AerCap, Michael Baker break; Motus, Acuren updates surface; Byju’s accelerates deadline

By Sara Rosenberg

New York, Nov. 2 – AerCap Holdings NV (Setanta Aircraft Leasing DAC) lowered the spread on its term loan B and modified the original issue discount before freeing up for trading on Tuesday, and Michael Baker International’s first-lien term loan B broke as well.

In other news, Motus set pricing on its first-lien term loan at the high end of guidance, added a step-down and tightened the issue price, Acuren (Rockwood Service Corp.) revised the original issue discount on its add-on term loan B, and Byju’s (Think & Learn Private Ltd.) moved up the commitment deadline for its term loan B.

Also, TransUnion LLC, Vantage Elevator Solutions, AMG Advanced Metallurgical Group NV and Fender Musical Instruments Corp. released price talk with launch, and Pelican Products Inc. and Acrisure LLC joined this week’s primary calendar.

AerCap flexes, trades

AerCap trimmed pricing on its $2 billion seven-year term loan B (Baa2/BBB) to Libor plus 200 basis points from talk in the range of Libor plus 225 bps to 250 bps and changed the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan has 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at 2 p.m. ET on Tuesday and the term loan B began trading later in the day, with levels quoted at 99 7/8 bid, par ¼ offered, another source added.

Citigroup Global Markets Inc., Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Morgan Staney Senior Funding Inc., RBC Capital Markets and BofA Securities Inc. are leading the deal that will be used with $21 billion of senior notes to help fund the recently completed acquisition of GE Capital Aviation Services business from GE and for general corporate purposes.

Under the agreement, GE received consideration valued at more than $30 billion, including about $24 billion in cash, 111.5 million ordinary shares equivalent to around 46% ownership of the combined company with a market value of about $6 billion as of March 9, 2021, and $1 billion paid in AerCap notes and/or cash upon closing.

AerCap is a Dublin-based aircraft leasing company. GE Capital Aviation is an aviation lessor and financier.

Michael Baker frees up

Michael Baker International’s $300 million seven-year first-lien term loan B (B2/B) broke for trading, with levels quoted at 99½ bid, par ½ offered, a market source remarked.

Pricing on the term loan is Libor plus 500 bps with a 0.75% Libor floor and it was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

The company is also getting an $80 million five-year ABL revolver.

UBS Investment Bank is the left lead on the deal that will be used to refinance the company’s existing capital structure, including $250 million of senior notes due 2023.

Michael Baker, a portfolio company of DC Capital Partners, is a Pittsburgh-based provider of engineering and consulting services, focused on complex infrastructure challenges.

Motus changes emerge

Motus finalized pricing on its $390 million seven-year first-lien term loan (B2/B-/B+) at Libor plus 400 bps, the high end of the Libor plus 375 bps to 400 bps talk, added a 25 bps step-down at 4.75x first-lien leverage, and revised the original issue discount to 99.5 from 99, a market source said.

The first-lien term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Tuesday and allocations are expected on Wednesday morning, the source added.

The company’s $575 million of credit facilities also include a $50 million revolver and a $135 million privately placed second-lien term loan.

RBC Capital Markets, Barclays, Owl Rock and Thoma Bravo Credit are leading the deal that will be used to help fund a significant strategic investment in Motus by Permira. As part of the transaction, existing investor Thoma Bravo plans to reinvest and remain a significant investor in the company.

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

Motus is a Boston-based reimbursement software platform for the anywhere workforce.

Acuren tightens

Acuren adjusted the original issue discount on its fungible $100 million add-on term loan B due January 2027 to 99.75 from talk in the range of 99 to 99.5, according to a market source.

The add-on term loan is priced at Libor plus 400 bps with a step-up to Libor plus 425 bps at greater than 3.5x first-lien net leverage and a 0% Libor floor, and both the add-on and existing term loan are getting 101 soft call protection for six months.

Commitments are due at 10 a.m. ET on Wednesday, moved up from 10 a.m. ET on Thursday, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to fund the acquisition of Premium Inspection & Testing Group, a provider of nondestructive testing, inspection and calibration services.

Acuren is a provider of testing services to energy and industrial markets.

Byju’s tweaks timing

Byju’s accelerated the commitment deadline for its $500 million five-year senior secured covenant-lite term loan B to Wednesday from 5 p.m. ET Thursday, a market source remarked.

Talk on the term loan B is Libor plus 550 bps with a 0.75% Libor floor, an original issue discount of 98.5, and hard call protection of 105 in year one, 103 in year two and 101 in year three. The margin on the term loan will step-up to Libor plus 600 bps on the date that is nine months post-close in the event that the company has not obtained credit ratings from two of Moody’s Investors Service, S&P Global Ratings and Fitch Ratings.

Morgan Stanley Senior Funding Inc. and JPMorgan Chase Bank are leading the deal that will be used to fund general corporate purposes offshore only, including to support business growth initiatives in North America and to fund potential strategic opportunities.

Byju’s is an India-based educational technology company.

TransUnion proposed terms

TransUnion held its lender call on Tuesday afternoon and announced price talk on its $3.1 billion seven-year covenant-lite term B-6 (Ba2/BBB-) and $640 million eight-year covenant-lite second-lien term loan (B1/BB), according to a market source.

Talk on the first-lien term loan is Libor plus 225 bps to 250 bps with a 0.5% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 500 bps with a 0% Libor floor and a discount of 98.5 to 99, the source said.

The term loan B-6 has 101 soft call protection for six months, and the second-lien term loan is redeemable at par for six months post-closing, followed by call protection of 102 and 101 thereafter.

Commitments are due at 5 p.m. ET on Nov. 16, the source added.

TransUnion lead banks

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

The new loans will be used with cash on hand to fund the acquisition of Neustar from an investment group led by Golden Gate Capital for $3.1 billion in cash, refinance certain debt, and finance the purchase of Sontiq Inc. for $638 million.

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.

Vantage Elevator guidance

Vantage Elevator came out with talk of Libor plus 375 bps to 400 bps with a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months on its $525 million seven-year first-lien term loan (B2/B-) that launched with a call in the morning, a market source said.

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

The company’s $820 million of credit facilities also include an $85 million five-year revolver (B2/B-) and a $210 million privately placed eight-year second-lien term loan.

RBC Capital Markets, Jefferies LLC and Antares Capital are leading the deal, which 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.

AMG reveals talk

AMG Advanced Metallurgical Group launched on its morning call its $350 million seven-year term loan B at talk of Libor plus 325 bps to 350 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan B has 101 soft call protection for six months.

The company’s $550 million of credit facilities (Ba3/BB-) also include a $200 million five-year revolver.

Commitments are due at 5 p.m. ET on Nov. 15.

HSBC Securities (USA) Inc. is the left lead on the deal that will be used to refinance existing credit facilities. Cashless roll is available on the term loan B.

AMG Advanced, which has corporate offices in Amsterdam and Wayne, Pa., is a critical materials company that sources, processes, and supplies specialty metals and mineral products, and provides related vacuum furnace systems and heat treatment services.

Fender holds call

Fender Musical Instruments hosted a lender call at 1 p.m. ET to launch a $375 million seven-year term loan (B+) talked at SOFR+CSA plus 425 bps to 450 bps with a SOFR+CSA floor of 0.5%, an original issue discount of 99 and 101 soft call protection for six months, a market source remarked. CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Commitments are due at 5 p.m. ET on Nov. 15, the source added.

JPMorgan Chase Bank is leading the deal that will be used to help fund the acquisition of PreSonus Audio Electronics Inc. and to repay an existing roughly $200 million term loan.

Closing on the acquisition is subject to U.S. regulatory approvals and other customary conditions.

Fender is a Scottsdale, Ariz.-based musical instrument manufacturer. PreSonus is a Baton Rouge, La.-based designer and manufacturer of recording and live-sound hardware and software solutions.

Pelican readies deal

Pelican Products set a lender call for 2 p.m. ET on Wednesday to launch a $525 million seven-year first-lien term loan, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

BofA Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Houlihan Lokey and Ares are leading the deal that will be used to help fund the buyout of the company by Platinum Equity.

Closing is expected by the end of the fourth quarter.

Pelican Products is a Torrance, Calif.-based designer and manufacturer of high-performance protective cases and rugged gear for professionals and outdoor enthusiasts, and temperature-controlled supply chain solutions for the health care industry.

Acrisure on deck

Acrisure will hold a lender call at 12:30 p.m. ET on Wednesday to launch a non-fungible $600 million incremental first-lien term loan (B) due February 2027 talked at Libor plus 425 bps to 450 bps with a 0.5% Libor floor, 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 Nov. 10, the source added.

JPMorgan Chase Bank and BMO Capital Markets are leading the deal that will be used to fund acquisitions.

Acrisure is a Caledonia, Mich.-based insurance brokerage.

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