ION, Culligan, Shift4, Telenet, QualTek free up; Guidehouse, Monotype, Excel, CDW updated

By Sara Rosenberg

New York, Oct. 2 – ION Corporates set its U.S. and euro term loan tranche sizes and Culligan Holding Inc. (AI Aqua Merger Sub Inc.) finalized the issue price on its incremental term loan B at the wide side of revised talk, and then both of these deals freed up for trading on Wednesday.

Also, Shift4 Payments LLC firmed the original issue discount on its incremental first-lien term loan at the tight end of guidance before hitting the secondary market, and deals from Telenet and QualTek USA LLC broke as well.

In more happenings, Guidehouse increased spreads on its first-and second-lien term loans, and Monotype Imaging Holdings Inc. raised pricing on its first-lien term loan, widened the original issue discount, extended the call protection and revised documentation.

Additionally, Excel Fitness Holdings Inc. set the spread on its term loan at the high end of guidance, increased the Libor floor, shortened the maturity and made some other changes to documentation, CDW LLC tightened the original issue discount on its term loan B, and Alliant Holdings Intermediate LLC withdrew its add-on term loan B-2 from market as a result of an upsizing to its bond offering.

Furthermore, Innovacare (MMM Holdings LLC) released price talk with launch, and Live Nation Entertainment Inc., Delek US Holdings Inc., Golden Nugget LLC (Landry’s Inc.) and Flexitallic joined this week’s primary calendar.

ION sets sizes, breaks

ION Corporates firmed its U.S. six-year first-lien term loan size at $655 million and its euro six-year first-lien term loan size at €1 billion, according to a market source. The debt was launched as a $1.75 billion equivalent term loan.

As before, the term loan debt (B2/B) is priced at Libor/Euribor plus 425 basis points with a 50 bps step-up if the corporate family rating falls below B2/B, a 0% floor and an original issue discount of 99, and has 101 soft call protection for six months.

On Wednesday, the U.S. term loan began trading and levels were quoted at 99 bid, 99½ offered, another source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt and pay related fees and expenses.

ION is a provider of software and solutions focused on corporate treasury and commodities management.

Culligan firms, frees up

Culligan set the original issue discount on its $200 million incremental covenant-lite term loan B (B2/B-) due December 2023 at 95, the wide end of revised talk of 95 to 96 and wide of initial talk of 97, a market source said.

The incremental term loan B is non-fungible, instead of fungible as was originally proposed, and is priced at Libor plus 425 bps with a 1% Libor floor. The debt has 101 soft call protection for six months.

In the afternoon, the incremental term loan made its way into the secondary market and was quoted at 95 bid, 96 offering, a trader added.

Morgan Stanley Senior Funding Inc., RBC Capital Markets and BMO Capital Markets Corp. are leading the deal that will be used to repay the existing balance on the company’s revolver, fund pending acquisitions and add cash to the balance sheet.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

Shift4 updated, trades

Shift4 Payments finalized the original issue discount on its fungible $70 million incremental covenant-lite first-lien term loan due November 2024 at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 450 bps with a 1% Libor floor.

On Wednesday morning, the incremental term loan broke for trading and levels were quoted at 99¾ bid, par ½ offered, the source said.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance a revolver draw.

Shift4, formerly known as Lighthouse Network LLC, is an Allentown, Pa.-based independent merchant acquiring payment solutions and point of sale software provider.

Telenet starts trading

Telenet’s fungible $220 million add-on term loan AN due August 2026 broke for trading, with levels quoted at par bid, par ¼ offered, a market source remarked.

Pricing on the term loan AN is Libor plus 225 bps with a 0% Libor floor and it was issued at par.

The company is also getting a fungible €175 million add-on term loan AO due December 2027 priced at Euribor plus 250 bps with a 0% floor and issued at 100.25.

During syndication, the issue price on the term loan AN was tightened from 99.75 and the issue price on the term loan AO was tightened from par.

Bank of Nova Scotia, BNP Paribas Securities Corp., Goldman Sachs Bank USA, NatWest, Rabobank and RBC Capital Markets are the leads on the deal, with Scotia left on the U.S. loan and administrative agent on both tranches, and BNP left on the euro loan.

Proceeds will be used to refinance existing notes.

Telenet is a Mechelen, Belgium-based cable operator.

QualTek hits secondary

QualTek’s fungible $100 million add-on senior secured covenant-lite term loan B (B3/B) due July 18, 2025 broke as well, with levels quoted at 98 bid, 99 offered, according to a market source.

Pricing on the add-on term loan is Libor plus 625 bps with a 1% Libor floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for six months.

During syndication, the add-on term loan was downsized from $150 million and the discount firmed at the wide end of the 98 to 99 talk.

Citigroup Global Markets Inc., Fifth Third Bank and SMBC are leading the deal that will be used to fund acquisitions, to refinance existing debt and for general corporate purposes. Upon announcing the loan downsizing, it was revealed that Brightstar Capital Partners will contribute $25 million in the form of preferred equity.

With this transaction, pricing on the company’s existing term loan B is increasing to Libor plus 625 bps from Libor plus 575 bps to match pricing on the add-on loan.

Closing is expected during the week of Oct. 14.

QualTek is a King of Prussia, Pa.-based provider of turnkey services to the North American telecommunications, infrastructure and power industries.

Guidehouse flexes

Back in the primary market, Guidehouse widened pricing on its fungible $640 million incremental covenant-lite first-lien term loan (B1/B-) to Libor plus 450 bps from talk in the range of Libor plus 375 bps to 400 bps, and left the 0% Libor floor, original issue discount of 99 and 101 soft call protection for six months unchanged, a market source said.

Regarding the $200 million incremental covenant-lite second-lien term loan (Caa1/CCC), pricing was lifted to Libor plus 850 bps from talk in the range of Libor plus 800 bps to 825 bps and the tranche was revised to non-fungible from fungible, the source continued. The loan still has a 0% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

As part of this transaction, the company is also upsizing its existing revolver to $125 million from $50 million.

Commitments are due at noon ET on Friday.

Guidehouse buying Navigant

Guidehouse’s new debt will be used to help fund the acquisition of Navigant Consulting Inc. for $28 in cash per share in a transaction valued at about $1.1 billion.

RBC Capital Markets, Macquarie Capital (USA) Inc., UBS Investment Bank and Credit Suisse Securities (USA) LLC are leading the loans.

Closing on the acquisition is expected in the fourth quarter, subject to regulatory approvals and customary conditions.

In connection with the new financing, pricing on the company’s existing first-lien term loan will increase from Libor plus 300 bps to match the incremental first-lien term loan, and pricing on the existing second-lien term loan will be raised to Libor plus 800 bps from Libor plus 750 bps because of MFN, the source added.

Guidehouse, a portfolio company of Veritas Capital, is a provider of management consulting services to government clients. Navigant is a Chicago-based professional services firm.

Monotype reworked

Monotype Imaging lifted pricing on its $440 million seven-year covenant-lite first-lien term loan (B2/B-) to Libor plus 525 bps from Libor plus 500 bps, moved the original issue discount to 98 from 99 and extended the 101 soft call protection to one year from six months, according to a market source.

Also, amortization is now 2.5% in years one and two and 5% per annum thereafter, incremental is $58 million and 62.5% EBITDA, MFN is 50 bps for life with no carve-outs, the excess cash flow sweep is 75% with leveraged based step-downs, asset sale step-downs were removed from asset sales, the EBITDA definition includes a 25% cap on cost savings with an 18 month cap on look-forward, and there is a negative pledge on foreign subsidiaries, the source said.

The first-lien term loan still has a 0% Libor floor.

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

Monotype leads

Deutsche Bank Securities Inc., Antares Capital, Macquarie Capital and BNP Paribas Securities Corp. are leading Monotype’s $625 million of senior secured credit facilities, which also include a $50 million revolver (B2/B-) and a $135 million privately placed second-lien term loan.

The new debt will be used with up to $275 million of equity to fund the buyout of the company by HGGC for $19.85 per share in cash, representing an aggregate equity value of about $825 million.

Closing is subject to Monotype shareholder approval, regulatory approvals and other customary conditions.

Monotype is a Woburn, Mass.-based provider of type related software solutions and technologies.

Excel Fitness revised

Excel Fitness firmed pricing on its $260 million first-lien term loan at Libor plus 525 bps, the wide end of the Libor plus 500 bps to 525 bps talk, changed the Libor floor to 1% from 0%, and shortened the maturity to six years from seven years, a market source remarked.

Additionally, revisions were made to restricted payments, incremental, mandatory prepayments and EBITDA definition.

As before, the term loan has an original issue discount of 99.

The company’s $270 million of credit facilities (B3/B) also include a $10 million five-year revolver.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Jefferies LLC, Fifth Third Bank and BMO Capital Markets are leading the deal that will be used to refinance the company’s existing credit facility, to fund cash to the balance sheet for growth, to pay a distribution to shareholders and to pay transaction related fees and expenses.

Excel Fitness is an operator and developer of Planet Fitness clubs.

CDW tightened

CDW adjusted the original issue discount on its $1.446 billion term loan B (Baa3) to 99.875 from 99.75, according to a market source.

Pricing on the term loan is still Libor plus 175 bps with a 0% Libor floor, and the debt still has 101 soft call protection for six months.

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

CDW is a Lincolnshire, Ill.-based technology solutions provider to business, government, education and health care organizations.

Alliant pulled

Alliant Holdings removed from market its $115 million add-on covenant-lite term loan B-2 due May 2025 following an upsizing of its senior notes offering to $690 million from $575 million, a market source said.

Morgan Stanley Senior Funding Inc. was the left lead on the deal that was talked at Libor plus 325 bps with a 0% Libor floor and an original issue discount of 98.5.

The loan was going to be used to help fund the redemption of notes.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

Innovacare reveals guidance

Innovacare held its bank meeting on Wednesday and announced price talk on its $550 million seven-year covenant-lite first-lien term loan at Libor plus 525 bps to 550 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

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

The company’s $630 million of credit facilities (B1/B+) also include an $80 million revolver.

Commitments are due at 5 p.m. ET on Oct. 16.

Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by Summit Partners.

Innovacare is a Fort Lee, N.J.-based healthcare delivery system.

Live Nation on deck

Live Nation scheduled a lender call for Thursday to launch a $950 million term loan B talked at Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months, a market source said.

Commitments are due on Oct. 11, the source added.

The company’s $1.85 billion of senior secured credit facilities (Ba1/BB) also provide for a $500 million revolver and a $400 million delayed-draw term loan A.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, BofA Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho, Morgan Stanley Senior Funding Inc., MUFG, Bank of Nova Scotia, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are leading the deal that will be used with $950 million of senior notes to refinance existing credit facilities, to redeem 5 3/8% senior unsecured notes and for general corporate purposes, including to fund acquisitions.

Live Nation is a Beverly Hills, Calif.-based provider of live music concerts and live entertainment ticketing sales and marketing services.

Delek joins calendar

Delek set a lender call for 2 p.m. ET on Thursday to launch a fungible $150 million add-on covenant-lite term loan B due March 30, 2025, according to a market source.

The add-on term loan has 101 soft call protection for six months, the source said.

Commitments are due at 3 p.m. ET on Oct. 10.

Wells Fargo Securities LLC is leading the deal that will be used to add cash to the balance sheet for future investment in gathering and processing assets.

The company’s existing term loan B is sized at $938 million.

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

Golden Nugget timing

Golden Nugget surfaced with plans to hold a lender call at 4 p.m. ET on Friday to launch its previously announced $300 million incremental term loan B due Oct. 4, 2023, a market source remarked.

The incremental loan is priced at Libor plus 275 bps with a 0.75% Libor floor, in line with the existing term loan B, the source said.

Jefferies LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to fund the acquisition of Del Frisco’s Double Eagle Steakhouses and the Del Frisco’s Grilles from L Catterton.

Closing is expected at the end of October.

Golden Nugget is a diversified restaurant, hospitality, entertainment and gaming company.

Flexitallic coming soon

Flexitallic will hold a bank meeting on Thursday to launch a $200 million term loan B, according to a market source.

Natixis and Bank of Ireland are leading the deal that will be used to refinance existing debt.

Flexitallic is a Houston-based manufacturer and supplier of static sealing solutions.

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