McAfee frees to trade; GFL Environmental changes emerge; Entegris, U.S. Anesthesia set talk

By Sara Rosenberg

New York, Oct. 25 – McAfee LLC downsized its U.S. term loan B, upsized its euro term loan B and trimmed the spread on the euro tranche before emerging in the secondary market on Thursday, and the U.S loan was seen trading above its issue price.

Also in the loan market, GFL Environmental Inc. increased the size of its incremental term loan B, widened the original issue discount and added call protection.

Furthermore, Entegris Inc. and U.S. Anesthesia Partners released price talk with launch, and Integrity Marketing joined the near-term primary calendar.

McAfee tweaked, breaks

McAfee scaled back its U.S. senior secured covenant-light term loan B (B1/B) due Sept. 29, 2024 to about $2,801,000,000 from $2,851,013,910, lifted its euro senior secured covenant-light term loan B (B1/B) due Sept. 29, 2024 to about €741 million from €650,802,180 and reduced pricing on the euro loan to Euribor plus 350 basis points from Euribor plus 375 bps, according to a market source.

Pricing on the U.S. term loan is still Libor plus 375 bps, and both loans still have a 0% floor, a par issue price and 101 soft call protection for six months.

After terms finalized, the U.S. term loan B freed to trade and levels were quoted at par ½ bid, 101 offered, a trader added.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC, UBS Investment Bank and Mizuho Bank are leading the deal that will be used to reprice existing U.S. and euro term loans, to repay $50 million of the U.S. first-lien term loan and to repay $50 million of the company’s second-lien term loan.

McAfee, a Santa Clara, Calif.-based cybersecurity company, expects to close on the loans on Nov. 1.

GFL reworks loan

In other news, GFL Environmental raised its fungible incremental term loan B due May 31, 2025 to $1.71 billion from $1.31 billion, changed the original issue discount to 98.75 from talk in the range of 99 to 99.25, and added 101 soft call protection for six months to the entire term loan B, instead of the debt being prepayable at par, a market source said.

As before, pricing on the incremental loan is Libor plus 275 bps with a 1% Libor floor, in line with existing term loan pricing.

With the term loan upsizing, the company cancelled plans for a $400 million senior notes offering, the source continued.

Final commitments are due at noon ET on Friday and will be subject to expected term loan ratings of B2/B+, the source added. Later in the day, Standard & Poor’s announced that it lowered the rating on the term loan to B+. Prior to the upsizing, the incremental term loan was rated at B1/BB-.

GFL funding merger

GFL Environmental’s incremental term loan will be used with additional equity from BC Partners and other equity investors to fund the company’s merger with Waste Industries. The agreement values Waste Industries at $2,825,000,000.

Barclays, BMO Capital Markets Corp. and RBC Capital Markets are leading the loan.

Closing on the merger is expected this quarter, subject to customary regulatory approvals.

GFL is a Toronto-based environmental services company. Waste Industries is a Raleigh, N.C.-based provider of non-hazardous solid waste collection, transfer, recycling and disposal services.

Entegris releases talk

Entegris held its lender call on Thursday and announced talk on its $200 million seven-year senior secured term loan B at Libor plus 200 bps to 225 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

The company’s $500 million of credit facilities (Baa3/BBB-) also include a $300 million revolver.

Commitments are due on Nov. 1, the source added.

Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., PNC and SunTrust Robinson Humphrey Inc. are leading the deal that will be used to refinance existing debt.

Entegris is a Billerica, Mass.-based developer, manufacturer and supplier of microcontamination control products, specialty chemicals, and advanced materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries.

U.S. Anesthesia guidance

U.S. Anesthesia came out with original issue discount talk of 99.5 on its fungible $275 million add-on senior secured first-lien term loan (B1/B) due June 23, 2024 that launched with an afternoon call, a market source said.

Like the existing term loan, pricing on the add-on term loan is Libor plus 300 bps with a 1% Libor floor.

Commitments are due on Nov. 1, the source added.

Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., BMO Capital Markets, Capital One and Antares Capital are leading the deal that will be used with cash from the balance sheet to fund a distribution to shareholders.

With the add-on loan, the company is asking to amend its credit agreement to waive the restricted payments covenant for this transaction and increase first-lien incremental ratio capacity to 5 times from 4.75 times.

Lenders are being offered a 10 bps amendment fee.

U.S. Anesthesia Partners is a Fort Lauderdale, Fla.-based physician-service organization that focuses on providing anesthesia and pain management services to patients.

Integrity readies deal

Integrity Marketing set a bank meeting in New York for Tuesday to launch $460 million of credit facilities, according to a market source.

The facilities consist of a $20 million revolver, a $260 million first-lien term loan, a $50 million first-lien delayed-draw term loan, a $115 million second-lien term loan and a $15 million delayed-draw second-lien term loan, the source said.

Antares Capital is leading the deal that will be used to refinance existing debt and to fund a distribution to existing shareholders.

Integrity Marketing, a portfolio company of HGGC, is a Dallas-based marketer and distributor of senior health and life insurance products.

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