Infoblox, Barracuda, St. George’s break; U.S. Anesthesia, DexKo, WEX revisions surface

By Sara Rosenberg

New York, Jan. 11 – Infoblox Inc. set pricing on its term loan at the high end of guidance, lowered the Libor floor and then freed up for trading on Thursday, and deals from Barracuda Networks Inc. and St. George’s University hit the secondary market as well.

In other news, U.S. Anesthesia Partners lowered the spread on its add-on term loan and added a repricing proposal to its transaction, DexKo Global Inc. modified the issue price on its U.S. incremental first-lien term loan, and WEX Inc. upsized its add-on term loan B.

Furthermore, Deason 74 Minerals LP, Ping Identity Corp. and Digicel International Finance Ltd. released price talk with launch, and Safe Fleet Holdings LLC and Altran Technologies joined the near-term primary calendar.

Infoblox updated, trades

Infoblox firmed pricing on its $497.5 million covenant-light first-lien term loan (B1/B-) due Nov. 7, 2023 at Libor plus 450 basis points, the high end of the Libor plus 425 bps to 450 bps talk, and changed the Libor floor to 0% from 1%, according to a market source.

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

With final terms in place, the loan made its way into the secondary market on Thursday and levels were quoted at par 3/8 bid, par 7/8 offered, a trader remarked.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 500 bps with a 1% Libor floor.

Infoblox is a Santa Clara, Calif.-based provider of Actionable Network Intelligence to enterprise, government and service provider customers.

Barracuda Networks breaks

Barracuda Networks’ credit facilities also freed to trade, with the $555 million first-lien term loan (B2/B-/BB-) quoted at par ½ bid, 101 offered and the $205 million second-lien term loan (Caa2/CCC+/CCC+) quoted at 101½ bid, a market source remarked.

Pricing on the first-lien term loan is Libor plus 325 bps 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.

The second-lien term loan is priced at Libor plus 725 bps with a 1% Libor floor and was sold at a discount of 99.5. This tranche has hard call protection of 102 in year one and 101 in year two.

The term loans have a ticking fee of half the margin from days 45 to 75 and the full margin thereafter.

During syndication, pricing on the first-lien term loan was lowered from talk in the range of Libor plus 350 bps to 375 bps and the discount was modified from 99.5, and pricing on the second-lien term loan was trimmed from talk in the range of Libor plus 750 bps to 775 bps and the discount was tightened from 99.

The company’s $835 million of senior secured credit facilities also include a $75 million revolver (B2/B-/BB-).

Barracuda being acquired

Proceeds from Barracuda Networks’ credit facilities will be used with about $740 million in equity to fund its buyout by Thoma Bravo LLC for $27.55 in cash per share. The transaction is valued at $1.6 billion.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the bank deal.

Closing is expected before the company’s fiscal year-end of Feb. 28, subject to shareholder approval, regulatory approvals and other customary conditions.

Barracuda Networks is a Campbell, Calif.-based provider of cloud-enabled security and data protection solutions.

St. George’s frees up

St. George’s University’s $672.8 million term loan B due July 6, 2022 began trading too, with levels quoted at par ¾ bid, 101½ offered, a trader said.

Pricing on the term loan is Libor plus 375 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 425 bps with a 1% Libor floor.

St. George’s is a Grenada, West Indies-based educational institution providing students with medical degrees as well as veterinary and liberal arts graduate and undergraduate degrees.

U.S. Anesthesia reworked

Returning to the primary market, U.S. Anesthesia Partners trimmed pricing on its fungible $190 million add-on senior secured term loan B (B1/B) due June 23, 2024 to Libor plus 300 bps from Libor plus 325 bps and removed the step-down to Libor plus 300 bps at 4 times net first-lien leverage, according to a market source.

Also, the company is now seeking a repricing of its existing $948 million senior secured term loan B (B1/B) due June 23, 2024 at talk of Libor plus 300 bps with a par issue price, and 101 soft call protection for six months is being added to all of the term loan B debt, the source said.

The loans have a 1% Libor floor, and the add-on is still being offered at an original issue discount of 99.75.

Recommitments are due at 5 p.m. ET on Tuesday, the source added.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., BMO Capital Markets, Capital One and Antares Capital are the lead arrangers on the deal.

The add-on will be used for acquisitions, and the repricing will take the existing term loan down from Libor plus 325 bps with a step-down to Libor plus 300 bps at 4 times net first-lien leverage and a 1% Libor floor.

U.S. Anesthesia Partners is a Fort Lauderdale, Fla.-based physician-service organization that focuses on providing anesthesia and pain management services to patients.

DexKo tweaks deal

DexKo changed the issue price on its $80 million incremental first-lien term loan due July 24, 2024, of which $50 million is delayed-draw, to par from 99.75, a market source remarked.

Pricing on the U.S. incremental loan as well as the repricing of the company’s existing $569 million first-lien term loan due July 24, 2024 remained at Libor plus 350 bps with a 1% Libor floor.

The company is also getting a €110 million incremental first-lien term loan due July 24, 2024, of which €90 million is delayed-draw, and repricing its existing €349 million first-lien term loan due July 24, 2024, and these tranches continue to be talked at Euribor plus 375 bps to 400 bps with a 0% floor.

As before, the incremental euro loan is offered with an original issue discount of 99.75, the repricings are offered at par, all of the term loans have 101 soft call protection for six months, and the delayed-draw tranches have a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

Commitments are due at noon ET on Tuesday, moved up from 5 p.m. ET on Tuesday, the source added.

DexKo lead banks

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are leading DexKo’s term loans (B1/B).

The add-on term loans will be used to fund tuck-in acquisitions, the U.S. repricing will take the existing term loan down from Libor plus 400 bps with a 1% Libor floor and the euro repricing will take the existing loan down from Euribor plus 450 bps with a 0% floor.

DexKo is a Novi, Mich.-based supplier of highly engineered running gear technology, chassis assemblies and related components.

WEX lifts size

WEX increased its fungible add-on covenant-light term loan B due July 1, 2023 to $150 million from $100 million, according to a market source.

The add-on loan and repricing of the company’s existing $1,185,000,000 covenant-light term loan B due July 1, 2023 are still priced at Libor plus 225 bps with a 0% Libor floor and an original issue discount of 99.875, and include 101 soft call protection for six months.

Recommitments are due at 10 a.m. ET on Friday. Allocations are expected thereafter, the source said.

Bank of America Merrill Lynch, Citizens Bank, MUFG, SunTrust Robinson Humphrey Inc. and BMO Capital Markets are leading the deal.

The add-on loan will be used pay down revolver borrowings, and the repricing will take the existing term loan B down from Libor plus 275 bps with a 0% Libor floor.

WEX is a South Portland, Maine-based provider of corporate payment solutions.

Deason 74 guidance

In more primary happenings, Deason 74 Minerals held its lender call on Thursday, launching its $300 million six-year covenant-light term loan B at talk of Libor plus 650 bps with a 0% Libor floor, an original issue discount of 98 to 99 and call protection of non-callable for one year, then at 102 in year two and 101 in year three, a market source said.

Commitments are due at 5 p.m. ET on Jan. 25, the source added.

Bank of America Merrill Lynch is leading the deal that will be used to fund a special distribution to parent Cathexis Holdings GP and for other general corporate purposes.

Deason 74 holds non-operating royalty and mineral interests in the Eagle Ford Shale in South Texas.

Ping releases talk

Ping Identity came out with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $240 million seven-year first-lien term loan that launched with a morning bank meeting, according to a market source.

The company’s $265 million of credit facilities (B3/B-) also include a $25 million revolver.

Commitments are due on Jan. 23, the source said.

Goldman Sachs Bank USA, Antares Capital and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance existing debt.

Ping Identity is a Denver-based provider of enterprise grade identity & access management solutions across hybrid IT deployments.

Digicel details emerge

Digicel held its call in the morning, launching a $955 million senior secured covenant-light term loan B due May 2024 at talk of Libor plus 350 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Commitments for existing lenders are due at 5 p.m. ET on Jan. 18 and commitments for new lenders are due at noon ET on Jan. 19, the source added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor.

Digicel is a Hamilton, Bermuda-based provider of communication services in the Caribbean and South Pacific regions.

Safe Fleet on deck

Safe Fleet Holdings will hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch $650 million of credit facilities, according to a market source.

The facilities consist of a $50 million revolver, a $410 million first-lien term loan and a $190 million second-lien term loan, the source said.

Goldman Sachs Bank USA, UBS Investment Bank and Morgan Stanley Senior Funding Inc. are leading the deal, with Goldman left on the first-lien and UBS left on the second-lien.

The credit facilities will be used to help fund the buyout of the company by Oak Hill Capital Partners from the Sterling Group.

Closing is expected this quarter.

Safe Fleet is a Belton, Mo.-based provider of safety and productivity solutions for fleet vehicles.

Altran coming soon

Altran Technologies set a bank meeting in London for Tuesday and one at 9:30 a.m. ET in New York on Wednesday to launch a €2,125,000,000 equivalent U.S. and euro senior secured term loan B, a market source said.

Commitments are due at the close of business UK time on Jan. 29 and allocations are expected on Jan. 30, the source added.

Goldman Sachs Bank USA, Credit Agricole Corporate and Investment Bank and Morgan Stanley Senior Funding Inc. are leading the deal that will be used with a potential €250 million bridge facility to fund the €1.7 billion acquisition of Aricent from a group of investors led by KKR and to early redeem some existing medium and long term debt.

A shareholders’ meeting will be held on Jan. 26 to authorize a share capital increase with preferential subscription rights of a maximum amount of €750 million. The equity issuance would then be decided and its net proceeds would be used to repay the bridge facility and part of the term loan B, a company news release said.

Pro forma net leverage is expected at 3.2 times based on LTM Sept. 30 pro forma adjusted EBITDA.

Altran is a France-based engineering and industrial consulting company. Aricent is a Redwood City, Calif.-based pure-play product engineering services firm.

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