Consolidated Container, ConvergeOne free to trade; ServiceMaster weakens with refinancing

By Sara Rosenberg

New York, June 16 – Consolidated Container Co. LLC increased the spread on its second-lien term loan and then the debt freed up for trading on Monday, and ConvergeOne Holdings Corp.’s credit facility hit the secondary as well.

Also in trading, ServiceMaster Co. LLC’s term loans softened with the launch of a refinancing transaction, and bank debt at Level 3 Communications Inc. and tw telecom held steady on merger news.

Back in the primary, TeamViewer, Altegrity Inc. and TerraForm Power released price talk on their loans, and Solenis International LP (Ashland Water Technologies), Tensar, Landmark Aviation and Altisource Portfolio Solutions SA are getting ready to bring new deals to market.

Consolidated Container breaks

Consolidated Container’s $80 million senior secured covenant-light second-lien term loan (Caa1/CCC) due Jan. 3, 2020 began trading on Monday, with levels quoted at 98½ bid, 99½ offered, according to a market source.

Pricing on the loan is Libor plus 650 basis points, after widening from initial talk of Libor plus 600 bps, a source said. There is a 1.25% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three, and the debt was sold at an original issue discount of 98.

Citigroup Global Markets Inc. is leading the deal that will be used for acquisition financing.

Closing is targeted for this week.

Consolidated Container is an Atlanta-based developer and manufacturer of rigid plastic packaging.

ConvergeOne tops OIDs

ConvergeOne’s credit facility broke too, with the $190 million six-year first-lien term loan (B2/B) and $80 million seven-year second-lien term loan (Caa2/CCC+) both seen at 99½ bid, par ½ offered on the open and then moving to par bid, par ½ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

The second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and was sold at a discount of 99. This tranche has call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan widened from Libor plus 475 bps, the call protection was extended from six months and the MFN sunset was eliminated, and the second-lien loan saw its call protection revised from 103 in year one, 102 in year two and 101 in year three.

ConvergeOne being acquired

Proceeds from ConvergeOne’s $295 million credit facility, which also includes a $25 million revolver (B2/B), will be used to help fund the buyout of the company by Clearlake Capital Group LP.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal.

ConvergeOne is an Eagan, Minn.-based provider of data, communications, collaboration and customer interaction and managed services.

ServiceMaster dips

In more trading news, ServiceMaster’s term loan B fell to par bid, par ¼ offered from par ¼ bid, par ½ offered and its term loan C dropped to par bid, par ¼ offered from par 1/8 bid, par 3/8 offered as the company announced and launched a refinancing of the debt, according to a trader.

To replace the existing $988 million term loan B and $1,205,000,000 term loan C maturing in January 2017, the company is seeking a new $1,825,000,000 covenant-light seven-year term loan B that is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for six months, a source said.

The company is also looking to get a $300 million five-year revolver to replace its existing revolver.

ServiceMaster lead banks

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Jefferies Finance LLC, Natixis, and RBC Capital Markets are leading ServiceMaster’s new $2,125,000,000 credit facility that launched with a call at 1:30 p.m. ET on Monday afternoon.

Commitments are due on June 24, another source added.

ServiceMaster, a Memphis-based provider of maintenance services to residential and commercial customers, will also use available cash and proceeds from initial public offering of common stock for the refinancing of its credit facility.

Additionally, remaining IPO proceeds will be used to redeem some of the company’s senior notes.

Level 3, tw steady

Level 3 and tw telecom both saw their term loans quoted at par ¼ bid, par ¾ offered, unchanged on the day, following news that Level 3 is buying tw telecom for about $7.3 billion, including the assumption of roughly $1.6 billion of net debt as of March 31, a trader remarked.

To help fund the transaction, Level 3 has received a commitment for $3 billion in financing.

The transaction is deleveraging with pro forma net debt to adjusted EBITDA of 4.5 times after synergies.

Specifically, tw telecom, a Littleton, Colo.-based provider of managed data, internet and voice networking solutions, is being bought for $10 cash and 0.7 shares of Level 3 common stock for each share of tw telecom common stock that is owned at closing.

Level 3, a Broomfield, Colo.-based fiber-based communications services, expects to close on the transaction in the fourth quarter, subject to regulatory approvals, stockholder approvals at both companies and customary conditions.

TeamViewer talk emerges

Returning to the primary front, TeamViewer held its bank meeting in London on Monday, and with the event, talk on its first- and second-lien term loans was revealed, according to a market source. A New York bank meeting will take place on Tuesday.

The $310 million seven-year first-lien covenant-light term loan (B1) is talked at Libor plus 450 bps to 475 bps and the €100 million seven-year first-lien covenant-light term loan (B1) is talked at Euribor plus 475 bps to 500 bps, with both having a 1% Libor floor, a discount of 99 and 101 soft call protection for one year, the source said.

Meanwhile, the $125 million eight-year second-lien covenant-light term loan (Caa1) is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 98½, and call protection of 102 in year one and 101 in year two, the source continued.

TeamViewer getting revolver

Along with the first- and second-lien term loans, TeamViewer’s credit facility includes a $35 million five-year revolver (B1).

Commitments are due on June 30, the source added.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Nomura are leading the deal that will be used to help fund the buyout of the company by Permira.

TeamViewer is a Germany-based provider of secure remote support software and Online Meetings.

Altegrity launches

Altegrity released talk of Libor plus 750 bps with a 1% Libor floor, an original issue discount of 99 and call protection of non-callable for one year, then at 102 in year two and 101 in year three on its term loan (B3) that was revealed to be sized at $550 million, according to a market source.

Commitments are due on June 25, the source said.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Macquarie Capital are leading the deal that launched with an afternoon bank meeting.

Proceeds from the term loan and $550 million of bonds will be used to refinance existing debt.

Altegrity is a Falls Church, Va.-based risk and information services company.

TerraForm sets guidance

TerraForm Power launched with a bank meeting in the afternoon its $300 million five-year term loan with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a source said.

The company’s $425 million senior secured credit facility also includes a $125 million three-year revolver.

Commitments are due on June 30, the source added.

Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are leading the deal that will be used to refinance a portion of the company’s bridge loan.

The new credit facility is being done in connection with an initial public offering of class A common stock.

Beltsville, Md.-based TerraForm Power is an indirect subsidiary of SunEdison and will own and operate contracted clean power generation assets acquired from SunEdison and unaffiliated third parties.

Solenis coming soon

Solenis International will hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch $1,415,000,000 of term loans, according to market sources.

The deal is comprised of a $630 million seven-year first-lien covenant-light term loan, a $315 million seven-year euro first-lien covenant-light term loan and a $470 million eight-year second-lien covenant-light term loan, sources said.

Also included in the company’s $1,615,000,000 credit facility is a $200 million revolver.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Nomura Securities International Inc., RBC Capital Markets, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are leading the deal, with Credit Suisse the left lead on the first-lien debt and Bank of America the left lead on the second-lien debt.

Solenis funding buyout

Proceeds from Solenis’ credit facility and up to $400 million of equity will be used to finance its roughly $1.8 billion acquisition by Clayton, Dubilier & Rice from Ashland Inc.

Commitments are due on June 30, sources added.

Closing is expected by Sept. 30, subject to regulatory approvals, standard conditions and completion of required employee information and consultation processes.

Solenis is a supplier of specialty chemicals for process, functional and water treatment applications.

Tensar plans deal

Tensar set a bank meeting for 10:30 a.m. ET in New York on Thursday to launch a $345 million credit facility, according to a market source.

The facility consists of a $30 million five-year revolver, a $230 million seven-year first-lien term loan and an $85 million eight-year second-lien term loan, the source said.

UBS AG and Societe Generale are leading the deal that will be used to help fund the buyout of the company by Castle Harlan.

Tensar is an Atlanta-based provider of specialty products and engineering services used in the development of commercial, residential, industrial and municipal sites as well as in transportation infrastructure.

Landmark Aviation on deck

Landmark Aviation surfaced with plans to hold a call at 1:30 p.m. ET on Tuesday to launch $325.9 million in new senior secured term loans, according to a market source.

The debt consists of a $220.4 million incremental first-lien term loan and a $105.5 million incremental second-lien term loan, the source remarked.

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Barclays are leading the deal.

Landmark Aviation is a Houston-based provider of FBO, MRO and aircraft charter and management services.

Altisource readies call

Altisource Portfolio Solutions scheduled a call for Tuesday to launch a fungible $200 million add-on term loan B (B+) due Dec. 9, 2020 that is talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount that is still to be determined, according to a market source.

The spread and floor on the add-on match the existing term loan.

Bank of America Merrill Lynch, Wells Fargo Securities LLC and J.P. Morgan Securities LLC are leading the deal.

Altisource is a Luxembourg-based provider of services focused on high-value, technology-enabled knowledge-based services principally related to real estate and mortgage portfolio management, asset recovery and customer relationship management.

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