Virtu, Autodata, B&G free up; Concentra updated; Peabody tabled; Cumulus accelerated

By Sara Rosenberg

New York, Sept. 16 – Virtu Financial LLC (VFH Parent LLC) revised the original issue discount on its incremental first-lien term loan, and then the debt made its way into the secondary market on Monday with levels quoted above par.

Also, Autodata Group modified the issue price on incremental first-lien term loan before breaking for trading, and B&G Foods Inc.’s term loan B freed to trade as well.

In more happenings, Concentra Group Holdings LLC firmed the original issue discount on its add-on term loan B at the tight side of guidance, Peabody Energy Corp. pulled its term loan B from market, and Cumulus Media Inc. moved up the commitment deadline for its term loan B.

Furthermore, Cineworld Group plc, MKS Instruments Inc. and ECi Software Solutions released price talk on their loan transactions, APi Group Inc. and Medical Solutions came out with timing on the launch of their proposed loans, and DuBois Chemicals Inc. joined this week’s calendar.

Virtu tweaked, trades

Virtu changed the original issue discount on its fungible $525 million incremental senior secured first-lien term loan (Ba3/B+/BB-) due March 1, 2026 to 99.875 from 99.5, according to a market source.

Like the existing term loan, the incremental loan is priced at Libor plus 350 basis points with a 0% Libor floor and has 101 soft call protection that expires March 2020.

Recommitments were due at noon ET on Monday and later in the day the term loan broke for trading, with levels quoted at par ¼ bid, par ½ offered, the source said.

Jefferies LLC is leading the deal that will be used to redeem second-lien notes due 2022.

The concurrent amendment passed. Consenting lenders will get a 5 bps consent fee.

Pro forma for the transaction, the first-lien term loan size is $1.975 billion.

Closing is expected in October.

Virtu is a New York-based financial services firm that leverages cutting edge technology to deliver liquidity to the markets and innovative, transparent trading solutions.

Autodata tightened, breaks

Autodata Group moved the original issue discount on its fungible $755 million incremental first-lien term loan (B2/B-/BB-) due May 2026 to 99 from 98.5, a market source remarked.

The incremental first-lien term loan is priced at Libor plus 350 bps with a 0% Libor floor, and has 101 soft call protection for six months.

Recommitments were due at 2:30 p.m. ET on Monday and the loan freed to trade at 99¼ bid, 99 5/8 offered late in the day, a trader added.

The company is also getting a fungible $265 million privately placed incremental second-lien term loan due May 2027.

RBC Capital Markets, KKR Capital Markets, SunTrust Robinson Humphrey Inc. and UBS Investment Bank are leading the deal that will be used to fund a business combination.

Pro forma for the transaction, the first-lien term loan will total $1.155 billion and the second-lien term loan will total $415 million.

Autodata, a Thoma Bravo LLC portfolio company, is a London, Ont.-based provider of data, technology platforms and services to the automotive industry.

B&G tops OID

B&G Foods’ $450 million seven-year covenant-lite term loan B (Ba2/BB) began trading too, with levels quoted at 99¾ bid, par ½ offered, a trader said.

Pricing on the term loan is Libor plus 250 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 250 bps to 275 bps talk and the discount was tightened from 99.

Barclays, Deutsche Bank Securities Inc., RBC Capital Markets, BofA Securities, Inc., BMO Capital Markets, Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used with $550 million of senior notes to refinance the company’s existing $700 million of 4 5/8% senior notes due 2021, to pay down revolver borrowings and to pay related fees and expenses.

Closing is expected on Oct. 11.

B&G Foods is a Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable food, frozen food and household products.

Concentra updated

Back in the primary market, Concentra finalized the original issue discount on its $100 million add-on covenant-lite term loan B (B1/B+) at 99.51, the tight end of the 99 to 99.51 talk, according to a market source.

The add-on term loan is priced at Libor plus 250 bps, due to B1/B+ corporate ratings, with a 0% Libor floor.

J.P. Morgan Securities LLC is leading the deal that will be used to with cash on hand to repay a second-lien term loan.

Concentra is an Addison, Tex.-based occupational medicine and urgent care service provider that was created through a joint venture between Select Medical Corp., Welsh, Carson, Anderson & Stowe and other minority equity holders including Cressey & Co.

Peabody withdrawn

Peabody Energy pulled its $900 million seven-year term loan B (Ba3/BB+) from market, will now leave its existing $395 million term loan B due March 31, 2025 in place instead of refinancing the debt, and will fund the tender offers for its 6% senior secured notes due 2022 and 6 3/8% senior secured notes due 2025 with proceeds from a newly announced $900 million senior secured note offering and cash on hand, sources said.

The shelved term loan, led by J.P. Morgan Securities LLC, was talked at Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The St. Louis-based coal company’s existing term loan B is priced at Libor plus 275 bps.

Peabody is seeking to amend its revolver to upsize it to $565 million from $350 million and extend the maturity of $540 million of the upsized revolver to September 2023 from Nov. 17, 2020.

The credit agreement amendment would also permit the previously announced proposed joint venture with Arch Coal Inc., provide the company with additional financial flexibility and allow for incremental borrowings of $300 million plus an additional amount based on leverage.

Goldman Sachs Bank USA is the administrative agent on the existing credit facilities.

The amendment is expected to close concurrently with the closing of the note offering.

Cumulus moves deadline

Cumulus Media accelerated the commitment deadline for its $525 million term loan B (B2/B) to Tuesday from Thursday, a market source remarked.

Talk on the term loan is Libor plus 400 bps with an original issue discount of 99 and 101 soft call protection for six months.

BofA Securities, Inc. is leading the deal that will be used to repay an existing term loan.

Cumulus Media is an Atlanta-based radio broadcaster.

Cineworld talk surfaces

Cineworld held its lender call on Monday and announced price talk on its $650 million seven-year incremental term loan B (B1/BB-) at Libor plus 250 bps to 275 bps with a 0% Libor floor and an original issue discount of 99.25 to 99.5, according to a market source.

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

Commitments are due at 11 a.m. ET on Friday.

HSBC Bank plc is the left lead on the deal. BofA Securities, Inc. and Barclays are joint lead arrangers and joint bookrunners. Barclays is the agent.

The new debt will be used to partially refinance the company’s existing euro term loan B and revolver drawings.

Cineworld is a London-based cinema operator.

MKS reveals guidance

MKS Instruments came out with talk of Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months on its $896.8 million first-lien term loan B-6 due Feb. 1, 2026 that launched with a call in the morning, a market source said.

Commitments are due at noon ET on Sept. 25.

Barclays is leading the deal that will be used to reprice an existing $298.5 million first-lien term loan B-4 from Libor plus 200 bps with a 0.75% Libor floor and an existing $648.4 million first-lien term loan B-5 from Libor plus 225 bps with a 0% Libor floor, and extend the maturity of the B-4 loan to match the Feb. 1, 2026 maturity of the B-5 loan. There will be a $50 million paydown of the pro forma facility at close.

MKS is an Andover, Mass.-based provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes.

ECi launches

ECi Software Solutions launched on its lender call both its fungible $96 million incremental first-lien term loan and its fungible $28 million incremental second-lien term loan with original issue discount talk of 99, a market source remarked.

The first-lien term loan is priced at Libor plus 425 bps with a 1% Libor floor, and the existing and incremental debt are getting 101 soft call protection for six months, and the second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor.

Commitments are due on Sept. 23.

Golub Capital is leading the deal that will be used to fund the acquisition of Trivest Beheer BV, a Netherlands-based provider of smart vertical software solutions to the SME manufacturing sector.

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

ECi is a Fort Worth-based provider of enterprise resource planning software solutions to businesses across the distribution, field services, building and construction and manufacturing industries.

APi coming soon

APi Group set a bank meeting for 10 a.m. ET in New York on Tuesday to launch its proposed credit facilities, according to a market source. A company presentation previously said that the credit facilities would consist of a $300 million revolver and a $1.08 billion term loan B.

Citigroup Global Markets Inc., BofA Securities, Inc., Barclays and UBS Investment Bank provided the debt commitment that will be used to help fund the acquisition of the company by J2 Acquisition Ltd. for $2.05 billion in cash and 28.373 million ordinary shares in J2. The transaction is valued at about $2.9 billion.

The acquisition is also expected to be financed with J2 cash on hand, an early warrant exchange and rollover equity from existing shareholders at $10.25 per share.

Pro forma net debt leverage is anticipated to be 2.8x LTM June 2019 adjusted EBITDA.

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

APi is a New Brighton, Minn.-based provider of commercial life safety solutions and industrial specialty services, and a specialty contractor. Upon closing, J2, a special-purpose acquisition entity, intends to change its name to APi Group Corp.

Medical Solutions on deck

Medical Solutions scheduled a bank meeting for Wednesday to launch its recently announced $370 million of incremental term loans, a market source remarked.

The debt is split between a $270 million incremental first-lien term loan and a $100 million incremental second-lien term loan.

UBS Investment Bank and Madison Capital Funding are leading the deal that will be used to fund the acquisition of C&A Industries Inc.

Closing is expected by the end of the third quarter, subject to customary conditions, including regulatory clearance.

Medical Solutions is an Omaha, Neb.-based health care staffing company. C&A is an Omaha, Neb.-based staffing and recruitment firm.

DuBois readies deal

DuBois Chemicals will hold a bank meeting at 10 a.m. ET on Tuesday to launch $840 million of term loans, according to a market source.

The debt consists of a $540 million seven-year first-lien term loan B talked at Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a $110 million delayed-draw first-lien term loan with a 1% delayed-draw fee after 30 days, and a $190 million eight-year second-lien term loan talked at Libor plus 825 bps to 850 bps with a 0% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

Commitments are due at noon ET on Sept. 26.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the buyout of the company by Altas Partners from the Jordan Co. LP.

Closing is expected this year, subject to customary conditions and regulatory approvals.

DuBois Chemicals is a Sharonville, Ohio-based provider of specialty cleaning chemical solutions.

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