Bomgar, Press Ganey free up; Pelican tweaks deal; GTT, Hunterstown, Avast, BCP set talk

By Sara Rosenberg

New York, April 17 – Bomgar Corp. finalized the margin on its first-lien term loan at the high end of talk and tightened the original issue discount before breaking for trading on Tuesday, and Press Ganey Holdings Inc.’s term loan debt hit the secondary market too.

In more happenings, Pelican Products Inc. moved some funds between its first- and second-lien term loans and adjusted the spread and issue price on the first-lien tranche.

Also, GTT Communications Inc., Hunterstown Generation (Kestrel Acquisition LLC), R1 RCM Inc., Avast Software and BCP Renaissance Parent LLC (Blackstone) released price talk with launch.

Furthermore, GGP Inc., Albertsons Cos. Inc., Berlin Packaging LLC, Laird plc and Orion Engineered Carbons joined the near-term primary calendar.

Bomgar updated, trades

Bomgar set pricing on its $240 million seven-year first-lien term loan (B2/B-) at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, and adjusted the original issue discount to 99.75 from 99.5, according to a market source.

As before, the first-lien term loan has a 0% Libor floor and 101 soft call protection for six months.

The company’s $360 million of credit facilities also include a $25 million revolver (B2/B-) and a $95 million privately placed eight-year second-lien term loan that has a spread of Libor plus 750 bps and call protection of 102 in year one and 101 in year two.

After terms finalized, the debt made its way into the secondary market on Tuesday, with the first-lien term loan quoted at 100½ bid, 101 offered and the second-lien term loan quoted at par bid, 101 offered, a trader added.

Jefferies LLC and Golub are leading the deal, which will be used to help fund the buyout of the company by Francisco Partners.

Bomgar is a Ridgeland, Miss., provider of remote support and privileged access management solutions to enterprise customers.

Press Ganey breaks

Press Ganey’s $90 million incremental first-lien term loan (B2/B) due October 2023 and repriced $838 million term loan (B2/B) due October 2023 also began trading, with levels quoted at 100 3/8 bid on the break and then it moved up to 100½ bid, 100 7/8 offered, according to traders.

Pricing on the term loan debt is Libor plus 275 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Monday, pricing on the incremental loan was reduced from Libor plus 300 bps, the issue price was changed from 99.75, the repricing was added to the transaction, and the 101 soft call protection was extended from an April 23, 2018 expiration date.

Credit Suisse Securities (USA) LLC is leading the deal.

The incremental loan will be used to repay revolver borrowings and second-lien debt, and the repricing will take the existing term loan down from Libor plus 300 bps with a 1% Libor floor.

Press Ganey is a Wakefield, Mass.-based provider of patient experience measurement, performance analytics and strategic advisory solutions for health care organizations.

Pelican Products revised

Back in the primary market, Pelican Products lifted its seven-year covenant-light first-lien term loan B to $390 million from $380 million, trimmed pricing to Libor plus 350 bps from Libor plus 375 bps, removed the 25 bps step-down at 3.2 times first-lien net leverage and modified the original issue discount to 99.75 from 99.5, while leaving the 0% Libor floor and 101 soft call protection for six months intact, a market source said.

Additionally, the company scaled back its eight-year covenant-light second-lien term loan to $110 million from $120 million, the source continued. This tranche is still priced at Libor plus 775 bps with a 0% Libor floor and a discount of 99 and has hard call protection of 102 in year one and 101 in year two.

Another change was that the MFN sunset was eliminated from the credit agreement.

The company’s $530 million of senior secured credit facilities also include a $30 million ABL five-year revolver priced at Libor plus 150 bps, subject to a grid, with a 0% Libor floor.

Commitments remain due at noon ET on Wednesday, the source added.

Morgan Stanley Senior Funding Inc. and Jefferies are leading the deal that will be used to refinance existing debt.

Pelican Products is a Torrance, Calif.-based protective case and lighting equipment manufacturer.

GTT discloses talk

GTT Communications hosted its lender call for U.S. investors on Tuesday and announced price talk on its $1,331,000,000 seven-year covenant-light first-lien term loan (//BB) and €640 million seven-year covenant-light first-lien term loan (/B/BB), according to a market source. A bank meeting for European investors will take place in London on Wednesday.

Talk on the term loans is Libor/Euribor plus 325 bps to 350 bps with a 0% floor and an original issue discount of 99.5, the source said.

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

Commitments are due at 5 p.m. ET on April 26.

Credit Suisse, KeyBanc Capital Markets, SunTrust Robinson Humphrey Inc., Goldman Sachs, Morgan Stanley Senior Funding, Citizens Bank and ING are leading the deal that will be used to refinance existing debt and help fund the acquisition of Interoute for about €1.9 billion.

GTT Communications is a McLean, Va.-based cloud networking provider. Interoute is an operator of one of Europe’s largest independent fiber networks and cloud networking platforms.

Hunterstown launches

Hunterstown Generation held its lender presentation, launching its $375 million seven-year term loan B at talk of 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, a market source said.

The company’s $415 million of senior secured credit facilities (Ba3/BB) also include $40 million five-year revolver.

Commitments are due on May 1, the source added.

Morgan Stanley Senior Funding and Goldman Sachs Bank USA are leading the deal that will be used to fund Platinum Equity’s acquisition of the Hunterstown generation facility from GenOn Energy. Platinum Equity has partnered with AOS Energy Partners to acquire the asset.

Hunterstown is an 810 MW natural gas-fired combined cycle power plant located in the PJM-MAAC capacity region in Gettysburg, Pa.

R1 RCM guidance

R1 RCM came out with price talk of Libor plus 475 bps to 500 bps with a 0% Libor floor and an original issue discount of 99.5 on its $270 million seven-year covenant-light term loan B that launched with a morning bank meeting, according to a market source.

The term loan B has 101 soft call protection for six months.

The company’s $295 million of credit facilities (B1/B) also include a $25 million five-year revolver.

Commitments are due at noon ET on April 27, the source said.

Bank of America Merrill Lynch and Ares are leading the deal that will be used with $104 million of cash on hand and $110 million eight-year subordinated PIK toggle notes that were privately placed to fund the acquisition of the healthcare division of Intermedix Corp., comprised of its physician and emergency medical services revenue cycle management, practice management and analytics businesses.

First-lien leverage is 3.4 times, and total leverage is 4.8 times based on fiscal year Dec. 31, 2017 pro forma adjusted EBITDA of $79 million, including $15 million of expected synergies.

Closing is expected during the week of April 30.

R1 RCM is a Chicago-based provider of revenue cycle management and physician advisory services to health care providers.

Avast details surface

Avast Software held its lender call in the morning, launching a $1,214,000,000 covenant-light term loan B due September 2023 and a €502 million covenant-light term loan B due September 2023, a market source remarked.

The U.S. loan is talked at Libor plus 250 bps with a 1% Libor floor, and the euro loan is talked at Euribor plus 275 bps with a 0% floor, the source continued. Both loans are offered at par and have 101 soft call protection for six months.

Commitments are due at noon ET on April 24.

Credit Suisse is the left lead on the deal that will be used to reprice an existing U.S. term loan down from Libor plus 275 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 300 bps with a 0% floor.

Lenders are being offered a 12.5 bps amendment fee, the source added.

Avast is a Prague-based maker of security software.

BCP floats terms

BCP Renaissance released talk of Libor plus 325 bps to 350 bps with 1% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months on its $1.25 billion senior secured term loan B (B1/B+/BB-) due Oct. 31, 2024 that launched with a morning lender call, a market source said.

Commitments/consents are due at noon ET on Friday, the source added.

Morgan Stanley Senior Funding is leading the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 1% Libor floor.

BCP Renaissance is the owner of Blackstone’s interest in Rover Pipeline LLC, which transports natural gas from the Marcellus and Utica Shale production areas.

GGP coming soon

Also in the primary market, GGP emerged with plans to hold a lender presentation at 11:30 a.m. ET on Monday to launch $7 billion of senior secured credit facilities, according to a market source.

The facilities consist of a $1.5 billion revolver, a $1.5 billion term loan A-1, a $2 billion term loan A-2 and a $2 billion term loan B, the source said.

Morgan Stanley Senior Funding, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., RBC Capital Markets, Bank of America Merrill Lynch, Barclays, HSBC Securities (USA) Inc., Sumitomo Mitsui Banking Corp. and TD Securities LLC are leading the deal that will be used to fund Brookfield Property Partners LP’s acquisition of all outstanding shares of common stock of GGP for $23.50 in cash per share or either one Brookfield Property unit or one share of a new Brookfield Property U.S. REIT security, subject to proration based on aggregate cash consideration of $9.25 billion.

Closing is expected early in the third quarter, subject to GGP shareholder approval and other conditions.

GGP is a Chicago-based owner, manager, leaser and redeveloper of high-quality retail properties. Brookfield Property is a commercial real estate company.

Albertsons sets meeting

Albertsons scheduled a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch its previously announced $1.2 billion five-year asset-based last-out term loan, a market source remarked.

Bank of America Merrill Lynch, Credit Suisse Securities, Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Barclays, Deutsche Bank Securities, RBC Capital Markets, Wells Fargo Securities and MUFG are leading the deal that will be used to refinance existing debt at Rite Aid Corp. and, if applicable, fund the cash portion of the Rite Aid merger.

Albertsons is a Boise, Idaho-based food and drug retailer. Rite Aid is a Camp Hill, Pa., national drugstore chain.

Berlin joins calendar

Berlin Packaging will hold a lender call at 11 a.m. ET on Thursday to launch $890 million of senior secured credit facilities, split between a $75 million revolver and an $815 million term loan B, according to a market source.

The company is also getting a privately placed $355 million second-lien term loan, the source said.

Morgan Stanley Senior Funding, Goldman Sachs Bank USA and Jefferies are leading the deal that will be used to refinance existing debt and distribute a shareholder dividend.

Berlin Packaging is a Chicago-based hybrid packaging supplier.

Laird on deck

Laird scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch $883 million of first-lien credit facilities, a market source remarked.

The facilities consist of a $133 million revolver and a $750 million first-lien term loan, the source added.

The company is also getting a $143 million privately placed second-lien term loan.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Bank of America Merrill Lynch, HSBC Securities, Lloyds and NatWest are leading the deal that will be used to help fund the buyout of the company by Advent International Corp. for 200p in cash per share. The transaction values the entire issued ordinary share capital of Laird at approximately £1 billion on a fully diluted basis.

Closing is expected in the third quarter, subject to stockholder and regulatory approvals.

Laird is a London-based provider of products and technology solutions used in network infrastructure, wireless connectivity, displays and industrial controls.

Orion readies deal

Orion Engineered Carbons set a lender call for 10 a.m. ET on Wednesday to launch a repricing of its $288 million senior secured first-lien term loan as well as a repricing of its €329 million senior secured first-lien term loan, a market source said.

Goldman Sachs is the sole bookrunner, global coordinator and mandated lead arranger on the deal, and additional mandated lead arrangers and coordinators are Mediobanca International (Luxembourg) SA and ING Bank.

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

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