Vertafore, Corel free up; Las Vegas Sands changes surface; multiple deals come to market

By Sara Rosenberg

New York, June 4 – Vertafore Inc.’s credit facilities emerged in the secondary market on Monday, with the first-and second-lien term loans quoted above their original issue discounts, and Corel Corp.’s bank debt began trading too.

Moving to the primary market, Las Vegas Sands LLC increased the size of its incremental term loan and finalized the original issue discount at the tight end of guidance.

Also, Electrical Components International Inc., DMT Solutions Global Corp., Standard Media Group LLC, Installed Building Products Inc., TKC Holdings Inc., Melissa & Doug (MND Holdings III Corp.) and Bowlero Corp. released price talk with launch.

Furthermore, Sound Inpatient Physicians Holdings LLC, Flynn Restaurant Group LP, Diamond Resorts International Inc., Celestica Inc. and Dayco Products LLC joined this week’s primary calendar.

Vertafore breaks

Vertafore’s credit facilities freed up for trading on Monday, with the $1.6 billion seven-year first-lien term loan B (B2/B-) quoted at 99¾ bid, par offered and the $665 million eight-year second-lien term loan (Caa2/CCC) quoted at 99½ bid, par ½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 325 basis points with 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.

The second-lien term loan is priced at Libor plus 725 bps with a 0% Libor floor and was issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan firmed at the low end of the Libor plus 325 bps to 350 bps talk the 25 bps pricing step-down was removed, and pricing on the second-lien term loan was set at the high end of the Libor plus 700 bps to 725 bps talk. Also, the MFN was revised to 50 bps for 12 months from 75 bps for six months and certain carve-outs were eliminated, the inside maturity basket was removed from the incremental, unlimited investments were changed to 6.75 times net total leverage from 7.6 times, and unlimited restricted payments were modified to 6.25 times net total leverage from 6.75 times.

Vertafore lead banks

Nomura, Guggenheim and Macquarie Capital (USA) Inc. are leading Vertafore’s $2,365,000,000 of credit facilities, which include a $100 million five-year revolver (B2/B-) as well.

Proceeds will be used to refinance existing debt, fund a distribution to shareholders, and pay fees and expenses.

Closing is expected on July 2.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

Corel hits secondary

Corel’s credit facilities began trading too, with the $275 million six-year term loan quoted at par bid, 101 offered, a trader said.

Pricing on the term loan is Libor plus 500 bps with a 0% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

During syndication, the term loan was downsized to $250 million from $300 million and then upsized to its final amount of $275 million, and the call protection was extended from six months.

The company’s $285 million credit facilities also include a $10 million revolver.

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

Corel is an Ottawa-based software company.

Las Vegas Sands revised

Switching to the primary market, Las Vegas Sands lifted its incremental senior secured term loan B to $1.35 billion from $1 billion and firmed the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

The term loan is still priced at Libor plus 175 bps with a 0% Libor floor.

Recommitments were due at 5 p.m. ET on Monday, the source said.

Bank of Nova Scotia, Barclays, Bank of America Merrill Lynch, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Fifth Third are leading the deal that will be used for general corporate purposes.

Las Vegas Sands is a Las Vegas-based developer and operator of integrated resorts.

Electrical Components talk

Electrical Components held its lender call on Monday and released price talk on its $570 million seven-year first-lien term loan (B1) and $125 million eight-year second-lien term loan (Caa1), according to a market source.

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $795 million of credit facilities also include a $100 million five-year revolver (B1).

Commitments are due at noon ET on June 14, the source added.

Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, RBC Capital Markets, Bank of America Merrill Lynch and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by Cerberus Capital Management LP from KPS Capital Partners LP.

Closing is subject to customary conditions.

Electrical Components is a St. Louis-based manufacturer of wire harnesses, control boxes and value-added assembly services for consumer appliance and specialty-industrial applications.

DMT discloses guidance

DMT Solutions announced talk of Libor plus 575 bps to 600 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for one year on its $260 million seven-year covenant-light first-lien term loan (B3/B-) that launched with a morning bank meeting, a market source remarked.

Commitments are due at 5 p.m. ET on June 14.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA and KeyBanc Capital Markets are leading the deal that will be used to help fund the buyout of the company by Platinum Equity from Pitney Bowes Inc. for $361 million.

Closing is expected in the second quarter or early in the third quarter, subject to customary conditions.

DMT is a provider of global enterprise solutions for mail inserting, parcel sorting and printing equipment and services.

Standard Media floats terms

Standard Media Group held its bank meeting in the afternoon and came out with talk on its $245 million seven-year first-lien term loan (B+/BB) and $90 million eight-year second-lien term loan (CCC+/CCC+), a market source said.

Talk on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 825 bps with a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source continued.

The company’s $350 million of senior secured credit facilities also include a $15 million revolver.

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

RBC Capital Markets, Capital One and Citizens Bank are leading the deal that will be used to help fund the acquisition of nine television stations from Sinclair Broadcast Group Inc. for $441.7 million in cash.

Closing is subject to regulatory approval, the closing of the Sinclair/Tribune Media Co. merger and other customary conditions.

Standard Media is a broadcast television company.

Installed Building launches

Installed Building Products released talk of Libor plus 225 bps with a 1% Libor floor, an upfront fee of 12.5 bps and 101 soft call protection for six months on its fungible $100 million covenant-light incremental term loan B (B1) due April 15, 2025 and repriced and extended $298 million covenant-light term loan B (B1) due April 15, 2025 that launched with a morning call, according to a market source.

Commitments are due at 5 p.m. ET on June 12, the source said.

RBC Capital Markets, Jefferies LLC and SunTrust Robinson Humphrey Inc. are leading the deal.

The incremental loan will be used for future acquisitions, and the existing term loan is being extended from April 2024 and repriced from Libor plus 250 bps with a 1% Libor floor.

Closing is expected on June 14.

Additionally, the company intends to upsize its ABL revolver to $150 million from $100 million in the near-term.

Pro forma total leverage is 3 times and net leverage is 2.1 times.

Installed Building Products is a Columbus, Ohio-based installer of insulation products.

TKC comes to market

TKC Holdings launched in the morning a roughly $1.28 billion first-lien term loan 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 Thursday, the source added.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 1% Libor floor.

TKC is a St. Louis-based provider of commissary, food service and related technology products to the corrections industry, and a provider of in-room coffee service to hotels and motels.

Melissa & Doug repricing

Melissa & Doug surfaced in the morning with plans to hold a lender call at 3 p.m. ET to launch a $258 million covenant-light first-lien term loan due June 2024 talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor.

Melissa & Doug is a specialty toy brand with an educational focus.

Bowlero holds call

Bowlero hosted a lender call in the afternoon to launch a $715 million term loan B (B2/B) due 2024 talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months, a market source remarked.

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

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan B and add cash to the balance sheet.

Bowlero is a New York-based operator of bowling centers.

Sound Inpatient on deck

Also in the primary market, Sound Inpatient Physicians Holdings will hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch $835 million of credit facilities, according to a market source.

The facilities consist of a $75 million revolver, a $545 million first-lien term loan and a $215 million second-lien term loan, the source said.

Goldman Sachs Bank USA, Jefferies LLC, Credit Suisse Securities (USA) LLC and Nomura are leading the deal, with Goldman left on the first-lien and Jefferies left on the second-lien.

The new debt will be used to fund the buyout of the company by Summit Partners and OptumHealth Holdings for about $2.15 billion from Fresenius Medical Care.

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

Sound Physicians is a provider of hospital medicine and services across the acute episode of care.

Flynn plans loans

Flynn Restaurant Group set a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch $500 million in term loans, a market source remarked.

The debt consists of a $400 million seven-year covenant-light first-lien term loan and a $100 million eight-year covenant-light second-lien term loan, the source added.

Bank of America Merrill Lynch is the left lead on the deal that will be used to refinance existing credit facilities at Bell American and Pan American into a combined structure, repay subordinated debt, and fund cash to the balance sheet for future acquisitions and general corporate purposes.

Flynn Restaurant is a San Francisco-based restaurant franchisee operator.

Diamond readies deal

Diamond Resorts scheduled a lender call for 10 a.m. ET on Tuesday to launch a repricing of its $890 million term loan B, a market source said.

RBC Capital Markets, Apollo Global Securities and Barclays are leading the deal.

Apollo Management is the sponsor.

Diamond Resorts is a Las Vegas-based hospitality and vacation ownership company.

Celestica coming soon

Celestica will hold a lender call at 1 p.m. ET on Tuesday to launch a $350 million seven-year covenant-light term loan B, according to a market source.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are leading the deal that will be used to repay the company’s existing credit facilities.

Celestica is a Toronto-based designer and manufacture of electronic components.

Dayco joins calendar

Dayco Products set a call for 10 a.m. ET on Tuesday for loan lenders, according to a market source.

Bank of America Merrill Lynch is leading the deal.

Dayco is a Troy, Mich.-based manufacturer of highly engineered engine management systems.

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