Telenet breaks; Dynatrace, Lumentum, Newport update deals; Navex, Compuware accelerated

By Sara Rosenberg

New York, Aug. 7 – Telenet widened the original issue discount on its add-on U.S. term loan AN and firmed sizes on its AN and AO tranches, before freeing the debt up for trading during Tuesday’s market hours.

In more happenings, Dynatrace tightened spreads and issue prices on its first-and second-lien term loans, and Lumentum Holdings Inc. firmed pricing on its term loan at the low side of talk, added a step-down and modified the original issue discount.

Also, Newport Group set pricing on its first-lien term loan at the high end of guidance, and Navex Global Inc. and Compuware Corp. moved up the commitment deadlines on their credit facilities.

Furthermore, Bay Club (Bulldog Purchaser Inc.), 24-7 Intouch, Cypress Semiconductor Corp., Alion Science & Technology Corp. and Hoffmaster Group Inc. disclosed price talk with launch, and Jane Street and Cole-Parmer Instrument Co. (CPI Holdco LLC) surfaced with new deal plans.

Telenet modified

Telenet changed the original issue discount on its add-on U.S. term loan AN due August 2026 to 98.5 from the 98.75 area, and firmed the discount on its add-on euro term loan AO due December 2027 at 98 from talk in the 98 area, according to a market source.

The add-on debt (Ba3/BB-) totals €610 million equivalent, with the U.S. AN tranche size set at $475 million and the euro AO tranche size set at €205 million, the source said.

As before, pricing on the add-on U.S. term loan AN is Libor plus 225 basis points with a 0% Libor floor and pricing on the add-on euro term loan AO is Euribor plus 250 bps with a 0% floor, in line with existing pricing.

Included in the add-on loans is a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

Recommitments for the U.S. loan were due at 11 a.m. ET on Tuesday and recommitments for the euro loan were due at 9 a.m. ET on Tuesday.

Telenet hits secondary

After terms finalized, Telenet’s bank debt freed up for trading and the add-on term loan AN was quoted at 98¾ bid, 99¼ offered by one trader and at 98¾ bid, 99 1/8 offered by another trader.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., ING Capital, Rabobank, Bank of Nova Scotia and Societe Generale are leading the deal that will be used to fund a €600 million extraordinary dividend payment. Scotia is the administrative agent.

Telenet is a Mechelen, Belgium-based cable operator.

Dynatrace flexes

Back on the primary market, Dynatrace cut pricing on its $950 million seven-year first-lien term loan to Libor plus 325 bps from Libor plus 350 bps and moved the issue price to par from 99.5, a market source remarked. This tranche still has a 0% Libor floor, a 25 bps step-down based on leverage, a 25 bps step-down upon an initial public offering and 101 soft call protection for six months.

Furthermore, the company lowered pricing on its $170 million eight-year second-lien term loan to Libor plus 700 bps from Libor plus 750 bps and revised the original issue discount to 99.75 from 99, while leaving the 0% Libor floor and hard call protection of 102 in year one and 101 in year two, with the exception that IPO proceeds and change of control will be at 101 in year one, unchanged, the source added.

The company’s $1.18 billion of senior secured credit facilities also include a $60 million five-year revolver.

Recommitments were due at the end of the day on Tuesday.

Jefferies LLC is the left lead bank of the syndicate group, which includes Goldman Sachs Bank USA.

Proceeds will be used to refinance debt.

Dynatrace is a Waltham, Mass.-based digital performance management company.

Lumentum revised

Lumentum set the spread on its $500 million seven-year covenant-light first-lien term loan (Ba2/BB) at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, added a step-down to Libor plus 225 bps at 0.5 times net first-lien leverage with a $100 million cap on cash netting, and changed the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has a 0% Libor floor.

Included in the loan is a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

Commitments were due at 5 p.m. ET on Tuesday and allocations are targeted for Wednesday.

Deutsche Bank Securities Inc. is leading the deal that will be used to help fund the acquisition of Oclaro Inc. for $5.60 in cash and 0.0636 of a share of Lumentum common stock. The transaction values Oclaro at about $1.8 billion in equity value.

Closing is expected in the second half of this year, subject to approval by Oclaro’s stockholders, antitrust regulatory approval in the U.S. and China, and other customary conditions.

Lumentum is a Milpitas, Calif.-based provider of photonics products for optical networking and lasers for industrial and consumer markets. Oclaro is a San Jose, Calif.-based provider of optical components and modules for the long-haul, metro and data center markets.

Newport updates pricing

Newport Group firmed pricing on its $240 million seven-year covenant-light first-lien term loan (B2/B) at Libor plus 375 bps, the wide end of the Libor plus 350 bps to 375 bps talk, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source said.

Also, commitments are now due at noon ET on Wednesday, moved up from noon ET on Thursday, the source added.

The company’s $330 million of senior secured credit facilities also include a $30 million revolver (B2/B) and a $60 million privately placed second-lien term loan.

RBC Capital Markets, SunTrust Robinson Humphrey Inc., Capital One and Fifth Third are leading the deal that will be used to finance Kelso & Co.’s acquisition of a majority stake in the company.

Existing investors Stone Point Capital and management will retain a significant interest in the company.

Newport Group is a Walnut Creek, Calif.-based provider of retirement services and consulting services related to retirement plans.

Navex accelerated

Navex Global moved up the commitment deadline on its $639 million of senior secured credit facilities to noon ET on Thursday from Monday, according to a market source.

The facilities consist of a $75 million five-year revolver (B-), a $410 million seven-year covenant-light first-lien term loan (B-) and a $154 million eight-year covenant-light second-lien term loan (CCC).

Talk on the first-lien term loan is Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps to 775 bps with a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

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, which 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.

Compuware tweaks timing

Compuware accelerated the commitment deadline on its $535 million of credit facilities (B1/B) to 4 p.m. ET on Wednesday from Friday, a market source said.

The facilities consist of a $60 million five-year revolver, and a $475 million seven-year first-lien term loan talked at Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Jefferies LLC, J.P. Morgan Securities LLC and Goldman Sachs Bank USA are leading the deal that will be used to repay the company’s existing HoldCo debt in connection with the spinoff of Dynatrace from the existing business.

Compuware is a Detroit-based technology performance company.

Bay Club sets talk

Also in the primary market, Bay Club held its lender presentation on Tuesday and released price talk on its $340 million seven-year covenant-light first-lien term loan, $185 million delayed-draw covenant-light first-lien term loan, $125 million eight-year covenant-light second-lien term loan and $65 million delayed-draw covenant-light second-lien term loan, according to a market source.

Talk on the first-lien term loan debt is Libor plus 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan debt is Libor plus 775 bps with a 0% Libor floor, a discount of 98.5 to 99 and hard call protection of 102 in year one and 101 in year two, the source said. Delayed-draw ticking fees are half the margin from days 61 to 120 and the full margin thereafter.

The San Francisco-based active lifestyle and hospitality company’s $765 million of senior secured credit facilities also include a $50 million five-year revolver.

Commitments are due at noon ET Aug. 21, the source added.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Jefferies LLC and KKR Capital Markets LLC are leading the deal that will be used to fund the buyout of Bay Club by KKR from York Capital Management and minority investors.

24-7 Intouch guidance

24-7 Intouch held its bank meeting in the morning and announced talk of Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $245 million seven-year first-lien term loan, according to a market source.

Commitments are due at noon ET on Aug. 17, the source said.

The company’s $370 million of senior secured credit facilities also include a $45 million revolver and an $80 million privately placed second-lien term loan.

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

Ontario Teachers’ Pension Plan is the sponsor.

24-7 Intouch is a provider of technology enabled, omnichannel, outsourced customer care to consumer-facing businesses.

Cypress proposed terms

Cypress Semiconductor announced talk of Libor plus 175 bps to 200 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months on its $502.6 million senior secured covenant-light term loan B due July 5, 2021 that launched with an afternoon call, a market source said.

Commitments/consents are due at 10 a.m. ET on Friday, the source added.

Morgan Stanley Senior Funding Inc., Barclays, SunTrust Robinson Humphrey Inc. and Fifth Third Bank are leading the deal that will be used to reprice an existing term loan B from Libor plus 225 bps with a 0% Libor floor.

Cypress is a San Jose, Calif.-based semiconductor manufacturer.

Alion floats OID

Alion Science & Technology launched at its morning meeting its $124.2 million add-on first-lien term loan with original issue discount talk of 99.5, a market source remarked.

The add-on term loan is priced in line with the existing term loan at Libor plus 450 bps with a 1% Libor floor.

Commitments are due on Aug. 17, the source added.

UBS Investment Bank, RBC Capital Markets, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the deal that will be used with a $43 million privately placed add-on to the company’s mezzanine notes and additional contributed equity to fund the acquisition of MacAulay-Brown Inc.

Alion, a portfolio company of Veritas Capital, is a McLean, Va.-based research and development, IT and operational services company. MacAulay-Brown is a Dayton, Ohio-based provider of complex engineering and mission critical technology solutions and services for national security missions across Department of Defense and Intelligence Community customers.

Hoffmaster launches

Hoffmaster Group came out with original issue discount talk of 99.5 on its fungible $37 million incremental term loan B that launched with a call during the session, according to a market source.

Like the existing loan, the incremental term loan is priced at Libor plus 400 bps with a 0% Libor floor and has 101 soft call protection until Dec. 11.

Commitments are due at 5 p.m. ET on Aug. 14, the source said.

RBC Capital Markets is leading the deal that will be used to repay revolver borrowings that were used to fund the acquisition of Aardvark Straws.

Hoffmaster is an Oshkosh, Wis.-based producer of specialty disposable tabletop products.

Jane Street on deck

Jane Street set a lender call for Wednesday to launch a fungible $210 million add-on term loan B due August 2022 talked at Libor plus 375 bps with a 0% Libor floor and an original issue discount of 99.875, a market source said.

Commitments are due on Aug. 14, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used for general corporate purposes.

Jane Street is a trading firm with offices in New York, London and Hong Kong.

Cole-Parmer plans call

Cole-Parmer scheduled a lender call for 3 p.m. ET on Wednesday to launch an $85 million incremental first-lien term loan due March 21, 2024, according to a market source.

The incremental first-lien term loan is priced at Libor plus 350 bps with a 1% Libor floor, in line with the existing term loan, and the debt is getting 101 soft call protection for six months, the source said.

Jefferies LLC is leading the deal that will be used to fund a distribution to shareholders.

Cole-Parmer is a Vernon Hills, Ill.-based provider of laboratory and industrial fluid handling products, instrumentation, equipment and supplies.

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