Tech Data, Carnival, Neenah free to trade; thyssenkrupp Elevator accelerates deadline

By Sara Rosenberg

New York, June 26 – Tech Data Corp. revised tranche sizes under its credit facilities and firmed the original issue discount on its FILO piece at the wide side of guidance before making its way into the secondary market on Friday.

Also, Carnival Corp. increased the size of its U.S. and euro term loan B and widened the spread, and Neenah Inc. reduced pricing on its term loan B and finalized the original issue discount at the tight end of talk, and then both of these deals broke for trading as well.

And, in other news, thyssenkrupp Elevator moved up the commitment deadline for its term loan B, and Mitchell International Inc. released price talk on its term loan in connection with its lender call.

Tech Data restructures

Tech Data upsized its five-year covenant-lite ABL term loan to $1.7 billion from $1.5 billion, and left pricing at Libor plus 350 basis points with a 0% Libor floor and an original issue discount of 98.5, according to a market source. Earlier in syndication, the discount on this tranche was tightened from talk in the range of 97 to 98.

In addition, the company downsized its five-year covenant-lite FILO ABL term loan to $370 million from $500 million and finalized the original issue discount at 96, the wide end of the 96 to 97 talk, the source said. This tranche remained priced at Libor plus 550 bps with a 0% Libor floor.

Also, the five-year ABL revolver was downsized to $2.8 billion from $3 billion.

As before, the ABL term loan has 101 soft call protection for six months, and the FILO term loan has 101 soft call protection for one year.

Recommitments for the now $4.87 billion of credit facilities, down from $5 billion, were due at 3:30 p.m. ET on Friday, the source continued.

Tech Data frees up

On Friday afternoon, Tech Data’s bank debt allocated and broke for trading, with the ABL term loan quoted at 98 7/8 bid, 99 3/8 offered and the FILO term loan quoted at 96 bid, 97 offered, another source added.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, RBC Capital Markets, Credit Suisse Securities (USA) LLC, MUFG, Mizuho, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., Nomura and PNC Capital Markets are leading the deal, with Citigroup left on the ABL term loan and JPMorgan left on the FILO term loan. Citigroup is the administrative agent.

The new debt will be used with equity to fund the buyout of the company by Apollo Global Management Inc. for $130 per share in a transaction with an enterprise value of $5.4 billion. The reduction in the FILO term loan amount is offset by untendered notes that will remain outstanding, the source added.

Lenders should be prepared for the transaction to close on June 30.

Tech Data is a Clearwater, Fla.-based distributor of IT products.

Carnival reworked, trades

Carnival raised its U.S. dollar and euro term loan B to roughly $2.76 billion equivalent from $1.5 billion equivalent and lifted pricing to Libor/Euribor plus 750 bps from talk in the range of Libor/Euribor plus 675 bps to 700 bps, a market source said.

The term loan tranche sizes finalized at $1.86 billion U.S. and €800 million euro, the source said. At launch, the euro tranche was described as a minimum of €500 million.

Also, the 50 bps MFN was changed to life from 12 months, the source continued.

The U.S. tranche still has a 1% Libor floor, the euro tranche still has a 0% floor, and both tranches still have an original issue discount of 96 and call protection of non-callable for one year then at 102 in year two.

In the afternoon, the U.S. term loan began trading and was quoted by one source at 97 bid, 97˝ offered.

J.P. Morgan Securities LLC, Goldman Sachs, BofA Securities, Inc., BNP Paribas Securities Corp., Lloyds, NatWest, Citigroup Global Markets Inc., Mizuho, Banca IMI, HSBC, Santander, Deutsche Bank Securities Inc., SMBC and Siebert are leading the deal that will be used for general corporate purposes.

Carnival, a Miami-based cruise line, expects to close on the loan on Tuesday.

Neenah flexes, breaks

Neenah trimmed pricing on its $200 million seven-year covenant-lite term loan B (Ba3/BBB-) to Libor plus 400 bps from talk in the range of Libor plus 425 bps to 450 bps and set the original issue discount at 98, the tight end of the 97 to 98 talk, according to a market source.

As before, the term loan has a 1% Libor floor and 101 soft call protection for one year.

After pricing finalized, the term loan freed to trade and levels were quoted at 99˝ bid, par offered, another source added.

J.P. Morgan Securities LLC, BofA Securities, Inc., BMO Capital Markets, Commerzbank and Goldman Sachs Bank USA are leading the deal that will be used to refinance $175 million of senior notes due May 2021.

Neenah is an Alpharetta, Ga.-based specialty materials company focused on premium niche markets that value performance and image.

thyssenkrupp revises timing

In more happenings, thyssenkrupp Elevator accelerated the commitment deadline for its €3.05 billion equivalent U.S. and euro seven-year first-lien term loan B (B1/B/B+) to 10 a.m. ET on Tuesday from 10 a.m. ET on Wednesday, a market source remarked.

Talk on the term loan is Libor/Euribor plus 425 bps with a 0% floor, an original issue discount of 96 to 97 and 101 soft call protection for one year.

Of the total term loan amount, about €2.05 billion equivalent will be in U.S. dollars and about €1 billion will be in euros.

Goldman Sachs Bank USA, UBS Investment Bank, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal, with Goldman the left lead on the U.S. loan and UBS the left lead on the euro loan.

Proceeds will be used to help fund the buyout of thyssenkrupp Elevator, a Germany-based provider of elevator technology, by Advent International, Cinven and RAG-Stiftung.

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

Mitchell sets guidance

Mitchell International held its lender call on Friday and announced talk on its non-fungible $675 million term loan (B2) due 2024 at Libor plus 425 bps with a 0.5% Libor floor, an original issue discount of 96 and 101 soft call protection for one year, according to a market source.

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

KKR Capital Markets is the left lead on the deal that will be used to fund an acquisition.

Mitchell is a San Diego-based provider of technology, connectivity and information solutions to the property and casualty claims, collision repair, workers’ compensation and pharmacy claims industries.

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