United, OB, OEConnection updated; Wheel Pros, Wells Fargo, Signature, Gogo and more set talk

By Sara Rosenberg

New York, April 13 – In the primary market on Tuesday, United Airlines Inc. trimmed the spread on its term loan B and accelerated the commitment deadline, OB Hospitalist Group revised the original issue discount on its incremental first-lien term loan, and OEConnection moved some funds between its funded and delayed-draw term loans and modified the issue price on the debt.

Also, Wheel Pros Inc., Wells Fargo Asset Management (Zebra Buyer LLC), Signature Aviation plc, Gogo Intermediate Holdings LLC, FleetCor Technologies Inc., Liberty Tire Recycling (LTR Intermediate Holdings Inc.), Midwest Veterinary Partners LLC and ICP Group released price talk with launch.

Furthermore, Mavis Tire Express Services TopCo LP, Mitratech and Aryzta North America (Alpine U.S. Bidco LLC) joined this week’s primary calendar.

United cuts spread

United Airlines reduced pricing on its $3.5 billion seven-year senior secured term loan B (Ba1/BB-/BB) to Libor plus 400 basis points from Libor plus 450 bps and moved up the commitment deadline to 5 p.m. ET on Tuesday from noon ET on Thursday, according to a market source.

As before, the term loan is talked with 0.75% Libor floor, an original issue discount of 98.5 to 99, and call protection of non-callable for one year, then at 102 in year two.

The company also plans to get a $1.75 billion senior secured revolver due 2025.

JPMorgan Chase Bank, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp. and Credit Agricole are leading the deal.

The Chicago-based airline company will use the new term loan and $5.5 billion of senior secured notes to repay in full a $1.4 billion term loan entered into on March 29, 2017, $1 billion of revolver borrowings and $520 million outstanding under the CARES Act term loan, for general corporate purposes and to pay fees and expenses relating to the notes offering.

OB Hospitalist tweaked

OB Hospitalist changed the original issue discount on its fungible $100 million incremental first-lien term loan to 99.5 from 99.27, a market source remarked.

Pricing on the incremental term loan is Libor plus 425 bps with a 1% Libor floor.

Allocations are expected on Thursday, the source added.

Antares Capital is leading the deal that will be used with a roughly $17 million pre-placed incremental second-lien term loan 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 Libor plus 400 bps with a 1% Libor floor, but the spread will be stepping up to Libor plus 425 bps based on an existing grid.

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

OEConnection revised

OEConnection lifted its funded incremental first-lien term loan to $100 million from $75 million, trimmed its pre-placed delayed-draw first-lien term loan to $50 million from $75 million and tightened the original issue discount on the incremental first-lien loan to 99 from 98.79, according to a market source.

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.

Allocations are expected on Wednesday, the source added.

Antares Capital is leading the deal (B2/B-) that will be used to finance an acquisition and the extra funded amount will be added to the balance sheet to support the company’s acquisition pipeline.

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

Wheel Pros guidance

Wheel Pros held its call on Tuesday morning and announced price talk on its $1 billion seven-year covenant-lite first-lien term loan (B2/B-) at Libor plus 450 bps to 475 bps with a 0.75% Libor floor and an original issue discount of 99, a market source said.

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

Commitments are due at 5 p.m. ET on April 22.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Jefferies LLC, Credit Suisse Securities (USA) LLC, KKR Capital Markets and UBS Investment Bank are leading the deal that will be used to fund the acquisition of the company by Fund Icon Partners III, a single asset investment vehicle managed by Clearlake Capital Group as general partner, from Clearlake managed funds and refinance existing debt.

Closing is expected in the second quarter.

Wheel Pros is a Denver-based distributor of proprietary branded wheels and performance tires.

Wells Fargo Asset launches

Wells Fargo Asset Management launched on its morning call its $1.24 billion seven-year covenant-lite first-lien term loan B at talk of Libor plus 350 bps with a 0.5% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and a ticking fee of half the margin from days 31 to 60 and the full margin thereafter, the source continued.

The company’s $1.41 billion of senior secured credit facilities (Ba2/BB-/BB) also include a $170 million five-year revolver.

Commitments are due on April 22, the source added.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., UBS Investment Bank, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets are leading the deal that will help fund the $2.1 billion buyout of the asset management firm by GTCR LLC and Reverence Capital Partners LP from Wells Fargo & Co., and pay related fees and expenses.

Closing is expected in the second half of this year, subject to regulatory approvals and contractual consents.

Signature Aviation talk

Signature Aviation came out with official talk of Libor plus 300 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5 on its up to $1.8 billion seven-year covenant-lite term loan B that launched with a call in the morning, a market source remarked.

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

The company’s $2.15 billion of credit facilities (B1/B+) also include a $350 million five-year revolver.

Commitments are due on April 27.

RBC Capital Markets, Santander, Barclays, MUFG and HSBC Securities (USA) Inc. are leading the deal.

Signature being acquired

Signature Aviation will use the credit facilities with $4.157 billion of equity to fund its buyout by Blackstone, Cascade and Global Infrastructure Partners for $5.62 per share in cash. The recommended offer values the entire issued and to be issued share capital of the company at about $4.727 billion.

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

In February, the company entered into an agreement to sell its Engine Repair and Overhaul business to StandardAero for $230 million subject to customary adjustments for net debt, net working capital and transaction expenses.

The sale is expected to deliver about $140 million of net proceeds to Signature. If the sale is completed before the buyout, the term loan B is anticipated to be reduced to around $1.68 billion and if it closes after the buyout, the term loan B is expected to be paid down to around $1.68 billion, a company presentation said.

Signature Aviation is a London-based aviation services company.

Gogo holds call

Gogo launched on its afternoon call its $725 million seven-year covenant-lite first-lien term loan B at talk of Libor plus 400 bps to 425 bps with a step-down based on leverage, a 0.75% Libor floor, an original issue discount of 99 to 99.5 and 101 soft call protection for six months, according to a market source.

The company’s $825 million of senior secured credit facilities (B3/B-) also include a $100 million five-year revolver.

Commitments are due on April 22, the source added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used with cash on hand to repay 9 7/8% secured notes and to refinance and terminate an existing asset-based revolver.

Gogo is a Chicago-based provider of broadband connectivity services for the business aviation market.

FleetCor price talk

FleetCor Technologies released talk on its $1.15 billion seven-year term loan B (Ba1) at Libor plus 200 bps with a 0% Libor floor and an original issue discount of 99.25 in connection with its lender call, a market source remarked.

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

Commitments are due at noon ET on April 22, the source added.

BofA Securities Inc., MUFG, PNC Bank, TD Securities (USA) LLC, Wells Fargo LLC, BMO Capital Markets, Capital One, Fifth Third, Mizuho, Regents Bank and Bank of Nova Scotia are leading the deal that will be used to refinance existing debt and fund an acquisition.

FleetCor is an Atlanta-based business payments company.

Liberty proposed terms

Liberty Tire Recycling held its call in the morning, launching its $410 million seven-year covenant-lite green first-lien term loan B at talk of Libor plus 425 bps to 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

The company’s $470 million of senior secured credit facilities (B3/B-) also include a $60 million five-year revolver.

Commitments are due on April 22, the source added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and BMO Capital Markets are leading the deal that will be used to fund the acquisition of the company by Energy Capital Partners from the Carlyle Group.

Closing is expected in the second quarter, subject to customary conditions.

Liberty Tire is a Pittsburgh-based provider of tire recycling services.

Midwest Vet guidance

Midwest Veterinary Partners held its bank meeting at 1 p.m. ET and, a few hours before the event began, price talk emerged on its $340 million seven-year first-lien term loan at Libor plus 400 bps with a 0.75% 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.

Commitments are due at noon ET on April 22, the source added.

The company’s $525 million of senior secured credit facilities also include a $20 million five-year revolver, a $75 million privately placed delayed-draw first-lien term loan with an 18-month commitment period and a $90 million privately placed eight-year second-lien term loan.

Jefferies LLC and Golub Capital are leading the deal that will be used to refinance the company’s existing debt and place cash on the balance sheet to fund near-term letters of intent pipeline.

Midwest Veterinary, doing business as Mission Veterinary Partners, is a Novi, Mich.-based network of general practice animal hospitals.

ICP OID talk

ICP Group came out with original issue discount talk of 98 to 98.5 on its fungible $200 million incremental term loan B that launched with a call during the session, according to a market source.

Pricing on the incremental term loan is Libor plus 375 bps with a 0.75% Libor floor.

Commitments are due at noon ET on April 20, the source added.

JPMorgan Chase Bank is leading the deal that will be used for acquisition financing.

ICP, an Audax Private Equity portfolio company, is an Andover, Mass.-based manufacturer of specialty coatings, adhesives and sealants.

Mavis readies deal

Mavis Tire set a bank meeting for 11 a.m. ET on Wednesday to launch $2.115 billion of credit facilities, split between a $200 million five-year revolver and a $1.915 billion seven-year senior secured first-lien term loan, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Jefferies LLC, Apollo, Ares, BofA Securities Inc., KKR Capital Markets, GSO, Golub Capital and Stifel are leading the deal that will be used with $820 million of senior notes to help fund the buyout of the company by an investor group led by BayPine LP in partnership with TSG Consumer Partners LP. Golden Gate Capital, Mavis’ current lead financial partner, will retain a minority interest in the company.

Closing is expected in the second quarter.

Mavis is a Millwood, N.Y.-based tire retailer and automotive aftermarket service provider.

Mitratech on deck

Mitratech scheduled a lender call for 1 p.m. ET on Thursday to launch $670 million of credit facilities, a market source said.

The facilities consist of a $40 million revolver, a $445 million covenant-lite first-lien term loan and a $185 million covenant-lite second-lien term loan, the source added.

The company is also getting a $75 million privately placed covenant-lite delayed-draw first-lien term loan.

Golub Capital is the left lead on the deal that will be used to help fund the buyout of the company by Ontario Teachers’ Pension Plan Board. Current investor, Hg Capital, is rolling a portion of their position in the company as part of the transaction. TA Associates is selling its minority investment in the business.

Closing is subject to customary conditions.

Mitratech is an Austin, Tex.-based provider of legal, compliance and operational risk software solutions for law firms and corporates in-house legal departments.

Aryzta readies deal

Aryzta North America will hold a lender call on Wednesday to launch $450 million of term loans, according to a market source.

The debt consists of a $325 million seven-year first-lien term loan (B1/B-) talked at Libor plus 450 bps to 475 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and a $125 million eight-year second-lien term loan (Caa1/CCC+) talked at Libor plus 800 bps to 825 bps with a 0.75% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two, the source said.

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

JPMorgan Chase Bank is leading the deal that will be used to help fund the buyout of the company by Lindsay Goldberg from Aryzta AG.

Closing is subject to customary conditions and regulatory approvals.

Aryzta North America is a provider of frozen baked goods to customers in the quick-service restaurant, foodservice and retail markets.

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