Refinitiv, Hayward release guidance; new issue calendar for this week continues to build

By Sara Rosenberg

New York, Sept. 4 – In the primary market on Tuesday, Refinitiv announced price talk on its U.S. and euro term loans with its London bank meeting, and Hayward Industries Inc. released guidance on its add-on term loan that launched with an afternoon call.

Also, Cohu Inc. came out with timing on the launch of its term loan, and Correct Care Solutions (CCS-CMGC Holdings Inc.), Encino Acquisition Partners Holdings LLC, Hillman Cos., Quorum Business Solutions (QBS Parent Inc.), Navicure and PDC Brands (Parfums Holding Co. Inc.) joined this week’s calendar.

Refinitiv proposed terms

Refinitiv held its London bank meeting on Tuesday and revealed talk on its $5.5 billion U.S. seven-year covenant-light term loan B and $2.5 billion equivalent euro seven-year covenant-light term loan B, according to a market source. A bank meeting for U.S. investors will take place at 11 a.m. ET in New York on Wednesday.

Talk on the U.S. term loan is Libor plus 400 basis points to 425 bps and talk on the euro term loan is Euribor plus 425 bps, the source said. Both loans are talked with a 0% floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months.

The company’s $8.75 billion equivalent of credit facilities also include a $750 million revolver.

Commitments are due at 5 p.m. ET on Sept. 17, the source added.

Refinitiv lead banks

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, UBS Investment Bank, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Deutsche Bank Securities Inc., Barclays, RBC Capital Markets and Sumitomo are leading Refinitiv’s credit facilities.

The new bank debt will be used with $5.5 billion equivalent in notes to help fund the acquisition of a 55% stake in Thomson Reuters’ Financial & Risk business, which will be renamed Refinitiv, by Blackstone, Canada Pension Plan Investment Board and GIC.

Thomson Reuters will receive about $17 billion in gross proceeds when the transaction closes, subject to purchase price adjustments, and will retain a 45% equity stake in the company.

Closing is expected on Oct. 1.

Refinitiv is a data and financial technology platform.

Hayward floats talk

Hayward Industries hosted a lender call at 3 p.m. ET to launch a fungible $125 million add-on covenant-light first-lien term loan (B3) due August 2024 talked with an original issue discount of 99.5, a market source said.

Pricing on the term loan is Libor plus 350 bps with a 0% Libor floor, and the debt is getting 101 soft call protection for six months.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Jefferies LLC and Nomura are leading the deal that will be used to support the acquisition of Paramount Leisure Industries Inc. and to repay some second-lien term loan borrowings.

Hayward is an Elizabeth, N.J.-based manufacturer of residential and commercial pool equipment. Paramount is a Chandler, Ariz.-based supplier of in-floor pool cleaning systems.

Cohu on deck

Also in the primary market, Cohu scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch its previously announced $350 million seven-year covenant-light senior secured term loan B, according to a market source.

Commitments are due on Sept. 20, the source said.

Deutsche Bank Securities Inc. is leading the deal that will be used with cash on hand to fund the acquisition of Xcerra Corp. for $9.00 in cash and 0.2109 of a share of Cohu common stock. The transaction values Xcerra at about $796 million in equity value, with a total enterprise value of around $627 million, after excluding Xcerra’s cash and marketable securities net of the debt on its balance sheet as of Jan. 31, 2018.

Secured leverage will be 2.7 times, and net debt will be 1.7 times.

Closing is expected in the second half of the year, subject to approval by both companies’ shareholders, antitrust regulatory approvals and other customary conditions.

Cohu is a Poway, Calif.-based supplier of semiconductor test and inspection handlers, micro-electro mechanical system test modules, test contactors and thermal sub-systems. Xcerra is a Norwood, Mass.-based parent company of four brands in the semiconductor and PCB test industries.

Correct Care schedules meeting

Correct Care Solutions will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch $675 million of credit facilities, according to a market source.

The facilities consist of a $65 million revolver, a $500 million seven-year covenant-light first-lien term loan that has 101 soft call protection for six months, and a $110 million eight-year covenant-light second-lien term loan that has call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at 5 p.m. ET on Sept. 20.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Ares and Cantor Fitzgerald are leading the deal, which will be used to fund H.I.G. Capital’s acquisition of CCS and CMGC.

Correct Care is a provider of outsourced healthcare and behavioral solutions to local detention facilities, federal and state prisons, and behavioral healthcare facilities.

Encino joins calendar

Encino Acquisition Partners set a bank meeting for 10 a.m. ET on Wednesday to launch a $550 million seven-year senior secured second-lien term loan, a market source said.

The term loan is non-callable for one year, then at 102 in year two and 101 in year three, the source added.

Jefferies LLC, Citigroup Global Markets Inc. and BMO Capital Markets are leading the deal that will be used to help fund the acquisition of the Ohio Utica Assets from Chesapeake Energy Corp. for about $2 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including the receipt of third-party consents.

Encino Acquisition is a Houston-based oil and gas company. The company was formed in 2017 through a partnership with Canada Pension Plan Investment Board.

Hillman sets launch

Hillman scheduled a lender call for 2 p.m. ET on Thursday to launch a $365 million incremental term loan B, according to a market source.

Jefferies LLC is leading the deal.

In August, the company disclosed that it received a commitment for financing from Jefferies to fund its acquisition of Big Time Products, a provider of personal protection and work gear products.

Closing is subject to customary conditions and regulatory approvals.

Hillman is a Cincinnati-based distributor of fasteners, keys, engravable tags, letters, numbers, signs and other hardware-related items.

Quorum coming soon

Quorum Business Solutions emerged with plans to hold a bank meeting at 2:30 p.m. ET in New York on Wednesday to launch a $230 million seven-year covenant-light first-lien term loan that has a 0% Libor floor and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Sept. 19, the source added.

Credit Suisse Securities (USA) LLC and Macquarie Capital (USA) Inc. are leading the deal, which will be used to help fund the buyout of the company by Thoma Bravo LLC from Silver Lake.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Quorum is a provider of finance, operations and accounting software to energy companies.

Navicure readies loan

Navicure will hold a lender call on Thursday to launch a $108 million incremental term loan, according to a market source.

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

Navicure, a portfolio company of Bain Capital, is a Duluth, Ga.-based provider of SaaS-based revenue cycle management services.

PDC plans call

PDC Brands set a lender call for 1 p.m. ET on Wednesday to launch a new loan deal, a market source remarked.

Nomura is the left lead on the deal.

PDC is a Stamford, Conn.-based beauty and personal care products company.

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