CommerceHub, Flexera, PointClickCare break; KIK Consumer, DXP Enterprises tweak deals

By Sara Rosenberg

New York, Dec. 16 – CommerceHub Inc. lowered spreads and tightened original issue discounts on its first-and second-lien term loans, and then the debt made its way into the secondary market late in the session on Wednesday.

Also, Flexera Software LLC firmed the issue price on its incremental first-lien term loan at the tight end of revised guidance before freeing up for trading, and PointClickCare’s first-lien term loan B broke as well.

In more happenings, KIK Consumer Products (Kronos Acquisition Holdings Inc.) lowered the spread on its term loan B, trimmed the Libor floor and revised the original issue discount.

Furthermore, DXP Enterprises Inc. reduced pricing on its first-lien term loan B and modified the issue price, Lakeview Loan Servicing LLC downsized its funded term loan A, and ExamWorks LLC approached lenders with an add-on term loan B.

CommerceHub revised

CommerceHub trimmed pricing on its $530 million seven-year covenant-lite first-lien term loan B (B2/B) to Libor plus 400 basis points from talk in the range of Libor plus 425 bps to 450 bps, added a 25 bps step-down at 1x turn of delevering and changed the original issue discount to 99.5 from 99, according to a market source.

The company also lowered pricing on its $210 million eight-year covenant-lite second-lien term loan (Caa2/CCC) to Libor plus 700 bps from Libor plus 775 bps and adjusted the discount to 99.5 from 98.5, the source said.

As before, the first-lien term loan has a 0.75% Libor floor and 101 soft call protection for six months, and the second-lien term loan has a 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $790 million of senior secured credit facilities include a $50 million five-year revolver (B2/B) as well.

CommerceHub frees up

Commitments from CommerceHub’s credit facilities were due at noon ET on Wednesday and the debt began trading later in the day, with the first-lien term loan quoted at 99¾ bid, par ½ offered and the second-lien term loan quoted at par bid, 101 offered, another source added.

Morgan Stanley Senior Funding Inc. and Jefferies LLC are leading the deal that will be used to finance the sale of just under 50% of the company to Insight Partners by existing sponsors GTCR and Sycamore Partners.

Closing is expected in late December.

CommerceHub is an Albany, N.Y.-based provider of e-commerce solutions for enterprise retailers and brands.

Flexera updated

Flexera Software set the original issue discount on its fungible $285 million incremental first-lien term loan (B1/B-) due January 2028 at 99.75, the tight end of revised talk of 99.5 to 99.75 and tight of initial talk of 99, a market source remarked.

Pricing on the incremental term loan and extended roughly $1.099 billion first-lien term loan due January 2028 is Libor plus 375 bps with a 25 bps step-down at 5x first-lien net leverage and a 0.75% Libor floor. Consenting lenders to the extension are rolling at par and receiving a 25 bps extension fee. The debt has 101 soft call protection for six months.

Also, the first-lien term loan has a ticking fee of half the margin from days 61 through 90 and the full margin thereafter.

Previously in syndication, pricing on the incremental term loan was lowered from talk in the range of Libor plus 400 bps to 425 bps, and the request was added to extend the existing first-lien term loan from February 2025. Pricing on the existing term loan is being changed from Libor plus 350 bps with a 1% Libor floor with the extension.

Flexera hits secondary

Late in the day, Flexera’s incremental term loan broke for trading and levels were quoted at 99 7/8 bid, par 3/8 offered, another source added. The incremental term loan and the extended term loan will trade as a strip upon funding.

The company is also getting a $65 million revolver (B1/B-) due February 2025, and a $260 million privately placed second-lien term loan due December 2028 that has hard call protection of 102 in year one and 101 in year two.

Jefferies LLC, BofA Securities Inc., Barclays, UBS Investment Bank, Truist and Mizuho are leading the deal.

The new debt will be used to fund the majority acquisition of the company by Thoma Bravo and will supplement the existing portable first-lien term loan.

Flexera is an Itasca, Ill.-based provider of software that allows software publishers, intelligent device manufacturers and software buyers to install, track, monitor and manage application usage to optimize utilization.

PointClickCare breaks

PointClickCare’s $450 million seven-year first-lien term loan B (B1/B+) freed to trade too, with levels quoted at 99¾ bid, par ¼ offered, a market source said.

Pricing on the term loan is Libor plus 300 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan was reduced from talk in the range of Libor plus 325 bps to 350 bps and the discount was changed from 99.

J.P. Morgan Securities LLC is leading the deal that will be used to fund an acquisition and for general corporate purposes.

PointClickCare is a Mississauga, Ont.-based electronic health record technology partner to the long-term post-acute care and senior care industry.

KIK changes emerge

In other news, KIK Consumer Products reduced pricing on its $775 million six-year senior secured first-lien term loan B (B2) to Libor plus 450 bps from talk in the range of Libor plus 475 bps to 500 bps, changed the Libor floor to 0.75% from 1% and adjusted the original issue discount to 99 from 98.5, a market source said.

The term loan still has 101 soft call protection for six months.

Commitments continue to be due at noon ET on Thursday, the source added.

Barclays is leading the deal that will be used with $600 million of senior secured notes and $525 million of senior unsecured notes to repay existing term loans and senior notes and to fund a shareholder distribution.

KIK is a manufacturer and distributor of household cleaning, pool sanitation and automotive performance chemicals.

DXP flexes

DXP Enterprises cut the spread on its $330 million seven-year first-lien term loan B (B2/B) to Libor plus 475 bps from talk in the range of Libor plus 500 bps to 525 bps, revised the original issue discount to 98.75 from 98.5 and made some changes to documentation, a market source remarked.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Wednesday, the source added.

Goldman Sachs Bank USA, BMO Capital Markets, Stephens and BofA Securities Inc. are leading the deal that will be used to refinance the company’s existing capital structure and add cash to its balance sheet.

DXP is a Houston-based provider of maintenance, repair, operating products, equipment and services to energy and industrial customers.

Lakeview downsizes A

Lakeview Loan Servicing scaled back its funded five-year term loan A to $700 million from $780 million, according to a market source.

Pricing on the funded term loan A and on a fungible $100 million incremental delayed-draw term loan A, size unchanged, is still Libor plus 300 bps with a 0.5% Libor floor and a 25 bps fee.

As reported earlier, the Coral Gables, Fla.-based mortgage finance company is also getting a $275 million 5.5-year term loan B priced at Libor plus 375 bps with a 0.5% Libor floor and an original issue discount of 99.5. This tranche was downsized during syndication from $294.8 million, a three-tier pricing grid was eliminated and the maturity was shortened from seven years.

The term loan B allocated late Tuesday, while final terms on the term loan A debt were not available until Wednesday, the source added.

M&T Bank is the left lead on the deal that will be used to extend from October 2022 an existing term loan B currently priced at Libor plus 325 bps with a 0.5% Libor floor, extend from April 2022 an existing term loan A currently priced at Libor plus 300 bps with a 0.5% Libor floor, and the delayed-draw term loan will be used for the acquisition of mortgage servicing rights.

ExamWorks launches

ExamWorks came to market with a fungible $125 million add-on term loan B due July 2023 talked at an original issue discount of 99.52 and revised the discount to 99.75 later in the day, a market source said.

Like the existing term loan B, the add-on term loan is priced at Libor plus 325 bps with a 1% Libor floor.

Commitments were due at 3 p.m. ET on Wednesday, the source added.

BofA Securities Inc. is leading the deal that will be used to fund the acquisition of Sedgwick’s group health peer review and independent medical examination assets.

ExamWorks is an Atlanta-based provider of independent medical examinations, peer reviews, bill reviews, Medicare compliance, case management, record retrieval, document management and related services.

© 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.