Multiple deals pile onto new issue calendar for launch this week and next week

By Sara Rosenberg

New York, Sept. 5 – Primary activity was in full swing on Tuesday as deals from Avantor, Refresco, DigiCert Inc., Pike Corp., Traeger Grills (TGP Holdings III LLC), Applied Systems Inc., Golden Nugget Inc., PlayCore, ECi Software Solutions, Cast & Crew Entertainment Services LLC, DataBank, VerticalScope, TNS Inc., Sebia and Conduent all joined the near-term calendar.

Avantor coming soon

Avantor will hold a bank meeting at 11 a.m. ET in New York on Thursday, a bank meeting in London (City) on Monday and a bank meeting in London (West End) on Sept. 12 to launch new credit facilities (B2), according to a market source.

The facilities consist of a $250 million revolver, a $2,401,000,000 first-lien term loan and a €500 million first-lien term loan, the source said.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC and Jefferies LLC are leading the deal that will be used with $1,401,000,000 senior secured notes, €500 million senior secured notes, $2.25 billion senior unsecured notes, preferred equity and cash on hand to fund the acquisition of VWR International LLC for $33.25 in cash per share, reflecting an enterprise value of about $6.4 billion, and finance a distribution to equity holders.

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

Following the closing, New Mountain Capital will be the lead shareholder of the combined company.

Avantor is a Center Valley, Pa.-based supplier of ultra-high-purity materials for the life sciences and advanced technology industries. VWR is a Radnor, Pa.-based provider of product, supply chain, and service solutions to laboratory and production customers.

Refresco sets timing

Refresco scheduled a bank meeting in London for Monday and one in New York for Sept. 12 to launch its previously announced credit facilities (Ba3/BB-), a market source said.

The facilities consist of a €200 million six-year multi-currency revolver, a $620 million seven-year senior secured term loan B and a €1.3 billion seven-year senior secured term loan B.

The term loans are talked at Libor/Euribor plus 300 bps with a 0% floor, an original issue discount of 99.75 and 101 soft call protection for six months, the source added.

Commitments are due on Sept. 26.

J.P. Morgan is the global coordinator on the credit facilities, and a mandated lead arranger with ABN Amro Bank, BNP Paribas Fortis SA/NV, Rabobank, Commerzbank, HSBC, MUFG, Mizuho and Societe Generale.

Proceeds will be used by the Rotterdam, the Netherlands-based bottler of beverages to fund the acquisition of the bottling activities of Cott for $1.25 billion and to refinance existing debt at both companies.

Leverage is expected at around 4.5 times adjusted EBITDA.

Closing is expected in the fourth quarter, subject to regulatory approvals.

DigiCert launching shortly

DigiCert will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch $1.59 billion of senior secured credit facilities, according to a market source.

The facilities consist of a $90 million revolver, a $300 million term loan B-1 due Dec. 31, 2020, a $900 million seven-year term loan B-2 and a $300 million eight-year second-lien term loan, the source said.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Jefferies LLC, Macquarie Capital (USA) Inc. and Goldman Sachs Bank USA are leading the deal that will be used to fund the acquisition of Symantec Corp.’s Website Security and related PKI solutions for about $950 million in upfront cash and around a 30% stake in the common stock equity of the DigiCert business at the closing of the transaction.

Closing is expected in the third quarter of fiscal 2018, subject to customary conditions.

DigiCert is a Lehi, Utah-based provider of scalable security solutions.

Pike plans loan

Pike scheduled a lenders’ call for 9:30 a.m. ET on Wednesday to launch a $630 million senior secured term loan B, a market source said.

Morgan Stanley Senior Funding Inc., KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey Inc. and Fifth Third Bank are leading the deal that will be used to refinance existing debt and pay related fees and expenses.

Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.

Traeger readies deal

Traeger Grills emerged with plans to hold a bank meeting at 10 a.m. ET on Wednesday to launch $440 million of credit facilities, a market source remarked.

The facilities consist of a $30 million revolver, a $295 million seven-year first-lien term loan that includes a $40 million delayed-draw tranche, and a $115 million eight-year second-lien term loan.

Talk on the first-lien term loan is Libor plus 450 basis points with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 850 bps with a 1% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two, the source continued.

Commitments are due at 5 p.m. ET on Sept. 20, the source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Jefferies LLC and RBC Capital Markets are leading the deal that will be used to help fund the buyout of a majority ownership stake in the company by AEA Investors, in partnership with Ontario Teachers’ Pension Plan, from Trilantic North America.

Traeger is a Salt Lake City-based designer of outdoor cooking products.

Applied Systems sets call

Applied Systems scheduled a lender call for 2 p.m. ET on Wednesday to launch $1,575,000,000 of credit facilities, a market source said.

The facilities consist of a $50 million five-year revolver, a $1.03 billion seven-year first-lien term loan B and a $495 million eight-year second-lien term loan, the source added.

Nomura, Jefferies LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance existing debt, fund a distribution to shareholders and pay fees and expenses.

Applied Systems, a Hellman & Friedman portfolio company, is a University Park, Ill.-based cloud software provider to the property & casualty and benefits insurance industry.

Golden Nugget on deck

Golden Nugget set a bank meeting for 10:30 a.m. ET on Wednesday to launch a $1.08 billion incremental first-lien term loan due October 2023, according to a market source.

Jefferies LLC is leading the deal that will be used to help refinance existing debt and fund a shareholder distribution.

The company also plans on issuing $745 million in add-on senior unsecured notes and $670 million in subordinated notes for the refinancing and distribution.

Golden Nugget, formerly known as Landry’s Inc., is a diversified restaurant, hospitality and entertainment company.

PlayCore deal surfaces

PlayCore plans to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch $635 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $70 million asset-based revolver, a $370 million first-lien term loan (B2), a $50 million delayed-draw term loan (B2) and a $145 million second-lien term loan (Caa2), the source added.

Goldman Sachs Bank USA, KeyBanc Capital Markets and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to help fund the buyout of the company by Court Square.

PlayCore is a Chattanooga, Tenn.-based designer, manufacturer and marketer of commercial playground, park, recreation and specialty equipment and related complementary products.

ECi schedules meeting

ECi Software Solutions set a bank meeting for 11 a.m. ET in New York on Wednesday to launch $570 million of credit facilities, according to a market source.

The facilities consist of a $50 million revolver, a $380 million first-lien term loan B and a $140 million second-lien term loan, the source said.

Bank of America Merrill Lynch and RBC Capital Markets are leading the deal, with Bank of America the left lead on the first-lien and RBC the left lead on the second-lien.

Proceeds will be used to help fund the buyout of the company by Apax Partners from The Carlyle Group and Level Equity, and fund its merger with the Macola, JobBOSS and MAX businesses of Exact Software, a current Apax Funds portfolio company. Carlyle will retain a minority ownership position in the company.

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

ECi is a Fort Worth, Texas-based provider of enterprise resource planning software solutions to small- and medium-sized businesses in the distribution, field services, building and construction and manufacturing industries.

Cast & Crew on deck

Cast & Crew will hold a bank meeting at 10 a.m. ET in New York on Friday to launch a $495 million seven-year first-lien term loan, a market source remarked.

RBC Capital Markets LLC is the left lead on the deal that will be used to refinance the company’s existing first-lien term loan, second-lien term loan and second-lien notes.

Cast & Crew, a Silver Lake portfolio company, is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry.

DataBank refinancing

DataBank scheduled a bank meeting for 10 a.m. ET on Thursday to launch $280 million of first-lien credit facilities, according to a market source.

The facilities consist of a $50 million revolver, and a $230 million seven-year first-lien term loan talked at Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, the source said.

The company is also getting a $100 million 7.5-year pre-placed second-lien term loan.

SunTrust Robinson Humphrey Inc., RBC Capital Markets and TD Securities (USA) LLC are leading the deal that will be used with equity to refinance existing debt and fund growth initiatives.

DataBank is a Dallas-based provider of enterprise-class data center, cloud, and interconnection services.

VerticalScope coming next week

VerticalScope intends to hold a lenders meeting on Sept. 12 to launch $170 million of five-year credit facilities, a market source remarked.

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

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

At 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.

TNS to seek add-on

TNS set a lender call for 9 a.m. ET on Thursday to launch a $150 million add-on first-lien term loan B, according to a market source.

Talk on the add-on term loan is Libor plus 400 bps with no Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, the source said.

SunTrust Robinson Humphrey Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to repay a second-lien term loan.

TNS is a Reston, Va.-based provider of data communications and interoperability services.

Sebia joins calendar

Sebia scheduled a bank meeting for Monday to launch new credit facilities, split between a $225 million seven-year term loan B, a €620 million seven-year term loan B and a €20 million revolver, a market source said.

Commitments are due on Sept. 22, the source added.

The company is also getting a €185 million eight-year holdco PIK facility.

Nomura is leading the deal that will be used to help fund the acquisition of a significant minority stake in the company by Caisse de dépôt et placement du Québec and to refinance existing debt.

Closing is subject to customary clearance of regulatory authorities.

Sebia is a France-based multi-specialty in-vitro diagnostics company focusing on oncology, genetic haemoglobin and metabolic disorders.

Conduent plans call

Conduent will hold a call at 11 a.m. ET on Wednesday to launch a new loan transaction to existing and prospective lenders, according to a market source.

Citigroup Global Markets Inc. is leading the deal.

Conduent is a Florham Park, N.J.-based provider of business process services with expertise in transaction-intensive processing, analytics and automation.

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