Virtu Financial discloses guidance; Caliber Collision, Radiology Partners ready deals

By Sara Rosenberg

New York, Jan. 11 – In the primary market on Friday, Virtu Financial LLC came out with price talk on its term loan in connection with its bank meeting.

Furthermore, Caliber Collision (Wand NewCo3 Inc.) and Radiology Partners Inc. joined the near-term new issue calendar.

Virtu reveals talk

Virtu Financial held its bank meeting in the morning and announced talk on its $1.5 billion seven-year first-lien term loan at Libor plus 350 basis points with a 25 bps leverage-based step-down, a 0% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

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

The company’s $1.55 billion of senior secured credit facilities (Ba3/B+/BB-) also include a $50 million three-year revolver.

Commitments are due at 5 p.m. ET on Jan. 24, the source said.

Jefferies LLC and RBC Capital Markets are leading the deal.

Virtu buying ITG

Proceeds from Virtu’s credit facilities and cash on hand will be used to fund the purchase of Investment Technology Group Inc. for $30.30 per share, or about $1 billion, to refinance existing first-lien debt at both companies and to fund fees and expenses associated with the transaction.

Total leverage will be 2.76 times based on trailing 12 months adjusted EBITDA as of Sept. 30.

Closing on the acquisition is expected in the first half of this year, subject to Investment Technology shareholder approval and regulatory approvals.

Virtu is a New York-based technology-enabled market maker and liquidity provider to the financial markets. Investment Technology is a New York-based financial technology company.

Caliber on deck

Caliber Collision scheduled a bank meeting for 1:30 p.m. ET in New York on Tuesday to launch a $1.85 billion seven-year covenant-light term loan B, a market source remarked.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Jefferies LLC, SunTrust Robinson Humphrey Inc. and BMO Capital Markets are leading the deal that is being done in connection with the merger of Caliber Collision and Abra Auto Body Repair of America.

Under the agreement, Hellman & Freidman LLC, Abra’s majority shareholder, will become the majority shareholder of the combined company. Omers, a majority stakeholder in Caliber, and Leonard Green & Partners L.P., a minority stakeholder in Caliber, will remain significant minority shareholders in the combined company.

The term loan will be used to refinance existing debt, purchase a portion of existing Caliber equity from Omers, Leonard Green and other shareholders, purchase non-Hellman & Freidman Abra equity and pay related fees and expenses.

Closing on the merger is expected early this year.

Lewisville, Texas-based Caliber and Brooklyn Park, Minn.-based Abra are vehicle repair companies.

Radiology coming soon

Radiology Partners set a lender call for 11:30 a.m. ET on Wednesday to launch a $365 million incremental first-lien term loan B, according to a market source.

Barclays and Golub are leading the deal that will be used to fund the acquisition of Austin Radiological Association and repay revolver borrowings associated with the acquisition of Desert Radiology.

New Enterprise Associates is the sponsor.

Radiology Partners is an El Segundo, Calif.-based radiology physician practice management company.

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