Qlik, Action Holding term loans free to trade; Ciena, Minimax Viking updates surface

By Sara Rosenberg

New York, Oct. 19 – Qlik (Project Alpha Intermediate Holding Inc.) shifted its term loan B back to an all U.S. structure as plans for a euro term loan were eliminated, finalized the spread and original issue discount at the wide end of guidance, and made some revisions to documentation before breaking for trading on Thursday.

Another deal to make its way into the secondary market during the session was Action Holding BV’s (Peer Holding III BV/Peer USA LLC) term loan B-4.

In more happenings, Ciena Corp. firmed the issue price on its term loan B at the tight end of revised talk, Minimax Viking set the margin on its U.S. and euro term loans at the low end of guidance and revised the original issue discount talk, and KITO Crosby (Crosby US Acquisition Corp.) joined the near-term primary calendar.

Qlik reworked

Qlik upsized its U.S. seven-year senior secured covenant-lite first-lien term loan B (B2/B/BB+) to $2.4 billion from a revised amount of $1.98 billion, but the size is back in line with original talk at launch of $2.4 billion, and canceled plans for a €400 million seven-year senior secured covenant-lite first-lien term loan B that was added earlier in the syndication process, according to a market source.

Additionally, pricing on the U.S. term loan was set at SOFR plus 475 basis points, the high end of the SOFR plus 450 bps to 475 bps talk, and the original issue discount firmed at 98, the wide end of the 98 to 98.5 talk, the source said.

Also, changes were made to MFN, the ratio-based incremental ratio, the non-loan party debt basket, and J-Crew and Chewy protections, Serta protection was added, the pick your poison debt basket was removed, and a provision was added for quarterly and annual management discussion and analysis.

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

The canceled euro term loan had been talked at Euribor plus 450 bps to 475 bps with a 0% floor and an original issue discount of 98 to 98.5.

Qlik hits secondary

On Thursday afternoon, Qlik’s term loan broke for trading, with levels quoted at 98 bid, 98½ offered, a trader added.

Morgan Stanley Senior Funding Inc., BMO Capital Markets, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., BofA Securities Inc., Citigroup Global Markets Inc., Mizuho and Bank of Nova Scotia are leading the deal that will be used to refinance the outstanding debt of Qlik and Talend and to pay related fees and expenses.

Closing is expected in late October or early November.

Qlik is a King of Prussia, Pa.-based data analytics company. Talend, a data integration and data management company, was acquired by Qlik in May.

Action starts trading

Action Holding’s $1.5 billion seven-year term loan B-4 freed to trade as well, with levels quoted at 99 5/8 bid, par 1/8 offered, a market source remarked.

Pricing on the term loan is SOFR plus 325 bps with a 0% floor, and it was sold at an original issue discount of 99.25. The debt has 101 soft call protection for six months.

During syndication, the term loan was upsized from $1 billion, pricing was cut from SOFR plus 350 bps and the discount was tightened from 99.

Bank of America, Barclays and Deutsche Bank are the left lead global coordinators and lead arrangers, with Bank of America the primary left lead. BNP Paribas, Citigroup, Rabobank and Goldman Sachs are global coordinators and lead arrangers. ABN Amro, Credit Agricole, Natixis, RBC and SMBC are lead arrangers. Rabobank is the administrative agent.

Proceeds, along with some surplus cash on the balance sheet, will be used by the European non-food discount retailer to fund a financing-related distribution and/or share buyback, to pay transaction fees and expenses, and to put cash on the balance sheet of the group and/or for general corporate purposes.

Ciena updated

Ciena finalized the original issue discount on its $1.17 billion seven-year term loan B (Baa3/BB+) at 99.75, the tight end of revised talk of 99.5 to 99.75 and tighter than initial talk of 99.5, according to a market source.

As before, the term loan is priced at SOFR plus 200 bps with a 0% floor, and has 101 soft call protection for six months.

Previously in syndication, the term loan was upsized from $670 million and pricing was set at the low end of the SOFR plus 200 bps to 225 bps talk.

Allocations are expected on Friday, the source added.

BofA Securities Inc., Deutsche Bank Securities Inc., JPMorgan Chase Bank, Wells Fargo Securities LLC, Citigroup Global Markets Inc. and MUFG are leading the deal that will be used to refinance the company’s existing term loan B due 2025 and, due to the recent upsizing, to refinance an existing term loan due 2030.

Ciena is a Hanover, Md.-based networking systems, services and software company.

Minimax Viking revised

Minimax Viking set pricing on its minimum $500 million term loan B due July 2028 at SOFR plus 275 bps, the low end of the SOFR plus 275 bps to 300 bps talk, and on its minimum €450 million term loan B due July 2028 at Euribor plus 325 bps, the low end of the Euribor plus 325 bps to 350 bps talk, and changed the original issue discount talk on both term loans to a range of 99.5 to 99.75, from 99, a market source said.

The U.S. term loan still has a 0.75% floor, the euro term loan still has a 0% floor, and both term loans (Ba3/BB-) still have 101 soft call protection for six months.

Recommitments for the U.S. term loan were due at 2 p.m. ET on Thursday, and recommitments for the euro term loan were due at 9 a.m. ET on Thursday, the source added.

Deutsche Bank is the global coordinator and physical bookrunner on the deal. UniCredit and Commerzbank are passive bookrunners.

The new debt will be used to amend and extend an existing $569 million term loan B due July 2025 and an existing €488 million term loan B due July 2025, and to pay transaction related fees and expenses.

Minimax is a Bad Oldesloe, Germany-based fire protection company.

KITO Crosby on deck

KITO Crosby set a lender call for 10 a.m. ET on Monday to launch a fungible $205 million incremental first-lien term loan due June 27, 2026, according to a market source.

Pricing on the term loan is SOFR plus 500 bps with a 0.5% floor.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to repay second-lien term loan borrowings.

Pro forma for the transaction, the first-lien term loan will total $533.35 million.

KITO Crosby is a manufacturer and marketer of highly engineered equipment and solutions used in lifting, rigging and custom material handling solutions.

Loan indices mixed

In other news, IHS Markit’s iBoxx loan indices were mixed on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day unchanged and the Liquid Leveraged Loan indices (LLLi) closing down 0.03%.

Month to date, the MiLLi is up 0.18% and year to date it is up 10.03%, and the LLLi is up 0.23% month to date and up 9.32% year to date.

Average secondary market bids in the United States on Wednesday were 93.03, unchanged from the previous day and up 1.26% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Air Methods’ April 2017 covenant-lite term loan B at 28.31, up from 26.83, Plaskolite’s April 2021 covenant-lite term loan at 97.03, up from 95.88, and Olaplex’s February 2022 covenant-lite term loan at 85.94, up from 85.25.

Some top decliners on Wednesday were Xplornet’s October 2021 covenant-lite term loan at 69.5, down from 78.09, R1 RCM’s June 2022 term loan B at 98, down from par, and Research Now/Survey Sampling’s December 2017 second-lien covenant-lite term loan B at 38.21, down from 38.88.

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