Xperi tweaks deal; Micro Focus revises deadline; AssuredPartners, Douglas Dynamics set talk

By Sara Rosenberg

New York, May 28 – Xperi Corp. widened original issue discount talk on its term loan B on Thursday, and Micro Focus International plc accelerated the commitment deadline for its U.S. and euro term loans.

In other news, AssuredPartners Inc. and Douglas Dynamics Inc. released price talk on their term loans in connection with their lender calls.

Xperi modified

Xperi revised original issue discount talk on its $1.1 billion covenant-lite term loan B (Ba3/BB-) to a range of 90 to 92 from 96, a market source said.

As before, pricing on the term loan is Libor plus 400 basis points with a 0% Libor floor.

Commitments are now due on June 1, the source added.

BofA Securities, Inc., RBC Capital Markets and Barclays are leading the deal that will be used to refinance Xperi’s debt and TiVo Corp.’s debt in connection with the merger of the two companies.

Xperi and TiVo have agreed to merge in an all-stock transaction, representing about $3 billion of combined enterprise value. The merger agreement provides for a 0.455 fixed exchange ratio.

Closing is expected in early June, subject to approval by the shareholders of each company and other customary conditions.

Xperi is a San Jose, Calif.-based licenser of technologies and intellectual property. TiVo is a San Jose, Calif.-based provider of technology and services for digital video recorders. The combined company will assume the Xperi name.

Micro Focus accelerated

Micro Focus moved up the commitment deadline for its $400 million five-year senior secured term loan B (B1//BB) to 5 p.m. ET on Thursday from 10 a.m. ET on Friday and on its €400 million five-year senior secured term loan B (B1//BB) to 5 a.m. ET on Friday from 10 a.m. ET on Friday, according to a source.

Price talk on the U.S. term loan is Libor plus 450 bps with a 1% Libor floor and an original issue discount of 95, and talk on the euro term loan is Euribor plus 450 bps with a 0% floor and a discount of 97. The term loans are non-callable for one year, then at 102 in year two.

J.P. Morgan Securities LLC is the lead on the deal. Joint bookrunners are HSBC, NatWest, Barclays, BofA Securities Inc. and Goldman Sachs.

Proceeds will be used to partly refinance an existing senior secured term loan B due November 2021 and pay associated fees and expenses.

Other funds for the refinancing will come from $150 million of cash on hand.

Micro Focus is a Newbury, England-based enterprise software company.

AssuredPartners guidance

AssuredPartners emerged in the morning with plans to hold a lender call at 11 a.m. ET to launch a non-fungible $300 million incremental first-lien term loan B due February 2027 talked at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 96 to 97, a market source remarked.

The term loan is non-callable for one year.

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

Barclays is the left bookrunner on the deal. BofA Securities Inc. is the administrative agent.

The new loan will be used to repay revolver borrowings and provide incremental liquidity.

AssuredPartners is a Lake Mary, Fla.-based provider of property and casualty and employee benefits insurance brokerage services.

Douglas talk emerges

Douglas Dynamics came out with talk of Libor plus 400 bps with a 1% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for one year on its $250 million term loan (B2/BB-) that launched with a call in the morning, according to a market source.

Commitments are due at noon ET on June 4, the source said.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan, repay some asset-based revolving credit facility borrowings and for general corporate purposes.

Douglas Dynamics is a Milwaukee-based manufacturer of vehicle attachments and equipment.

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