Sitel, Curia, Atlantic Broadband, McAfee break; Sovos, Alvogen, Webhelp revisions surface

By Sara Rosenberg

New York, July 28 – A couple of deals made their way into the secondary market on Wednesday, including Sitel Group, Curia Global Inc., Atlantic Broadband (Cogeco Financing 2 LP) and McAfee Enterprise/FireEye Products.

Meanwhile, in the primary market, Sovos Compliance LLC tightened the spread, Libor floor and original issue discount on its first-lien term loan, and Alvogen Pharma US Inc. increased the size of its incremental first-lien term loan.

Also, Webhelp SAS revised the step-downs on its U.S. and euro term loans, Veritext Corp. (VT TopCo Inc.) accelerated the commitment deadline for its term loans, and Cloudera Inc., Parexel, Eastman Tire Additives and Colibri disclosed price talk with launch.

In addition, Duravant LLC (Engineered Machinery Holdings Inc.), GEON Performance Solutions LLC, Western Dental (Premier Dental Services Inc.), Mariner Wealth Advisors and Sotheby’s joined this week’s primary calendar.

Sitel hits secondary

Sitel Group’s $1.4 billion seven-year covenant-lite term loan freed to trade on Wednesday, with levels quoted at 99 7/8 bid, par 3/8 offered in the afternoon, according to a trader.

Pricing on the U.S. term loan is Libor plus 375 basis points with a step-down to Libor plus 350 bps and a 0.5% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

The company is also getting a €1 billion seven-year covenant-lite term loan priced at Euribor plus 375 bps with a 0% floor and issued at a discount of 99.5. This tranche has 101 soft call protection for six months as well.

During syndication, pricing on the term loans (B1/BB-) firmed at the high end of the Libor/Euribor plus 350 bps to 375 bps talk, the step-down was added to the U.S. term loan, the discount on both loans was tightened from 99 and some changes were made to documentation.

Sitel funding acquisition

Proceeds from Sitel’s term loans will be used to help fund the roughly $2.2 billion acquisition of Sykes Enterprises Inc.

BNP Paribas Securities Corp. and Barclays are leading the debt.

Closing is expected this year, subject to Sykes’ shareholder approval and regulatory approval.

Sitel is a Miami-based provider of customer experience products and solutions. Sykes is a Tampa, Fla.-based provider of customer experience management services, multichannel demand generation and digital transformation.

Curia starts trading

Curia Global’s $1.19 billion first-lien term loan due Aug. 30, 2026 also made its way into the secondary market, with levels quoted at 99 5/8 bid, par 1/8 offered, a market source said.

Pricing on the first-lien term loan is Libor plus 375 bps with a 0.75% Libor floor, and the debt has 101 soft call protection for six months.

Of the total term loan amount, $350 million is incremental debt for the acquisitions of Integrity Bio Inc. and LakePharma and $840 million of debt will be used to amend and extend an existing roughly $630 million first-lien term loan and an existing roughly $210 million incremental first-lien term loan.

New money lenders were issued the first-lien loan at an original issue discount of 99.5 and consenting lenders were rolled into the new term loan at par.

During syndication, the first-lien term loan was upsized from a revised amount of $1.15 billion and an initial size of $310 million, pricing finalized at the high end of the Libor plus 350 bps to 375 bps talk, the discount for new money lenders was set at the tight end of the 99 to 99.5 talk, and the amendment and extension of the existing term loans was added to the transaction.

Curia getting second-lien

In addition to the first-lien term loan, Curia is getting a $300 million privately placed second-lien term loan, which was downsized from $340 million upon the second upsizing to the first-lien term loan.

Barclays is the left lead on the deal.

Under the amendment and extension, the existing term loan, currently priced at Libor plus 325 bps with a 1% Libor floor, and the existing incremental term loan, currently priced at Libor plus 350 bps with a 1% Libor floor, will be extended by two years from August 2024.

Closing on the acquisitions is anticipated in the third quarter, subject to customary conditions.

Curia, formerly known as Albany Molecular Research Inc., is an Albany-based contract research, development and manufacturing organization. Integrity Bio is a Camarillo, Calif.-based formulation and fill-finish organization. LakePharma is a biologics drug discovery, clinical research, development and manufacturing organization.

Atlantic Broadband breaks

Atlantic Broadband’s $900 million seven-year incremental senior secured first-lien term loan B (B1/BB) freed up as well, with levels quoted at par bid, par 3/8 offered, according to a market source.

Pricing on the term loan is Libor plus 250 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

During syndication, pricing on the term loan was reduced from Libor plus 275 bps and the discount was changed from 99.5.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, CIBC, BMO Capital Markets, BofA Securities Inc. and National Bank of Canada are leading the deal that will be used with cash on hand to fund the $1.125 billion acquisition of WideOpenWest Inc.’s broadband systems in Ohio and to pay fees and expenses.

Closing is targeted for the first quarter of fiscal 2022, subject to customary conditions.

Net debt to adjusted EBITDA is expected to be 5x.

Atlantic Broadband, a subsidiary of Cogeco Communications Inc., is a Quincy, Mass.-based cable operator.

McAfee tops OID

McAfee Enterprise/FireEye Products saw its fungible $925 million incremental first-lien term loan B (B2/B-) due 2028 break for trading, with levels quoted at 99 5/8 bid, 99 7/8 offered, a market source remarked.

Pricing on the incremental first-lien term loan is Libor plus 500 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.5.

During syndication, the discount on the first-lien term loan was set at the tight end of the 99 to 99.5 talk.

The company is also getting a fungible $175 million pre-placed second-lien term loan (Caa2/CCC+) priced at Libor plus 825 bps with a 0.75% Libor floor and issued at a discount of 99.

UBS Investment Bank, Jefferies LLC, BofA Securities Inc., HSBC Securities (USA) Inc. and KKR Capital Markets are leading the deal that will help fund the acquisition of FireEye Products by Symphony Technology Group for $1.2 billion from FireEye Inc., and combination of FireEye with McAfee Enterprise.

Closing is expected by the end of the fourth quarter, subject to regulatory approvals.

McAfee Enterprise is a provider of device-to-cloud cybersecurity solutions. FireEye Products is a provider of network, e-mail, endpoint and cloud security products.

Sovos flexes

Moving to the primary market, Sovos Compliance trimmed pricing on its $1.46 billion seven-year first-lien term loan (B3/B-), of which $215 million is delayed-draw, to Libor plus 450 bps from Libor plus 475 bps, cut the Libor floor to 0.5% from 0.75%, and changed the original issue discount to 99.75 from talk in the range of 99 to 99.5, according to a market source.

The term loan still has 101 soft call protection for one year, and a ticking of half the margin from days 61 to 90 and the full margin thereafter.

Recommitments are due at 10 a.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Mizuho, TD Securities (USA) LLC, Fifth Third and Nomura are leading the deal that will be used to refinance existing debt, finance acquisition activity and fund a shareholder distribution.

Sovos Compliance is a provider of indirect tax and regulatory compliance software.

Alvogen upsizes

Alvogen lifted its fungible senior secured incremental first-lien term loan due December 2023 to $160 million from $135 million, a market source remarked.

Pricing on the incremental term loan is Libor plus 525 bps with a 1% Libor floor, in line with existing term loan pricing, and the new debt is talked with an original issue discount of 96.25.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Jefferies LLC is leading the deal that will be used to refinance an existing term loan B due 2022 priced at Libor plus 475 bps with a 1% Libor floor and, as a result of the upsizing, to add cash to the balance sheet.

Alvogen is a Pine Brook, N.J., pharmaceutical company that specializes in developing, licensing, manufacturing, marketing and distributing niche, complex generic and branded products.

Webhelp tweaks deal

Webhelp changed the step-downs on its €580 million equivalent U.S. and euro seven-year senior secured incremental term loan B (B2), according to a market source.

The U.S. loan now has a 25 bps step-down at 4.5x leverage, versus a 25 bps step-down at 5x leverage and a 25 bps step-down at 4.5x leverage, and the euro loan now has a 25 bps step-down at 4.5x leverage and a 25 bps step-down at 4x leverage, revised from a 25 bps step-down at 5x leverage, a 25 bps step-down at 4.5x leverage and a 25 bps step-down at 4x leverage, the source said.

The step-downs on both term loans have a six months ratchet holiday.

Price talk on the U.S. term loan remained at Libor plus 375 bps to 400 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, and talk on the euro term loan remained at Euribor plus 375 bps to 400 bps with a 0% floor and a discount in the 99.5 area.

Included in the term loan debt is 101 soft call protection for six months on a repricing transaction.

The euro piece will not be fungible with the company’s existing euro loan and the U.S. piece is a new loan that is expected to be sized at a minimum of $350 million.

Webhelp buying OneLink

Proceeds from Webhelp’s term loan debt will be used to help fund the acquisition of OneLink Holdings from One Equity Partners, repay revolver borrowings, repay existing OneLink debt and pay transaction related fees and expenses.

Goldman Sachs and KKR Capital Markets are the mandated lead arrangers and bookrunners on the deal. Other bookrunners include HSBC and RBC.

Commitments continue to be due at 11 a.m. ET on Thursday.

Webhelp is a Paris-based provider of customer experience and business solutions. OneLink is a provider of business process outsourcing and customer relationship management solutions.

Veritext moves deadline

Veritext changed the commitment deadline for its non-fungible $400 million incremental first-lien term loan (B2/B) due August 2025, $70 million delayed-draw for 24 months first-lien term loan (B2/B) and non-fungible $200 million incremental second-lien term loan (Caa2/CCC+) due August 2026 to 10 a.m. ET on Friday from 5 p.m. ET on Monday, a market source said.

Price talk on the incremental first-lien term loan and delayed-draw term loan, which are being sold as a strip, is Libor plus 375 bps to 400 bps with a 0.75% Libor floor and an original issue discount of 99, and talk on the incremental second-lien term loan is Libor plus 700 bps with a 0.75% Libor floor and a discount of 98.5 to 99.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Delayed-draw ticking fees are half the margin from days 46 to 90 and the full margin thereafter.

Veritext getting revolver

Along with the first-and second-lien term loans, Veritext’s $725 million of credit facilities include a $55 million revolver (B2/B) due 2025.

Jefferies LLC, BNP Paribas Securities Corp. and Macquarie Capital (USA) Inc. are leading the deal.

Proceeds will be used to fund a distribution to shareholders, pay down the existing revolver balance and extend the existing revolver by two years to 2025.

Veritext is a Livingston, N.J.-based provider of deposition and litigation support solutions for law firms and corporations.

Cloudera guidance

Cloudera held its lender call on Wednesday morning and announced price talk on its $1.64 billion first-lien term loan (B2/B-) and $500 million second-lien term loan (Caa2/CCC), according to a market source.

Talk on the first-lien term loan is Libor plus 375 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, and talk on the second-lien term loan is Libor plus 625 bps to 650 bps with a 0.5% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $2.39 billion of senior secured credit facilities also include a $250 million revolver (B2/B-).

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

Cloudera lead banks

JPMorgan Chase Bank, BofA Securities Inc., KKR Capital Markets, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, BNP Paribas Securities Corp., Barclays, Citigroup Global Markets Inc., Credit Agricole, MUFG and Sumitomo are leading Cloudera’s credit facilities, with JPMorgan the left lead on the first-lien loan and BofA the left lead on the second-lien loan.

The new debt will be used with equity to fund the buyout of the company by Clayton, Dubilier & Rice and KKR for $16.00 in cash per share. The transaction is valued at $5.3 billion.

Closing is expected in the second half of this year, subject to customary conditions, including the approval of Cloudera shareholders and antitrust approval.

Cloudera is a Santa Clara, Calif.-based enterprise data cloud company.

Parexel sets talk

Parexel launched on its morning call its $2.7 billion seven-year first-lien term loan (B1/B) at talk of Libor plus 350 bps to 375 bps with two 25 bps leverage-based step-downs, a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

The term loan has a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due on Aug. 10, the source added.

The company’s $4.1 billion of credit facilities also include a $500 million revolver (B1/B) and a $900 million privately placed second-lien term loan.

Goldman Sachs Bank USA, Barclays, UBS Investment Bank, Jefferies LLC, BofA Securities Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., Morgan Stanley Senior Funding Inc., Mizuho and RBC Capital Markets are leading the deal that will be used to help fund the buyout of the company by EQT and Goldman Sachs Asset Management from Pamplona Capital Management LP for $8.5 billion.

Closing is subject to customary conditions, including receipt of regulatory approvals.

Parexel is a Durham, N.C.-based biopharmaceutical services company.

Eastman proposed terms

Eastman Tire Additives came out with talk of Libor plus 475 bps to 500 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $475 million seven-year term loan B (B2/B) that launched with a call in the morning, according to a market source.

Commitments are due at noon ET on Aug. 11, the source added.

RBC Capital Markets, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and Mizuho Bank are leading the deal, which will be used to help fund the buyout of the company by One Rock Capital Partners LLC from Eastman Chemical Co.

Closing is expected in the second half of this year, subject to regulatory approvals and customary conditions.

Eastman Tire is a supplier of tire additives.

Colibri launches

Colibri held its call at 11 a.m. ET and, prior to the call start, original issue discount talk of 98.5 emerged on its fungible $55 million add-on term loan B, a market source remarked.

Pricing on the add-on term loan is Libor plus 500 bps with a 0.75% Libor floor, in line with pricing on the company’s existing $350 million term loan B.

Commitments are due at noon ET on Aug. 4, the source added.

RBC Capital Markets is leading the deal that will be used to support an acquisition in the education space.

Gridiron Capital is the sponsor.

Colibri is a St. Louis-based provider of online learning solutions for professional education.

Duravant joins calendar

Duravant set a lender call for 11:30 a.m. ET on Thursday to launch $1.51 billion of term loans, according to a market source.

The debt is split between a $1.135 billion incremental first-lien term loan due May 21, 2028 and a fungible $375 million incremental second-lien term loan due May 21, 2029, the source said.

Included in the incremental first-lien term loan is 101 soft call protection for six months, and the incremental second-lien term loan has the same 102, 101 hard call protection as the existing second-lien loan.

Jefferies LLC is the left lead on the deal that will be used to refinance existing near-term maturities and fund a shareholder distribution.

Duravant is a Downers Grove, Ill.-based automation solutions company providing highly engineered equipment and related aftermarket parts and services.

GEON readies deal

GEON Performance Solutions scheduled a lender call for 10 a.m. ET on Thursday to launch $660 million of credit facilities (B2), a market source said.

The facilities consist of a $60 million five-year revolver and a $600 million seven-year term loan B.

Talk on the term loan is Libor plus 500 bps with a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, the source added.

Commitments are due at 5 p.m. ET on Aug. 10.

HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc. and KeyBanc Capital Markets are leading the deal that will be used with cash on hand to refinance existing debt and fund a one-time special distribution to shareholders.

GEON Performance is a Westlake, Ohio-based provider of plastic compounded solutions.

Western Dental on deck

Western Dental will hold a lender call at noon ET on Thursday to launch a $490 million seven-year term loan B (B-), according to a market source.

Commitments are due at noon ET on Aug. 12, the source added.

KKR Capital Markets is the left lead on the deal that will be used to refinance existing term loans.

Western Dental is an Orange, Calif.-based dental services organization.

Mariner coming soon

Mariner Wealth Advisors set a lender call for 10 a.m. ET on Thursday to launch a $400 million term loan, of which $100 million is delayed-draw, a market source remarked.

BMO Capital Markets, RBC Capital Markets and UBS Investment Bank are leading the deal that will be used to refinance existing debt and for acquisition financing.

Mariner Wealth Advisors is an investment advisor.

Sotheby’s plans call

Sotheby’s scheduled a lender call for 9 a.m. ET on Thursday to launch a $458 million term loan, according to a market source.

BNP Paribas Securities Corp. is leading the deal that will be used to reprice an existing term loan from Libor plus 475 bps with a 0.75% Libor floor.

Sotheby’s is a New York-based auction house.

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