Vigor/MHI, Autodata, ADT price talk surfaces; primary calendar continues to build

By Sara Rosenberg

New York, Sept. 4 – In the primary market on Wednesday, Vigor Industrial/MHI Holdings and Autodata Group disclosed guidance on their term loans with launch, and ADT Inc. (Prime Security Services Borrower LLC) released price talk on its term loan B ahead of its upcoming lender call.

Also, Shutterfly Inc., Aldevron LLC, Extended Stay America Inc. (ESH Hospitality Inc.), PeroxyChem, Cerence Inc., Howden, Sensata Technologies Inc. and Autokiniton Global Group joined the near-term primary calendar.

Vigor/MHI proposed terms

Vigor Industrial/MHI Holdings held its bank meeting on Wednesday and announced talk on its $500 million seven-year term loan B (B) at Libor plus 475 basis points with an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Sept. 18, the source said.

BofA Securities, Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Citizens Bank and Mizuho are leading the deal, which will be used to help fund the buyout and merger of Vigor Industrial and MHI by the Carlyle Group and Stellex Capital Management.

Closing is expected by the end of the third quarter, subject to customary conditions.

Vigor, majority-owned by chief executive officer Frank Foti, is a provider of complex fabrication and ship repair services. MHI, owned by Stellex Capital, is a provider of full-range ship maintenance, repair and modernization services.

Autodata OID talk

Autodata came out with original issue discount talk of 98.5 on its fungible $755 million incremental first-lien term loan (//BB-) due May 2026 that launched with a morning bank meeting, a market source said.

The incremental term loan is priced at Libor plus 350 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Commitments are due at noon ET on Sept. 17, the source added.

The company is also getting a fungible $265 million privately placed incremental second-lien term loan due May 2027.

RBC Capital Markets, KKR Capital Markets, SunTrust Robinson Humphrey Inc. and UBS Investment Bank are leading the deal that will be used to fund a business combination.

Pro forma for the transaction, the first-lien term loan will total $1.155 billion and the second-lien term loan will total $415 million.

Autodata, a Thoma Bravo LLC portfolio company, is a London, Ont.-based provider of data, technology platforms and services to the automotive industry.

ADT discloses guidance

ADT is talking its $3.025 billion to $3.275 billion seven-year senior secured term loan B at Libor plus 300 bps to 325 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.

As previously reported, the loan will launch with a lender call at 11 a.m. ET on Thursday.

Commitments are due at noon ET on Sept. 13, the source said.

Barclays is leading the deal that will be used with $500 million to $750 million of first-lien senior secured notes to refinance an existing first-lien senior secured term loan due 2022 priced at Libor plus 275 bps with a 1% Libor floor and first-lien senior secured notes due 2020, and to pay associated fees, expenses and early call premiums.

ADT is a Boca Raton, Fla.-based provider of monitored security and interactive home and business automation solutions.

Shutterfly readies launch

Shutterfly emerged with plans to hold a bank meeting at 9:30 a.m. ET on Friday to launch $1.585 billion of senior secured credit facilities, according to a market source.

The facilities consist of a $300 million revolver and a $1.285 billion first-lien term loan B, the source said.

Barclays, Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets, Mizuho and UBS Investment Bank are leading the deal that will be used with $500 million of senior secured notes and equity to fund the buyout by Apollo Global Management LLC of Shutterfly for $51.00 per share in cash, or an enterprise value of about $2.7 billion, and the buyout of Snapfish LLC. Shutterfly and Snapfish will then be merged into one company.

Closing is expected by early in the fourth quarter, subject to customary conditions, including approval by Shutterfly stockholders and receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Shutterfly is a Redwood City, Calif.-based retailer and manufacturing platform for personalized products and communications. Snapfish is a San Francisco-based internet-based retailer of photography products.

Aldevron on deck

Aldevron set a lenders’ presentation for 10:30 a.m. ET in New York on Thursday to launch $865 million of senior secured first-lien credit facilities, a market source remarked.

The facilities consist of a $125 million revolver and a $740 million first-lien term loan B, the source added.

The company is also getting a $260 million second-lien term loan that has been previously privately placed.

Morgan Stanley Senior Funding Inc. is the left lead on the deal, which will be used to fund the acquisition of a majority interest in the company by EQT Partners AB and pay related fees and expenses. Existing private equity sponsor, TA Associates, will retain a minority stake in the company.

Closing is expected by year end, subject to regulatory conditions and approvals.

Aldevron is a Fargo, N.D.-based supplier of nucleic acids, proteins and antibodies.

Extended Stay plans call

Extended Stay will hold a lender call at 10 a.m. ET on Thursday to launch a $631 million seven-year covenant-lite term loan B that has a 0% Libor floor and 101 soft call protection for six months, according to a market source.

Deutsche Bank Securities Inc. is the left lead on the deal, which will be used to amend and extend $631 million of the company’s existing term loan B due 2023.

The remaining term loan B balance will be repaid by an expected issuance of $500 million of new unsecured notes.

Commitments from existing lenders are due at 5 p.m. ET on Tuesday and commitments from new lenders are due at noon ET on Sept. 11, the source added.

Extended Stay is a Charlotte, N.C.-based owner and operator of company-branded hotels.

PeroxyChem shops loan

PeroxyChem is holding a series of management meetings this week to launch $345 million of credit facilities, a market source said.

The facilities consist of a $30 million revolver and a $315 million first-lien term loan B, the source said.

Barclays is leading the deal that will be used to fund a one-time dividend to shareholders, repay existing debt, and pay related fees and expenses.

One Equity Partners is the sponsor.

PeroxyChem is a Philadelphia-based supplier of peroxygen and adjacent chemistries.

Cerence sets meeting

Cerence scheduled a bank meeting for 10:30 a.m. ET on Monday to launch $500 million of credit facilities, according to a market source.

The facilities consist of a $75 million revolver and a $425 million first-lien term loan B, the source said.

Barclays is the left lead on the deal that will help fund the spinoff of Nuance Communications Inc.’s automotive software business segment into a new, independent, publicly traded company named Cerence.

Cerence is a Burlington, Mass.-based builder or automotive cognitive assistance solutions to power natural and intuitive interactions between automobiles, drivers and passengers, and the broader digital world.

Howden coming soon

Howden will hold a bank meeting at 10:30 a.m. ET on Thursday to launch a $925 million seven-year term loan B, a market source remarked.

Commitments are due at noon ET on Sept. 19, the source added.

J.P. Morgan Securities LLC, Barclays, BNP Paribas Securities Corp., RBC Capital Markets and HSBC Securities (USA) Inc. provided the debt commitment that will be used with equity to fund the buyout of the company by KPS Capital Partners LP from Colfax Corp.

Howden is being bought for $1.8 billion, including $1.66 billion in cash consideration and $140 million in assumed liabilities and minority interest.

Closing is expected in the second half of this year, subject to customary conditions and approvals.

Howden is a Glasgow, Scotland-based provider of mission critical air and gas handling products and services to the industrial, power, oil & gas and mining industries.

Sensata amend/extend

Sensata Technologies set a lender call for 11 a.m. ET on Thursday to launch an amendment and extension of its existing $913,041,097 senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BofA Securities, Inc., Barclays, Mizuho Bank and RBC Capital Markets are leading the deal.

Sensata is a producer of sensors and controls for manufacturers in the automotive, appliance, aircraft, industrial and HVAC markets.

Autokiniton timing emerges

Autokiniton scheduled a bank meeting for noon ET on Monday in New York to launch its previously announced $525 million of senior secured credit facilities, a market source said.

The facilities consist of a $125 million incremental ABL revolver and a $400 million incremental first-lien term loan.

Goldman Sachs Bank USA, BofA Securities, Inc., Barclays, RBC Capital Markets and KKR Capital Markets are leading the debt that will be used with $267 million of equity to fund the acquisition of Tower International Inc. for $31.00 per share in cash. Including Tower’s debt and pension related liabilities, the total value of the transaction is about $900 million.

Closing is expected in September or October, subject to the tender of at least a majority of the outstanding shares of Tower common stock and regulatory approval.

Autokiniton, a portfolio company of KPS Capital Partners, is a New Boston, Mich.-based supplier of metal-formed components and complex assemblies to the automotive industry. Tower is a Livonia, Mich.-based manufacturer of engineered automotive structural metal components and assemblies.

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