Pike, Global Payments, PGT break; Delek, Albea updated; Carlisle FoodService moves deadline

By Sara Rosenberg

New York, March 13 – Pike Corp.’s term loan B made its way into the secondary market on Tuesday and the debt was seen trading above its original issue discount, and Global Payments Inc. and PGT Inc. freed up as well.

Moving to the primary market, Delek US Holdings Inc. increased the size of its term loan B and trimmed the spread, Albea Beauty Holdings SA firmed pricing on its U.S. and euro term loans at the low end of guidance and tightened issue prices on the tranches, and Carlisle FoodService Products accelerated the commitment deadline on its first-lien term loan debt.

Also, EG Group, HelpSystems LLC, Prestige Brands Inc., Fogo de Chao Inc., Engility Corp., Lindblad Expeditions Inc. and Certara announced price talk with launch.

In addition, KBR Inc., Las Vegas Sands LLC, Loparex International Holding B.V., Freedom Mortgage Corp., Iron Mountain Inc. and LifeMiles Ltd. joined this week’s primary calendar.

Pike hits secondary

Pike’s $935 million seven-year senior secured covenant-light term loan B (B2/B) broke for trading on Tuesday, with levels seen at par ¼ bid, 101 offered, according to a trader.

Pricing on the term loan B is Libor plus 350 basis points with a 1% Libor floor and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

On Monday, pricing on the term loan was reduced from talk in the range of Libor plus 375 bps to 400 bps, and the discount was tightened from talk in the range of 99 to 99.5.

Morgan Stanley Senior Funding Inc., KeyBanc Capital Markets Inc., SunTrust Robinson Humphrey Inc. and Fifth Third Bank are leading the deal that will be used to refinance an existing term loan and preferred securities.

Closing is expected during the week of March 19.

Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.

Global Payments tops par

Global Payments’ $1,141,000,000 term loan B due April 22, 2023 began trading too, with levels quoted at par 1/8 bid, par 3/8 offered, a trader said.

Pricing on the loan is Libor plus 175 bps with a 0% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing term loan B down from Libor plus 200 bps with a 0% Libor floor.

Global Payments is an Atlanta-based provider of payment technology services.

PGT frees up

PGT’s roughly $224 million term loan B (B2/B+) also broke, with the debt quoted at par ½ bid, according to a market source.

Pricing on the term loan is Libor plus 350 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

On Monday, the spread on the loan was lowered from Libor plus 375 bps and the issue price for new money was changed from 99.75.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 475 bps with a 1% Libor floor.

PGT is a Venice, Fla.-based manufacturer and supplier of residential impact-resistant windows and doors.

Delek reworked

Switching to the primary market, Delek raised its seven-year covenant-light term B to $700 million from $650 million and cut pricing to Libor plus 250 bps from talk in the range of Libor plus 275 bps to 300 bps, according to a market source.

The term loan has no floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments were due at 5 p.m. ET on Tuesday, the source said.

Wells Fargo Securities LLC is leading the deal that will be used to refinance existing debt.

Delek is a Brentwood, Tenn.-based Permian-based integrated downstream energy company.

Albea tweaks deal

Albea Beauty finalized spreads on its $406 million first-lien term loan (B2/B) due April 2024 at Libor plus 325 bps, the tight end of the Libor plus 325 bps to 350 bps talk, and on its €385 million first-lien term loan (B2/B) due April 2024 at Euribor plus 350 bps, the low end of the Euribor plus 350 bps to 375 bps talk, and moved the issue price on both loans to par from 99.75, a market source remarked.

The U.S. term loan still has a 1% Libor floor, the euro term loan still has a 0% floor and both loans still have 101 soft call protection for six months.

Commitments are due at noon ET on Wednesday, the source added.

Credit Suisse and BNP Paribas are leading the deal that will be used to refinance existing U.S. and euro term loans due April 2024. BNP is the administrative agent.

Albea is a Paris-based maker of plastic packaging for beauty and personal care products.

Carlisle FoodService accelerated

Carlisle FoodService Products moved up the commitment deadline on its $320 million seven-year first-lien term loan (B2/B) and $75 million delayed-draw first-lien term loan (B2/B) to noon ET on Thursday from March 21, a market source said.

Talk on the first-lien term loan debt is Libor plus 325 bps to 350 bps with a 25 bps step-down at 0.5 times first-lien net leverage reduction, a 1% Libor floor and an original issue discount of 99.5.

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

The company’s $550 million of senior secured credit facilities also include a $50 million revolver (B2/B) and a $105 million privately-placed second-lien term loan.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Jefferies LLC are leading the deal that will be used with equity to fund the buyout of the company by Jordan Co. from Carlisle Cos. Inc. for $750 million in cash, subject to some adjustments.

Closing is expected this quarter, conditioned on regulatory clearances and customary conditions.

Carlisle FoodService Products is a manufacturer and marketer of professional-grade solutions for the restaurant, hospitality, healthcare and janitorial segments.

EG Group reveals talk

Also on the new deal front, EG Group disclosed price talk on its bank debt in connection with its London bank meeting on Tuesday, according to a market source. A bank meeting for U.S. investors will take place in New York at 10 a.m. ET on Wednesday.

The $150 million incremental multi-currency revolver (B2/B) due 2022 is talked at Libor/Euribor plus 300 bps with a 0% floor, the $1.7 billion incremental covenant-light term loan B (B2/B) due 2025 and €175 million incremental covenant-light term loan B (B2/B) due 2025 are talked at Libor/Euribor plus 400 bps with a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the $490 million equivalent U.S. and euro eight-year covenant-light second-lien term loan (Caa1/CCC+) is talked at Libor plus 800 bps/Euribor plus 775 bps with a 1% floor, a discount of 98.5 to 99 and call protection of 102 in year one and 101 in year two, the source said.

Spreads and floors on the incremental term loan B debt matches pricing on the company’s existing term loan B’s.

EG lead banks

Global coordinators on EG Group’s bank debt are Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and UBS Investment Bank. Bank of America is the physical bookrunner for the U.S. term loan B, and Bank of America, Barclays and Morgan Stanley are the physical bookrunners for the euro term loan B and second-lien loan.

Commitments are due at 5 p.m. ET on March 22, the source added.

The new debt will be used to fund the acquisitions of Kroger Co C-Stores, a portfolio of 762 sites across 18 U.S. states, for $2.15 billion and NRGValue, a network of 97 retail Esso sites in the Netherlands.

EG Group is a European independent forecourt/convenience-store retailer.

HelpSystems launches

HelpSystems came out with price talk on its $495 million seven-year first-lien term loan (B2/B-) and $200 million eight-year second-lien term loan (Caa2/CCC) with its morning bank meeting, a market source said.

The first-lien term loan is talked at Libor plus 350 bps to 375 bps with a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 775 bps with a 0% Libor floor and a discount of 99, the source added.

Included in the first-lien term loan is 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $735 million of senior secured credit facilities also provide for a $40 million revolver (B2/B-).

Commitments are due on March 23, the source added.

Jefferies LLC, Antares Capital and Ares are leading the deal that will be used to fund HGGC LLC’s acquisition of a majority stake in the company.

HelpSystems is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity, and business intelligence software.

Prestige details emerge

Prestige Brands held its call and launched a $1,222,000,000 senior secured term loan B-4 due Jan. 26, 2024 at talk of Libor plus 200 bps to 225 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments/consents are due at noon ET on Friday, the source said.

Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading the deal that will be used to reprice an existing term loan B-4 down from Libor plus 275 bps with a 0.75% Libor floor.

Prestige Brands is a Tarrytown, N.Y.-based marketer and distributor of over-the-counter and household cleaning products.

Fogo de Chao guidance

Fogo de Chao came out with talk of Libor plus 500 bps to 525 bps with a 1% Libor floor and an original issue discount of 99 on its $300 million seven-year covenant-light first-lien term loan shortly before its morning bank meeting kicked off, a market source remarked.

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

The company’s $340 million of senior secured credit facilities also include a $40 million revolver.

Commitments are due at 5 p.m. ET on March 27.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are leading the deal that will be used with up to $278 million in equity to fund the buyout of the company by Rhone Capital for $15.75 per share, or about $560 million.

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

Fogo de Chao is a Dallas-based steakhouse chain.

Engility sets price talk

Engility held its lender call and announced price talk on its $75 million incremental senior secured term loan B-2 due Aug. 12, 2023, and repricings of its existing $528 million senior secured term loan B-2 due Aug. 12, 2023 and $175 million senior secured term loan B-1 due Aug. 12, 2020 with its lender call on Tuesday, a market source said.

Talk on the term loan B-2 debt is Libor plus 275 bps to 300 bps with a 1% Libor floor, and talk on the term loan B-1 is Libor plus 225 bps to 250 bps with a 0% Libor floor, the source continued. The add-on term B-2 is talked with an original issue discount of 99.75 to par, and the repricings are offered at par.

All of the term loans have 101 soft call protection for six months.

Commitments/consents are due at noon ET on Friday, the source added.

Morgan Stanley Senior Funding Inc., KKR Capital Markets, Barclays, JP Morgan Chase Bank, Regions and SunTrust Robinson Humphrey Inc. are leading the deal.

The incremental loan will be used to repay a portion of the term loan B-1.

Engility is a Chantilly, Va.-based provider of integrated services for the U.S. government.

Lindblad holds call

Lindblad Expeditions emerged in the morning with plans to hold a lender call at 3 p.m. ET to launch $245 million of credit facilities (B2/BB), according to a market source.

The facilities consist of a $45 million revolver, and a $200 million seven-year 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, the source said.

Commitments are due at 5 p.m. ET on March 21.

Credit Suisse Securities (USA) LLC, JP Morgan Chase Bank and Citigroup Global Markets Inc. are leading the deal that will be used to refinance existing debt and add cash to the balance sheet.

Lindblad Expeditions is a New York-based expedition cruising and extraordinary adventure travel company.

Certara releases terms

Certara hosted its call in the morning, launching its fungible $40 million incremental first-lien term loan (B) due Aug. 15, 2024 and repricing of its existing $274,375,000 first-lien term loan (B) due Aug. 15, 2024 at talk of Libor plus 350 bps with a 0% Libor floor and a par issue price, a market source remarked.

All of the first-lien term loan debt is getting 101 soft call protection for six months.

Consents and commitments are due at noon ET on Friday, the source added.

Jefferies LLC is leading the deal.

The incremental loan will be used to fund an acquisition and the repricing will take the existing term loan down from Libor plus 400 bps with leverage-based step-downs and a 1% Libor floor.

Certara is a Princeton, N.J.-based provider of technology-driven decision support solutions for drug development.

KBR timing surfaces

KBR set a bank meeting for 2 p.m. ET in New York on Wednesday to launch its previously announced $800 million seven-year covenant-light term loan B, a market source said.

Based on the commitment letter, the company’s $2.2 billion of senior secured credit facilities are also expected to include a $400 million five-year term loan A, a $500 million five-year revolver and a $500 million five-year performance letter of credit facility.

Bank of America Merrill Lynch is the left lead on the deal that will be used to fund the $355 million acquisition of SGT from Kamco Holdings, refinance existing revolver borrowings, fund KBR’s share in a joint venture and for general corporate purposes.

KBR is a Houston-based provider of full life-cycle professional services and technologies supporting the government services and hydrocarbons markets.

Las Vegas Sands repricing

Las Vegas Sands will hold a lender call at 2:30 p.m. ET on Wednesday to launch a $2,183,000,000 term loan B due March 2024 talked at Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.75 to par and 101 soft call protection for six months, a market source remarked.

Bank of Nova Scotia, Bank of America Merrill Lynch, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Fifth Third Bank and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor. Scotia is the administrative agent.

Las Vegas Sands is a Las Vegas-based developer and operator of integrated resorts.

Loparex readies deal

Loparex International scheduled a bank meeting for 10:30 a.m. ET on Thursday to launch $350 million of credit facilities, according to a market source.

The facilities consist of a $30 million five-year revolver, and a $320 million seven-year senior secured first-lien term loan that has 101 soft call protection for six months, the source said.

Jefferies LLC, ABN Amro and Rabobank are leading the deal.

The credit facilities will be used to refinance existing bank debt and repay shareholder loans.

Loparex is a developer and producer of specialty release liner product solutions meeting the needs of a diverse market and application space.

Freedom Mortgage on deck

Freedom Mortgage will hold a lender call at 11 a.m. ET on Wednesday to launch a $688.4 million senior secured term loan due Feb. 23, 2022, a market source remarked.

Commitments are due at 5 p.m. ET on March 21, the source added.

Barclays and JP Morgan Chase Bank are leading the deal that will be used to reprice an existing term loan.

Freedom Mortgage is a Mount Laurel, N.J.-based top tier residential mortgage company engaged in the origination, servicing, selling and securitizing of primarily agency-eligible residential mortgage loans.

Iron Mountain coming soon

Iron Mountain set a lender call for Wednesday to launch a $500 million senior secured term loan B (Ba3/BB) due 2026 talked at Libor plus 200 bps to 225 bps with a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

Commitments are due on March 23, the source said.

JP Morgan Chase Bank is leading the deal that will be used to repay revolver borrowings.

Iron Mountain is a Boston-based information management services provider.

LifeMiles joins calendar

LifeMiles scheduled a call for 10 a.m. ET on Wednesday for loan lenders, a market source remarked.

Deutsche Bank Securities Inc. is leading the transaction.

LifeMiles is a Latin American coalition loyalty program and the exclusive operator of Avianca’s frequent flyer program.

Gateway Casinos closes

In other news, Gateway Casinos & Entertainment Ltd. closed on its $335 million seven-year senior secured term loan B and C$150 million five-year revolver, a news release said.

Pricing on the term loan is Libor plus 300 bps with a step-down to Libor plus 275 bps following an initial public offering and a 0% Libor floor. The debt was sold at an original issue discount of 99.875 and has 101 soft call protection for six months.

During syndication, the term loan was upsized from $305 million, pricing was cut from Libor plus 325 bps, the step-down was added and the discount was changed from 99.75.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., National Bank of Canada and ING led the deal. BMO is the administrative agent.

Proceeds are being used with a sale-leaseback transaction to refinance existing term loans and revolver borrowings, to repay the Langley mortgage, to fund a distribution to shareholders and for general corporate purposes.

Gateway Casinos is a Burnaby, B.C.-based owner of gaming properties.

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