CDK, Maxar, Signature Aviation, Univision free to trade; Material Handling revised again

By Sara Rosenberg

New York, June 9 – CDK Global Inc. trimmed the spread on its first-lien term loan, added a step-down and tightened the original issue discount, and Maxar Technologies Inc. set pricing on its term loan B at the high end of talk and widened the issue price, and then these deals freed to trade on Thursday.

Also, before breaking for trading, Signature Aviation plc (Brown Group Holding LLC) reduced the spread on its term loan B-2 and revised the original issue discount, and Univision Communications Inc. (TelevisaUnivision) lowered pricing on its term loan B and firmed the issue price at the tight end of guidance.

In more happenings, Material Handling Systems (Project Castle) upsized its term loan B and adjusted the original issue discount, and Avaya announced price talk on its first-lien term loan.

CDK flexes

CDK lowered pricing on its $3.6 billion seven-year first-lien term loan to SOFR plus 450 basis points from talk in the range of SOFR plus 475 bps to 500 bps, added a 25 bps step-down at 4.75x first-lien net leverage and adjusted the original issue discount to 97 from talk in the range of 95 to 96, according to a market source.

As before, the first-lien term loan has a 0.5% floor and 101 soft call protection for six months.

Previously in syndication, the first-lien term loan was upsized from $3.35 billion as the company’s senior secured first-lien notes offering was downsized to $750 million from $1 billion.

The company’s $4.25 billion of credit facilities also include a $650 million revolver.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BMO Capital Markets, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets, TD Securities (USA) LLC, Wells Fargo Securities LLC, BofA Securities Inc., BNP Paribas Securities Inc., CIBC, Bank of Nova Scotia, Credit Agricole, MUFG, Societe Generale and Golub are leading the deal.

CDK hits secondary

Recommitments for CDK’s first-lien term loan were due at 11 a.m. ET on Thursday and the debt freed to trade later in the day, with levels quoted at 97¼ bid, 98 offered, another source added.

The credit facilities and notes will be used to help fund the buyout of the company by Brookfield Business Partners for $54.87 per share. The transaction has a total enterprise value of $8.3 billion.

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

CDK is a Hoffman Estates, Ill.-based automotive retail technology company.

Maxar tweaked, trades

Maxar Technologies finalized the spread on its $1.5 billion seven-year term loan B at SOFR+CSA plus 425 bps, the high end of the 400 bps to 425 bps talk, and changed the original issue discount to 95.5 from 96, a market source remarked.

The term loan still has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

The company’s $2 billion of credit facilities (B2/B) also include a $500 million five-year revolver.

Commitments continued to be due at noon ET on Thursday and the term loan broke in the afternoon, with levels quoted at 95 5/8 bid, 96 1/8 offered, a trader added.

RBC Capital Markets, BofA Securities Inc., Barclays, BMO Capital Markets, JPMorgan Chase Bank, Capital One, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Citizens Bank and ING Bank are leading the deal that will be used with a $500 million senior secured notes offering and cash on hand to refinance an existing term loan B and 9¾% senior secured notes due 2023, and to pay related fees and expenses.

Maxar is a Westminster, Colo.-based provider of space solutions and geospatial intelligence.

Signature tightens, frees

Signature Aviation cut pricing on its $1.1 billion seven-year term loan B-2 (B1/B+) to SOFR plus 375 bps from SOFR plus 400 bps and modified the original issue discount to 97.5 from 96, according to a market source.

The 0.5% floor, 101 soft call protection for six months and 0 bps CSA on the term loan were unchanged.

Recommitments were due at 1:30 p.m. ET on Thursday and the term loan B-2 surfaced in the secondary market late in the day, with levels quoted at 97¾ bid, 98½ offered, another source added.

RBC Capital Markets, Barclays, HSBC Securities (USA) Inc., MUFG, Banco Santander, Truist Securities, JPMorgan Chase Bank, SMBC and Blackstone Securities Partners are leading the deal that will be used to fund the acquisition of the FBO and hangar portfolio of Truman Arnold Cos. (TAC Air).

Signature Aviation is a London-based aviation services company.

Univision updated, breaks

Univision Communications reduced pricing on its non-fungible $500 million seven-year term loan B (B1/B+) to SOFR plus 425 bps from SOFR plus 450 bps and set the original issue discount at 97, the tight end of the 96 to 97 talk, a market source said.

As before, the term loan has a 0.5% floor and 101 soft call protection for six months.

Recommitments were due at 1:30 p.m. ET on Thursday and the term loan B began trading later in the day, with levels quoted at 97½ bid, 98½ offered, another source added.

JPMorgan Chase Bank, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays and Citigroup Global Markets Inc. are leading the deal that will be used with a non-fungible $500 million five-year term loan A (B1/B+), cash on hand and $500 million of senior secured notes to repay 9½% senior secured notes due May 2025 and refinance a portion of an existing term loan C-5 due March 2024.

The company also plans on extending its revolving credit facility to five years.

Univision is a New York-based Spanish-language content and media company.

Material Handling revised

Material Handling Systems increased its seven-year term loan B to $1.47 billion from a revised amount of $1.46 billion and an initial size of $1.425 billion, and changed the original issue discount to 89.5 from revised talk of 89 and initial talk in the range of 96 to 97, a market source remarked.

Pricing on the term loan remained at SOFR plus 550 bps with a 25 bps step-down upon an initial public offering and a 0.5% floor, and the debt still has 101 soft call protection for six months.

Previously in syndication, pricing on the term loan was lifted from SOFR plus 500 bps.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., RBC Capital Markets, UBS Investment Bank, Credit Suisse Securities (USA) LLC, Stifel, SMBC, KeyBanc Capital Markets and Citizens are leading the deal.

Material Handling merger

Material Handling Systems will use the new term loan B to help fund its merger with Fortna. Both companies are owned by Thomas H. Lee Partners LP. Upon closing, Thomas H. Lee will remain the majority owner of the combined company and a wholly owned subsidiary of the Abu Dhabi Investment Authority will acquire a significant minority stake to support the combination.

Closing is subject to customary conditions and regulatory approvals.

Material Handling is a Louisville, Ky.-based provider of material handling automation technology and systems integration. Fortna is an Atlanta-based software and solutions provider for warehouse and distribution.

Avaya guidance

Avaya held its lender call in the morning and released talk on its $500 million first-lien term loan (//BB-) due December 2027 at SOFR plus 900 bps with a 1% floor, an original issue discount of 96 and call protection of non-callable for two years, then at 101 for a year, with a bankruptcy make-whole, a market source said.

Commitments are due at noon ET on June 17, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used to prefund the refinancing of the company’s existing $350 million convertible debt due June 2023, to provide additional liquidity for general corporate purposes and to pay transaction fees and expenses.

Avaya is a Santa Clara, Calif.-based provider of communication software and services for enterprises.

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