Cineworld, Internap break; Cable & Wireless gains ground; Matrix, Axilone tweak deals

By Sara Rosenberg

New York, Feb. 7 – Cineworld Group plc firmed the issue price on its euro term loan B at the tight end of revised guidance, and then its U.S. and euro term loan tranches freed up for trading on Wednesday.

Also, Internap Corp.’s incremental first-lien term loan emerged in the secondary market during the session, and Cable & Wireless Communications plc’s term loan B-4 rose in trading from its recent break levels.

Back in the primary market, Matrix Medical increased the size of its first-lien term loan B, trimmed the spread, cut the Libor floor and modified the original issue discount, and Axilone reworked its first-and second-lien term loan sizes and updated pricing.

In addition, TransDigm Inc. and HarbourVest Partners LP revealed price talk with launch, and Party City Holdings Inc., Overseas Shipholding Group Inc., Boyd Corp., Sparta Systems Inc. and Charter NEX US Inc. joined this week’s primary calendar.

Cineworld updated

Cineworld Group finalized the issue price on its €607.6 million seven-year covenant-light term loan B at par, the tight end of the revised talk of 99.75 to par and tight of initial talk of 99.5, according to a market source.

Pricing on the euro loan is Euribor plus 262.5 basis points with a 0% floor.

The company’s roughly $4,375,000,000 equivalent of senior secured credit facilities (B1/BB-) also include a $300 million five-year revolver and a $3,325,000,000 seven-year covenant-light term loan B priced at Libor plus 250 bps with a 0% Libor floor and an original issue discount of 99.75.

Both term loans have a 25 bps step-down when net secured leverage is less than 3.5 times and 101 soft call protection for six months.

On Tuesday the U.S. term loan was upsized from $3 billion, the spread was cut from Libor plus 275 bps and the original issue discount was revised from 99.5, and the euro term loan was upsized from $600 million equivalent and pricing was trimmed from Euribor plus 300 bps.

With the U.S. and euro loan upsizings, the company eliminated plans for a pound sterling seven-year covenant-light term loan B talked at Libor plus 350 bps with a 0% Libor floor and 101 soft call protection for six months. Prior to the bank meeting, it was said that the total amount of term loan B debt would be about $4 billion equivalent, including a carve-out of $1 billion across euro and pound sterling with the split to be determined.

Cineworld hits secondary

With final terms in place, Cineworld’s bank debt broke for trading on Wednesday, with the U.S. term loan quoted at par ¼ bid, par ½ offered and the euro term loan quoted at par ½ bid, 101 offered, sources added.

Barclays and HSBC Bank plc are the global coordinators on the debt, with Barclays left on the U.S. loan and HSBC left on the euro loan. Barclays is the administrative agent.

Proceeds will be used with around $2.27 billion in equity to fund the acquisition of Regal Entertainment Group for $23.00 in cash for each share of class A and class B common stock, for a total transaction value of $5.9 billion, including the assumption of debt and net of cash acquired, and to refinance existing debt.

Closing is targeted for early March.

Net leverage is expected to be around 4 times.

Cineworld is a London-based cinema operator. Regal is a Knoxville, Tenn.-based motion picture exhibitor.

Internap frees up

Internap’s fungible $135 million incremental first-lien term loan (B3/B) due April 6, 2022 also began trading, with levels seen at 101 bid, 101¾ offered, a market source said.

Like the existing term loan, the incremental loan is priced at Libor plus 700 bps with a 1% Libor floor and has 101 soft call protection until April 2018. The incremental loan was sold at an original issue discount of 99.5.

Jefferies LLC is leading the deal that will be used to fund the $132 million acquisition of SingleHop LLC, a Chicago-based provider of automated and on-demand IT infrastructure.

Closing is expected this quarter, subject to customary conditions.

Including the incremental loan, the first-lien term loan totals $433.5 million.

Internap is an Atlanta-based provider of internet infrastructure.

Cable & Wireless rises

Also in trading, Cable & Wireless Communications’ $1,875,000,000 term loan B-4 due January 2026 moved up to par ¼ bid, par ½ offered from the par bid, par 3/8 offered levels that were seen when then debt freed to trade late Tuesday, a trader remarked.

Pricing on the loan is Libor plus 325 bps with a 0% Libor floor, and it was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1,825,000,000 and the spread was set at the high end of the Libor plus 300 bps to 325 bps talk.

J.P. Morgan, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Bank of Nova Scotia, Societe Generale, BNP Paribas Securities Corp. and FirstCaribbean are leading the deal that will be used to refinance an existing term loan B-3 due January 2025, and, because of the upsizing, to repay revolver borrowings. Scotia is the administrative agent.

Cable & Wireless is a London-based telecommunications company owned by Liberty Global.

Matrix Medical revised

Returning to the primary market, Matrix Medical lifted its “massively oversubscribed” seven-year first-lien term loan B to $330 million from $310 million, reduced pricing to Libor plus 475 bps from talk in the range of Libor plus 500 bps to 525 bps, cut the Libor floor to 0% from 1% and changed the original issue discount to 99.75 from talk in the range of 99 to 99.5, a market source said.

Furthermore, the MFN sunset was removed and a requirement for an annual lender call was added.

As before, the term loan still 101 soft call protection for six months.

The company’s now $350 million of credit facilities also include a $20 million revolver.

Recommitments were due at the end of the day on Wednesday and allocations are expected on Friday, the source continued.

SunTrust Robinson Humphrey Inc. and Cantor Fitzgerald are leading the deal that will help fund the acquisition of HealthFair, a Winter Springs, Fla.-based provider of mobile health assessment and diagnostic testing services, and refinance existing debt. The term loan upsizing is replacing a $20 million equity contribution.

Gross leverage is 4.34 times and net leverage is 4.12 times, the source added.

Matrix is a Scottsdale, Ariz.-based provider of in-home care to help health plans balance cost and revenue, grow membership and improve the quality of care.

Axilone restructures

Axilone lifted its seven-year first-lien term loan to €290 million equivalent from €265 million and of that amount, €45 million equivalent is now a U.S. tranche carve-out, according to a market source.

The U.S. first-lien term loan is talked at Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months.

Pricing on the euro first-lien term loan was cut to Euribor plus 375 bps from Euribor plus 400 bps and the discount talk was changed to a range of 99.75 to par from 99.5, while the 0% floor and 101 soft call protection for six months were left unchanged.

Also, the company downsized its 7.5-year second-lien term loan to €80 million from €90 million and firmed the discount at 98 from talk in the 98 area, the source said. This tranche is still priced at Euribor plus 775 bps with a 1% floor and is non-callable for one year, then at 102 in year two and 101 in year three.

Axilone getting revolver

Along with the term loans, Axilone’s now €420 million of senior secured credit facilities include a €50 million six-year revolver.

Commitments were due at 3:30 p.m. GMT on Wednesday, the source added.

Barclays and RBC are the active bookrunners on the deal and mandated lead arrangers with Credit Suisse. Barclays is the administrative agent.

The new credit facilities will be used to fund the acquisition of the Ileos Group SAS and Ileos USA by CITIC Capital Partners, refinance existing debt, and pay related fees and expenses.

Axilone is a Paris-based manufacturer of plastic and metal packaging for the lipstick, fragrance and skin care segments.

TransDigm holds call

Also in the primary market, TransDigm surfaced in the morning with plans to hold a lender call at 11:30 a.m. ET on Wednesday to launch a $1.81 billion first-lien term loan G (Ba2/B+) due August 2024 talked at Libor plus 250 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at 11 a.m. ET on Monday, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan G down from Libor plus 300 bps with a 0.75% Libor floor.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for use on commercial and military aircraft.

HarbourVest comes to market

HarbourVest Partners announced in the morning its intention to hold a lender call at 1:30 p.m. ET to launch a $535 million seven-year covenant-light first-lien term loan B talked at Libor plus 250 bps to 275 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Feb. 21, the source said.

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

HarbourVest is a Boston-based private equity firm.

Party City readies loan

Party City will hold a lender call at 11:30 a.m. ET on Thursday to launch a $1,211,000,000 covenant-light first-lien term loan (Ba3/B+) due August 2022 talked at Libor plus 250 bps to 275 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, MUFG, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Mizuho, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt, including a term loan priced at Libor plus 300 bps with a 0.75% Libor floor.

Party City is an Elmsford, N.Y.-based supplier of decorated party goods.

Overseas Shipholding on deck

Overseas Shipholding Group set a lender call for 11 a.m. ET on Thursday to launch a $455 million senior secured term loan, according to a market source.

Goldman Sachs Bank USA is leading the deal that will be used to amend and extend an existing term loan.

Overseas Shipholding is a Tampa, Fla.-based provider of transportation services for crude oil and refined products.

Boyd joins calendar

Boyd Corp. scheduled a lender call for Thursday morning to launch a $210 million non-fungible term loan, a market source remarked.

Antares Capital, SG Americas and Macquarie Capital are leading the deal that will be used to fund an acquisition.

Boyd, a portfolio company of Genstar Capital, is a Modesto, Calif.-based designer and manufacturer of highly engineered, specialty material-based thermal management, vibration damping, EMI management and environmental sealing solutions.

Sparta readies repricing

Sparta Systems will hold a lender call at 11 a.m. ET on Thursday to launch a repricing of its term loan, according to a market source.

Jefferies LLC is leading the deal.

Sparta Systems is a Hamilton N.J.-based provider of quality management system software to the pharmaceutical, medical device and CPG industries.

Charter NEX reemerges

Charter NEX set a lender call for 11 a.m. ET on Thursday to launch a repricing of its term loan, a market source said.

As previously reported, the call was originally planned for Tuesday was then temporarily postponed.

Jefferies LLC is leading the deal.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

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