Mueller Water, Novetta Solutions break; TierPoint, Creganna-Tactx, CareCore update deals

By Sara Rosenberg

New York, Nov. 19 – Mueller Water Products Inc.’s term loan B made its way into the secondary market on Wednesday with the debt seen trading above its original issue discount, and Novetta Solutions began trading as well.

Over in the primary, TierPoint moved funds between its first- and second-lien term loans, reduced pricing on the tranches and sweetened the first-lien call protection, and Creganna-Tactx Medical tightened spreads and original issue discounts on its first- and second-lien term loans.

In addition, CareCore National LLC upsized its add-on term loan B, modified the offer price and extended the call protection, Sonneborn LLC came out with price talk on its new deal with launch and Q Holdings surfaced with loan plans.

Mueller Water starts trading

Mueller Water Products’ $500 million seven-year covenant-light term loan B (B2/BB) broke for trading on Wednesday, with levels quoted at 99¾ bid, par ¼ offered, according to a trader.

Pricing on the loan is Libor plus 325 basis points with a 0.75% Libor floor and it was sold at an original issue discount of 99½. There is 101 soft call protection for one year.

Recently, the spread on the term loan was reduced from Libor plus 375 bps, the discount firmed at the tight end of the 99 to 99½ talk and the call protection was extended from six months.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and MCS Capital are leading the deal that will be used to refinance existing debt.

Mueller Water is an Atlanta-based manufacturer and marketer of drinking water transmission, distribution and treatment facilities.

Novetta sets spread, breaks

Novetta Solutions firmed pricing on its $140 million first-lien term loan at Libor plus 500 bps, the wide end of the Libor plus 475 bps to 500 bps talk, and left the 1% Libor floor and original issue discount of 99 unchanged, a source said.

The company’s $165 million credit facility also includes a $25 million revolver.

With final terms in place, the deal allocated and freed up for trading in the afternoon, with the term loan quoted at 99¼ bid on the open and then it moved to 99½ bid, par ¼ offered, the source continued.

Societe Generale is leading the deal that will be used to refinance existing debt and to fund two tuck-in acquisitions.

Senior and total leverage is about 3.75 times.

Novetta Solutions is a McLean, Va.-based advanced analytics technology company.

TierPoint reworks deal

Back in the primary, TierPoint increased its seven-year first-lien term loan (B2/B+) to $330 million from $320 million, cut pricing to Libor plus 425 bps from Libor plus 450 bps and pushed out the 101 soft call protection to one year from six months, a market source said.

Also, the eight-year second-lien term loan (Caa2/CCC+) was trimmed to $90 million from $100 million and pricing was lowered to Libor plus 775 bps from Libor plus 800 bps, the source continued.

As before, both term loans have a 1% Libor floor and an original issue discount of 99, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $460 million credit facility also includes a $40 million revolver.

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

TierPoint buying Xand

Proceeds from TierPoint’s credit facility will be used to help fund the acquisition of Xand from ABRY Partners.

RBC Capital Markets LLC and Credit Suisse Securities (USA) LLC are leading the deal.

The company will also use incremental equity from its existing investors, which includes Cequel III management led by chairman Jerry Kent, RedBird Capital Partners, Stephens Group, Jordan/Zalaznick Advisers Inc. and Thompson Street Capital Partners, as well as a new investor, Ontario Teachers’ Pension Plan, for the acquisition.

TierPoint is a St. Louis-based provider of cloud, colocation and managed services. Xand is a Hawthorne, N.Y.-based provider of data center, cloud and managed services.

Creganna flexes down

Creganna-Tactx trimmed pricing on its $185 million first-lien term loan (B1/B) to Libor plus 425 bps from talk of Libor plus 450 bps to 475 bps and moved the original issue discount to 99¼ from 99, while keeping the 1% Libor floor and 101 soft call protection for six months intact, according to a market source.

Also, pricing on the company’s $90 million second-lien term loan (Caa1/CCC+) was cut to Libor plus 800 bps from talk of Libor plus 825 bps to 850 bps and the discount was changed to 99 from 98½, the source said. This tranche still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $300 million credit facility also includes a $25 million revolver (B1/B).

Recommitments were due by the close of business on Wednesday and allocations are targeted for Thursday, the source added.

Creganna leads

RBC Capital Markets, Morgan Stanley Senior Funding Inc., Bank of Ireland and Societe Generale are leading Creganna-Tactx’s credit facility.

Proceeds will be used to help fund the acquisition of Precision Wire Components LLC from the Riverside Co. The combined company will be known as Creganna Medical.

First-lien leverage is 3.4 times, total leverage is 5.1 times and equity is more than 40% of the capitalization.

Closing is expected in early December, subject to regulatory approvals and other customary conditions.

Creganna-Tactx is a Galway, Ireland-based provider of medical device outsourcing services. Precision Wire is a Tualatin, Ore.-based producer of medical wires.

CareCore changes emerge

CareCore lifted its fungible add-on term loan B to $570 million from $535 million, changed the original issue discount to 99¼ from talk of 98½ to 99 and extended the 101 soft call protection to one year from six months, a market source remarked.

Pricing on the add-on matches the existing term loan B at Libor plus 450 bps with a 1% Libor floor, and the existing loan will get the same 101 one-year soft call protection.

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

RBC Capital Markets LLC, Fifth Third Bank and GE Capital Markets Inc. are leading the deal that will be used to fund the acquisition of MedSolutions Inc.

CareCore is a Bluffton, S.C.-based provider of specialty benefits management services to managed care organizations, self-insured entities and risk-bearing provider organizations. MedSolutions is a Franklin, Tenn.-based provider of medical cost management services.

Sonneborn sets talk

Also on the new deal front, Sonneborn held its lender call, launching its $280 million six-year first-lien term loan with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, according to a market source.

Commitments ae due on Dec. 2, the source said.

Macquarie Capital (USA) Inc. is leading the deal that will be used to refinance existing debt and fund a distribution to the sponsor, One Equity Partners.

Sonneborn is a Parsippany, N.J.-based manufacturer and supplier of high-purity specialty hydrocarbons.

Q Holdings readies deal

Q Holdings set a bank meeting for 10:30 a.m. ET on Friday to launch a $188 million credit facility (B), according to a market source.

The facility consists of a $25 million revolver and a $163 million seven-year term loan B, the source said.

RBC Capital Markets and BNP Paribas Securities Corp. are leading the deal that will be used to fund the buyout of the company by 3i Group plc for about $160 million.

Q Holdings is a Twinsburg, Ohio-based manufacturer of elastomeric products, primarily for the automotive, medical and pharmaceutical end markets.

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