Albertsons, USIC, Save-A-Lot, Zebra, AdvancePierre break; Catalent, Quikrete changes emerge

By Sara Rosenberg

New York, Dec. 2 – Albertsons Cos. LLC’s over $6 billion of repriced term loans made their way into the secondary market on Friday, and deals from USIC Holdings Inc., Save-A-Lot and Zebra Technologies Corp. freed up for trading as well.

In more happenings, AdvancePierre Foods Holdings Inc. firmed the spread on its term loan B repricing at the low end of guidance, and then the debt was seen trading above its issue price.

Also, Catalent Pharma Solutions Inc. updated pricing on its U.S. and euro term loans, and Quikrete Co. upsized its add-on first-lien term loan while tightening the original issue discount and cancelling plans for a second-lien term loan.

Furthermore, EVO Payments International is still working on finalizing terms on its second-lien term loan, with the potential being that the spread may come a bit wide of initial guidance, and Syncsort Inc., First American Payment Systems LP and Mister Car Wash revealed price talk with launch.

Additionally, Novolex (Flex Acquisition Co. Inc.) came out with timing on the launch of its credit facility, and Autoparts Holdings (Fram Group Holdings Inc.), Kraton Polymers LLC, Prime Security Services Borrower LLC (ADT Corp.) and Progrexion joined the near-term new issue calendar.

Albertsons frees up

Albertsons’ term loans began trading, with the $3,271,000,000 term loan B-4 due August 2021 quoted at 100½ bid, 100 7/8 offered, the $1,142,000,000 term loan B-5 due December 2022 quoted at 100 5/8 bid, 101 offered and the $1.6 billion term loan B-6 due June 2023 quoted at 100½ bid, 100 7/8 offered, according to a trader.

Pricing on the term loan B-4 is Libor plus 300 basis points, and pricing on the term loan B-5 and term loan B-6 is Libor plus 325 bps. All of the tranches have a 0.75% Libor floor and 101 soft call protection for six months, and were issued at par.

On Thursday, the spread on the B-4 loan was lifted from Libor plus 275 bps, and the spread on the B-5 and B-6 loans was increased from Libor plus 300 bps.

A Credit Suisse Securities (USA) LLC-led group is leading the $6,013,000,000 of term loans (Ba3/BB) that will be used to reprice the existing term loan B-4 from Libor plus 350 bps with a 1% Libor floor, and the existing term loan B-5 and term loan B-6 from Libor plus 375 bps with a 1% Libor floor.

Albertsons is a Boise, Idaho-based food and drug retailer.

USIC hits secondary

USIC Holdings also freed up, with the $635 million seven-year covenant-light first-lien term loan (B2/B) seen at par bid, 100¾ offered, a market source said.

Pricing on the first-lien term loan is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

On Thursday, pricing on the first-lien term loan was reduced from Libor plus 400 bps, the discount tightened from 99.5 and the MFN sunset provision was removed.

The company’s $885 million credit facility also includes an $85 million revolver (B2/B) and a $165 million privately placed second-lien term loan (Caa2/CCC+).

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and Antares Capital are leading the deal that will be used to fund the recapitalization of the company’s balance sheet.

Closing is expected during the week of Dec. 5.

USIC is an Indianapolis-based provider of underground utility locating services.

Save-A-Lot tops OID

Save-A-Lot’s credit facility emerged in the secondary market too, with the $740 million seven-year senior secured covenant-light term loan B (B2/B) quoted at 97¼ bid, 98¼ offered, according to a market source.

Pricing on the term loan B is Libor plus 600 bps with a 1% Libor floor, and it was sold at an original issue discount of 97. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan B firmed at the high end of the Libor plus 575 bps to 600 bps talk, the discount widened from 99 and the call protection was extended from six months.

The company’s $990 million credit facility also includes a $250 million five-year ABL revolver.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc. and BMO Capital Markets Corp. are leading the deal that will be used to help fund the buyout of the hard-discount grocery retailer by Onex Corp. from Supervalu Inc. for $1,365,000,000 in cash.

Secured and total leverage is around 3.5 times.

Closing is expected during the week of Dec. 5, subject to regulatory approvals and customary conditions.

Zebra starts trading

Another deal to break was Zebra Technologies’ $1,723,000,000 senior secured covenant-light term loan B due Oct. 27, 2021, with levels quoted at 100¾ bid, 101¼ offered, a trader remarked.

The term loan is priced at Libor plus 250 bps, after firming on Thursday at the tight end of the Libor plus 250 bps to 275 bps talk. Included in the loan is a 0.75% Libor floor and 101 soft call protection for six months, and it was issued at par.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 325 bps with a 0.75% Libor floor.

Closing is expected on Tuesday.

Zebra is a Lincolnshire, Ill.-based provider of marking and printing technologies.

AdvancePierre updated, breaks

AdvancePierre set the spread on the repricing of its senior secured covenant-light first-lien term loan B due June 2, 2023 at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, and left the 1% Libor floor, par issue price and 101 soft call protection for six months unchanged, a market source said.

The term loan B is currently sized at $1,095,000,000 but will be reduced to $695 million as the company is issuing $400 million of senior notes to repay some of the term loan B debt. The notes offering was upsized form $350 million, increasing the amount of the term loan B repayment.

Consents/recommitments were due at 10 a.m. ET on Friday, and, in the afternoon, the repriced loan began trading with levels quoted at 100½ bid, 101 offered, a trader added.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc., Barclays and Credit Suisse Securities (USA) LLC are leading the deal that will reprice the term loan B from Libor plus 350 bps with a 1% Libor floor.

AdvancePierre is a Cincinnati-based producer and distributor of ready-to-eat sandwiches, sandwich components and other entrees and snacks to distribution outlets.

Catalent tweaked

Catalent Pharma Solutions finalized the spread on the repricing of its U.S. senior secured covenant-light term loan B due May 20, 2021 at Libor plus 275 bps, the low end of the Libor plus 275 bps to 300 bps talk, and lowered the spread on the repricing of its euro senior secured covenant-light term loan B due May 20, 2021 to Euribor plus 250 bps from talk of Euribor plus 275 bps to 300 bps, according to a market source.

The repriced term loans still have a 1% floor, a par issue price and 101 soft call protection for six months.

Currently the U.S. term loan is sized at $1,466,500,000 and the euro term loan is sized at €315,670,000, but a concurrent €380 million notes offering will be used to pay down the U.S. term loan on a pro rate basis, as well as to fund the acquisition of Accucaps Industries Ltd., to pay fees and expenses and for general corporate purposes.

Morgan Stanley Senior Funding Inc. is leading the deal (Ba3/BB) that will take pricing on the U.S. and euro term loans down from Libor/Euribor plus 325 bps with a 1% Libor floor.

Catalent, a Somerset, N.J.-based provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products, expects to close on the repricing on Dec. 9.

Quikrete reworks deal

Quikrete lifted its fungible covenant-light add-on first-lien term loan to $300 million from $100 million and changed the original issue discount to 99.75 from 99.5, according to a market source.

Pricing on the first-lien term loan is Libor plus 325 basis points with a 0.75% Libor floor, and the loan includes 101 soft call protection for six months.

With the first-lien upsizing, the company terminated plans for a $200 million 7.5-year covenant-light second-lien term loan that was talked at Libor plus 650 bps with a 0.75% Libor floor, an original issue discount of 99 and call protection of 102 in year one and 101 in year two.

Commitments are due at 4 p.m. ET on Monday, moved up from Dec. 9, the source added.

Wells Fargo Securities LLC is leading the deal that will be used to help fund the acquisition of a concrete pipe manufacturing business from Rinker Materials, a subsidiary of Cemex SAB de CV, for about $500 million plus an additional $40 million purchase price contingent on future performance.

Closing is expected in the first quarter of 2017, subject to regulatory approval and other conditions.

Quikrete is an Atlanta-based manufacturer of packaged concrete and related products.

EVO second-lien in progress

EVO Payments’ $155 million covenant-light second-lien term loan (Caa1/B-) is still a work in progress, but it is likely that pricing will end up at Libor plus 900 bps, up from initial talk in the range of Libor plus 850 bps to 875 bps, a market source remarked.

At launch, the second-lien loan was talked with a 1% Libor floor and an original issue discount of 98.5. Final details are still to be determined.

The company’s $845 million credit facility also includes a $100 million revolver (B1/B) and a $590 million covenant-light first-lien term loan (B1/B).

SunTrust Robinson Humphrey Inc. is the left lead on the deal.

EVO first-lien terms

Pricing on EVO Payments’ first-lien term loan is Libor plus 500 bps with a 1% Libor floor and an original issue discount of 99. The debt has 101 soft call protection for one year.

As previously reported, pricing on the first-lien term loan was increased from talk of Libor plus 450 bps to 475 bps and the call protection was extended from six months.

Recommitments for the first-lien term loan were due at 5 p.m. ET on Friday.

Proceeds from the credit facility will be used to refinance existing debt and to fund acquisitions.

Secured leverage will be around 5.5 times.

EVO Payments is an Atlanta-based payments processor and acquirer for merchants, independent sales organizations, financial institutions, government organizations and multinational corporations.

Syncsort discloses guidance

Also on the new deal front, Syncsort held its bank meeting on Friday morning, and with the event price talk on its first- and second-lien term loans was announced, according to a market source.

The $280 million six-year first-lien term loan is talked at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, and the $80 million seven-year second-lien term loan is talked at Libor plus 900 bps with a 1% Libor floor and a discount of 98.5, the source said.

As reported earlier, 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.

The company’s $395 million credit facility also includes a $35 million revolver.

Commitments are due on Dec. 16.

Syncsort lead banks

Credit Suisse Securities (USA) LLC, Antares Capital and SunTrust Robinson Humphrey are leading Syncsort’s credit facility.

Proceeds will be used to fund the acquisition of Trillium Software from Harte Hanks Inc. and refinance existing debt.

Closing on the acquisition is subject to regulatory approvals and other customary conditions.

Syncsort, a Clearlake Capital Group portfolio company, is a Woodcliff Lake, N.J.-based provider of enterprise software and data solutions. Trillium is a Burlington, Mass.-based provider of data quality solutions.

First American launches

First American Payment Systems also hosted a bank meeting in the morning, and released price talk on its $230 million seven-year first-lien term loan B (B1/B+) and $100 million eight-year second-lien term loan (Caa1/CCC+), a market source said.

The first-lien term loan is talked at Libor plus 500 bps to 525 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan is talked at Libor plus 950 bps to 975 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source continued.

The company’s $370 million credit facility also includes a $40 million revolver (B1/B+).

Commitments are due on Dec. 15, the source added.

Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are leading the deal that will be used by the Fort Worth-based payments platform to refinance existing debt.

Mister Car Wash talk

Mister Car Wash came out with talk of Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99 on its fungible $180 million add-on term loan and $40 million delayed-draw term loan that launched with a morning call, according to a market source.

The term loan has 101 soft call protection for six months, and the delayed-draw term loan is available for one year, subject to pro forma net leverage of 4.5 times, and has a fee of half the spread from days 31 to 90 and the full spread thereafter, the source said.

Commitments are due on Dec. 12.

As part of this transaction, pricing on the company’s existing $196 million term loan will be increased from Libor plus 400 bps with a 1% Libor floor to match pricing on the add-on term loan.

Jefferies Finance LLC, BMO Capital Markets Corp., UBS Investment Bank and Nomura are leading the deal (B1) that will be used by Tucson, Ariz.-based car wash company to repay revolver borrowings and fund a distribution to sponsor Leonard Green, and the delayed-draw term loan will be used for acquisitions.

Novolex timing emerges

Novolex scheduled a bank meeting for 10 a.m. ET in New York on Tuesday to launch its previously announced $1,875,000,000 credit facility, and one-on-one’s with management will be available to investors post the bank meeting, according to a market source.

The facility consists of a $300 million revolver and a $1,575,000,000 seven-year covenant-light term loan B.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are leading the credit facility that will be used with $625 million of unsecured notes to help fund the buyout of the company by Carlyle Group from Wind Point Partners and TPG Growth.

Closing is expected before the end of the year.

Novolex is a Hartsville, S.C.-based packaging company.

Autoparts readies deal

Autoparts Holdings emerged with plans to hold a bank meeting at 12:30 p.m. ET in New York on Monday to launch a $270 million credit facility, a market source said.

The facility consists of a $25 million ABL revolver, and a $245 million five-year first-lien term loan talked at Libor plus 650 bps to 675 bps with a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for one year, the source continued.

Commitments are due on Dec. 16.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

Autoparts is a Lake Forest, Ill.-based manufacturer of filtration products and spark plugs for the automotive aftermarket.

Kraton plans repricing

Kraton Polymers set a lender call for Monday to launch a $1,278,000,000 term loan B talked at Libor plus 400 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

Proceeds will be used to reprice an existing term loan B from Libor plus 500 bps with a 1% Libor floor.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Nomura Securities International Inc. are leading the deal.

Kraton is a Houston-based producer of engineered polymers and styrenic block copolymers.

Prime Security on deck

Prime Security Services will hold a lender call at 10 a.m. ET on Monday to launch a $2,763,000,000 first-lien senior secured term loan due May 2, 2022, according to a market source.

Commitments are due at noon ET on Dec. 9, the source said.

Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are leading the deal that will be used to reprice the existing first-lien term loan due 2022 and concurrently reallocate the outstanding balance of the first-lien term loan due 2021 to the 2022 tranche.

The 2021 and 2022 term loans are currently priced at Libor plus 375 bps with a 1% Libor floor.

Prime Security is a security services company.

Progrexion coming soon

Progrexion scheduled a call for Tuesday to launch a fungible $125 million add-on first-lien term loan, a source said.

Jefferies Finance LLC is leading the deal that will be used to fund a distribution and to add cash to the balance sheet.

In connection with the add-on, pricing on the first-lien term loan debt will step back up to Libor plus 525 bps with a 1% Libor floor from current pricing of Libor plus 475 bps with a 1% Libor floor, the source added.

Currently, the company has $255 million of outstanding first-lien debt.

Progrexion is a provider of credit repair services.

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