PetVet, Sorenson, TruGreen, Ascensus free to trade; Power Solutions updates euro debt sizes

By Sara Rosenberg

New York, March 15 – PetVet Care Centers LLC finalized the original issue discount on its incremental first-lien term loan at the wide end of guidance before breaking for trading on Friday, and deals from Sorenson Communications LLC, TruGreen LP and Ascensus Inc. hit the secondary market as well.

In more happenings, Power Solutions (Panther BF Aggregator 2 LP) firmed up the size of its euro term loan B, and Ellie Mae Inc. and Hyperion Insurance Group Ltd. joined the near-term primary calendar.

PetVet updated, breaks

PetVet Care Centers set the original issue discount on its fungible $125 million incremental first-lien term loan (B2/B) due Feb. 14, 2025 at 96.5, the wide end of the 96.5 to 97 talk, a market source said.

Like the existing term loan, the incremental term loan is priced at Libor plus 325 basis points with a 0% Libor floor, and has 101 soft call protection until May 9.

On Friday, the incremental term loan freed to trade, with levels seen at 97 bid, 97½ offered, another source added.

Jefferies LLC and KKR Capital Markets are leading the deal that will be used to repay an existing revolver draw and fund cash to the balance sheet to fund acquisitions under letters of intent and other future acquisitions.

Closing is expected during the week of March 18.

PetVet is a Westport, Conn.-based acquirer and operator of general practice and specialty veterinary hospitals for companion animals.

Sorenson frees up

Sorenson Communications’ $700 million five-year covenant-lite first-lien term loan (B2/BB-) broke as well, with levels quoted at 97 bid, 99 offered, a market source said.

Pricing on the term loan is Libor plus 650 bps with a 0% Libor floor, and it was sold at an original issue discount of 96. The loan has 101 soft call protection for one year.

On Thursday, the term loan was upsized from $675 million and the discount was modified from 95.

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

Sorenson is a Salt Lake City-based provider of end-to-end communication technology services for the deaf and hard of hearing.

TruGreen hits secondary

TruGreen’s $965 million seven-year first-lien term loan B (B1/B) began trading too, with levels seen at par bid, 100½ offered, according to a trader.

Pricing on the term loan is Libor plus 375 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

On Thursday, the spread on the loan was lowered from Libor plus 400 bps.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to refinance an existing $790 million first-lien term loan due April 2023 and fund a $234 million distribution to be used to purchase the equity stake held by the Scotts Miracle-Gro Co.

TruGreen is a Memphis-based provider of lawn care, tree & shrub and mosquito services.

Ascensus starts trading

Ascensus’ fungible $94 million incremental first-lien term loan (B2/B-) due December 2022 also freed up, with levels quoted at 99¾ bid, 100¼ offered, a market source remarked.

The incremental term loan is priced at Libor plus 400 bps with a 1% Libor floor and was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

On Thursday, the discount on the incremental term loan finalized at the tight end of the 99 to 99.5 talk.

Credit Suisse Securities, J.P. Morgan Securities and Barclays are leading the deal that will be used to fund a tuck-in acquisition and a shareholder distribution.

In connection with this transaction, pricing on the company’s existing first-lien term loan is being increased to Libor plus 400 bps with a 1% Libor floor from Libor plus 350 bps with a 1% Libor floor for fungibility.

Ascensus is a Dresher, Pa.-based service provider of retirement and college savings plans.

Power Solutions finalized

Back in the primary market, Power Solutions set its euro seven-year term loan B at €1,955,000,000 from a prior description of $2.25 billion equivalent and firmed its euro secured notes offering at €700 million from €660 million minimum previously, according to a market source.

The euro term loan is priced at Euribor plus 375 bps with a 0% floor and an original issue discount of 99.5.

The company is also getting a $4.2 billion seven-year term loan B priced at Libor plus 350 bps with a 0% Libor floor and an original issue discount of 99.

Both term loans have 101 soft call protection for one year.

Previously in syndication, the U.S. term loan was upsized from $3.2 billion as the company downsized its U.S. senior secured notes to $1 billion from $2 billion, pricing was set at the low end of revised talk of Libor plus 350 bps to 375 bps and down from initial talk in the range of Libor plus 400 bps to 425 bps, and the discount was modified from 98.5. Additionally, pricing on the euro term loan was cut from revised talk of Euribor plus 400 bps and initial talk in the range of Euribor plus 400 bps to 425 bps talk, and the discount was tightened from 99. Also, the call protection on both tranches was extended from six months.

Power Solutions leads

J.P. Morgan Securities is the left lead on Power Solutions’ U.S. term loan B, and Barclays is the left lead on the euro term loan B. Filings with the Securities and Exchange Commission listed Credit Suisse, Bank of America Merrill Lynch, BMO Capital Markets, CIBC Capital Markets, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, RBC Capital Markets, Bank of Nova Scotia and TD Securities as leads on the debt as well. JPMorgan is the administrative agent.

Proceeds from the term loans (Ba3/B+/BB), the U.S. and euro senior secured notes, $1.95 billion of senior notes and equity will be used to fund the acquisition of Johnson Controls’ power solutions business by Brookfield Business Partners LP and Caisse de depot et placement du Quebec for around $13.2 billion.

Closing is expected by June 30, subject to customary conditions, including regulatory approvals.

Power Solutions is a supplier of low voltage automotive batteries.

Ellie Mae coming soon

Ellie Mae scheduled a bank meeting for 10 a.m. ET on Tuesday to launch $1.04 billion of first-lien credit facilities, split between a $75 million revolver and a $965 million seven-year first-lien term loan, according to a market source.

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

The company is also getting a $385 million privately placed eight-year second-lien term loan, the source said.

Jefferies, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used to help fund the buyout of the company by Thoma Bravo LLC for $99.00 in cash per share, or about $3.7 billion.

Closing is expected in the second or third quarter, subject to approval by Ellie Mae stockholders and regulatory authorities, and customary conditions.

Ellie Mae is a Pleasanton, Calif.-based cloud-based platform provider for the mortgage finance industry.

Hyperion on deck

Hyperion Insurance Group set a lenders’ call for 10 a.m. ET on Monday to launch a $130 million incremental senior secured term loan B, a market source said.

Morgan Stanley Senior Funding Inc. is leading the deal that will be placed on the balance sheet in a locked box account to fund future acquisitions.

Hyperion is a London-based insurance intermediary group.

© 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.