Five Star revises commitment deadline; Syniverse, Montana Renewables disclose price talk

By Sara Rosenberg

New York, April 25 – In the primary market on Monday, Five Star Holding Corp. moved up the commitment deadline for its first-lien term loan, and Syniverse Holdings LLC and Montana Renewables LLC released price talk with launch.

Furthermore, Gaming Capital Group (GCG Holdings LLC) emerged with plans to bring a new term loan B to market.

Five Star tweaks timing

Five Star Holding accelerated the commitment deadline for its $630 million seven-year first-lien term loan (B2/B) to noon ET on Wednesday from noon ET on Thursday, a market source remarked.

Talk on the first-lien term loan is SOFR plus 450 basis points with 25 bps step-downs at 0.5x and 0.75x inside closing date first-lien net leverage, a 0.5% floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months.

The company is also getting a $250 million privately placed second-lien term loan (Caa2/CCC+).

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Neuberger Berman, Credit Suisse Securities (USA) LLC and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by The Jordan Co. and pay related fees and expenses.

Closing is expected in May.

Five Star is a Houston-based integrated flexible packaging company.

Syniverse proposed terms

Syniverse held its lender call on Monday afternoon and announced price talk on its $1.025 billion seven-year term loan (B3/B-) at SOFR plus 500 bps to 525 bps with a 0.5% floor and an original issue discount of 97, according to a market source.

The term loan has an ESG step-down of 7.5 bps subject to outlined KPI. The spread steps back up by 7.5 bps if the company fails to meet the KPI metric, the source continued.

In addition, the term loan has 101 soft call protection for six months and no CSA.

Commitments are due at noon ET on May 5, the source added.

Barclays, Goldman Sachs Bank USA, Mizuho, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and Societe Generale are leading the deal.

Syniverse refinancing

Syniverse will use the new term loan with preferred equity and an equity investment from Twilio Inc. to refinance its existing capital structure. Twilio, a cloud communications platform, has agreed to invest up to $750 million in the company.

Upon completion of the transaction, the Carlyle Group will maintain its majority interest in Syniverse.

Closing is expected in Syniverse’s fiscal second-quarter 2022.

Syniverse is a Tampa, Fla.-based provider of technology and business services for the telecommunications industry.

Montana Renewables talk

Montana Renewables launched on a 1:30 p.m. ET lender call a $500 million five-year green term loan B (B) talked at SOFR+CSA plus 775 bps with a 0.75% floor and an original issue discount of 98, a market source said.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan is non-callable for one year.

Commitments are due at noon ET on May 10, the source added.

BofA Securities Inc. is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Montana Renewables, an unrestricted subsidiary of Calumet Specialty Products Partners LP, is a Great Falls, Mont.-based renewable diesel project.

Gaming Capital on deck

Gaming Capital set a lender call for 10 a.m. ET on Tuesday to launch a $450 million seven-year covenant-lite term loan B, according to a market source.

The term loan has 101 soft call protectiaon for six months.

Commitments are due at noon ET May 5, the source added.

Wells Fargo Securities LLC, Goldman Sachs Bank USA, US Bank, PNC and NV State Bank are leading the deal that will be used to refinance existing debt and consolidate ownership by performing buyouts of various GCG entities.

Gaming Capital is a Newcastle, Okla.-based provider of class II and class III electronic gaming machines to tribal and commercial casinos in the Oklahoma market.

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