Riverbed Technology, DBRS, Vogue International free to trade; Nord Anglia Education revises deal

By Sara Rosenberg

New York, Feb. 25 – Riverbed Technology Inc. upsized its term loan for a second time and then broke for trading on Wednesday afternoon with levels seen above the debt’s original issue discount, and DBRS hit the secondary as well.

In more happenings, Vogue International tightened the original issue discount on its add-on term loan and then it too freed to trader, and Nord Anglia Education Inc. increased the size of its add-on loan while also modifying the offer price.

Riverbed tweaks size

Riverbed Technology lifted its seven-year first-lien term loan size to $1,625,000,000 from a revised amount of $1,575,000,000 and an initial amount of $1,525,000,000, according to a market source.

On the flip side, the company’s bond offering was downsized on Wednesday to $525 million from a revised amount of $575 million and from $625 million when the first term loan upsizing was announced.

As before, the term loan is priced at Libor plus 500 basis points with a step-down to Libor plus 475 bps based on total first-lien leverage, a 1% Libor floor and an original issue discount of 99½, and includes 101 soft call protection for six months.

At the time of the first term loan size change, the spread on the term loan was cut from Libor plus 525 bps, the step-down was added and the discount was tightened from 98½.

The company’s now $1,725,000,000 senior secured credit facility (B1/B) also provides for a $100 million five-year revolver.

Riverbed starts trading

With final terms in place, Riverbed’s credit facility made its way into the secondary market, with the term loan quoted at par ¼ bid, par ¾ offered on the break and then it moved up to par ½ bid, 101 offered, a trader remarked.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Barclays and Morgan Stanley Senior Funding Inc. are leading the bank deal that will be used with the bonds, $614 million of cash on the balance sheet and $1,625,000,000 of equity to fund the buyout of the company by Thoma Bravo LLC and Teachers’ Private Capital for $21.00 per share in cash, or a total of about $3.6 billion.

Closing is expected in the first half of this year, subject to stockholder approval, regulatory approvals and other customary conditions. There are no financing conditions for the transaction.

Riverbed is a San Francisco-based technology company that specializes in improving the performance of networks and networked applications.

DBRS breaks

DBRS’ credit facility broke for trading too, with the $225 million seven-year first-lien covenant-light term loan seen by one source at 99½ bid, par offered and by another source at 99 5/8 bid, par 1/8 offered.

Pricing on the term loan is Libor plus 525 bps with a 1% Libor floor and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, the term loan was downsized from $250 million due to the U.S./Canadian dollar exchange rate moving in issuer’s favor.

The company’s $275 million credit facility also includes a $50 million five-year revolver.

Credit Suisse Securities (USA) LLC, UBS AG and TD Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the Toronto-based credit rating agency by the Carlyle Group and Warburg Pincus.

Closing is expected this quarter.

Vogue updates OID, trades

Vogue International changed the original issue discount on its $205 million add-on term loan (B2) to 99½ from 99, while keeping pricing at Libor plus 475 bps with a 1% Libor floor and the 101 soft call protection for one year unchanged, according to a market source.

Commitments were due at noon ET on Wednesday and later in the day, the debt hit the secondary market with levels quoted at par bid, 101 offered, a trader said.

Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to fund a dividend.

Vogue is a Tampa Bay, Fla.-based manufacturer and distributor of salon-heritage hair care and other personal care products.

Nord Anglia changes emerge

In other news, Nord Anglia Education increased its fungible add-on term loan to $150 million from $125 million and tightened the original issue discount to 99 from 98¾, a market source said, adding that pricing remained at Libor plus 350 bps with a 1% Libor floor.

The spread and floor on the add-on term loan matches existing term loan pricing.

Commitments were due at 5 p.m. ET on Wednesday.

Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are leading the deal that will be used to fund the acquisition of four schools in Vietnam.

Nord Anglia Education is a Hong Kong-based operator of schools.

US LBM wraps at talk

US LBM completed syndication of its $100 million tack-on senior secured term loan due May 2020 in line with talk of Libor plus 700 bps with a 1% Libor floor, an original issue discount of 98, and call protection of 102 through November 2015, then 101½ for a year and 101 for the following year, market sources said.

The spread and the floor on the tack-on term loan matches existing term loan pricing.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund an acquisition and repay ABL facility borrowings.

The tack-on loan allocated on Tuesday and, on the break, was quoted at 98 bid, 99 offered, sources added.

US LBM is a Green Bay, Wis.-based owner of building material distribution businesses.

© 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.