IntraFi Network, UST Global break; Vantage opts to place second-lien; Echo revises deadline

By Sara Rosenberg

New York, Nov. 1 – IntraFi Network LLC (Nexus Buyer LLC) firmed the spread on its second-lien term loan at the low end of guidance and then freed to trade on Monday, and UST Global Inc.’s first-lien term loan made its way into the secondary market as well.

In more happenings, Vantage Elevator Solutions shifted its second-lien term loan to privately placed from a plan to syndicate the debt, Echo Global Logistics accelerated the commitment deadline for its first-lien term loan, and Holley Inc., United Natural Foods Inc., Apex Group and Watlow released price talk with launch.

Also, TransUnion LLC, PCI Pharma Services (Packaging Coordinators Midco Inc.), Parts Authority (PAI Holdco Inc.), Golden West Packaging Group LLC, KKR Real Estate Finance Trust Inc. (KREF Holdings X LLC) and Ultra Electronics joined this week’s primary calendar.

IntraFi updated, trades

IntraFi Network set pricing on its $540 million eight-year covenant-lite second-lien term loan (Caa2/CCC) at Libor plus 625 basis points, the low end of the Libor plus 625 bps to 650 bps talk, according to a market source.

As before, the term loan has a 0.5% Libor floor, an original issue discount of 99, and hard call protection of 102 in year one and 101 in year two.

On Monday afternoon, the second-lien term loan broke for trading, with levels quoted at 99½ bid, par ½ offered, a trader added.

Nomura and Guggenheim are leading the deal that will be used to fund a distribution to shareholders and pay related fees and expenses.

Closing is expected early this month.

IntraFi is an Arlington, Va.-based financial technology solutions provider offering deposit placement and funding services to financial institutions.

UST hits secondary

UST Global’s $400 million seven-year senior secured covenant-lite first-lien term loan (B1/BB-) began trading during the session, with levels quoted at 99½ bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 375 bps with a 0.5% Libor floor and it was sold at an original issue discount of 99.5. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan firmed at the high end of the Libor plus 350 bps to 375 bps talk and the call protection was extended from six months.

Citigroup Global Markets Inc., BofA Securities Inc., JPMorgan Chase Bank and MUFG are leading the deal that will be used to refinance existing debt and for general corporate purposes.

Closing is expected in mid-November.

UST Global is an Aliso Viejo, Calif.-based provider of digital technology and transformation, information technology and services.

Vantage placing second-lien

Vantage Elevator Solutions changed its $210 million eight-year second-lien term loan to privately placed from a plan to broadly syndicate the tranche, a market source said.

The company’s proposed $525 million seven-year first-lien term loan is still scheduled to launch into broad syndication with a lender call at 9:30 a.m. ET on Tuesday.

The company’s proposed credit facilities also include an $85 million five-year revolver.

RBC Capital Markets, Jefferies LLC and Antares Capital are leading the deal that will be used to help fund the buyout of the company by Ontario Teachers’ Pension Plan Board. Vantage’s current owner, Golden Gate Capital, will retain a significant minority ownership stake in the company.

Closing is expected before the end of the year.

Vantage is a Bronx, N.Y.-based elevator component manufacturer.

Echo moves deadline

Echo Global Logistics accelerated the commitment deadline for its $550 million seven-year covenant-lite first-lien term loan (B1/B+) to 5 p.m. ET on Thursday from 5 p.m. ET on Nov. 9, a market source remarked.

Talk on the first-lien term loan is Libor plus 400 bps to 425 bps with a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $810 million of credit facilities also include a $100 million revolver and a $160 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., BMO Capital Markets, BNP Paribas Securities Corp., Citizens Bank, UBS Investment Bank and MUFG are leading the deal that will be used to help fund the buyout of the company by The Jordan Co. for $48.25 per share in cash. The transaction is valued at about $1.3 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including stockholder and regulatory approval.

Echo is a Chicago-based provider of tech-enabled transportation and supply chain management services.

Holley proposed terms

Holley held its bank meeting on Monday afternoon and announced price talk on its $600 million seven-year first-lien term loan and $100 million delayed-draw six-month availability first-lien term loan at Libor plus 375 bps to 400 bps with a 0.75% Libor floor and an original issue discount of 99.5, according to a market source.

The first-lien term loan has 101 soft call protection for six months.

Delayed-draw term loan ticking fees are half the margin from days 61 to 120 and the full margin thereafter, the source said.

The company’s $825 million of credit facilities (B2/B) also include a $125 million five-year revolver.

Commitments are due at 4 p.m. ET on Nov. 10, the source added.

Jefferies LLC, Wells Fargo Securities LLC, BofA Securities Inc. and Truist are leading the deal that will be used to refinance existing debt.

Holley is a Bowling Green, Ky.-based platform in the performance enthusiast automotive aftermarket space.

United Natural holds call

United Natural Foods emerged in the morning with plans to hold a lender call at 11 a.m. ET to launch an $844 million covenant-lite first-lien term loan (B1/BB-) due October 2025 talked at Libor plus 300 bps to 325 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

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

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 0% Libor floor.

United Natural Foods is a Providence, R.I.-based distributor of natural, organic and specialty grocery and non-food products.

Apex Group guidance

Apex Group launched on its call its $465 million add-on covenant-lite term loan B due July 2028 with original issue discount talk of 99 to 99.5 and its €225 million add-on covenant-lite term loan B due July 2028 with discount talk of 99.25 to 99.5, according to a market source.

The U.S. term loan is priced at Libor plus 375 bps with a 0.5% Libor floor and the euro term loan is priced at Euribor plus 400 bps with a 0% floor.

Commitments are due on Nov. 10.

BofA Securities Inc. is leading the deal that will be used with a $180 million pre-placed second-lien term loan to fund the acquisition of Sanne Group, a provider of asset management services, for 920 pence in cash per share, or about £1.51 billion.

Apex is a provider of fund administration services, financial and corporate solutions.

Watlow sets talk

Watlow held a lender call at 2 p.m. ET, launching a $512 million term loan B talked at Libor plus 350 bps to 375 bps with a 0.5% Libor floor, a par issue price and 101 soft call protection for six months, a market source remarked.

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

BMO Capital Markets is leading the deal that will be used to reprice an existing term loan B down from Libor plus 400 bps with a 0.5% Libor floor.

Watlow is a St. Louis-based designer and manufacturer of complete thermal systems.

TransUnion on deck

TransUnion set a lender call for 3 p.m. ET on Tuesday to launch $3.74 billion of term loans, according to a market source.

The debt is split between a $3.1 billion seven-year covenant-lite term loan B-6 with 101 soft call protection for six months, and a $640 million eight-year covenant-lite second-lien term loan that is redeemable at par for six months post-closing, followed by call protection of 102 and 101 thereafter, the source said.

Deutsche Bank Securities Inc., Capital One, RBC Capital Markets and BofA Securities Inc. are leading the term loan B-6, with Deutsche the left lead and administrative agent. JPMorgan Chase Bank, Deutsche Bank and Wells Fargo Securities LLC are leading the second-lien term loan, with JPMorgan the left lead and agent.

The term loans will be used with cash on hand to fund the $3.1 billion acquisition of Neustar from a group led by Golden Gate Capital, refinance some debt, and fund the $638 million purchase of Sontiq Inc.

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

TransUnion is a Chicago-based information and insights company. Neustar is a Reston, Va.-based information services and technology company. Sontiq is a Nottingham, Md.-based intelligent identity security company.

PCI joins calendar

PCI Pharma will hold a lender call at 10 a.m. ET on Tuesday to launch a fungible $510 million incremental first-lien term loan due November 2027 talked with an original issue discount of 99.5, a market source said.

Pricing on the incremental first-lien term loan is Libor plus 375 bps with a 0.75% Libor floor, in line with existing pricing.

Commitments are due at 4 p.m. ET on Nov. 8, the source continued.

The company is also getting a fungible $140 million privately placed incremental second-lien term loan due November 2029 priced at Libor plus 700 bps with a 0.75% Libor floor, a reduction from current pricing of Libor plus 825 bps with a 1% Libor floor, the source added.

Jefferies LLC, RBC Capital Markets and Antares Capital are leading the deal that will be used with new cash equity to fund the acquisition of Lyophilization Services of New England Inc., a Bedford, N.H.-based contract development and manufacturing organization, from Permira.

Pro forma for the transaction, the first-lien term loan will total about $1.425 billion and the second-lien term loan will total $440 million.

PCI is a Philadelphia-based provider of outsourced pharmaceutical services.

Parts Authority on deck

Parts Authority set a bank meeting for 11 a.m. ET on Tuesday to launch a fungible $100 million incremental first-lien term loan due Oct. 28, 2027 talked with an original issue discount of 99.5, according to a market source.

Pricing on the incremental first-lien term loan is Libor plus 375 bps with a 25 bps step-down based on leverage and a 25 bps step-down upon an initial public offering, and a 0.75% Libor floor, in line with existing pricing.

Jefferies LLC is leading the deal that will be used to fund a distribution to shareholders.

The company is seeking an amendment to allow for the shareholder distribution, and make additional documentation changes to reset and increase various baskets related to incremental capacity, excess cash flow sweep and asset sale sweep.

Lenders are being offered a 10 bps consent fee.

Parts Authority repricing

Parts Authority is also looking to reprice its existing second-lien term loan to Libor plus 750 bps from Libor plus 825 bps, the source continued.

Furthermore, the company intends to upsize its ABL revolver by $75 million and remove the existing 0.5% Libor floor.

Commitments and consents are due at noon ET on Nov. 9, the source added.

Pro forma for the transaction, the first-lien term loan will total about $747 million.

Parts Authority is a Lake Success, N.Y.-based automotive aftermarket replacement parts distribution platform serving the do-it-for-me and do-it-yourself e-commerce segments of the automotive aftermarket.

Golden West coming soon

Golden West Packaging set a lender meeting for 1p.m. ET on Thursday to launch a $290 million six-year covenant-lite first-lien term loan, a market source remarked.

Citizens Bank is leading the deal that will be used to refinance existing debt and fund a tuck-in acquisition.

Lindsay Goldberg is the sponsor.

Golden West Packaging is a City of Industry, Calif.-based provider of corrugated and specialty packaging solutions serving the food and beverage, wine, consumer products, and produce end markets.

KKR Real Estate on deck

KKR Real Estate scheduled a lender call for 11 a.m. ET on Tuesday to launch a $50 million add-on term loan B and a repricing of its existing $298 million term loan B talked at Libor plus 350 bps to 375 bps with a 0.5% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months, according to a market source.

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

JPMorgan Chase Bank and KKR Capital Markets are leading the deal.

The add-on term loan will be used for general corporate purposes and the repricing will take the existing term loan down from Libor plus 475 bps with a 1% Libor floor.

KKR Real Estate is a New York-based real estate finance company.

Ultra readies deal

Ultra Electronics set a lender call for 11 a.m. ET on Wednesday to launch an $855 million seven-year term loan B and a €475 million seven-year term loan B, a market source said.

The term loans have 101 soft call protection for six months.

Commitments are due at noon ET on Nov. 16, the source added.

Barclays is the sole physical bookrunner on the U.S. term loan. Barclays, BNP Paribas Securities Corp., Credit Suisse and HSBC are physical bookrunners on the euro term loan. Goldman Sachs, Jefferies LLC, Lloyds, Morgan Stanley Senior Funding Inc., Natwest, RBC Capital Markets, SMBC and UniCredit are mandated lead arrangers. Credit Suisse is the administrative agent.

The loans will be used to help fund the acquisition of the company by Advent, refinance existing debt and pay transaction fees and expenses.

Ultra Electronics is a London-based manufacturer of electronic and electromechanical systems, sub-systems, and products for defense, security and aerospace applications.

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