Valtris, Quality Distribution free to trade; GlobalLogic, Franklin Square revise deals

By Sara Rosenberg

New York, July 27 – Valtris Specialty Chemicals’ (Polymer Additives Inc.) term loan surfaced in the secondary market on Friday, and Quality Distribution (Gruden Acquisition Inc.) saw its incremental first-lien term loan free up after the original issue discount was tightened.

In more happenings, GlobalLogic Holdings Inc. lowered pricing on its term loans, and Franklin Square Holdings increased the size of its term loan B and cut the spread.

Also, Navex Global Inc., Veritext Corp., Triton Solar US Acquisition Co., BrightView Holdings Inc. and 24-7 Intouch emerged with new deal plans.

Valtris hits secondary

Valtris Specialty Chemicals’ $405 million seven-year covenant-light first-lien term loan (B3/B-) broke for trading on Friday, with levels quoted at 98 bid, 99 offered, according to a trader.

Pricing on the term loan is Libor plus 600 basis points with a 0% Libor floor and it was sold at an original issue discount of 98. The debt has 101 hard call protection for one year.

During syndication, the first-lien term loan was upsized from $300 million as plans for a $105 million eight-year covenant-light second-lien term loan were canceled, pricing was lifted from revised talk in the range of Libor plus 450 bps to 475 bps and initial talk of Libor plus 400 bps, the discount widened from revised talk of 99 and initial talk of 99.5 and the call protection was changed from a 101 soft call for six months.

Also, during syndication, the company eliminated the MFN sunset, and revised the incremental, the excess cash flow sweep, the EBITDA definition, restricted payments and investments.

The eliminated second-lien term loan had most recently been talked at Libor plus 850 bps to 875 bps with a 0% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, and initially talked at Libor plus 800 bps with a 0% Libor floor and a discount of 99.

Valtris lead banks

Deutsche Bank Securities Inc. and RBC Capital Markets are leading Valtris’ term loan.

Proceeds will be used to fund the potential purchase of some assets from Ineos, subject to regulatory approvals, and to refinance existing debt.

Closing is expected during the week of July 30.

Valtris, an H.I.G. Capital portfolio company, is an Independence, Ohio-based manufacturer of specialty chemicals producing a diverse set of polymer modifiers, lubricants and stabilizers primarily used as additives in the production of plastics.

Quality tweaked, trades

Quality Distribution changed the original issue discount on its fungible $60 million incremental first-lien term loan (B-) due Aug. 18, 2022 to 99.75 from 99.5, a market source remarked.

The incremental loan is priced at Libor plus 550 bps with a 1% Libor floor, in line with the existing term loan, and has 101 soft call protection for six months.

Recommitments were due at noon ET on Friday and the deal emerged in the secondary market late in the session, with levels quoted at par ˝ bid, 101˝ offered, a trader added.

Jefferies LLC is leading the deal that will be used to fund the acquisition of an intermodal company and to repay ABL revolver borrowings.

With the incremental loan, the company sought an amendment to its existing credit facility and lenders were offered a 10 bps consent fee.

Quality Distribution is a Tampa, Fla.-based operator of a dedicated bulk tank network.

GlobalLogic cuts spread

GlobalLogic trimmed pricing on its $525 million seven-year term loan and $75 million seven-year delayed-draw term loan to Libor plus 325 bps from talk in the range of Libor plus 350 bps to 375 bps, and left the 0% Libor floor and original issue discount of 99.5 intact, according to a market source.

In addition, the 50 bps MFN sunset was extended to 24 months from six months, ticking fees were revised to half the spread from days 31 to 60 and the full spread thereafter from half the spread from days 46 to 90 and the full spread thereafter, and changes were made to the incremental, the source said.

J.P. Morgan Securities LLC is the left lead on the $600 million of term loans (B2/B+) that will be used to help fund the acquisition by Partners Group of Apax Partners’ stake in the company and to refinance existing debt.

The transaction values GlobalLogic at over $2 billion.

Upon closing, Partners Group will be an equal shareholder with existing investor Canada Pension Plan Investment Board.

GlobalLogic is a San Jose, Calif.-based digital product engineering services provider.

Franklin Square reworked

Franklin Square Holdings lifted its seven-year term loan B to $500 million from $450 million and lowered pricing to Libor plus 250 bps from talk in the range of Libor plus 275 bps to 300 bps, a market source said.

As before, the term loan B has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan A and for general corporate purposes.

Franklin Square is a Philadelphia-based investment company.

Navex readies deal

Also in the primary market, Navex Global scheduled a lender presentation for 10 a.m. ET on Tuesday to launch $639 million of senior secured credit facilities, a market source said.

The facilities consist of a $75 million revolver, a $410 million first-lien term loan and a $154 million second-lien term loan, the source added.

Morgan Stanley Senior Funding Inc., Antares Capital, Golub Capital LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by BC Partners from Vista Equity Partners, who will retain a minority stake, to refinance existing debt, and to pay transaction related fees and expenses.

Navex is a Portland, Ore.-based provider of ethics and compliance software, content and services.

Veritext joins calendar

Veritext set a bank meeting for 10 a.m. ET on Tuesday to launch $495 million of senior secured credit facilities, according to a market source.

The facilities consist of a $40 million five-year revolver, a $300 million seven-year first-lien term loan, a $50 million delayed-draw first-lien term loan with a 24 month commitment period and a $105 million eight-year second-lien term loan, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Jefferies LLC, BNP Paribas Securities Corp. and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners LP.

Veritext is a provider of deposition and litigation support solutions for law firms and corporations.

Triton coming soon

Triton Solar scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $415 million seven-year covenant-light term loan B, a market source remarked.

Bank of America Merrill Lynch, Societe Generale, Natixis and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by Permira, and to pay related fees and expenses.

Triton is a provider of video infrastructure technology.

BrightView plans call

BrightView set a lender call for Tuesday to launch $1,297,000,000 of credit facilities, according to a market source.

The facilities consist of a $260 million five-year revolver, and a $1,037,000,000 seven-year term loan talked at Libor plus 275 bps to 300 bps with a 25 bps step-down at 3.25 times first-lien leverage, a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing credit facilities.

BrightView is a Plymouth Meeting, Pa.-based provider of landscape services.

24-7 Intouch on deck

24-7 Intouch will hold a bank meeting on Aug. 7 to launch a new loan transaction, according to a market source.

RBC Capital Markets and Credit Suisse Securities (USA) LLC are leading the deal.

24-7 Intouch is a provider of contact center and BPO solutions.

Consolidated Aero well met

In other news, Consolidated Aerospace Manufacturing LLC’s $125 million add-on term loan (B+) was well oversubscribed by Friday’s commitment deadline, a market source said.

Allocations are targeted for early in the week of July 30, the source added.

The add-on term loan is priced at Libor plus 375 bps with a 1% Libor floor, in line with the existing term loan, and is being talked with an original issue discount of 99.5 and 101 soft call protection for six months.

Citizens Bank is leading the deal that will be used to help fund the acquisition of an engine component manufacturer.

Consolidated Aerospace is a manufacturer of components principally for the aerospace industry.

Next Level allocates

Next Level Apparel (YS Garments Inc.) allocated its $380 million credit facilities (B2/B) that consists of a $50 million revolver and a $330 million term loan, according to a market source.

Pricing on the revolver is Libor plus 600 bps with a step-down to Libor plus 550 bps when leverage is less than 3 times and it was issued at a discount of 99, and pricing on the term loan is Libor plus 600 bps with a step-down to Libor plus 550 bps when leverage is less than 3 times and a 1% Libor floor and it was also sold at a discount of 99. The term loan has 101 soft call protection for one year.

During syndication, pricing on the term loan increased from talk in the range of Libor plus 400 bps to 425 bps, the step-down was added, the call protection was extended from six months and a number of documentation changes were made.

BNP Paribas Securities Corp. is leading the deal that will be used to help fund the buyout of the company by Blue Point Capital Partners.

Next Level is a Gardena, Calif.-based apparel company.

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