Unitymedia, 24 Hour, Wyndham, Miller’s, Microchip, Visteon, Lumileds, Evans, Parts Town break

By Sara Rosenberg

New York, May 24 – Unitymedia Finance LLC increased the size of its term loan B and finalized the issue price at the tight side of talk, and 24 Hour Fitness Worldwide Inc. firmed pricing on its term loan B at the low end of talk, and then these deals made their way into the secondary market on Thursday.

Also, before freeing up for trading, Wyndham Worldwide Corp. (Wyndham Destinations Inc.) firmed the spread on its term loan at the low side of talk, and Miller’s Ale House Inc. firmed pricing on its term loan at the high end of talk and sweetened the call protection.

Other deals to break for trading during the session included Microchip Technology Inc., Visteon Corp., Lumileds (Bright Bidco BV), Evans Network of Cos. and Parts Town (PT Holdings LLC).

Back in the primary market, Advanced Computer Software reworked its term loan sizes and set the original issue discount on its U.S. tranche at the tight end of revised guidance, and JBS USA Lux SA set the spread on its incremental term loan at the low end of guidance and modified the original issue discount.

Additionally, Open Text Corp. and Atotech BV finalized issue prices on their loans at the tight end of talk, PODS LLC and Aramark Services Inc. disclosed price talk with launch, and Aleris International Inc., Yak Mat LLC and Goodpack (IBC Capital) surfaced with new deal plans.

Unitymedia tweaked, trades

Unitymedia raised its five-year covenant-light term loan E to $700 million from $600 million and firmed the original issue discount at 99.875, the tight end of the 99.75 to 99.875 talk, according to a market source.

The term loan is still priced at Libor plus 200 basis points with a 25 bps step-up after two years and a 0% Libor floor, and has 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Thursday and then the loan began trading with levels quoted at par bid, par ¼ offered, another source said.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to refinance €245 million 5 5/8% senior secured notes due 2023 and for general corporate purposes, and, because of the upsizing, to redeem some 4 5/8% notes due 2026 and 6¼% notes due 2029 with the 10% at 103 call feature, the source added.

Closing is expected in early June.

Unitymedia is a Germany-based provider of cable television, internet, fixed-line telephony and mobile services.

24 Hour sets spread, breaks

24 Hour Fitness finalized pricing on its $850 million seven-year covenant-light first-lien term loan B at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source remarked.

The company’s $970 million of senior secured credit facilities (Ba3/B+) also include a $120 million five-year revolver.

Commitments were due at noon ET on Thursday and by late day the loan freed to trade at par bid, par ½ offered, a trader added.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, RBC Capital Markets and Citizens Capital Markets are leading the deal that will be used to refinance existing debt, to backstop, cash collateralize and/or replace existing letters of credit and to pay fees and expenses.

Closing is expected on May 31.

24 Hour Fitness is a San Ramon, Calif.-based fitness-club operator.

Wyndham firms, frees up

Wyndham Worldwide finalized pricing on its $300 million seven-year covenant-light term loan (Ba2/BB-/BB+) at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, and kept the 0% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months intact, according to a market source.

The loan then broke for trading, with levels quoted at par bid, par ¾ offered, a trader said.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., Bank of Nova Scotia, MUFG and U.S. Bank are leading the deal that will be used to repay a portion of the company’s revolver borrowings.

Wyndham is a Parsippany, N.J.-based vacation ownership and exchange company.

Miller’s revised, trades

Miller’s Ale House finalized pricing on its $250 million seven-year first-lien term loan at Libor plus 475 bps, the high end of the Libor plus 450 bps to 475 bps talk, and extended the 101 soft call protection to one year from six months, according to a market source.

The term loan still has a 0% Libor floor and an original issue discount of 99.5.

The company’s $285 million of credit facilities (B3/B-) also include a $35 million revolver.

By late day, the term loan freed up and levels were quoted at par bid, par ½ offered, another source added.

Jefferies LLC, Barclays, KeyBanc Capital Markets, CapitalOne and Golub are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Closing is expected on Wednesday.

Miller’s Ale House is an Orlando, Fla.-based restaurant and sports bar chain.

Microchip levels surface

Microchip Technology’s $3 billion seven-year term loan B also began trading, with level seen at par ½ bid, par ¾ offered, a trader said.

The term loan is priced at Libor plus 200 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $2 billion, pricing was set at the low end of the Libor plus 200 bps to 225 bps talk and the issue price was revised from 99.75.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition of Microsemi Corp. for $68.78 per share in cash. The acquisition price represents a total equity value of about $8.35 billion and a total enterprise value of about $10.15 billion, after accounting for Microsemi’s cash and investments, net of debt, on its balance sheet at Dec. 31, 2017.

Microchip is a Chandler, Ariz.-based manufacturer of microcontroller, memory and analog semiconductors. Microsemi is an Aliso Viejo, Calif.-based provider of semiconductor solutions.

Visteon tops par

Visteon’s $350 million senior secured covenant-light term loan B due March 24, 2024 emerged in the secondary market as well, with levels quoted at par 3/8 bid, par 7/8 offered, a market source remarked.

Pricing on the term loan is Libor plus 175 bps with a 0% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

Citigroup Global Markets Inc., Bank of America Merrill Lynch and Sumitomo Mitsui Banking Corp. are leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor.

Closing is expected during the week of May 28.

Visteon is a Van Buren Township, Mich.-based designer and manufacturer of cockpit electronics products and connected car solutions for vehicle manufacturers.

Lumileds hits secondary

Lumileds’ $300 million incremental covenant-light term loan B (B1/B) due June 30, 2024 broke for trading during the session, with levels seen at par bid, par ½ offered, according to a trader.

Pricing on the incremental loan is Libor plus 350 bps with a 1% Libor floor, in line with existing term loan B pricing, and it was sold at an original issue discount of 99.75. All of the term loan B debt will get 101 soft call protection for six months.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, ING and Rabobank are leading the deal that will be used to pay a $150 million dividend and add cash to the balance sheet to fund potential future acquisitions or a dividend if acquisitions aren’t sourced in the next 18 months.

Including the incremental loan, the term loan B will total $1.68 billion.

With this transaction, the company sought an amendment to its existing credit agreement to allow for the dividend payment and lenders are getting a 25 bps amendment fee.

Closing is expected during the week of May 28.

Apollo is the sponsor.

Lumileds is a San Jose, Calif.-based supplier of LED components and automotive lighting.

Evans Network breaks

Evans Network of Cos. saw its $238.5 million seven-year covenant-light term loan and $24 million delayed-draw term loan hit the secondary market on Thursday, and levels were quoted at par bid, par ½ offered, a market source remarked.

Pricing on the term loan debt is Libor plus 425 bps with a step-down to Libor plus 400 bps when total net leverage is less than 4 times and a 0% Libor floor. The debt was sold at an original issue discount of 99.75. The delayed-draw loan has a two year drawdown period and an undrawn fee of 1% in year one and 1.5% in year two.

During syndication, the pricing step-down was added and the discount was modified from 99.5.

Antares Capital is leading the $262.5 million of first-lien term loans (B3/B) that will be used to refinance existing debt and fund a distribution to existing shareholders.

Closing is targeted for Wednesday.

Evans Network, a Calera Capital portfolio company, is a Schuylkill Haven, Pa.-based asset-light, tech-enabled service provider to operators in the logistics industry.

Parts Town starts trading

Parts Town’s fungible $73 million add-on first-lien term loan (B3/B-) due Dec. 7, 2024 freed to trade too, with levels quoted at 99¾ bid, par ¾ offered, a market source said.

Pricing on the add-on term loan is Libor plus 400 bps with a 1% Libor floor, in line with existing term loan pricing, and the debt was sold at an original issue discount of 99.75. The loan has 101 soft call protection for six months.

Jefferies LLC is leading the deal that will be used to fund the acquisition of the foodservice parts distribution and field service business assets of 3Wire Group and to add cash to the balance sheet.

Closing is expected on Friday.

Parts Town is an Addison, Ill.-based OEM parts distributor and service provider to the foodservice equipment market.

Advanced Computer modified

Returning to the primary market, Advanced Computer Software cut its U.S. covenant-light first-lien term loan due May 31, 2024 to $325 million from $341 million and lifted its GBP covenant-light first-lien term loan due May 31, 2024 to £282 million from £244 million, according to a market source.

Also, the original issue discount on the U.S. term loan was set at 99.75, the tight end of revised talk of 99.5 to 99.75 and tighter than original talk in the range of 99 to 99.5, the source said.

The U.S. term loan is priced at Libor plus 475 bps with a 0% Libor floor, after flexing earlier in syndication from talk in the range of Libor plus 500 bps to 525 bps.

Pricing on the GBP term loan remained at Libor plus 475 bps with a 0% Libor floor and a discount of 99.5.

Both term loans still have 101 soft call protection for six months.

The company’s senior secured credit facilities also include a $50 million five-year revolver.

Advanced Computer leads

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading Advanced Computer’s credit facilities.

Recommitments were due at 2:30 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance and extend existing first-lien debt and refinance existing second-lien debt.

Advanced Computer is a U.K.-based provider of software and IT services.

JBS updated

JBS USA finalized pricing on its $450 million incremental term loan (Ba3) due Oct. 30, 2022 at Libor plus 250 bps, the low end of the Libor plus 250 bps to 275 bps talk, and changed the original issue discount to 99.04 from 99, according to a market source.

As before, the incremental loan has a 0.75% Libor floor and 101 soft call protection for six months.

Barclays is the sole lead arranger on the deal and a bookrunner with BMO Capital Markets Corp., RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and U.S. Bank.

Commitments were due at noon ET on Thursday, the source said.

Proceeds will be used to repay revolver borrowings and for general corporate purposes.

Existing lenders must approve an amendment request in order for the 101 soft call protection for six months to apply to the existing term loan too, the source added.

JBS is a Greeley, Colo.-based animal protein products processing company.

Open Text firms

Open Text set the issue price on its $1 billion seven-year term loan B (BBB-) at par, the tight end of the 99.75 to par talk, a market source remarked.

The term loan is still priced at Libor plus 175 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Barclays is the left lead on the deal that will be used to refinance an existing term loan B and revolver borrowings.

Open Text is a Waterloo, Ont.-based software provider of business-to-business cloud integration services.

Atotech finalized

Atotech firmed the issue price on its $200 million add-on term loan B (B1/B) due Jan. 31, 2024 at par, the tight end of the 99.75 to par talk, and left pricing at Libor plus 300 bps with a 1% Libor floor, a market source said.

Barclays and J.P. Morgan Securities LLC are leading the deal that will be used with $300 million of five-year senior PIK toggle notes to fund a distribution to shareholders and to pay related fees and expenses.

Atotech is a Berlin-based manufacturer of specialty plating chemicals and equipment.

PODS reveals talk

In more primary happenings, PODS held its lender call on Thursday, launching its $60 million incremental senior secured covenant-light term loan B (B+) due Nov. 21, 2024 and repricing of its existing $781,075,000 senior secured covenant-light term loan B (B+) due Nov. 21, 2024 at talk of Libor plus 275 bps with a 1% Libor floor and 101 soft call protection for six months, according to a market source.

The incremental loan is talked with an original issue discount of 99.5 to 99.75 and the repricing is offered at par, the source said.

Commitments/consents are due at noon ET on May 31.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal.

The incremental loan will be used to support franchise acquisitions, repay revolving credit facility borrowings and pay related fees and expenses, and the repricing will take the existing term loan down from Libor plus 300 bps with a 1% Libor floor.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Aramark repricing

Aramark Services launched in the morning a $1,781,000,000 covenant-light first-lien term loan due March 2025 talked at Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on May 31, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan due March 2025 down from Libor plus 200 bps with a leverage-based step-down to Libor plus 175 bps and a 0% Libor floor.

Aramark is a Philadelphia-based professional services company that provides food, hospitality and facility management services as well as uniform and work apparel.

Aleris readies loan

Aleris International set a bank meeting for 10 a.m. ET in New York on Tuesday to launch a $1.1 billion covenant-light first-lien term loan due February 2023 that has 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on June 8, the source said.

Deutsche Bank Securities Inc. is the left lead on the deal.

Along with the first-lien term loan, the company plans on raising $400 million of new senior secured second-lien debt financing and amending its existing asset-based revolver to increase the commitments to up to $750 million from $600 million and extend the maturity to 2023 from 2020, Aleris revealed in an 8-K filed with the Securities and Exchange Commission.

The new debt and cash on hand will be used to redeem 7 7/8% senior notes due 2020 and 9½% senior secured notes due 2021, and to repay some ABL facility borrowings.

Aleris is a Cleveland-based manufacturer and seller of aluminum rolled products.

Yak Mat on deck

Yak Mat scheduled a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch $850 million in term loans, split between a $650 million first-lien term loan B due 2025 and a $200 million second-lien term loan due 2026, a market source remarked.

Commitments are due on June 13, the source added.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Citigroup Global Markets Inc. and Nomura are leading the deal, with JPMorgan the left lead on the first-lien loan and Bank of America the left lead on the second-lien loan.

Proceeds will be used to help fund Platinum Equity’s acquisition of a 50.1% stake in the company.

Yak Mat is an East Columbia, Miss.-based specialty equipment leasing and logistics company focused on temporary access solutions to remote construction sites and energy infrastructure.

Goodpack joins calendar

Goodpack will hold a lender call at 10 a.m. ET on Tuesday to launch $765 million in senior secured term loans, according to a market source.

The debt consists of a $595 million first-lien term loan and a $170 million second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing debt and pay down revolver borrowings.

Goodpack is a Singapore-based operator of a fleet of nestable and collapsible intermediate bulk containers.

© 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.