Perimeter shelved; Vantage Specialty comes to market; ConvergeOne, Elo, Jostens set launches

By Sara Rosenberg

New York, Nov. 26 – In the primary market, Perimeter Solutions LP withdrew its term loan B repricing transaction and Vantage Specialty Chemicals Holdings Inc. released price talk on its term loans in connection with a lender call.

Additionally, ConvergeOne Holdings Inc. set timing on the launch of its credit facilities, and Elo Touch Solutions and Jostens Inc. (Champ Acquisition Corp.) joined this week’s primary calendar.

Perimeter pulled

Perimeter Solutions withdrew its $542 million first-lien term loan B (B1/B+/BB+) due March 2025 from market, a source said.

Talk on the term loan was Libor plus 275 basis points with a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Barclays, Goldman Sachs Bank USA and HSBC Securities (USA) Inc. were leading the deal that would have been used to reprice an existing first-lien term loan B down from Libor plus 300 bps with a 0% Libor floor.

Perimeter Solutions, formerly known as Invictus, is a St. Louis-based formulator and manufacturer of fire management chemicals.

Vantage floats guidance

Vantage Specialty Chemicals hosted a lender call at 1 p.m. ET on Monday to launch a $73 million add-on first-lien term loan B due October 2024 talked at Libor plus 350 bps with a 1% Libor floor and an original issue discount of 99, and a $15 million add-on second-lien term loan due October 2025 talked at Libor plus 825 bps with a 1% Libor floor and a discount of 99, according to a market source.

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

Morgan Stanley Senior Funding Inc. and RBC Capital Markets are leading the deal that will be used to fund the acquisition of Leuna Tenside Holding GmbH, a chemical company, from BIP Venture Partners and VR Equitypartner GmbH, and to pay related fees and expenses.

Vantage is a Chicago-based manufacturer and distributor of specialty chemicals.

ConvergeOne on deck

ConvergeOne emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch its $1,525,000,000 of senior secured credit facilities, a market source remarked.

The facilities consist of a $250 million five-year ABL revolver, a $925 million seven-year covenant-light first-lien term loan and a $350 million eight-year covenant-light second-lien term loan, the source said. The term loans have a 0% Libor floor.

Wells Fargo is leading the ABL revolver. Deutsche Bank Securities Inc., UBS Investment Bank, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc. and Societe Generale are leading the term loans, with Deutsche the left lead on the first-lien and UBS the left lead on the second-lien.

The new debt will be used with up to $750 million of equity to fund the buyout of the company by CVC Fund VII for $12.50 per share, or about $1.8 billion.

Closing is expected this quarter or in the first quarter of 2019, subject to customary conditions and regulatory approvals.

ConvergeOne is an Eagan, Minn.-based IT and managed services provider of collaboration and technology solutions.

Elo readies loan

Elo Touch Solutions set a bank meeting for 1:30 p.m. ET in New York on Tuesday to launch a $360 million first-lien term loan (B2/B+), according to a market source.

Goldman Sachs Bank USA, Citizens Bank and MidCap Financial are leading the deal that will be used to help fund the buyout of the company by Crestview Partners from the Gores Group.

Closing is expected this quarter, subject to customary conditions.

Elo Touch is a Milpitas, Calif.-based information and communications technology services and solutions provider.

Jostens coming soon

Jostens scheduled a bank meeting for 10:30 a.m. ET in New York on Wednesday to launch $900 million of term loans, a market source said.

The debt is split between a $750 million seven-year covenant-light first-lien term loan and a $150 million eight-year covenant-light second-lien term loan, the source added.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., BMO Capital Markets, Goldman Sachs Bank USA and Stifel are leading the deal that will be used to help fund the buyout of the company by Platinum Equity from Newell Brands.

Gross proceeds from the Jostens sale are expected to be about $1.3 billion and closing is targeted for this quarter, subject to customary conditions, including regulatory approval.

Jostens is a Minneapolis-based provider of yearbooks, class jewelry and other scholastic products to schools.

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