NEW Asurion, Trader, Truck Hero, Oasis break; Valeant gains; SolarWinds, WaveDision tweaked

By Sara Rosenberg

New York, Aug. 10 – In the secondary market on Wednesday, deals from NEW Asurion Corp., Trader Corp., Truck Hero Inc. and Oasis Outsourcing Holdings Inc. freed to trade, and Valeant Pharmaceuticals International Inc.’s term loans were a bit stronger as details on the company’s amendment proposal surfaced.

And, over in the primary market, SolarWinds Inc. increased the size of its U.S. term loan B and cancelled plans for a euro term loan B, WaveDivision Holdings LLC tightened the original issue discount on its add-on first-lien term loan, and Eastern Power LLC and Builders FirstSource Inc. brought repricing transactions to market.

NEW Asurion starts trading

NEW Asurion’s $550 million five-year HoldCo unsecured PIK contingent covenant-light term loan (Caa1/CCC+) broke for trading on Wednesday, with levels quoted at 101 bid, 102 offered, according to a trader.

Pricing on the term loan is Libor plus 900 basis points plus 75 bps for any PIK amount and a 1% Libor floor. The loan was sold at an original issue discount of 99 and is non-callable for one year, then at 102 in year two and 101 in year three.

On Tuesday, the spread on the term loan was reduced from Libor plus 950 bps and the discount was tightened from talk of 98 to 98.5.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to fund an equity tender offer and to pay transaction-related fees and expenses.

Closing is expected on Aug. 31.

NEW Asurion is a Nashville-based provider of consumer product protection programs.

Trader hits secondary

Another deal to free up was Trader Corp., with its C$510 million seven-year first-lien term loan B (B2/B) quoted at 99¾ bid, 100½ offered, a trader remarked.

Pricing on the first-lien term loan, which will be issued in U.S. dollars, is Libor plus 400 bps 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.

On Tuesday, the first-lien term loan pricing was trimmed from talk of Libor plus 425 bps to 450 bps, and the MFN sunset was eliminated.

The company’s C$760 million credit facility also includes a C$50 million revolver (B2/B) and a C$200 million privately placed second-lien term loan (Caa2/CCC+).

Goldman Sachs & Co., J.P. Morgan Securities LLC, UBS Investment Bank and Macquarie Capital are leading the deal, with Goldman left on the first-lien debt and JPMorgan left on the second-lien loan.

Proceeds will be used to help fund the roughly C$1.58 billion buyout of the company by Thoma Bravo LLC, which is expected to close by the fourth quarter, subject to customary conditions.

Trader Corp. is an Etobicoke, Ont.-based digital automotive marketplace.

Truck Hero tops OID

Truck Hero’s $525 million seven-year term loan B (B2/B) also emerged in the secondary market, with levels quoted at 99½ bid, par offered, according to a trader.

Pricing on the term loan, which includes a $115 million delayed-draw tranche, is Libor plus 475 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year, and the delayed-draw portion has a ticking of the full spread plus the floor starting on day 31.

During syndication, the spread on the loan firmed at the tight end of the Libor plus 475 bps to 500 bps talk, the call protection was extended from six months, and the ticking fee was revised from the full spread from days 31 to 60 and the full spread plus the floor thereafter.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Antares Capital, Ares, Citizens Bank, KeyBanc Capital Markets, Raymond James and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and for acquisition financing.

Truck Hero is an Ann Arbor, Mich.-based designer and manufacturer of accessories for pickup trucks.

Oasis frees up

Oasis Outsourcing’s fungible $75 million incremental first-lien term loan due Dec. 31, 2021 began trading as well, with levels seen at par bid, 100½ offered, a trader remarked.

Pricing on the incremental term loan is still Libor plus 475 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75, after tightening this past Monday from 99.5.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to fund the acquisition of a Tennessee-based Professional Employer Organization for about $33 million and to opportunistically pay down the outstanding $60 million second-lien term loan.

With the transaction, the company is seeking an amendment that will among other things, reset the 101 soft call protection on the first-lien loan for six months, revise the incremental allowance and permit the repayment of the second-lien term loan.

Lenders are being offered a 12.5-bps amendment fee.

Oasis Outsourcing, a Stone Point Capital owned company, is a West Palm Beach, Fla.-based provider of comprehensive and cost-effective HR outsourcing services to small- and medium-sized businesses.

Valeant rises

Also in trading, Valeant Pharmaceuticals’ term loans gained a bit more ground as details on the company’s amendment proposal were announced in connection with a lender call taking place during the session, traders remarked.

The term loan F was quoted by one trader at par bid, 100½ offered, up from 99¾ bid, 100 1/8 offered, and the term loans C, D and E were all quoted at 99 7/8 bid, 100 3/8 offered, up from 99½ bid, 99 7/8 offered.

A second trader, meanwhile, had the term loan F at 100 1/8 bid, 100 5/8 offered, up from 99¾ bid, 100¼ offered, and the term loans C, D and E at par bid, 100½ offered, up from 99 3/8 bid, 99 7/8 offered.

The debt had also strengthened on Tuesday as the company mentioned plans for an amendment on its earnings call and said that it is looking at about $8 billion transaction value in non-core asset sales.

Prior to the earnings call, the term loan F was quoted at 99 bid, 99½ offered, the term loans C and D were quoted at 98 3/8 bid, 98 7/8 offered, and the term loan E was quoted at 98¼ bid, 98¾ offered.

Valeant amendment details

Under the amendment proposal, Valeant is asking to change its minimum interest coverage ratio maintenance covenant to 2 times and modify the definition of indebtedness to permit the repayment of existing credit facilities with senior unsecured notes, a source said.

The amendment will also allow for the maturity of any secured notes issued to be at least five years from issuance as long as proceeds are used to repay existing term loans and will remove the limitation on asset sales of 4% of consolidated total assets in any fiscal year.

Lenders are being offered a 25-bps amendment fee, and, according to the trader, a 50-bps increase in spread across all loan tranches.

Barclays is leading the deal.

Lender consents and amendment documentation are due at 2 p.m. ET on Aug. 17.

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

SolarWinds retranches

Switching to the primary market, SolarWinds raised its U.S. senior secured seven-year term loan B to $1.7 billion from $1,435,000,000 and terminated plans for a €230 million senior secured seven-year term loan B, according to a market source.

As before, the term loan is talked at Libor plus 450 bps to 475 bps with a 1% floor and 101 soft call protection for six months.

Goldman Sachs Bank USA is leading the deal that will be used to reprice existing term loan B debt from Libor/Euribor plus 550 bps with a 1% floor.

Old money is still offered at par, with a 101 soft call paid, and new money is still offered at an original issue discount of 99.5.

Commitments are due at 5 p.m. ET on Thursday, the source said.

SolarWinds is an Austin, Texas-based provider of IT network and systems infrastructure management software.

WaveDivision updates deal

WaveDivision modified the original issue discount on its fungible $125 million add-on first-lien term loan (Ba3) to 99.875 from talk of 99.5 to 99.75, and left pricing at Libor plus 300 bps with a 1% Libor floor, according to a market source.

The first-lien term loan debt is still getting 101 soft call protection for six months.

Commitments were due at 4 p.m. ET on Wednesday, the source said.

Jefferies Finance LLC is leading the loan that will be used for general corporate purposes.

WaveDivision is a Kirkland, Wash.-based owner and operator of broadband cable systems.

Eastern Power holds call

Eastern Power emerged in the morning with plans to hold a lender call at 11 a.m. to launch a repricing of its $1,501,912,314 senior secured term loan B due Oct. 2, 2021, a market source remarked.

Talk on the repriced term loan B is Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, the source continued.

The transaction will take term loan B pricing down from Libor plus 450 bps with a 1% Libor floor.

Commitments/consents are due on Aug. 17, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal.

Eastern Power, formerly known as TPF II Power LLC, is an owner of gas-fired electric generating stations.

Builders FirstSource repricing

Builders FirstSource held a lender call at 9:30 a.m. ET on Wednesday to launch a $472 million term loan B due July 31, 2022 talked at Libor plus 375 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 Friday, the source continued.

Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to reprice the company’s existing term loan B from Libor plus 500 bps with a 1% Libor floor.

The term loan B is currently sized at $596 million but will be paid down to $472 million with a portion of the proceeds from the company’s recently priced $750 million senior secured notes offering.

Builders FirstSource is a Dallas-based building materials manufacturer and supplier.

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