Nestle Skin Health, ION Media Networks free to trade; Press Ganey, Pike move up deadlines

By Sara Rosenberg

New York, July 17 – Nestle Skin Health finalized spreads on its U.S. and euro term loans and tightened original issue discounts on the tranches, and then the U.S. tranche made its way into the secondary market on Wednesday afternoon, and ION Media Networks Inc.’s term loan broke as well.

In more happenings, Press Ganey Associates Inc. (Emerald TopCo Inc.) and Pike Corp. accelerated the commitment deadlines for their term loans.

Also, Citgo Holding Inc. came out with price talk on its term loan with launch, and MyEyeDr. (MED ParentCo. LP), Focus Financial Partners Inc., BroadStreet Partners Inc. and Rent-A-Center Inc. joined the near-term primary calendar.

Nestle Skin modified

Nestle Skin Health firmed pricing on its $2,555,000,000 (CHF 2.47 billion equivalent) seven-year covenant-lite first-lien term loan at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, raised the Libor floor to 1% from 0% and moved the original issue discount to 99.5 from 99, according to a market source.

In addition, the company reduced pricing on its €971 million (CHF 1,075,000,000 equivalent) seven-year covenant-lite first-lien term loan to Euribor plus 375 bps from talk in the range of Euribor plus 400 bps to 425 bps, and revised the discount to 99.75 from 99.5, the source said.

The euro term loan still has a 0% floor, and both term loans still have 101 soft call protection for six months.

The company is also getting a CHF 500 million revolver, a pre-placed CHF 945 million U.S. dollar equivalent second-lien term loan and a pre-placed CHF 405 million euro equivalent second-lien term loan.

Nestle Skin frees up

Recommitments for Nestle Skin Health’s term loans were due at noon ET on Wednesday and, later in the day, the U.S. term loan broke for trading, with levels quoted at 99¾ bid, par offered, the source added.

Credit Suisse, Deutsche Bank, Goldman Sachs, Barclays, Bank of America Merrill Lynch, RBC Capital Markets, Mizuho, Credit Agricole, Jefferies LLC and UBS Investment Bank are leading the deal. Credit Suisse is the left lead on the U.S. loan and Deutsche is the left lead on the euro loan.

The credit facilities will be used to help fund the buyout of the company by a consortium led by EQT and ADIA from Nestle SA for an enterprise value of CHF 10.2 billion.

Nestle Skin Health is a Lausanne, Switzerland-based skincare company.

ION hits secondary

ION Media Networks’ $1,365,635,015 covenant-lite first-lien term loan B (B1/BB-) due December 2024 also began trading, with levels seen at 99 7/8 bid, par 3/8 offered, a trader remarked.

Pricing on the term loan is Libor plus 300 bps with a 0% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and J.P. Morgan Securities LLC are leading the deal that will be used to extend an existing term loan and fund a distribution to shareholders.

Closing is expected during the week of July 22.

ION is a West Palm Beach, Fla.-based television broadcast network.

Press Ganey tweaks timing

Back in the primary market, Press Ganey moved up the commitment deadline for its $1.25 billion seven-year first-lien term loan to noon ET on Friday from 5 p.m. ET on Monday, a market source said.

Talk on the term loan is Libor plus 375 bps to 400 bps with a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1.5 billion of credit facilities (B2/B) also include a $250 million revolver.

Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, BMO Capital Markets and Deutsche Bank Securities Inc. are leading the deal that will be used to help fund the buyout of the company by Leonard Green & Partners LP and Ares Management Corp.

Other funds for the transaction will come from $453 million of second-lien notes that were privately placed with Goldman Sachs Merchant Banking Division and GIC.

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

Press Ganey is a South Bend, Ind.-based provider of patient experience measurement and performance improvement solutions to health care organizations.

Pike revises deadline

Pike accelerated the commitment deadline for its $1.02 billion seven-year covenant-lite first-lien term loan B (B2/B) to 5 p.m. ET on Thursday from noon ET on Friday, according to a market source.

The term loan is talked at Libor plus 350 bps with a 1% Libor floor, an original issue discount of 99.5 to 99.75 and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to refinance existing debt, fund an acquisition and pay related fees and expenses.

Pike is a Mount Airy, N.C.-based specialty construction and engineering firm.

Citgo sets guidance

Citgo Holding held its bank meeting on Wednesday and announced price talk on its $500 million four-year senior secured first-lien term loan (Caa1/B/B+) at Libor plus 725 bps to 750 bps with a 1% Libor floor and an original issue discount of 98, a market source remarked.

The term loan is non-callable for one year, then at 101 in year two.

Commitments are due at noon ET on July 25, the source added.

Jefferies LLC is the left lead on the deal that will be used with a new $1.37 billion senior secured note offering and cash on hand to redeem all of the company’s $1.87 billion 10¾% senior secured notes due 2020 and to pay related accrued interest and redemption premiums.

Citgo is a Houston-based owner and operator of three large-scale, highly complex refineries.

MyEyeDr. readies deal

MyEyeDr. scheduled a bank meeting for 10:30 a.m. ET on Thursday to launch $1,631,000,000 of senior secured credit facilities, according to a market source.

The facilities consist of a $125 million five-year revolver (B2/B), an $845 million seven-year first-lien term loan (B2/B), a $211 million seven-year delayed-draw for 24 months first-lien term loan (B2/B), a $360 million eight-year second-lien term loan (Caa2/CCC+) and a $90 million eight-year delayed-draw for 24 months second-lien term loan (Caa2/CCC+), the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Jefferies LLC, Credit Suisse Securities (USA) LLC, Nomura, Golub Capital, KKR Capital Markets and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Goldman Sachs Merchant Banking Division from Altas Partners and Caisse de dépôt et placement du Québec.

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

MyEyeDr. is an optometry platform. The company is affiliated with Capital Vision Services LP, which provides management services to MyEyeDr. optometrists and its practices.

Focus joins calendar

Focus Financial Partners will hold a lender call at 10 a.m. ET on Thursday to launch a $300 million add-on term loan B, a market source remarked.

RBC Capital Markets is the left lead on the deal that will be used to repay revolver borrowings.

Closing is expected this month.

Focus Financial is a New York-based partnership of independent, fiduciary wealth management firms.

BroadStreet coming soon

BroadStreet Partners emerged with plans to hold a lender call at 2 p.m. ET on Thursday to launch a fungible $135 million add-on term loan B, according to a market source.

RBC Capital Markets LLC is the left lead on the deal that will be used for acquisitions and to repay revolver borrowings.

The company’s existing $735 million term loan B is priced at Libor plus 325 bps with a 1% Libor floor.

BroadStreet is a Columbus, Ohio-based insurance broker.

Rent-A-Center on deck

Rent-A-Center set a lender call for 10 a.m. ET on Thursday to launch a $200 million seven-year first-lien term loan (BB-) talked at Libor plus 450 bps to 475 bps with an original issue discount of 99 and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on July 31, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing debt and for general corporate purposes.

Rent-A-Center is a Plano, Texas-based rent-to-own operator.

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