Arris, AMC Entertainment, StandardAero, Cvent, Alliant Holdings, Checkers free to trade

By Sara Rosenberg

New York, April 20 – Arris Group Inc. tightened the original issue discount on its term loan and then broke for trading on Thursday, and deals from AMC Entertainment Holdings Inc., StandardAero Aviation Holdings Inc., Cvent Inc., Alliant Holdings Intermediate LLC and Checkers Drive-In Restaurants Inc. all emerged in the secondary market too.

In more happenings, Micro Focus International plc increased the size of its term loan B-2 as plans for a shorter-dated term loan C were eliminated, outlined tranching on its new term loan B and updated pricing on all of the tranches.

Also, Tempo Acquisition LLC upsized its term loan B and trimmed pricing, Blucora Inc. lowered the spread on its first-lien term loan, Varsity Brands Inc. lifted pricing on its first-lien term loan and Kemet Corp. revised spread, issue price and call protection on its term loan.

Furthermore, Rhodia Acetow moved some funds between its U.S. dollar and euro term loans, increased spread talk on the loans, widened the original issue discount on the U.S. piece and shortened maturities, and Northstar Travel Group upsized its add-on first-lien term loan.

Additionally, Vizient Inc., EMI Music Publishing Group North America Holdings Inc. and PAE Holding Corp. all released price talk on their loan transactions with launch.

Arris tweaks OID, breaks

Arris Group adjusted the original issue discount on its $544 million term loan to 99.75 from 99.5 and left pricing at Libor plus 250 basis points with a 0% Libor floor, according to a market source.

The term loan still has 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday, and by late afternoon the loan had freed to trade with levels quoted at par ¼ bid, par ¾ offered, a trader added.

Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

Arris is a Suwanee, Ga.-based telecommunications company.

AMC starts trading

AMC Entertainment’s $1.3674 billion in covenant-light term loan debt (Ba1/BB) hit the secondary market, with both the $867.4 million senior secured term loan B due Dec. 15, 2022 and the $500 million senior secured term loan B due Dec. 15, 2023 quoted at par 1/8 bid, par ½ offered, a trader said.

Pricing on the term loans is Libor plus 225 bps with a 0% Libor floor, and they were issued at par. The loans include 101 soft call protection for six months.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice the term loans from Libor plus 275 bps with a 0% Libor floor.

Closing is expected on May 9.

AMC is a Leawood, Kan.-based movie exhibitor.

StandardAero frees up

StandardAero Aviation’s $1,151,125,000 term loan due July 7, 2022 (B2/B-) broke, with levels quoted at par bid, par ½ offered, according to a market source.

The term loan, which includes a fungible $240 million incremental piece and a repricing of an existing $911,125,000 term loan, is priced at Libor plus 375 bps with a 1% Libor floor. The incremental loan was issued at an original issue discount of 99.5 and the repricing was issued at par. The term loan debt has 101 soft call protection for six months.

Jefferies Finance LLC and Nomura are leading the deal.

Proceeds from the incremental loan will be used to fund the acquisition of PAS International Holdings, to repay debt and for general corporate purposes, and the repricing will take the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

StandardAero is a Scottsdale, Ariz.-based provider of aircraft engine maintenance, repair and overhaul services. PAS is a high technology components provider for the aerospace, oil and gas, and industrial gas turbine markets.

Cvent tops issue price

Cvent’s $420 million first-lien term loan B due November 2023 freed to trade as well, with levels seen at par ¼ bid, 101¼ offered, according to a market source.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor, and it was issued at par. There is 101 soft call protection for six months.

Goldman Sachs Bank USA, Antares Capital, Jefferies Finance LLC and RBC Capital Markets LLC are leading the deal that will be used to reprice an existing term loan B from Libor plus 500 bps with a 1% Libor floor.

The estimated closing date for the repricing is Monday.

Cvent is a Tysons Corner, Va.-based software-as-a-service solutions provider to the enterprise meetings and event management industry.

Alliant hits secondary

Alliant Holdings’ fungible $200 million add-on covenant-light term loan B due Aug. 14, 2022 started trading too, with levels quoted at par ¼ bid, par ¾ offered, a trader remarked.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor, and it was issued at par. The debt has 101 soft call protection until July 24.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets LLC are leading the deal that will be used to fund a dividend to shareholders.

Closing is expected on Tuesday.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Checkers levels surface

Checkers’ bank debt also broke, with the $192.5 million seven-year first-lien term loan (B1/B-) quoted at 99¼ bid, according to a trader.

Pricing on the first-lien term loan is Libor plus 425 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The company’s $305 million in credit facilities also include a $25 million revolver (B1/B-) and an $87.5 million eight-year second-lien term loan that was privately placed.

Jefferies Finance LLC, Antares Capital, KeyBanc Capital Markets and Citizens are leading the deal that will be used to help fund the buyout of the company by Oak Hill Capital Partners from Sentinel Capital Partners in a transaction valued at about $525 million.

Closing is expected this quarter, subject to HSR approval and other customary conditions.

Checkers is a Tampa, Fla.-based operator and franchisor of drive-thru hamburger quick-service restaurants.

BWIC announced

Also in trading, a $21.66 million Bid Wanted In Competition surfaced, with bids due at 11 a.m. ET on Friday, a trader said.

Some of the names in the portfolio are Exgen Texas Power LLC, Houghton Mifflin Harcourt Publishers Inc., Talen Energy Supply LLC, WEX Inc. and Klockner Pentaplast of America Inc.

There are about 24 issuers in the BWIC, the trader added.

Micro Focus restructures

Back in the primary market, Micro Focus upsized its covenant-light term loan B-2 due November 2021 at MA Finance Co. to $1,515,000,000 from $1,103,000,000 and canceled plans for a $412 million covenant-light term loan C due November 2019, according to a market source.

Also, original issue discount talk on the term loan B-2 was changed to a range of 99.875 to par from just par, with pricing staying at Libor plus 250 bps with a 0% Libor floor, the source said.

Regarding the company’s new $3,485,000,000-equivalent seven-year from escrow funding term loan B, the breakdown was revealed to be a $2.6 billion tranche at Seattle SpinCo, a $385 million tranche at MA Finance Co. and a €470 million tranche at MA Finance Co., versus talk at launch of a minimum tranche size of $500 million equivalent in either U.S. dollars or euros, with specific tranching to be determined.

Furthermore, pricing on the U.S. term loan B at Seattle SpinCo and U.S. term loan B at MA Finance was tightened to Libor plus 275 bps with a 0% Libor floor and an original issue discount of 99.75, from talk of Libor plus 300 bps to 325 bps with a 0% floor and a discount of 99.5, and pricing on the euro term loan B at MA Finance was adjusted to Euribor plus 300 bps with a 0% floor and a discount of 99.75 from talk of Euribor plus 300 bps to 325 bps with a 0% floor and a discount of 99.5, the source continued.

Micro Focus doc changes

Along with the size and pricing updates, Micro Focus removed the MFN sunset, eliminated the MFN carve-out applicable to the $350 million incremental debt of the freebie and disclosed that a 25 bps step-down on all term loan tranches is subject to senior secured leverage of less than 3 times and can only be applied post-delivery of April 2018 financial statements.

All of the $5 billion-equivalent in term loans have 101 soft call protection for six months from the escrow date.

The term loan C due November 2019 that was eliminated had been talked at Libor plus 225 bps with a 0% Libor floor and a par issue price.

In addition to the term loans, the company plans on getting a new $500 million revolver.

Micro Focus lead banks

J.P. Morgan Securities LLC, Barclays, HSBC, Natwest Markets and Bank of America Merrill Lynch are leading Micro Focus’ credit facilities (B1/BB-).

Proceeds will be used to refinance an existing term loan C, to amend and reprice an existing term loan B-2, to fund the pre-completion cash payment of $2.5 billion for the acquisition of Hewlett Packard Enterprise’s software business segment (HPE Software), to fund the return value of between $400 million and $500 million to Micro Focus’ shareholders, and for general corporate and working capital purposes.

Cashless roll is available for existing term loan C and term loan B-2 lenders into the $1,515,000,000 term loan B-2 tranche only, and existing consenting lenders were told to re-execute the amendment documentation by close of business on Thursday, the source added.

Allocations are expected to be announced on Friday.

Micro Focus is a Newbury, England-based enterprise software company. HPE Software is an infrastructure software provider.

Tempo modified

Tempo Acquisition increased its term loan B size to $2.67 billion from $2.44 billion and decreased pricing to Libor plus 300 basis points from Libor plus 325 bps, according to a market source.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, RBC Capital Markets and CIBC are leading the deal that will help fund the acquisition of Aon plc’s technology-enabled benefits and human resources platform by Blackstone for cash consideration of up to $4.8 billion, including $4.3 billion at closing and additional consideration of up to $500 million based on future performance.

The company will also use $500 million in bonds, downsized from $730 million with the term loan upsizing, and equity to fund the acquisition, which is expected to close by the end of this quarter.

Blucora flexes

Blucora trimmed pricing on its $375 million seven-year covenant-light first-lien term loan to Libor plus 375 bps from talk of Libor plus 400 bps to 425 bps, and left the 1% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source said.

The company’s $425 million in credit facilities (B1/BB-) also include a $50 million revolver.

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

Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance an existing first-lien term loan and a convertible note.

Blucora is a Bellevue, Wash.-based technology-enabled financial solutions provider focused on tax preparation and financial advisory services.

Varsity ups spread

Varsity Brands raised pricing on its $999.9 million first-lien term loan due December 2021 to Libor plus 350 bps from Libor plus 325 bps, a market source remarked.

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

Recommitments were due at noon ET on Thursday, the source said.

Goldman Sachs Bank USA, Barclays and Jefferies Finance LLC are leading the deal that will be used to reprice an existing term loan from Libor plus 400 bps with a 1% Libor floor.

The size of the loan at launch was described as $1,003,000,000, but there was a recent amortization payment bringing the actual amount outstanding and getting repriced to $999.9 million, the source added.

Varsity Brands is a Memphis, Tenn.-based provider of sports, cheerleading and achievement-related products to schools.

Kemet sets changes

Kemet modified pricing on its $345 million senior secured covenant-light term loan B (B3/B) to Libor plus 600 bps from Libor plus 550 bps, widened the original issue discount to 97 from 99.5 and sweetened the call protection to a hard call of 102 in year one and 101 in year two from a 101 soft call for six months, a market source said.

The term loan still has a 1% Libor floor.

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

Bank of America Merrill Lynch is leading the deal that will be used to help refinance notes due 2018.

Kemet is a Simpsonville, S.C.-based supplier of electronic components.

Rhodia reworks deal

Rhodia Acetow scaled back its U.S. dollar equivalent covenant-light term loan to €215 million from €367 million, lifted pricing to Libor plus 550 bps from Libor plus 500 bps and moved the original issue discount to 98 from 99, according to a market source.

Additionally, the company raised its euro covenant-light term loan size to €350 million from €198 million and increased price talk to Euribor plus 475 bps to 500 bps from Euribor plus 450 bps, the source said.

Furthermore, the maturities on both term loans were shortened to six years from seven years.

As before, the euro term loan has an original issue discount of 99, and both term loans have a 1% floor.

The company’s €630 million-equivalent in credit facilities (B1/B+) also include a €65 million revolver.

Commitments are due at 10 a.m. ET on Friday, the source added.

Credit Suisse, Barclays, Deutsche Bank, Goldman Sachs, UBS, RBS and Bank of America Merrill Lynch are leading the deal that will be used to help fund the buyout of the company by Blackstone.

Rhodia is a producer of cellulose acetate flakes and acetate tow.

Northstar upsizes

Northstar Travel Group increased its fungible add-on first-lien term loan to $83 million from $58 million, a market source said.

As before, pricing on the add-on loan is Libor plus 625 bps with a 1% Libor floor, which matches existing first-lien term loan pricing, the add-on loan is being sold at an original issue discount of 99 and all of the first-lien term loan debt is getting 101 soft call protection for six months.

Macquarie Capital (USA) Inc. is leading the deal that will be used to fund an acquisition, and, due to the upsizing, to pay a dividend, the source added.

Recommitments are due by the end of the day on Friday.

Northstar Travel is a Secaucus, N.J.-based provider of business-to-business information, content, events, data, research, custom content and software dedicated to the global travel and meeting industries.

Vizient discloses talk

Also on the new deal front, Vizient held its lender call on Thursday, launching its $1,122,000,000 term loan B due Feb, 13, 2023 at talk of Libor plus 350 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments/consents are due at noon ET on April 27, the source added.

Barclays is leading the deal that will be used to reprice an existing term loan B from Libor plus 400 bps with a 1% Libor floor.

The company is also getting a $105 million revolver.

Vizient is an Irving, Texas-based network of not-for-profit health care organizations.

EMI details emerge

EMI Music Publishing Group launched on its afternoon call a $1,064,000,000 first-lien term loan (Ba3/BB-) due August 2023 talked at Libor plus 250 bps with no Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due on May 1, the source said.

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

EMI Music is a New York-based music publisher.

PAE releases guidance

PAE Holding came out with price talk on its $95 million incremental first-lien term loan B due 2022 and $58 million incremental second-lien term loan due 2023 with its lender call, a market source said.

The first-lien term loan B is talked at Libor plus 550 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection until October, and the second-lien term loan is talked at Libor plus 950 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 until October and 101 for the following year, the source continued.

Commitments are due at noon ET on April 28.

Bank of America Merrill Lynch, Citizens Bank and Morgan Stanley Senior Funding Inc. are leading the $153 million in term loans that will be used to fund the acquisition of FCi Federal, an Ashburn, Va.-based provider of essential services for immigration and national security including adjudication support, eligibility verification and business process outsourcing services for federal government customers.

Closing on the acquisition is subject to regulatory approval.

PAE, a portfolio company of Platinum Equity, is an Arlington, Va.-based provider of support services for the U.S. government, its allied partners and international organizations.

Allied Universal closes

In other news, Allied Universal Holdco LLC completed the repricing of its $1.41 billion first-lien term loan due July 28, 2022 and $100 million first-lien delayed-draw term loan due July 28, 2022, according to a news release.

Pricing on the term loan debt (B2/B+) is Libor plus 375 bps with a 1% Libor floor, and the debt has 101 soft call protection for six months. The repricing was issued at par and the delayed-draw term loan was sold at an original issue discount of 99.5. Included in the delayed-draw term loan is a ticking fee of the full spread from days 31 to 90 and the full spread plus the greater of the floor and 30-day Libor thereafter.

During syndication, pricing on the term loans firmed at the high end of the Libor plus 350 bps to 375 bps talk.

Credit Suisse Securities (USA) LLC led the deal that is being used to reprice an existing first-lien term loan from Libor plus 450 bps with a 1% Libor floor and to fund pending tuck-in acquisitions.

Allied Universal is a Santa Ana, Calif.-based contract security services company.

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