PPD frees to trade; ERT revises commitment deadline; Utz discloses size, price talk

By Sara Rosenberg

New York, Jan. 6 – PPD Inc. increased the size of its term loan, finalized the spread at the low end of guidance and tightened the original issue discount, and then the debt made its way into the secondary market on Wednesday.

In other news, ERT (eResearchTechnology Inc.) accelerated the commitment deadline for its incremental first-lien term loan, and Utz Brands Inc. came out with structure and price talk on its loan transaction that launched with a call during the session.

Furthermore, Protective Industrial Products Inc. and TMS International Corp. joined this week’s new-issue calendar.

PPD reworked, trades

PPD lifted its seven-year term loan B to $3.05 billion from $2.55 billion, set pricing at Libor plus 225 basis points, the low end of the Libor plus 225 bps to 250 bps talk, and adjusted the original issue discount to 99.5 from 99, according to market sources.

As before, the term loan has a 0.5% Libor floor and 101 soft call protection for six months.

Commitments were due at noon ET on Wednesday, accelerated from noon ET on Thursday, and the debt began trading during the session, with levels quoted at 99 7/8 bid, par 3/8 offered, sources said.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to refinance an existing term loan B due 2022.

Due to the term loan upsizing, the company no longer plans to get unsecured debt to help with the refinancing, sources added.

PPD is a Wilmington, N.C.-based contract research organization focused on clinical development and laboratory services.

ERT accelerated

ERT moved up the commitment deadline for its fungible $750 million incremental first-lien senior secured term loan (B2/B-) due Feb. 4, 2027 to 5 p.m. ET on Thursday from noon ET on Tuesday, a market source remarked.

Pricing on the incremental first-lien term loan, of which $250 million has been pre-placed, is Libor plus 450 basis points with a 1% Libor floor, in line with existing first-lien term loan pricing.

The incremental term loan is talked with an original issue discount in the range of 98.79 to 99.

The company is also getting a $50 million pre-placed first-lien senior secured delayed-draw term loan and a $150 million pre-placed incremental second-lien senior secured term loan.

Goldman Sachs Bank USA and Jefferies LLC are leading the deal that will be used to fund the acquisition of Bioclinica, a Princeton, N.J.-based provider of clinical trial imaging solutions, and pay related fees and expenses.

Closing is expected this year, subject to customary conditions, including approval by regulatory agencies.

Nordic Capital and Astorg are the sponsors.

ERT is a Philadelphia-based provider of software-enabled clinical research solutions to pharmaceutical companies and contract research organizations.

Utz details emerge

Utz Brands held its call on Wednesday, launching a $720 million seven-year term loan B (B) talked at Libor plus 350 bps with a 0% Libor floor, an original issue discount of 99.25 to 99.5 and 101 soft call protection for six months, a market source said.

BofA Securities Inc., Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are leading the deal that will be used to help refinance an existing term loan B and a $490 million senior secured bridge loan that funded the company’s $480 million purchase of Truco Enterprises, a Dallas-based seller of tortilla chips, salsa and queso, from Insignia Capital Group.

Utz is a Hanover, Pa.-based manufacturer of branded salty snacks.

Protection Industrial on deck

Protective Industrial Products set a lender call for 1:30 p.m. ET on Thursday to launch $510 million of first-lien senior secured credit facilities, according to a market source.

The facilities consist of a $75 million five-year revolver and a $435 million seven-year covenant-lite first-lien term loan, the source said.

The company is also getting a $160 million second-lien term loan that is being privately placed.

Antares Capital, Citizens Bank and Bank of Ireland are leading the deal that will be used to help fund the buyout of the company by Odyssey Investment Partners from Audax Private Equity.

Protective Industrial Products is a Latham, N.Y.-based provider of personal protective equipment and industrial safety products.

TMS joins calendar

TMS International scheduled a lender call for 11 a.m. ET on Thursday to launch a non-fungible $150 million incremental term loan B (B1/BB-) due 2024 talked at Libor plus 275 bps with a 1% Libor floor, an original issue discount of 97 to 98 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on Jan. 14, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to fund acquisitions, including the purchase of the Stein Cos., and for general corporate purposes.

TMS is a Pennsylvania-based provider of outsourced industrial services to steel mills.

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