SubCom, EnTrans break; LifePoint, Tecta, Talbots, BEP Ulterra, PolyOne and more set talk

By Sara Rosenberg

New York, Oct. 30 – SubCom (Crown Subsea Communications Holding Inc.) saw its bank debt emerge in the secondary market, with the first-lien term loan quoted above its original issue discount, and EnTrans International LLC’s term loan began trading too.

Moving to the primary market, LifePoint Health Inc., Tecta America Corp., Talbots Inc., BEP Ulterra Holdings Inc., PolyOne Corp., Extreme Reach Inc., Integrity Marketing, GPS Hospitality and Convergint Technologies disclosed price talk with launch.

Also, Belron Finance US LLC came out with talk on its term loan ahead of its upcoming lender call, and WeddingWire Inc. and NVA Holdings Inc. joined this week’s calendar.

SubCom frees up

SubCom’s credit facilities began trading on Tuesday, with the $405 million seven-year covenant-light first-lien term loan quoted at 98¾ bid, 99¾ offered, according to a market source.

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 soft call protection for one year.

During syndication, the term loan was downsized from $450 million due to an increase in the Surety Bonding Program, pricing was raised from talk in the range of Libor plus 500 bps to 525 bps, the discount was revised from 99, the call protection was extended from six months and amortization was increased to 5% per annum from 1%.

The company’s $505 million of credit facilities (B1/B) also include a $100 million revolver.

Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal that will help fund the buyout of SubCom by Cerberus Capital Management LP from TE Connectivity Ltd.

Closing is expected this quarter, subject to customary conditions.

SubCom is an Eatontown, N.J.-based supplier of subsea communications systems.

EnTrans hits secondary

EnTrans’ $255 million seven-year first-lien term loan (B3/B) broke as well, with levels quoted at 99 bid, par offered, a market source said.

Pricing on the term loan is Libor plus 600 bps with a 0% Libor floor, and it was sold at an original issue discount of 99. The loan has 101 soft call protection for one year.

On Monday, pricing on the term loan was lifted from talk in the range of Libor plus 525 bps to 550 bps and the call protection was extended from six months.

Credit Suisse Securities (USA) LLC and Barclays are leading the deal that will be used to refinance existing debt.

EnTrans is an Athens, Tenn.-based producer of aluminum and stainless steel tank trailers and related parts and services.

LifePoint details surface

Over in the primary market, LifePoint Health launched at its bank meeting on Tuesday its $3.4 billion seven-year senior secured covenant-light term loan (B1/B+) at talk of Libor plus 400 bps with a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Nov. 9 and closing is expected on Nov. 16, the source added.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Investment Bank are leading the deal that will be used to help fund the company’s merger with RCCH HealthCare Partners, which is owned by Apollo Global Management LLC.

LifePoint shareholders will receive $65.00 per share in cash, resulting in an enterprise value of about $5.6 billion, including $2.9 billion of net debt and minority interest.

LifePoint and RegionalCare Hospital Partners Holdings Inc. are the co-borrowers of the loan.

Based on filings with the Securities and Exchange Commission, the company is also expected to get an $800 million asset-based revolver, issue $1,575,000,000 of senior notes, and get an up to $1 billion equity contribution from funds managed by Apollo for the transaction.

LifePoint and RCCH are both Brentwood, Tenn.-based health care providers.

Tecta America launches

Tecta America held its bank meeting in the morning and released price talk on its $375 million seven-year covenant-light first-lien term loan (B2/B) and $100 million eight-year covenant-light second-lien term loan (Caa2/CCC+), according to a market source.

The first-lien term loan is talked at Libor plus 400 bps to 425 bps with a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 0% Libor floor and a discount of 99, the source said.

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

The company’s $535 million of credit facilities also provide for a $60 million revolver.

Commitments are due at 5 p.m. ET on Nov. 14.

Credit Suisse Securities (USA) LLC, UBS Investment Bank and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by Altas Partners from ONCAP.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Tecta is a Rosemont, Ill.-based provider of critical commercial roofing services.

Talbots reveals talk

Talbots came out with talk of Libor plus 625 bps to 650 bps with a 0% Libor floor, an original issue discount of 99 and call protection of non-callable for one year then at 102 in year two on its $420 million five-year covenant-light term loan B (B2/B-) that launched with a morning meeting, a market source said.

Commitments are due at noon ET on Nov. 8, the source added.

Bank of America Merrill Lynch and KKR Capital Markets are leading the deal that will be used to refinance existing first- and second-lien term loans.

Talbots is a Hingham, Mass.-based multi-channel retailer of women’s apparel.

BEP Ulterra guidance

BEP Ulterra launched at its morning bank meeting its $415 million seven-year covenant-light term loan B (B2/B-) at talk of Libor plus 475 bps to 500 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

Commitments are due at 1 p.m. ET on Nov. 9.

Wells Fargo Securities LLC and Barclays are leading the deal that will be used to help fund the acquisition of the company by the Blackstone Group LP from American Securities LLC.

Closing is expected this year.

BEP Ulterra is a Fort Worth, Texas-based pure-play supplier of polycrystalline diamond compact drill bits to the oil and gas industry.

PolyOne proposed terms

PolyOne announced talk of Libor plus 175 bps with a 0% Libor floor and an original issue discount of 99.5 to 99.75 on its $632.6 million covenant-light term loan B due Jan. 30, 2026 that launched with an afternoon call, a market source remarked.

The term loan has 101 soft call protection for six months.

Commitments are due at 1 p.m. ET on Nov. 6.

Wells Fargo Securities LLC is leading the deal that will be used to amend and extend an existing $632.6 million term loan B.

PolyOne is an Avon Lake, Ohio-based provider of specialized polymer materials, services and solutions.

Extreme Reach launches

Extreme Reach launched during the session its $410 million term loan B (B2/B-) at talk of Libor plus 625 bps to 650 bps with a 0% Libor floor, an original issue discount of 98.5 to 99 and call protection of 102 in year one and 101 in year two, according to a market source.

The company’s $440 million of credit facilities also include a $30 million revolver (Ba2/BB-).

Commitments are due on Nov. 14, the source said.

SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to refinance existing bank debt.

Extreme Reach is a Needham, Mass.-based video platform for integrated TV, online and mobile advertising.

Integrity hosts meeting

Integrity Marketing disclosed price talk on its $260 million first-lien term loan, $50 million first-lien delayed-draw term loan, $115 million second-lien term loan and $15 million delayed-draw second-lien term loan with its bank meeting, a market source said.

The first-lien term loan debt is talked at Libor plus 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan debt is talked at Libor plus 825 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $460 million of credit facilities also include a $20 million revolver.

Commitments are due on Nov. 13.

Antares Capital is leading the deal that will be used to refinance existing debt and to fund a distribution to existing shareholders.

Integrity Marketing, a portfolio company of HGGC, is a Dallas-based marketer and distributor of senior health and life insurance products.

GPS releases talk

GPS Hospitality held its call during the session, launching its $265 million term loan B at 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, according to a market source.

The company’s $305 million of credit facilities (B3/B-) also include a $40 million revolver.

Commitments are due on Nov. 14, the source said.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to refinance existing debt and fund an acquisition.

GPS Hospitality is an Atlanta-based Burger King and Popeyes Louisiana Kitchen franchisee.

Convergint holds call

Convergint surfaced in the morning with plans to hold a lender call at 3 p.m. ET to launch a fungible $65 million incremental first-lien term loan due February 2025 talked with an original issue discount of 99, a market source remarked.

The incremental term loan is priced in line with the existing first-lien term loan at Libor plus 300 bps with a 0.75% Libor floor.

Commitments are due at noon ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Jefferies LLC, RBC Capital Markets and Bank of America Merrill Lynch are leading the deal that will be used to fund tuck-in acquisitions.

Convergint is a Schaumberg, Ill., service-based security systems integrator.

Belron floats terms

Belron disclosed talk of Libor plus 250 bps with a 0% Libor floor, an original issue discount of 99.25 to 99.5 and 101 soft call protection for six months on its $455 million covenant-light term loan B (Ba3/BB) due November 2025 in preparation for its lender call scheduled for 11 a.m. ET on Wednesday, according to a market source.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the global coordinators on the deal and joint arrangers with BNP Paribas Securities Corp. and ING. JPMorgan is the administrative agent.

The term loan will be used to fund a special distribution to shareholders.

Pro forma net leverage is 4.22 times.

Belron is a U.K.-based operator in the vehicle glass repair and replacement market.

WeddingWire timing emerges

WeddingWire set a lender call for Wednesday morning to launch its previously announced $650 million of senior secured credit facilities, a market source said.

The facilities consist of a $25 million revolver (B+), a $450 million first-lien term loan (B+) and a $175 million second-lien term loan (CCC+).

Talk on the first-lien term loan is Libor plus 450 bps to 475 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 825 bps with a 0% Libor floor, a discount of 98 to 98.5 and call protection of 102 in year one and 101 in year two, the source added.

J.P. Morgan Securities LLC, UBS Investment Bank, Jefferies LLC, RBC Capital Markets, KeyBanc Capital Markets and Societe Generale provided the debt commitment. JPMorgan is left on the first-lien and UBS is left on the second-lien.

WeddingWire buying XO

Proceeds from WeddingWire’s credit facilities will be used with up to $338 million of equity to fund the acquisition of XO Group Inc. for $35.00 per share in a transaction valued at $933 million.

The combined company will be owned by the Permira Funds and Spectrum Equity, who are current investors in WeddingWire.

Closing is expected in the first half of 2019, subject to regulatory and XO Group shareholder approval, and other customary conditions.

WeddingWire is a Chevy Chase, Md. and Barcelona, Spain-based online marketplace, connecting consumers with wedding professionals and wedding planning tools. XO is a New York-based multi-platform of brands that guide couples through transformative life stages.

NVA on deck

NVA Holdings will hold a lender call at 10 a.m. ET on Wednesday to launch a fungible $200 million add-on covenant-light first-lien term loan B-3 due Feb. 2, 2025, according to a market source.

Bank of America Merrill Lynch, RBC Capital Markets, Jefferies LLC and Nomura are leading the deal that will be used to fund acquisitions under signed letters of intent, to refinance revolver borrowings and to fund cash to the balance sheet for future acquisitions.

Additionally, the company is seeking an amendment to its existing credit agreement, which will require existing lender consents.

NVA is an Agoura Hills, Calif.-based owner of independent freestanding veterinary hospitals.

© 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.