Berry Plastics, Diamond, Lighthouse, Weight Watchers, Tortoise, Equinox, Sotera break

By Sara Rosenberg

New York, Nov. 20 – Berry Plastics Corp.’s term loans made their way into the secondary market and were bid in line with their issue price on the break, and Diamond Resorts International Inc.’s term loan began trading as well.

Also, Lighthouse Network LLC moved some funds to its first-lien term loan from its second-lien term loan, Weight Watchers International Inc. upsized its term loan B and widened pricing, Tortoise Investments LLC tightened the spread and original issue discount on its term loan and Equinox Holdings Inc. set pricing on its first-lien term loan at the high side of talk, and then all of these deals freed to trade too.

Additionally, Sotera Health Holdings LLC (formerly known as Sterigenics-Nordion Holdings LLC) launched an add-on term loan in the morning and broke the debt for trading by late day.

In more happenings, PODS LLC upsized its term loan B, trimmed pricing and firmed the issue price at the tight end of guidance, and Floor & Decor lifted pricing on its term loan B and added a rating-based step-down.

Furthermore, Oasis Outsourcing Holdings Inc. released price talk with launch, and Phoenix Services surfaced with new deal plans.

Berry frees up

Berry Plastics’ term debt began trading on Monday, with both the $900 million covenant-light term loan O due Feb. 8, 2020 and the $814,375,000 covenant-light term loan P due Jan. 6, 2021 quoted at par bid, par ¼ offered, according to a market source.

Pricing on the loans is Libor plus 200 basis points with a 0% Libor floor and they were issued at par. The loans have 101 soft call protection for six months.

Citigroup Global Markets Inc. is the lead arranger on the deal. Credit Suisse Securities (USA) LLC is the administrative agent.

Proceeds will be used to reprice a term loan K and a term loan L from Libor plus 225 bps with a 0% Libor floor.

Closing is expected during the week of Nov. 27.

Berry is an Evansville, Ind.-based provider of value-added plastic consumer packaging and engineered materials.

Diamond Resorts tops par

Diamond Resorts’ $693 million term loan B (B1/B+) due Sept. 2, 2023 also hit the secondary market, with levels seen at par ¼ bid, par 5/8 offered, a trader remarked.

Pricing on the term loan is Libor plus 450 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

RBC Capital Markets and Barclays are leading the deal that will be used to reprice an existing term loan B down from Libor plus 600 bps with a 1% Libor floor.

Diamond Resorts is a Las Vegas-based hospitality and vacation ownership company.

Lighthouse retranches, trades

Lighthouse Network lifted its seven-year covenant-light first-lien term loan to $430 million from $390 million and left pricing at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source. This tranche still has 101 soft call protection for six months.

In addition, the company trimmed its eight-year covenant-light second-lien term loan to $130 million from $170 million, the source said. This loan remained priced at Libor plus 850 bps with a 1% Libor floor and a discount of 99, and still has call protection of 102 in year one and 101 in year two.

The company’s $600 million of credit facilities also include a $40 million revolver.

Recommitments were due at noon ET on Monday, and by late day the debt had freed up for trading with the first-lien term loan quoted at par 1/8 bid, par 5/8 offered and the second-lien loan quoted at 99½ bid, par offered, another source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Citizens Bank are leading the deal that will be used to fund a tuck-in acquisition and to refinance existing debt.

Lighthouse, formerly known as Harbortouch LLC, is an Allentown, Pa.-based independent merchant acquirer and payment solutions provider.

Weight Watchers reworked, breaks

Weight Watchers upsized its seven-year term loan B to $1.59 billion from $1.39 billion, modified price talk to a range of Libor plus 450 bps to 475 bps from a range of Libor plus 375 bps to 400 bps, and then finalized the spread at Libor plus 475 bps, widened the original issue discount to 98 from 99.5 and extended the 101 soft call protection to one year from six months, a market source remarked.

Also, amortization on the loan was increased to 5% per annum from 1%, the MFN sunset was removed so that there is 50 bps MFN for life, the opening excess cash flow sweep was lifted to 75% from 50%, and changes were made to the incremental allowance and various baskets.

The term loan has a 0.75% Libor floor.

After terms firmed up, the term loan began trading and levels were quoted at 98 bid, 98½ offered, another source added.

J.P. Morgan Securities LLC is leading the deal that will be used with $300 million of senior unsecured notes, downsized from $500 million with the term loan upsizing, to refinance existing debt.

Weight Watchers is a New York-based provider of weight management services.

Tortoise flexes, tops par

Tortoise Investments lowered pricing on its $262.5 million seven-year first-lien term loan (Ba2/BB-) to Libor plus 400 bps from talk in the range of Libor plus 475 bps to 500 bps and changed the original issue discount to 99.5 from 99, a market source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

With final terms in place, the loan made its way into the secondary market and levels were quoted at par ½ bid, 101¼ offered, a trader added.

UBS Investment Bank and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the acquisition of the company by Lovell Minnick Partners.

Closing is expected by the end of the first quarter of 2018, subject to standard regulatory, client and fund shareholder approvals.

Tortoise is a Leawood, Kan.-based provider of investment solutions and market insights.

Equinox sets spread, frees up

Equinox Holdings firmed pricing on its $796 million first-lien term loan B at Libor plus 300 bps, the high end of the Libor plus 275 bps to 300 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, market sources remarked.

The loan then broke for trading during the session with levels quoted at par 3/8 bid, par 7/8 offered and then the debt moved up to par ½ bid, 101 offered, sources added.

Bank of America Merrill Lynch is leading the deal that will be used to reprice an existing first-lien term loan down from Libor plus 325 bps with a 1% Libor floor.

Equinox is a New York-based exercise and fitness company.

Sotera launches, hits secondary

Sotera held an investor call at 11:30 a.m. ET on Monday to launch a fungible $100 million add-on senior secured term loan (B1/B) due May 15, 2022 priced at Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99.75, according to a market source.

The spread and floor on the add-on loan matches existing term loan pricing.

Commitments were due at 3 p.m. ET and by late day the add-on term loan allocated and freed to trade, with levels seen at 99¾ bid, par 1/8 offered, the source said.

Jefferies LLC is leading the deal that will be used with a $75 million add-on holdco senior unsecured PIK toggle notes offering, upsized from $50 million, to fund a distribution to shareholders.

Sotera is a Deerfield, Ill.-based provider of contract sterilization, gamma technologies and medical isotopes.

PODS changes emerge

In other news, PODS increased its seven-year covenant-light senior secured term loan B to $785 million from $775 million, reduced pricing to Libor plus 300 bps from Libor plus 325 bps, finalized the original issue discount at 99.75, the tight end of the 99.5 to 99.75 talk, and removed the MFN sunset, according to a market source.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Commitments are due at noon ET on Tuesday, the source said.

Morgan Stanley Senior Funding Inc. and Barclays are leading the deal that will be used to refinance existing debt, fund a dividend, which was increased with the term loan upsizing, and pay related fees and expenses.

PODS is a Clearwater, Fla.-based provider of storage and moving containers.

Floor & Decor revised

Floor & Decor raised pricing on its $153 million term loan B due September 2023 to Libor plus 275 bps from Libor plus 250 bps and added a step-down to Libor plus 250 bps when a B1 corporate rating is achieved form Moody’s, a market source remarked.

As before, the term loan has a 1% Libor floor, a par issue price and 101 soft call protection for six months.

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

UBS Investment Bank is leading the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Floor & Decor is an Atlanta-based specialty retailer in the hard surface flooring market.

Oasis holds call

Oasis Outsourcing emerged in the morning with plans to hold a lender call at 3 p.m. ET on Monday to launch a fungible $25 million add-on first-lien term loan (B1/B) due June 30, 2023 talked at Libor plus 375 bps with a 1% Libor floor and a par issue price, according to a market source.

Commitments are due on Nov. 28, the source said.

RBC Capital Markets LLC is leading the deal that will be used to fund the acquisition of Staff One.

Including the add-on, the term loan will total $346 million.

Oasis Outsourcing, a Stone Point Capital & Kelso owned company, is a West Palm Beach, Fla.-based provider of comprehensive and cost-effective HR outsourcing services to small- and medium-sized businesses.

Phoenix on deck

Phoenix Services set a bank meeting for 10 a.m. ET on Nov. 28 to launch new bank debt, according to a market source.

KKR Capital Markets and Jefferies LLC are leading the deal that will be used to refinance existing bank debt and fund a dividend.

Phoenix Services, an Olympus Partners portfolio company, is a provider of industrial services.

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