Solera, CPM break; VC GB, National Veterinary, WME IMG, Wall Street, ION Trading tweak deals

By Sara Rosenberg

New York, Feb. 22 – Solera Holdings Inc.’s U.S. term loan hit the secondary market on Wednesday above its issue price, and CPM Acquisition Corp.’s term loan B began trading after the spread finalized at the low end of guidance.

In more happenings, VC GB Holdings Inc. moved some funds between its first- and second-lien term loans, tightened the spread and original issue discount on the first-lien tranche, and set pricing on the second-lien tranche at the low side of talk.

Also, National Veterinary Associates revised issue prices for new money commitments on its term loan B-2 and its add-on second-lien term loan, and WME IMG LLC upsized its add-on first-lien term loan B.

Additionally, Wall Street Systems Inc. downsized its U.S. term loan while lifting pricing and upsized its euro term loan, ION Trading Finance Ltd. opted for less U.S. first-lien term loan debt in favor of more euro term loan borrowings, and Arch Coal Inc. accelerated the commitment deadline on its term loan B.

Furthermore, Epic Health Services/PSA Healthcare, CBS Radio Inc., CPI International Inc., Goodyear Tire & Rubber Co. and Affinity Gaming released price talk with launch, and Atrium Innovations Inc. came out with details on its new loan ahead of its lender call.

And, Quintiles IMS Inc., Warrior Met Coal Intermediate Holdco LLC, Restaurant Brands International Inc., Cologix Holdings Inc., Trader Corp., Manitowoc Foodservice Inc., Aspen Dental (ADMI Corp.), Equinox Holdings Inc. and Navex Global joined this week’s new issue calendar.

Solera frees up

Solera’s $1,789,000,000 term loan began trading on Wednesday, with levels quoted at par ¼ bid, par ¾ offered on the break and then it moved up to par ½ bid, par 7/8 offered, according to a market source.

Pricing on the term loan is Libor plus 325 basis points with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

The company is also getting a €640 million term loan priced at Euribor plus 300 bps with a 0.75% floor. This tranche was also issued at par and has 101 soft call protection for six months.

During syndication, pricing on the U.S. loan firmed at the tight end of the Libor plus 325 bps to 350 bps talk. In addition, the spread on the euro loan finalized at the low end of the Euribor plus 300 bps to 325 bps talk, and the issue price on the euro tranche was set at the tight end of the 99.875 to par talk.

Nomura Securities Co. Ltd. is the left lead on the deal that will be used to reprice existing U.S. and euro term loans down from Libor/Euribor plus 475 bps with a 1% floor.

Solera is a Westlake, Texas-based provider of software and services to the automobile insurance claims processing industry.

CPM updated, breaks

CPM Acquisition set pricing on its $310 million senior secured covenant-light term loan B due April 2022 at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source remarked.

With final terms in place, the debt freed up in the afternoon, and levels were quoted at par ½ bid, 101 offered, a trader added.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and Rabobank are leading the deal that will be used to reprice the company’s existing term loan B.

Closing is expected during the week of Feb. 27.

CPM is a supplier of process equipment used for oilseed processing and animal feed production.

Wabash trades

Also in the secondary market, Wabash National Corp.’s $189.5 million term loan was trading at par bid, par ¾ offered after breaking late Tuesday, a market source said.

Pricing on the loan is Libor plus 275 bps with no Libor floor, and it was issued at par. The loan has 101 soft call protection for six months.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a 1% Libor floor.

Wabash is a Lafayette, Ind.-based diversified industrial manufacturer and a producer of semi-trailers and liquid transportation systems.

VC GB changes emerge

Back in the primary market, VC GB Holdings increased its seven-year covenant-light first-lien term loan to $500 million from $490 million, lowered pricing to Libor plus 375 bps from talk of Libor plus 400 bps to 425 bps and revised the original issue discount to 99.5 from 99, according to a market source. This tranche still has a 1% Libor floor and 101 soft call protection for six months.

Regarding the eight-year covenant-light second-lien term loan, it was scaled back to $150 million from $160 million and pricing firmed at Libor plus 800 bps, the low end of the Libor plus 800 bps to 825 bps talk, while the 1% Libor floor, discount of 98.5 and hard call protection of 102 in year one and 101 in year two were left intact, the source said.

In addition, the company set the 50 bps MFN protection for 18 months, extended from 12 months, removed the $50 million carve-out from MFN and capped cost savings add-backs at 25%.

VC GB lead banks

Deutsche Bank Securities Inc. and Barclays are leading VC GB Holdings’ $650 million in first-and second-lien term loans.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to help fund AEA Investors LP’s investment in Visual Comfort alongside its current investment in Generation Brands.

Closing is expected on Feb. 28.

VC GB is a decorative lighting company.

National Veterinary tweaked

National Veterinary Associates tightened the issue price on new money commitments for its $670 million first-lien term loan B-2 due August 2021 to par from 99.5 and the issue price on its fungible $50 million add-on second-lien term loan due August 2022 to par from talk of 99.25 to 99.5, a market source said.

Pricing on the term loan B-2 is still Libor plus 350 bps with a 1% Libor floor and a par issue price for rolled term loan B and term loan B-1 commitments, and pricing on the second-lien term loan is still Libor plus 700 bps with a 1% Libor floor.

As before, the term loan B-2 has 101 soft call protection for six months, and the second-lien term loan has 101 hard call protection through October.

Bank of America Merrill Lynch, Jefferies Finance LLC, RBC Capital Markets and Nomura are leading the deal that will be used to refinance and reprice $594 million in term loan B and term loan B-1 borrowings, to repay revolver debt and to add cash to the balance sheet.

The existing term loan B due August 2021 is priced at Libor plus 375 bps with a 1% Libor floor and the existing term loan B-1 is priced at Libor plus 450 bps with a 1% Libor floor.

National Veterinary is an Agoura Hills, Calif.-based owner of freestanding veterinary hospitals.

WME IMG upsized

WME IMG raised its fungible add-on covenant-light first-lien term loan B (B1) to $250 million from $100 million, according to a market source.

The term loan B is priced at Libor plus 325 bps with a 1% Libor floor, and the add-on was offered at an original issue discount of 99.875.

Allocations went out on Wednesday, the source said.

KKR Capital Markets is leading the deal that will be used for general corporate purposes, and, because of the upsizing, to repay $150 million of second-lien term loan borrowings, the source said.

WME IMG is an entertainment, sports and fashion company based in Beverly Hills, Calif.

Wall Street restructures

Wall Street Systems cut its U.S. first-lien term loan to $231.6 million from $329.5 million and lifted pricing to Libor plus 350 bps from Libor plus 325 bps, a source remarked.

Also, the company raised its euro first-lien term loan to €372.1 million from €279.3 million, the source continued.

Pricing on the euro loan is still Euribor plus 325 bps, and both term loans still have a 1% floor and a par issue price.

UBS Investment Bank is leading the deal that will be used to reprice existing U.S. and euro term loans down from Libor/Euribor plus 375 bps with a 1% floor.

Allocations went out on Wednesday, the source added.

Wall Street Systems is a provider of treasury management, central banking and FX trade processing solutions with U.S. headquarters in New York.

ION Trading retranches

ION Trading Finance downsized its U.S. first-lien term loan to $290 million from $349.1 million and upsized its euro first-lien term loan to €707 million from €651 million, according to a market source.

As before, pricing on the loans is Libor/Euribor plus 300 bps with a 1% floor and a par issue price.

UBS Investment Bank is leading the deal that will be used to reprice existing U.S. and euro term loans down from Libor/Euribor plus 325 bps with a 1% floor.

Allocations went out on Wednesday, the source said.

ION Trading is a software provider of trading, treasury and workflow solutions.

Arch Coal moves deadline

Arch Coal changed the commitment deadline on its $250 million seven-year covenant-light first-lien term loan B (B1) to 5 p.m. ET on Monday from 5 p.m. ET on March 2, a market source said.

Talk on the term loan B is Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

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

Epic/PSA sets guidance

Also in the primary market, Epic Health Services/PSA Healthcare held its bank meeting on Wednesday, and with the event, price talk on its $585 million seven-year first-lien term loan (B2/B) and $240 million eight-year second-lien term loan (Caa2/CCC+) was announced, according to a market source.

Talk on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 800 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $900 million senior secured credit facility also includes a $75 million five-year revolver (B2/B).

Commitments are due at 5 p.m. ET on March 8, the source continued.

Epic/PSA buyout

Proceeds from Epic/PSA’s credit facility will be used to help fund the buyout of Epic Health by Bain Capital Private Equity from Webster Capital, the buyout of PSA by Bain Capital, and the merger or Epic Health and PSA. As part of the transaction, the current equity holders of PSA, including its senior management team and J.H. Whitney Capital Partners, its current majority owner, have agreed to roll over their current ownership interests into the newly combined company.

Barclays, RBC Capital Markets LLC, BMO Capital Markets and Goldman Sachs Bank USA are leading the deal, with Barclays left lead on the first-lien debt and RBC left lead on the second-lien debt.

Secured leverage is 4.3 times and total leverage is 6 times, the source added.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

Epic Health is a Dallas-based provider of home health care services to medically fragile children and adults. PSA is an Atlanta-based provider of pediatric and adult home health care services.

CBS Radio reveals talk

CBS Radio came out with talk of Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $500 million seven-year senior secured term loan B (Ba3/BB-) that launched with a lender call during the session, a market source remarked.

Commitments are due at 3 p.m. ET on March 2, the source added.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are leading the deal that is being done in connection with the merger of CBS Radio with Entercom Communications Corp. and will be used to refinance Entercom’s existing $465 million term loan B and pay down $28 million of Entercom’s convertible preferreds.

Closing is expected in the second half of this year, subject to approval by Entercom shareholders, regulatory approvals and other customary conditions.

The combined radio broadcasting company will be known as Entercom and will be based in Philadelphia.

CPI details surface

CPI International had its bank meeting in the morning at which the company launched a $127.7 million first-lien term loan due April 2021 and a $100 million second-lien term loan due April 2022, according to a market source.

The first-lien term loan is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 775 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on March 8.

UBS Investment Bank is leading the deal that will be used to refinance existing debt.

With this transaction, existing first-lien lenders are being offered a 25 bps amendment fee.

CPI is a Palo Alto, Calif.-based provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications.

Goodyear launches

Goodyear Tire & Rubber hosted a lender call during the session, launching a roughly $400 million second-lien term loan at talk of Libor plus 200 bps to 225 bps with no Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 0.75% Libor floor.

Goodyear is an Akron, Ohio-based tire company.

Affinity seeks add-on

Affinity Gaming launched a $50 million add-on second-lien term loan (Caa1) talked at Libor plus 825 bps with a 1% Libor floor and a par issue price, according to a market source.

The spread and the floor on the add-on matches existing second-lien term loan pricing.

Commitments are due on Tuesday, the source said.

Citizens Bank is leading the deal that will be used to repay revolver borrowings and to add cash to the balance sheet.

Affinity Gaming is a Las Vegas-based diversified casino gaming company.

Atrium size, talk disclosed

Atrium Innovations revealed that it will launch on its previously announced lender call at 11 a.m. ET on Thursday a fungible $190 million add-on first-lien term loan talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.5, a market source said.

Also, with this transaction, pricing on the company’s existing U.S. first-lien term loan will be increased to Libor plus 350 bps with a 1% Libor floor from Libor plus 325 bps with a 1% Libor floor.

Including the add-on, the U.S. first-lien term loan will total $530.4 million.

New money commitments are due at 5 p.m. ET on March 8, the source added.

RBC Capital Markets, Deutsche Bank Securities Inc., National Bank of Canada and TD Securities are leading the add-on loan that will be used to repay the company’s existing euro first-lien term loan and second-lien term loan.

Permira is the sponsor.

Atrium is a Westmount, Quebec-based developer and manufacturer of nutritional health products.

Quintiles joins calendar

Quintiles IMS plans to hold a lender call on Thursday to launch a $2 billion term loan due March 2024 and a €1 billion term loan due March 2024 talked at Libor/Euribor plus 200 bps to 225 bps with a 0.75% floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on March 2, the source said.

J.P. Morgan Securities LLC is the left lead on the deal (Ba1/BBB-) that will be used with €850 million in senior notes due 2025 to refinance an existing term loan B and for general corporate purposes, which may include share repurchases and future acquisitions. The transaction will result in an extended, upsized and repriced term B loan facility.

Quintiles is an information and technology-enabled healthcare service provider.

Warrior Met on deck

Warrior Met Coal set a bank meeting for 3 p.m. ET in New York on Thursday to launch a $350 million seven-year covenant-light first-lien term loan B (B3) that includes 101 soft call protection for one year, according to a market source.

Commitments are due at 5 p.m. ET on March 9, the source said.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., BMO Capital Markets and RBC Capital Markets are leading the deal that will be used to fund a shareholder distribution.

Warrior Met Coal is a Brookwood, Ala.-based producer and exporter of metallurgical coal.

Restaurant Brands timing

Restaurant Brands scheduled a lender call for Thursday to launch its $1.3 billion incremental senior secured covenant-light term loan due Feb. 17, 2024, according to sources.

The incremental term loan is talked at Libor plus 225 bps with a 1% Libor floor, in line with existing term loan pricing, and an original issue discount of 99.25 to 99.5, sources said.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used with about $600 million of cash on hand to fund the acquisition of Popeyes Louisiana Kitchen Inc. for $79 per share in cash, or $1.8 billion.

Closing is expected by early April, subject to regulatory approvals, the receipt of a majority of Popeyes shares on a fully diluted basis in a tender offer and customary conditions.

Restaurant Brands is an Oakville, Ont.-based quick service restaurant company. Popeyes is an Atlanta-based quick service restaurant company.

Cologix readies deal

Cologix Holdings scheduled a bank meeting for 2 p.m. ET on Thursday to launch a $570 million senior secured credit facility, a market source remarked.

The facility consists of a $75 million revolver, a $300 million first-lien term loan, a $60 million delayed-draw first-lien term loan and a $135 million second-lien term loan, the source added.

Barclays, TD Securities (USA) LLC and Jefferies Finance LLC are leading the deal that will be used to help fund the acquisition of Cologix by Stonepeak Infrastructure Partners. Existing investors, including Grant van Rooyen, the van Rooyen Group, company management, Columbia Capital and Greenspring Associates will continue to hold a material interest in the company.

Closing is subject to regulatory approvals.

Cologix is a Denver-based data center and interconnection solutions provider.

Trader plans repricing

Trader Corp. will hold a lender call at 2 p.m. ET on Thursday to launch a $395 million first-lien term loan that will be used to reprice an existing first-lien term loan from Libor plus 400 bps with a 1% Libor floor, according to a market source.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Macquarie Capital (USA) Inc. are leading the deal.

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

Manitowoc deal emerges

Manitowoc Foodservice plans to hold a lender call on Thursday to launch an $825 million term loan B talked at Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

J.P. Morgan Securities LLC and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 1% Libor floor.

Manitowoc Foodservice is a New Port Richey, Fla.-based commercial foodservice equipment company.

Aspen Dental coming soon

Aspen Dental set a lender call for noon ET on Thursday to launch a $175 million add-on term loan B due 2022, according to a market source.

RBC Capital Markets is leading the deal that will be used to fund a dividend.

American Securities is the sponsor.

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

Equinox refinancing

Equinox Holdings will host a lender meeting on Thursday to launch a refinancing of its existing credit facility, a market source remarked.

Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are leading the deal.

Equinox is a New York-based exercise and fitness company.

Navex sets call

Navex Global scheduled a lender call for Thursday to launch a repricing of its first-lien term loan, according to a market source.

Antares Capital is leading the deal that will reprice the first-lien term loan from Libor plus 475 bps with a 1% Libor floor.

Navex Global is a Lake Oswego, Ore.-based provider of ethics and compliance software, content and services.

On Assignment closes

In other news, On Assignment Inc. announced in a news release the completion of its $656 million term loan B, the increase of its revolver size to $200 million from $150 million and the extension of its revolver maturity to Feb. 21, 2022.

Pricing on the term loan B is Libor plus 225 bps with no Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Wells Fargo Securities LLC led the deal.

Proceeds from the term loan B were used to reprice an existing term loan down from Libor plus 275 bps with a 0.75% Libor floor.

On Assignment is a Calabasas, Calif.-based provider of diversified professional staffing solutions.

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