Vigor/MHI frees to trade; Waystar deal changes surface; PSAV reveals price guidance

By Sara Rosenberg

New York, Sept. 19 – Vigor Industrial/MHI Holdings posted some changes to documentation for its term loan B, and the debt made its way into the secondary market on Thursday, with levels quoted above its original issue discount.

In more happenings, Waystar modified spread talk on its first-lien term loan and then firmed the spread at the low end of that revised guidance, tightened the original issue discount. The company also made a number of revisions to documentation.

Additionally, PSAV (AVSC Holding Corp.) released price talk on its incremental term loan with launch, and Culligan Holding Inc. (AI Aqua Merger Sub Inc.) joined this week’s primary calendar.

Vigor/MHI tweaked

Vigor Industrial/MHI Holdings modified MFN, baskets and EBITDA under its $500 million seven-year covenant-lite term loan B (B2/B), according to a market source.

Pricing on the term loan is Libor plus 500 basis points with a 0% Libor floor and an original issue discount of 99. The debt has 101 soft call protection for one year, which was extended from six months.

Earlier in syndication, the spread on the term loan was increased from Libor plus 475 bps.

BofA Securities Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Citizens Bank and Mizuho are leading the deal that will be used to help fund the buyout and merger of Vigor Industrial and MHI by the Carlyle Group and Stellex Capital Management.

Vigor/MHI breaks

On Thursday, Vigor/MHI’s term loan B freed to trade, and levels were seen at 99½ bid, par ¼ offered, another source added.

Closing on the transaction is expected by the end of the third quarter, subject to customary conditions.

Vigor Industrial, majority-owned by chief executive officer Frank Foti, is a provider of complex fabrication and ship repair services. MHI, owned by Stellex Capital, is a provider of full-range ship maintenance, repair and modernization services.

The combined company will create a bicoastal leader in critical ship repair services and commercial and defense-related fabrication services.

Waystar reworked

Back in the primary market, Waystar changed price talk on its $825 million seven-year first-lien term loan (B-) to a range of Libor plus 400 bps to 425 bps from just Libor plus 425 bps and then set pricing in the afternoon at Libor plus 400 bps, a market source remarked.

Furthermore, the original issue discount on the term loan finalized at 99.5, the tight end of the 99 to 99.5 talk, pricing step-downs were removed, the MFN was revised to 50 bps for life from 75 bps with a six-month sunset, and revisions were made to incremental, restricted payments, investments, asset sales and EBITDA add-backs, the source added.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to help fund the acquisition of a majority stake in the company by EQT VIII Fund and Canada Pension Plan Investment Board from Bain Capital Private Equity in a transaction that values Waystar at $2.7 billion. Bain Capital will retain a minority stake in the company.

Closing is expected this year, subject to customary conditions and approvals.

Waystar, which was formed in 2017 through the combination of Navicure and ZirMed, is a provider of revenue cycle technology.

PSAV discloses talk

PSAV held a lender call on Thursday, launching a non-fungible $430 million incremental seven-year term loan B (B-) at talk of Libor plus 375 bps to 400 bps with a 1% Libor floor and an original issue discount of 98.5, according to a market source.

Commitments are due at 5 p.m. ET on Sept. 26, the source continued.

J.P. Morgan Securities LLC is leading the deal that will be used to fund the acquisition of Encore Event Technologies Inc., a provider of event technology, staging and production services, and for general corporate purposes.

PSAV is a Long Beach, Calif.-based event technology provider.

Culligan readies loan

Culligan set a lender call for 11 a.m. ET on Friday to launch a $200 million incremental term loan B, a market source said.

Morgan Stanley Senior Funding Inc., RBC Capital Markets and BMO Capital Markets Corp. are leading the deal that will be used to repay the company’s revolver borrowings, fund pending acquisitions and add cash to the balance sheet.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

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