Confie, Sandvine, HealthChannels break; Gray, Thor, Syncsort, Natgasoline, Entegris update

By Sara Rosenberg

New York, Oct. 31 – Confie Seguros Holding II Co. set pricing on its second-lien term loan at the low side of talk and widened the original issue discount before freeing up for trading, and Sandvine Corp. and HealthChannels (ScribeAmerica Intermediate Holdco LLC) hit the secondary market as well.

In more happenings, Gray Television Inc. firmed the spread on its incremental term loan B at the high end of guidance and tightened the original issue discount, Thor Industries Inc. reworked U.S. and euro term loan sizes, spreads, issue prices and call protection, and Syncsort Inc. finalized pricing on its term loan B at the wide side of talk.

Also, Natgasoline LLC trimmed the spread on its term loan B and set the issue price at the tight end of guidance, Entegris Inc. increased the size of its term loan B and Cyanco Intermediate 2 Corp. adjusted the issue price on its incremental first-lien term loan.

Additionally, KORE Wireless Group Inc. and NVA Holdings Inc. announced price talk with launch, and Edgewater Generation (Spade Facilities II LLC), Odyssey Logistics & Technology Corp. and Celestica Inc. joined this week’s primary calendar.

Confie updated, trades

Confie Seguros set pricing on its $220 million seven-year second-lien term loan (Caa2/CCC) at Libor plus 850 basis points, the low end of the Libor plus 850 bps to 875 bps talk, and moved the original issue discount to 98 from 98.5, according to a market source.

As before, the term loan has a 0% Libor floor and hard call protection of 102 in year one and 101 in year two.

The second-lien term loan freed to trade on Wednesday afternoon and levels were quoted at 98½ bid, 99½ offered, another source added.

Goldman Sachs Bank USA and Barclays are leading the deal that will be used with new preferred equity to refinance an existing second-lien term loan and partially repay revolver and first-lien term loan borrowings.

Closing is expected this week.

Confie Seguros is a Huntington Beach, Calif.-based personal lines and small to midsize commercial insurance broker.

Sandvine hits secondary

Sandvine’s $400 million seven-year first-lien term loan (B2/B-) began trading too, with the debt quoted at par bid, according to a market source.

Pricing on the term loan is Libor plus 450 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.

The company’s $540 million of credit facilities also include a $30 million five-year revolver (B2/B-) and a $110 million privately placed second-lien term loan (CCC+).

Jefferies LLC, UBS Investment Bank and Societe Generale are leading the deal that will be used to refinance existing debt and fund a distribution to shareholders.

Closing is expected on Friday.

Sandvine is a Waterloo, Ont.-based provider of active network intelligence solutions for network operators and enterprises.

HealthChannels tops OID

HealthChannels’ fungible $135 million incremental first-lien term loan (B3/B) due April 3, 2025 also broke, with levels seen at 99½ bid, par ½ offered, a market source said.

Pricing on the incremental term loan matches existing term loan pricing at Libor plus 450 bps with a 0% Libor floor. The incremental loan was sold at an original issue discount of 99 and has 101 hard call protection through April 2019.

Jefferies LLC and Capital One are leading the deal that will be used to fund the acquisition of PhysAssist Scribes, a Fort Worth-based provider of medical scribes to hospitals and medical practices.

HealthChannels is a Fort Lauderdale, Fla.-based medical scribing, care coordination and real-time coding services company.

Gray updates emerge

Back in the primary market, Gray Television firmed pricing on its $2.15 billion seven-year incremental covenant-light term loan B (Ba2/BB/BB+) at Libor plus 250 bps, the wide end of the Libor plus 225 bps to 250 bps talk, and revised the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

Recommitments are due at 10 a.m. ET on Thursday, the source said.

Wells Fargo Securities LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBC Capital Markets are the lead arrangers on the debt.

The company is also getting a $200 million five-year revolving credit facility that is pari passu with the term loan to replace its existing $100 million priority revolver due February 2022.

Gray buying Raycom

Gray Television will use the incremental term loan to help fund the acquisition of Raycom Media Inc. and refinance debt.

Raycom is being bought for $3,647,000,000 in total proceeds, consisting of $3,547,000,000 in enterprise value and $100 million of Raycom cash. The consideration will consist of $2.85 billion in cash, $650 million in a new series of preferred stock and 11.5 million shares of Gray common stock.

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

Pro forma first-lien net leverage will be around 3.5 times and total net leverage will be around 5.1 times.

Gray Television is an Atlanta-based television broadcast company. Raycom is a Montgomery, Ala.-based broadcaster and owner and operator of television stations.

Thor restructures

Thor Industries trimmed its U.S. seven-year term loan B to $1,515,000,000 from $1,866,000,000 and raised pricing to Libor plus 375 bps from talk in the range of Libor plus 300 bps to 325 bps, and lifted its euro seven-year term loan B to €675 million from €350 million while increasing pricing to Euribor plus 400 bps from talk in the range of Euribor plus 300 bps to 325 bps, according to a market source.

Additionally, the original issue discount on both term loans was modified to 99 from 99.5 and the 101 soft call protection was extended to one year from six months, the source said.

Both term loans still have a 0% floor.

J.P. Morgan Securities LLC, Barclays, BMO Capital Markets, U.S. Bank and Wells Fargo Securities LLC are leading the deal that will be used to help fund the acquisition of Erwin Hymer Group SE for about €2.1 billion in cash and equity.

Closing is expected near year-end, subject to customary conditions, including regulatory approvals.

Thor Industries is an Elkhart, Ind.-based manufacturer of recreational vehicles. Erwin Hymer is a Bad Waldsee, Germany-based manufacturer of recreational vehicles.

Syncsort finalizes terms

Syncsort firmed pricing on its $765 million covenant-light term loan B (B2/B-) due Aug. 16, 2024 at Libor plus 450 bps, the high end of the Libor plus 425 bps to 450 bps talk, and left the 0% Libor floor, original issue discount of 99.75 and 101 soft call protection for six months unchanged, a market source said.

Allocations are targeted for Thursday morning, the source added.

Bank of America Merrill Lynch is the left lead on the deal that will be used to reprice an existing term loan B.

Syncsort is a Pearl River, N.Y.-based enterprise software provider.

Natgasoline revised

Natgasoline lowered pricing on its $565 million seven-year term loan B (Ba3) to Libor plus 350 bps from Libor plus 375 bps and set the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source remarked.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to help refinance existing debt, to fund final construction costs for a new facility and for other general corporate purposes.

Natgasoline is a greenfield world scale methanol production complex in Beaumont, Texas, which is jointly owned by OCI and Consolidated Energy Ltd.

Entegris upsizes

Entegris raised its seven-year senior secured term loan B to $400 million from $200 million, and left talk at Libor plus 200 bps to 225 bps with a 0% Libor floor ,an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

The company’s now $700 million of credit facilities (Baa3/BBB-) also include a $300 million revolver.

Commitments remain due at 5 p.m. ET on Thursday, the source added.

Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., PNC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

Entegris is a Billerica, Mass.-based developer, manufacturer and supplier of microcontamination control products, specialty chemicals and advanced materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries.

Cyanco tweaked

Cyanco modified the issue price on its $75 million incremental covenant-light first-lien term loan (B2/B) due March 2025 to par from 99.75, a market source said.

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

Recommitments were due at noon ET on Wednesday and the loan allocated in the afternoon, the source added.

Deutsche Bank Securities Inc., RBC Capital Markets, Societe Generale and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to refinance existing debt.

Closing is expected during the week of Nov. 5.

Cyanco is a Pearland, Texas-based supplier of sodium cyanide used for the extraction of gold and silver.

KORE sets guidance

Also in the primary market, KORE Wireless Group held its bank meeting on Wednesday and announced price talk on its $250 million seven-year first-lien term loan (B2/B) and $90 million eight-year second-lien term loan (Caa2/CCC), according to a market source.

The first-lien term loan is talked at Libor plus 500 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 875 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source said.

The company’s $370 million of senior secured credit facilities also include a $30 million five-year revolver (B2/B).

Commitments are due on Nov. 14, the source added.

UBS Investment Bank is leading the deal that will refinance existing debt and fund an acquisition.

KORE Wireless, an ABRY Partners portfolio company, is an Alpharetta, Ga.-based provider of integrated software platform to enterprises to deploy, manage and optimize their IoT environments.

NVA reveals talk

NVA Holdings came out with original issue discount talk of 98.75 on its fungible $200 million add-on covenant-light first-lien term loan B-3 (B2/B) due Feb. 2, 2025 that launched with a morning call, a market source said.

Pricing on the add-on loan is Libor plus 275 bps, which matches existing term loan B-3 pricing.

Bank of America Merrill Lynch, RBC Capital Markets, Jefferies LLC and Nomura are leading the deal that will be used to fund acquisitions under signed letters of intent, to refinance revolver borrowings and to fund cash to the balance sheet for future acquisitions.

In addition, the company is seeking an amendment to its existing credit agreement.

Commitments and amendment consents are due at noon ET on Monday, the source added.

NVA is an Agoura Hills, Calif.-based owner of independent freestanding veterinary hospitals.

Edgewater joins calendar

Edgewater Generation set a bank meeting for 2:30 p.m. ET in New York on Thursday to launch a $900 million seven-year covenant-light first-lien term loan talked at Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Nov. 15, the source said.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to help fund the acquisition of the company by Starwood Energy.

Edgewater is a portfolio of two unregulated operational gas-fired combined-cycle gas turbines.

Odyssey readies loans

Odyssey Logistics will hold a bank meeting at 10 a.m. ET on Thursday to launch $377 million of fungible incremental term loans, a market source said.

The debt consists of a $307 million incremental first-lien term loan due October 2024, of which $50 million is a delayed-draw tranche that has six months availability and a 1% fee after 90 days, and a $70 million incremental second-lien term loan due October 2025.

Talk on the incremental first-lien term loan is Libor plus 375 bps to 400 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the incremental second-lien term loan is Libor plus 800 bps with a 1% Libor floor, a discount of 99 and 101 call protection through October 2019, the source continued.

Odyssey funding acquisition

Proceeds from Odyssey Logistics’ term loans will be used to fund the acquisition of AFF Global Logistics, a Fife, Wash.-based third-party logistics provider and freight forwarder.

Credit Suisse Securities (USA) LLC is the left lead on the debt.

Commitments are due at 5 p.m. ET on Nov. 15, the source added.

Closing is expected this year, subject to customary conditions.

Odyssey Logistics is a Danbury, Conn.-based provider of multi-modal transportation solutions and transportation management.

Celestica on deck

Celestica scheduled a lender call for 10:30 a.m. ET on Thursday to launch a $350 million non-fungible covenant-light term loan B due June 27, 2025, a market source remarked.

Bank of America Merrill Lynch is the left lead on the deal that will be used to fund the acquisition of Impakt Holdings LLC for $329 million from Graycliff Partners, to pay related fees and expenses, and for general corporate purposes.

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

Celestica is a Toronto-based designer and manufacturer of electronic components. Impakt is a Santa Clara, Calif.-based provider of manufacturing solutions for the display, semiconductor, solar and other capital equipment industries.

Belron sets deadline

In other news, Belron Finance US LLC outlined a commitment deadline of 5 p.m. ET on Monday for its proposed $455 million covenant-light term loan B (Ba3/BB) due November 2025, according to a market source.

As previously reported, the term loan, which launched with a Wednesday morning call, is talked at Libor plus 250 bps with a 0% Libor floor, an original issue discount of 99.25 to 99.5 and 101 soft call protection for six months.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the global coordinators on the deal and joint arrangers with BNP Paribas Securities Corp. and ING. JPMorgan is the administrative agent.

Proceeds will be used to finance a special distribution to shareholders.

Pro forma net leverage is 4.22 times.

Belron is a U.K.-based operator in the vehicle glass repair and replacement market.

EPIC allocates

Epic Y-Grade Services LP allocated its fungible $150 million incremental first-lien term loan B (B) due June 2025 in line with talk of Libor plus 550 bps with a 0% Libor floor and an original issue discount of 98, a market source remarked.

The spread and floor on the incremental loan matches the existing term loan B pricing.

UBS Investment Bank and Deutsche Bank Securities Inc. are leading the deal that will be used with additional contributed equity to fund the acquisition of the Robstown NGL fractionation facility located near Corpus Christi, Texas, from Southcross Holdings Borrower LP.

Closing is expected in November, subject to customary conditions, including regulatory approval.

EPIC was formed in 2017 to build, own and operate midstream infrastructure in both the Permian and Eagle Ford basins.

United Rentals closes

United Rentals (North America) Inc. completed its acquisition of BlueLine Rental from Platinum Equity for about $2.1 billion in cash, a news release said.

To help fund the transaction, United Rentals got a $1 billion seven-year covenant-light term loan B (Baa3/BBB-) priced at Libor plus 175 bps with a 0% Libor floor and issued at par. The loan has 101 soft call protection for six months.

During syndication, pricing on the term loan firmed at the low end of the Libor plus 175 bps to 200 bps talk and the issue price tightened from 99.75,

Bank of America Merrill Lynch, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Bank of Nova Scotia and MUFG led the deal.

United Rentals is a Stamford, Conn.-based equipment rental company. BlueLine is a provider of heavy industrial and construction equipment rentals.

Pixelle acquisition completed

The purchase of Pixelle Specialty Solutions LLC by Lindsay Goldberg from P.H. Glatfelter has closed, according to a news release.

To help fund the transaction, Pixelle got $260 million of credit facilities (B2/B-) that consist of a $40 million revolver and a $220 million six-year first-lien term loan B.

Pricing on the term loan B is Libor plus 600 bps with a 1% Libor floor and it was sold at an original issue discount of 97.5. The loan has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from Libor plus 550 bps, the discount widened from 98.5, the call protection was extended from six months and the maturity was shortened from seven years.

Credit Suisse Securities (USA) LLC and Citizens Bank are led the deal.

Pixelle is a manufacturer of specialty paper products used in various end-markets.

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