Octave Music, Invenergy free to trade; Vistage lifts loan size; Service Logic sets talk

By Sara Rosenberg

New York, Feb. 26 – Octave Music Group Inc. and Invenergy Thermal Operating I LLC firmed pricing on their term loans at the wide end of guidance, and then both of these deals made their way into the secondary market on Wednesday.

In more happenings, Vistage International Inc. increased the size of its add-on first-lien term loan and accelerated the commitment deadline, Service Logic released price talk with launch, and Science Applications International Corp. joined this week’s primary calendar.

Octave updated, breaks

Octave Music Group set pricing on its $290 million term loan (B2/B) at Libor plus 525 basis points, the high end of the Libor plus 500 bps to 525 bps talk, according to a market source.

As before, the term loan has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

On Wednesday, the term loan made its way into the secondary market and was quoted at 99 bid, 99¾ offered, the source added.

Citizens Bank is the left lead on the deal that will be used to refinance existing debt.

Octave Music, formerly known as TouchTunes Networks Interactive Inc., is a New York-based interactive entertainment platform.

Invenergy firms, trades

Invenergy Thermal Operating finalized pricing on its roughly $390 million first-lien term loan due August 2025 at Libor plus 300 bps, the wide side of the Libor plus 275 bps to 300 bps talk, a market source remarked.

The term loan still has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

During the session, the term loan broke for trading and was quoted at par 1/8 bid, par ½ offered, the source added.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps.

Invenergy is a Chicago-based operator of power generation facilities.

Vistage upsized

Vistage International lifted its fungible add-on first-lien term loan to $80 million from $50 million and left pricing at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99.5, a market source said.

Commitments are due at 1 p.m. ET on Thursday, moved up from Friday, the source added.

Macquarie Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to repay in full, instead of a portion, the company’s existing $80 million second-lien term loan.

The company is also getting a $15 million add-on to its revolver.

Vistage is a San Diego-based for-profit membership organization of CEOs.

Service Logic guidance

Service Logic held its lender call on Wednesday and announced original issue discount talk of 99 on its $40 million incremental term loan and $100 million delayed-draw term loan with, according to a market source.

The term loan debt is priced at Libor plus 425 bps with a 25 bps step-down at 3.75x net first-lien leverage and a 25 bps step-down at 3.25x net first-lien leverage, and a 1% Libor floor.

The delayed-draw term loan has an unused fee of 100 bps after 60 days and is available for 18 months, the source said.

Commitments are due on March 11.

Antares Capital is leading the deal that will be used to fund acquisitions.

Service Logic, a Warburg Pincus portfolio company, is a Charlotte, N.C.-based provider of aftermarket maintenance, repair and replacement services for commercial HVAC equipment, chilled water systems and building automation and controls systems.

Science Applications timing

Science Applications set a bank meeting for 10 a.m. ET in New York on Thursday to launch its incremental term loan B (Ba1/BB+), a market source remarked.

Citigroup Global Markets Inc. is the lead arranger on the debt.

According to filings with the Securities and Exchange Commission, the company expects to get a $600 million seven-year incremental covenant-lite term loan B priced at Libor plus 225 bps with a 0% Libor floor, and including 101 soft call protection for six months.

The incremental loan will be used to help fund the $1.2 billion acquisition of Unisys Federal, a provider of infrastructure modernization, cloud migration, managed services, and enterprise IT-as-a-service through scalable and repeatable solutions to U.S. federal civilian agencies and the Department of Defense.

Science Applications, a Reston, Va.-based technology integrator, previously said that other funds for the transaction would come from $400 million of notes and cash on hand.

Net leverage is expected to be around 4.5x at close.

Closing is anticipated by May 1, subject to customary conditions, including HSR regulatory clearance.

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