Lakeshore, Global Medical, Therma break; Medline, MDVIP, Mold-Rite, Xplornet, Oryx revised

By Sara Rosenberg

New York, Sept. 29 – Lakeshore Learning (Lakeshore Intermediate LLC) lowered pricing on its first-lien term loan, removed the step-downs and made some changes to documentation before freeing up for trading, and deals from Global Medical Response and Therma Holdings LLC (Refficiency Holdings LLC) made their way into the secondary market too.

In more happenings, Medline Industries reworked its U.S. and euro term loan sizes and updated price talk, MDVIP modified sizes, spreads and issue prices on its first -and second-lien term loans, and Mold-Rite Plastics LLC (Valcour Packaging LLC) increased the size of its first-lien term loan, and tightened the spread and original issue discount.

Also, Xplornet Communications Inc. moved some funds between its first -and second-lien term loans and updated pricing, and Oryx Midstream Services Permian Basin LLC upsized its term loan B, reduced the spread and finalized the issue price at the tight end of guidance.

Additionally, Jack Entertainment LLC (Jack Ohio Finance LLC) trimmed pricing on its first-lien term loan and revised the original issue discount, and Spirit AeroSystems Holdings Inc. tightened price talk on its term loan B.

Furthermore, Ali Group, APi Group Inc., Trade Me Group Ltd. (Titan Acquisitionco) and Inmar Inc. released price talk with launch, and Restoration Hardware Inc. and Wells Enterprises Inc. surfaced with new deal plans.

Lakeshore flexes, trades

Lakeshore Learning trimmed pricing on its $580 million seven-year first-lien term loan to Libor plus 350 basis points from talk in the range of Libor plus 375 bps to 400 bps and eliminated the 25 bps step-down at 4x leverage, a market source remarked.

In addition, the MFN was changed to 50 bps with a six-month sunset from 75 bps with a six-month sunset, leverage-based asset sale mandatory repayment step-downs were removed, and J. Crew, Serta and Chewy protections were added, the source said.

The 0.5% Libor floor, original issue discount of 99.5 and 101 soft call protection for six months on the term loan were unchanged.

Commitments were due at noon ET on Wednesday and the term loan broke for trading later in the day, with levels quoted at 99¾ bid, par ¼ offered, another source added.

Jefferies LLC, BMO Capital Markets, Macquarie Capital (USA) Inc., Citizens and KeyBanc Capital Markets are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners.

Lakeshore is a Carson, Calif.-based developer, distributor, and retailer of educational products and classroom furniture, primarily serving the Early Childhood Education and K-5 markets.

Global Medical breaks

Global Medical Response’s $1.98 billion term loan due October 2025 freed up, with levels quoted at par ¼ bid, par 5/8 offered, according to a market source.

Pricing on the term loan is Libor plus 425 bps with a 1% Libor floor and it was issued at par. The debt has 101 soft call protection for six months.

KKR Capital Markets is the left lead on the deal that will be used to reprice an existing term loan due October 2025 down from Libor plus 475 bps with a 1% Libor floor.

Global Medical Response is a Greenwood Village, Colo.-based medical transportation and response company.

Therma hits secondary

Therma Holdings’ $370 million incremental first-lien term loan due December 2027, repriced $388.05 million first-lien term loan, $71,691,533 incremental first-lien delayed-draw term loan due December 2027 and repriced $75 million delayed-draw term loan broke for trading too, with the strip of debt quoted at 99 7/8 bid, par ¼ offered, a trader said.

Pricing on the term loan debt is Libor plus 375 bps with two 25 bps leverage-based step-downs and a 25 bps step-down following an IPO, and a 0.75% Libor floor. The incremental funded term loan was sold at an original issue discount of 99.75, the repriced funded term loan was issued at par, and the incremental and repriced delayed-draw term loans were issued at a discount of 99. All of the term loans have 101 soft call protection for six months.

Proceeds from the incremental term loans will be used to repay an equity bridge, fund acquisitions and, due to the upsizings, to add cash to the balance sheet for general corporate purposes.

Therma lead banks

Jefferies LLC, Societe Generale, BMO Capital Markets Corp. and MUFG are leading Therma Holdings’ term loans.

During syndication, the incremental funded term loan was upsized from $350 million, the incremental delayed-draw term loan was upsized from $67,816,310, pricing on the incremental term loan debt was lowered from Libor plus 400 bps, the discount on the incremental funded term loan was tightened from 99.5, the repricing of the existing debt from Libor plus 400 bps with a 0.75% Libor floor was added and the call protection was added.

Therma Holdings is a San Jose, Calif.-based full life-cycle energy solutions provider.

Medline modified

Medline Industries increased its U.S. seven-year term loan to $6.5 billion and scaled back its euro seven-year term loan to $500 million equivalent from $1 billion equivalent, however, the U.S. term loan will grow even further as funds are being moved from the company’s unsecured notes offering, according to a market source.

The company plans to shift $1.5 billion out of its originally $4 billion unsecured notes offering to its originally $3.77 billion senior secured notes and U.S. term loan B, with the final split of how much is going to the senior secured notes and how much is going to the U.S. term loan B still to be determined. The U.S. term loan B size could end up north of $7 billion, the source said.

Final sizes are expected to be determined on Thursday.

Pricing on the U.S. term loan was cut to Libor plus 325 bps from talk in the range of Libor plus 350 bps to 375 bps and the original issue discount firmed at 99.5, the tight end of the 99 to 99.5 talk, and pricing on the euro term loan firmed at Euribor plus 350 bps, the low end of the Euribor plus 350 bps to 375 bps talk, and the original issue discount talk was revised to a range of 99.5 to 99.75 from a range of 99 to 99.5, the source continued.

As before, the U.S. term loan has a 0.5% Libor floor, the euro term loan has a 0% floor and both loans have 101 soft call protection for six months.

Medline being acquired

Medline’s term loans and bonds will be used to help fund its buyout by Blackstone, Carlyle and Hellman & Friedman.

BofA Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, Morgan Stanley Senior Funding Inc., MUFG, BMO Capital Markets, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Jefferies LLC, Macquarie Capital (USA) Inc., UBS Investment Bank, Wells Fargo Securities LLC, Bank of the West, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Mizuho, Nomura, RBC Capital Markets, Santander, Truist, ING, Societe Generale, Sumitomo, Bank of Nova Scotia and TD Securities (USA) LLC are leading the loans.

Recommitments are due at 10 a.m. ET on Thursday, with allocations expected thereafter, the source added.

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

Medline is a Northfield, Ill.-based manufacturer and distributor of health care supplies to hospitals, post-acute settings, physician offices and surgery centers.

MDVIP reworked

MDVIP lifted its seven-year first-lien term loan (B2/B) to $530 million from $500 million and reduced pricing to Libor plus 375 bps from Libor plus 400 bps, and scaled back its eight-year second-lien term loan (Caa2/CCC+) to $170 million from $185 million and cut pricing to Libor plus 650 bps from talk in the range of Libor plus 675 bps to 700 bps, a market source remarked.

Also, the original issue discount on the first -and second-lien term loans was revised to 99.5 from 99.

As before, the first-lien term loan has two 25 bps pricing step-downs at 5.1x and 4.6x first-lien net leverage, a 0.5% Libor floor and 101 soft call protection for six months, and the second-lien term loan has a 0.5% Libor floor and hard call protection of 102 in year one and 101 in year two.

MDVIP deadline

Recommitments for MDVIP’s first -and second-lien term loans were due at noon ET on Wednesday, the source added.

Goldman Sachs Bank USA, Jefferies LLC, Societe Generale, KeyBank Capital Markets, KKR Capital Markets, Citizens Bank and Stone Point are leading the deal, with Goldman left on the first-lien and Jefferies left on the second-lien.

The new debt will be used to help fund the buyout of the company by Goldman Sachs Asset Management and Charlesbank Capital Partners from Leonard Green & Partners and Summit Partners.

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

MDVIP is a Boca Raton, Fla.-based provider of membership-based private health care services.

Mold-Rite revised

Mold-Rite Plastics raised its seven-year covenant-lite first-lien term loan (B2/B-) to $420 million from $400 million, flexed pricing to Libor plus 375 bps from Libor plus 400 bps and adjusted the original issue discount to 99.5 from 99, according to a market source.

As before, the first-lien term loan has a 0.5% Libor floor and 101 soft call protection for six months.

The company is also in market with a $160 million eight-year covenant-lite second-lien term loan (Caa2/CCC) talked at Libor plus 675 bps to 700 bps with a 0.5% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Commitments continue to be due at noon ET on Thursday, the source added.

Deutsche Bank Securities Inc. is the left lead on the deal that will be used to help fund the buyout of the company by Clearlake Capital Group LP from Irving Place Capital. The equity contribution for the transaction is being reduced with funds from the first-lien term loan upsizing.

Mold-Rite is a Plattsburgh, N.Y.-based manufacturer of packaging components.

Xplornet retranches

Xplornet Communications increased its seven-year first-lien term loan to $995 million from $920 million and set pricing at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk, and decreased its eight-year second-lien term loan to $200 million from $275 million and firmed the spread at Libor plus 700 bps, the high end of the Libor plus 675 bps to 700 bps talk, a market source said.

Furthermore, pricing steps were removed and changes were made to documentation.

The first-lien term loan still has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan still has a 0.5% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Barclays is the left lead on the deal that will be used to finance the acquisition of spectrum, fund a tuck-in acquisition and refinance an existing first-lien term loan.

Xplornet is a Woodstock, N.B.-based broadband service provider in Canada.

Oryx sets changes

Oryx Midstream Services lifted its seven-year senior secured term loan B to $1.6 billion from $1.5 billion, trimmed pricing to Libor plus 325 bps from Libor plus 350 bps and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

The 0.5% Libor floor and 101 soft call protection for six months on the term loan were unchanged.

Commitments continued to be due at 5 p.m. ET on Wednesday, the source added.

Barclays, RBC Capital Markets, Goldman Sachs Bank USA, Truist and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt, and fund working capital needs and other general corporate purposes.

Oryx Midstream is a Midland, Tex.-based midstream crude operator in the Permian Basin.

Jack tweaks deal

Jack Entertainment reduced pricing on its $250 million seven-year covenant-lite first-lien term loan to Libor plus 475 bps from talk in the range of Libor plus 500 bps to 525 bps and moved the original issue discount to 99.5 from 99, a market source remarked.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $275 million of credit facilities (B2/B-) also include a $25 million revolver.

Recommitments are due at 10:30 a.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and KeyBanc Capital Markets are leading the deal that will be used to refinance existing debt, to fund a shareholder distribution and for general corporate purposes.

Jack Entertainment is a Cleveland-based regional gaming operator.

Spirit tightens

Spirit AeroSystems lowered price talk on its $600 million term loan B (Ba2/BB-) due January 2025 to a range of Libor plus 375 bps to 400 bps from a range of Libor plus 425 bps to 450 bps, and revised the original issue discount talk to a range of 99.75 to par from 99.5, according to a market source.

As before, the term loan has a 0.5% Libor floor and 101 soft call protection for six months.

Commitments are due at 4 p.m. ET on Thursday, accelerated from 10 a.m. ET on Friday, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to refinance an existing term loan B due January 2025 that is priced at Libor plus 525 bps with a 0.75% Libor floor and for general corporate purposes.

Spirit AeroSystems is a Wichita, Kan.-based designer and builder of aerostructures for both commercial and defense customers.

Ali Group guidance

Ali Group held its call on Wednesday morning and announced talk on its $2.25 billion seven-year term loan B (Baa3/BB+) at Libor plus 225 bps to 250 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

The term loan B has ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Commitments are due on Oct. 12, the source added

Goldman Sachs and Mediobanca are leading the deal that will be used to help fund the acquisition of Welbilt Inc. for $24.00 per share, or about $3.5 billion in aggregate equity value and $4.8 billion in enterprise value, to refinance Welbilt debt and to add cash to the balance sheet.

Based on SEC filings, the company is also expected to get a $250 million revolver and a $1.25 billion equivalent euro term loan A, and has a commitment for a $750 million senior secured bridge loan.

Closing is expected in early 2022, subject to customary conditions.

Ali is a Milan, Italy-based foodservice equipment company. Welbilt is a New Port Richey, Fla.-based commercial foodservice equipment company.

APi proposed terms

APi Group Inc. launched on its morning call a $1.1 billion seven-year incremental covenant-lite first-lien term loan B (Ba1/BB-) talked at Libor plus 275 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Oct. 7, the source added.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets, UBS Investment Bank, JPMorgan Chase Bank, U.S. Bank and Blackstone are leading the deal that will be used to help fund the acquisition of the Chubb Fire & Security, a U.K.-based fire safety and security provider, from Carrier Global Corp. for an enterprise value of $3.1 billion, which is comprised of $2.9 billion cash and about $200 million of assumed liabilities and other adjustments.

Other funds for the Chubb transaction are expected to come from cash on hand and a perpetual preferred equity financing from Blackstone Group and Viking Global Investors.

Closing is expected in early January, subject to a consultation process and standard regulatory approvals.

APi is a New Brighton, Minn.-based business services provider of safety, specialty and industrial services.

Trade Me talk

Trade Me Group came out with talk of Libor plus 400 bps to 425 bps with a 0.5% Libor floor and an original issue discount of 99 on the U.S. portion of its $775 million equivalent U.S and New Zealand dollar seven-year first-lien term loan (B2/B-) shortly before its afternoon lender call began, a market source remarked.

The U.S. portion of the first-lien term loan will have a minimum size of $600 million.

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

Commitments are due at 5 p.m. ET on Oct. 7.

The company is also getting a $107 million revolver and a $331 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to repay existing debt and fund a shareholder distribution.

Trade Me is an operator of online classified marketplaces for motor vehicles, property and jobs in New Zealand.

Inmar holds call

Inmar emerged in the morning with plans to hold a lender call at 1:30 p.m. ET to launch a fungible $150 million incremental covenant-lite first-lien term loan due May 2024 talked with an original issue discount of 99.5 to 99.75, a market source said.

Pricing on the incremental term loan is Libor plus 400 bps with a 1% Libor floor, in line with existing term loan pricing.

Commitments are due at 5 p.m. ET on Oct. 6, the source added.

Credit Suisse Securities (USA) LLC is leading the deal that will be used for acquisition financing, to pay down a revolver draw and to pay fees and expenses.

Inmar is a Winston-Salem, N.C.-based technology enabled promotion and inventory, logistics and settlement services company.

Restoration joins calendar

Restoration Hardware set a lender call for noon ET on Thursday to launch a $1.5 billion seven-year term loan B (Ba2/BB), according to a market source.

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

BofA Securities Inc. is the left lead on the deal that will be used to refinance convertible notes and for general corporate purposes.

Restoration Hardware is a Corte Madera, Calif.-based upscale home furnishings company.

Wells Enterprises on deck

Wells Enterprises scheduled a lender call for 10 a.m. ET on Thursday to launch a fungible $100 million add-on term loan, a market source remarked.

BMO Capital Markets is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Wells Enterprises is a Le Mars, Iowa-based ice cream and frozen treat manufacturer.

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