Hard Rock Northern Indiana breaks; TransUnion, LPL Holdings, Grifols updates emerge

By Sara Rosenberg

New York, Nov. 7 – Hard Rock Northern Indiana (Spectacle Gary Holdings LLC) saw its first-lien term loan surface in the secondary market on Thursday, with levels quoted above its original issue discount.

Meanwhile, over in the primary market, TransUnion LLC increased the size of its term loan B-5 and modified the issue price, LPL Holdings Inc. lowered the spread on its term loan B, and Grifols downsized its U.S. term loan B and tightened the original issue discount.

Also, DRW Holdings LLC, MediaOcean LLC, Cambium Learning Group Inc., STV Group and Restaurant Brands International Inc. announced price talk with launch.

Hard Rock frees up

Hard Rock Northern Indiana’s $370 million six-year first-lien term loan (B3/B-), which includes a $25 million delayed-draw piece, broke for trading on Thursday, with levels quoted at 98 bid, 99 offered, according to a market source.

Pricing on the term loan is Libor plus 900 basis points with a 2% Libor floor and it was sold at an original issue discount of 97. The debt is non-callable for 18 months, then at 109, 106 and 103.

During syndication, the term loan was upsized from $350 million through an increase in the funded piece, pricing was raised from talk in the range of Libor plus 800 bps to 825 bps, the Libor floor was revised from 1%, the discount widened from 98, and the call protection was changed from non-callable for 18 months, then at 102 and 101.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used to fund the construction of the Hard Rock Northern Indiana.

Hard Rock Northern Indiana is a land-based casino in Gary, Ind.

TransUnion tweaked

Moving to the primary market, TransUnion raised its seven-year covenant-lite term loan B-5 to $2.6 billion from $1.75 billion and tightened the issue price to par from 99.75, a market source said.

As before, the term loan B-5 is priced at Libor plus 175 bps and has 101 soft call protection for six months.

Recommitments are due at 1 p.m. ET on Friday, the source added.

Deutsche Bank Securities Inc. is leading the deal that will be used to repay in full the company’s existing term loan B-3 and B-4 tranches, instead of repaying a portion of the debt.

TransUnion is a Chicago-based provider of risk and information solutions to businesses and consumers.

LPL flexes

LPL Holdings trimmed pricing on its $1.07 billion seven-year term loan B (Ba1/BB+) to Libor plus 175 bps from Libor plus 200 bps, and left the 0% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months unchanged, a market source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used with $400 million of senior unsecured notes due 2027 and cash on hand to refinance an existing term loan B priced at Libor plus 225 bps and to pay fees and expenses related to the transaction.

The company is also increasing its revolver to $750 million from $500 million and extending the maturity to 2024.

Closing is expected on Tuesday.

LPL Holdings, a wholly owned subsidiary of LPL Financial Holdings Inc., is a Boston-based financial advisor and independent broker-dealer.

Grifols revised

Grifols scaled back its U.S. eight-year covenant-lite term loan B to $2.5 billion from $3 billion and adjusted the original issue discount to 99.75 from talk in the range of 99.25 to 99.5, according to a market source.

The term loan B is still priced at Libor plus 200 bps with a 0% Libor floor, and has 101 soft call protection for six months.

BofA Securities, Inc., BNP Paribas, HSBC, JPMorgan and BBVA are leading the deal that will be used to help refinance existing senior secured debt.

Grifols is a Sant Cugat del Valles, Barcelona-based health care company.

DRW sets guidance

Also in the primary market, DRW Holdings held its bank meeting on Thursday and released price talk on its $300 million seven-year first-lien term loan (B1/BB-) at Libor plus 425 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year.

Commitments are due on Nov. 21, the source said.

Jefferies LLC is leading the deal that will be used for general corporate purposes, including the expansion of trading capital.

DRW is a Chicago-based principle trading company across a diverse spectrum of asset classes and financial instruments on venues across the world.

MediaOcean proposed terms

MediaOcean came out with talk of Libor plus 400 bps with an original issue discount of 99.5 and 101 soft call protection for six months on its $275 million term loan B due August 2025 that launched with a call during the session, a market source said.

The company’s $305 million of credit facilities (B2/B) also include a $30 million revolver due August 2023.

Commitments are due at noon ET on Nov. 15, the source added.

Macquarie Capital (USA) Inc., BNP Paribas Securities Corp., Golub Capital and Jefferies LLC are leading the deal that will be used to with cash to help refinance/extend by three years an existing $293 million term loan B and revolver.

MediaOcean is a New York-based software company for the advertising sector.

Cambium reveals talk

Cambium Learning Group launched on its afternoon call its fungible $295 million add-on first-lien term loan with original issue discount talk of 96, according to a market source.

The add-on first-lien term loan is priced at Libor plus 450 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Commitments are due at noon ET on Nov. 20, the source said.

The company is also getting a fungible $93 million add-on second-lien term loan that is already fully subscribed and is priced at Libor plus 850 bps with a 0% Libor floor.

RBC Capital Markets, Barclays and BMO Capital Markets are leading the deal, which will be used to fund the acquisition of AIR Assessment, the student assessment division of the American Institutes for Research.

Closing is subject to regulatory review and other customary conditions.

Cambium, a Veritas Capital portfolio company, is a Dallas-based provider of digital instructional materials to preK-12 districts, schools, teachers and parents.

STV launches

STV Group held its bank meeting, launching its $225 million seven-year first-lien term loan B at talk of Libor plus 450 bps with an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $280 million of credit facilities also include a $55 million five-year revolver.

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

Macquarie Capital (USA) Inc., BNP Paribas Securities Corp., BMO Capital Markets and Carlyle are leading the deal that will be used to help fund a recapitalization of the company by the Tom Pritzker Family Business Interests advised by TPO.

Closing is expected in December.

STV is an engineering, architectural, program/construction management, planning and environmental professional services firm with headquarters in New York and Douglassville, Pa.

Restaurant holds call

Restaurant Brands hosted a lender call to launch a $4.57 billion term loan B talked at Libor plus 175 bps with an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source said.

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

J.P. Morgan Securities LLC is leading the deal that will be used to help refinance an existing term loan B priced at Libor plus 225 bps.

Restaurant Brands is an Oakville, Ont.-based quick service restaurant company.

Tacala allocates

In other news, Tacala Cos. allocated on Thursday morning its $95 million of fungible add-on term loans, according to a market source.

The debt is split between a $75 million add-on first-lien term loan priced at Libor plus 400 bps with a 0% Libor floor and sold at an original issue discount of 99, and a $20 million add-on second-lien term loan priced at Libor plus 775 bps with a 0% Libor floor and issued at a discount of 99.

KKR Capital Markets and Wells Fargo Securities LLC are leading the deal that will be used for a dividend recapitalization.

With this transaction, pricing on the existing first-lien term loan is being lifted from Libor plus 300 bps and pricing on the second-lien term loan is being increased Libor plus 700 bps.

Tacala is a Vestavia Hills, Ala.-based franchise operator of Taco Bell restaurants.

Parts Town wraps

Another deal to allocate in the morning was Parts Town’s $788 million unitranche first-lien term loan, a market source remarked.

Pricing on the term loan is Libor plus 550 bps with a 1% Libor floor and it was sold at an original issue discount of 99.5.

During syndication, the discount on the term loan was tightened from 99.

Golub Capital is leading the loan, which already funded and was used with additional cash and rollover equity to fund the acquisition of Heritage Foodservice Group and refinance existing debt.

Berkshire Partners is the sponsor.

Parts Town is an Addison, Ill.-based OEM parts distributor and service provider to the foodservice equipment market. Heritage Parts is a Fort Wayne, Ind.-based provider of replacement parts for commercial and institutional kitchen equipment.

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