Nautilus, Argon, Capital Auto, Greatbatch, Tecomet break; lots of new deal updates emerge

By Sara Rosenberg

New York, Nov. 2 – Nautilus Power LLC firmed the spread on its term loan B at the high end of guidance before freeing up for trading on Thursday, and deals from Argon Medical Devices Holdings Inc., Capital Automotive LP, Greatbatch Ltd. (Integer Holdings Corp.) and Tecomet hit the secondary market as well.

In more happenings, Office Depot Inc. raised pricing on its term loan B, modified the issue price, sweetened the call protection and made a number of documentation changes, and Edelman Financial Center LLC lifted its term loan B amount, cut pricing and revised the original issue discount.

Also, TerraForm Power Operating LLC increased the size of its term loan B, lowered the spread and tightened the original issue discount, Lyons Magnus Inc. upsized its term loan B and revolver, and adjusted pricing on the term B tranche.

Furthermore, VC GB Holdings Inc. raised the size of its first-lien term loan, and Ineos Styrolution Group GmbH shifted some funds between its U.S. and euro term loans and updated pricing.

And, Intelsat Jackson Holdings SA, Research Now/Survey Sampling, Rackspace Hosting Inc., Cvent Inc., Seahawk Holdings (Dell Software), AGRO Merchants Global LP, Michael Baker International LLC and Tortoise Investments LLC released price talk with launch, and BroadStreet Partners Inc. surfaced with new deal plans.

Nautilus sets spread, trades

Nautilus Power firmed pricing on its $573,562,500 senior secured first-lien term loan B (B1/B+) due May 16, 2024 at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, according to a market source.

The term loan still has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Consents were due at noon ET on Thursday and then the loan began trading later in the day with levels quoted at par ¼ bid, par ¾ offered, a trader added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan from Libor plus 450 bps with a 1% Libor floor.

Closing is expected on Nov. 13.

Nautilus is a Massachusetts-based wholesale power generation and marketing company.

Argon hits secondary

Argon Medical’s credit facilities broke for trading, with the $310 million seven-year first-lien term loan (B2/B+) quoted at par ½ bid, 101 offered and the $110 million eight-year second-lien term loan (Caa2/B-) quoted at par bid, 101 offered, a market source said.

Pricing on the first-lien term loan is Libor plus 375 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 800 bps with a 1% Libor floor and was issued at a discount of 99.5. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan flexed down from Libor plus 425 bps, and pricing on the second-lien loan was cut from Libor plus 825 bps while the discount tightened from 99.

The company’s $435 million of credit facilities also provide for a $15 million revolver (B2/B+).

UBS Investment Bank is leading the deal that will be used to help fund the acquisition of the company by Shandong Weigao.

Argon Medical is a Plano, Texas-based medtech business primarily focused on physician-preferred products, which include biopsy & vascular devices, drainage catheters, guidewires and related accessories.

Capital Automotive breaks

Capital Automotive’s $1.09 billion term loan B (B1/B) due March 24, 2024 emerged in the secondary market as well, with levels quoted at par 3/8 bid, par 5/8 offered, according to a market source.

Pricing on the loan is Libor plus 250 bps with a 1% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

Barclays is leading the deal that will be used to reprice an existing term loan down from Libor plus 300 bps with a 1% Libor floor.

Closing is expected on Tuesday.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

Greatbatch frees up

Greatbatch’s $873 million term loan B (B2/B) due Oct. 27, 2022 broke, with levels seen at par bid, par ¾ offered, a market source said.

Pricing on the term loan B is Libor plus 325 bps with a step-down to Libor plus 300 bps upon achieving B2/B corporate family ratings and a 1% Libor floor, and it was issued at par. The loan has 101 soft call protection for six months.

Current corporate family ratings are B3/B.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan B down from Libor plus 350 bps with a 1% Libor floor.

Greatbatch is a Plano, Texas-based medical device company.

Tecomet starts trading

Tecomet’s $538.7 million first-lien term loan freed to trade too, with levels seen at par bid, par ½ offered, a market source remarked.

Pricing on the loan is Libor plus 350 bps with a step-down to Libor plus 325 bps at 4 times net first-lien leverage, a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a step-down to Libor plus 350 bps at 4 times net first-lien leverage and a 1% Libor floor.

Tecomet is a Wilmington, Mass.-based provider of high precision manufacturing solutions serving global medical device and aerospace and defense original equipment manufacturers.

Office Depot revised

Back in the primary market, Office Depot lifted pricing on its $750 million senior secured term loan B (B1) to Libor plus 700 bps from talk in the range of Libor plus 500 bps to 525 bps, adjusted the original issue discount to 97 from 98.5, changed the call protection to a hard call of 102 in year one and 101 in year two from a 101 soft call for six months, increased amortization to 10% per annum from 5% and cut the maturity to five years from six years, a market source said.

Additionally, the company eliminated the MFN sunset, the incremental starter basket and all grower baskets, changed the excess cash flow sweep to 75% at greater than 0.8 times secured net leverage with step-downs based on leverage, reduced the general restricted payments basket to $10 million from $150 million and the general investment basket to $50 million from $150 million, added a springing minimum liquidity covenant of $400 million, springing at 1.5 times gross secured leverage, and expanded the collateral to include the Office Depot headquarters.

The term loan still has a 1% Libor floor.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Wells Fargo Securities LLC are leading the deal that will be used to fund the acquisition of CompuCom.

Office Depot is a Boca Raton, Fla.-based provider of office supplies and business products and services.

Edelman sets changes

Edelman Financial Center upsized its seven-year covenant-light term loan B to $480 million from $460 million, lowered pricing to Libor plus 425 bps from talk in the range of Libor plus 450 bps to 475 bps and tightened the original issue discount to 99.75 from 99.5, while leaving the 1% Libor floor and 101 soft call protection for six months unchanged, a market source remarked.

The company’s now $510 million of senior secured credit facilities also include a $30 million five-year revolver.

Commitments are still due at 10 a.m. ET on Friday and allocations are expected thereafter, the source added.

Morgan Stanley Senior Funding Inc., UBS Investment Bank, BMO Capital Markets Corp. and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt, to fund a distribution to equity holders, which was increased with the term loan upsizing, and to pay related fees and expenses.

Edelman Financial is an independent financial planning firm.

TerraForm reworks loan

TerraForm Power lifted its five-year covenant-light term loan B to $350 million from $300 million, lowered pricing to Libor plus 275 bps from Libor plus 325 bps and changed the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Thursday, the source said.

RBC Capital Markets, the Bank of Nova Scotia, BMO Capital Markets, HSBC Securities (USA) Inc., Natixis and SMBC are leading the deal that will be used to repay a non-recourse portfolio term loan entered into in December 2015.

TerraForm Power is a Bethesda, Md.-based owner and operator of a renewable power portfolio of solar and wind assets. The company is sponsored by Brookfield Asset Management.

Lyons Magnus modified

Lyons Magnus raised its seven-year covenant-light first-lien term loan B to $195 million from $190 million, trimmed pricing to Libor plus 425 bps from Libor plus 450 bps, added a 25 bps step-down after six months from the close of the transaction if corporate family ratings are B2/B or higher or net leverage is half a turn inside closing net leverage, set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, and removed the MFN sunset, a market source said.

The term loan B still has a 1% Libor floor and 101 soft call protection for six months.

Also, the company upsized its undrawn revolver to $35 million from $30 million.

Commitments and order changes were due at 5 p.m. ET on Thursday, the source added.

RBC Capital Markets and Bank of Ireland are leading the now $230 million of credit facilities that will be used to help fund the buyout of the company by Paine Schwartz Partners.

Lyons Magnus is a Fresno, Calif.-based food and beverage manufacturing company.

VC GB upsizes

VC GB Holdings lifted its covenant-light first-lien term loan due February 2024 to $508 million from $498 million and left pricing at Libor plus 325 bps with a 1% Libor floor and a par issue price, a market source remarked.

The term loan still includes 101 soft call protection for six months.

Allocations are expected on Friday.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor, and the $10 million raised through the upsizing will be used to pay down some second-lien term loan borrowings, the source added.

VC GB is a decorative lighting company.

Ineos Styrolution retranches

Ineos Styrolution trimmed its U.S. term loan B due 2024 to $329 million from $417 million, set pricing at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, and firmed the issue price firmed at par, the tight end of the 99.75 to par talk, according to a market source. This tranche still has a 0% Libor floor.

The company also upsized its euro term loan B due 2024 to €447 million from €372 million, firmed the floor at 0.5%, the low end of the 0.5% to 0.75% floor, and finalized the issue price at par, the tight end of the 99.75 to par talk, the source said. Pricing on this tranche remained at Euribor plus 200 bps.

Commitments were due at 1 p.m. ET on Thursday.

Bank of America Merrill Lynch is the left lead on the U.S. loan and Credit Suisse is the left lead on the euro loan.

Proceeds will be used to refinance existing term loans.

Ineos Styrolution is a Frankfurt, Germany-based styrenics supplier with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties.

Intelsat Jackson launches

Also in the primary market, Intelsat Jackson held its lender call on Thursday, launching its $1.6 billion six-year senior secured term loan B at talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments/consents are due at 5 p.m. ET on Nov. 9, the source added.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., J.P. Morgan Chase Bank, Bank of America Merrill Lynch and Goldman Sachs Bank USA are leading the deal that will be used to amend and extend a portion of the existing term loan B due 2019.

Intelsat is a Luxembourg-based communications satellite company.

Research Now guidance

Research Now/Survey Sampling disclosed talk on its $700 million seven-year first-lien term loan and $250 million eight-year second-lien term loan, according to a market source.

The first-lien term loan is talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 850 bps to 875 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 said.

Commitments are due on Nov. 16.

Goldman Sachs Bank USA, Bank of America Merrill Lynch, Jefferies LLC and Citizens Bank are the leads on the $950 million in senior secured term loans that will be used to help fund the merger of Research Now and Survey Sampling International. Court Square Capital Partners and HGGC will be majority owners of the combined business.

Closing is expected by the end of the year, after the standard regulatory review process.

Research Now and Survey Sampling are providers of digital data solutions and technology for consumer and business-to-business survey research.

Rackspace details surface

Rackspace Hosting had its bank meeting and launched $800 million senior secured add-on covenant-light term loan B (Ba3/BB-/BB+) due Nov. 3, 2023 at talk of Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99.25 to 99.5, a market source remarked.

The spread and floor on the add-on term loan matches pricing on the existing term loan B.

Commitments are due at noon ET on Nov. 10 and closing is targeted for Nov. 15, the source added.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, BMO Capital Markets and Apollo are leading the deal that will be used fund the acquisition of Datapipe.

As part of the transaction, the majority owner of Datapipe, Abry Partners, will receive equity in Rackspace.

Rackspace, owned by Apollo Global Management LLC and co-investors, is a San Antonio, Texas-based multi-cloud managed services company. Datapipe is a Jersey City, N.J.-based provider of managed services across public and private clouds, managed hosting and colocation.

Cvent holds call

Cvent hosted a lender call at 1 p.m. ET to launch a $700 million seven-year first-lien term loan (B-) at talk of Libor plus 350 bps to 375 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due on Nov. 14, the source added.

Goldman Sachs Bank USA, Antares Capital, Jefferies LLC and RBC Capital Markets LLC are leading the deal that will be used to pay down existing first-and second-lien term loans.

Cvent is a Tysons Corner, Va.-based software-as-a-service solutions provider to the enterprise meetings and event management industry.

Seahawk discloses talk

Seahawk Holdings came out with talk of Libor plus 525 bps to 550 bps with a 1% Libor floor on its $375 million incremental first-lien term loan (B) due October 2022 and repricing of its existing $1.32 billion first-lien term loan (B) due October 2022 that launched with a morning call, according to a market source.

The incremental term loan is offered at an original issue discount of 99.5 and the repricing is offered at par, the source said.

All of the term loan debt will include 101 soft call protection for six months.

Commitments are due on Nov. 9.

Credit Suisse Securities (USA) LLC is the left lead on the deal.

The incremental loan will be used to refinance preferred equity and the repricing will take the existing term loan down from Libor plus 600 bps with a 1% Libor floor.

Seahawk is a provider of integrated software, identity and management solutions and network security solutions.

AGRO comes to market

AGRO Merchants launched with a lenders’ presentation its $350 million seven-year covenant-light first-lien term loan B (B3/B-) at talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Nov. 16, the source said.

The company is also getting $90 million second-lien term loan (Caa2/CCC) that was privately placed.

Morgan Stanley Senior Funding Inc., Barclays and Deutsche Bank Securities Inc. are leading the senior secured deal that will be used to refinance the existing capital structure, fund an acquisition, and pay related fees and expenses.

AGRO Merchants is an Alpharetta, Ga.-based owner and operator of temperature-controlled warehouse and distribution space.

Michael Baker terms emerge

Michael Baker held its bank meeting in the morning and announced talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $250 million five-year senior secured first-lien term loan (B+), a market source remarked.

The company’s $360 million of credit facilities also include a $110 million 4.5-year ABL revolver.

Commitments are due at noon ET on Nov. 14, the source added.

Jefferies LLC, SunTrust Robinson Humphrey Inc. and Citizens Bank are leading the deal that will be used with a proposed notes offering to refinance existing debt and to fund a distribution to SC3 shareholders in connection with the previously announced sale of SC3.

Michael Baker is a Pittsburgh-based provider of engineering, development, intelligence and technology solutions.

Tortoise Investments guidance

Tortoise Investments launched at its bank meeting a $262.5 million seven-year first-lien term loan at talk of Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Nov. 16, the source said.

UBS Investment Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the acquisition of the company by Lovell Minnick Partners.

Closing is expected by the end of the first quarter of 2018, subject to standard regulatory, client and fund shareholder approvals.

Tortoise is a Leawood, Kan.-based provider of investment solutions and market insights.

BroadStreet on deck

BroadStreet Partners scheduled a lender call for 2:30 p.m. ET on Tuesday to launch a fungible $175 million add-on term loan B and a repricing of its existing $407 million term loan B, a market source remarked.

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

Current pricing on the term loan B is Libor plus 425 bps with a 1% Libor floor.

BroadStreet is a Columbus, Ohio-based insurance broker.

ION sets deadline

In other news, ION Trading Technologies is asking for commitments by Nov. 14 on its €1,255,000,000 equivalent seven-year U.S. and euro term loan, a market source said.

As previously reported, the loan is talked at Libor/Euribor plus 300 bps to 325 bps with a 1% floor and an original issue discount of 99.5.

Included in the loan is 101 soft call protection for six months.

UBS Investment Bank is leading the deal that that will be used to refinance existing debt and fund a dividend.

ION Trading is a software provider of trading, treasury and workflow solutions.

Wall Street timing

Wall Street Systems USA is seeking commitments by Nov. 14 for its $755 million equivalent seven-year U.S. and euro term loan, according to a market source.

Talk on the term loan is Libor/Euribor plus 325 bps to 350 bps with a 1% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

UBS Investment Bank is leading the deal that will be used to refinance existing debt and fund a dividend.

Wall Street Systems is a provider of treasury management, central banking and FX trade processing solutions with U.S. headquarters in New York.

ICP allocates

ICP Group allocated on Thursday its credit facilities, which syndicated at launched terms, according to a market source.

The facilities consist of a $40 million revolver priced at Libor plus 400 bps with a 1% Libor floor, a $205 million first-lien term loan priced at Libor plus 400 bps with a 1% Libor floor and issued at a discount of 99.5, and a $45 million delayed-draw first-lien term loan priced at Libor plus 400 bps with a 1% Libor floor and issued at a discount of 99.5.

The first-lien term loan has 101 soft call protection for six months, and the delayed-draw loan has a 1% undrawn fee and availability for two years.

Antares Capital and BMO Capital Markets are leading the deal that will be used to refinance debt.

Other funds for the transaction will come from $105 million of second-lien financing that was raised separately.

Closing is expected on Friday, the source added.

ICP, an Audax Private Equity portfolio company, is an Andover, Mass.-based producer of specialty coatings, adhesives and sealants.

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