Entegris, Convergint, Gray Television, Walker break; Unifrax, U.S. Anesthesia revised

By Sara Rosenberg

New York, Nov. 2 – Entegris Inc. firmed the spread on its term loan B at the low end of guidance and tightened the original issue discount, and then the debt freed to trade on Friday above its original issue discount price.

Also, Convergint Technologies upsized its incremental first-lien term loan before emerging in the secondary market, and deals from Gray Television Inc. and Walker & Dunlop Inc. began trading as well.

In more happenings, Unifrax (ASP Unifrax Holdings Inc.) shifted some funds between its U.S. first-and second-lien term loans, set pricing on its first-lien term loan debt at the tight side of talk, and sweetened the spread, original issue discount and call protection on the second-lien tranche.

Furthermore, U.S. Anesthesia Partners modified the issue price on its add-on first-lien term loan, and Rocket Software Inc. and Ring Container Technologies Group LLC hopped onto the near-term primary calendar.

Entegris revised, trades

Entegris set pricing on its $400 million seven-year senior secured term loan B at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, and moved the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Previously in syndication, the term loan was upsized from $200 million.

The company’s $700 million of credit facilities (Baa3/BBB-) also include a $300 million revolver.

Recommitments were due at noon ET on Friday and the loan freed to trade in the afternoon, with levels quoted at par bid, par ½ offered, a trader added.

Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., PNC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Entegris is a Billerica, Mass.-based developer, manufacturer and supplier of microcontamination control products, specialty chemicals and advanced materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries.

Convergint upsizes, breaks

Convergint Technologies lifted its fungible incremental first-lien term loan (B2/B) due February 2025 to $75 million from $65 million and left pricing at Libor plus 300 bps with a 0.75% Libor floor and an original issue discount of 99, a market source said.

The spread and floor on the incremental term loan matches existing first-lien term loan pricing.

Recommitments were due at 1 p.m. ET and the incremental loan broke for trading in the afternoon with levels quoted at 99 1/8 bid, 99½ offered, the source added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Jefferies LLC, RBC Capital Markets and Bank of America Merrill Lynch are leading the deal that will be used to fund tuck-in acquisitions.

Convergint is a Schaumberg, Ill., service-based security systems integrator.

Gray Television tops OID

Gray Television’s $1.4 billion seven-year incremental covenant-light term loan B began trading, with levels quoted at par bid, par ½ offered, according to a market source.

Pricing on the term loan B is Libor plus 250 bps with a 0% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, the term loan B was downsized from a revised amount of $1.65 billion and an initial amount of $2.15 billion, pricing finalized at the high end of the Libor plus 225 bps to 250 bps talk and the discount was tightened from 99.5.

The term loan downsizing was done as a result of the company’s decision to sell senior notes due May 2027. The notes were sized at $500 million when announced and then were increased to $750 million before pricing on Thursday.

The company is also getting a $200 million five-year revolver that is pari passu with the term loan to replace its existing $100 million priority revolver due February 2022.

Gray buying Raycom

Proceeds from Gray Television’s incremental term loan B and bonds will be used to help fund the acquisition of Raycom Media Inc. and refinance debt. Raycom is being bought for $3,647,000,000 in total proceeds, consisting of $3,547,000,000 in enterprise value and $100 million of Raycom cash. The consideration will consist of $2.85 billion in cash, $650 million in a new series of preferred stock and 11.5 million shares of Gray common stock.

Wells Fargo Securities LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBC Capital Markets are leading the term loan.

Closing on the acquisition is expected this quarter, subject to customary conditions and regulatory approvals.

Gray Television is an Atlanta-based television broadcast company. Raycom is a Montgomery, Ala.-based broadcaster and owner and operator of television stations.

Walker hits secondary

Walker & Dunlop’s $300 million seven-year term loan B freed up too, with levels quoted at par bid, par ½ offered on the break and then the debt moved up to par ¼ bid, par ¾ offered, a market source remarked.

Pricing on the term loan is Libor plus 225 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

On Thursday, the term loan was upsized from $250 million and pricing was set at the low end of the Libor plus 225 bps to 250 bps talk.

Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal that will be used to refinance an existing term loan B and for general corporate purposes.

Walker & Dunlop is a Bethesda, Md.-based provider of commercial real estate financial services.

Unifrax reworked

Back in the primary market, Unifrax raised its U.S. seven-year covenant-light first-lien term loan B to $600 million from $550 million, and firmed the spread on the loan, as well as on its $350 million equivalent euro seven-year covenant-light first-lien term loan B at Libor/Euribor plus 375 bps, the low end of the Libor/Euribor plus 375 bps to 400 bps talk, according to a market source.

Also, the company trimmed its eight-year covenant-light second-lien term loan to $250 million from $300 million, increased pricing to Libor plus 850 bps from talk in the range of Libor plus 775 bps to 800 bps, modified the original issue discount to 96 from 99, and changed the hard call protection to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said.

As before, all of the term loans have a 0% floor, and the first-lien term loans have a discount of 99.5 and 101 soft call protection for six months.

The company’s $1,325,000,000 equivalent of senior secured credit facilities include a $125 million five-year revolver as well.

Unifrax lead banks

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, UBS Investment Bank, RBC Capital Markets and Stifel, Nicolaus & Co. are leading Unfrax’s credit facilities.

Recommitments were due at 4:30 p.m. ET on Friday, the source added.

The new debt will be used to help fund the buyout of the company by Clearlake Capital Group LP from American Securities LLC.

Unifrax is a Tonawanda, N.Y.-based supplier of high-performance specialty fibers and inorganic materials used in emission control, thermal management, filtration, battery and fire protection applications.

U.S. Anesthesia tweaked

U.S. Anesthesia Partners changed the original issue discount on its fungible $275 million add-on senior secured first-lien term loan (B1/B) due June 23, 2024 to 99.75 from 99.5, a market source remarked.

Like the existing first-lien term loan, the add-on loan is priced at Libor plus 300 bps with a 1% Libor floor.

Recommitments were due at noon ET on Friday, the source added.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., BMO Capital Markets, Capital One and Antares Capital are leading the debt that will be used with cash from the balance sheet to fund a distribution to shareholders.

With the add-on loan, the company sought an amendment to its credit agreement to waive the restricted payments covenant for this transaction and increase first-lien incremental ratio capacity to 5 times from 4.75 times.

Lenders were offered a 10 bps consent fee for the amendment, which was approved.

Closing is expected during the week of Nov. 5.

U.S. Anesthesia Partners is a Fort Lauderdale, Fla.-based physician-service organization that focuses on providing anesthesia and pain management services to patients.

Rocket readies deal

Rocket Software set a bank meeting for 10 a.m. ET in New York on Monday to launch $1,685,000,000 of credit facilities, according to a market source.

The facilities consist of a $125 million revolver (B), a $1.24 billion seven-year covenant-light first-lien term loan (B) and a $320 million eight-year covenant-light second-lien term loan (B-), the source said.

Both term loans have a 0% Libor floor, 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.

Commitments are due at 5 p.m. ET on Nov. 19, the source added.

Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Bain Capital Private Equity from Court Square Capital Partners in a transaction with an enterprise value of about $2 billion.

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

Rocket Software is a Waltham, Mass.-based provider of enterprise infrastructure software.

Ring Container on deck

Ring Container Technologies Group scheduled a lender call for 11:30 a.m. ET on Monday to launch a fungible $65 million incremental covenant-light first-lien term loan (B) due Oct. 31, 2024, a market source remarked.

Bank of America Merrill Lynch is leading the deal that will be used to refinance an existing second-lien term loan.

Ring Container is an Oakland, Tenn.-based manufacturer of plastic containers for dressings, sauces, oils, spreads and other related products.

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