Value-Based Care Solutions frees to trade; MeridianLink first-lien loan wraps around par

By Sara Rosenberg

New York, July 3 – Value-Based Care Solutions’ credit facilities surfaced in the secondary market on Tuesday, and the first-lien term loan B was quoted above its original issue discount, and trading levels emerged on MeridianLink Inc./CRIF Lending Solutions’ recently allocated transaction.

Switching to the primary market, SimpliSafe Inc. joined next week’s new issue calendar.

Value-Based Care breaks

Value-Based Care Solutions’ credit facilities freed up on Tuesday, with the $600 million seven-year first-lien term loan B (B2/B) seen at 98¼ bid, 99¼ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 425 basis points with a 1% Libor floor, and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

During syndication, the spread on the first-lien term loan was increased from talk in the range of Libor plus 375 bps to 400 bps, pricing step-downs were removed, the discount was changed from 99.5, the call protection was extended from six months, the excess cash flow sweep was set at 75%, and the MFN, incremental, asset sale sweeps and EBITDA definition were revised.

The company’s $850 million of credit facilities also include a $75 million revolver (B2/B) and a $175 million privately placed second-lien term loan (Caa2/CCC+).

Goldman Sachs Bank USA, Barclays and Deutsche Bank Securities Inc. are leading the deal that will help fund the buyout of General Electric’s Value-Based Care Division by Veritas Capital for $1.05 billion in cash.

Closing is expected during the week of July 9.

Value-Based Care Solutions is a software provider that leverages technology and analytics to help health care providers effectively manage their financial, clinical and human capital workflows.

MeridianLink levels surface

MeridianLink/CRIF’s $315 million seven-year covenant-light first-lien term loan (B2/B/BB) was quoted at 99¾ bid, par ¼ offered on Tuesday after allocating during the previous session, a trader said.

Pricing on the first-lien term loan is Libor plus 400 bps with a step-down to Libor plus 375 bps at net first-lien leverage of 4.25 times and a 1% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for one year.

During syndication, pricing on the first-lien term loan was raised from Libor plus 350 bps, the step-down was added, the call protection was extended from six months, the MFN sunset was eliminated and a requirement was added for the company to hold annual lender calls.

The company’s $475 million of credit facilities also include a $35 million five-year revolver (B2/B/BB) and a $125 million eight-year privately placed second-lien term loan.

Antares Capital and Golub Capital are leading the deal that will be used to help fund the buyout of MeridianLink and CRIF by Thoma Bravo LLC.

Costa Mesa, Calif.-based MeridianLink and Atlanta-based CRIF provide mission-critical software platforms that allow financial institutions to automate loan and deposit origination workflows, improve loan decisioning and access data services providers.

SimpliSafe readies deal

Moving to the primary market, SimpliSafe emerged with plans to hold a lender meeting in Boston on July 12 to launch a $250 million credit facility, a market source remarked.

Capital One is leading the deal that will be used to help fund the acquisition of a controlling stake in the company by Hellman & Friedman.

SimpliSafe is provider of internet-based security services.

HALO allocates

In other news, HALO Branded Solutions allocated its $420 million of credit facilities that consist of a $50 million revolver due 2023, a $190 million first-lien term loan due 2025, an $80 million delayed-draw first-lien term loan due 2025 and a $100 million second-lien term loan due 2026.

Pricing on the first-lien term loan debt is Libor plus 450 bps with a 0% Libor floor and an original issue discount of 99, and pricing on the second-lien term loan is Libor plus 825 bps with a 0% Libor floor and a discount of 98.5.

During syndication, the funded first-lien term loan due 2025 was downsized from $205 million, the delayed-draw first-lien term loan was downsized from $90 million, pricing on the debt was increased from talk in the range of Libor plus 375 bps to 400 bps and the discount widened from 99.5. Also, the second-lien term loan was upsized from $75 million, pricing was lifted from Libor plus 800 bps and the discount was changed from 99. And, the MFN sunset and carve-outs were removed from the credit agreement.

Antares Capital, SunTrust Robinson Humphrey Inc., Citizens and KKR Capital Markets are leading the deal that will be used to help fund the buyout of the company by TPG Growth and management.

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

HALO is a Sterling, Ill.-based marketing services platform that distributes promotional products and provides employee recognition services.

Screenvision closes

Abry Partners completed its acquisition of a controlling stake in Screenvision LLC, a news release said. The company’s existing owners, Shamrock Capital and AMC Entertainment, maintained minority stakes.

To help fund the transaction, Screenvision got a new $175 million seven-year covenant-light first-lien term loan (B1/B) priced at Libor plus 475 bps with a step-down to Libor plus 450 bps at 2.75 times net first-lien leverage and a 0% Libor floor. The debt was sold at an original issue discount of 99 and has 101 soft call protection for one year.

During syndication, pricing on the loan was increased from talk in the Libor plus 400 bps area, the discount widened from 99.5 and the call protection was extended from six months.

Deutsche Bank Securities Inc. led the deal.

Screenvision is a New York-based provider of cinema advertising, on-screen advertising, in-lobby promotions and integrated marketing programs.

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