Alphia breaks; Berry Global updated; iSolved, BJ’s Wholesale revise commitment deadlines

By Sara Rosenberg

New York, Oct. 3 – Alphia Inc.’s term loan B freed to trade during Tuesday’s market hours, with the debt bid in line with its original issue discount.

In more happenings, Berry Global Group Inc. reduced the size of its first-lien term loan AA, and iSolved and BJ’s Wholesale Club Inc. moved up the commitment deadlines for their term loans.

Also, ADT Inc. (Prime Security Services Borrower LLC), HomeServe North America and Citco disclosed price talk in connection with their lender calls.

Alphia hits secondary

Alphia’s $640 million seven-year term loan B (B2/B) broke for trading, with levels quoted at 95 bid, 96 offered, according to a market source.

Pricing on the term loan B is SOFR plus 500 basis points with a 0.5% floor and it was sold at an original issue discount of 95. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from SOFR plus 450 bps, pricing step-downs were removed, the discount widened from talk in the range of 97 to 98, the call protection was extended from six months, lender friendly modifications were made to documentation, a requirement for quarterly lender calls and management discussion and analysis was added, and Serta, Chewy and J Crew protections were added.

Goldman Sachs Bank USA, Jefferies LLC, BMO Capital Markets, Citizens, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Rabobank, SMBC and Wells Fargo Securities LLC are leading the deal that will be used to help fund the buyout of the company by PAI Partners from J.H. Whitney Capital Partners.

Closing is subject to customary conditions, including the receipt of certain regulatory approvals.

Alphia is a Denver-based contract manufacturer of dry pet food and treats.

Berry downsized

Moving to the primary market, Berry Global scaled back its first-lien term loan AA due July 2029 to $1.55 billion from $3.09 billion, according to a market source.

As before, the term loan AA is priced at SOFR+CSA plus 175 basis points with a 0% floor and an original issue discount of 99.75, and has 101 soft call protection for six months. CSA is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate.

Earlier in syndication, the discount on the term loan firmed at the wide end of the 99.75 to 99.875 talk.

Allocations went out on Tuesday.

Goldman Sachs Bank USA is the left lead on the deal. Credit Suisse is the administrative agent.

The term loan AA will be used to amend and extend a portion of the company’s existing first-lien term loan due July 2026.

Berry Global is an Evansville, Ind.-based, supplier of rigid, flexible and non-woven products sold into consumer-oriented end markets.

iSolved accelerated

iSolved moved the commitment deadline for its $550 million seven-year first-lien term loan to 5 p.m. ET on Wednesday from Oct. 10, according to a market source.

Talk on the term loan is SOFR plus 425 bps with a 0.5% floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $625 million of credit facilities (B2/B) also include a $75 million five-year revolver.

UBS Investment Bank, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Jefferies LLC and JPMorgan Chase Bank are leading the deal that will be used to repay existing debt, to fund cash to the balance sheet and for general corporate purposes.

Accel-KKR is the sponsor.

iSolved is a provider of cloud based human capital management software, focusing on SMB and midmarket organizations.

BJ’s tweaks timing

BJ’s Wholesale Club accelerated the commitment deadline for new lenders and banks for its $400 million covenant-lite term loan B due February 2029 to 3 p.m. ET on Tuesday from noon ET on Thursday, a market source remarked.

Commitments from existing lenders were already due at 5 p.m. ET on Monday.

Talk on the term loan is SOFR plus 200 bps to 225 bps with a 0% floor, a par issue price and 101 soft call protection for six months.

Deutsche Bank Securities Inc., Nomura Securities, BofA Securities Inc. and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt.

BJ’s is a Marlborough, Mass.-based warehouse club operator.

ADT proposed terms

ADT held its lender call on Tuesday afternoon and announced price talk on its $1.4 billion seven-year term loan B (Ba2/BB) at SOFR plus 250 bps to 275 bps with a 0% floor and an original issue discount of 99, according to a market source.

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

Commitments are due at 5 p.m. ET on Oct. 10.

Barclays, Deutsche Bank Securities Inc., Mizuho, RBC Capital Markets, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., MUFG, BNP Paribas Securities Corp. and Citizens Bank are leading the deal that will be used with cash from the balance sheet and proceeds from the recently completed $1.6 billion sale of ADT’s commercial security, fire and life safety business to GTCR to refinance an existing term loan B due 2026.

First-lien net leverage will be about 2.5x and total net leverage will be about 2.9x.

ADT is a Boca Raton, Fla.-based provider of security, automation and smart home solutions services.

HomeServe talk

HomeServe came out with price talk of SOFR plus 325 bps to 350 bps with a 0% floor and an original issue discount of 99 on its $1.05 billion seven-year term loan B (B1/BB-) in connection with its afternoon lender call, a market source remarked.

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

Commitments are due at 5 p.m. ET on Oct. 12.

Deutsche Bank Securities Inc., MUFG, RBC Capital Markets, ING, BofA Securities Inc. and Brookfield Capital Solutions are leading the deal that will be used to refinance the company’s existing capital structure.

HomeServe is a Norwalk, Conn.-based provider of low-cost service plans, repair and energy efficiency services.

Citco guidance

Citco launched on its morning call its fungible $410 million add-on term loan B due April 2028 with original issue discount talk of 99 to 99.5, according to a market source.

Like the existing term loan B, the add-on term loan is priced at SOFR plus 350 bps with a 0.5% floor, and has 101 soft call protection expiring this month.

Commitments are due on Oct. 12, the source added.

Goldman Sachs Bank USA is the left lead on the deal. UBS Investment Bank is the administrative agent.

The term loan will be used to fund a minority shareholder recapitalization.

Citco is an independent pure play hedge fund, private equity and real estate administrator.

Fund flows

In other news, actively managed loan fund flows on Monday were negative $42 million and loan ETFs were negative $168 million, sources said.

Outflows for loan funds week-to-date total an estimated $317 million, compared to outflows in the prior week of $356 million, sources added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.