Conduent, Applied Systems, Tronox, Pike, EagleView break; Avolon, Aristocrat update deals

By Sara Rosenberg

New York, Sept. 14 – Conduent Business Services LLC firmed pricing on its term loan B at the tight side of guidance and then freed up for trading on Thursday, and deals from Applied Systems Inc., Tronox Finance LLC, Pike Corp. and EagleView Technology Corp. hit the secondary too.

In more happenings, Avolon finalized pricing on its term loan B-2 at the low side of talk, and Aristocrat Leisure Ltd. set the spread on its incremental term loan B at the low end of talk and modified the original issue discount, and added a repricing of its existing term loan B to the mix.

Additionally, TriMark USA LLC lowered pricing on its term loan and revised the issue price, and TTM Technologies Inc. trimmed the spread on its term loan.

Also, Transplace Holdings Inc., Brooks Automation Inc., Covenant Surgical Partners Inc. and Arch Coal Inc. released price talk with launch, MW Industries, CPA Global (Capri Acquisitions Bidco Ltd.) and PSC/HydroChem scheduled bank meetings, and Navicure Inc./Zirmed Inc. emerged with new deal plans.

Conduent firms, trades

Conduent Business Services finalized pricing on its $846 million senior secured term loan B due Dec. 7, 2023 at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps, and left the 0% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source remarked.

With final terms in place, the term loan B made its way into the secondary market on Thursday and levels were seen at par ¼ bid, par ¾ offered, another source added.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 0% Libor floor.

Closing is expected on Oct. 10.

Conduent is a Florham Park, N.J.-based provider of business process services with expertise in transaction-intensive processing, analytics and automation.

Applied Systems frees up

Applied Systems’ credit facilities began trading as well, with the $1.03 billion seven-year first-lien term loan B (B1/B) quoted at par ¾ bid, 101 offered and the $495 million eight-year second-lien term loan (Caa2/CCC) quoted at 102½ bid, according to a trader.

Pricing on the first-lien term loan B is Libor plus 325 bps with a step-down to Libor plus 300 bps at 4.75 times net first-lien leverage and a 1% Libor floor. The debt was issued at par and includes 101 soft call protection for six months.

The second-lien term loan is priced at Libor plus 700 bps with a 1% Libor floor and was issued at par. The loan has hard call protection of 102 in year one and 101 in year two.

During syndication, pricing on the first-lien term loan was lowered from Libor plus 350 bps, the step-down was added and the issue price was tightened from 99.5. Also, the second-lien term loan was reverse flexed from talk of Libor plus 725 bps to 750 bps and the issue price was changed from 99.

Applied Systems getting revolver

Along with the first-and second-lien term loans, Applied Systems’ $1,575,000,000 of credit facilities include a $50 million five-year revolver (B1/B).

Nomura, Jefferies LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to refinance existing debt, fund a distribution to shareholders and pay fees and expenses.

Closing is expected to occur next week.

Applied Systems, a Hellman & Friedman portfolio company, is a University Park, Ill.-based cloud software provider to the property & casualty and benefits insurance industry.

Tronox above par

Tronox’s $2.15 billion seven-year covenant-light term loan B (Ba3/BB-) surfaced in the secondary, with levels quoted at par ¼ bid, par 5/8 offered, a market source said.

Pricing on the term loan is Libor plus 300 bps with a step-down to Libor plus 275 bps at 2 times net secured leverage and a 0% Libor floor. The loan was sold at an original issue discount of 99.5 and has 101 soft call protection for one year.

On Wednesday, pricing on the term loan was reduced from talk of Libor plus 325 bps to 350 bps, the step-down was added and the call protection was extended from six months.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets and Barclays are leading the deal that will be used with $450 million of senior unsecured notes to refinance existing debt and fund the acquisition of the titanium dioxide assets of Cristal.

Along with the new term loan, the company is looking to upsize its ABL facility to $550 million.

Closing is targeted for Sept. 22.

Pro forma secured net leverage will be 2.9 times, and total net leverage will be 4.3 times based on pro forma June 30 unaudited adjusted EBITDA of $731 million.

Tronox is a Stamford, Conn.-based mining and inorganic chemical company.

Pike hits secondary

Pike’s $630 million seven-year senior secured covenant-light term loan B (B2/B) freed to trade too, with levels quoted at par ½ bid, 101¼ offered, a trader remarked.

The loan allocated on Wednesday night but didn’t break until Thursday morning, the trader added.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor and it was issued at par for both new money and existing money. The debt has 101 soft call protection for six months.

During syndication, the spread on the term loan firmed at the low end of the Libor plus 350 bps to 375 bps talk and the issue price on new money was tightened from 99.5.

Morgan Stanley Senior Funding Inc., KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey Inc. and Fifth Third Bank are leading the deal that will be used to refinance existing first- and second-lien term loans, and pay related fees and expenses.

Closing is expected on Wednesday.

Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.

EagleView tops OID

EagleView Technology’s fungible $100 million add-on covenant-light first-lien term loan B (B3/B) due July 15, 2022 also broke, with levels quoted at par bid, 101 offered, according to a trader.

Pricing on the loan is Libor plus 425 bps with a 1% Libor floor and it was sold at an original issue discount of 99.75.

On Wednesday, the original issue discount on the add-on term loan was changed from 99.5.

Morgan Stanley Senior Funding Inc. and Nomura Securities International Inc. are leading the deal that will be used to repay an existing second-lien term loan and accrued interest, and to pay fees and expenses related to the financing.

Closing is expected during the week of Sept. 18.

EagleView is a Bothell, Wash.-based technology provider of aerial imagery, data analytics and GIS solutions.

Avolon firms spread

Returning to the primary market, Avolon finalized pricing on its $5 billion senior secured term loan B-2 (Ba1/BBB-/BB+) due April 3, 2022 at Libor plus 225 bps, the tight side of the Libor plus 225 bps to 250 bps talk, according to a market source.

As before, the term loan has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

Commitments/consents were due at 5 p.m. ET on Thursday.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B-2 from Libor plus 275 bps with a 0.75% Libor floor.

Avolon is an Ireland-based provider of aircraft leasing and lease management services.

Aristocrat reworks deal

Aristocrat Leisure set pricing on its $425 million seven-year incremental senior secured covenant-light term loan B at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, and moved the original issue discount 99.75 from 99.5, while leaving the 0% Libor floor and 101 soft call protection for six months intact, a market source said.

Also, the company added a request to reprice its existing $950 million senior secured covenant-light term loan B due Oct. 20, 2021 to Libor plus 200 bps with a 0% Libor floor from Libor plus 225 bps with a 0% Libor floor, the source continued. The reprice loan is offered at par and includes 101 soft call protection for six months.

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

Citigroup Global Markets Inc. is leading the deal that is expected to close at the end of October.

The incremental loan will be used with existing cash to fund the acquisition of Plarium Global Ltd., a Herzliya, Israel-based social gaming company, for $500 million and an earn-out arrangement payable to Plarium shareholders following the end of calendar years 2017 and 2018 based on 10 times LTM EBITDA at year end.

Aristocrat Leisure is a Sydney, Australia-based provider of gaming services.

TriMark changes emerge

TriMark USA reduced pricing on its $585 million seven-year covenant-light first-lien term loan (B3/B) to Libor plus 350 bps from talk of Libor plus 375 bps to 400 bps, revised the original issue discount to 99.75 from 99.5 and modified the MFN to 50 bps with an 18 month sunset from 50 bps with no sunset, according to a market source.

As before, the term loan includes a $25 million delayed-draw tranche, and has a 0% Libor floor and 101 soft call protection for six months.

Final commitments were due at 5 p.m. ET on Thursday, the source said.

Barclays, Jefferies LLC, Nomura and Citizens Bank are leading the deal that will be used to fund the buyout of the company by Centerbridge Partners LP from Warburg Pincus.

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

TriMark is a South Attleboro, Mass.-based provider of equipment, supplies and design services to the foodservice industry.

TTM cuts pricing

TTM Technologies lowered the spread on its $350 million seven-year senior secured covenant-light first-lien term loan (Ba3/BBB-) to Libor plus 250 bps from talk of Libor plus 300 bps to 325 bps, and left the 0% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months unchanged, a market source remarked.

Final commitments were due at 5 p.m. ET on Thursday, the source added.

Barclays and J.P. Morgan Securities LLC are leading the loan that will be used with $375 million of eight-year senior notes to repay an existing term loan B and revolver borrowings.

TTM Technologies is a Costa Mesa, Calif.-based printed circuit board manufacturer.

Transplace sets guidance

Also in the primary market, Transplace Holdings held its bank meeting on Thursday and, with the event, revealed price talk on its $390 million seven-year first-lien term loan B (B2/B-) and $120 million eight-year second-lien term loan (Caa2/CCC), according to a market source.

The first-lien term loan is talked at Libor plus 400 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 800 bps with a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, the source said.

The company’s $600 million senior secured deal also include a $90 million five-year revolver (B2/B-).

Commitments are due on Sept. 28, the source added.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., KeyBanc Capital Markets and RBC Capital Markets are leading the deal, with Goldman the left lead on the revolver and term loan B and JPMorgan the left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by TPG Capital from Greenbriar Equity Group LLC, which is expected to close late this month.

Transplace is a Frisco, Texas-based provider of highly configurable transportation management solutions.

Brooks terms surface

Brooks Automation came out with talk of Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $200 million seven-year senior secured covenant-light term loan B (BB-) that launched with a lenders’ presentation in the morning, a market source said.

Commitments are due on Sept. 28, the source added.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used for general corporate purposes, including to prefund acquisitions.

Brooks Automation is a Chelmsford, Mass.-based provider of automation and cryogenic solutions for multiple markets, including semiconductor manufacturing and life sciences.

Covenant Surgical talk

Covenant Surgical Partners held its bank meeting in the morning, launching its $150 million seven-year first-lien term loan (B3/B-) and $45 million delayed-draw first-lien term loan (B3/B-) at talk of Libor plus 500 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked.

The company’s $220 million of credit facilities also include a $25 million revolver (Ba3/B+).

Commitments are due on Sept. 28, the source added.

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by KKR from DFW Capital Partners, Iroquois Capital Group, PineBridge Investments and other existing shareholders.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Covenant Surgical is a Nashville, Tenn.-based acquirer and operator of ambulatory surgery centers and physician practices.

Arch Coal holds call

Arch Coal surfaced in the morning with plans to hold a lender call at 3:30 p.m. ET to launch a $299 million covenant-light first-lien term loan B (B1/BB-) due March 2024 talked at Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Wednesday, the source said.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 1% Libor floor.

Arch Coal is a St. Louis-based coal producer.

MW Industries timing

MW Industries set a bank meeting for 10 a.m. ET on Tuesday to launch $575 million of credit facilities, a market source remarked.

The facilities consist of a $70 million five-year revolver, a $385 million seven-year first-lien term loan and a $120 million eight-year second-lien term loan, the source added.

RBC Capital Markets, Citigroup Global Markets Inc., Jefferies LLC, Citizens Bank and Antares Capital are leading the deal that will be used to help fund the buyout of the company by American Securities from Genstar.

Previously it was known that the company would be approaching the loan market this month with the buyout financing, but specific timing and structure were not available.

MW Industries is a Rosemont, Ind.-based designer and manufacturer of springs and other specialty engineered metal components for diverse end markets.

CPA coming this month

CPA Global will hold a bank meeting in New York on Sept. 26 and a bank meeting in London on Sept. 27 to launch new credit facilities, a market source said.

The facilities consist of an £80 million revolver, an $830 million seven-year first-lien term loan and a €250 million seven-year first-lien term loan, the source added.

Jefferies LLC and Nomura are leading the deal that will be used with €410 million in pre-placed eight-year senior unsecured floating rate notes to help fund the buyout of the company by Leonard Green Partners LP and Partners Group Administration Services AG from Cinven.

Closing is subject to customary regulatory approval.

CPA is an Intellectual Property management and technology services company.

PSC/HydroChem on deck

PSC/HydroChem set a bank meeting for 10 a.m. ET in New York on Tuesday to launch $570 million in term loans, a market source remarked.

The debt consists of a $430 million first-lien term loan B and a $140 million second-lien term loan, the source added.

Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to help fund PSC’s acquisition of Aquilex Holdings LLC, the owner of HydroChem, from Centerbridge Partners LP.

Closing is expected this year, subject to customary conditions.

PSC, a portfolio company of Littlejohn & Co. LLC, and HydroChem are providers of industrial cleaning services to the industrial and energy infrastructure markets.

Navicure/Zirmed readies deal

Navicure/Zirmed is tentatively scheduled to hold a bank meeting in New York on Oct. 3 to launch $670 million of credit facilities, according to a market source.

The facilities consist of a $50 million five-year revolver, a $435 million seven-year covenant-light first-lien term loan and a $185 million eight-year second-lien term loan, the source said.

Antares Capital is leading the deal that will be used to help fund the combination of Navicure, an existing Bain portfolio company, with Zirmed.

Atlanta-based Navicure and Louisville, Ky.-based Zirmed are providers of integrated cloud-based medical claims management and patient payment solutions.

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