Technimark frees to trade; AIS HoldCo changes surface; Boyd accelerates deadline

By Sara Rosenberg

New York, Aug. 6 – Technimark LLC trimmed the spread, added a step-down and tightened the original issue discount on its term loan before the debt made its way into the secondary on Monday. Meanwhile two Bid Wanted In Competitions hit the market.

In more happenings, AIS HoldCo LLC (Affinion Insurance Solutions) revised pricing on its first-lien term loan, added a step-up and made a number of documentation changes, and Boyd Corp. moved up the commitment deadline on its term loans.

Furthermore, Penn National Gaming Inc., Del Frisco’s Restaurant Group Inc., Travel Leaders Group LLC and Leidos Innovations Corp. released price talk with launch and Bay Club (Bulldog Purchaser Inc.), Cypress Semiconductor Corp. and Hoffmaster Group Inc. joined this week’s primary calendar.

Technimark revised, trades

Technimark cut pricing on its $275 million seven-year covenant-light term loan to Libor plus 375 basis points from Libor plus 400 bps, added a step-down to Libor plus 350 bps at the earlier of corporate credit ratings of B2/B or less than 4 times total net leverage and moved the original issue discount to 99.875 from 99.5, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

The company’s $325 million of credit facilities also include a $50 million five-year revolver priced at Libor plus 375 bps with a step-down to Libor plus 350 bps at the earlier of corporate credit ratings of B2/B or less than 4 times total net leverage and a 0% Libor floor.

On Monday afternoon, the term loan freed to trade and levels were quoted at par 1/8 bid, par 5/8 offered, the source added.

Antares Capital and Credit Suisse Securities (USA) LLC are leading the deal that will be used to refinance existing debt.

Closing is expected on Wednesday.

Technimark, a PPC Partners portfolio company, is an Asheboro, N.C.-based manufacturer of high-value injection-molded components.

BWICs surface

Also in trading, a $956.6 million BWIC was announced, with bids due at 11:30 a.m. ET on Tuesday, and a $339.6 million BWIC emerged, with bids due at 10:30 a.m. ET on Wednesday, traders remarked.

The $956.6 million BWIC includes such names as Acosta Inc., Bay Club, DAE Aviation, First Data Corp., Hillman Group Inc., Invenergy Thermal Operating I LLC, Misys Ltd., One Call Medical Inc., Solera LLC, Tibco Software Inc. and WMG Acquisition Corp. There are about 215 issuers in the portfolio.

Some of the names in the $339.6 million BWIC are Atkore International Inc., CSC Holdings LLC, Epicor Software Corp., Golden Nugget Inc., Las Vegas Sands LLC, NCI Building Systems Inc., Solenis International LP, TransDigm Inc. and Zekelman Industries Inc. There are about 127 issuers in this portfolio, traders added.

AIS tweaks deal

Back in the primary market, AIS HoldCo updated pricing on its $315 million seven-year first-lien term loan (B2/B) to Libor plus 500 bps, from talk in the range of Libor plus 475 bps to 500 bps talk, and added a step-up to Libor plus 600 bps if ratings are downgraded by either agency to CCC, according to a market source.

Additionally, amortization on the first-lien term loan was changed to 2.5% in years one, two and three, 5% in years four and five, and 7.5% per annum thereafter, and the excess cash flow sweep was revised to 75% stepping down to 50% at 4 times total net leverage.

Furthermore, the incremental was set at $25 million, with the EBITDA grower removed, plus unlimited at 4.25 times first-lien net leverage, unlimited investments were set at 4.75 times total net leverage, restricted payments were updated to unlimited at total net leverage no greater than 4.5 times and the available amount started basket was set at $15 million, the source said.

The first-lien term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

AIS being acquired

Proceeds from AIS HoldCo’ $450 million of credit facilities, which also include a $25 million revolver (B2/B) and a $110 million eight-year second-lien term loan (Caa2/CCC+), will be used to help fund its buyout by Mill Point Capital from Affinion Group LLC.

Talk on the second-lien term loan was unchanged at Libor plus 875 bps with a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

Commitments are still due on Thursday, the source added.

Jefferies LLC is leading the deal.

Closing on the buyout is expected in the third quarter.

AIS is a Franklin, Tenn.-based business services platform with expertise in the distribution, marketing and administration of a broad range of simplified, guaranteed-issue insurance products.

Boyd accelerated

Boyd moved up the commitment deadline on its $1.2 billion seven-year covenant-light first-lien term loan (B2/B-) and $415 million eight-year covenant-light second-lien term loan (Caa2/CCC+) to 5 p.m. ET on Friday from Aug. 14, according to a market source.

Talk on the first-lien term loan is Libor plus 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps to 775 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

The term loans have a ticking fee of half the margin from days 31 to 60 and the full margin onwards.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, RBC Capital Markets, Barclays, Citigroup Global Markets Inc., UBS Investment Bank, KeyBanc Capital Markets, Societe Generale and ING Capital are leading the $1,615,000,000 of term loans, with Goldman left on the first-lien loan and JPMorgan left on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by Goldman Sachs Merchant Banking from Genstar Capital.

Boyd is a Pleasanton, Calif.-based provider of highly engineered thermal management and environmental sealing solutions.

Penn National details

In more primary news, Penn National Gaming held its bank meeting on Monday and launched an $820 million seven-year term loan B (Ba2/BB) talked at Libor plus 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 spread from days 31 to 60 and the full spread thereafter, a market source said.

Commitments are due at noon ET on Aug. 14, the source added.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Fifth Third Bank, U.S. Bank, Wells Fargo Securities LLC, Citizens Bank, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC are leading the deal that will be used with internally generated cash and asset sale proceeds to help fund the acquisition of Pinnacle Entertainment Inc. for $20 in cash and 0.42 of a share of Penn National common stock for each Pinnacle share. The transaction is valued at about $2.8 billion.

Closing is expected in the second half of 2018, subject to regulatory approvals and customary conditions.

Penn National is a Wyomissing, Pa.-based owner and manager of gaming and racing facilities and video gaming terminal operations. Pinnacle is a Las Vegas-based owner and operator of gaming entertainment properties.

Del Frisco’s guidance

Del Frisco’s Restaurant Group launched with its meeting its $292 million term loan B at talk of Libor plus 475 bps to 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

Commitments are due at noon ET on Aug. 16.

J.P. Morgan Securities LLC and Citizens Bank are leading the deal that will be used to refinance debt used for the company’s recent acquisition of Barteca Restaurant Group, a Norwalk, Conn.-based restaurant company.

Del Frisco’s is an Irving, Texas-based restaurant company.

Travel Leaders guidance

Travel Leaders Group released talk of Libor plus 400 bps with a 25 bps step-down upon a qualified initial public offering, a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $628,573,375 senior secured covenant-light term loan B due Jan. 25, 2024 that launched with an afternoon call, according to a market source.

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

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance an existing $528,573,375 senior secured term loan B and fund the acquisition of Bonotel Exclusive Travel.

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

Leidos comes to market

Leidos Innovations launched without a call in the morning $2,759,300,000 of senior secured credit facilities, a market source said.

The facilities consist of a $750 million revolver, a $635 million term loan A, a $265.4 million term loan A-5 and a $1,108,900,000 covenant-light term loan B due Aug. 22, 2025 talked at Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, the source continued.

Citigroup Global Markets Inc. is leading the deal that will amend and extend existing credit facilities. The term loan B is being extended by two years.

Under the amendment, the permitted receivables covenant will be revised to provide clarification and allow the program to go up to a maximum of $400 million versus $100 million currently, the senior secured leverage ratio will be changed to provide for the ability to net cash up to $350 million and the leverage ratio will be modified to a net leverage ratio with the ability to net cash up to $350 million, the source added.

Existing term loan B lender commitments are due at noon ET on Aug. 14, new lender commitments are due at noon ET on Aug. 15 and closing is targeted for Aug. 22.

Leidos is a Reston, Va.-based provider of technology and sector expertise to customers in national security, health and engineering.

Bay Club on deck

Bay Club will hold a lender presentation at 11 a.m. ET on Tuesday to launch $765 million of senior secured credit facilities, according to a market source.

The facilities consist of a $50 million revolver, a $340 million first-lien term loan, a $185 million delayed-draw first-lien term loan, a $125 million second-lien term loan and a $65 million delayed-draw second-lien term loan, the source said.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Jefferies LLC and KKR Capital Markets LLC are leading the deal that will be used to fund the buyout of the company by KKR from York Capital Management and minority investors.

Bay Club is a San Francisco-based active lifestyle and hospitality company.

Cypress joins calendar

Cypress Semiconductor emerged with plans to hold a lender call at 4 p.m. ET on Tuesday to launch a repricing of its existing $503.8 million senior secured term loan B, a market source remarked.

Morgan Stanley Senior Funding Inc., Barclays, SunTrust Robinson Humphrey Inc. and Fifth Third Bank are leading the deal.

Cypress is a San Jose, Calif.-based semiconductor manufacturer.

Hoffmaster readies loan

Hoffmaster Group set a lender call for Tuesday to launch a fungible $37 million incremental term loan B, according to a market source.

RBC Capital Markets is leading the deal that will be used to repay revolver borrowings used to fund the acquisition of Aardvark Straws.

Hoffmaster is an Oshkosh, Wis.-based producer of specialty disposable tabletop products.

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