Harland Clarke frees to trade; large BWIC emerges; TriMark, EagleView accelerate deadlines

By Sara Rosenberg

New York, Sept. 12 – Harland Clarke Holdings Corp.’s incremental term loan B-6 made its way into the secondary market on Tuesday and was seen trading above its original issue discount, and a sizeable loan Bid Wanted In Competition surfaced.

Moving to the primary market, TriMark USA LLC and EagleView Technology Corp. moved up the commitment deadlines on their term loans.

Additionally, Air Medical Group Holdings Inc., Trilliant Food & Nutrition, Flexera Software LLC, International Equipment Solutions LLC and VerticalScope disclosed price talk with launch, and Transplace Holdings Inc., Covenant Surgical Partners Inc. and HUB International Ltd. joined this week’s new issue calendar.

Harland Clarke breaks

Harland Clarke’s $125 million incremental covenant-light first-lien term loan B-6 (B1/BB-) due February 2022 began trading on Tuesday, with levels quoted at par 1/8 bid, par 5/8 offered, a market source remarked.

Pricing on the incremental term loan is Libor plus 550 basis points with a 1% Libor floor, in line with existing term loan B-6 pricing, and the new debt was sold at an original issue discount of 99.875. The incremental loan has a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

On Monday, the incremental term loan was upsized from $100 million and the discount was tightened from 99.5.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund the acquisition of MaxPoint Interactive for $13.86 per share in cash. The transaction has an equity value of about $95 million.

Closing is expected in the fourth quarter.

Harland Clarke is a San Antonio-based provider of media delivery, payment solutions and marketing services. MaxPoint is a Morrisville, N.C.-based marketing technology company.

BWIC announced

Also in trading, a $663 million loan Bid Wanted In Competition emerged in the morning, and bids are due at 10 a.m. ET on Thursday, according to a trader.

Some of the names in the portfolio are American Airlines Inc., Caesar's Entertainment Resort Properties LLC, Dell International LLC, First Data Corp., HII Holding Corp., JBS USA LLC, MGM Resorts International, Neff Rental Corp., Quebecor Media Inc., Starwood Property Trust Inc., Tronox Pigments (Netherlands) B.V., Virgin Media SFA Finance Ltd. and Zayo Group LLC.

There are about 112 issuers in the BIWC, the trader added.

TriMark revises deadline

Switching to the primary market, TriMark accelerated the commitment deadline on its $585 million seven-year covenant-light first-lien term loan (B3/B), which includes a $25 million delayed-draw tranche, to 5 p.m. ET on Wednesday from noon ET on Thursday, a market source said.

Talk on the term loan is Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Barclays, Jefferies LLC, Nomura and Citizens Bank are leading the deal that will be used to fund the buyout of the company by Centerbridge Partners LP from Warburg Pincus.

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

TriMark is a South Attleboro, Mass.-based provider of equipment, supplies and design services to the foodservice industry.

EagleView accelerated

EagleView Technology moved up the commitment deadline on its fungible $100 million add-on covenant-light first-lien term loan B (B) due July 15, 2022 to 4 p.m. ET on Wednesday from Thursday, a market source remarked.

Talk on the add-on loan is Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99.5.

Morgan Stanley Senior Funding Inc. and Nomura Securities International Inc. are leading the deal that will be used to repay an existing second-lien term loan and accrued interest, and to pay fees and expenses related to the financing.

EagleView is a Bothell, Wash.-based technology provider of aerial imagery, data analytics and GIS solutions.

Air Medical guidance

Air Medical Group had its lenders’ presentation on Tuesday, launching its $1,455,000,000 seven-year incremental senior secured covenant-light term loan B (B1/B) at talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, a discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Sept. 26, the source said.

Morgan Stanley Senior Funding Inc., Jefferies LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Nomura Securities International are leading the deal that will be used to help fund the acquisition of American Medical Response from Envision Healthcare Corp. in a transaction valued at $2.4 billion. At closing, the combined company will adopt a new name.

The transaction will also be funded with an unsecured debt commitment from PSP Investments Credit USA LLC and Ares Capital Management LLC, and equity.

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

Air Medical Group, a KKR portfolio company, is a Dallas-based provider of air and ground ambulance programs. American Medical Response is a Greenwood Village, Colo.-based medical transportation company.

Trilliant reveals talk

Trilliant Food & Nutrition came out with talk of Libor plus 425 bps to 450 bps with a 1% Libor floor and an original issue discount of 99.5 on its $250 million seven-year covenant-light term loan B (B3/B-) that launched with a lender meeting on Tuesday, according to a market source.

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

Commitments are due on Sept. 26.

Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund a recapitalization with which Blackstone is making an equity investment.

The company also plans on getting an ABL revolver that will be used for working capital and other general corporate purposes.

Trilliant Food is a Little Chute, Wis.-based beverage company.

Flexera floats OID

Flexera Software held its lender call in the afternoon and, with the event, talk on its fungible $130 million add-on term loan was announced at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99.51, a market source remarked.

The spread and floor on the add-on term loan match existing term loan pricing and the debt is callable at any time at par.

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

Jefferies LLC is leading the deal that will be used to fund an acquisition.

Flexera is an Itasca, Ill.-based software company.

International Equipment launches

International Equipment Solutions launched with a call its $215 million term loan B (B3) due August 2022 at talk of Libor plus 550 bps when net first-lien leverage is 3.25 times and Libor plus 500 bps when net first-lien leverage is less than 3.25 times, a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year, a market source said.

Commitments are due on Sept. 21, the source added.

Bank of America Merrill Lynch and PNC Capital Markets LLC are leading the deal that will be used to refinance an existing term loan.

International Equipment is an Oak Brook, Ill.-based equipment company.

VerticalScope discloses terms

VerticalScope released talk of Libor plus 275 bps, based on net leverage ratio grid, with no Libor floor on its $170 million of five-year credit facilities that launched with a bank meeting during the session, according to a market source.

The facilities consist of a $10 million revolver and a $160 million term loan that includes a $50 million delayed-draw tranche.

Upfront fees are 50 bps for commitments of $30 million or more, 37.5 bps for commitments of $20 million to less than $30 million, and 25 bps for commitments of less than $20 million, and the unused fee is based on net leverage ratio grid with opening pricing of 37.5 bps, the source said.

Commitments are due on Sept. 26.

Capital One is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Closing net leverage is expected to about 2.7 times LTM EBITDA.

VerticalScope is a Toronto-based online media company that owns and operates consumer resource websites and enthusiast social communities.

iStar holds call

iStar Inc. hosted its lender call at 11 a.m. ET on Tuesday to launch its $400 million senior secured term loan due September 2021, according to a market source.

As previously reported, the term loan is talked at Libor plus 300 bps to 325 bps with a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

J.P. Morgan Securities LLC, Barclays and Bank of America Merrill Lynch are leading the deal that will be used with cash on hand to refinance a $473 million term loan due July 2020 that is priced at Libor plus 375 bps with a 1% Libor floor.

Commitments are due on Friday.

The company is also looking to amend its existing secured revolver to increase the commitments to $300 million from $250 million, extend the maturity to September 2020 from March 2018 and provide additional flexibility for eligible collateral.

iStar is a New York-based investor and developer of real estate and real estate related projects.

Transplace coming soon

Transplace emerged with plans to hold a bank meeting at 9:30 a.m. ET in New York on Thursday to launch $600 million of senior secured credit facilities, split between a $90 million five-year revolver, a $390 million seven-year first-lien term loan B and a $120 million eight-year second-lien term loan, a market source remarked.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., KeyBanc Capital Markets and RBC Capital Markets are leading the deal, with Goldman the left lead on the revolver and term loan B and JPMorgan the left lead on the second-lien loan.

The credit facilities will be used to help fund the buyout of the company by TPG Capital from Greenbriar Equity Group LLC, which is expected to close late this month.

Transplace is a Frisco, Texas-based provider of highly configurable transportation management solutions, with a complementary suite of specialized third-party logistics services.

Covenant Surgical on deck

Covenant Surgical Partners set a bank meeting for 10 a.m. ET in New York on Thursday to launch $220 million of credit facilities, a market source said.

The facilities consist of a $25 million revolver, a $150 million first-lien term loan and a $45 million delayed-draw first-lien term loan, the source added.

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by KKR from DFW Capital Partners, Iroquois Capital Group, PineBridge Investments and other existing shareholders.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Covenant Surgical is a Nashville, Tenn.-based acquirer and operator of ambulatory surgery centers and physician practices.

HUB readies loan

HUB International scheduled a lender call for 11:30 a.m. ET on Wednesday to launch a fungible $350 million add-on term loan B due Oct. 2, 2020, according to a market source.

Nomura and Macquarie Capital (USA) Inc. are leading the deal that will be used to repay revolver borrowings and to fund cash to the balance sheet.

HUB is a Chicago-based insurance brokerage.

Staples closes

In other news, Staples Inc. closed on its $2.9 billion seven-year first-lien term loan (B1/B+) and $1.2 billion ABL facility, the company disclosed in an 8-K filed with the Securities and Exchange Commission.

Pricing on the term loan is Libor plus 400 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.

During syndication, the term loan was upsized from a revised amount of $2.7 billion and an initial size of $2.4 billion, the spread firmed at the high end of revised talk of Libor plus 375 bps to 400 bps and down from initial talk of Libor plus 425 bps, and the discount was changed from 99.5.

UBS Investment Bank, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Jefferies LLC, Fifth Third Bank, Goldman Sachs Bank USA, Citigroup Global Markets Inc., KKR Capital Markets and Natixis led the term loan. Wells Fargo led the ABL.

Proceeds were used to help fund the buyout of the company by Sycamore Partners for $10.25 in cash per share of common stock. The transaction is valued at about $6.9 billion.

Staples is a Framingham, Mass.-based retailer of office supplies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.