Reece tweaks loan; Shutterfly, Vungle reveal price guidance; primary calendar builds

By Sara Rosenberg

New York, Sept. 6 – On Friday, Reece Group modified the original issue discount on its add-on term loan, and Shutterfly Inc. and Vungle Inc. released price talk on their term loans in connection with their bank meetings.

Also, Inmarsat plc, Edgewell Personal Care Co., ON Semiconductor Corp., Advanced Drainage Systems Inc., Ascensus Specialties LLC, Axiom Global Inc. and Argus Media joined the near-term primary calendar.

Reece updated

Reece Group adjusted the original issue discount on its fungible $95 million add-on term loan to 99.875 from talk in the range of 99.5 to 99.75, a market source remarked.

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

J.P. Morgan Securities LLC is leading the deal that will be used with cash on hand to fund the acquisition of Todd Pipe & Supply LLC, a plumbing supply wholesaler, for $122 million, with a further $38 million deferred until Dec. 31, 2021 and subject to achieving certain milestones.

Closing is expected on Oct. 1, subject to customary conditions.

Reece is an Australia-based provider of plumbing, HVAC and waterworks products.

Shutterfly sets talk

Shutterfly held its bank meeting in the morning and announced talk on its $1.285 billion first-lien term loan B at Libor plus 525 bps with a 0% Libor floor, an original issue discount of 98 to 99 and 101 soft call protection for six months, according to a market source.

The company’s $1.585 billion of senior secured credit facilities (B1) also include a $300 million revolver.

Commitments are due at 5 p.m. ET on Sept. 20, the source said.

Barclays, Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets LLC, Mizuho and UBS Investment Bank are leading the deal.

Shutterfly being acquired

Proceeds from Shutterfly’s credit facilities will be used with $500 million of senior secured notes and equity to fund its buyout by Apollo Global Management LLC for $51.00 per share in cash, or an enterprise value of about $2.7 billion, and the buyout of Snapfish LLC by Apollo. Shutterfly and Snapfish will then be merged into one company.

Closing is expected by early in the fourth quarter, subject to customary conditions, including approval by Shutterfly stockholders and receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Shutterfly is a Redwood City, Calif.-based retailer and manufacturing platform for personalized products and communications. Snapfish is a San Francisco-based internet-based retailer of photography products.

Vungle discloses guidance

Vungle came out with talk of Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $350 million seven-year covenant-lite first-lien term loan B that launched with a presentation in the morning, a market source said.

The company’s $400 million of senior secured credit facilities (B2/B) also include a $50 million five-year revolver.

Commitments are due at noon ET on Sept. 19, the source added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Nomura Securities International Inc. are leading the deal, which will be used to help fund the buyout of the company by Blackstone and pay fees and expenses related to the financing.

Closing is expected this year, subject to customary conditions.

Vungle is a San Francisco-based performance marketing platform for in-app video advertisements on mobile devices.

Inmarsat coming soon

In more primary happenings, Inmarsat scheduled a bank meeting for Tuesday to launch $3.4 billion of credit facilities, a market source remarked.

The facilities consist of a $700 million revolver and a $2.7 billion term loan B, the source added.

Barclays, BofA Securities, Inc. and UBS Investment Bank are leading the deal that will be used with $1.125 billion of senior secured notes to help fund the buyout of the company by Apax, Warburg Pincus, Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board for $7.21 in cash per share, or about $3.4 billion.

Closing is expected in the fourth quarter, subject to regulatory clearances and other conditions.

Inmarsat is a London-based satellite telecommunications company.

Edgewell readies deal

Edgewell Personal Care will hold a bank meeting at 10:30 a.m. ET in New York on Monday to launch $1.6 billion of senior secured credit facilities (BB-), according to a market source.

The facilities consist of a $425 million revolver, a $565 million term loan A and a $610 million term loan B, the source said.

BofA Securities, Inc., MUFG, Barclays, TD Securities (USA) LLC, Standard Chartered, BMO Capital Markets, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are leading the deal that will be used with cash on hand to fund the acquisition of Harry’s Inc. in a transaction valued at $1.37 billion. About 79% of the total value of the transaction will be paid in cash and 21% will be paid in Edgewell common stock. Upon closing, Harry’s shareholders will own about 11% of Edgewell.

Closing is expected by the end of the first quarter of 2020, subject to customary conditions and regulatory approval.

Edgewell is a Shelton, Conn.-based pure-play consumer products company. Harry’s is a New York-based seller of shaving tools and skin care products.

ON Semiconductor refinancing

ON Semiconductor scheduled a lender call for Monday to launch a $1.635 billion seven-year term loan B (Baa3/BB) talked at Libor plus 200 bps to 225 bps with a 0% Libor floor and an original issue discount of 99.5, a market source said.

J.P. Morgan Securities LLC is leading the deal that will be used to extend an existing term loan B and repay revolver borrowings.

ON Semiconductor is a Phoenix-based semiconductor company.

Advanced Drainage on deck

Advanced Drainage Systems set a bank meeting for 9:30 a.m. ET in New York on Monday to launch $1.05 billion of credit facilities (BB), according to a market source.

The facilities consist of a $350 million five-year revolver and a $700 million seven-year first-lien term loan, the source said.

Barclays, Morgan Stanley Senior Funding Inc., BofA Securities, Inc., PNC Capital Markets, BMO Capital Markets, Fifth Third Bank and HSBC Securities (USA) Inc. are leading the deal that will be used with an upcoming senior note offering and a recently completed equity offering to support the acquisition of Infiltrator Water Technologies Ultimate Holdings Inc., and to pay related fees and expenses.

Infiltrator Water, an Old Saybrook, Conn.-based on-site septic wastewater treatment company, was bought on July 31 for about $1.08 billion from Ontario Teachers’ Pension Plan and other stockholders.

Advanced Drainage is a Hilliard, Ohio-based manufacturer of water management products and drainage solutions for use in the construction and infrastructure marketplace.

Ascensus joins calendar

Ascensus Specialties LLC will hold a bank meeting in New York on Tuesday to launch $362.5 million of senior credit facilities, a market source said.

The facilities consist of a $40 million five-year revolver, a $245 million seven-year first-lien term loan and a $77.5 million eight-year second-lien term loan, the source added.

Antares Capital is leading the deal that will be used to fund the acquisition of Callery, a producer of boranes and specialty alcoholates.

Ascensus, a Wind Point Partners portfolio company, is a Bellevue, Wash.-based producer of dry and liquid sodium borohydride.

Axiom plans meetings

Axiom Global scheduled a series of management meetings for Wednesday to launch $200 million of credit facilities, according to a market source.

The facilities consist of a $25 million revolver and a $175 million first-lien term loan B, the source said.

Barclays is leading the deal that will be used to help fund the buyout of the company by Permira Funds.

Closing is expected in the fourth quarter, subject to customary conditions.

Axiom is a provider of specialized on-demand legal talent.

Argus Media sets launch

Argus Media is will hold a bank meeting on Tuesday to launch a $500 million term loan B talked at Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99 to 99.5, a market source remarked.

J.P. Morgan Securities LLC is leading the deal that will be used for a dividend recapitalization.

Argus is a London-based media organization.

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