Ankura, Sorenson, Cross, Ahlstrom, Pitney, Cowen break; EyeSouth, Avast, Garda revised

By Sara Rosenberg

New York, March 12 – Ankura Consulting Group LLC upsized its second-lien term loan, and Sorenson Communications LLC set the spread on its first-lien term loan at the low end of talk, added a step-down and modified the original issue discount, and then these deals freed up for trading on Friday.

Also, before breaking for trading, Cross Insurance firmed pricing on its first-lien term loan B debt at the tight side of guidance and adjusted the issue price, and Ahlstrom-Munksjo finalized pricing on its U.S. term loan at the low end of talk, added a step-down and revised the original issue discount.

Additionally, Pitney Bowes Inc. upsized its term loan and reduced the spread ahead of freeing to trade, and Cowen Inc.’s first-lien term loan B surfaced in the secondary market as well.

In more happenings, EyeSouth Partners (SCP Eye Care Services LLC) modified the issue price on its first-lien term loan debt and added a leverage-based pricing step-down, Avast Software firmed U.S. and euro tranche sizes, trimmed pricing and set the original issue discount at the tight end of guidance, and Garda World Security Corp. added an add-on first-lien term loan B to its repricing transaction.

Furthermore, First Brands Group LLC, Wilsonart LLC and American Public Education Inc. disclosed price talk with launch, and Tamko Building Products Inc., Virgin Pulse and Interior Logic Group Holdings LLC joined the near-term primary calendar.

Ankura upsizes

Ankura Consulting raised its eight-year covenant-lite second-lien term loan (Caa2/CCC) to $175 million from $150 million, according to a market source.

Pricing on the second-lien term loan is Libor plus 800 basis points with a 0.75% Libor floor and an original issue discount of 98.5, and the debt has call protection of 102 in year one and 101 in year two, with a refinancing/repayment in connection with a change of control or initial public offering at 101 in year one and year two.

The company is also getting a $465 million seven-year covenant-lite first-lien term loan (B2/B-) priced at Libor plus 450 bps with a 0.75% Libor floor and a discount of 99. This tranche has 101 soft call protection for six months.

Previously in syndication, pricing on the first-lien term loan was set at the high end of the Libor plus 425 bps to 450 bps talk, pricing on the second-lien term loan firmed at the low end of the Libor plus 800 bps to 825 bps talk, the refinancing/repayment provision was added to the second-lien term loan call protection, and a number of revisions were made to documentation.

Ankura hits secondary

Recommitments for Ankura’s loans were due at noon ET on Friday, and the debt freed to trade in the afternoon, with the first-lien term loan quoted at 99¼ bid, 99¾ offered, another source added.

Deutsche Bank Securities Inc., Jefferies LLC, MUFG and Truist are leading the deal, with Deutsche Bank the left lead on the first-lien term loan and Jefferies the left lead on the second-lien term loan.

Proceeds will be used to refinance existing debt and, due to the second-lien upsizing, to add cash to the balance sheet.

Ankura is a specialty consulting platform.

Sorenson tweaked, trades

Sorenson Communications finalized pricing on its $600 million five-year senior secured first-lien term loan (B2/B+) at Libor plus 550 bps, the low end of the Libor plus 550 bps to 575 bps talk, added a 25 bps step-down after 0.5x of first-lien net leverage deleveraging and revised the original issue discount to 99 from 98.5, a market source said.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Friday and the term loan broke for trading later in the day, with levels quoted at 99½ bid, par offered, another source added.

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

Sorenson is a Salt Lake City-based provider of end-to-end communication technology services for the deaf and hard of hearing.

Cross updated, breaks

Cross Insurance finalized pricing on its $100 million add-on first-lien term loan B and repricing of its existing $350 million first-lien term loan B at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and moved the original issue discount to 99.875 from 99.75, according to a market source.

The term loan debt still has a 0.75% Libor floor and 101 soft call protection for six months.

During the session, the term loan started trading, with levels quoted at par 3/8 bid, par 7/8 offered, another source added.

JPMorgan Chase Bank is leading deal.

Proceeds from the add-on term loan will be used to fund a share repurchase, for general corporate purposes and for acquisition financing.

Cross Insurance is an insurance broker.

Ahlstrom changes emerge

Ahlstrom-Munksjo set pricing on its $547 million (€450 million equivalent) U.S. dollar seven-year first-lien term loan B (B2/B/BB-) at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, added a 25 bps step-down at 3.3x senior secured net leverage and tightened the original issue discount to 99.5 from 99, a market source remarked.

The U.S. term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

The company also upsized its euro seven-year first-lien term loan B (B2/B/BB-) to €600 million from €550 million, cut pricing to Euribor plus 375 bps from initial talk in the range of Euribor plus 400 bps to 425 bps, added three 25 bps step-downs based on senior secured net leverage, and modified the issue price to par from 99.5, the source continued.

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

Ahlstrom frees up

Ahlstrom-Munksjo’s U.S. term loan made its way into the secondary market in the afternoon, with levels quoted at 99¾ bid, par ½ offered, another source added.

Goldman Sachs International is the physical bookrunner on the U.S. term loan. Goldman Sachs and Nordea Bank ABP are the physical bookrunners on the euro loan. Joint bookrunners include BNP Paribas Fortis SA/NV, Morgan Stanley Bank AG, Danske Bank A/S, DNB Bank ASA, ING Bank NV, OP Corporate Bank plc and Skandinaviska Enskilda Banken AB.

The new debt will be used to help fund the acquisition of an equity stake of more than 90% in the company by Bain Capital, Viknum and Belgrano Inversiones.

Ahlstrom-Munksjo is a Finland-based provider of fiber-based materials.

Pitney reworked, breaks

Pitney Bowes lifted its seven-year term loan to $450 million from $400 million and cut pricing to Libor plus 400 bps from talk in the range of Libor plus 425 bps to 450 bps, a market source said.

The term loan still has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

On Friday, the term loan freed to trade, with levels quoted at 99 5/8 bid, par 1/8 offered, another source added.

JPMorgan Chase Bank is leading the deal that will be used with $750 million of notes, downsized from $800 million, to refinance an existing term loan due 2025 priced at Libor plus 550 bps with a 0% Libor floor, and to fund tender offers for 3 7/8% notes due 2022, 4.7% notes due 2023 and 4 5/8% notes due 2024.

Pitney Bowes is a Stamford, Conn.-based technology company providing commerce solutions.

Cowen tops OID

Cowen’s $300 million seven-year covenant-lite first-lien term loan B (B1/BB-) began trading too, with levels quoted at 99¾ bid, par ¼ offered, according to a trader.

Pricing on the term loan is Libor plus 325 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt and pay related fees, expenses and original issue discount.

Closing is expected during the week of March 15.

Cowen is a New York-based investment bank and financial services company.

EyeSouth modified

EyeSouth Partners changed the original issue discount on its $375 million seven-year senior secured first-lien term loan and $65 million 18-month commitment period delayed-draw first-lien term loan to 99.75 from 99.5, a market source remarked.

Also, while pricing on the term loan debt remained at Libor plus 450 bps, a 25 bps step-down was added at 5x first-lien gross leverage, the source continued.

As before, the term loan debt has a 0.75% Libor floor and 101 soft call protection for six months.

The funded and delayed-draw term loans are being sold as a strip, and the delayed-draw ticking fee is half the margin from days 46 to 90 and the full margin thereafter.

The company’s $455 million of credit facilities (B3/B-) also include a $15 million five-year revolver.

Recommitments were due at 2 p.m. ET on Friday, the source added.

Jefferies LLC is leading the deal that will refinance existing debt and fund near-term acquisitions.

EyeSouth is an Atlanta-based provider of practice management services to ophthalmology practices.

Avast revised

Avast Software set the breakdown of its $837 million equivalent U.S. and euro seven-year term loan B (Ba1/BB+) as a $480 million tranche and a €300 million tranche, cut pricing on the term loans to Libor/Euribor plus 200 bps from Libor/Euribor plus 225 bps and firmed the original issue discount on the loans at 99.75, the tight end of the 99.5 to 99.75 talk, a market source said.

At launch, the U.S. term loan size was described a minimum of $350 million and the euro term loan size was described as a minimum of €300 million.

The term loans still have a 0% floor and 101 soft call protection for six months.

Recommitments for the term loans were due at noon ET on Friday the source added.

Credit Suisse is the physical lead bookrunner on the deal, and Morgan Stanley is a joint lead bookrunner.

Avast, a Prague-based cybersecurity provider, will used the new term loans to refinance existing debt.

Garda adds add-on

Garda World Security is looking to get a $100 million add-on first-lien term loan B due Oct. 30, 2026 in addition to its in market repricing of the existing $988 million first-lien term loan B due Oct. 30, 2026, according to a market source.

Like the repricing, the add-on term loan is talked at Libor plus 425 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Recommitments are due at noon ET on Monday, the source added.

Barclays is the lead left bookrunner on the deal. JPMorgan Chase Bank is the administrative agent.

The add-on term loan will be used with cash on hand to repay revolver borrowings, and the repricing will take the existing first-lien term loan B down from Libor plus 475 bps with a 0% Libor floor.

Garda is a Montreal-based provider of cash logistics and security solutions.

First Brands guidance

First Brands Group held its bank meeting at 11 a.m. ET on Friday and, a few hours before the even kicked off, price talk was announced on its $1.425 billion six-year senior secured first-lien term loan and $540 million seven-year second-lien term loan, according to a market source.

Talk on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 850 bps with a 1% Libor floor and a discount of 98, the source said.

The first-lien term loan has 101 hard call protection for one year and the second-lien term loan has hard call protection of 103 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on March 22, the source added.

Jefferies LLC is leading the deal that will be used to refinance existing debt.

First Brands is an automotive aftermarket platform offering comprehensive solutions for consumable maintenance and mission-critical repair parts.

Wilsonart proposed terms

Wilsonart came out with talk of Libor plus 325 bps with a 0.75% Libor floor and an original issue discount of 99.5 on its $1.241 billion covenant-lite term loan E due December 2026 that launched with a call in the morning, a market source said.

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

Commitments are due at 5 p.m. ET on March 18.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., UBS Investment Bank, Goldman Sachs Bank USA, Barclays and SMBC are leading the deal that will be used to amend and extend an existing term loan D due December 2023.

Wilsonart is a Temple, Tex.-based engineered surfaces company.

American Public talk

American Public Education held its call in the morning and launched its $175 million six-year term loan B at talk of Libor plus 575 bps to 600 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months, a market source remarked.

The company’s $195 million of senior secured credit facilities (B1/BB-) also include a $20 million five-year revolver.

Commitments are due on March 25, the source added.

Macquarie Capital (USA) Inc. and Truist are leading the deal that will be used to help fund the acquisition of Rasmussen University for $329 million, split between $300 million in cash and $29 million of non-voting preferred stock.

Closing is expected by the middle of the third quarter, subject to review by the Department of Education, approval by the Higher Learning Commission and approval of or notices to other regulatory and accrediting bodies.

American Public is a Charles Town, W.V.-based provider of higher learning. Rasmussen is a nursing- and health sciences-focused institution.

Tamko readies deal

Tamko Building Products set a lender call for 11 a.m. ET on Monday to launch a fungible $250 million incremental term loan B (B2) due May 2026 talked with an original issue discount of 99, according to a market source.

Pricing on the incremental term loan is Libor plus 300 bps with a 0% Libor floor, in line with existing term loan pricing, and the term loan debt is getting 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on March 18, the source added.

JPMorgan Chase Bank is leading the deal that will be used to fund a dividend.

Tamko is a Galena, Kan.-based manufacturer and marketer of residential roofing products and accessories.

Virgin Pulse on deck

Virgin Pulse scheduled a lender call for 3 p.m. ET on Monday to launch $690 million of term loans, a market source said.

The debt consists of a $505 million first-lien term loan and a $185 million second-lien term loan, the source added.

KKR Capital Markets and JPMorgan Chase Banks are the leads on the deal, with KKR the left lead on the first-lien loan and JPMorgan the left lead on the second-lien loan.

Proceeds will be used to refinance existing debt and fund a dividend.

Virgin Pulse is a digital health, wellbeing and engagement company.

Interior coming soon

Interior Logic Group plans to hold a lender call at noon ET on Monday to launch a new loan, according to a market source.

Citigroup Global Markets Inc. and Goldman Sachs Bank USA provided the debt commitment that will be used to help fund the buyout of the company by Blackstone from Littlejohn & Co. LLC, Platinum Equity and other equity holders for a total transaction value of about $1.6 billion.

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

Interior Logic is an Irvine, Calif.-based provider of interior design, supply chain and installation management solutions to single-family homebuilders.

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