Lucid Energy, PetVet free to trade; American Physician, Golden West, Meridian tweak deals

By Sara Rosenberg

New York, Nov. 22 – Lucid Energy Group II Borrower LLC set the spread and original issue discount on its first-lien term loan at the wide end of guidance before freeing up for trading on Monday, and PetVet Care Centers LLC’s incremental first- and second-lien term loans emerged in the secondary market as well.

In more happenings, American Physician Partners LLC reduced the maturity of its first-lien term loan B and added a financial covenant, and Golden West Packaging Group LLC widened the spread and original issue discount on its first-lien term loan.

Furthermore, Meridian Adhesives Group Inc. increased the size of its add-on term loan and firmed the issue price at the tight end of guidance.

Lucid updated, breaks

Lucid Energy firmed pricing on its $1.5 billion seven-year senior secured first-lien term loan (B2/B) at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, and finalized the original issue discount at 99, the wide end of the 99 to 99.5 talk, according to a market source.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

On Monday, the term loan freed to trade, with levels quoted at 99 bid, 99¼ offered, another source added.

The company is also getting a $150 million five-year super priority senior secured revolver, which is an upsize from its current $100 million revolver.

Jefferies LLC, Goldman Sachs Bank USA and JPMorgan Chase Bank are leading the deal that will be used to refinance existing debt and fund a distribution.

Lucid Energy is a Dallas-based natural gas gathering and processing company operating in the Northern Delaware Basin.

PetVet hits secondary

PetVet’s bank debt freed to trade during the session, with the fungible $600 million incremental first-lien term loan B-3 due February 2025 (B2/B) quoted at par bid, par ¼ offered and the fungible $150 million incremental second-lien term loan due February 2026 (Caa2/CCC+) quoted at par bid, par ¾ offered, a market source remarked.

Pricing on the incremental first-lien term loan is Libor plus 350 bps with a 0.75% Libor floor and pricing on the incremental second-lien term loan is Libor plus 625 bps with a 0% Libor floor, both in line with existing pricing. The incremental first-lien term loan was sold at an original issue discount of 99.75, and the incremental second-lien term loan was issued at par.

During syndication, the incremental first-lien term loan was upsized from $450 million and the discount was tightened from 99.5, and the issue price on the incremental second-lien term was revised from 99.75.

PetVet lead banks

Jefferies LLC and KKR Capital Markets are the bookrunners on PetVet’s term loans, with Jefferies the left lead on the first-lien and KKR the left lead on the second-lien.

Proceeds will be used to finance the company’s acquisition pipeline.

Pro forma for the transaction, the first-lien term loan will total about $1.541 billion and the second-lien term loan will total $440 million.

PetVet is a Westport, Conn.-based operator of general practice and specialty veterinary hospitals.

American Physician tweaked

In other news, American Physician Partners changed the maturity of its $520 million first-lien term loan B (B3/B-) to six years from seven years and added a 7.75x total net leverage covenant without step-downs to the originally covenant-lite loan, a market source said.

Talk the term loan is SOFR+CSA plus 625 bps with a 50 bps step-down at 4x total net leverage, a 0.75% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and an original issue discount of 96 to 97. The debt is non-callable for one year, then at 102 in year two and 101 in year three.

Previously in syndication, pricing on the term loan was raised from talk in the range of SOFR+CSA plus 475 bps to 500 bps, the step-down was added, the discount talk was revised from 99, the call protection was modified from a 101 soft call for six months, and amortization was lifted to 5% in years one and two and 7.5% thereafter from 1% per annum.

Commitments are due at noon ET on Nov. 30, the source added.

Deutsche Bank Securities Inc., Regions Bank, Nomura and Siemens are leading the deal that will be used to refinance existing debt and fund acquisitions under letters of intent.

American Physician is a Brentwood, Tenn.-based emergency department management platform.

Golden West flexes

Golden West Packaging raised pricing on its $290 million six-year covenant-lite first-lien term loan (B2/B-) to Libor plus 525 bps from Libor plus 500 bps and adjusted the original issue discount to 99 from 99.5, according to a market source.

Also, amortization on the term loan was modified to 2.5% in year one and 5% thereafter, the source said.

The 0.75% Libor floor and 101 soft call protection for six months on the term loan were unchanged.

Commitments are due on Tuesday, the source added.

Citizens Bank is leading the deal that will be used to refinance existing debt and fund a tuck-in acquisition.

Lindsay Goldberg is the sponsor.

Golden West Packaging is a City of Industry, Calif.-based provider of corrugated and specialty packaging solutions serving the food and beverage, wine, consumer products, and produce end markets.

Meridian upsizes

Meridian Adhesives Group lifted its fungible add-on term loan due 2028 to $120 million from $100 million and firmed the original issue discount at 99.5, the tight end of the 99 to 99.5 talk, a market source remarked.

Pricing on the add-on term loan is Libor plus 400 bps with a 0.75% Libor floor and the debt has 101 soft call protection for six months.

Recommitments are due at 10 a.m. ET on Tuesday, the source added.

JPMorgan Chase Bank, Jefferies LLC and RBC Capital Markets are leading the deal that will be used to fund acquisitions and for general corporate purposes.

Meridian Adhesives is a manufacturer of high-value adhesive technologies.

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