Veeam Software frees to trade; Kissner Group, Invenergy, Micro Focus price talk emerges

By Sara Rosenberg

New York, Feb. 19 – Veeam Software tightened the issue price on its term loan B for a second time as the book was 3.5 times oversubscribed, and the debt made its way into the secondary market on Wednesday to trade above par.

In more happenings, Kissner Group Holdings LP (SCIH Salt Holdings Inc.) and Invenergy Thermal Operating I LLC released price talk with launch, and Micro Focus International plc, Bausch Health Americas Inc., Tosca Services LLC, Minimax Viking and Hornblower Holdings joined this week’s primary calendar.

Veeam tweaked, trades

Veeam Software changed the issue price on its $1.25 billion seven-year term loan B (B1/B-) to par from revised talk of 99.75 and initial talk of 99.5, a market source remarked.

As before, pricing on the term loan is Libor plus 325 basis points with a 25 bps step-down at 0.5x inside closing net first-lien leverage and a 0% Libor floor, and the debt has 101 soft call protection for six months.

Previously in syndication, the spread on the term loan was lowered from Libor plus 375 bps.

On Wednesday afternoon, the term loan B broke for trading and was quoted at par ¼ bid, par ¾ offered, a trader added.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Ares Management, BofA Securities, Inc., Golub Capital and Antares Capital provided the financing commitment that will be used to help fund the buyout of the company by Insight Partners.

Closing is expected this quarter.

Veeam Software is a provider of backup solutions that deliver cloud data management. The company is based in Baar, Switzerland, but will become a U.S. company with this transaction.

Kissner guidance

Kissner Group held its lender presentation on Wednesday and announced talk on its $900 million seven-year covenant-lite first-lien term loan B (B3/B) at Libor plus 450 bps with a 25 bps step-down at 0.5x inside closing date first-lien net leverage and a 25 bps step-down at 1x inside closing date first-lien net leverage, a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $1.225 billion of senior secured credit facilities also include a $125 million five-year revolver (B3/B) and a $200 million privately placed second-lien term loan.

Commitments are due at noon ET on March 4, the source said.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, BofA Securities, Inc., BMO Capital Markets, KKR Capital Markets and Citizens Bank are leading the deal that will be used to help fund the acquisition of Kissner by Stone Canyon Industries Holdings LLC from Metalmark Capital Holdings LLC and Silvertree-KMC II LP.

Kissner is an Overland Park, Kan.-based pure-play producer and supplier of salt.

Invenergy holds call

Invenergy emerged in the morning with plans to host a lender call at 3 p.m. ET to launch a roughly $390 million first-lien term loan due August 2025 talked at Libor plus 275 bps to 300 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Feb. 26, the source added.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps.

Invenergy is a Chicago-based operator of power generation facilities.

Micro Focus on deck

Micro Focus scheduled a lender call at 11 a.m. ET on Thursday to launch a $1.435 billion equivalent seven-year senior secured term loan B (B1) that is expected to include a minimum $500 million tranche and a minimum €500 million tranche, sources remarked.

The U.S. term loan is talked at Libor plus 375 bps to 400 bps with an original issue discount of 99, and the euro term loan is talked at Euribor plus 325 bps to 350 bps with a discount of 99.5. Both loans have 101 soft call protection for six months.

Commitments are due on March 3, sources added.

J.P. Morgan Securities LLC is the physical bookrunner. Citigroup Global Markets Inc., Barclays, HSBC, Royal Bank of Scotland, BofA Securities, Inc. and Goldman Sachs are mandated lead arrangers.

Proceeds will be used to refinance existing term loan B borrowings due November 2021.

The company is also looking to extend its existing $500 million revolver (B1) to June 2024 from September 2022.

Micro Focus is a Newbury, England-based enterprise software company.

Bausch refinancing

Bausch Health will hold a lender call at 10 a.m. ET on Thursday to launch a roughly $5.144 billion seven-year first-lien term loan B, a market source said.

Barclays and Citigroup Global Markets Inc. are leading the deal that will be used with new secured debt securities and cash on hand to refinance a term loan B due June 2025 and a term loan B due November 2025, to redeem in full the company’s 6.5% senior secured notes due 2022 and 7% senior secured notes due 2024, and to pay related fees, premiums and expenses.

Bausch is a Laval, Quebec-based specialty pharmaceutical and medical device company.

Tosca readies deal

Tosca Services is set to hold a bank meeting at 10 a.m. ET in New York on Thursday to launch a $325 million seven-year first-lien term loan (B), split between a $250 million funded tranche and a $75 million delayed-draw tranche, according to a market source.

The term loan has a 0% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due at noon ET on March 5.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, KKR Capital Markets, Rabobank and Goldman Sachs Bank USA are leading the deal that will be used to help fund the acquisition of Polymer Logistics, a ready packaging systems and technologies company, from private investors and to refinance existing debt.

With the transaction, funds advised by Apax Partners, which acquired Tosca in 2017, will commit additional capital to Tosca to help fund the acquisition of Polymer.

Tosca is an Atlanta-based provider of reusable packaging supply chain solutions.

Minimax joins calendar

Minimax Viking scheduled a lender call for 10 a.m. ET on Thursday to launch a $590 million covenant-lite term loan B (B1/B+) due July 2025 and a €506 million covenant-lite term loan B (B1/B+) due July 2025, a market source said.

The term loans have 101 soft call protection for six months, the source added.

Commitments are due at 5 p.m. ET on Feb. 26.

Deutsche Bank is leading the deal that will be used to reprice existing U.S. and euro term loans.

Minimax is a Bad Oldesloe, Germany-based fire protection company.

Hornblower coming soon

Hornblower Holdings will hold a lender call on Thursday to launch a fungible $25 million incremental term loan, according to a market source.

UBS Investment Bank is leading the deal that will be used to repay revolver borrowings.

Hornblower, a Crestview Partners portfolio company, is a San Francisco-based cruise and event company.

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