Go Daddy breaks, trades higher; Compass Group sets pricing; cash loans, LCDX both end softer

By Paul A. Harris

Portland, Ore., Sept. 28 - Cash loans were unchanged to slightly weaker during a quiet Wednesday session, traders said. Sealed Air Corp.'s seven-year term loan B, which bears interest at Libor plus 375 basis points, however, was continuing to hold in at par ¼ bid, par ½ offered, according to a trader.

The $790 million deal priced at 98 on Sept. 23.

Go Daddy Group Inc.'s $750 million term loan priced at 93. The deal broke to 94 bid, 95 offered, according to a syndicate source.

Later, a trader saw Go Daddy as high as 95¼ bid, 96¼ offered.

Recently minted loans, structured according to the volatile market dynamics, which came into play during the late summer and continue to hold sway, are outperforming legacy paper in the secondary market, the trader commented.

The LCDX 16 bank loan index traded down 5/8 of a point in terms of price, ending the session at 92 7/16 bid, 93 offered, according to a hedge fund manager.

And Compass Group Diversified Holdings LLC set pricing for its $500 million first-lien secured credit facility at a Wednesday bank meeting.

The $275 million five-year revolver is talked at Libor plus 350 basis points.

The $225 million six-year last-out term loan B is talked at Libor plus 525 bps to 550 bps with a 1.5% Libor floor. The term loan is expected to come at an original issue discount of 97 to 98.

Go Daddy goes up

Go Daddy Group's $750 million term loan came in at Libor plus 575 bps and was seen as high as 95¼ bid, 96¼ offered on Wednesday afternoon, a bank loan trader said.

The deal priced on top of discount talk, which had steepened from earlier talk of 96.

The Libor spread also came atop spread talk, which had been set at the rich end of earlier guidance of Libor plus 550 bps to 575 bps.

The company's $825 million credit facility (Ba3/B) also includes a $75 million revolver that will be undrawn at close.

Barclays Capital Inc., Deutsche Bank Securities, Inc., RBC Capital Markets LLC and KKR Capital Markets are leading the deal.

Proceeds will be used to fund a strategic investment and partnership with KKR, Silver Lake and Technology Crossover Ventures.

Other funds for the transaction will come from $300 million of unsecured notes already placed and $1.3 billion of equity.

Go Daddy is a Scottsdale, Ariz.-based provider of web hosting and domain names.

Compass Group sets pricing

Compass Group's $500 million first-lien secured facility had TD Securities (USA) LLC as the bookrunner on the deal and a joint lead arranger with BMO Capital Markets Corp. and SunTrust Robinson Humphrey Inc.

Proceeds will be used to refinance existing debt, to make acquisitions and for working capital and general corporate purposes.

Current corporate ratings for the company are Ba3 from Moody's Investors Service and BB- from Standard & Poor's.

Compass Group is a Westport, Conn.-based investment firm specializing in acquiring controlling stakes in small- to middle-market companies.

Valeant sets Oct. 5 deadline

Valeant Pharmaceuticals International Inc. set an Oct. 5 deadline for investors to commit to its $1.7 billion 41/2-year senior secured credit facility, according to a market source.

The deal is talked at Libor plus 250 basis points to 300 bps, based on leverage.

Specifically, if leverage is 3.25 times or less, pricing is Libor plus 250 bps, if leverage is more than 3.25 times but less than or equal to 4.0 times, pricing is Libor plus 275 bps and if leverage is greater than 4.0 times, pricing is Libor plus 300 bps.

The facility consists of a $200 million revolver, a $1 billion term loan A and a $500 million delayed-draw term loan A.

The delayed-draw loan has a 50 bps unused fee.

All tranches are being sold as a strip.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing senior secured credit facility debt.

Valeant Pharmaceuticals is a Mississauga, Ont.-based specialty pharmaceutical company that primarily focuses on the areas of neurology, dermatology and branded generics.

© 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.