GCA Services first-lien term loan gains on buyout news; U.S. Renal Care revisions surface

By Sara Rosenberg

New York, Nov. 16 – GCA Services Group Inc.’s first-lien term loan headed higher in the secondary market on Monday following an announcement that the company is being acquired by Goldman Sachs and Thomas H. Lee Partners LP.

Switching to the primary market, U.S. Renal Care Inc. finalized pricing on its first-lien term loan at the wide end of guidance, extended first-lien call protection and revised some documentation items, and Cable & Wireless Communications plc, Access CIG LLC and US LBM Holdings LLC emerged with new deal plans.

GCA loan rises

GCA Services’ first-lien term loan was stronger in trading on Monday as the company agreed to be bought by Goldman Sachs and Thomas H. Lee from Blackstone, according to a trader.

Post-news, the first-lien term loan was quoted at 99 5/8 bid, par offered, up from 99 bid on Friday, the trader said.

Closing on the buyout is expected in the first quarter, subject to customary conditions.

As part of the proposed acquisition, GCA’s management team will invest alongside the new sponsors.

GCA is a Cleveland-based provider of janitorial/custodial services, facilities operations and maintenance, grounds management and other outsourced workforce solutions to the education, commercial, and rental car end markets.

BWIC surfaces

Also in trading, a roughly $271 million Bid Wanted In Competition emerged with bids from market players due at noon ET on Wednesday, a trader remarked.

Some of the companies in the portfolio include Acrisure LLC, Asurion, Epicor Software Corp., Filtration Group Inc., RBS Global, Sensus USA Inc., TransFirst Inc. and XOCommunications.

The portfolio is made up of about 58 issuers, the trader added.

U.S. Renal modifies deal

Moving to the primary market, U.S. Renal firmed the spread on its $1.75 billion seven-year first-lien covenant-light term loan (B1/B) at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, and pushed out the 101 soft call protection to one year from six months, according to a market source.

The first-lien term loan still has a 1% Libor floor and an original issue discount of 99.

The company’s $2,165,000,000 credit facility also includes a $150 million five-year revolver (B1/B) and a $265 million eight-year second-lien covenant-light term loan (Caa1/CCC+).

As before, the second-lien term loan is priced at Libor plus 800 bps with a 1% Libor floor and a discount of 98, and has call protection of 102 in year one and 101 in year two.

U.S. Renal other updates

Along with the first-lien updates, U.S. Renal’s debt saw the removal of the 12-month MFN sunset provision, the addition of a ticking fee of the full margin plus the floor starting on Jan. 1 and the reduction of the fixed dollar incremental basket to $300 million from $350 million, the source said.

Furthermore, the unlimited restricted payment threshold was lowered to 4.5 times from 4.75 times, and the excess cash flow sweep was modified to 50% if leverage is greater than 4.75 times, as opposed to 5.25 times, 25% if leverage is less than 4.75 times and more than 4.25 times, as opposed to less than 5.25 times and more than 4.75 times, and 0% if leverage is less than 4.25 times, instead of less than 4.75 times.

Allocations are expected this week, the source added.

U.S. Renal refinancing

Proceeds from U.S. Renal’s credit facility will be used to refinance existing debt in connection with its merger with DSI Renal.

Barclays, J.P. Morgan Securities LLC, RBC Capital Markets LLC, Deutsche Bank Securities Inc. and Jefferies Finance LLC are leading the deal.

Closing on the merger is expected by the end of this quarter, subject to regulatory and certificate of need approval in certain states.

Nashville-based DSI Renal and Plano, Texas-based U.S. Renal are providers of dialysis services.

Cable & Wireless sets call

Cable & Wireless Communications surfaced with plans to hold a lender call on Tuesday to launch $800 million of seven-year term loan debt, split between a $440 million term loan B-1 and a $360 million term loan B-2, a source remarked.

Bank of America Merrill Lynch, Goldman Sachs Bank USA and Scotiabank are the joint global coordinators on the deal, and bookrunners include BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, ING and RBC Capital Markets.

Proceeds will be used to help fund the acquisition of Cable & Wireless by Liberty Global plc for a total equity value of about £3.5 billion ($5.3 billion), or an implied price of 78.04p per share.

Closing is subject to, Liberty Global and Cable & Wireless shareholder approvals, certain regulatory approvals and court sanction of the scheme of arrangement.

Cable & Wireless is a London-based telecommunications company. Liberty Global is a London-based cable company.

Access CIG on deck

Access CIG set a lender call for 11:30 a.m. ET on Tuesday to launch a $60 million add-on first-lien covenant-light term loan due October 2021 that is talked at Libor plus 500 bps with a 1% Libor floor and an original issue discount that is still to be determined, a market source said.

The loan has 101 soft call protection for six months, the source continued.

Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used for acquisition financing.

Access CIG is a Livermore, Calif.-based provider of records and information management services.

US LBM readies loan

US LBM scheduled a lender call for 10 a.m. ET on Tuesday to launch a $50 million tack-on first-lien term loan due Aug. 20, 2022 talked at Libor plus 525 bps with a 1% Libor floor, in line with existing first-lien term loan pricing, and an original issue discount of 96, according to a market source.

All of the first-lien term loan debt will get 101 soft call protection for one year, the source said.

Commitments are due at 3 p.m. ET on Nov. 23.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to repay ABL borrowings related to acquisitions.

US LBM is a Green Bay, Wis.-based owner of building material distribution businesses.

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