DiscoverOrg, Kofax, Allegiant, MHS, Quirch break; LifeMiles, Radiology Partners set changes

By Sara Rosenberg

New York, Jan. 29 – DiscoverOrg LLC shifted some funds between its first-and second-lien term loans and tightened spreads and issue prices on the debt, and Kofax (Project Leopard Holdings) widened the original issue discount on its first-lien term loan, and then these deals freed up for trading on Tuesday.

Also, Allegiant Travel Co. raised pricing on its term loan B, changed the issue price and extended the call protection before hitting the secondary market, and MHS Inc. and Quirch Foods Co. broke as well.

In more happenings, LifeMiles Ltd. increased the size of its add-on term loan B, and Radiology Partners Inc. modified the original issue discount on its incremental first-lien term loan B.

DiscoverOrg modified

DiscoverOrg raised its seven-year first-lien term loan B to $865 million from $825 million, trimmed pricing to Libor plus 450 basis points from talk in the range of Libor plus 475 bps to 500 bps and moved the original issue discount to 99 from talk in the range of 98 to 98.5, while leaving the 0% Libor floor and 101 soft call protection for six months unchanged, a market source remarked.

Additionally, the company scaled back its eight-year second-lien term loan to $370 million from $410 million, reduced pricing to Libor plus 850 bps from talk in the range of Libor plus 875 bps to 900 bps and tightened the issue price to 98.5 from 98, the source continued. This tranche still has a 0% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $1,335,000,000 of senior secured credit facilities also include a $100 million five-year revolver.

Recommitments were due at 1 p.m. ET on Tuesday.

DiscoverOrg tops OIDs

By late day, DiscoverOrg’s bank debt emerged in the secondary market, with the first-lien term loan quoted at 99¼ bid, 99¾ offered and the second-lien term loan quoted at par bid, 101 offered, a trader added.

Morgan Stanley Senior Funding Inc., Barclays and Antares Capital are leading the deal that will be used to fund the acquisition of Zebra and refinance existing debt.

Closing is expected on Friday.

DiscoverOrg is a Vancouver, Wash.-based provider of sales and marketing data.

Kofax tweaked, breaks

Kofax changed the original issue discount on its $410 million covenant-light first-lien term loan (B2/B) due July 2023 to 97 from talk in the range of 98 to 98.5, according to a market source.

As before, the term loan is priced at Libor plus 425 bps with a 1% Libor floor and has 101 soft call protection for six months.

Commitments were due at 2 p.m. ET on Tuesday and then the debt freed to trade, with levels quoted at 97¼ bid, 98¼ offered, another source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and UBS Investment Bank are leading the deal that will be used to fund the acquisition of Nuance Document Imaging from Nuance Communications Inc. for $400 million.

Closing is expected by the end of this quarter.

Kofax is an Irvine, Calif.-based provider of software solutions and services across multi-channel capture and financial process automation markets. Nuance Document Imaging is a provider of software that helps organizations optimize their information-based capture and print processes.

Allegiant reworked, trades

Allegiant Travel flexed pricing on its $450 million five-year senior secured term loan B (Ba3/BB-) to Libor plus 450 bps from Libor plus 425 bps, revised the original issue discount to 98 from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan still has a 0% Libor floor.

During the session, the term loan surfaced in the secondary market, with levels quoted at 98 bid, 98¾ offered, a trader added.

Barclays is leading the deal that will be used to refinance the company’s existing 5.5% senior notes due 2019.

Closing is expected during the week of Feb. 4.

Pro forma gross total leverage is 3.6 times and net total leverage is 2.3 times.

Allegiant is a Las Vegas-based operator of a passenger airline marketed to leisure travelers in small cities.

MHS hits secondary

MHS’ fungible $45 million add-on term loan B due May 1, 2024 began trading too, with levels seen at 99 bid, 99½ offered, a trader said.

Pricing on the add-on term loan is Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99.

RBC Capital Markets is leading the deal that will be used to repay existing revolver borrowings.

The spread and floor on the add-on term loan matches pricing on the company’s existing $580 million term loan B.

MHS is a Louisville, Ky.-based provider of e-commerce infrastructure.

Quirch frees up

Quirch Foods’ credit facilities broke as well, with the $165 million senior secured term loan quoted at 99¾ bid, par ½ offered, according to a market source.

Pricing on the term loan is Libor plus 600 bps with a 0% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The company’s $265 million of credit facilities also include a $100 million five-year ABL revolver.

RBC Capital Markets is leading the deal that will be used to back a significant investment in the company by Palladium Equity Partners LLC.

Quirch Foods is a Miami-based distributor and exporter of protein and Hispanic food products.

LifeMiles upsizes

Back in the primary market, LifeMiles lifted its add-on term loan B due August 2022 to $100 million from $75 million and left pricing at Libor plus 550 bps with a 1% Libor floor and an original issue discount of 99.5, a market source said.

The debt has 101 hard call protection through August 2019.

The spread, floor and call protection on the add-on term loan match the existing term loan B terms.

Commitments and consents were due at noon ET on Tuesday, the source added.

Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are leading the deal that will be used to pay a dividend to shareholders. Deutsche Bank is the administrative agent.

Lenders were offered a 25 bps consent fee.

LifeMiles is a Latin American coalition loyalty program and the exclusive operator of Avianca’s frequent flyer program.

Radiology Partners revised

Radiology Partners adjusted the original issue discount on its fungible $365 million incremental first-lien term loan B (B2) to 99.5 from 99, a market source remarked.

The incremental term loan is still priced at Libor plus 475 bps with a 0% Libor floor.

The Libor plus 475 bps spread will also be applied to the company’s existing $800 million first-lien term loan B.

The incremental loan and the existing term loan B are getting 101 soft call protection for six months.

No fee is being offered to existing lenders on their current term loan B holdings.

Final commitments were due at 5 p.m. ET on Tuesday, the source added.

Barclays and Golub are leading the deal that will be used to fund the acquisition of Austin Radiological Association and repay revolving credit facility borrowings associated with the acquisition of Desert Radiology.

New Enterprise Associates is the sponsor.

Radiology Partners is an El Segundo, Calif.-based radiology physician practice management company.

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