thyssenkrupp Elevator shifts funds between loans; RSA finalizes terms; MHS shops loan

By Sara Rosenberg

New York, June 29 – In the primary market on Monday, thyssenkrupp Elevator increased the size of its U.S. term loan B and cancelled plans for a term loan A.

Also, RSA revealed that it firmed the original issue discount on its first-lien term loan at the tight end of guidance and added a pricing step-down, and MHS Holdings Inc. came to market with an incremental term loan B.

thyssenkrupp retranches

thyssenkrupp Elevator lifted its U.S. seven-year first-lien term loan B (B1/B/B+) by €500 million equivalent to $2.815 billion and terminated plans for a €500 million term loan A, according to market sources.

The company is still getting a €1 billion euro seven-year first-lien term loan B (B1/B/B+).

Talk on the U.S. and euro term loans remained at Libor/Euribor plus 425 basis points with a 0% floor, an original issue discount of 96 to 97 and 101 soft call protection for one year.

Commitments continue to be due at 10 a.m. ET on Tuesday, the source added.

The company is also issuing $1.655 billion of senior secured notes, which were upsized by €250 million equivalent, €1 billion of senior secured notes, which were upsized by €250 million, €500 million of floating-rate notes, which were downsized by €500 million, about $440 million of senior notes and €650 million of senior notes for the transaction.

thyssenkrupp leads

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

The term loan B borrowings and notes will be used to help fund the buyout of the company by Advent International, Cinven and RAG-Stiftung.

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

thyssenkrupp Elevator is a Germany-based provider of elevator technology.

RSA updated

RSA set the original issue discount on its $1.05 billion seven-year covenant-lite first-lien term loan (B1/B/BB+) at 98, the tight end of the 97 to 98 talk, and added a spread step-down to Libor plus 475 bps at 0.5x inside closing date leverage, a market source remarked.

Initial pricing on the first-lien term loan remained at Libor plus 500 bps with a 1% Libor floor, and the debt still has 101 soft call protection for one year.

Allocations are expected on Tuesday, the source added.

The company’s $1.425 billion credit facilities also include a $75 million revolver (B1/B/BB+) and a $300 million second-lien term loan (Caa1/B-/B-) that was pre-placed with a Clearlake-led investor group.

Earlier this month, the first-lien term loan was upsized from $1 billion and the second-lien term loan was downsized from $350 million.

UBS Investment Bank, Jefferies LLC, Barclays and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by a consortium led by Symphony Technology Group, Ontario Teachers’ Pension Plan Board and AlpInvest Partners from Dell Technologies for $2.075 billion.

RSA is a provider of digital risk solutions.

MHS holds call

MHS Holdings emerged in the morning with plans to hold a lender call at 2 p.m. ET on Monday to launch a non-fungible $125 million incremental term loan B (B3) talked at Libor plus 625 bps with a 1% Libor floor, an original issue discount of 97 and 101 hard call protection for one year, a market source remarked.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

RBC Capital Markets is leading the deal that will be used to repay revolver borrowings.

Currently, the company has a roughly $615 million term loan B priced at Libor plus 500 bps with a 1% Libor floor.

MHS, a Thomas H. Lee Partners LP portfolio company, is a Louisville, Ky.-based provider of e-commerce infrastructure.

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