II-VI, WideOpenWest, Southwestern, Cowen, Kodiak break; multiple deal updates surface

By Sara Rosenberg

New York, Dec. 8 – II-VI Inc. changed the Libor floor on its term loan B and finalized the original issue discount at the wide end of talk, WideOpenWest Finance LLC (WOW!) set the original issue discount on its first-lien term loan B at the tight end of guidance, and Southwestern Energy Co. lowered pricing on its term loan and revised the original issue discount, and then these deals freed to trade on Wednesday.

Also, Cowen Inc. firmed the issue price on its incremental first-lien term loan B at the tight end of talk before breaking for trading, and Kodiak Building Partners’ add-on term loan B hit the secondary market as well.

In more happenings, Mediaocean increased its first-lien term loan size, set pricing at the narrow side of guidance and removed one leverage-based step-down, US Radiology Specialists Inc. lifted the spread on its incremental first-lien term loan and repriced first-lien term loan, and updated the original issue discount on the incremental piece, Installed Building Products Inc. finalized pricing on its term loan B at the low end of guidance, and Cloudmed upsized its incremental first-lien term loan B and adjusted the original issue discount.

Furthermore, Davis-Standard widened spread, Libor floor and issue price on its first-lien term loan B, and sweetened the call protection, Ingenovis Health increased the size of its add-on term loan, OEConnection LLC modified the original issue discount on its incremental first-lien term loan, and FullBloom accelerated the commitment deadline for its term loan B.

Additionally, FleetCor Technologies Inc., WCG Purchaser Corp., Yahoo and Camping World Holdings Inc. announced price talk with launch, and Fairbanks Morse Defense (Arcline FM Holding LLC) surfaced with new deal plans.

II-VI tweaked, trades

II-VI revised the Libor floor on its $2.8 billion seven-year term loan B to 0.5% from 0% and set the original issue discount at 99, the wide end of the 99 to 99.5 talk, according to a market source.

Pricing on the term loan B remained at Libor plus 275 basis points, and the debt still has 101 soft call protection for six months.

Recommitments were due at 10 a.m. ET on Wednesday and the term loan B broke later in the day, with levels quoted at 99½ bid, par offered, another source added.

The company’s $4 billion of senior secured credit facilities (Ba2/BB-/BBB-) also include a $350 million revolver and an $850 million term loan A.

JPMorgan Chase Bank, Citigroup Global Markets Inc., MUFG, PNC Bank, HSBC Securities (USA) Inc., Citizens Bank, Mizuho, BMO Capital Markets, TD Securities (USA) LLC and First National Bank are leading the deal that will be used with $990 million of senior notes and equity to fund the acquisition of Coherent Inc. for $220 in cash and 0.91 of a share of II-VI’s common stock for each Coherent share, and refinance existing debt.

Closing is expected this quarter, subject to customary conditions.

II-VI is a Saxonburg, Pa.-based manufacturer of engineered materials and optoelectronic components. Coherent is a Santa Clara, Calif.-based provider of lasers and laser-based technology.

WOW finalized, frees

WideOpenWest firmed the original issue discount on its $730 million covenant-lite first-lien term loan B due December 2028 (B1/BB) at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

Pricing on the term loan remained at SOFR plus 300 bps with no CSA and a 0.5% floor, and the debt still has 101 soft call protection for six months.

Late in the day, the term loan B made its way into the secondary market, with levels quoted at 99 7/8 bid, par 3/8 offered, a trader added.

Morgan Stanley Senior Funding Inc., KeyBanc Capital Markets, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Regions Bank, Wells Fargo Securities LLC and M&T Bank are leading the deal that will be used to refinance an existing term loan B and pay related fees and expenses.

Closing is expected on Dec. 15.

WideOpenWest is an Englewood, Colo.-based broadband services provider.

Southwestern modified, breaks

Southwestern Energy trimmed pricing on its $550 million 5.5-year term loan (Baa2/BBB-/BBB-) to SOFR+CSA plus 250 bps from SOFR+CSA plus 275 bps to 300 bps and changed the original issue discount to 99.75 from 99.5, a market source remarked.

As before, the term loan has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday and the term loan freed to trade later in the day, with levels quoted at par bid, par ½ offered, another source added.

JPMorgan Chase Bank, BofA Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets and Wells Fargo Securities LLC are leading the deal that will be used with $1.15 billion of senior notes to help fund the acquisition of GEP Haynesville LLC, a The Woodlands, Tex.-based energy company, for $1.325 billion in cash and about $525 million in Southwestern common shares.

Closing is expected this year, subject to regulatory approvals and customary conditions.

Southwestern Energy is a Spring, Tex.-based producer of natural gas and natural gas liquids.

Cowen sets OID, frees up

Cowen firmed the original issue discount on its fungible $150 million senior secured incremental covenant-lite first-lien term loan B due March 24, 2028 (B1/BB-) at 99, the tight end of the 98.56 to 99 talk, according to a market source.

Pricing on the incremental term loan is Libor plus 325 bps with a 0.75% Libor floor, and the incremental and existing term loan are getting 101 soft call protection for six months.

In the afternoon, the incremental term loan began trading, with levels quoted at 99½ bid, par offered, a trader added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to help fund the acquisition of Portico Capital Advisors, a provider of financial advisory services, and for general corporate purposes.

Closing is expected on Dec. 15.

Pro forma for the transaction, the first-lien term loan will total $447.75 million.

Cowen is a New York-based diversified financial services firm.

Kodiak hits secondary

Kodiak Building Partners’ fungible $210 million add-on term loan B freed to trade during the session, with levels quoted at 99½ bid, par ¼ offered, a trader said.

Pricing on the add-on term loan is Libor plus 325 bps with a 0.75% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 98.56. The add-on and existing term loan are getting 101 soft call protection for six months.

RBC Capital Markets is the left lead on the deal that will be used to fund a shareholder distribution.

Pro forma for the transaction, the term loan B totals about $767 million.

Kodiak Building is a Highlands Ranch, Colo.-based building products distribution platform and provider of fabrication and assembly services.

Mediaocean revised

In other news, Mediaocean upsized its seven-year first-lien term loan to $925 million from $875 million, finalized pricing at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, and removed one of the two 25 bps leverage-based step-downs, according to a market source.

The first-lien term loan still has a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments are due at noon ET on Thursday, with allocations expected thereafter, the source added.

The company is also getting a $125 million pre-placed second-lien term loan.

Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used to help fund the buyout of the company by CVC Capital Partners and TA Associates from Vista Equity Partners and, due to the upsizing, to add cash to the balance sheet.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Mediaocean is a New York-based omnichannel advertising platform.

US Radiology reworked

US Radiology Specialists widened pricing on its fungible $450 million incremental first-lien term loan and repricing of its existing roughly $784 million first-lien term loan due Dec. 15, 2027 to Libor plus 525 bps from Libor plus 475 bps, a market source remarked.

Also, the original issue discount on the incremental term loan was tightened to 99.25 from 99, the source continued.

As before, the term loan debt (B3/B-) has a 0.5% Libor floor and 101 soft call protection for six months, and the repricing is offered at par.

Recommitments are due at noon ET on Thursday, the source added.

Barclays, Capital One, Deutsche Bank Securities Inc. and Fifth Third are leading the deal.

The incremental term loan will be used to fund the acquisition of Alpine and repay revolver borrowings, and the repricing will take the existing term loan down from Libor plus 550 bps with a 0.75% Libor floor.

US Radiology is a Raleigh, N.C.-based radiology group.

Installed Building updated

Installed Building set the spread on its $500 million seven-year term loan B (Ba2/BB+) at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk, according to a market source.

The term loan still has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments continued to be due at 5 p.m. ET on Wednesday, the source added.

RBC Capital Markets is the left lead on the deal that will be used to refinance an existing $200 million term loan B due April 2025 as well as for acquisitions, other growth initiatives and general corporate purposes.

Closing is expected this month.

Installed Building Products is a Columbus, Ohio-based installer of insulation and complementary building products.

Cloudmed changes emerge

Cloudmed raised its fungible incremental first-lien term loan B due Oct. 15, 2027 (B3/B-) to $240 million from $213 million and revised the original issue discount to 99.5 from 99, a market source said.

Pricing on the incremental term loan is Libor plus 425 bps with a 0.5% Libor floor, in line with the existing term loan, and the debt has 101 soft call protection for six months.

Recommitments were due at the close of business on Wednesday and allocations are expected on Thursday, the source added.

Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the acquisition of par8o, a revenue integrity company.

Cloudmed, formerly known as Revint, is an Atlanta-based provider of end-to-end revenue integrity solutions that identify and recover unidentified or underpaid revenue on behalf of health care systems.

Davis-Standard revised

Davis-Standard raised pricing on its $285 million seven-year covenant-lite first-lien term loan B (B2/B) to Libor plus 575 bps from talk in the range of Libor plus 500 bps to 525 bps, changed the Libor floor to 0.75% from 0.5% and adjusted the original issue discount to 98 from 99, according to a market source.

In addition, the call protection was modified to a 101 hard call for one year from a 101 soft call for six months and amortization was changed to 5% per annum, the source said.

Recommitments are due at 5 p.m. ET on Thursday.

BMO Capital Markets and Stifel are leading the deal that will be used to help fund the buyout of the company by Gamut Capital.

Davis-Standard is a Pawcatuck, Conn., designer, developer and distributor of extrusion and converting technology.

Ingenovis upsized

Ingenovis Health raised its fungible add-on covenant-lite term loan due March 2028 to $150 million from $100 million, a market source remarked.

Pricing on the add-on term loan is Libor plus 375 bps with a 0.75% Libor floor, which matches existing term loan pricing, and the new debt has an original issue discount talk of 99.75.

Commitments were due at 5 p.m. ET on Wednesday and allocations are targeted for Thursday, the source added.

Citizens Bank and UBS Investment Bank are leading the deal that will be used to fund the acquisition of HealthCare Support, an Orlando, Fla.-based health care staffing platform.

Closing is expected in the first quarter of 2022, subject to regulatory approvals and other customary conditions.

Ingenovis is a tech-enabled platform for health care staffing backed by private investment firms Cornell Capital and Trilantic North America.

OEConnection tightened

OEConnection changed the original issue discount on its fungible $120 million incremental first-lien term loan to 99.25 from 99.03, according to a market source.

Pricing on the incremental first-lien term loan is Libor plus 400 bps with no floor, in line with the existing term loan.

Antares Capital is leading the deal that will be used with a $120 million pre-placed incremental second-lien term loan and a $100 million pre-placed PIK preferred to fund the acquisition of Opstrax, a provider of OEM/aftermarket parts procurement and logistics software.

Genstar is the sponsor.

Pro forma for the transaction, the first-lien term loan will total $723 million.

OEConnection is a Cleveland-based provider of SaaS solutions that help drive genuine OE parts sales and services across the entire automotive system.

FullBloom accelerated

FullBloom moved up the commitment deadline for its $385 million term loan B due 2028 (B2/B-) to 5 p.m. ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

Talk on the term loan is SOFR+CSA plus 425 bps to 450 bps with a 0.75% floor, an original issue discount of 99 and 101 soft call protection for six months. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

JPMorgan Chase Bank, Jefferies LLC, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by American Securities.

FullBloom is a provider of special education, instructional intervention, behavioral health and professional development solutions.

FleetCor guidance

FleetCor Technologies held its lender call in the morning and announced original issue discount talk of 98.55 on its fungible $1 billion add-on term loan B due April 2028, a market source said.

Pricing on the add-on term loan is Libor plus 175 basis points with a 0% Libor floor, and the debt has 101 soft call protection for six months.

Commitments are due at noon ET on Dec. 15, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to repay revolver borrowings and for general corporate purposes, including acquisitions and potential share repurchases.

FleetCor is an Atlanta-based business payments company.

WCG reveals talk

WCG Purchaser came out with original issue discount talk of 99 to 99.5 on its fungible $200 million incremental first-lien term loan due Jan. 8, 2027 that launched with a call in the morning, according to a market source.

Like the existing term loan, the incremental term loan is priced at Libor plus 400 bps with a 1% Libor floor.

Commitments are due at noon ET on Dec. 15, the source added.

Barclays is the left lead on the deal, which will be used to repay revolver borrowings, fund cash to the balance sheet, and pay fees, expenses and original issue discount.

WCG is Princeton, N.J.-based provider of clinical trial optimization solutions.

Yahoo holds call

Yahoo held a lender call at 10:30 a.m. ET, launching $300 million of fungible add-on term loans talked with an original issue discount of 99 to 99.5, a market source remarked.

Pricing on the add-on term loan debt is Libor plus 550 bps with a 0.75% Libor floor.

The add-on term loans will be added to the company’s term loan B-1 and high-yield style term loan B-2, with the split of how much will be added to each tranche still to be determined.

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

RBC and Apollo Global Funding are leading the deal that will be used for general corporate purposes.

Yahoo is a technology and media company comprised of brands such as Yahoo and AOL.

Camping World launches

Camping World launched on a noon ET call a fungible $300 million incremental term loan B (Ba3/BB-) due June 2028 talked with an original issue discount of 98.56 to 99, according to a market source.

Pricing on the incremental term loan is Libor plus 250 bps with a 0.75% Libor floor, in line with existing term loan pricing, and all of the debt is getting 101 soft call protection for six months.

Commitments are due at noon ET on Dec. 15, the source added.

Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used for general corporate purposes, including adding cash to balance sheet to fund future acquisitions.

Camping World is a Lincolnshire, Ill.-based retailer of recreational vehicles and related products and services.

Fairbanks readies deal

Fairbanks Morse Defense will hold a bank meeting at 1 p.m. ET on Thursday to launch $280 million of incremental term loans, a market source said.

The debt is split between a fungible $240 million incremental first-lien term loan due June 23, 2028 talked with an original issue discount of 99 to 99.5, and a fungible $40 million incremental second-lien term loan due June 23, 2029 talked with a discount of 98.5 to 99, the source continued.

Pricing on the incremental first-lien term loan is Libor plus 475 bps with a 0.75% Libor floor and pricing on the incremental second-lien term loan is Libor plus 825 bps with a 0.75% Libor floor.

Commitments are due at 5 p.m. ET on Dec. 17, the source added.

Jefferies LLC is leading the deal that will fund an acquisition and pay down ABL facility borrowings.

Pro forma for the transaction, the first-lien term loan will total $985 million and the second-lien term loan will total $252.5 million.

Fairbanks Morse Defense is a Beloit, Wis.-based provider of propulsion systems, ancillary power, motors and controllers for the U.S. Navy and U.S. Coast Guard, and provider of associated parts and maintenance 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.