United Pacific, Compuware free up; Accudyne, Travel Leaders deal revisions surface

By Sara Rosenberg

New York, Aug. 1 – United Pacific increased the size of its term loan and lowered the spread before making its way into the secondary market on Tuesday, and Compuware Corp. broke for trading as well.

In more happenings, Accudyne Industries finalized the spread on its term loan at the low side of guidance, added a step-down and tightened the original issue discount, and Travel Leaders Group LLC trimmed pricing on its term loan B debt.

Additionally, Shutterfly Inc., Zekelman Industries, Polyconcept, Constellis Holdings LLC, Navios Maritime Partners LP and Berry Plastics Corp. released price talk with launch.

Furthermore, Dimora Brands Inc., DXP Enterprises, Innoviva Inc., ATI Holdings Acquisition Inc., Russell Investments and P.F. Chang’s emerged with new deal plans.

United Pacific revised, breaks

United Pacific raised its seven-year first-lien term loan to $240 million from $230 million and cut pricing to Libor plus 400 basis points from Libor plus 450 bps, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s now $265 million of credit facilities (B1/B) also include a $25 million revolver.

Recommitments were due at noon ET on Tuesday and later in the day the term loan freed to trade with levels quoted at par bid, 101½ offered, another source said.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing bank debt, to fund a $110 million dividend, increased from $100 million due to the term loan upsizing, to add cash to the balance sheet and for general corporate purposes.

United Pacific is a seller of fuel and convenience items through its network of retail gas stations and a convenience store operator.

Compuware starts trading

Compuware’s fungible $220 million add-on first-lien term loan B-3 due Dec. 15, 2021 also hit the secondary market, with levels quoted at par 1/8 bid, par 5/8 offered, according to a market source.

The add-on term loan is priced at Libor plus 425 bps with a 1% Libor floor, in line with existing term loan pricing, and all of the debt is getting 101 soft call protection for six months. The new debt was issued at par.

On Monday, the add-on term loan was upsized from $200 million and the issue price was tightened from 99.75.

Jefferies LLC is leading the deal that will be used with balance sheet cash to pay down a portion of the company’s existing second-lien term loan at the 101 call premium.

Compuware is a Detroit-based technology performance company.

Accudyne updates surface

Back in the primary market, Accudyne Industries set pricing on its $825 million seven-year covenant-light first-lien term loan (B3) at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, added a step-down to Libor plus 350 bps at 0.75 times below closing net total leverage, and moved the original issue discount to 99.75 from 99.5, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Previously, the first-lien term loan was upsized from $705 million when the company cancelled plans for a $120 million eight-year covenant-light second-lien term loan that was talked at Libor plus 775 bps to 800 bps with a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

The company’s $975 million of senior secured credit facilities also include a $150 million five-year revolver.

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

Accudyne lead banks

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and RBC Capital Markets are leading Accudyne’s credit facilities.

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

Accudyne is a Dallas-based provider of precision engineered, process-critical and technologically advanced flow control systems and industrial compressors.

Travel Leaders cuts spread

Travel Leaders lowered pricing on its $100 million incremental senior secured covenant-light term loan B (B+) due Jan. 25, 2024 and repricing of its existing $433,912,500 senior secured covenant-light term loan B (B+) due Jan. 25, 2024 to Libor plus 450 bps from talk of Libor plus 475 bps, a market source said.

The term debt still has a 0% Libor floor and 101 soft call protection for six months, the incremental loan still has an original issue discount of 99.75 and the repricing is still offered at par.

Consents and commitments are due at 5 p.m. ET on Wednesday, moved up from noon ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc., UBS Investment Bank and J.P. Morgan Securities LLC are leading the deal.

The incremental term loan B will be used to fund certain merger and acquisition transactions and the repricing will take the existing term loan B down from Libor plus 525 bps with a 0% Libor floor.

Travel Leaders is a Plymouth, Minn.-based travel agency.

Shutterfly releases talk

Also in the primary market, Shutterfly held its lenders’ presentation in the morning and released price talk on its $500 million of senior secured credit facilities, a market source remarked.

Talk on the $200 million five-year revolver is Libor plus 175 bps with 0% Libor floor, and talk on the $300 million delayed-draw seven-year covenant-light term loan B is Libor plus 225 bps to 250 bps with a 0% Libor floor, an original issue discount of 99.5, 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, the source continued.

Commitments are due on Aug. 10.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp., MUFG, U.S. Bank and Wells Fargo Securities LLC are leading the deal that will be used for general corporate purposes including to refinance existing $300 million convertible notes due May 2018.

Shutterfly is a Redwood City, Calif.-based online retailer and manufacturer of high-quality personalized products and services.

Zekelman sets guidance

Zekelman Industries released price talk of Libor plus 275 bps to 300 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months on its $916 million first-lien term loan due June 2021 that launched with an afternoon call, according to a market source.

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

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

The soft call protection on the existing term loan rolls off on Aug. 9.

Zekelman Industries, formerly known as JMC Steel, is a Chicago-based manufacturer of industrial steel pipe and tubular products.

Polyconcept launches

Polyconcept held a lender call at 11 a.m. ET, launching a fungible $30 million add-on term loan B (B1/B) due August 2023 and a repricing of its existing $432 million term loan B (B1/B) due August 2023 at talk of Libor plus 475 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Aug. 8, the source added.

Goldman Sachs Bank USA, RBC Capital Markets and Natixis are leading the deal.

The add-on term loan will be used to fund cash to the balance sheet to support potential future tuck-in acquisitions and pay transaction-related fees and expenses, and the repricing will take the existing term loan down from Libor plus 525 bps with a 1% Libor floor.

Polyconcept is a supplier of decorated promotional products.

Constellis floats OID

Constellis came out with original issue discount talk of 99 on its $95 million incremental first-lien term loan due April 2024 a few hours before its afternoon lender call kicked off, according to a market source.

Like the existing term loan, pricing on the incremental term loan is Libor plus 500 bps with a 1% Libor floor and it has 101 soft call protection through April 2018.

Commitments are due on Aug. 8.

Credit Suisse Securities (USA) LLC, Barclays and Citigroup Global Markets Inc. are leading the deal that will fund the acquisition of Omniplex World Services Corp. from Altamont Capital Partners.

Closing is expected in August, subject to Defense Security Service review and other customary conditions.

Constellis is a Reston, Va.-based provider of operational support and risk management services to government and commercial clients. Omniplex is a Chantilly, Va.-based provider of protective and investigative services.

Navios terms emerge

Navios Maritime Partners launched on its call its $53 million incremental first-lien senior secured term loan B (B3/B+) due Sept. 14, 2020 at talk of Libor plus 500 bps with a 1% Libor floor, an original issue discount of 99 to 99.5 and call protection of 102 until September 2017 and 101 until June 2018, a market source remarked.

Consents/commitments are due at 10 a.m. ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to fund the acquisition of three vessels that will be contributed to the collateral packages.

Navios Maritime is a Monaco-based seaborne shipping and logistics company.

Berry Plastics repricing

Berry Plastics launched a repricing of its $1,645,000,000 covenant-light term loan I due October 2022 and its $499 million covenant-light term loan J due January 2024 at talk of Libor plus 225 bps with no floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due at 3 p.m. ET on Friday, the source added.

Wells Fargo Securities LLC is leading the repricing that will take the term loans down from Libor plus 250 bps with no floor.

Berry is an Evansville, Ind.-based provider of value-added plastic consumer packaging and engineered materials.

Internet Brands holds meeting

Internet Brands Inc. had its bank meeting on Tuesday to launch $1.69 billion in term loans but is waiting on ratings to announce spread and original issue discount talk, a market source remarked.

The debt is split between a $1.04 billion seven-year covenant-light first-lien term loan that has a 0% Libor floor and 101 soft call protection for six months and a $650 million eight-year covenant-light second-lien term loan that has a 0% Libor floor and call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on Aug. 15.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Citigroup Global Markets Inc., Bank of America Merrill Lynch and KKR Capital Markets LLC are leading the deal, with Credit Suisse the left lead on the first-lien loan and RBC the left lead on the second-lien loan.

Internet buying WebMD

Proceeds from Internet Brands’ new term loans will be used with equity to fund the acquisition of WebMD Health Corp. for $66.50 per share, or about $2.8 billion.

Closing is expected in the fourth quarter, subject to customary conditions.

Along with the new term loan debt, the company is seeking an amendment and extension of its existing first-lien term loan to make it fungible with the new tranche.

Internet Brands, a KKR portfolio company, is an El Segundo, Calif.-based provider of vertically focused online media and software services. WebMD is a New York-based provider of health information services.

Dimora readies deal

Dimora Brands emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Thursday to launch $320 million in term loans, according to a market source.

The debt is split between a $255 million seven-year covenant-light first-lien term loan that has 101 soft call protection for six months and a $65 million eight-year covenant-light second-lien term loan that has call protection of 102 in year one and 101 in year two, the source said.

Deutsche Bank Securities Inc., Antares Capital and Bank of Ireland are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

The company is owned by the Jordan Co.

Dimora, formerly known as Top Knobs, is a Dallas-based designer, distributor, and manufacturer of decorative and functional hardware as well as decorative wood and other products for the kitchen and bath industry.

DXP plans facilities

DXP Enterprises scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch $335 million of credit facilities, a market source said.

The facilities consist of a $250 million six-year senior secured term loan B and an $85 million five-year ABL revolver, the source added.

Goldman Sachs Bank USA is leading the deal that will be used to refinance existing debt and for general corporate purposes.

DXP is a Houston-based provider of technical products and services for MRO, OEM and capital equipment customers.

Innoviva on deck

Innoviva set a lenders’ presentation for 11 a.m. ET on Wednesday to launch a $250 million five-year covenant-light senior secured term loan B (Ba3) talked at Libor plus 475 bps to 500 bps with a 1% Libor floor, an original issue discount of 98 to 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due on Aug. 15, the source added.

Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are leading the deal that will be used to refinance the company’s 2029 non-recourse notes.

Innoviva is a Brisbane, Calif.-based biopharmaceutical company.

ATI coming soon

ATI Holdings scheduled a lender call for 10 a.m. ET on Wednesday to launch a repricing of its $758 million term loan B, a market source said.

Barclays is leading the deal.

ATI is a Bolingbrook, Ill.-based outpatient physical therapy provider.

Russell joins calendar

Russell Investments will hold a lender call at 11:30 a.m. ET on Wednesday to launch a repricing of its $843 million term loan B, according to a market source.

Barclays is leading the deal.

Russell Investments is a Seattle-based asset manager.

P.F. Chang’s refinancing

P.F. Chang’s scheduled a lender call for 2 p.m. ET on Wednesday to launch new credit facilities split between a revolver and a five-year first-lien term loan, a market source remarked.

Barclays, Deutsche Bank Securities Inc., KeyBanc Capital Markets and BMO Capital Markets are leading the deal that will be used to refinance existing bank debt.

Centerbridge Partners is the sponsor.

P.F. Chang’s is a Scottsdale, Ariz.-based restaurant company.

INC Research closes

In other news, INC Research Holdings Inc. completed its all-stock merger with inVentiv Health Inc., according to a news release.

With the transaction, INC Research got $3.1 billion of credit facilities (Ba2/BB+) consisting of a $500 million five-year revolver and a $1 billion five-year term loan A priced at Libor plus 175 bps, and a $1.6 billion seven-year covenant-light term loan B that were used to refinance existing debt.

Pricing on the B loan is Libor plus 225 bps with a 25 bps step-down at 3 times secured leverage and a 0% Libor floor. The debt was issued at 99.875 and has 101 soft call protection for six months.

During syndication, the term loan B was downsized from $1.85 billion as the term loan A was upsized from $750 million, and the discount was tightened from 99.75.

Credit Suisse Securities (USA) LLC, ING, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., PNC and Wells Fargo Securities LLC led the deal, with Credit Suisse left on the term B and ING left on the revolver and term A.

Raleigh, N.C.-based INC Research and Burlington, Mass.-based inVentiv are contract research organizations.

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