WEX, Digital Room, Medallion Midland surface in secondary; Wall Street, Triple Point weaken

By Sara Rosenberg

New York, May 14 – WEX Inc.’s amended and extended term loan B freed up for trading on Tuesday above its original issue discount, and deals from Digital Room Holdings Inc. and Medallion Midland Acquisition LP broke as well.

Also, Wall Street Systems and Triple Point Technology saw their term loans head lower in the secondary market as parent company, ION Investment Group, withdrew its U.S. and euro term loans from the primary market.

In more happenings, MoneyGram International Inc. disclosed price talk with launch, and Aveanna Healthcare LLC joined this week’s new issue calendar.

WEX starts trading

WEX’s $1,468,000,000 covenant-lite term loan B due 2026 emerged in the secondary market on Tuesday, with levels quoted at 99 3/8 bid, 99 7/8 offered, a market source remarked.

Pricing on the term loan B is Libor plus 225 basis points with a 0% Libor floor, and it was sold at an original issue discount of 99.25. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1,318,000,000 and the discount firmed from in the 99.25 area.

Bank of America Merrill Lynch is the left lead on the deal that will be used to amend and extend an existing $1,318,000,000 term loan B due 2023 priced at Libor plus 225 bps with a 0% Libor floor.

WEX is a South Portland, Me.-based provider of corporate payment solutions.

Digital Room frees up

Digital Room’s credit facilities began trading, with the $280 million seven-year first-lien term loan (B2/B-) quoted at 98¾ bid, 99½ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 500 bps with a 0% Libor floor, and it was sold at an original issue discount of 98.5 The debt has 101 soft call protection for one year.

The company’s $395 million of credit facilities also include a $30 million revolver (B2/B-) and an $85 million eight-year second-lien term loan (Caa2/CCC).

The second-lien term loan is priced at Libor plus 900 bps with a 0% Libor floor and was issued at a discount of 98. This tranche has hard call protection of 102 in year one and 101 in year two.

Digital Room lead banks

KKR Capital Markets, BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are leading Digital Room’s credit facilities.

During syndication, pricing on the first-lien term loan firmed at the high end of the Libor plus 475 bps to 500 bps talk, the discount finalized at the wide end of the 98.5 to 99 talk, and the call protection was extended from six months. Additionally, pricing on the second-lien term loan was set at the high end of the Libor plus 875 bps to 900 bps talk.

Proceeds will be used for a dividend recapitalization.

H.I.G. Capital is the sponsor.

Digital Room is an e-commerce provider in the online short-run print market.

Medallion hits secondary

Medallion Midland’s fungible $50 million add-on first-lien term loan (B2/B+/BB) due Oct. 30, 2024 also broke, with levels seen at 98 7/8 bid, 99 3/8 offered, a market source said.

Pricing on the add-on term loan is Libor plus 325 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and the new debt was sold at an original issue discount of 98.79.

Jefferies LLC is leading the deal that will be used for general corporate purposes including the funding of capital expenditures associated with a recently executed commercial arrangement entered into with a Permian Midstream peer.

Closing is expected this week.

Medallion is an Irving, Texas-based privately-held crude oil gathering and intra-basin transportation system in the Midland Basin, within the eastern half of the prolific Permian Basin.

Wall Street/Triple Point fall

In more trading news, term loans from Wall Street Systems and Triple Point Technology softened during the session with news that parent company, ION Investment Group, pulled its $1.96 billion equivalent of U.S. and euro term loans (B3/B-) from syndication, a market source remarked.

The term loans were going to be used for the refinancing of ION’s corporates division, including Openlink Financial LLC, Wall Street Systems, Triple Point Technology and Allegro.

Wall Street Systems’ term loan was quoted at 96 bid, 97 offered, down from 98½ bid, 99½ offered, the source continued.

Triple Point’s first-lien term loan was quoted at 92 bid, 95 offered, down from 98 bid, 98¾ offered and its second-lien term loan was quoted at 87 bid, 93 offered, down from 93 bid, 98 offered.

Opnelink’s term loan was only lower on the offer side at 98¾ bid, 99¼ offered, versus 98¾ bid, 99¾ offered on Monday, the source added.

ION shelved deal

ION’s pulled debt was split between a $1.56 billion equivalent U.S. and euro seven-year term loan and a $400 million equivalent U.S. and euro four-year term loan,

Talk on the U.S. seven-year term loan was Libor plus 550 bps with a 0% Libor floor and an original issue discount of 98.5, talk on the euro seven-year term loan was Euribor plus 500 bps with a 1% floor and a discount of 98.5, talk on the U.S. four-year term loan was Libor plus 475 bps with a 0% Libor floor and a discount of 99, and talk on the euro four-year term loan was Euribor plus 425 bps with a 1% floor and a discount of 99. The term loans were also talked with 101 soft call protection for one year.

During the syndication attempt, the seven-year term loan was downsized from $2.2 billion equivalent, the four-year tranche was added, the call protection was extended from six months, amortization was increased and various other documentation changes were made.

UBS Investment Bank was leading the deal.

ION is a provider of mission-critical trading and workflow automation software solutions to financial institutions, central banks, governments and corporations.

MoneyGram sets talk

Moving to the primary market, MoneyGram launched with a bank meeting on Tuesday its $650 million to $675 million first-lien term loan (B2) due May 2023 at talk of Libor plus 550 bps with an original issue discount of 99 and 101 soft call protection for one year, according to market sources.

Prior to the meeting, there were whispers that the debt may be talked around the area of Libor plus 525 bps to 550 bps with a discount of 99.

Commitments are due on May 22, sources added.

Bank of America Merrill Lynch is leading the deal that will be used to amend and extend an existing first-lien term loan due March 2020.

There is about $900 million outstanding under the existing first-lien term loan, but the company will repay $245 million of the debt with proceeds from a $245 million senior secured second-lien term loan (Caa2/CCC+).

MoneyGram second-lien terms

As previously reported, MoneyGram’s second-lien term loan has an annual interest rate of 13%, a portion of which would be payable in kind at the company’s option, as well as provide for customary fees and an original issue discount.

Bank of America arranged the second-lien term loan. BPC Lending I LLC, an affiliate of Beach Point Capital Management, has committed to provide $200 million of the facility, and the Carlyle Group, or an affiliate, will also participate in a portion.

Closing on the second-lien loan is conditioned on the refinancing or extension of the existing senior secured revolver and first-lien term loan.

The second-lien loan would mature upon the earlier of six years after closing or 12 months following the maturity date of the refinanced or extended first-lien term loan.

Upon closing of the second-lien term loan, the company would issue warrants to the lenders representing 8% of outstanding common stock, assuming full conversion of the company’s series D participating convertible preferred stock.

MoneyGram is a Dallas-based money transfer company.

Aveanna on deck

Aveanna Healthcare set a lender call for 9:30 a.m. ET on Wednesday to launch a $485 million eight-year senior secured second-lien term loan that has a 1% Libor floor, a market source said.

Barclays is the left lead on the deal, which will be used to fund the acquisition of the home health care division of Maxim Healthcare Services and to reprice wider and extend an existing $240 million second-lien term loan.

Only the $245 million of incremental debt being raised will be offered with an original issue discount, the source added.

Closing on the acquisition is expected this quarter, subject to regulatory clearances and other customary conditions.

Bain Capital is the sponsor.

Aveanna Healthcare is an Atlanta-based home health care company.

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