Dell Technologies launches $4.79 billion repricing; Beacon, Catalent, Fuller narrow terms

New York, Oct. 11 – Dell Technologies Inc. led loan market news on Wednesday with the launch of a $4,788,000,000 repricing of its first-lien term loan due Sept. 7, 2023 (Baa3/BBB-/BBB-).

The Round Rock, Texas-based technology company is looking to both trim its interest costs and reduce the size of the loan.

Among loans already in the market, three substantial transactions saw terms richen in announcements during the session.

Beacon Roofing Supply Inc., Catalent Pharma Solutions Inc. and HB Fuller Co. all fixed pricing at the tight end of talk or narrowed previously announced rates.

Also notable, Press Ganey Holdings, Inc. launched a repricing and refinancing of its first- and second-lien term loans with a lender call on Wednesday, coming to market to reset the offerings almost exactly a year after the original financing was completed.

Dell seeks repricing

Dell Technologies launched a $4,788,000,000 repricing of its first-lien term loan due 2023, according to a market source.

Price talk is Libor plus 200 basis points to Libor plus 225 bps, down from the existing level of Libor plus 250 bps.

The Libor floor will remain at 0.75% and the price is par.

The repricing will also reduce the size of the loan from its current $5.46 billion level.

Credit Suisse, JPMorgan, Bank of America Merrill Lynch, Barclays, Citigroup and Goldman Sachs are the arrangers.

Beacon trims interest cost

Beacon Roofing lowered the coupon on its $970 million seven-year senior secured covenant-light term loan B (B1) to Libor plus 225 basis points from talk of Libor plus 250 bps to 275 bps, according to a market source.

As before, the loan has a 0% Libor floor and an original issue discount of 99.5.

Citigroup Global Markets Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are the joint lead arrangers on the deal, with Citi the left lead on the term loan B and Wells Fargo the left lead on a concurrent revolver.

Proceeds will be used to help fund the $2,625,000,000 acquisition of Allied Building Products Corp. and refinance an existing $440 million term loan B.

Beacon Roofing is a Herndon, Va.-based distributor of residential and commercial roofing materials and complementary building products. Allied Building is an East Rutherford, N.J.-based distributor of exterior and interior building products.

Catalent firms levels

Catalent Pharma fixed pricing on its $1,251,500,000 covenant-light term loan B (Ba3/BB) due May 20, 2024 and €312,442,500 covenant-light term loan B (Ba3/BB) due May 20, 2024, according to a market source.

The U.S. term loan was priced at Libor plus 225 basis points with a 1% Libor floor and an original issue discount of 99.75.

That was the tight end of talk for a coupon of Libor plus 225 bps to 250 bps and an original issue discount of 99.5 to 99.75.

The euro tranche was set at Euribor plus 175 bps with a 1% Euribor floor and an OID of 99.75, which was tighter than talk for a coupon of Euribor plus 200 bps to 225 bps and a discount of 99.5 to 99.75.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

Proceeds will be used to reprice and extend existing term loan B facilities.

Catalent is a Somerset, N.J.-based provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products.

HB Fuller prices

HB Fuller set pricing on its $2.15 billion seven-year senior secured covenant-light term loan B (Ba2/BB+) at the tight end of talk and narrowed the discount, according to a market source.

The coupon is Libor plus 225 basis points with a step down to Libor plus 200 bps when gross secured leveraged reaches 4.0 times or less. Talk was for a coupon of Libor plus 225 bps to Libor plus 250 bps.

In addition, the original issue discount was set at 99.75, tightened from talk of a 99.5 level.

Previously in syndication the loan was increased from $1.85 billion.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint lead arrangers and bookrunners on the deal and Bank of America Merrill Lynch and U.S. Bank are co-managers.

Proceeds will be used to fund the acquisition of Royal Adhesives & Sealants for $1,575,000,000.

HB Fuller is a St. Paul, Minn.-based industrial adhesives, sealants, coatings and specialty materials company. Royal Adhesives is a South Bend, Ind.-based producer of specialty adhesives and sealants.

Press Ganey launches

Entering the market, Press Ganey Holdings, Inc. launched a repricing and refinancing of its first- and second-lien term loans with a lender call during Wednesday’s session, according to a market source.

A repricing of the company’s $756 million first-lien term loan due 2023 (B) is talked at Libor plus 300 basis points from the current level of Libor plus 325 bps.

The 1% Libor floor will be left unchanged and the offer price is par.

In addition, Press Ganey launched an $88 million incremental first-lien term loan due 2023 (B) with the same Libor plus 300 bps coupon and 1% Libor floor but with an original issue discount of 99.5.

The company also launched a repricing of its $180 million second-lien term loan due October 2024 (CCC+) at a coupon of Libor plus 675 bps, down from Libor plus 725 bps.

For the second-lien tranche, the floor is 1% for Libor and the price is par.

Proceeds from the incremental first-lien loan will be used to downsize the second-lien loan from its current size of $268 million.

Credit Suisse is lead on the first lien while Citigroup is lead on the second lien. They are joined as arrangers by Bank of America Merrill Lynch and Barclays.

Press Ganey is a Wakefield, Mass.-based provider of patient experience measurement, performance analytics and strategic advisory solutions for health care organizations.

Renfro wraps amendment

In other news, Renfro Corp. completed the amendment and extension of its $160.6 million term loan B (B3/B) due March 31, 2021.

The loan was priced at Libor plus 550 bps with a 1.25% Libor floor.

For new lenders, the loan came at an original issue discount of 99.5 while existing lenders were offered a 50 bps consent fee.

The loan has 101 soft call protection for six months.

RBC was the lead.

Proceeds were used to amend and extend an existing term loan B.

Renfro is a Mount Airy, N.C., designer, manufacturer and marketer of socks.

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