Unitymedia, Vantage Specialty, MRO, Caesars, ConvergeOne break; Orion Engineered updated

By Sara Rosenberg

New York, Oct. 20 – Unitymedia’s term loan D made its way into the secondary market on Friday, with levels quoted above its original issue discount, and Vantage Specialty Chemicals Inc.’s first-and second-lien term loans began trading too.

Also, MRO Holdings Inc. lifted pricing on its first-lien term loan and extended the call protection, Caesars Entertainment Opco (CEOC LLC) tightened the issue price on its incremental first-lien term loan, and ConvergeOne Holdings Corp. increased the size of its incremental first-lien term loan and modified the original issue discount, and then these deals broke for trading as well.

In addition, Orion Engineered Carbons adjusted the issue price on its U.S. term loan, and tightened the spread and revised discount talk on its euro term loan.

And, Harland Clarke Holdings Corp., Navistar International Corp., Davis Vision-Superior Vision, FLY Leasing, Accuride Corp. and MHS (Material Handling Systems) joined the near-term primary calendar, and timing on Truck Hero Inc.’s lender call surfaced.

Unitymedia hits secondary

Unitymedia’s $850 million covenant-light term loan D due January 2026 began trading on Friday, with levels quoted at 99 5/8 bid, 99 7/8 offered, according to a trader.

Pricing on the term loan D is Libor plus 225 basis points with a 0% Libor floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months and a ticking fee of half the margin from days 46 to 75 and the full margin thereafter.

The company is also getting an €825 million covenant-light term loan C due January 2027 priced at Euribor plus 275 bps with a 0% floor and issued at par. This tranche has 101 soft call protection for six months and a ticking fee of half the margin from days 61 to 90 and the full margin thereafter.

On Thursday, the term loan D was upsized from $750 million, and the term loan C was increased from €500 million while the issue price firmed at the tight end of the 99.75 to par talk.

Unitymedia redeeming bonds

Proceeds from Unitymedia’s term loans will be used to redeem 2023 notes that have an earliest first call date of Jan. 15, 2018. The recent upsizing of the loans resulted in plans to fully refinance instead of partly redeem the notes.

Deutsche Bank Securities Inc. is the left lead bookrunner on the U.S. term loan D, and Bank of America Merrill Lynch is the left lead on the euro term loan C. Right bookrunners on the U.S. loan are Bank of America, BNP Paribas Securities Corp., Barclays, MB, ING and RBC. Right bookrunners on the euro loan are Deutsche Bank, Barclays, Goldman Sachs, Morgan Stanley, Credit Agricole, ING, RBS and RBC. Scotiabank is the agent.

Unitymedia Finance LLC is the borrower on the U.S. piece, and Unitymedia Hessen GmbH & Co. KG is the borrower on the euro piece.

Unitymedia is a Germany-based provider of cable television, internet, fixed-line telephony and mobile services.

Vantage tops OIDs

Vantage Specialty Chemicals’ credit facilities also broke, with the $485 million seven-year covenant-light first-lien term loan quoted at par bid, par ½ offered and the $150 million eight-year covenant-light second-lien term loan quoted at 99 bid, par offered, a trader said.

Pricing on the first-lien term loan is Libor plus 400 bps with a 1% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 825 bps with a 1% Libor floor and was issued at a discount of 98.5. This tranche has hard call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $465 million, pricing firmed at the low end of the Libor plus 400 bps to 425 bps talk and the discount was tightened from 99, the second-lien term loan was downsized from $170 million and the spread finalized at the high end of the Libor plus 800 bps to 825 bps talk, and the MFN sunset was removed.

Vantage getting revolver

Along with the first-and second-lien term loans, Vantage Specialty’s $710 million of senior secured credit facilities include a $75 million five-year revolver.

Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC and Jefferies LLC are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital LLC from the Jordan Co. LP.

Closing is expected on Thursday.

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

MRO flexes, frees up

MRO Holdings widened pricing on its $225 million six-year first-lien term loan (B2/B+) to Libor plus 525 bps from Libor plus 500 bps and pushed out the 101 soft call protection to one year from six months, a market source remarked.

The term loan still has a 1% Libor floor and an original issue discount of 99.

Commitments were due at noon ET and the debt began trading in the afternoon, with levels seen at 99¼ bid, par offered, another source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and for general corporate purposes.

MRO Holdings is a provider of maintenance and repair services to the airline and freight carrier industries.

Caesars revised, trades

Caesars Entertainment modified the issue price on its fungible $265 million incremental covenant-light first-lien term loan (Ba3/BB) due Oct. 6, 2024 to par from talk in the range of 99.5 to 99.75, according to a market source.

As before, pricing on the incremental loan is Libor plus 250 bps with a 0% Libor floor, and the debt has 101 soft call until April 6, 2018 and a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

The spread, floor and call protection on the incremental loan match the existing first-lien loan terms.

Recommitments were due at noon ET and later in the day the loan emerged in the secondary market, with levels seen at par 1/8 bid, par 3/8 offered, another source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are leading the deal that will refinance debt at Harrah’s Philadelphia, which will become part of the CEOC credit group.

Caesars is a Las Vegas-based full service gaming and entertainment company.

ConvergeOne reworked, breaks

ConvergeOne raised its fungible incremental first-lien term loan due June 2024 to $60 million from $40 million and tightened the original issue discount to 99.75 from 99.5, a market source said.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 475 bps with a 1% Libor floor and has 101 soft call protection until June 2018.

Commitments were due at 11 a.m. ET on Friday and the loan freed to trade before noon ET, with levels quoted at par bid, par ½ offered, another source added.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are leading the deal that will be used to repay ABL borrowings and for general corporate purposes.

ConvergeOne is an Eagan, Minn.-based provider of communications solutions.

Orion tweaks deal

In more happenings, Orion Engineered Carbons changed the issue price on its $289 million first-lien senior secured term loan B due July 25, 2024 to par from 99.75, and left pricing at Libor plus 250 bps with a 0% Libor floor, according to a market source.

Additionally, the company cut pricing on its €331 million first-lien senior secured term loan B due July 25, 2024 to Euribor plus 250 bps from Euribor plus 275 bps and adjusted original issue discount talk to a range of 99.75 to 99.875 from just 99.75, the source said.

Both loans still have a 0% floor and 101 soft call protection for six months.

Recommitments for the U.S. loan were due at close of business on Friday and recommitments for the euro loan are due at 2 p.m. UK time on Monday, the source added.

Goldman Sachs Bank USA is the bookrunner on the deal, and mandated lead arrangers are Citizens Bank, Goldman Sachs, ING Bank and Mediobanca International (Luxembourg) SA.

Proceeds will be used to refinance an existing U.S. term loan due July 2021 priced at Libor plus 250 bps with a 0% Libor floor and an existing euro term loan due July 2021 priced at Euribor plus 275 bps with a 0% floor.

Orion Engineered Carbons is a Frankfurt-based producer of carbon black.

Harland Clarke on deck

Harland Clarke is set to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $1.68 billion six-year covenant-light first-lien term loan (B1/BB-) talked at Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Oct. 30, the source said.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., Deutsche Bank Securities Inc., Jefferies LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance a portion of the company’s term loan B-5 and term loan B-6.

Harland Clarke is a San Antonio-based provider of media delivery, payment solutions and marketing services.

Navistar readies deal

Navistar International will hold a lender call on Tuesday to launch a $1.6 billion senior secured term loan (B+) due November 2024 talked at Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to sources.

JPMorgan Chase Bank, Goldman Sachs Bank USA and Citigroup Global Markets Inc. are leading the deal that will be used to refinance a roughly $1 billion senior secured term loan due August 2020 priced at Libor plus 400 bps with a 1% Libor floor, and to provide additional liquidity and financial flexibility.

Navistar is a Lisle, Ill.-based manufacturer and seller of commercial and military trucks, buses and diesel engines and a provider of service parts for trucks and trailers.

Davis Vision coming soon

Davis Vision-Superior Vision scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch $985 million of senior secured credit facilities, a market source remarked.

The facilities consist of a $75 million revolver, a $660 million first-lien term loan and a $250 million second-lien term loan, the source added.

Goldman Sachs Bank USA, Barclays, Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and BMO Capital Markets are leading the deal that will be used to help fund the buyout of Davis Vision Inc. by Centerbridge Partners LP from Highmark Inc. and combination with Centerbridge’s existing portfolio company Superior Vision.

With the transaction, Highmark will acquire a minority ownership interest in the combined Davis Vision-Superior Vision company.

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

Davis Vision-Superior Vision is a managed vision care company.

FLY Leasing repricing

FLY Leasing set a lender call for Monday to launch a repricing of its $437 million term loan B from Libor plus 225 bps with no Libor floor, according to a market source.

RBC Capital Markets is leading the deal.

FLY is a Dublin-based aircraft lessor.

Accuride joins calendar

Accuride will hold a bank meeting on Wednesday to launch a fungible $90 million incremental term loan B, a market source said.

RBC Capital Markets is leading the deal that will be used to fund an acquisition.

Accuride is an Evansville, Ind.-based supplier of components to the commercial vehicle industries.

MHS sets call

MHS emerged with plans to hold a lender call on Monday to launch a new loan transaction, according to a market source.

RBC Capital Markets is leading the deal.

MHS is a Louisville, Ky.-based provider of e-commerce infrastructure.

Truck Hero timing

Truck Hero scheduled a lender call for 1 p.m. ET on Tuesday to launch its fungible $190 million add-on first-lien term loan, a market source remarked. Previously it was known that the loan would launch with a call during the Oct. 23 week, but a specific date was unavailable.

Jefferies is leading the deal that will be used with a $45 million pre-placed add-on second-lien term loan to fund the acquisition of Omix-ADA Inc.

The company’s existing first-lien term loan is priced at Libor plus 400 bps with a 1% Libor floor.

Closing on the acquisition is expected by the end of this month.

Truck Hero is an Ann Arbor, Mich.-based provider of truck bed covers and other truck and Jeep accessories. Omix-ADA is a Suwanee, Ga.-based developer and supplier of Jeep and off-road parts, accessories and floor liners.

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