AmeriLife, ABC Financial, McAfee, Tortoise break; Perforce Software, Cepsa revise deadlines

By Sara Rosenberg

New York, June 7 – AmeriLife Group LLC finalized the spreads on its first- and second-lien term loans and tightened the original issue discounts, and ABC Financial Inc. set the issue price on its incremental first-lien term loan at the narrow end of talk, and then both companies’ debt broke for trading on Friday.

Also, before surfacing in the secondary market, McAfee LLC firmed the issue price on its U.S. incremental term loan at the tight end of guidance and upsized its euro incremental term loan, and Tortoise Borrower LLC changed the original issue discount on its add-on term loan B.

In more happenings, Perforce Software Inc. and Compania Espanola de Petroleos SAU (Cepsa) accelerated the commitment deadlines for their term loans.

AmeriLife tweaked

AmeriLife firmed pricing on its $285 million seven-year covenant-lite first-lien term loan (B2/B) at Libor plus 450 basis points, the low end of the Libor plus 450 bps to 475 bps talk, and changed the original issue discount to 99.5 from 99, while leaving the 0% Libor floor and 101 soft call protection for six months unchanged, according to a market source.

The first-lien term loan is still split between a $250 million funded tranche and a $35 million delayed-draw tranche.

Regarding the $70 million eight-year covenant-lite second-lien term loan (Caa2/CCC+), pricing was set at Libor plus 900 bps, the high end of the Libor plus 875 bps to 900 bps talk, and the discount was revised to 99 from 98.5, the source said. This tranche still has a 0% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $395 million of credit facilities also include a $40 million revolver (B2/B).

AmeriLife hits secondary

Recommitments for AmeriLife’s credit facilities were due at noon ET on Friday and, later in the day, the debt freed to trade, with the first-lien term loan quoted at par bid, 100½ offered and the second-lien term loan quoted at 99½ bid, par offered, another source added.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance existing debt, fund tuck-in acquisitions and finance a shareholder distribution.

AmeriLife is a Clearwater, Fla.-based developer, marketer and distributor of annuity, life and health insurance solutions.

ABC updated, frees up

ABC Financial set the original issue discount on its fungible $115 million senior secured incremental first-lien term loan (B3/B-) due June 2025 at 99.5, the tight end of the 99.25 to 99.5 talk, a market source said.

The incremental term loan is priced at Libor plus 425 bps with a 1% Libor floor, in line with the existing first-lien term loan, and all of the debt is getting 101 soft call protection for six months.

During the session, the incremental term loan began trading and levels were quoted at 99 5/8 bid, 100 1/8 offered, the source added.

Jefferies LLC, Macquarie Capital and Antares Capital are leading the deal that will be used to refinance an existing second-lien term loan.

ABC Financial is a Little Rock, Ark.-based software and payment processing company.

McAfee modified, trades

McAfee firmed the original issue discount its $300 million incremental first-lien term loan due September 2024 at 99.25, the tight end of the 99 to 99.25 talk, according to a market source.

In addition, the company upsized its euro incremental first-lien term loan due September 2024 to €350 million (roughly $400 million equivalent) from $300 million equivalent, the source said.

Like the existing loans, the U.S. incremental term loan is priced at Libor plus 375 bps with a 0% Libor floor and the euro incremental term loan is priced at Euribor plus 350 bps with a 0% floor.

The euro incremental loan was sold in line with talk at an original issue discount of 99.5.

Both term loans have 101 soft call protection for six months.

On Friday, the U.S. incremental term loan freed to trade, with levels quoted at 99¾ bid, 100¼ offered, the source added.

Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Mizuho Bank, Morgan Stanley Senior Funding Inc., RBC Capital Markets and UBS Investment Bank are leading the deal that will be used by the Santa Clara, Calif.-based cybersecurity company to return capital to shareholders and for general corporate purposes.

Tortoise revised, breaks

Tortoise Borrower moved the original issue discount on its fungible $40 million add-on covenant-lite term loan B (Ba2/BB-) due Jan. 31, 2025 to 99.5 from 99, a market source remarked.

The add-on term loan is priced at Libor plus 350 bps with a 1% Libor floor, and has 101 soft call protection for six months and a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

Commitments remained due at noon ET on Friday and, in the afternoon, the add-on term loan emerged in the secondary market at par bid, 100¾ offered, a trader added.

Morgan Stanley Senior Funding is leading the deal that will be used to fund the acquisition of the midstream energy asset management business of Advisory Research Inc., a subsidiary of Piper Jaffray Cos.

Closing is expected in the second half of the year, subject to regulatory approval and customary conditions, including fund board/shareholder approval.

The pro forma term loan B size will be about $340 million.

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

Perforce moves deadline

In other news, Perforce Software accelerated the commitment deadline for its $800 million seven-year covenant-lite first-lien term loan (B2/B-) to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, a market source said.

Talk on the first-lien term loan is Libor plus 450 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1,175,000,000 of credit facilities also include a $75 million revolver (B2/B-) and a $300 million privately placed second-lien term loan.

Credit Suisse Securities (USA), Deutsche Bank Securities, Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to refinance the company’s existing capital structure in conjunction with a significant new equity investment from Francisco Partners.

With the investment, Francisco Partners will become an equal partner with affiliates of Clearlake Capital Group LP, which initially invested in the company in late 2017.

Closing is expected this quarter.

Perforce is a Minneapolis-based provider of enterprise-grade development operations software solutions.

Cepsa accelerated

Cepsa moved up the commitment deadline for its roughly $605 million senior secured seven-year term loan B to end of day Wednesday from 10 am. ET on June 14, according to a market source.

Talk on the term loan is Libor plus 500 bps with a 0% Libor floor, an original issue discount of 98.5 and 101 soft call protection for six months.

HSBC Securities (USA) Inc., BNP Paribas Securities Corp., Citigroup Global Markets, Deutsche Bank Securities, RBC Capital Markets and Santander are leading the deal that will be used with equity to fund the acquisition of a significant minority interest in the company by the Carlyle Group from Mubadala Investment Co.

Closing is expected by year-end, subject to regulatory approvals.

Cepsa is a Madrid, Spain-based privately owned integrated oil & gas company.

Blackstone CQP allocates

Blackstone CQP Holdco LP allocated its $2.6 billion five-year senior secured term loan B, a market source remarked.

Pricing on the term loan is Libor plus 350 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.

On Thursday, the term loan was upsized from $2.5 billion and the discount was tightened from talk in the range of 99 to 99.5.

Morgan Stanley Senior Funding, Credit Suisse Securities (USA), Jefferies, Barclays, RBC Capital Markets and Perella are leading the deal that will be used to refinance existing senior secured notes, fund a distribution to Blackstone and pay transaction fees and expenses.

Closing is expected during the week of June 17.

Blackstone CQP owns about a 40% interest in Cheniere Energy Partners LP. CQP owns Sabine Pass Liquefaction LLC, which owns and operates five fully operational and fully contracted LNG trains, with a fully permitted, planned sixth train in late-stage development.

© 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.