LevFin Insights BDC Portfolio News – November 25, 2019Posted on November 25, 2019
Viant Medical bypasses liquid market for 1L incremental financing; 2L debtholders include AINV, CION
With the window closing to launch new business in the waning weeks of 2019, arrangers focused on cleaning up business, notably the extended syndication of Vision Integrated Graphics Group’s incremental term debt, which cleared wide of terms that were originally indicated. BNP Paribas last week wrapped syndication of the deal as a $75 million non-fungible incremental term loan. The term loan due June 2025 was finalized at L+625 with a 1% floor at 96, with six months of 101 soft call protection. The deal was originally launched in early October as a $90 million fungible add-on to the issuer’s existing term loan due June 2025 (L+625), offered at 99.
Vision Integrated Graphics, an H.I.G. Capital- controlled provider of tech-enabled marketing services, will use proceeds to back the acquisition of Chicago-based marketing concern SourceLink from Aterian Investment Partners. As before, the issuer also is placing $5 million of additional revolver (L+525, 1% floor). An undisclosed amount of incremental mezzanine debt is being placed privately, sources noted.
BNP syndicated the original $75 million term loan earlier this year. The loan is governed by a net leverage covenant and is not rated. Based in Bolingbrook, Ill., Vision provides personalized, turnkey marketing solutions in the financial services, insurance, healthcare, retail and automotive segments.
Portfolios in brief: Holds reflect most recent reporting period available
AINV, CION: Viant Medical (Caa1/B-) — incremental, repayment
Following on the heels of PetVet’s recent privately placed first-lien incremental loan, Viant Medical (formerly MedPlast) recently disclosed to its lenders that it inked a privately placed $75 million incremental first-lien term loan. Proceeds from the new L+625 paper, which is coterminous with the existing first-lien term loan due July 2025, were used to repay revolver borrowings and some second-lien term debt (L+775). Moody’s noted in a September report the company, which provides outsourced medical-device manufacturing services, had nearly fully drawn its revolver. Holders of the existing 2L term debt include Apollo Investment Corp. with $8 million in principal amount and CION Investment Corp. with $6.75M.
Audax, BDVC, NMFC, OCSL: Waystar (B3/B-) — add-on, M&A
Investors received allocations of Waystar’s $100 million add-on term loan (L+400), which was issued at 99.25. J.P. Morgan was left lead on the transaction, which priced tight to talk. Proceeds will fund the company’s acquisition of Recondo. The add-on is fungible with the existing term loan issued in September to back EQT and Canada Pension Plan Investment Board’s planned acquisition of a majority stake in the business from Bain Capital. Waystar, also known as Navicure, provides cloud-based healthcare claims management, paper statements and patient payment services. Audax Credit BDC holds $3.44M in principal amount of the company’s existing 1L debt. Holders of the existing 2L debt due October 2025 (L+750) include Business Development Corp. of America with $1.34M in principal amount, New Mountain Finance with a combined $21.97M and Oaktree Specialty Lending Corp. with $14.5M.
BBDC: Alight Solutions (B2/B) — add-on/M&A
Investors received allocations of Alight Solutions (fka Tempo Acquisition)’s $105 million add-on term loan (L+300), which was issued at 99.875. BofA Securities was left lead on the loan, which priced tight to talk with a $15 million upsize. Proceeds will fund the issuer’s acquisition of NGA Human Resources. The issuer was formed in 2017 via Blackstone’s $4.8 billion purchase of Aon Hewitt’s technology-enabled benefits and human resources platform. Barings BDC holds $5.6M in principal amount of the existing 1L debt.
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