Intelsat, Avast, Rackspace, MDVIP, Summit, United Airlines, American Airlines break

By Sara Rosenberg

New York, Nov. 10 – Intelsat Jackson Holdings SA increased the size of its term loan, set the spread and original issue discount at the wide side of guidance, and sweetened the call protection, and Avast Software finalized the issue price on its term loans at the tight end of talk, and then both of these deals freed up for trading on Friday.

Also, Rackspace Hosting Inc. modified the original issue discount on add-on term loan B and added call protection, MDVIP LLC raised pricing on its first-lien term loan and extended the call premium, and Summit Materials LLC firmed the spread on its term loan B at the low end of talk and tightened the original issue discount, and then these deals emerged in the secondary market too.

Other deals to break for trading during the session included United Airlines Inc., Intralinks Holdings Inc. and American Airlines Inc.

In more happenings, Canyon Resource Holdings LLC pulled its second-lien term loan from market, Mitchell International Inc., Circor International Inc., Station Casinos LLC and Transcendia released price talk with launch, and 84 Lumber Co., PODS LLC and Paysafe Group plc joined the near-term calendar.

Intelsat reworked, frees up

Intelsat Jackson lifted its six-year senior secured term loan B-3 to $2 billion from $1.6 billion, finalized pricing at Libor plus 375 basis points, the high end of the Libor plus 350 bps to 375 bps talk, set the original issue discount at 99, the wide end of the 99 to 99.5 talk, and extended the 101 soft call protection to one year from six months, according to a market source.

As before, the term loan has a 1% Libor floor.

The term loan broke for trading on Friday afternoon and levels were quoted at 99¼ bid, 99¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., J.P. Morgan Chase Bank, Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal that will be used to amend and extend a portion of the existing term loan B due 2019.

Intelsat is a Luxembourg-based communications satellite company.

Avast updated, trades

Avast Software set the issue price on its $1,229,000,000 covenant-light term loan B due September 2023 and €508 million covenant-light term loan B due September 2023 at par, the tight end of the 99.75 to par talk, a market source said.

As before, the U.S. term loan is priced at Libor plus 275 bps with a 1% Libor floor, the euro term loan is priced at Euribor plus 300 bps with a 0% floor and both tranches have 101 soft call protection for six months.

With final terms in place, the debt made its way into the secondary market, and the U.S. term loan was quoted at par ¼ bid, par ¾ offered, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing U.S. term loan from Libor plus 325 bps with a 1% Libor floor and an existing euro term loan from Euribor plus 350 bps with a 0% floor.

Avast is a Prague-based maker of security software.

Rackspace tweaked, breaks

Rackspace changed the original issue discount on its $800 million senior secured add-on covenant-light term loan B (Ba3/BB-/BB+) due Nov. 3, 2023 to 99.75 from talk in the range of 99.25 to 99.5, and added 101 soft call protection for six months to the add-on debt and to the existing term loan B, according to a market source.

Pricing on the add-on loan matches existing term B pricing at Libor plus 300 bps with a 1% Libor floor.

Recommitments were due at 1 p.m. ET on Friday, and then the loan broke for trading, with levels quoted at par bid, par ½ offered, another source said.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, BMO Capital Markets and Apollo are leading the deal that will fund the acquisition of Datapipe.

As part of the transaction, the majority owner of Datapipe, Abry Partners, will receive equity in Rackspace.

Closing is expected on Wednesday.

Rackspace, owned by Apollo Global Management LLC and co-investors, is a San Antonio-based multi-cloud managed services company. Datapipe is a Jersey City, N.J.-based provider of managed services across public and private clouds, managed hosting and colocation.

MDVIP revised, trades

MDVIP raised pricing on its $215 million seven-year first-lien term loan (B2/B) to Libor plus 425 bps from talk in the range of Libor plus 375 bps to 400 bps and pushed out the 101 soft call protection to one year from six months, a market source said.

The term loan still has a 1% Libor floor and an original issue discount of 99.5.

With terms set, the first-lien term loan freed to trade in the morning and levels were seen at par bid, par ½ offered, another source added.

The company’s $335 million of credit facilities also include a $25 million revolver and a $95 million eight-year second-lien term loan that has been pre-placed.

Jefferies LLC, Antares Capital and Societe Generale are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners.

MDVIP is a provider of membership-based private health care services.

Summit sets terms, frees up

Summit Materials firmed pricing on its $635 million seven-year term loan B at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, and tightened the original issue discount to 99.75 from 99.5, a market source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at noon ET, and then the loan surfaced in the secondary market, with levels quoted at par ¼ bid, par 5/8 offered, a trader added.

Bank of America Merrill Lynch is leading the deal that will be used to replace an existing term loan due 2022 that is priced at Libor plus 275 bps with a 0.75% Libor floor.

Summit Materials is a Denver-based construction materials company.

United Airlines tops par

United Airlines’ $1,493,000,000 senior secured term loan due April 1, 2024 also broke, with levels quoted at par ¼ bid, par ½ offered, a trader remarked.

Pricing on the loan is Libor plus 200 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Barclays, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Wells Fargo Securities LLC, ICBC, BNP Paribas Securities Corp., Credit Agricole, Standard Chartered, State Bank of India and BBVA are leading the deal that will be used to reprice an existing term loan down from Libor plus 225 bps with a 0% Libor floor.

Closing is expected on Wednesday.

United Airlines is a Chicago-based airline operator.

Intralinks hits secondary

Intralinks’ credit facilities began trading as well, with the $475 million seven-year covenant-light first-lien term loan quoted at 99¾ bid, par ½ offered and the $150 million eight-year covenant-light second-lien term loan quoted at 99½ bid, 101 offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 400 bps with a 1% 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 800 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

On Thursday, the first-lien term loan was upsized from $450 million and pricing was set at the low end of the Libor plus 400 bps to 425 bps talk, and pricing on the second-lien loan firmed at the tight end of the Libor plus 800 bps to 825 bps talk.

The company’s $675 million of senior secured credit facilities also include a $50 million five-year revolver.

Intralinks funding buyout

Proceeds from Intralinks’ credit facilities will be used to help fund its acquisition by Siris Capital Group LLC from Synchronoss Technologies Inc. for about $1 billion.

RBC Capital Markets, Golub Capital and Macquarie Capital are leading the financing.

Closing is expected in mid-November, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other foreign antitrust regulatory approvals.

Intralinks is a New York-based provider of cloud-based virtual data room and highly secure team collaboration solutions to financial institutions and enterprises.

American Airlines trades

Another deal to break was American Airlines’ $1.25 billion senior secured term loan B due Dec. 14, 2023, with levels seen at par bid, par ¼ offered, a market source said.

Pricing on the loan is Libor plus 200 bps with a 0% Libor floor, and it was issued at par. The debt has 101 soft call protection for six months.

Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, ICBC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Credit Agricole, Standard Chartered Bank, SMBC, U.S. Bank and Texas Capital Bank are leading the deal that will be used to reprice an existing term loan down from Libor plus 250 bps with a 0.75% Libor floor.

Closing is targeted for Tuesday.

American Airlines is a Fort Worth-based airline company.

Canyon withdrawn

Back in the primary market, Canyon Resource pulled its $135 million 5.5-year senior secured second-lien term loan (Caa2/CCC) and concurrent $375 million five-year senior secured first-lien notes offering (B3/B) due to market conditions, according to a market source.

The second-lien term loan was talked at 13% cash with an original issue discount of 97 and call protection of non-callable for one year, then at 105 in year two, 103 in year three and 101 in year four, and the notes were talked to yield 10¾% to 11% and had two years of call protection.

Jefferies LLC was leading the deal that was going to being issued in connection with the combination of Bowie Resource Partners LLC’s (to be renamed Canyon Resource Partners LLC) and Murray Energy Corp.’s Western Bituminous assets and capabilities in a strategic relationship resulting in the formation of Canyon Consolidated Resources LLC.

Proceeds were going to be used to refinance existing credit facilities, fund the acquisition of Bowie Resource Partners, fund fees and expenses and place cash on the balance sheet.

Mitchell releases talk

Mitchell International held its bank meeting on Friday and announced price talk on its $930 million seven-year covenant-light first-lien term loan and $450 million eight-year covenant-light second-lien term loan, according to a market source.

The first-lien term loan is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 725 bps to 750 bps with a 1% Libor floor, a discount of 99.5 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $1.53 billion of credit facilities also include a $75 million revolver and a $75 million delayed-draw first-lien term loan.

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

Jefferies LLC, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the deal, with Jefferies the left lead on the first-lien and KKR the left lead on the second-lien.

Proceeds will be used to refinance existing debt and fund a distribution to shareholders.

Mitchell is a San Diego-based provider of technology, connectivity and information solutions to the property and casualty claims and collision repair industries.

Circor discloses guidance

Circor International launched at its morning bank meeting its $785 million seven-year covenant-light term loan B at talk of Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.5, a market source said. The term loan has 101 soft call protection for six months.

The company’s $935 million senior secured deal (B1/B+) also includes a $150 million five-year revolver.

Commitments are due at 5 p.m. ET on Nov. 20.

Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the acquisition of Colfax Fluid Handling from Colfax Corp. for about $855 million, including $542 million in cash, the issuance of about 3.3 million in new Circor shares to Colfax and the assumption of pension plans, and to refinance existing debt.

Net debt to EBITDA at closing will be around 5 times.

Closing is expected by the end of the year, subject to regulatory approvals and other customary conditions.

Circor is a Burlington, Mass.-based designer, manufacturer and marketer of highly engineered products and sub-systems for markets including oil & gas, power generation and aerospace & defense. Colfax Fluid Handling is a provider of engineering, development‚ manufacturing‚ distribution‚ service and support of fluid handling systems.

Station Casinos repricing

Station Casinos launched without a call a $1,833,000,000 covenant-light term loan B (Ba3/BB+) due June 2023 talked at Libor plus 225 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.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Citizens Bank, Credit Suisse Securities (USA) LLC, Fifth Third Bank, Macquarie Capital (USA) Inc., SunTrust Robinson Humphrey Inc. and UBS Investment Bank are leading the deal that will be used to reprice an existing term loan down from Libor plus 250 bps with a 0.75% Libor floor.

Closing is expected on Nov. 22.

Station Casinos is a Las Vegas-based casino company.

Transcendia holds call

Transcendia hosted a lender call at 11 a.m. ET to launch a $295 million first-lien senior secured term loan B (B2/B) due May 2024 at talk of Libor plus 325 bps to 350 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 on Thursday, the source added.

Goldman Sachs Bank USA and KeyBanc Capital Markets LLC are leading the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 1% Libor floor.

Transcendia is a Franklin Park, Ill.-based provider of custom engineered specialty films materials across a broad range of end-markets.

84 Lumber on deck

84 Lumber set a lender call for 10:30 a.m. ET on Tuesday to launch a $343.4 million covenant-light term loan B due Oct. 25, 2023 that has 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Nov. 17, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B.

84 Lumber is an Eighty Four, Pa.-based supplier of building materials, manufactured components and services for single and multi-family residences and commercial buildings.

PODS joins calendar

PODS scheduled a lender call for 1 p.m. ET on Monday to launch a $775 million senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used to refinance existing debt, fund a dividend, and pay related fees and expenses.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Paysafe coming soon

Paysafe will hold a bank meeting in London on Wednesday and one in New York at 9:30 a.m. ET on Nov. 17 to launch its credit facilities, a market source said.

Based on the commitment letter, the facilities are expected to include a $175 million six-year revolver, a $505 million seven-year term loan B-1, a $505 million equivalent seven-year euro term loan B-2, a £342.5 million seven-year term loan B-3, a £342.5 million seven-year term loan B-4, a $250 million eight-year second-lien term loan and a $250 million equivalent eight-year euro second-lien term loan.

The term loan B debt is anticipated to have 101 soft call protection for six months and the second-lien term loan is expected to have call protection of 102 in year one and 101 in year two.

Credit Suisse, Jefferies, Morgan Stanley, BMO and Deutsche Bank are leading the deal that will be used to help fund the buyout of the company by Blackstone and CVC.

Paysafe is an Isle of Man-based provider of end-to-end payment solutions.

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