Avis frees to trade; Belfor updates surface; Skillsoft, Tank, Century Casinos release talk

By Sara Rosenberg

New York, March 15 – Avis Budget Group Inc. widened the spread, floor and original issue discount on its term loan C and then the debt made its way into the secondary market on Tuesday.

Also, Belfor Holdings Inc. reduced the size of its incremental first-lien term loan B, revised pricing, floor and issue price, added call protection and shifted to a non-fungible structure.

In addition, Skillsoft Corp. and Tank Holding Corp. announced pricing guidance on their loan transactions with launch, Century Casinos Inc. released price talk on its term loan B ahead of its lender call, and SS&C Technologies Holdings Inc. joined this week’s new issue calendar.

Avis widened, breaks

Avis Budget Group lifted pricing on its $500 million seven-year term loan C (Ba1/BB+) to SOFR+CSA plus 350 basis points from talk in the range of 275 bps to 300 bps, changed the Libor floor to 0.5% from 0% and revised the original issue discount to 97 from 98.5, according to a market source.

As before, the term loan has 101 soft call protection for six months and CSA of 10 bps.

Commitments were due at 10:45 a.m. ET on Tuesday and the term loan C began trading later in the day, with levels quoted at 97 1/8 bid, 97 5/8 offered, another source added.

JPMorgan Chase Bank, Barclays, BNP Paribas Securities Corp., Credit Agricole, Bank of Nova Scotia and Truist are leading the deal that will be used for general corporate purposes.

Avis is a Parsippany, N.J.-based provider of vehicle rental services.

Belfor reworked

Belfor scaled back its incremental first-lien term loan B due April 2026 to $235 million from $250 million, modified pricing to SOFR plus 425 bps from Libor plus 400 bps, revised the floor to 0.5% from 0%, adjusted the original issue discount to 97 from 99.026 and added 101 soft call protection for six months, a market source said.

Also, the incremental term loan was changed to non-fungible with the existing term loan from fungible.

Commitments were due at 4 p.m. ET on Tuesday, the source added.

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

Belfor is a Birmingham, Mich.-based disaster recovery and property restoration company.

Skillsoft proposed terms

Skillsoft held its lender call on Tuesday afternoon and released price talk on its fungible $160 million senior secured incremental first-lien term loan due July 16, 2028 at SOFR+CSA plus 500 bps with a 0.75% floor and an original issue discount of 98.625, a market source remarked.

CSA is 11.448 bps one-month rate, 26.161 bps three-month rate, 42.826 bps six-month rate and 71.513 bps for 12-month rate.

The incremental term loan has 102 hard call protection through July 16, 2022, same as the existing term loan.

Commitments are due at 5 p.m. ET on March 24, the source added.

In connection with this transaction, pricing on the company’s existing term loan will be revised to SOFR plus 500 bps with a 0.75% floor from Libor plus 475 bps with a 0.75% Libor floor.

Skillsoft buying Codecademy

Skillsoft will use the new term loan with $60 million of cash from the balance sheet to help fund the acquisition of Codecademy for about $525 million, split between about 40% cash and around 60% equity, and to pay related fees and expenses.

Barclays and Citigroup Global Markets Inc. are leading the debt. Citi is the administrative agent.

Pro forma net leverage at closing is expected to be about 4x.

Closing is targeted for April, subject to approval by Skillsoft shareholders, regulatory approvals and other customary conditions.

Skillsoft is a Dublin-based provider of cloud-based learning services. Codecademy is a New York-based online learning platform for technical skills.

Tank talk

Tank Holding launched on its call its $1.685 billion six-year unrated unitranche facility at talk of SOFR+CSA plus 600 bps with a 0.75% floor, according to a market source. Original issue discount talk is still to be determined.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due on March 29, the source added.

The company has requested that interested lenders reach out to their respective Antares Capital or Olympus Partners contacts.

The facility will be used to refinance existing credit facilities and pay a dividend.

Tank Holding, backed by Olympus Partners, is a Lincoln, Neb.-based manufacturer of proprietary rotational molded polyethylene and steel storage tanks and containers.

Century Casinos guidance

Century Casinos came out with price talk on its $350 million seven-year covenant-lite term loan B (B) in preparation for its lender call at 12:15 p.m. ET on Wednesday, a market source said.

Talk on the term loan is SOFR+CSA plus 575 bps with a 0.75% floor and an original issue discount of 98, the source continued. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 hard call protection for one year.

Commitments are due on March 25, the source added.

The company is also getting a $30 million five-year super priority revolver (BB-).

Goldman Sachs Bank USA and BofA Securities Inc. are leading the deal that will be used with balance sheet cash to support the acquisition of 100% of Nugget Sparks LLC and 50% of Smooth Bourbon LLC from Marnell Gaming LLC for $195 million, refinance existing debt and fund development capital expenditures.

Net leverage is expected to be 3.1x and closing on the financing is targeted for April 1.

Century Casinos is a Colorado Springs, Colo.-based casino entertainment company.

SS&C timing emerges

SS&C Technologies set a lender call for 10 a.m. ET on Wednesday to launch its previously announced $1.68 billion of incremental term loans, according to a market source.

The debt consists of an $800 million term loan B-6 and an $880 million term loan B-7, the source added.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used to help fund the acquisition of Blue Prism Group plc for £12.75 in cash per share, implying a value of £1.243 billion.

Closing is expected this quarter, subject to Blue Prism shareholder approval, receipt of applicable antitrust and regulatory clearances, and the sanction of the scheme by the court.

SS&C is a Windsor, Conn.-based provider of services and software for the financial services and health care industries. Blue Prism is a U.K.-based provider of intelligent automation for the enterprise.

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