Tecta America deal changes surface; RSA Security, Aecom release price guidance

By Sara Rosenberg

New York, April 5 – Tecta America Corp. on Monday revised its first-and second-lien term loan sizes, set the spread on the first-lien debt at the low end of talk while adding a step-down, and lifted pricing on its second-lien loan tranche.

Also, RSA Security LLC and Aecom disclosed price talk on their loan transactions with launch, and Savers Inc. came out with the size of its first-lien term loan that will be launching on its upcoming lender call.

Furthermore, deals from SubCom, OB Hospitalist Group and OEConnection joined this week’s primary calendar.

Tecta reworked

Tecta America raised its seven-year covenant-lite first-lien term loan to $615 million from $600 million, firmed pricing at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, and added a 25 bps step-down after 0.5x total net leverage deleveraging, a market source remarked.

Additionally, the company scaled back its eight-year covenant-lite second-lien term loan to $170 million from $190 million and widened pricing to Libor plus 850 bps from talk in the range of Libor plus 800 bps to 825 bps, the source continued.

As before, the first-lien term loan has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan has a 0.75% Libor floor, a discount of 98.5 and call protection of 102 in year one and 101 in year two.

Tecta getting revolver

Along with the first-and second-lien term loans, Tecta’s now $910 million of credit facilities include a $125 million revolver.

Recommitments are due at noon ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, RBC Capital Markets and Truist are leading the deal that will be used to refinance existing debt, to finance an acquisition, to fund a distribution and for general corporate purposes.

Tecta is a Rosemont, Ill.-based provider of commercial roofing services.

RSA sets guidance

RSA Security held its call on Monday and announced price talk on its $2 billion of term loans, according to a market source.

The $1.114 billion seven-year first-lien term loan (B1/B) and $436 million delayed-draw first-lien term loan (B1/B) are talked at Libor plus 450 bps to 475 bps with a 0.75% Libor floor and an original issue discount of 99, and the $286 million eight-year second-lien term loan (Caa1/B-) and $164 million delayed-draw second-lien term loan (Caa1/B-) are talked at Libor plus 775 bps to 800 bps with a 0.75% Libor floor and a discount of 98.5, the source said.

First-and second-lien delayed-draw term loan ticking fees are half the margin from days 46 to 75 and the full margin plus the Libor floor thereafter.

Commitments are due at 5 p.m. ET on April 15.

RSA lead banks

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, UBS Investment Bank, BofA Securities Inc., Barclays and Jefferies LLC are leading RSA’s bank debt, with JPMorgan the left lead on the first-lien loans and Morgan Stanley the left lead on the second-lien loans.

The new debt will be used to support a new equity investment from Clearlake Capital Group LP. With this investment, Clearlake will become an equal partner with Symphony Technology Group, which initially acquired the business in 2020 alongside Ontario Teachers’ Pension Plan Board from Dell Technologies. Ontario Teachers’ will remain a significant minority shareholder.

Closing is expected in the second quarter, subject to regulatory approvals.

RSA is a Bedford, Mass.-based provider of mission critical cybersecurity software and governance risk and compliance management software solutions to enterprises.

Aecom holds call

Aecom hosted a call at 1 p.m. ET to launch a $500 million seven-year term loan B (Baa3/BBB-) talked at Libor plus 200 bps with a 0% Libor floor and an original issue discount of 99, a market source said.

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

BofA Securities Inc. is leading the deal that will be used to fund a tender offer for the company’s 5.875% senior notes due 2024.

The tender offer expires on April 20.

Aecom is a Los Angeles-based infrastructure consulting firm.

Savers size emerges

Savers will be launching a $600 million first-lien term loan on its previously announced Tuesday lender call, a market source remarked.

KKR Capital Markets, Jefferies LLC and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help fund the buyout of the company by Ares from Crescent Capital Group LP. Ares is currently a minority owner of the company, but will gain full ownership with this transaction.

Closing is subject to customary conditions.

Savers is a Bellevue, Wash.-based thrift store chain.

SubCom joins calendar

SubCom set a lender call for noon ET on Tuesday to launch a $730 million first-lien term loan (B), according to a market source.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Jefferies LLC, Morgan Stanley Senior Funding Inc. and MUFG are leading the deal that will be used to fund a dividend to shareholders.

Cerberus is the sponsor.

SubCom is an Eatontown, N.J.-based provider of turnkey subsea fiber optic networks with engineering, manufacturing, installation and maintenance capabilities.

OB Hospitalist on deck

OB Hospitalist Group will hold a lender call on Tuesday to launch a fungible $100 million incremental first-lien term loan talked at Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99.27, market sources said.

Antares Capital is leading the deal that will be used to fund a shareholder dividend.

The company currently has a $192 million first-lien term loan due August 2024. Pricing on the existing term loan is grid-based and is currently Libor plus 400 bps with a 1% Libor floor, but the spread will be stepping up to Libor plus 425 bps based on the grid.

OB Hospitalist is a Greenville, S.C.-based OB/GYN provider.

OEConnection readies deal

OEConnection scheduled a lender meeting for Tuesday to launch a $75 million incremental first-lien term loan that is talked with an original issue discount of 98.79, according to market sources.

Pricing on the incremental term loan is Libor plus 400 bps with a 0% Libor floor, in line with pricing on the company’s existing $454 million first-lien term loan due September 2026.

Antares Capital is leading the deal that will be used to fund an acquisition.

OEConnection is a Cleveland-based provider of SaaS solutions that help drive genuine original equipment parts sales and services across the entire automotive system.

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