Engility, Twin River, Lionbridge, ESH Hospitality free up; Go Daddy, Peabody changes emerge

By Sara Rosenberg

New York, Feb. 6 – Engility Corp. and Twin River Management Group Inc. finalized pricing on their term loans at the wide end of guidance, and Lionbridge Technologies Inc. revised tranche sizes and modified the issue price on the first-lien loan, and then all of these deals surfaced in the secondary market on Monday, and ESH Hospitality Inc. began trading too.

In more happenings, Go Daddy Operating Co. LLC increased the size of its term loan B while also tightening the spread and original issue discount, Peabody Energy Corp. upsized its first-lien term loan and SRS Distribution Inc. accelerated the commitment deadline on its incremental term loans.

Also, US Foods Inc., OpenText Corp., Strategic Partners Acquisition Corp., Mueller Water Products Inc., BBB Industries LLC, Authentic Brands Group and Armstrong World Industries Inc. released price talk with launch.

Additionally, VC GB Holdings Inc., Sivantos Group (Auris Luxembourg III Sarl), Infiltrator Water Technologies LLC, Gavilan Resources LLC and GlobalLogic Inc. joined this week’s primary calendar.

Engility finalizes, trades

Engility set pricing on its $195 million term loan B-1 due Aug, 12, 2020 at Libor plus 325 basis points, the high end of the Libor plus 300 bps to 325 bps talk, and on its $608 million term loan B-2 due Aug. 12, 2023 at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, according to a market source.

The term loan B-1 still has no Libor floor, and the term loan B-2 still has a 1% Libor floor. Both tranches were issued at par and have 101 soft call protection for six months.

With final terms in place, the debt freed to trade on Monday, and both loans were quoted at par ¼ bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., KKR Capital Markets LLC, Barclays, SunTrust Robinson Humphrey Inc., Regions Capital Markets, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are leading the $803 million in senior secured term loans that will be used to reprice an existing term loan B-1 due 2020 from Libor plus 425 bps with no Libor floor and an existing term loan B-2 due 2023 from Libor plus 475 bps with a 1% Libor floor.

Closing is expected on Feb. 13.

Engility is a Chantilly, Va.-based provider of integrated services for the U.S. government.

Twin River firms, breaks

Twin River Management Group firmed the spread on its $389 million covenant-light term loan B due July 2020 at Libor plus 350 bps, the wide end of the Libor plus 325 bps to 350 bps talk, a market source said.

As before, the term loan has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Following the release of final terms, the loan made its way into the secondary market, and levels were seen at par ¾ bid, another source added.

Deutsche Bank Securities Inc. 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.

Twin River is a Lincoln, Rhode Island-based owner and operator of casino resorts.

Lionbridge revised

Lionbridge Technologies lifted its seven-year first-lien term loan to $210 million from $200 million and its revolver to $50 million from $40 million, and trimmed its eight-year second-lien term loan to $75 million from $85 million, according to a market source.

Additionally, the original issue discount on the first-lien term loan was tightened to 99.5 from 99, the source said.

As before, the first-lien term loan is priced at Libor plus 550 bps with a 1% Libor floor, and has 101 soft call protection for six months, and the second-lien term loan is priced at Libor plus 975 bps with a 1% Libor floor and a discount of 98, and includes call protection of 103 in year one, 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the now $335 million senior secured credit facility.

Lionbridge frees up

Recommitments for Lionbridge’s credit facility were due at noon ET on Monday, and then the debt hit the secondary market, with the first-lien term loan quoted at 99¾ bid, and the second-lien term loan quoted at 98 bid, 99 offered, a trader added.

Proceeds from the credit facility will be used with equity to fund the company’s buyout by H.I.G. Capital LLC for $5.75 per share in cash.

Closing on the buyout is subject to shareholder approval, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Lionbridge is a Waltham, Mass.-based provider of translation, online marketing, global content management and application testing solutions.

ESH starts trading

ESH Hospitality’s $1.3 billion covenant-light term loan B due August 2023 broke as well, with levels quoted at par ¼ bid, par 5/8 offered, according to a market source.

Pricing on the loan is Libor plus 250 bps with no Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Barclays, Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to reprice an existing term loan B down from Libor plus 300 bps with a 0.75% Libor floor.

With the repricing, the company is removing the existing step-down to Libor plus 275 bps upon receipt of a minimum of Ba3/BB- corporate ratings.

ESH Hospitality is subsidiary of Extended Stay America Inc., a Charlotte, N.C.-based owner/operator of company-branded hotels.

Go Daddy reworks deal

Back in the primary market, Go Daddy upsized its seven-year senior secured covenant-light term loan B to $2,497,500,000 from $2,467,000,000, cut pricing to Libor plus 250 bps from Libor plus 275 bps and moved the original issue discount to 99.75 from 99.5, a source said.

The term loan still has no Libor floor and 101 soft call protection for six months.

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

Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Societe Generale are leading the deal that will be used to refinance an existing term loan B and to fund the acquisition of Host Europe Group from Cinven for €1.69 billion, with €605 million paid to the sellers and €1.08 billion being assumed net debt that will be refinanced at closing.

The term loan has a ticking fee on the acquisition proceeds of half the spread from days 46 to 60 and thereafter the full spread plus the greater of 0% and three-month Libor.

Closing is expected in the second quarter, subject to customary regulatory and other closing requirements.

Scottsdale, Ariz.-based Go Daddy and England-based Host Europe are providers of web hosting and domain names.

Peabody upsizes

Peabody Energy raised its five-year covenant-light first-lien senior secured term loan to $950 million from $500 million and left talk at Libor plus 525 bps with a 1% Libor floor, an original issue discount of 98.5 and 101 hard call protection for one year, a market source remarked.

The term loan has a ticking fee of half the margin from days 32 to 61, the full margin from days 62 to 121 and the full margin plus the floor thereafter, the source continued.

Commitments are due at the close of business on Tuesday, moved up from 5 p.m. ET on Wednesday.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used with $1 billion in first-lien notes to help refinance existing debt in connection with the company’s exit from bankruptcy.

Closing is expected in early April.

Peabody is a St. Louis-based coal producer.

SRS moves deadlines

SRS Distribution accelerated the commitment deadline on its fungible $140 million covenant-light incremental first-lien term loan due Aug. 25, 2022 and fungible $40 million covenant-light incremental second-lien term loan due Feb. 24, 2023 to 1:30 p.m. ET on Tuesday from noon ET on Wednesday, according to a market source.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, and pricing on the second-lien term loan is Libor plus 875 bps with a 1% Libor floor. Original issue discount talk on the first-lien loan is 99.75, and discount talk on the second-lien loan is 99.5.

The first-lien term loan has 101 soft call protection until June 21, 2017, and the second-lien term loan has call protection of 103 until June 21, 2017, then 102 for a year and 101 for a year.

Barclays and UBS Investment Bank are leading the deal that will fund a distribution to shareholders.

Berkshire Partners is the sponsor.

SRS Distribution is a McKinney, Texas-based roofing products distributor.

US Foods details emerge

Also in the primary market, US Foods held its lender call on Monday, launching a repricing of its $2,189,000,000 senior secured covenant-light term loan B due June 27, 2023 at talk of Libor plus 275 bps with a 25 bps step-down when consolidated secured leverage is 2.25 times, a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Cashless roll commitments are due at 5 p.m. ET on Friday, and new money commitments are due at 5 p.m. ET on Feb. 13, the source said.

Citigroup Global Markets Inc., KKR Capital Markets, BMO Capital Markets, Goldman Sachs Bank USA, ING, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are leading the deal that will reprice the existing term loan down from Libor plus 300 bps with a 0.75% Libor floor.

Closing is expected on Feb. 17, the source added.

US Foods is a Chicago-based broadline foodservice distributor.

OpenText seeks repricing

OpenText launched without a lender call a repricing of its $776 million term loan B due Jan. 16, 2021 at talk of Libor plus 200 bps with no Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Friday for existing lenders and at noon ET on Feb. 15 for new lenders, the source said.

Barclays is leading the deal that will reprice the existing term loan down from Libor plus 250 bps with a 0.75% Libor floor.

OpenText is a Waterloo, Ont.-based software provider of business-to-business cloud integration services.

Strategic Partners talk

Strategic Partners Acquisition came out with price talk of Libor plus 450 bps with a 1% Libor floor on the repricing of its $335 million first-lien term loan that launched with a call during the session, according to a market source.

Commitments are due on Friday, the source said.

UBS Investment Bank is leading the deal that will reprice the existing term loan down from Libor plus 525 bps with a 1% Libor floor.

Strategic Partners is a Chatsworth, Calif.-based designer and manufacturer of medical apparel and footwear and school uniforms.

Mueller holds call

Mueller Water Products hosted a lender call in the morning to launch a repricing of its $491 million term loan B that is 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, according to a market source.

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

Bank of America Merrill Lynch is leading the deal that will reprice the existing term loan down from Libor plus 325 bps with a 0.75% Libor floor.

Mueller Water is an Atlanta-based manufacturer and marketer of drinking water transmission, distribution and treatment facilities.

BBB Industries launches

BBB Industries launched on its lender call a $100 million incremental first-lien term loan talked at Libor plus 475 bps to 500 bps with a 1% Libor floor and an original issue discount of 99.5, a market source remarked.

Commitments are due on Feb. 15, the source continued.

Nomura and Jefferies Finance LLC are leading the deal that will be used to prepay an existing second-lien term loan.

The company’s existing first-lien term loan is priced at Libor plus 500 bps with a 1% Libor floor, so there is the potential for a repricing of the existing first-lien loan with the incremental loan, the source added.

With this transaction, Nomura will replace J.P. Morgan Securities LLC as the administrative agent on the credit agreement, and existing lenders are being offered a 25 bps fee for an amendment to the credit agreement.

BBB is a Daphne, Ala.-based remanufacturer of automotive products for the North American aftermarket.

Authentic Brands repricing

Authentic Brands Group approached lenders on a call in the afternoon with a repricing of its $438 million first-lien term loan due May 27, 2021 that is talked at Libor plus 400 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 Feb. 13, the source continued.

Bank of America Merrill Lynch is leading the deal that will reprice the existing first-lien term loan down from Libor plus 450 bps with a 1% Libor floor.

With the repricing, the company is seeking an amendment to its credit agreement, for which first-lien lenders are offered a 12.5 bps fee and second-lien lenders are offered a 50 bps, the source added.

Authentic Brands is a New York-based brand development and licensing company.

Armstrong comes to market

Armstrong World Industries held a lender call in the afternoon to launch a repricing of its $249 million term loan B due 2023 talked at Libor plus 275 bps to 300 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Feb. 15, the source said.

Bank of America Merrill Lynch is leading the deal that will reprice the existing term loan down from Libor plus 325 bps with a 0.75% Libor floor.

Armstrong is a Lancaster, Pa.-based designer and manufacturer of floors and ceiling systems.

VC GB joins calendar

VC GB Holdings emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch $650 million in term loans, according to a market source.

The debt includes a $490 million seven-year covenant-light first-lien term loan and a $160 million eight-year covenant-light second-lien term loan, the source said.

Deutsche Bank Securities Inc. and Barclays are leading the deal that will be used to help fund AEA Investors LP’s investment in Visual Comfort alongside its current investment in Generation Brands.

VC GB is a decorative lighting company.

Sivantos on deck

Sivantos Group scheduled a lender call for 10 a.m. ET on Tuesday to launch a repricing of its $590 million covenant-light term loan due January 2022 and its €409 million covenant-light term loan due January 2022, a market source said.

Talk on the U.S. loan is Libor plus 300 bps with a 1% Libor floor, and talk on the euro loan is Euribor plus 350 bps with no floor, the source added. Both loans are offered at par and include a 25 bps step-down at 4.5 times net total leverage and 101 soft call protection for six months.

Commitments are due at 10 a.m. ET on Friday for the U.S. piece and at noon GMT for the euro piece.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are the global coordinators on the deal, with Goldman the left lead on the U.S. loan and Deutsche the left lead on the euro loan. UBS AG is a joint bookrunner.

The repricing will revise pricing on the term loans from Libor/Euribor plus 325 bps with a 1% floor.

Sivantos is a Singapore-based manufacturer and wholesaler of hearing aid devices.

Infiltrator readies loan

Infiltrator Water Technologies set a lender call for 11 a.m. ET on Tuesday to launch a $100 million incremental covenant-light first-lien term loan (B2/B), according to a market source.

Pricing on the incremental loan is Libor plus 350 bps with a 1% Libor floor, in line with existing term loan pricing, and the debt is getting 101 soft call protection for six months, the source said.

Original issue discount talk on the incremental loan is not yet available.

Deutsche Bank Securities Inc. is leading the deal that will be used to refinance an existing second-lien term loan.

Infiltrator Water is an Old Saybrook, Conn.-based provider of engineered plastic chambers, synthetic aggregate leach fields, tanks and accessories for the onsite wastewater and stormwater industries.

Gavilan plans second-lien

Gavilan Resources will hold a bank meeting on Wednesday to launch an up to $500 million second-lien term loan, a market source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition by Sanchez Energy Corp. and Blackstone Energy Partners of Anadarko Petroleum Corp.’s working interest in around 318,000 gross operated acres in the Western Eagle Ford for about $2.3 billion, subject to normal and customary closing conditions and purchase price adjustments.

At the end of the fourth quarter of 2016, sales volumes from the properties being acquired totaled about 45,000 barrels of liquids per day and around 131 million cubic feet of natural gas per day.

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

GlobalLogic coming soon

GlobalLogic scheduled a lender call on Tuesday to launch a fungible $35 million add-on term loan talked at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99.5, a market source said.

J.P. Morgan Securities LLC is leading the deal that will be used to repay some PIK notes.

GlobalLogic is a California-based provider of software R&D services.

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