Insight Global revises deadline on strong demand; primary continues to see robust activity

By Sara Rosenberg

New York, Sept. 12 – In the primary market on Monday, Insight Global (IG Investment Holdings LLC) accelerated the commitment deadline on its tack-on first-lien term loan as the deal is oversubscribed and the plan is to firm up pricing on Tuesday.

Also, Landry’s Inc., American Bath Group LLC, NXP BV, HD Supply Inc., JDA Software Group Inc., GFL Environmental Inc., LSC Communications Inc., Windstream Services LLC and PlayPower Inc. released price talk with launch.

Furthermore, WellDyneRx Inc. and Donnelley Financial Solutions Inc. began floating guidance on their deals ahead of their bank meetings, Cotiviti Holdings Inc. surfaced with refinancing plans, Fitness International LLC, TTM Technologies Inc. and Tronair joined this week’s new issue calendar, and Matrix Medical Network and Affinity Gaming set timing on the launch of their term loans.

Insight Global moves deadline

Insight Global accelerated the commitment deadline on its $170 million tack-on first-lien term loan (B1) due October 2021 to 5 p.m. ET on Monday from 5 p.m. ET on Wednesday, a market source said.

Pricing on the loan is Libor plus 500 basis points with a 1% Libor floor, and there is 101 soft call protection through April 22, 2017, all of which matches the existing first-lien term loan.

As before, original issue discount talk on the tack-on loan is 99 to 99.5.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to repay an existing $170 million second-lien term loan.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

Landry’s talk surfaces

Landry’s held its bank meeting on Monday afternoon, launching its $1.3 billion seven-year first-lien term loan with talk of Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

The company’s $1.5 billion senior secured credit facility (B+) also includes a $200 million five-year revolver.

Commitments are due on Sept. 22, the source added.

Jefferies Finance LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Rabobank are leading the deal that will be used with $575 million of senior notes due 2024 to refinance existing debt, including 9 3/8% senior unsecured notes due 2020 and an existing senior secured credit facility, and to make a distribution to its indirect parent to redeem all of its outstanding 10¼% senior unsecured notes due 2018.

Landry’s is a Houston-based diversified restaurant, hospitality and entertainment company.

American Bath guidance

American Bath Group hosted its bank meeting in the afternoon, and shortly before the event kicked off, price talk on its first- and second-lien term loans was announced, a source remarked.

The $320 million seven-year covenant-light first-lien term loan is talked at Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99, and the $95 million eight-year covenant-light second-lien term loan is talked at Libor plus 900 bps with a 1% Libor floor and a discount of 98, the source continued.

As reported earlier, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $465 million credit facility also includes a $50 million revolver.

American Bath leads

Credit Suisse Securities (USA) LLC and RBC Capital Markets are leading American Bath Group’s credit facility.

Commitments are due at 5 p.m. ET on Sept. 27.

Proceeds will be used to help fund the buyout of the company by Lone Star Funds.

American Bath Group is a Savannah, Tenn.-based designer and manufacturer of fiberglass reinforced plastic, sheet molded compound and acrylic bathtubs and showers.

NXP details emerge

NXP held its lender call on Monday, launching a repricing of its $1.44 billion term loan B due December 2020 at talk of Libor plus 250 bps with no floor, a par issue price and 101 soft call protection for six months, according to a market source.

The repricing will take the term loan down from Libor plus 300 bps with a 0.75% Libor floor.

Cashless rolls are due at 4 p.m. ET on Wednesday and commitments for new money lenders are due at 4 p.m. ET on Thursday, the source said.

Allocations and pricing are targeted for Friday, the source added.

Deutsche Bank Securities Inc. is the sole bookrunner on the deal, and Credit Suisse Securities (USA) LLC is the administrative agent.

NXP is an Eindhoven, Netherlands-based maker of semiconductors.

HD Supply releases terms

HD Supply launched on its lender call in the morning a $550 million seven-year incremental covenant-light term loan B (B1/BB) talked at Libor plus 275 bps with no Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the company disclosed in an 8-K filed with the Securities and Exchange Commission.

Commitments are due on Thursday, the deal is expected to price and allocate on Friday, and closing is targeted for the week of Oct. 17.

Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the loan that will be used with a $600 million ABL revolver draw and $228 million in cash on hand to redeem the company’s $1,275,000,000 of 7.50% senior notes due 2020.

HD Supply amending

In connection with the transaction, HD Supply is asking lenders for an amendment to its existing $843,625,000 covenant-light term loan due August 2021 to eliminate the 1% Libor floor, waive the 3.25 times restricted payments ratio since this transaction will result in 3.4 times net secured leverage and reset the excess cash flow sweep to apply to fiscal year 2017.

The spread on the existing term loan will remain at Libor plus 275 bps.

Lenders are being offered a 10-bps consent fee.

HD Supply is an Atlanta-based industrial distributor.

JDA floats talk

JDA Software launched with a lender meeting its $1.2 billion seven-year term loan B (B) at talk of Libor plus 400 bps to 425 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The company’s $1,325,000,000 credit facility (B) also includes a $125 million five-year revolver.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used with equity to refinance existing debt in connection with a $570 million equity investment by Blackstone and New Mountain Capital.

Closing is expected by early in the fourth quarter, subject to customary conditions. New Mountain Capital will remain as the company’s majority shareholder post-investment.

JDA is a Scottsdale, Ariz.-based provider of end-to-end, integrated retail, omni-channel and supply chain planning and execution solutions.

GFL discloses guidance

GFL Environmental came out with talk of Libor/CDOR plus 300 bps with a 1% floor, an original issue discount of 99.5 and 101 soft call protection for six months on its C$610 million-equivalent seven-year covenant-light term loan B that launched with a bank meeting on Monday, a market source remarked.

The term loan B is divided between a $370 million tranche and a C$130 million tranche.

The company’s C$950 million credit facility (Ba2/BB-) also includes a C$340 million five-year revolver.

Commitments are due at noon ET on Sept. 22, the source added.

Barclays, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to pay down some revolver borrowings, to refinance other debt and fund acquisitions.

Pro forma secured leverage is 2.1 times, and total leverage is 5.4 times.

GFL Environmental is a Vaughan, Ont.-based waste management services company.

LSC launches

LSC Communications emerged with talk of Libor plus 525 bps to 550 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 soft call protection for one year on its $425 million term loan (Ba3/B) that launched with a bank meeting during the session, according to a market source.

Commitments are due on Sept. 22, the source said.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Capital One, Fifth Third, MUFG, PNC Capital Markets, SunTrust Robinson Humphrey Inc., US Bank and Wells Fargo Securities LLC are leading the deal that is being done in connection with the company’s spin-off from R. R. Donnelley & Sons Co. and will be used to fund a distribution to R. R. Donnelley.

Filings with the Securities and Exchange Commission said that, along with the term loan, the company will get a $400 million revolver (Baa3/BB).

LSC is a Chicago-based publishing and retail-centric print services and office products company.

Windstream sets price talk

Windstream Services released talk of Libor plus 425 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its roughly $699 million term loan B-6 that launched with a lender call, a source remarked.

J.P. Morgan Securities LLC is leading the deal.

Proceeds will be used to refinance an existing term loan B-6, to pay down 7.875% notes due 2017 and for other general corporate purposes.

Windstream is a Little Rock, Ark.-based provider of network communications and technology solutions.

PlayPower holds call

PlayPower had its lender call on Monday, launching its $70 million add-on first-lien term loan (B2/B) with talk of Libor plus 475 bps with a 1% Libor floor, an original issue discount of 99.03 and 101 soft call protection for six months, according to a market source.

Commitments are due on Sept. 20, the source added.

SG Americas Securities LLC is leading the deal that will be used with equity to fund the acquisition of Playworld, a Lewisburg, Pa.-based designer and manufacturer of active and outdoor play products.

First-lien leverage is 3.6 times, and total leverage is 4.4 times.

Littlejohn & Co. is the sponsor.

PlayPower is a Huntersville, N.C.-based manufacturer of commercial playground equipment, shade structures and floating dock systems.

WellDyneRx reveals talk

WellDyneRx came out with price talk on its $315 million seven-year first-lien term loan and a $140 million eight-year second-lien term loan in preparation for its Tuesday morning bank meeting, a market source said.

The first-lien term loan is talked in the Libor plus 450 bps area with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 875 bps to 900 bps with a 1% Libor floor and a discount of 98, the source added.

The company’s $505 million credit facility also includes a $50 million revolver.

J.P. Morgan Securities LLC, UBS Investment Bank, Jefferies Finance LLC and MUFG are leading the deal that will be used to help fund the buyout of the company by the Carlyle Group.

Closing is expected this year, subject to customary regulatory approvals.

WellDyneRx is a Lakeland, Fla.-based pharmacy benefit manager.

Donnelley Financial guidance

Donnelley Financial Solutions is talking its $350 million seven-year term loan B at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year ahead of its Tuesday bank meeting, according to market sources.

Along with the term loan, the company is expected to get a $300 million revolver.

J.P. Morgan Securities LLC is leading the deal that is being done in connection with the company’s spinoff from R. R. Donnelley & Sons Co., and proceeds will be used to reduce debt at R. R. Donnelley.

Donnelley Financial is a Chicago-based financial communications services company.

Cotiviti readies deal

Also in the primary market, Cotiviti Holdings scheduled a lender call for Tuesday to launch a $900 million credit facility (BB), split between a $100 million five-year revolver, a $250 million five-year term loan A and a $550 million seven-year term loan B, according to market sources.

The term loan B is talked at Libor plus 300 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, sources said.

J.P. Morgan Securities LLC is the left lead on the deal that will be used with cash on hand to refinance all of the company’s existing first- and second-lien term loans.

Cotiviti is an Atlanta-based payment accuracy provider.

Fitness joins calendar

Fitness International will hold a lender call at 11 a.m. ET on Tuesday to launch a $1,174,300,000 covenant-light term loan B (B+) due July 1, 2020, according to a market source.

Of the total proposed term loan B amount, $964.3 million is existing debt and $210 million is incremental debt, the source said.

Bank of America Merrill Lynch, Bank of the West and MUFG are leading the deal that will be used to redeem the equity units of Madison Dearborn Partners and Seidler Institutions, to refinance existing senior credit facility debt and for general corporate purposes.

Fitness International is an Irvine, Calif.-based non-franchised fitness club operator.

TTM refinancing

TTM Technologies set a lender call for Tuesday to launch a $775 million term loan B due 2021 talked at Libor plus 425 bps with a 1% Libor floor, an issue price of 99.75 to par and 101 soft call protection for six months, according to a market source.

Commitments are due on Sept. 20, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan priced at Libor plus 500 bps with a 1% Libor floor.

TTM Technologies is a Costa Mesa, Calif.-based printed circuit board manufacturer.

Tronair coming soon

Tronair surfaced with plans to hold a bank meeting on Wednesday morning to launch $145 million credit facility, consisting of a $20 million five-year revolver and a $125 million seven-year term loan B, a market source said.

The company is also getting a $55 million second-lien tranche that has been placed privately already.

SG Americas Securities LLC and Golub Capital are leading the deal that will be used to help fund the buyout of the company by Golden Gate Capital from Levine Leichtman Capital Partners.

Tronair is a Holland, Ohio-based designer, manufacturer and seller of ground support equipment for business, commercial and military aircraft.

Matrix Medical on deck

Matrix Medical Network set a bank meeting for 11 a.m. ET on Wednesday to launch its $238 million six-year first-lien term loan, according to a market source.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used with $179.7 million in equity to help fund the purchase of a 60% equity interest in the company by Frazier Healthcare Partners from Providence Service Corp., with Providence retaining a 40% equity interest.

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

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

Affinity timing emerges

Affinity Gaming scheduled a lender call for 2 p.m. ET on Tuesday to launch $125 million in new term loan debt, split between a $30 million incremental first-lien term loan due July 1, 2023 (B+) and a $95 million eight-year second-lien term loan (CCC+), and an amendment to its existing $375 million first-lien term loan (B+) due July 1, 2023, according to market sources.

Pricing on the incremental first-lien term loan matches existing first-lien term loan pricing at Libor plus 400 bps with a 1% Libor floor, and all of the first-lien term loan debt will get 101 soft call protection for six months.

The original issue discount on the incremental first-lien term loan, and official price talk and call protection on the second-lien term loan are still to be determined, the source continued.

Recent filings with the Securities and Exchange Commission have outlined the second-lien term loan as expected at Libor plus 825 bps with a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on Sept. 23, the source added.

Affinity being acquired

Proceeds from Affinity Gaming’s new debt and equity will be used to fund its buyout by Z Capital Partners LLC, which currently own about 41% of Affinity’s outstanding shares, for $17.35 per share in cash. The transaction values Affinity at about $580 million.

Citizens Bank, Credit Suisse Securities (USA) LLC and Fifth Third are leading the new debt, and Credit Suisse is the lead on the amendment.

The amendment to the existing first-lien term loan will allow for the new debt and permit restricted payments sufficient to complete the buyout.

Closing is expected in the first quarter of 2017, subject to shareholder approval, regulatory approvals, including by gaming regulators in the four states in which Affinity is licensed, expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and other customary conditions.

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

Cablevision holds steady

Moving to the secondary market, Cablevision Systems Corp.’s (CSC Holdings LLC) $2.5 billion eight-year term loan B (Ba1) was quoted at 100 1/8 bid, 100 5/8 offered, pretty much unchanged from Friday’s break price of 100 1/8 bid, 100½ offered, according to a trader.

Pricing on the loan is Libor plus 300 bps with a 0.75% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

Last week, the term loan B was upsized from $1.9 billion as the company’s bond offering was downsized to $1.31 billion from $1.91 billion, and pricing was reduced from Libor plus 325 bps.

J.P. Morgan Securities LLC is leading the deal that will be used with the bonds to refinance the company’s existing term loan B due October 2022 priced at Libor plus 400 bps with a 1% Libor floor.

Cablevision is a Bethpage, N.Y.-based media and telecommunications company.

BWICS announced

Also in trading, a $235 million Bid Wanted In Competition emerged, with bids due at 10 a.m. ET on Wednesday, and a $67.7 million BWIC surfaced, with bids also due at 10 a.m. ET on Wednesday, according to traders.

Some of the names in the $235 million BWIC are Altice US Finance I Corp., Catalent Pharma Solutions Inc., Envision Healthcare Corp., Federal-Mogul Holdings Corp., First Data Corp., HCA Inc., Novelis Inc., Sabre Inc. and Walter Investment Management Corp. There are about 85 issuers in the portfolio.

The $67.7 million BWIC includes debt from, among others, API Heat, Culligan, Shearer’s and SkillSoft, traders added.

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