Fluidra, Summit Behavioral free to trade; Dodge Construction, McAfee ready deals

By Sara Rosenberg

New York, Jan. 21 – Fluidra (Zodiac Pool Solutions LLC) firmed the issue price on its euro term loan B at the tight end of revised talk and broke for trading its U.S. term loan, and Summit Behavioral Healthcare LLC’s incremental first-lien term loan freed up as well.

In more happenings, Dodge Construction Network (Dodge Data & Analytics LLC) and McAfee Corp. joined the near-term primary calendar.

Fluidra updated

Fluidra set the issue price on its €450 million seven-year covenant-lite term loan B (Ba2) at par, the tight end of revised talk of 99.75 to par and tighter than initial talk of 99.5, according to market sources.

Pricing on the euro term loan is Euribor plus 225 basis points with a 0% floor.

Along with the euro term loan, the company is getting a $750 million seven-year covenant-lite term loan B (Ba2) priced at SOFR+CSA plus 200 bps with a 0.5% floor and an original issue discount of 99.75.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Both term loans have 101 soft call protection for six months and amortization of 1% per annum.

Earlier in syndication, pricing on the U.S. term loan finalized at the low end of the SOFR+CSA plus 200 bps to 225 bps talk and the discount was changed from 99.5.

The company is also getting a €450 million senior secured revolver due 2027.

Fluidra hits secondary

Fluidra’s U.S. term loan broke for trading on Friday, with levels quoted at par 1/8 bid, par 5/8 offered, one source remarked.

The euro term loan will free to trade on Monday morning, another source added.

BBVA, Citigroup Global Markets Inc. and HSBC are the joint global coordinators and bookrunners on the deal, with BBVA the sole sustainability coordinator, Citi the sole left lead on the U.S. term loan and HSBC the sole left lead on the euro term loan. BofA Securities Inc., BNP Paribas Securities Corp., JPMorgan Chase Bank and Santander are joint bookrunners.

The loans will be used to refinance existing debt, for general corporate purposes and to pay related transaction fees and expenses.

Closing is expected on Thursday.

Fluidra is a Sabadell, Spain-based provider of pool equipment and wellness solutions.

Summit starts trading

Summit Behavioral Healthcare’s fungible $150 million incremental first-lien term loan (B2/B-) emerged in the secondary market, with levels quoted at 98½ bid, 99½ offered, a market source said.

Pricing on the incremental term loan is Libor plus 475 bps with a 0.75% Libor floor, in line with existing term loan pricing, and the new debt was sold at an original issue discount of 97.

Jefferies LLC is leading the deal that will be used to fund the acquisition of Strategic Behavioral Health.

Pro forma for the transaction, the first-lien term loan will total $609 million.

Summit Behavioral is a Franklin, Tenn.-based behavioral health services provider with a focus on the substance use disorder and acute psychiatric treatment end markets.

Dodge Construction on deck

In other news, Dodge Construction set a lender call for 10 a.m. ET on Tuesday to launch $585 million of term loans, split between a $455 million seven-year covenant-lite first-lien term loan and a $130 million eight-year covenant-lite second-lien term loan, according to a market source.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due on Feb. 8, the source added.

Deutsche Bank Securities Inc., UBS Investment Bank, Wells Fargo Securities LLC, BMO Capital Markets and RBC Capital Markets are leading the first-lien, with Deutsche the left lead. UBS and Deutsche are leading the second-lien, with UBS the left lead.

The loans will help fund a recapitalization in connection with a significant new equity investment from Clearlake Capital Group LP. Clearlake will be an equal partner with the company’s existing investor, Symphony Technology Group.

Dodge is a Hamilton, N.J.-based data platform supporting the commercial construction industry.

McAfee plans call

McAfee will hold a lender call at 11 a.m. ET on Monday to launch a new loan transaction, a market source remarked.

The company disclosed in November that it has a commitment for $7.66 billion of credit facilities and a $2.32 billion senior unsecured bridge facility.

As committed, the credit facilities consist of a $1 billion first-lien cash flow revolver and a $6.66 billion first-lien term loan.

JPMorgan Chase Bank, BofA Securities Inc., Credit Suisse, Barclays, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., RBC Capital Markets, CPPIB Credit Investments III Inc., UBS Securities LLC and PSP Investments Credit II USA LLC provided the debt commitment.

McAfee being acquired

Proceeds from McAfee’s debt commitment will be used to help fund its acquisition by an investor group led by Advent International Corp., Permira Advisers LLC, Crosspoint Capital Partners, Canada Pension Plan Investment Board, GIC Private Ltd. and Abu Dhabi Investment Authority

McAfee is being bought for $26.00 per share in an all-cash transaction valued at about $12 billion on an equity value basis, and over $14 billion on an enterprise value basis after giving effect to repayment of McAfee debt.

The buyout is also expected to be funded with $5.2 billion of equity, and PSP Investments Credit USA LLC and investment funds managed by Neuberger Berman have agreed to provide the investor group with preferred equity financing with an aggregate liquidation preference of up to $800 million, subject to customary conditions.

Closing is anticipated in the first half of this year, subject to customary conditions, including approval by McAfee shareholders and regulatory approvals.

McAfee is a San Jose, Calif.-based provider of online protection for consumers.

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