Tritech, Bracket, Cetera, AIS, Vantage break; SS&C, Alion, Jane Street changes surface

By Sara Rosenberg

New York, Aug. 15 – Tritech Software Systems Inc./Superion LLC/Aptean Software LLC set the spread on its first-lien term loan at the low end of guidance and tightened the original issue discount and then broke for trading on Wednesday.

Also, Bracket Intermediate Holding Corp. lifted pricing on its first-lien term loan, removed the step-down and extended the call protection before freeing up, and deals from Cetera Financial Group, AIS HoldCo LLC (Affinion Insurance Solutions) and Vantage Specialty Chemicals Holdings Inc. hit the secondary market too.

In more happenings, SS&C Technologies Inc. switched its incremental term loan to a new tranche from an add-on and modified the original issue discount, Alion Science & Technology Corp. revised the issue price on its add-on first-lien term loan, and Jane Street increased the size of its add-on term loan B and changed the issue price.

Tritech revised

Tritech/Superion/Aptean Software firmed pricing on its $895 million seven-year covenant-light first-lien term loan (B2/B) at Libor plus 375 basis points, the tight end of the Libor plus 375 bps to 400 bps talk, and moved the original issue discount to 99.75 from talk in the range of 99 to 99.5, according to a market source.

Also, the MFN threshold was reduced to 50 bps from 75 bps, the MFN sunset was extended to 18 months from six months, carve-outs are now limited to the fixed incremental and the inside maturity basket, which has been reduced to $85 million, and management has indicated they plan to host quarterly update calls, the source said.

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

Recommitments were due at 1 p.m. ET on Wednesday, the source continued.

The company’s $1.4 billion of credit facilities also include a $125 million five-year revolver (B2/B) and a $380 million privately placed eight-year second-lien term loan (Caa2/CCC).

Tritech frees up

After terms finalized, Tritech/Superion/Aptean’s first-lien term loan emerged in the secondary market and levels were quoted at par bid, par ½ offered, the source added.

Antares Capital, Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the merger of Tritech, which is currently owned by Bain Capital Private Equity, with Superion and Aptean, which are both owned by Vista Equity Partners.

The combined company, jointly owned by Bain Capital and Vista Equity, will be a software provider to municipalities and public safety agencies.

Closing is expected in the third quarter, subject to customary conditions.

Bracket modified, trades

Bracket Intermediate raised pricing on its $545 million seven-year first-lien term loan (B2/B-) to Libor plus 425 bps from Libor plus 375 bps, removed the one pricing step-down was removed and extended the 101 soft call protection to one year from six months, while leaving the 0% Libor floor and original issue discount of 99.5 intact, a market source remarked.

The first-lien term loan then broke for trading and was quoted at par bid, par ½ offered, a trader added.

The company’s $815 million of credit facilities also include a $40 million revolver (B2/B-) and a privately placed $230 million second-lien term loan.

Jefferies LLC, Antares Capital and Barclays are leading the deal that will help fund the acquisition of CRF Health Group Ltd., a provider of eCOA and eConsent solutions for the life sciences industry, from Vitruvian Partners.

Closing is expected in mid-September, subject to customary conditions and regulatory approvals.

Bracket, a Genstar Capital portfolio company, is a provider of software and technology-enabled solutions used in clinical trials.

Cetera hits secondary

Cetera Financial Group’s credit facilities began trading, with the $825 million seven-year covenant-light first-lien term loan quoted at par 1/8 bid, par ½ offered and the $190 million the eight-year covenant-light second-lien term loan quoted at 99½ bid, par ½ offered, according to a trader.

Pricing on the first-lien term loan is Libor plus 425 bps with a 0% 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 825 bps with a 0% 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 Tuesday, the first-lien term loan was upsized from $775 million, pricing firmed at the low end of the Libor plus 425 bps to 450 bps talk and the discount was changed from 99.5. Also, the second-lien term loan was downsized from $240 million and the spread was set at the low end of the Libor plus 825 bps to 850 bps talk.

The debt has 50 bps MFN for life with no inside maturity carve-out.

The company’s $1,115,000,000 of credit facilities include a $100 million five-year revolver as well.

Cetera lead banks

UBS Investment Bank, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc., Antares Capital and Jefferies LLC are leading Cetera’s credit facilities deal.

Proceeds will be used to help fund the buyout of the company by Genstar Capital.

Leverage through the second-lien debt will be about 5.5 times.

Closing is subject to regulatory approvals and other customary conditions.

Cetera is an El Segundo, Calif.-based network of financial advisers.

AIS starts trading

AIS HoldCo’s credit facilities broke too, with the $315 million seven-year first-lien term loan (B2/B) seen at par bid, par ½ offered and the $110 million eight-year second-lien term loan (Caa2/CCC+) seen at 99½ bid, par ½ offered, a trader remarked.

Pricing on the first-lien term loan is Libor plus 500 bps with a step-up to Libor plus 600 bps if ratings are downgraded by either agency to CCC and a 0% Libor floor. The loan was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 875 bps with a 0% Libor floor and was issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

The company’s $450 million of credit facilities also include a $25 million revolver (B2/B).

Jefferies LLC is leading the deal.

AIS being acquired

Proceeds from AIS’ credit facilities will be used to help fund its buyout by Mill Point Capital from Affinion Group LLC.

During syndication, pricing on the first-lien term loan finalized at the high end of the Libor plus 475 bps to 500 bps talk, the step-up was added, and amortization was revised to 2.5% in years one, two and three, 5% in years four and five, and 7.5% per annum thereafter.

Other changes made during syndication included modifying the excess cash flow sweep to 75% stepping down to 50% at 4 times total net leverage, setting the incremental at $25 million, with the EBITDA grower removed, plus unlimited at 4.25 times first-lien net leverage, setting unlimited investments at 4.75 times total net leverage, updating restricted payments to unlimited at total net leverage no greater than 4.5 times, and setting the available amount started basket at $15 million.

Closing was expected on Wednesday.

AIS is a Franklin, Tenn.-based business services platform with expertise in the distribution, marketing and administration of a broad range of simplified, guaranteed-issue insurance products.

Vantage breaks

Vantage Specialty Chemicals’ fungible $35 million add-on senior secured covenant-light term loan B (B3/B-) due Oct. 28, 2024 hit the secondary market in the afternoon, with levels quoted at par 5/8 bid, 101 1/8 offered, according to a trader.

The add-on term loan is priced at Libor plus 400 bps with a 1% Libor floor and was issued at par.

On Tuesday, the issue price on the add-on term loan firmed at the tight end of the 99.75 to par talk.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to repay revolver borrowings and fund a small acquisition.

Closing is expected in late August.

Vantage is a Chicago-based manufacturer and distributor of specialty chemicals.

SS&C reworks loan

Back in the primary market, SS&C Technologies changed its $950 million incremental first-lien term loan (Ba3/BB) due April 2025 to a new term loan B-5 from an add-on term loan B-3 to simplify trading of the new debt as the existing term loan B-3 trades as a strip with the existing term loan B-4, a market source remarked.

Also, the original issue discount on the incremental loan was adjusted to 99.75 from talk in the range of 99 to 99.5, the source continued.

As before, pricing on the incremental loan is Libor plus 250 bps with a 25 bps step-down at senior secured net leverage of less than 4.75 times and a 0% Libor floor, and the debt has 101 soft call protection until October.

Commitments remained due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used to help fund the acquisition of Eze Software, a Boston-based provider of investment technology, from TPG Capital for $1.45 billion.

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

SS&C is a Windsor, Conn.-based provider of investment and financial software-enabled services and software for the financial services and healthcare industries.

Alion tweaked

Alion Science & Technology tightened the issue price on its $124.2 million add-on first-lien term loan (B1/B) to par from 99.5, according to a market source.

Like the existing term loan, the add-on loan is priced at Libor plus 450 bps with a 1% Libor floor.

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

UBS Investment Bank, RBC Capital Markets, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the deal that will be used with a $43 million privately placed add-on to the company’s mezzanine notes and additional contributed equity to fund the acquisition of MacAulay-Brown Inc.

Alion, a portfolio company of Veritas Capital, is a McLean, Va.-based research and development, IT and operational services company. MacAulay-Brown is a Dayton, Ohio-based provider of complex engineering and mission critical technology solutions and services for national security missions across Department of Defense and Intelligence Community customers.

Jane Street updated

Jane Street raised its fungible add-on term loan B due August 2022 to $310 million from $210 million and modified the issue price to par from 99.875, a market source said.

The add-on term loan B is priced at Libor plus 375 bps with a 0% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes.

Jane Street is a trading firm with offices in New York, London and Hong Kong.

Cole-Parmer allocates

In other news, Cole-Parmer Instrument Co. (CPI Holdco LLC) allocated on Wednesday its $85 million incremental first-lien term loan (B2/B) due March 21, 2024, according to a market source.

The incremental loan is priced at Libor plus 350 bps with a 1% Libor floor, in line with the existing term loan, and was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to fund a distribution to shareholders.

Closing is expected on Friday.

Cole-Parmer is a Vernon Hills, Ill.-based provider of laboratory and industrial fluid handling products, instrumentation, equipment and supplies.

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