Large number of deals break; Zelis, RBMedia updated; Foundation, Guidehouse accelerated

By Sara Rosenberg

New York, Jan. 29 – TricorBraun Holdings Inc. increased the size of its funded and delayed-draw term loans, lowered the spread, trimmed the Libor floor and adjusted the delayed-draw ticking fees, Asurion LLC moved some funds between its first-and second-lien term loans, and tightened the spread and issue price on the second-lien debt, and United Natural Foods Inc. firmed pricing on its first-lien term loan at the low end of guidance, and then these deals broke for trading on Friday.

Also, before emerging in the secondary market, PetSmart Inc. trimmed the spread on its term loan B, Pathway Vet Alliance LLC set pricing on its first-lien term loan at the high end of talk, Gannett Holdings LLC firmed the original issue discount on its term loan B at the tight end of talk, and PG&E Corp. finalized the spread on its term loan at the narrow end of guidance.

Furthermore, Big Ass Fans LLC modified the original issue discount on its incremental first-lien term loan, PDC Wellness & Personal Care Co. (Parfums Holding Co. Inc.) set the original issue discount on its incremental first-lien term loan at the tight end of talk, IntraFi Network LLC (Nexus Buyer LLC) changed the issue price on its incremental first-lien term loan, and AccentCare Inc. finalized pricing on its term loan B at the high end of talk, and then these deals also freed to trade.

Other deals to hit the secondary market during the session included Altium Packaging LLC, Aspen Dental Management, ProQuest LLC, Alion Science & Technology Corp., USI Inc. and Acrisure LLC.

In other news, Zelis reduced pricing on its first-lien term loan B, RBmedia set the spread on its first-lien term loan B at the high end of talk, and Foundation Building Materials Inc. and Guidehouse accelerated the commitment deadlines for their first-lien term loans.

TricorBraun reworked

TricorBraun lifted its funded seven-year covenant-lite first-lien term loan (B2/B-) to $1.067 billion from $1.034 billion and its delayed-draw covenant-lite first-lien term loan (B2/B-) to $240 million from $200 million, according to a market source.

In addition, pricing on the first-lien term loan debt was cut to Libor plus 325 basis points, from talk in the range of Libor plus 350 bps to 375 bps, the Libor floor was reduced to 0.5% from 0.75%, and the ticking fee on the delayed-draw term loan was revised to half the margin from days 46 to 90 and the full margin thereafter, from half the margin from days 61 to 120 and the full margin thereafter, the source said.

The first-lien term loan debt still has an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s now $1.447 billion of credit facilities, up from $1.374 billion, also include a $140 million ABL revolver.

Commitments were due at noon ET on Friday, the source added.

TricorBraun hits secondary

On Friday, TricorBraun’s bank debt freed to trade, with the strip of funded and delayed-draw term loan debt quoted at 99¾ bid, par ¼ offered, another source added.

Credit Suisse Securities (USA) LLC, Antares Capital, Nomura and UBS Investment Bank are leading the deal

The credit facilities will be used with $343 million of privately placed second-lien notes, downsized from $376 million with the funded term loan upsizing, to help fund the buyout of the company by Ares Management Corp. and the Ontario Teachers’ Pension Plan Board.

TricorBraun’s leadership team will also retain a significant investment in the company, as will its current majority owner, AEA Investors.

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

TricorBraun is a St. Louis-based provider of packaging products.

Asurion restructured, breaks

Asurion raised its 6.5-year first-lien term loan B-9 to $1.5 billion from $1.25 billion, and left pricing at Libor plus 325 bps with a 0% Libor floor and an original issue discount of 99, according to a market source. This tranche has 101 soft call protection for six months.

The company also downsized its seven-year second-lien term loan B-3 to $1.64 billion from $1.89 billion, revised price talk to a range of Libor plus 525 bps to 550 bps from Libor plus 600 bps, before firming later in the day at Libor plus 525 bps, and changed the issue price to par from talk in the range of 99 to 99.5, the source said.

The second-lien loan has a 0% Libor floor and hard call protection of 102 in year one and 101 in year two.

Late in the day, the debt began trading, with the first-lien term loan B-9 quoted at 99¼ bid, 99¾ offered and the second-lien term loan B-3 quoted at par ¾ bid, 101¼ offered, a trader added.

BofA Securities Inc., Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to refinance an existing second-lien term loan due 2025.

Asurion is a Nashville-based provider of technology protection services.

United Natural updated, trades

United Natural set pricing on its $1.015 billion first-lien term loan (B2/B) due October 2025 at Libor plus 350 bps, the low end of the Libor plus 350 bps to 375 bps talk, a market source remarked.

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

Commitments remained due at noon ET on Friday and the term loan freed to trade in the afternoon, with levels quoted at par 1/8 bid, par ½ offered, another source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 425 bps with a 0% Libor floor.

United Natural Foods is a Providence, R.I.-based distributor of natural, organic and specialty grocery and non-food products.

PetSmart flexes, tops OID

PetSmart lowered pricing on its $2.3 billion seven-year term loan B (B1/BB-) to Libor plus 375 bps from revised talk in the range of Libor plus 400 bps to 425 bps and initial talk of Libor plus 450 bps, a market source remarked.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The term loan began trading late in the day, with levels quoted at 99¼ bid, 99¾ offered, another source added.

J.P. Morgan Securities LLC, Barclays, Apollo, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Jefferies LLC, MUFG, RBC Capital Markets, UBS Investment Bank and Wells Fargo Securities LLC are leading deal.

The new term loan will be used with $1.2 billion of senior secured notes, $1.15 billion of senior unsecured notes and about $1.3 billion of equity from the company’s parent to refinance an existing term loan, an asset-based revolving credit facility, 5 7/8% notes due 2025, 8 7/8% notes due 2025 and 7 1/8% notes due 2023.

PetSmart is a Phoenix-based specialty pet retailer.

Pathway finalized, frees up

Pathway Vet Alliance firmed the spread on its $1,012,700,000 first-lien term loan (B2/B) due March 2027 at Libor plus 375 bps, the high end of the Libor plus 350 bps to 375 bps talk, a market source said.

The term loan still has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

In the morning, the term loan broke for trading, with levels quoted at par 1/8 bid, par ½ offered, another source added.

Jefferies LLC and BofA Securities Inc. are leading the deal that will be used to reprice an existing term loan down from Libor plus 400 bps with a 0% Libor floor.

Pathway is an Austin, Tex.-based veterinary management group that operates a synergistic and integrated service model serving the needs of pet families and veterinarians.

Gannett updated, trades

Gannett set the original issue discount on its $1.045 billion five-year senior secured term loan B (B1/B) at 98, the tight end of the 97 to 98 talk, according to a market source.

The term loan is still priced at Libor plus 700 bps with a 0.75% Libor floor, and has 101 soft call protection for one year.

Late in the day, the term loan freed up, with levels quoted at 99 bid, par offered, another source added.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance existing debt.

Closing is expected during the week of Feb. 8.

Gannett is a McLean, Va.-based media and marketing solutions company.

PG&E sets spread, breaks

PG&E firmed pricing on its $2.736 billion term loan at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, a market source said.

The term loan still has a 0.5% Libor floor and a par issue price.

Upon breaking for trading on Friday, the term loan was quoted at par 1/8 bid, par 5/8 offered, another source added.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan from Libor plus 450 bps with a 1% Libor floor.

PG&E is a San Francisco-based electric and natural gas utility.

Big Ass tweaked, frees

Big Ass Fans adjusted the original issue discount on its fungible $30 million incremental covenant-lite first-lien term loan (B2/B-) due May 2024 to 99.75 from 99.5, according to a market source.

Like the existing first-lien term loan, the incremental term loan is priced at Libor plus 375 bps with a 1% Libor floor.

Commitments remained due at noon ET on Friday and the term loan began trading later in the day, with levels quoted at 99 7/8 bid, par 3/8 offered, another source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a shareholder distribution.

Big Ass Fans is a Lexington, Ky.-based producer of high volume, low speed and connected fans.

PDC firms, trades

PDC Wellness & Personal Care finalized the original issue discount on its fungible $183 million incremental covenant-lite first-lien term loan (B3/B) due June 2024 at 99.75, the tight end of the 99.5 to 99.75 talk, a market source remarked.

Pricing on the incremental term loan is Libor plus 400 bps with a step-up to Libor plus 425 bps above 5.85x total net leverage and a 0% Libor floor, in line with existing first-lien term loan pricing.

Commitments continued to be due at noon ET on Friday and the incremental term loan broke in the afternoon, with levels quoted at par bid, par 3/8 offered, a trader added.

Nomura is leading the deal that will be used to repay an existing second-lien term loan and pay fees and expenses.

Closing is expected in early February.

PDC is a Stamford, Conn.-based beauty and personal care products company.

IntraFi revised, breaks

IntraFi Network tightened the original issue discount on its fungible $140 million incremental covenant-lite first-lien term loan (B2/B-) due November 2026 to 99.875 from talk in the range of 99.5 to 99.75, according to a market source.

Pricing on the incremental term loan is Libor plus 375 bps with a 0% Libor floor, in line with existing term loan pricing.

Recommitments were due at 1:30 p.m. ET on Friday and the loan started trading later in the day, with levels quoted at par bid, par 3/8 offered, a trader added.

Nomura, RBC Capital Markets, UBS Investment Bank and Morgan Stanley Senior Funding Inc. are leading the deal that will be used to repay an existing second-lien term loan and pay fees and expenses.

Closing is expected in early February.

IntraFi, formerly known as Promontory Interfinancial Network LLC, is an Arlington, Va.-based financial technology solutions provider offering deposit placement and funding services to financial institutions.

AccentCare firms, trades

AccentCare set pricing on its $350 million term loan B at Libor plus 450 bps, the wide end of the Libor plus 425 bps to 450 bps talk, a market source remarked.

The term loan B still has a 25 bps step-down at B2/B ratings and a par issue price.

During the session, the term loan B broke for trading with levels quoted at par ¼ bid, 101 offered, another source added.

J.P. Morgan Securities LLC is leading the deal that will be used to reprice an existing term loan down from Libor plus 500 bps with a 0.5% Libor floor.

AccentCare, an Advent International portfolio company, is a Dallas-based provider of post-acute health care.

Altium tops OID

Altium Packaging’s $1.05 billion seven-year covenant-lite secured term loan (B2/B+) also broke, with levels quoted at 99¾ bid, par 1/8 offered before moving to 99 5/8 bid, par offered, a market source said.

Pricing on the term loan is Libor plus 275 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

During syndication, pricing on the term loan flexed down from Libor plus 300 bps and the discount finalized at the tight end of the 99 to 99.5 talk.

Citigroup Global Markets Inc., Barclays, Wells Fargo Securities LLC, MUFG, Truist, BofA Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Goldman Sachs Bank USA are leading the deal. Barclays is the administrative agent.

Proceeds will be used to refinance the company’s existing 2024 and 2026 term loans and to pay a dividend to Loews Corp.

Closing is expected on Wednesday.

Altium is an Atlanta-based rigid plastic packaging manufacturer.

Aspen Dental frees up

Aspen Dental’s $1.2 billion term loan B-2 due December 2027 started trading as well, with levels quoted at par ¾ bid, 101¼ offered, according to a trader.

Pricing on the term loan B-2 is Libor plus 325 bps with a 25 bps step-down at 4.1x total net leverage and a 25 bps step-down at 3.6x total net leverage, and a 0.5% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

During syndication, the step-down ratios were revised from 4.6x and 4.1x.

RBC Capital Markets, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets and KKR Capital Markets are leading the deal that will be used to reprice an existing term loan B-2 down from Libor plus 400 bps with a 0.75% Libor floor.

Existing lenders will be repaid at 101 due to the current call protection.

Aspen Dental is an East Syracuse, N.Y.-based dental support organization.

ProQuest starts trading

ProQuest’s $1.032 billion first-lien term loan B (B2/B) due October 2026 also emerged in the secondary market, with levels quoted at par bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 325 bps with a 25 bps step-down when first-lien net leverage is 3x and a 0% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

Goldman Sachs Bank USA, BofA Securities Inc. and Credit Suisse Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan B due 2026 down from Libor plus 350 bps with a 0% Libor floor. BofA is the administrative agent.

Cambridge Information Group is the sponsor.

ProQuest is an Ann Arbor, Mich.-based provider of digital content and Software as a Service solutions primarily for the academic community.

Alion Science breaks

Alion Science & Technology’s $359.1 million first-lien term loan (B1/BB-) due July 2024 freed to trade, with levels quoted at par 1/8 bid, par 5/8 offered, according to a market source.

Pricing on the term loan is Libor plus 275 bps with a 0.75% Libor floor and it was issued at par. The debt has 101 soft call protection for six months,

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to reprice an existing term loan down from Libor plus 375 bps with a 1% Libor floor.

Alion, a portfolio company of Veritas Capital, is a McLean, Va.-based provider of advanced engineering, intelligence surveillance and reconnaissance, research development test and evaluation, live virtual and constructive training, electronic warfare, and cybersecurity solutions primarily to U.S. Department of Defense and intelligence community customers.

USI hits secondary

USI’s $694 million term loan was another deal to break during the session, and levels were quoted at par bid, par ¼ offered, a market source remarked.

Pricing on the term loan is Libor plus 325 bps with a 0% Libor floor and it was issued at par. The loan has 101 soft call protection for six months.

BofA Securities Inc. and KKR Capital Markets are leading the deal that will be used to merge a $545 million term loan due December 2026 priced at Libor plus 400 bps with a 0% Libor floor and a $150 million term loan due December 2026 priced at Libor plus at 400 bps with a 0.5% Libor floor into one tranche and reprice the debt.

USI is a Valhalla, N.Y.-based insurance brokerage and consulting firm.

Acrisure frees up

Acrisure’s fungible $700 million add-on term loan began trading on Friday, with levels quoted at 99¼ bid, 99¾ offered, according to a market source.

Pricing on the add-on term loan is Libor plus 350 basis points with a 0% Libor floor, in line with the existing term loan, and the add-on was sold at an original issue discount of 99.

J.P. Morgan Securities LLC is leading the deal that will be used with $700 million of senior secured notes to refinance secured notes and for acquisition financing.

Acrisure is a Caledonia, Mich.-based insurance brokerage.

Zelis revised

Returning to the primary market, Zelis cut pricing on its $1.485 billion covenant-lite first-lien term loan B due September 2026 to Libor plus 350 bps from talk in the range of Libor plus 375 bps to 400 bps, according to a market source.

The term loan still has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

Commitments continued to be due at noon ET on Friday and allocations went out later in the day, the source added.

Morgan Stanley Senior Funding Inc., Antares Capital, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies LLC and UBS Investments Bank are leading the deal that will be used to reprice an existing term loan B.

Closing is expected the week of Feb. 1.

Zelis is a Bedminster, N.J.-based health care and financial technology company.

RBmedia sets terms

RBmedia firmed pricing on its $890 million first-lien term loan B (B3/B-) due August 2025 at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk, according to a market source.

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

Allocations went out on Friday.

Goldman Sachs Bank USA and KKR Capital Markets are leading the deal that will be used to reprice an existing $642 million term loan B down from Libor plus 425 bps with a 0% Libor floor and an existing $250 million term loan B-2 down from Libor plus 425 bps with a 0.5% Libor floor.

KKR is the sponsor.

RBmedia is a Landover, Md.-based digital audiobook and related spoken-word content producer.

Foundation Building accelerated

Foundation Building Materials moved up the commitment deadline for its $1.26 billion seven-year covenant-lite first-lien term loan (B2/B) to noon ET on Tuesday from noon ET on Thursday, a market source said.

Talk on the term loan is Libor plus 350 bps to 375 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Deutsche Bank Securities Inc. and Truist are leading the deal that will be used with equity to fund the buyout of the company by American Securities LLC for $19.25 per share in an all-cash transaction valued at $1.37 billion, including outstanding debt, and the acquisition of Beacon’s interior construction products business for $850 million.

Closing on the buyout was announced on Friday.

Foundation Building is a Santa Ana, Calif.-based distributor of specialty building products, including wallboard, suspended ceiling systems, metal framing and other products.

Guidehouse moves deadline

Guidehouse accelerated the commitment deadline for its fungible $305 million incremental first-lien term loan and repricing of its existing $939 million first-lien term loan to 2 p.m. ET on Monday from noon ET on Wednesday, according to a market source.

The term loan debt is talked at Libor plus 400 bps with a 0% Libor floor and 101 soft call protection for six months. The incremental term loan is talked with an original issue discount of 99.5 to 99.75, and the repricing is talked at par.

RBC Capital Markets is leading the deal.

Proceeds from the incremental term loan will be used to repay second-lien term loan borrowings, and the repricing will take the existing first-lien term loan down from Libor plus 450 bps with a 0% Libor floor.

Guidehouse is a provider of management consulting services to government clients.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.