Steinway, Charter NEX, Sparta break; Access CIG, Invictus, Equian, Lifetime Brands revised

By Sara Rosenberg

New York, Feb. 13 – Steinway Musical Instruments Inc.’s term loan B emerged in the secondary market on Tuesday and the debt was seen trading above its original issue discount, and deals from Charter NEX US Inc. and Sparta Systems Inc. freed up too.

Moving to the primary market, Access CIG LLC cut pricing on its first- and second-lien term loans, and Invictus (Fire Safety and Oil Additives Divisions of Israel Chemicals Ltd.) tightened spreads and original issue discounts on its first-and second-lien term loans.

Furthermore, Equian LLC narrowed price talk on its incremental term loan B and added a repricing transaction to the mix, and Lifetime Brands Inc. lowered pricing on its term loan B and set the issue price at the narrow end of guidance.

Also, EaglePicher Technologies LLC, American Traffic Solutions (ATS Consolidated Inc.), Shutterfly Inc., PowerTeam Services LLC, Masergy Communications Inc., Medical Solutions Holdings Inc., VAC (VAC Germany Holding GMBH and New VAC US LLC), DuPage Medical Group, Liquidnet Holdings Inc., Davis/Superior Vision (Wink Holdco Inc.) and Lumos Networks (MTN Infrastructure TopCo Inc.) disclosed price talk with launch.

In addition, PSAV, Fusion, Lamar Media Corp., CPM Acquisition Corp., PS Logistics (PS HoldCo LLC) and Accudyne Industries LLC joined this week’s primary calendar.

Steinway hits secondary

Steinway Musical Instruments’ $235 million seven-year covenant-light term loan B (B3/B) freed to trade on Tuesday, with levels seen at par ¼ bid, 101 offered, according to a trader.

Pricing on the term loan is Libor plus 375 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

During syndication, pricing on the loan firmed at the low end of the Libor plus 375 bps to 400 bps talk, and the discount was changed from 99.5.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing term loan B.

Steinway, owned by Paulson & Co., is an Astoria, N.Y.-based musical instruments company.

Charter NEX frees up

Charter NEX’s $606,950,000 term loan (B2/B) due May 16, 2024 broke for trading, with levels quoted at par 1/8 bid, par 3/8 offered, a market source said.

Pricing on the loan is Libor plus 300 bps with a 25 bps leverage-based step-down and a 1% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 325 bps with a step-down and a 1% Libor floor.

The company is also repricing its $75 million revolver due May 16, 2022 to Libor plus 300 bps.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

Sparta Systems breaks

Sparta Systems’ $239.4 million term loan (B2/B-) due Aug. 21, 2024 began trading as well, with levels quoted at par ½ bid, 101 offered, a market source remarked.

The term loan is priced at Libor plus 350 bps with a 25 bps leverage-based step-down and a 1% Libor floor. The loan was issued at par and has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a step-down and a 1% Libor floor.

The company is also repricing a $25 million revolver due Aug. 21, 2022 to Libor plus 350 bps.

Sparta Systems is a Hamilton N.J.-based provider of quality management system software to the pharmaceutical, medical device and CPG industries.

Access CIG modified

Over in the primary market, Access CIG reduced pricing on its $575 million seven-year first-lien term loan (B2/B) and $120 million seven-year delayed-draw first-lien term loan (B2/B) to Libor plus 375 bps from Libor plus 400 bps, and on its $215 million eight-year second-lien term loan (Caa2/CCC+) and $40 million eight-year delayed-draw second-lien term loan (Caa2/CCC+) to Libor plus 775 bps from Libor plus 800 bps, according to a market source.

As before, the first-lien term debt has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the second-lien term loan debt has a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two, and the delayed-draw loans have a ticking fee of half the spread from days 61 to 120 and the full spread thereafter.

The company’s $1.01 billion of senior secured credit facilities also include a $60 million five-year revolver (B2/B).

Recommitments were due at 1 p.m. ET on Tuesday and allocations are targeted for Wednesday.

Jefferies LLC, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used to refinance existing debt, and the delayed-draw loans are intended for acquisitions currently under letters of intent.

Access CIG is a Livermore, Calif.-based provider of physical and digital records and information management services.

Invictus flexes lower

Invictus trimmed pricing on its $545 million seven-year first-lien term loan (B1/B+/BB+) to Libor plus 300 bps from talk in the range of Libor plus 350 bps to 375 bps and revised the original issue discount to 99.75 from 99.5, while leaving the 0% Libor floor and 101 soft call protection for six months intact, a market source remarked.

Additionally, the company lowered pricing on its $170 million eight-year second-lien term loan (Caa1/CCC+/B) to Libor plus 675 bps from talk in the range of Libor plus 750 bps to 775 bps and changed the discount to 99.5 from 99, the source continued. This tranche still has a 0% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $815 million of credit facilities also include a $100 million five-year revolver (B1/B+/BB+).

Final commitments were due at 5 p.m. ET on Tuesday, the source added.

Barclays, Goldman Sachs USA and HSBC Securities (USA) Inc. are leading the deal, with Barclays the administrative agent on the first-lien debt and Goldman the administrative agent on the second-lien loan.

Proceeds will help fund the roughly $1 billion buyout of the company by SK Capital from Israel Chemicals Ltd., which is expected to close in the first half of this year, subject to regulatory approvals and other conditions.

Invictus is a St. Louis-based formulator and manufacturer of fire management chemicals.

Equian reworked

Equian cut price talk on its fungible $315 million incremental covenant-light term loan B due May 19, 2024 to a range of Libor plus 325 bps to 350 bps from Libor plus 375 bps, and left the 1% Libor floor and original issue discount of 99.75 unchanged, according to a market source.

Also, the company is now looking to reprice its existing $422,875,000 term loan B, with talk on the repricing set at Libor plus 325 bps to 350 bps with a 1% Libor floor and a par issue price, versus current pricing of Libor plus 375 bps with a 1% Libor floor, the source said.

Included in the term loan debt is 101 soft call protection for six months.

Recommitments/consents are due at 5 p.m. ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc., Barclays and Deutsche Bank Securities Inc. are leading the deal.

The incremental loan will be used to fund the acquisition of OmniClaim and pay related fees and expenses.

Equian is an Indianapolis-based payment integrity platform.

Lifetime updated

Lifetime Brands lowered the spread on its $275 million seven-year senior secured term loan B to Libor plus 300 bps from Libor plus 400 bps and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

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

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

The company’s $425 million of credit facilities also include a $150 million asset-based revolver.

JPMorgan Chase Bank and Golub Capital are leading the term loan, and the revolver is being led by JPMorgan.

Lifetime buying Filament

Lifetime Brands’ credit facilities will be used to help fund the acquisition of Filament Brands from Centre Partners in a cash and stock transaction valued at about $313 million. Lifetime will issue to Filament’s equity holders at closing newly issued shares representing 27% of Lifetime Brands common stock on a fully diluted basis after accounting for the issuance of additional shares.

Net debt to EBITDA will be less than 4 times after synergies.

Closing is expected in the first half of this year, subject to regulatory approval, Lifetime shareholder approval and other customary conditions.

Lifetime Brands is a Garden City, N.Y.-based provider of branded kitchenware, tableware and other products used in the home. Filament Brands is a Seattle-based housewares company.

EaglePicher sets talk

Also in the primary market, EaglePicher Technologies held its bank meeting on Tuesday, and with the event, price talk on its $405 million seven-year first-lien term loan and $160 million eight-year second-lien term loan was announced, according to a market source.

Talk on the first-lien term loan is Libor plus 325 bps to 350 bps with one 25 bps leverage-based stepdown, a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 725 bps with a 0% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $615 million senior secured deal also includes a $50 million five-year revolver.

Commitments are due on Feb. 27, the source added.

Jefferies LLC, Barclays and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by GTCR from Apollo Global Management LLC.

Closing is expected this quarter.

EaglePicher is a St. Louis-based provider of mission-critical power and energy solutions for high-value applications within the defense, aerospace and medical end markets.

American Traffic guidance

American Traffic Solutions disclosed talk on its $840 million seven-year covenant-light first-lien term loan B and 200 million eight-year covenant-light second-lien term loan with its morning bank meeting, a market source remarked.

Talk on the first-lien term loan is Libor plus 400 bps to 425 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 800 bps to 825 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 continued.

Commitments are due at noon ET on Feb. 23.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., BMO Capital Markets, Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are leading the $1.04 billion in term loans that will be used to finance the acquisition of Highway Tolling Administration and to refinance existing debt.

American Traffic is a provider of traffic safety technology to government clients and toll management, toll insurance, violation management and title and registration services to rental car and fleet management companies.

Shutterfly launches

Shutterfly released talk of Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter on its $825 million senior secured covenant-light term loan B-2 due Aug. 17, 2024 that launched with a lenders’ presentation in the morning, a market source said.

Commitments are due on Feb. 27, the source added.

Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the acquisition of Lifetouch for $825 million in cash and refinance certain debt at Lifetouch.

Closing is expected in the second quarter, subject to regulatory approval and customary conditions.

Shutterfly is a Redwood City, Calif.-based online retailer and manufacturer of personalized products and services. Lifetouch is an Eden Prairie, Minn.-based school photography company.

PowerTeam comes to market

PowerTeam emerged in the morning with plans to hold a lender call at 1 p.m. ET to launch $790 million of credit facilities, according to a market source.

The facilities consist of a $60 million revolver (B), a $595 million seven-year first-lien term loan (B) and a $135 million eight-year second-lien term loan (CCC+).

Talk on the first-lien term loan is 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 talk on the second-lien term loan is Libor plus 725 bps to 750 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 said.

Commitments are due on Feb. 27.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing and fund a shareholder distribution.

PowerTeam is a Cary N.C.-based provider of services to natural gas and electric distribution.

Masergy details surface

Masergy Communications launched on its call a fungible $25 million add-on first-lien term loan and a repricing of its existing first-and second-lien term loans, according to a market source.

Talk on the add-on first-lien term loan and repriced $344 million first-lien term loan is Libor plus 325 bps to 350 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, and talk on the repriced second-lien term loan is Libor plus 750 bps with a 0% Libor floor, a par issue price and 101 hard call protection for 18 months, the source said.

Jefferies LLC and Antares Capital are leading the deal, with Jefferies the left lead on the first-lien and Antares the left lead on the second-lien.

The add-on loan will be used to repay $20 million of the second-lien term loan to bring the balance to $120 million from $140 million currently and for fees, expenses, and accrued interest in connection with the transaction.

The first-lien term loan repricing will take the existing loan down from Libor plus 375 bps with a 1% Libor floor, and the second-lien loan repricing will take the existing loan down from Libor plus 850 bps with a 1% Libor floor.

Masergy amending

Along with the add-on and repricings, Masergy is seeking an amendment to its credit agreement to waive the 101 prepayment premium of the second-lien term loan on the repriced amount and exclude the $20 million second-lien prepayment from the restricted debt payments basket, the source continued.

Commitments and consents are due at 11 a.m. ET on Friday.

A 25 bps amendment fee will be payable to consenting second-lien lenders, the source added.

Masergy is a Plano, Texas-based provider of hybrid networking, managed security and cloud communications solutions.

Medical Solutions guidance

Medical Solutions hosted its call, launching a fungible $140 million incremental first-lien term loan due June 2024 and a repricing of its existing $209.5 million first-lien term loan at talk of Libor plus 375 bps with a 1% Libor floor and 101 soft call protection for six months, a market source remarked.

The incremental loan is talked with an original issue discount of 99.75 and the repricing is offered at par.

Commitments are due at 5 p.m. ET on Feb. 28, the source added.

UBS Investment Bank is leading the deal.

Proceeds from the incremental loan will be used to fund an acquisition and the repricing will take the existing first-lien term loan down from Libor plus 425 bps with a 1% Libor floor.

Medical Solutions is an Omaha-based provider of health care staffing solutions for hospitals.

VAC floats terms

VAC came out with talk of Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99.5 on its $200 million seven-year covenant-light first-lien term loan that launched with a morning bank meeting, a market source said.

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

The company’s $230 million of credit facilities (B) also include a $30 million revolver.

Commitments are due on Feb. 26.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt.

VAC is a provider of highly specialized magnetic alloys and components serving diverse end markets.

DuPage holds call

DuPage Medical Group surfaced in the morning with plans to hold a lender call at 3 p.m. ET to launch a $469 million covenant-light first-lien term loan (B1/B) due August 2024 talked at Libor plus 275 bps with a 0.75% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments are due at 11 a.m. ET on Friday, the source added.

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 300 bps with a 0.75% Libor floor.

DuPage is a Downers Grove, Ill.-based multi-specialty physician group.

Liquidnet repricing

Liquidnet held its call, launching a $195 million 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, according to a market source.

Commitments and consents are due at 11 a.m. ET on Friday, 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.

Liquidnet is a New York-based regulated agency securities broker.

Davis launches incremental

Davis/Superior Vision launched in the morning a fungible $100 million incremental covenant-light term loan B due Dec. 1, 2024 talked at Libor plus 300 bps with a 1% Libor floor, an original issue discount in the 99 area and 101 soft call protection until June 1, 2018, according to a market source.

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

Morgan Stanley Senior Funding Inc. is the sole bookrunner on the deal that will be used to fund a distribution to shareholders. Goldman Sachs Bank USA is the administrative agent.

Davis/Superior Vision is a managed vision care company.

Lumos seeks loan

Lumos Networks held a lender call at 10 a.m. ET to launch a fungible $50 million incremental senior secured covenant-light term loan B due Nov. 17, 2024 talked at Libor plus 325 bps with a 1% Libor floor, an issue price of par to par ¼ and 101 soft call protection until May 17, 2018, a market source remarked.

Commitments were due at 5 p.m. ET on Tuesday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used for general corporate purposes including capital expenditures to support new contract wins.

Lumos is a Waynesboro, Va.-based fiber-based service provider in the Mid-Atlantic region.

PSAV joins calendar

In more happenings, PSAV set a bank meeting for 10 a.m. ET in New York on Wednesday to launch $1,415,000,000 of credit facilities, a market source said.

The facilities consists of a $100 million revolver (B2/B), a $1.03 billion first-lien term loan (B2/B) and a $285 million second-lien term loan (Caa2/CCC+), the source added.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc., KKR Capital Markets and Sumitomo Mitsui are leading the deal that will be used to refinance an existing first-lien term loan and to fund a dividend.

PSAV is a Long Beach, Calif.-based event technology provider.

Fusion plans meeting

Fusion scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch $620 million of senior secured credit facilities, according to a market source.

The facilities consist of a $50 million revolver, a $500 million first-lien term loan and a $70 million second-lien term loan, the source said.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and MUFG are leading the deal that will be used to refinance debt in connection with the all-stock merger of Fusion and the Cloud and Business Services customers, operations and infrastructure of Birch Communications.

Fusion is a New York-based cloud services provider.

Lamar on deck

Lamar Media will hold a lender call on Wednesday to launch a $400 million term loan B (Baa3/BBB-) talked at Libor plus 200 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due on Friday, the source said.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing debt.

Lamar Media is a Baton Rouge, La.-based outdoor advertising company.

CPM readies deal

CPM Acquisition scheduled a lender call for 10:30 a.m. ET on Wednesday to launch $381.8 million of credit facilities, a market source remarked.

The facilities consist of a $20 million revolver due April 2020 and a $361.8 million covenant-light first-lien term loan due April 2022, the source said.

Commitments are due at noon ET on Feb. 22.

BMO Capital Markets is leading the deal that will be used to reprice existing bank debt.

CPM is a supplier of process equipment used for oilseed processing and animal feed production.

PS Logistics coming soon

PS Logistics set a bank meeting for 10:30 a.m. ET in New York on Thursday to launch $296 million of credit facilities, according to a market source.

The facilities consist of a $50 million ABL revolver and a $246 million seven-year first-lien term loan, the source said.

UBS Investment Bank is leading the deal that will be used to help fund the buyout of the company by One Equity Partners.

PS Logistics is a flatbed transportation solution provider.

Accudyne joins calendar

Accudyne Industries will hold a lender call at 11 a.m. ET on Wednesday to launch a repricing of its existing $822,937,500 senior secured term loan B, a market source said.

Morgan Stanley Senior Funding Inc. is leading the deal.

Accudyne is a Dallas-based provider of precision engineered, process-critical and technologically advanced flow control systems and industrial compressors.

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