolver (Ba2/BB).

Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used by the Quincy, Ill.-based media company to fund the acquisition of nine television stations from Granite Broadcasting Corp. and Malara Broadcast Group and to refinance existing debt.

Computer Sciences sets talk

Also on the primary front, Computer Sciences Government Services held the bank meeting for its $1.25 billion seven-year covenant-light term loan B on Thursday morning, and with the event, talk on the debt was announced at Libor plus 300 bps to 325 bps with a 0.75% Libor floor and an original issue discount of 99.5, a market source remarked.

As previously reported, the term loan has 101 soft call protection for six months.

Commitments are due on Oct. 29, the source added.

The company’s $3.5 billion senior secured credit facility (Ba2/BB+/BBB) also includes a $500 million five-year revolver, a $500 million three-year term loan A-1 and a $1.25 billion five-year term loan A-2 that launched earlier this months to bank investors.

The revolver and term loan A-2 are talked at Libor plus 175 bps, and the term loan A-1 is talked at Libor plus 162.5 bps.

Computer Sciences leads

RBC Capital Markets LLC, Mitsubishi UFJ Financial Group (MUFG), Bank of America Merrill Lynch and Scotiabank are leading Computer Sciences Government’s credit facility, with RBC left lead on the term loan B and MUFG left lead on the revolver and term A debt.

Proceeds will be used to fund the $10.50 per share special cash dividend being paid in the spin-off of Computer Sciences Government Services from Computer Sciences Corp., to finance the $390 million acquisition of SRA by Computer Sciences Government Services from Providence Equity Partners and SRA’s founder, Ernst Volgenau, as well as members of its management team, and to refinance SRA’s existing $1 billion of net debt.

Computer Sciences Government is a Falls Church, Va., provider of IT services to the U.S. federal government. SRA is a Fairfax, Va.-based provider of IT and professional services to the U.S. federal government.

First Eagle guidance emerges

First Eagle Investment Management came out with price talk on its $1.5 billion senior secured credit facility (Ba1/BB+) with its morning bank meeting, a source said.

The $150 million five-year revolver is talked at Libor plus 325 bps to 350 bps with no Libor floor, and the $1.35 billion seven-year covenant-light term loan B is talked at Libor plus 350 bps to 375 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Commitments are due on Oct. 28, the source added.

Morgan Stanley Senior Funding Inc., HSBC Securities Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and UBS AG are leading the deal that will help fund the buyout of the company by Blackstone and Corsair Capital from TA Associate for a total enterprise value of about $4 billion.

Closing is expected in the fourth quarter, subject to receipt of consent by both First Eagle’s mutual fund board and fund shareholders, as well as customary regulatory approvals.

First Eagle is a New York-based asset management firm.

eBay launches

eBay Enterprise held its bank meeting and released price talk on its $700 million senior secured credit facility, according to a market source, who said commitments for the deal are due on Oct. 28.

The $60 million five-year revolver is talked at Libor plus 425 bps with no floor, the $540 million seven-year first-lien covenant-light term loan is talked at Libor plus 575 bps to 600 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, and the $100 million 7.5-year second-lien covenant-light term loan is talked at Libor plus 975 bps to 1,000 bps with a 1% Libor floor, a discount of 98 and call protection of non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will be used to help fund the buyout of the company by Permira, Sterling Partners and Longview Asset Management from eBay Inc. for $925 million.

Closing is expected in early November, subject to regulatory approvals and customary conditions.

eBay Enterprise is a King of Prussia, Pa.-based provider of retail-optimized commerce solutions, including the Magento platform, order management, fulfillment, customer care and marketing solutions.

Numericable-SFR holds call

Numericable-SFR hosted a lender call to launch a €1.1 billion-equivalent U.S. term loan due January 2023 and a €500 million term loan due January 2023, according to a market source.

The term loans are talked at Libor/Euribor plus 400 bps with a 0.75% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC, Credit Suisse Securities LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs and Morgan Stanley Senior Funding Inc. are leading the €1.6 billion-equivalent deal that will be used with cash on hand to fund a distribution to shareholders of €5.7 per ordinary share, or about €2.5 billion.

Net leverage will be less than 4 times following the distribution.

Numericable-SFR is a France-based broadband and mobile company.

Jarden coming soon

Jarden surfaced with plans to hold a lender call at 11 a.m. ET on Monday to launch a $200 million add-on term loan A, a market source remarked.

The company’s existing roughly $635 million term A due Dec. 17, 2019, is priced at Libor plus 175 bps.

Barclays, Credit Suisse Securities (USA) LLC and UBS AG are leading the deal that will be used to help fund the $1.5 billion acquisition of Visant Holding Corp. from KKR, aPriori Capital Partners and other stockholders.

Jarden has also received a commitment for $800 million in senior unsecured bridge loans for the acquisition, but that commitment will be reduced on a dollar-for-dollar basis by the proceeds from an offering of 10 million shares of common stock.

Closing is expected in the fourth quarter, subject to customary conditions.

Jarden is a Boca Raton, Fla.-based consumer products company. Visant is a Minneapolis-based marketing and publishing services enterprise servicing the school affinity, direct marketing, fragrance, cosmetic and personal care sampling and packaging and educational and trade publishing segments.

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