24-7 Intouch hits secondary market; Kettle Cuisine cuts first-lien loan spread

By Sara Rosenberg

New York, Aug. 20 – 24-7 Intouch finalized the spread on its first-lien term loan at the high end of guidance, widened the original issue discount and extended the call protection before breaking for trading on Monday.

In more happenings, Kettle Cuisine lowered pricing on its first-lien term loan.

24-7 updated

24-7 Intouch set pricing on its $245 million seven-year first-lien term loan (B2/B) at Libor plus 425 basis points, the wide end of the Libor plus 400 bps to 425 bps talk, adjusted 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.

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

The company’s $370 million of senior secured credit facilities also include a $45 million revolver (B2/B) and an $80 million privately placed eight-year second-lien term loan (Caa2/CCC+).

Pricing on the second-lien term loan is Libor plus 775 bps.

Recommitments were due at noon ET on Monday and then the first-lien term loan freed up for trading, with levels quoted at 98 bid, 99, a trader added.

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

Ontario Teachers’ Pension Plan is the sponsor.

Closing is expected on Friday.

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

Kettle Cuisine tweaked

Kettle Cuisine trimmed pricing on its $240 million seven-year covenant-light first-lien term loan (B1/B) to Libor plus 375 bps from talk in the range of Libor plus 400 bps to 425 bps, a market source remarked.

The first-lien term loan still has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $361.5 million of credit facilities also include a $50 million five-year revolver and a $71.5 million pre-placed second-lien term loan.

Recommitments were due at 5 p.m. ET on Monday, the source added.

BNP Paribas Securities Corp. is leading the deal that will be used to fund the merger of Kettle Cuisine with Bonewerks Culinarte, both of which are owned by Kainos Capital.

Kettle Cuisine is a Lynn, Mass.-based manufacturer of soups prepared in refrigerated and frozen formats. Bonewerks Culinarte is a Green Bay, Wis.-based producer of demi-glace, sauces and sous-vide entrees.

Verifone closes

In other news, the buyout of Verifone Systems Inc. by an investor group led by Francisco Partners for $23.04 per share in cash has been completed, according to a news release.

To help fund the transaction, Verifone got $2.2 billion of senior secured credit facilities that include a $250 million revolver, a $1.75 billion seven-year covenant-light first-lien term loan and a $200 million eight-year covenant-light second-lien term loan.

Pricing on the first-lien term loan is Libor plus 400 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 800 bps with a 0% Libor floor and was issued at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, the first-lien term loan was upsized from $1.65 billion and pricing firmed at the low end of the Libor plus 400 bps to 425 bps talk, and the second-lien term loan was downsized from $300 million and the spread finalized at the tight end of the Libor plus 800 bps to 825 bps talk.

Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets led the deal.

Verifone is a San Jose, Calif.-based company that makes secure electronic payment equipment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.