Perforce Software, Avantor break; Unifrax revised; Upland Software, BRP, Vitech set talk

By Sara Rosenberg

New York, June 12 – Perforce Software Inc. modified the original issue discount on its first-lien term loan and added a pricing step-down, and then the debt surfaced in the secondary market on Wednesday, and Avantor’s term debt freed to trade as well.

Also, Unifrax (ASP Unifrax Holdings Inc.) reduced the size of its incremental term loan B and finalized the spread at the low end of guidance.

Furthermore, Upland Software Inc., BRP Inc. and Vitech Systems Group disclosed price talk with launch, and Allied Universal Holdco LLC and PF Growth Partners are getting ready to bring new deals to market.

Perforce tweaked, trades

Perforce Software changed the original issue discount on its $800 million seven-year covenant-lite first-lien term loan (B2/B-) to 99.5 from 99 and added a pricing step-down to Libor plus 425 bps at 6.6x total net leverage, according to a market source.

Opening pricing on the first-lien term loan remained at Libor plus 450 basis points with a 0% Libor floor.

As before, the first-lien term loan has 101 soft call protection for six months.

Recommitments were due at noon ET on Wednesday and the first-lien term loan freed to trade in the afternoon, with levels quoted a 99¾ bid, par ¼ offered, another source added.

The company’s $1,175,000,000 of credit facilities also include a $75 million revolver (B2/B-) and a $300 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to refinance the company’s existing capital structure in conjunction with a significant new equity investment from Francisco Partners, which will become an equal partner with affiliates of Clearlake Capital Group LP.

Closing is expected this quarter.

Perforce is a Minneapolis-based provider of enterprise-grade development operations software solutions.

Avantor hits secondary

Avantor’s bank debt began trading, with the $810 million term loan B (Ba2/B+/BB+) due November 2024 quoted at par bid, par ½ offered, a market source said.

Pricing on the term loan B is Libor plus 300 bps with a 25 bps step-down at 0.5x inside closing date net first-lien leverage and a 1% Libor floor. The loan was issued at par and has 101 soft call protection for six months.

In addition the company is getting a €418 million term loan B (Ba2/B+/BB+) due November 2024 priced at Euribor plus 325 bps with a 25 bps step-down at 0.5x inside closing date net first-lien leverage and a 0% floor. This tranche also was issued at par and has 101 soft call protection for six months.

During syndication, the spread on the U.S. term loan firmed at the low end of the Libor plus 300 bps to 325 bps talk, pricing on the euro term loan finalized at the low end of the Euribor plus 325 bps to 350 bps talk and the step-down was added to both tranches.

Goldman Sachs Bank USA is leading the deal that will reprice an existing U.S. term loan down from Libor plus 375 bps with a 1% Libor floor and an existing euro term loan down from Euribor plus 375 bps with a 0% floor.

Avantor, a Radnor, Pa.-based provider of solutions for the life sciences and advanced technology industries, is expected to close on the repricing on Tuesday.

Unifrax updated, breaks

Unifrax modified the size of its incremental covenant-lite term loan B due Dec. 14, 2025 to $100 million from a revised amount of $95 million and an initial amount of $120 million, and firmed the spread at Libor plus 375 bps, the low end of the Libor plus 375 bps to 400 bps talk, a market source remarked.

The term loan still has a 0% Libor floor, an original issue discount of 97.5 and 101 soft call protection for six months.

Recommitments were due at 2:15 p.m. ET on Wednesday and late in the day, the incremental term loan broke for trading, with levels quoted at 97 ½ bid, 98 offered, a trader added.

Morgan Stanley Senior Funding Inc. and Stifel, Nicolaus & Co. are leading the deal that will be used to fund an acquisition.

Closing is expected on Friday.

Unifrax is a Tonawanda, N.Y.-based supplier of high-performance specialty fibers and inorganic materials used in emission control, thermal management, filtration, battery and fire protection applications.

Upland Software guidance

Upland Software held its bank meeting on Wednesday morning and announced talk on its $350 million seven-year covenant-lite first-lien term loan at Libor plus 375 bps to 400 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $380 million of credit facilities (B2/B) also include a $30 million revolver.

Commitments are due at 5 p.m. ET on June 26.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing debt.

Upland Software is an Austin, Tex.-based service-as-a-solution (SaaS) provider of enterprise work management software.

BRP reveals talk

BRP came out with talk of Libor plus 250 bps with a 0% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months on its non-fungible $335 million incremental term loan B-2 due May 23, 2025 that launched with an afternoon call, according to a market source.

Commitments are due at noon ET on June 21.

RBC Capital Markets and BMO Capital Markets are leading the deal that will be used to fund a substantial issuer bid to purchase for cancellation up to C$300 million of the company’s subordinate voting shares and for general corporate purposes.

Closing is expected during the week of July 22.

BRP is a Valcourt, Quebec-based designer, manufacturer, distributor and marketer of motorized recreational vehicles and powersports engines.

Vitech proposed terms

Vitech Systems Group launched on its afternoon call its $100 million seven-year term loan B at talk of Libor plus 400 bps to 425 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

The company’s $125 million of credit facilities also include a $25 million revolver.

Commitments are due at 5 p.m. ET on June 25, the source added.

RBC Capital Markets is leading the deal that will be used to help fund the buyout of the company by CVC Capital Partners.

Closing is expected later this summer.

Vitech is a New York-based provider of cloud-based financial administration solutions.

Allied joins calendar

Allied Universal set a bank meeting for 10 a.m. ET in New York on Thursday to launch $3.02 billion of credit facilities, according to a market source.

The facilities consist of a $300 million revolver, a $2.52 billion seven-year covenant-lite first-lien term loan and a $200 million seven-year covenant-lite delayed-draw first-lien term loan, the source said.

The term loan debt has a 0% Libor floor and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on June 26, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing debt.

Allied Universal is a Santa Ana, Calif.-based provider of security services.

PF Growth on deck

PF Growth scheduled a lender call for Thursday to launch $205 million of credit facilities, a market source remarked.

The facilities consist of a $5 million revolver, a $170 million six-year first-lien term loan and a $30 million six-year delayed-draw first-lien term loan, the source added.

Fifth Third Bank is leading the deal that will be used to refinance existing debt, pay a dividend and fund club growth and acquisitions.

PF Growth is an operator of Planet Fitness.

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