LEVERAGED LOANS
UNITED STATES
ENERGIZER TAPS FOR SPECTRUM BUYBattery maker ENERGIZER HOLDINGS has
received debt commitments from Barclays
and JP Morgan to back its acquisition of
Spectrum Brands’ battery and portable
lighting business.
The company announced it would buy the
unit, which includes brands Rayovac and
Varta, for US$2bn in cash.
The deal comes two weeks after Spectrum
said it was exploring strategic options for its
global batteries and appliances businesses.
&INANCINGûWILLûINCLUDEû53BNûOFûlRST
lien loans, split between a US$400m
revolving credit facility and a US$1.64bn
TERMûLOANûANDûAû53MûUNSECUREDûBRIDGEû
loan that will be permanently replaced with
unsecured notes. Energizer will also use
roughly US$250m of cash on hand to fund
the deal.
JP Morgan will lead and act as agent on
the revolving credit facility and term loan,
while Barclays will lead the bridge.
Spectrum said it was still actively marketing
its appliances business, which includes brands
such as George Foreman cookware and
Remington grooming products.
The company’s battery and portable
lighting business generated revenue of
53MûINû ûACCOUNTINGûFORûûOFû
total revenue. The unit posted last 12
months’ Ebitda of US$169m.
Spectrum said the sale will allow it to
focus on its remaining businesses, which
span hardware, auto care and pet and
gardening products.
Spectrum said it expects to use proceeds
to pay down debt, reinvest in its core
businesses both organically and through
bolt-on acquisitions, and repurchase shares.
A bank syndicate including Bank of America
Merrill Lynch, JP Morgan, Barclays, Citibank and
Goldman Sachs are providing committed debt
lNANCINGûFORûlNANCIALûTECHNOLOGYûlRMû
BLACKHAWK NETWORK HOLDINGS’ take-private by
Silver Lake Partners and P2 Capital.
4HEûlNANCINGûWILLûCOMPRISEûAû53Mû
REVOLVINGûCREDITûFACILITY ûAû53BNûlRST
lien term loan, and a US$400m second-lien
term loan.
Silver Lake and P2 are buying Blackhawk
for an enterprise value of approximately
US$3.5bn.
The new sponsors have committed an
AGGREGATEû53BNûOFûEQUITY
Windscreen wiper manufacturer TRICO
PRODUCTS CORP is in the market with a
53MûSEVEN
YEARûlRST
LIENûTERMûLOAN ûLEDû
by Goldman Sachs.
0RICEûTALKûONûTHEûRElNANCINGûISûBPûOVERû
,IBORûWITHûAûûmOORûANDûAûûDISCOUNT
Lenders are offered 12 months of soft call
protection at 101. The loan will amortise at
ûPERûYEARûANDûINCLUDESûAûûTIMESûTOTALû
net leverage covenant.
Proceeds will be used to take out a
privately placed term loan.
0RIVATEûEQUITYûlRMû#ROWNEû'ROUPû
acquired Trico from Kohlberg & Co in 2014.CONVERGINT SEEKS US$861m LBO DEALSecurity systems company CONVERGINT
TECHNOLOGIES has launched a US$861m loan
TOûBACKûITSûBUYOUTûBYûPRIVATEûEQUITYûlRMû
Ares.
Credit Suisse is leading the transaction,
WHICHûCOMPRISESûAû53MûSEVEN
YEARû
lRST
LIENûTERMûLOAN ûAû53MûEIGHT
YEARû
SECOND
LIENûTERM ûANDûAû53MûREVOLVINGû
CREDITûFACILITYû4HEûlRST
LIENûTERMûLOANû
includes a US$40m delayed-draw
component.
First-lien loan pricing is guided at 350bp
OVERû,IBORûWITHûAûû,IBORûmOORûANDûû
OID. Second-lien pricing is expected at
BPûOVERû,IBORûWITHûAûû,IBORûmOORû
and 99 discount.
4HEûlRST
LIENûLOANûWILLûHAVEûSIXûMONTHSûOFû
soft call protection at 101 while the second-
lien loan will have hard call protection of
102/101.
#ORPORATEûRATINGSûAREû""
ûlRST
LIENûLOANû
ratings are B2/B and second-lien loan ratings
are Caa2/CCC.
The delayed draw portion has no ticking
FEEûUNTILûDAYSû
ûATûHALFûOFûTHEûMARGINû
ANDûTHENûDAYSûûANDûGREATERûATûTHEûFULLû
margin.
FEECO, the fee business of insurance
COMPANYû!M4RUST ûISûLININGûUPû53Mû
OFûLOANSûTOûSUPPORTûPRIVATEûEQUITYûlRMû
Madison Dearborn Partners’ purchase of a
51% stake in the unit.
Bank of America Merrill Lynch is leading with
Deutsche Bank, Barclays, Jefferies and CIBC.
The covenant-lite deal comprises a
53MûSEVEN
YEARûlRST
LIENûTERMûLOANû
and a US$210m eight-year second-lien term
loan.
Guidance opened at 450bp over Libor
WITHûAûûmOORûANDûAûDISCOUNTûOFûûONûTHEû
lRST
LIENûLOANûANDûATûBPûOVERû,IBORûWITHûAû
ûmOORûANDûAûDISCOUNTûOFûûONûTHEû
second-lien loan.
4HEûlRST
LIENûLOANûINCLUDESûSIXûMONTHSûOFû
soft call protection at 101 while the second-
lien loan includes hard call protection of
102/101.
4HEûISSUERûISûRATEDû""
û4HEûlRST
LIENû
loan is rated B2/B-, while the second-lien
loan is rated Caa2/CCC.Madison Dearborn is paying
approximately US$950m for its stake in the
fee business.
Hardware retailer HARBOR FREIGHT TOOLS has
lowered pricing on its US$2.16bn term loan
due in August 2023.
Credit Suisse led the deal, which priced at
BPûOVERû,IBORûWITHûAûûmOORû4HEûLOANû
was priced at 325bp over Libor with a 25bp
stepdown when net leverage drops to three
times.
The repricing will refresh soft call
protection of 101 for six months.
The company lined up the loan in August
2016 to back a dividend recapitalisation.
The corporate rating and the debt rating
are both Ba3/BB-.MEDRISK MARKETS US$705m DEALOutpatient medical services provider MEDRISK
HASûLAUNCHEDûAû53MûACQUISITIONûLOANû
backing the company’s sale to The Carlyle
Group from TA Associates.
Jefferies, Antares Capital, Barclays and
Nomura are arranging the transaction.
4HEûFUNDINGûCOMPRISESûAû53MûlVE
year revolver, a US$445m seven-year
lRST
LIENûTERMûLOANûANDûAû53MûEIGHT
year second-lien term loan.
First-lien term loan pricing is guided at a
range of 325bp-350bp over Libor with a 0%
mOORû4HEûLOANûISûOFFEREDûATûAûû/)$ûANDû
has 101 soft call protection for six months.
Second-lien term loan pricing is set at
BP
BPûOVERû,IBORûWITHûAûûmOORû4HEû
discount is guided at 99 and the loan is
callable at 102 in year one, then at 101 in
year two.
4HEûlRST
LIENûTRANCHEûWILLûHAVEûûSOFTû
call protection for six months, while the
second-lien term loan will be callable at 102
in year one, then at 101 in year two.
Carlyle announced an agreement to
ACQUIREûAûMAJORITYûSTAKEûINû-ED2ISKû!SûPARTû
of the transaction, MedRisk’s founder,
Shelley Boyce, along with CEO Mike Ryan,
and other members of company
management, will retain a minority equity
stake. Financial terms of the acquisition
were not disclosed.
Cloud-based marketing company MARKETO
ISûMARKETINGû53MûOFûLOANSûTOûRElNANCEû
debt and add cash to its balance sheet.
Morgan Stanley is leading with Citigroup,
Golub, Jefferies, Macquarie, Bank of America
Merrill Lynch and Nomura.
The transaction is split between a
53MûSEVEN
YEARûlRST
LIENûTERMûLOANûANDû
Aû53MûlVE
YEARûREVOLVINGûCREDITûFACILITY
"OTHûAREûGUIDEDûATûAûRANGEûOFûBP
BPû
OVERû,IBORûWITHûû,IBORûmOORS
The term loan is offered at a 99.5 OID, has
101 soft call protection for six months and is
expected to amortise at annual rate of 1%.