Intertape Polymer Group, Kofax term loans free to trade; FirstStudent readies new deal

By Sara Rosenberg

New York, June 15 – Intertape Polymer Group Inc. (Iris Holdings Inc.) modified the original issue discount on its first-lien term loan and sweetened the call protection before breaking for trading during Wednesday’s session.

Also, ahead of making its way into the secondary market, Kofax increased the size of its U.S. first-lien term loan B as plans for a euro first-lien term loan were terminated, and set the issue price at the wide end of guidance.

Meanwhile, in other news, FirstStudent & FirstTransit surfaced with plans to bring nonfungible incremental term loans to market this week.

Intertape revised, trades

Intertape Polymer changed the original issue discount on its $1.5 billion six-year first-lien term loan (B2/B) to 92 from talk in the range of 93 to 94 and extended the 101 soft call protection to one year from six months, a market source remarked.

Pricing on the term loan was unchanged at SOFR+10 basis points CSA plus 475 bps with a 0.5% floor.

Recommitments were due at 11 a.m. ET on Wednesday and the term loan broke for trading later in the day, with levels quoted at 92 bid, 93 offered, another source added.

The company’s $1.75 billion of credit facilities also include a $250 million ABL revolver (Ba3).

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies LLC and BMO Capital Markets are leading the deal that will be used with $400 million of unsecured notes to help fund the buyout of the company by Clearlake Capital Group LP for C$40.50 per share in an all-cash transaction valued at about US$2.6 billion, including net debt.

Closing is expected next quarter, subject to receipt of shareholder, regulatory and court approvals.

Intertape, based in Montreal and Sarasota, Fla., is a provider of packaging and protective solutions.

Kofax reworked

Kofax lifted its U.S. seven-year first-lien term loan B (B2/B/BB-) to $1.346 billion from $1.025 billion, firmed the original issue discount at 93, the wide end of the 93 to 94 talk, made some revisions to documentation, and eliminated plans for a €300 million seven-year first-lien term loan B, a market source said.

As before, the first-lien term loan is priced at SOFR+10 bps CSA plus 525 bps with a 0.5% floor and has 101 soft call protection for six months.

The eliminated euro loan was talked at Euribor plus 525 bps with a 0% floor and a discount of 93 to 94.

JPMorgan Chase Bank, Credit Suisse, UBS Securities, Jefferies LLC, Blackstone Credit, PSP Investments, Wells Fargo Securities LLC, Antares Capital, Security Benefit, BMO Capital Markets, Goldman Sachs, KKR Capital Markets, Stone Point Capital and Brinley Partners LP are leading the deal.

Kofax breaks

Recommitments for Kofax’s first-lien term loan were due at noon ET on Wednesday and the debt began trading in the afternoon, with levels quoted at 93 bid, 94 offered, another source added.

The first-lien term loan will be used with a $348 million privately placed second-lien term loan (Caa2/CCC+/CCC+) to help fund the buyout of the company by Clearlake Capital Group LP and TA Associates from Thoma Bravo.

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

Kofax is an Irvine, Calif.-based provider of intelligent automation software.

FirstStudent on deck

In more happenings, FirstStudent set a lender call for 10:30 a.m. ET on Thursday to launch $770 million of incremental term loans, split between a nonfungible $720 million term loan B due July 21, 2028 and a nonfungible $50 million term loan C due July 21, 2028, according to a market source.

The term loans, which will trade as a strip, have 101 soft call protection for six months, the source said.

Barclays, Morgan Stanley Senior Funding Inc., BMO Capital Markets, RBC Capital Markets, Jefferies LLC, Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Citizens Bank, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., MUFG and Stifel are leading the deal.

The loans will be used with $140 million of sponsor cash equity, $140 million of PIK preferred equity and $100 million of PIK seller notes to fund the acquisition of Total Transportation Corp.

Closing is expected by the end of summer.

First Student is a Cincinnati-based provider of student transportation and public transit management and contracting services. Total Transportation is a Brooklyn, N.Y.-based provider of general and special education student transportation, paratransit and charter services.

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