Telenet, INAP break; Caesars Entertainment, Patheon, Clarivate, Cotiviti changes emerge

By Sara Rosenberg

New York, April 3 – Telenet upsized its U.S. term loan and finalized the spread at the high end of guidance, and then the loan freed up for trading on Monday, and INAP (Internap Corp.) emerged in the secondary market too.

Also, Caesars Entertainment Operating Co. LLC lowered pricing on its term loan B, Patheon (Delta Dutch Newco BV) raised pricing on its U.S. term loan and added a step-down, and Clarivate Analytics (Camelot Finance LP) lifted the spread on its term loan while adding a step-down.

Furthermore, Cotiviti Holdings Inc. increased pricing on its term loan, USI Insurance Services accelerated the commitment deadline on its term loan, and Sequa Corp., Tecomet (TecoStar Holdings Inc.), CityCenter Holdings LLC, Casella Waste Systems Inc. and Vertafore Inc. (VF Holding Corp.) disclosed price talk with launch.

Additionally, Qlik Technologies Inc., U.S. TelePacific Corp., Rhodia Acetow, Blount International Inc., Serta Simmons Bedding, Magnolia, Kemet Corp. and Grosvenor Capital Management joined this week’s primary calendar.

Telenet reworked, trades

Telenet upsized its term loan AI due June 2025 to $1.8 billion from a revised amount of $1.5 billion and an initial amount of $1 billion and set pricing at Libor plus 275 basis points, the high end of the Libor plus 250 bps to 275 bps talk, a market source remarked.

The company is also getting a euro term loan AH due March 2026, and pricing on this tranche firmed at Euribor plus 300 bps, the wide end of the Euribor plus 275 bps to 300 bps talk, the source continued.

Both term loans still have a 0% floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Recommitments were due at 1 p.m. ET on Monday, and later in the day, the U.S. term loan broke for trading with levels quoted at par bid, par ¼ offered, another source added.

J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Rabobank, RBC Capital Markets, NatWest and the Bank of Nova Scotia are leading term loan AI, and BNP Paribas, JPMorgan, Deutsche Bank, Rabobank, RBC, NatWest and Societe Generale are leading the term loan AH. Scotia is the administrative agent on both loans (NA/NA/BB).

Mechelen, Belgium-based cable operator, Telenet, will use the new loans to refinance existing debt.

INAP frees up

INAP’s credit facilities (B3/B+) allocated and broke for trading too, with the $300 million first-lien term loan due April 2022 quoted at 99¼ bid, par ¼ offered, according to a trader.

Pricing on the term loan is Libor plus 700 bps with a 1% Libor floor, and it was sold at an original issue discount of 98.5. The debt has 101 soft call protection for one year.

During syndication, the discount on the term loan was modified from 98.

The company’s $325 million in credit facilities (B3/B+) also include a $25 million revolver.

Jefferies Finance LLC is leading the deal that will be used to refinance existing debt.

INAP is an Atlanta-based provider of IT Infrastructure solutions.

Caesars flexes lower

Back in the primary market, Caesars trimmed pricing on its $1,235,000,000 seven-year covenant-light term loan B to Libor plus 250 bps from talk of Libor plus 275 bps to 300 bps, according to a market source.

As before, the term loan has a 0% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months and a ticking fee of half the margin from days 31 to 90 and the full margin thereafter.

The company’s $1,435,000,000 in senior secured credit facilities (Ba3/BB) also include a $200 million five-year revolver.

Recommitments were due at 5 p.m. ET on Monday and allocations are expected on Tuesday, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are leading the deal that will be used for exit financing, including to repay existing debt.

Caesars, a Las Vegas-based casino-entertainment company, will have total opco debt of 2.8 times and net opco debt of 2.1 times. Total lease adjusted debt is 5.8 times and net lease adjusted debt is 5.5 times.

Patheon tweaks pricing

Patheon raised pricing on its $1,136,000,000 covenant-light term loan (B2/B) due April 2024 to Libor plus 325 bps from Libor plus 275 bps and added a 25 bps step-down upon a B2 rating with stable outlook, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

The company is also getting a €464 million covenant-light term loan (B2/B) due April 2024 that is priced at Euribor plus 300 bps with a 1% floor and a discount of 99.75, and has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance an existing U.S. term loan priced at Libor plus 325 bps with a 1% Libor floor and an existing euro term loan priced at Euribor plus 350 bps with a 1% floor, and extend their maturities from 2021.

Patheon is a Durham, N.C.-based provider of outsourced pharmaceutical development and manufacturing services.

Clarivate modified

Clarivate Analytics increased pricing on its $1,542,000,000 covenant-light first-lien term loan (B2/BB-) due October 2023 to Libor plus 350 bps from talk of Libor plus 300 bps to 325 bps and added a 25 bps step-down subject to a B2 corporate rating with a stable outlook, a market source remarked.

The term loan still has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 375 bps with a 1% Libor floor.

Clarivate, formerly known as Thomson Reuters’ Intellectual Property & Science (IP&S) business, is a Philadelphia-based provider of comprehensive intellectual property and scientific information, decision support tools and services.

Cotiviti ups spread

Cotiviti widened pricing on its $548.6 million term loan B due September 2023 to Libor plus 250 bps from Libor plus 225 bps, a market source said.

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

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan B.

Cotiviti is an Atlanta-based payment accuracy provider.

USI moves deadline

USI Insurance Services accelerated the commitment deadline on its $1,795,000,000 seven-year term loan B to 5 p.m. ET on Tuesday from Wednesday, according to a market source.

The term loan is talked at Libor plus 325 bps with a step-down to Libor plus 300 bps at 4.5 times net first-lien leverage, a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $1,995,000,000 in senior secured credit facilities (B3/B) also include a $200 million revolver.

Bank of America Merrill Lynch, KKR Capital Markets, Citigroup Global Markets Inc. and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by KKR and Caisse de depot et placement du Quebec from Onex Corp. in a transaction that values the company at $4.3 billion.

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

USI is a Valhalla, N.Y.-based insurance brokerage and consulting firm.

Sequa discloses talk

Sequa held its bank meeting on Monday, and with the event, price talk on its $600 million 4.5-year covenant-light first-lien term loan B (NA/NA/B) and $350 million five-year covenant-light second-lien term loan (NA/NA/CCC) was announced, a market source said.

Talk on the first-lien term loan is Libor plus 575 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and talk on the second-lien term loan is Libor plus 1,000 bps to 1,050 bps with a 1% Libor floor, a discount of 98 and call protection of non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, the source continued.

The company’s $1,085,000,000 in senior secured credit facilities also includes a $135 million revolver (NA/NA/B).

Commitments are due at 1 p.m. ET on April 13, the source added.

Barclays is the left lead on the deal that will be used with $300 million in first-lien senior secured bonds for a recapitalization/refinancing of existing debt.

Sequa is a Palm Beach Gardens, Fla.-based aerospace and diversified industrial company.

Tecomet releases guidance

Tecomet came out with talk of Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99 on its $540 million seven-year first-lien term loan that launched with a bank meeting during the session, according to a market source.

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

Commitments are due on April 17, the source said.

The company’s $835 million credit facilities also include a $70 million ABL revolver and a $225 million pre-placed second-lien term loan.

Jefferies Finance LLC, Antares Capital and KKR Capital are leading the deal that will be used to help fund the buyout of the company by Charlesbank Capital Partners.

First-lien leverage is 4.5 times, and total leverage is 6.4 times.

Tecomet is a Wilmington, Mass.-based provider of high precision manufacturing solutions serving global medical device and aerospace and defense original equipment manufacturers.

CityCenter launches

CityCenter hosted a lender call in the afternoon to launch a $1.6 billion term loan at talk of Libor plus 275 bps with a 0.75% 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 on Friday, the source said.

The company is also seeking an upsized $125 million revolving credit facility.

Bank of America Merrill Lynch is leading the deal (BB-) that will be used to refinance an existing term loan, to fund a $350 million dividend and to pay related fees and expenses.

CityCenter, which is 50% owned by a wholly owned subsidiary of MGM Resorts International and 50% owned by Infinity World Development Corp, is an urban mixed-use development on the Las Vegas Strip.

Casella details emerge

Casella Waste Systems launched on its morning lender call a $350 million term loan B talked at Libor plus 275 bps with a step-down to Libor plus 250 bps when consolidated net leverage is 3.75 times, no Libor floor, a par issue price and 101 soft call protection for six months, according to sources.

Commitments are due on Friday, sources added.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are leading the deal that will be used to reprice an existing term loan from Libor plus 300 bps with a step-down to Libor plus 275 bps with consolidated net leverage is 3.75 times and a 1% Libor floor.

Casella is a Rutland, Vt.-based solid waste, recycling and resource management services company.

Vertafore comes to market

Vertafore launched in the morning a $60 million incremental covenant-light first-lien term loan due June 2023 and asked lenders for commitments by 5 p.m. ET, a market source.

Talk on the incremental loan is Libor plus 325 bps with a 1% Libor floor and a par issue price, and it has the same call protection as the company’s existing first-lien term loan, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used for general corporate purposes, including acquisitions.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

Qlik joins calendar

In more primary happenings, Qlik Technologies emerged with plans to hold a lenders’ presentation at 11 a.m. ET on Tuesday to launch $1.07 billion in senior secured credit facilities (B), a market source said.

The facilities consist of a $75 million revolver and a $995 million term loan B, the source added.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Lending Partners LLC are leading the deal that will be used to refinance existing debt.

Qlik is a Radnor, Pa.-based visual analytics company.

U.S. TelePacific on deck

U.S. TelePacific set a lender call for 11 a.m. ET on Tuesday to launch $680 million in credit facilities (B3/B), according to a market source.

The facilities consist of a $25 million revolver and a $655 million six-year first-lien term loan B that has a 1% Libor floor and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on April 13.

Credit Suisse Securities (USA) LLC is leading the deal, which will be used to refinance existing debt.

U.S. TelePacific is a Los Angeles-based provider of managed services and business communications solutions.

Rhodia readies deal

Rhodia Acetow scheduled a bank meeting in New York for Wednesday and a bank meeting in London for Thursday to launch €630 million-equivalent in credit facilities (B1/B+), a market source remarked.

The facilities consist of a €65 million five-year revolver, a €367 million U.S. dollar equivalent seven-year covenant-light term loan and a €198 million seven-year covenant-light term loan, the source continued.

Commitments are due at 5 p.m. ET on April 19.

Credit Suisse, Barclays, Deutsche Bank, Goldman Sachs, UBS, RBS and Bank of America Merrill Lynch are leading the deal that will be used to help fund the buyout of the company by Blackstone.

Rhodia is a producer of cellulose acetate flakes and acetate tow.

Blount coming soon

Blount International will hold a lender call at 11 a.m. ET on Tuesday to launch a repricing of its $471.4 million term loan B due April 12, 2023, according to a market source.

Barclays is leading the deal.

Blount is a Portland, Ore.-based manufacturer and marketer of outdoor power equipment.

Serta repricing

Serta Simmons Bedding scheduled a lender call for 2 p.m. ET on Tuesday to launch a repricing of its first-lien term loan B from Libor plus 350 bps with a 1% Libor floor, a market source said.

UBS Investment Bank is the left lead on the deal.

At closing last year, the term loan B was sized at $1.95 billion.

Serta, an Advent International portfolio company, is an Atlanta-based manufacturer and distributor of mattresses.

Magnolia sets meeting

Magnolia will hold a bank meeting on Wednesday to launch $390 million in credit facilities, according to a market source.

The facilities consist of a $40 million revolver and a $350 million seven-year term loan B, the source said.

Macquarie Capital (USA) Inc. is leading the deal that will be used with equity to fund the buyout of Harris Corp.’s government IT services business by Veritas Capital Fund Management LLC for $690 million.

Closing is expected in the second quarter, subject to regulatory review and other customary conditions.

Magnolia is a Herndon, Va.-based provider of communications, engineering and IT solutions for intelligence, defense and federal civilian customers.

Kemet refinancing

Kemet Corp. scheduled a meeting for Tuesday to launch a $345 million senior secured covenant-light term loan B (B3/B), a market source said.

Bank of America Merrill Lynch is leading the deal that will be used to help refinance notes due 2018.

Kemet is a Simpsonville, S.C.-based supplier of electronic components.

Grosvenor plans add-on

Grosvenor Capital Management set a lender call for 11 a.m. ET on Wednesday to launch a $90 million add-on first-lien term loan due 2023, according to a market source.

Goldman Sachs Bank USA and UBS Investment Bank are leading the deal that will be used with cash on balance sheet to refinance the company’s existing senior secured term loan due 2021.

Grosvenor Capital is a Chicago-based independent alternative asset management firm.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.