Bass Pro Group, Constellation Brands Canada free up; Culligan revises loan sizes, pricing

By Sara Rosenberg

New York, Nov. 15 – Bass Pro Group LLC finalized pricing on its term loan B and asset-sale facility at the high end of revised guidance and then the debt made its way into the secondary market on Tuesday, and Constellation Brands Canada Inc.’s term loan B began trading too.

In more happenings, Culligan Holding Inc. upsized its U.S. first-lien term loan, reduced pricing and tightened the original issue discount and downsized its euro first-lien term loan.

Also, Platform Specialty Products Corp. (MacDermid Inc.), Four Seasons Hotels and Resorts, LDiscovery LLC, Hyperion Insurance Group and C.H.I. Overhead Doors Inc. disclosed price talk on their deals, nThrive Inc. released original issue discount guidance, and Vistage emerged with new loan plans.

Bass Pro firms terms

Bass Pro Group set pricing on its $2.97 billion seven-year covenant-light term loan B at Libor plus 500 basis points, the wide end of revised talk of Libor plus 475 bps to 500 bps and up from initial talk of Libor plus 425 bps, and removed the 12 month MFN sunset, according to a market source.

Also, pricing on the company’s $500 million 1.5-year asset-sale facility firmed at Libor plus 475 bps, the wide end of revised talk of Libor plus 450 bps to 475 bps talk and up from initial talk of Libor plus 400 bps, the source said.

As before, the term loan B and the asset-sale facility have a 0.75% Libor floor and an original issue discount of 99.

Included in the term loan B is 101 soft call protection for one year.

The company’s $3.87 billion of loans (B1/B+) also provides for a $400 million term loan A.

Previously in syndication, the term loan B was downsized from $3.37 billion with the addition of the term loan A, and the call protection was extended from six months.

Bass Pro hits secondary

With final terms in place, Bass Pro’s debt freed up for trading on Tuesday, with the term loan B quoted at 99¼ bid, 99½ offered, and the asset-sale facility quoted at 99¾ bid, 100½ offered, a trader added.

Bank of America Merrill Lynch, Wells Fargo Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets LLC, UBS Investment Bank and Goldman Sachs Bank USA are leading the debt that will be used to help fund the acquisition of Cabela’s Inc. for $65.50 per share in cash, or about $5.5 billion.

Closing is expected in the first half of 2017, subject to approval by Cabela’s shareholders, regulatory approvals and other customary conditions.

Bass Pro is a Springfield, Mo.-based outdoor retailer. Cabela’s is a Sidney, Neb.-based marketer and retailer of hunting, fishing, camping and outdoor merchandise.

Constellation Brands breaks

Constellation Brands Canada’s $260 million seven-year covenant-light term loan B freed up for trading as well, with levels quoted at par bid, 101 offered and then it moved up to 100¼ bid, 101¼ offered, a trader said.

Pricing on the term loan B is Libor plus 375 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Last week, the spread on the term loan B was reduced from talk of Libor plus 400 bps to 425 bps.

In addition to the U.S. term loan B, the company is getting a C$66 million term loan B.

Morgan Stanley Senior Funding Inc., Antares Capital LP, BMO Capital Markets and Scotiabank are leading the deal (Ba3/BB-) that will be used to fund the acquisition of the company by Ontario Teachers’ Pension Plan from Constellation Brands for about C$1.03 billion.

Closing is expected in late November.

Constellation Brands Canada is a Mississauga, Ont.-based operator of wineries and Wine Rack stores.

Culligan reworks deal

Back in the primary market, Culligan Holding lifted its U.S. seven-year covenant-light first-lien term loan (B2/B) to $300 million from $275 million, trimmed the spread to Libor plus 400 bps from Libor plus 425 bps and changed the original issue discount to 99.5 from 99, while leaving the 1% Libor floor and 101 soft call protection for six months intact, a market source remarked.

With the U.S. first-lien term loan upsizing, the euro seven-year covenant-light first-lien term loan (B2/B) was scaled back to $75 million-equivalent from $100 million-equivalent, the source continued.

The company’s $600 million senior secured credit facility also includes a $75 million five-year revolver (B2/B) and a $150 million covenant-light second-lien term loan (Caa2/CCC+) that has been privately placed.

Commitments are due at 4 p.m. ET on Wednesday, with allocations expected thereafter, the source added.

Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC and BMO Capital Markets Corp. are leading the deal that will be used to help fund the acquisition of the company by Advent International Corp. and refinance existing debt.

Culligan is a Rosemont, Ill.-based provider of water treatment products and services.

Platform reveals talk

Platform Specialty Products held its lender call on Tuesday, launching its $897 million term loan B-5 due June 7, 2020 at talk of Libor plus 375 bps and its €425 million term loan C-4 due June 7, 2020 at talk of Euribor plus 350 bps, according to a market source, who said that both tranches have a 1% floor and a par issue price.

As previously reported, the term loans includes 101 soft call protection for six months.

Commitments are due on Thursday.

Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Barclays and Credit Agricole are the bookrunners on the deal, with Credit Suisse left lead on the U.S. loan and HSBC left lead on the euro loan. Barclays is the administrative agent.

The company will use the new loans to reprice/refinance an existing $1,033,000,000 term loan B-3 and an existing €297 million term loan C-2.

Platform is a West Palm Beach, Fla.-based producer of high-technology specialty chemicals and a provider of technical services.

Four Seasons details

Four Seasons Hotels and Resorts launched on its morning lender call a $900 million seven-year senior secured covenant-light first-lien term loan (BB) talked at Libor plus 325 bps with a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Friday and closing is expected during the week of Nov. 28, the source added.

Citigroup Global Markets Inc. is leading the deal that will be used to refinance existing debt.

Four Seasons is a Toronto-based luxury hotels company.

LDiscovery launches

LDiscovery revealed price talk on its first- and second-lien term loans in connection with its morning bank meeting, a source remarked.

The $340 million seven-year covenant-light first-lien term loan (B2/B+) is talked at Libor plus 550 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $125 million eight-year covenant-light second-lien term loan (Caa2/CCC+) is talked at Libor plus 950 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.

Commitments are due at 5 p.m. ET on Dec. 1.

RBC Capital Markets LLC, TD Securities (USA) LLC and Northwestern Mutual are leading the $465 million in term loans that will be used to fund the roughly $410 million acquisition of Kroll Ontrack from Corporate Risk Holdings LLC.

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

LDiscovery, a portfolio company of Carlyle Group and Revolution Growth, is a McLean, Va.-based technology-enabled eDiscovery services provider. Kroll Ontrack is a Minneapolis-based data recovery company.

Hyperion sets guidance

Hyperion Insurance hosted its lender call in the morning, launching its fungible $100 million incremental senior secured first-lien term loan B (B) due April 29, 2022 at talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 98.79 and 101 soft call protection for six months, according to a market source.

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

Morgan Stanley Senior Funding Inc., RBC Capital Markets and Lloyds Bank are leading the deal that will be used to pay down revolver borrowings, prefund deferred consideration payments and pay related fees and expenses.

Hyperion is a London-based insurance intermediary group.

C.H.I. holds call

C.H.I. Overhead Doors launched with a lender call at 2 p.m. ET a $115 million incremental first-lien term loan due July 31, 2022 talked at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99, a source said.

UBS Investment Bank and KKR Capital Markets are leading the deal that will be used to refinance an existing second-lien term loan priced at Libor plus 775 bps with a 1% Libor floor.

Including the incremental loan, the first-lien term loan will total $428.6 million.

With this transaction, pricing on the existing first-lien term loan will increase to Libor plus 375 bps from Libor plus 350 bps due to a leverage step, the source added.

C.H.I. Overhead is an Arthur, Ill.-based manufacturer and marketer of overhead garage doors.

nThrive OID talk emerges

nThrive came out with original issue discount talk of 98 to 99 on its $105 million add-on covenant-light first-lien term loan (B2) due Oct. 20, 2022 that launched with a lender call during the session, a market source remarked.

As reported earlier, the add-on term loan is priced at Libor plus 550 bps with a 1% Libor floor, and has 101 soft call protection through April 2017.

Commitments are due at 4:30 p.m. ET on Nov. 22, the source added.

Barclays is leading the deal that will be used with incremental equity to fund the acquisition of Adreima and to pay related fees and expenses.

First-lien leverage is 4.3 times, and total leverage is 5.8 times.

nThrive (formerly known as Precyse Acquisition Corp.) is a patient to payment provider of revenue cycle management technology and services.

Vistage coming soon

Vistage set a lender call for Wednesday to launch a $40 million add-on term loan, according to a market source.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to fund a dividend.

Vistage, a TowerBrook Capital portfolio company, is a San Diego-based for-profit membership organization of CEOs.

Quikrete closes

In other news, Quikrete Co. completed its acquisition of Contech Engineered Solutions from Anchorage Capital Group and Littlejohn & Co. LLC, a news release said.

To fund the acquisition and refinance existing debt, Quikrete got a new $2,625,000,000 credit facility that includes a $325 million five-year ABL revolver and a $2.3 billion seven-year covenant-light term loan B (B1/BB-).

The term loan B is priced at Libor plus 325 bps with a 0.75% Libor floor, and was issued at a discount of 99.5. The debt includes 101 soft call protection for six months.

During syndication, the term loan B was upsized from $2,245,000,000, the Libor floor was reduced from 1% and the discount was tightened from 99.

Wells Fargo Securities LLC led the debt.

Quikrete is an Atlanta-based manufacturer of packaged concrete and related products. Contech is a West Chester, Ohio-based provider of infrastructure, commercial and residential site solutions.

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