Cvent term loan B breaks; Wyndham Hotels, Nouryon, Golden Entertainment updates surface

By Sara Rosenberg

New York, May 18 – Cvent Holding Corp. (Capstone Borrower Inc.) increased the size of its first-lien term loan B, set the original issue discount at the wide end of revised talk, removed some pricing step-downs and made some changes to documentation before freeing up for trading on Thursday.

In more happenings, Wyndham Hotels & Resorts Inc. upsized its term loan B and firmed the spread and issue price at the tight end of guidance, and Nouryon adjusted minimum amounts for its U.S. and euro term loans and widened the original issue discount on the U.S. tranche.

Additionally, Golden Entertainment Inc. finalized pricing on its first-lien term loan B at the low end of talk and modified the issue price, and Pediatric Associates came to market with an incremental first-lien term loan.

Cvent reworked

Cvent raised its seven-year first-lien senior secured covenant-lite term loan B to $500 million from $400 million, finalized the original issue discount at 98.5, the wide end of revised talk of 98.5 to 99 but the tight end of initial talk of 98 to 98.5, and removed a 25 bps pricing step-down at 3.75x first-lien leverage and a 25 bps step-down at 3.25x first-lien leverage, according to a market source.

Furthermore, changes were made to MFN, available restricted payment capacity amount, inside maturity debt basket and leverage calculations in connection with the incurrence-based incremental amount.

As before, the term loan is priced at SOFR plus 375 basis points with a 25 bps step-down following an initial public offering and a 0% floor, and has 101 soft call protection for six months.

Previously in syndication, pricing on the term loan was reduced from SOFR plus 400 bps.

The company’s now $615 million of credit facilities (B2/B-/BB) also include a $115 million revolver.

Cvent hits secondary

Recommitments for Cvent’s term loan were due at 11:30 a.m. ET on Thursday and the debt freed to trade in the afternoon, with levels quoted at 98¾ bid, 99¼ offered, a trader added.

Morgan Stanley Senior Funding Inc., UBS Securities LLC, Citizens Bank and Fifth Third are leading the credit facilities that will be used with $400 million of senior secured notes, downsized from $500 million with the term loan upsizing, and about $2.5 billion of equity to fund the buyout of the company by Blackstone for $8.50 per share in cash, or about $4.6 billion, to refinance existing credit facilities, and to pay fees and expenses related to the transaction.

A wholly owned subsidiary of the Abu Dhabi Investment Authority will be a significant minority investor alongside Blackstone as part of the buyout. Also, Vista Equity Partners, a majority stockholder of Cvent, has agreed to invest a portion of its proceeds as non-convertible preferred stock in financing for the transaction.

Closing is expected in mid-June, subject to customary conditions, including receipt of stockholder and regulatory approvals.

Cvent is a Tysons, Va.-based provider of meetings, events and hospitality technology.

IMA levels emerge

IMA Financial Group Inc.’s non-fungible $200 million incremental term loan (B3/B) due November 2028 was quoted at 97¾ bid, 98¾ offered first thing Thursday morning after allocating on Wednesday, according to a trader.

Pricing on the incremental term loan is SOFR+10 bps CSA plus 425 bps with a 0.5% floor and it was sold at an original issue discount of 97.5. The debt has 101 soft call protection for six months.

During syndication, the discount on the term loan was tightened from talk in the range of 96 to 97.

BMO Capital Markets is leading the deal that will be used to fund near-term acquisitions under letters of intent and to pay down revolver borrowings.

IMA Financial is a Denver-based insurance brokerage firm.

Wyndham upsized

Wyndham Hotels & Resorts raised its seven-year covenant-lite term loan B (Ba1/BBB-/BBB-) to $1.144 billion from $750 million, finalized the spread at SOFR plus 225 bps, the low end of the SOFR plus 225 bps to 250 bps talk, and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source said.

The term loan still has 10 bps CSA, a 0% floor and 101 soft call protection for six months.

Recommitments were due at 3 p.m. ET on Thursday and allocations are expected on Friday morning, the source added.

Deutsche Bank Securities Inc., JPMorgan Chase Bank, BofA Securities Inc., Barclays, US Bank, Wells Fargo Securities LLC, Bank of Nova Scotia, Truist, Capital One, Fifth Third, HSBC Securities (USA) Inc., Santander and City National Bank are leading the deal that will be used to refinance an existing term loan B.

As a result of the term loan upsizing, the company will no longer be getting $400 million of other senior secured debt to help fund the refinancing.

Wyndham is a Parsippany, N.J.-based hotel franchising company.

Nouryon tweaked

Nouryon revised its U.S. first-lien term loan B due April 3, 2028 to a minimum size of $2.3 billion from minimum $2.5 billion, widened the original issue discount to 98 from talk in the range of 98.5 to 99, and made some modifications to documentation, according to a market source.

In addition, the company changed its euro first-lien term loan B due April 3, 2028 to minimum €1.4 billion from minimum €1.2 billion, the source said.

Talk on the U.S. term loan remained at SOFR+10 bps CSA plus 400 bps with a 0% floor, and talk on the euro term loan remained at Euribor plus 425 bps to 450 bps with a 0% floor and a discount of 98. Call protection is a 101 soft call until Oct. 3, 2023.

Commitments for the U.S. term loan were due at 5 p.m. ET on Thursday, the source added.

Nouryon lead banks

JPMorgan Chase Bank is the left lead bookrunner on Nouryon’s U.S. term loan. Barclays, HSBC and JPMorgan are joint global coordinators and joint physical bookrunners on the euro term loan. JPMorgan is the administrative agent.

The new debt will be used to amend and extend a portion of the company’s existing $3.2 billion term loan B due October 2025 and a portion of the existing €1.7 billion term loan B due October 2025, and to pay transaction fees and expenses.

The U.S. term loan is not fungible with the company’s existing $750 million term loan due April 2028.

Carlyle and GIC are the sponsors.

Nouryon is an Amsterdam-based specialty chemicals company.

Golden Entertainment updated

Golden Entertainment firmed pricing on its $400 million seven-year first-lien term loan B (Ba3/BB) at SOFR plus 275 bps, the low end of the SOFR plus 275 bps to 300 bps talk, and adjusted the original issue discount to 99.25 from 99, a market source said.

The term loan still has 10 bps CSA, a 0.5% floor and 101 soft call protection for six months.

JPMorgan Chase Bank, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Citizens Bank are leading the deal that will be used to help repay a roughly $575 million term loan due 2024 and pay transaction fees and expenses.

The company will also use proceeds from the sale of the its Rocky Gap Casino Resort for the transaction. Century Casinos Inc. will acquire the operations of Rocky Gap for $56.1 million, subject to customary working capital adjustments, and VICI Properties Inc. will acquire an interest in the land and buildings associated with Rocky Gap for $203.9 million.

Closing on the sale is expected mid-year, subject to regulatory approvals and customary conditions.

Golden Entertainment is a Las Vegas-based owner and operator of a diversified entertainment platform.

Pediatric holds call

Pediatric Associates held a lender call at 2 p.m. ET on Thursday to launch a non-fungible $125 million incremental first-lien term loan (B2) due December 2028 talked at SOFR+CSA plus 375 bps to 400 bps with a 0.5% floor, an original issue discount of 97 and 101 soft call protection for six months, a market source remarked.

CSA is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate.

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

Goldman Sachs Bank USA is leading the deal that that will be used for general corporate purposes, including to fund future acquisitions and to pay transaction fees and expenses.

TPG Capital and Summit Partners are the sponsors.

Pediatric Associates is a pediatric physician group, offering primary and specialty care, laboratory, diagnostic and care management services, as well as 24/7 telehealth access.

Loan indices slide

In other news, IHS Markit’s iBoxx loan indices were lower on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day down 0.02% and the Liquid Leveraged Loan indices (LLLi) closing out the day down 0.04%.

Month to date, the MiLLi is down 0.19% and year to date it is up 3.86%, and the LLLi is down 0.52% month to date and up 3.92% year to date.

Average secondary market bids in the U.S. on Wednesday were 91.11, up 0.02% from the previous day and down 0.84% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Whole Earth Brands’ February 2021 term loan B at 79.1, up from 72, Envision Healthcare/Amsurg’s July 2022 first out covenant-lite term loan at 90.33, up from 82.3, and Air Medical’s March 2018 covenant-lite term loan at 66, up from 61.29.

Some top decliners on Wednesday were McAfee/Magenta’s May 2021 second-lien covenant-lite term loan at 62.88, down from 74.25, Tradesmen/Tribe Buyer’s February 2017 term loan at 60, down from 68.06, and McAfee/Magenta’s July 2021 covenant-lite term loan B at 72.83, down from 81.29.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.