Cole-Parmer frees up; Flexitallic bid at OID; 84 Lumber, FleetCor disclose price guidance

By Sara Rosenberg

New York, Oct. 29 – Cole-Parmer Instrument Co. (Curie Merger Sub LLC) saw its first-lien term loan allocate and start trading on Tuesday, with levels quoted above its original issue discount, and Flexitallic Group’s (FGA Acquisition Corp.) term loan B continued to be bid in line with its issue price.

Over in the primary market, 84 Lumber Co. and FleetCor Technologies Inc. released price talk with launch, and Allsup’s, Air Canada and TRC Cos. Inc. joined this week’s primary calendar.

Cole-Parmer breaks

Cole-Parmer Instrument’s $770 million seven-year first-lien term loan (B2/B) began trading on Tuesday, with levels quoted at 99¾ bid, par ¼ offered, according to a market source.

Pricing on the first-lien term loan is Libor plus 425 basis points with a 25 bps step-down upon a first-lien leverage ratio of 0.5x inside of closing date leverage and a 0% Libor floor. The debt was sold at an original issue discount of 99.5 and has 101 soft call protection for six months.

During syndication, pricing on the first-lien term loan firmed at the high end of the Libor plus 400 bps to 425 bps talk, the discount was revised from 99, the MFN was changed to 50 bps for life with no carve-outs and applies to all pari ratio debt in the form of U.S. dollar term loans, from 75 bps with a six-month sunset with carve-outs for loans maturing two years outside initial loans, incurred in connection with acquisitions, non-syndicated or non-dollar-denominated, and asset sales were modified to remove the step-downs and set reinvestment rights at 12+6 months instead of 18+6 months.

Cole-Parmer leads

Jefferies LLC, Golub Capital, HL Finance and Blackstone are leading Cole-Parmer’s $1.09 billion equivalent of credit facilities, which also include a $75 million five-year revolver (B2/B) and a $245 million equivalent privately placed eight-year second-lien term loan.

Proceeds will be used to help fund the buyout of the company by GTCR. Golden Gate Capital and management will retain a significant minority stake in the company.

Closing is during the week of Nov. 4.

Cole-Parmer is a Vernon Hills, Ill.-based provider of fluid handling, test & measurement, environmental and biosciences instrumentation and associated consumables.

Flexitallic holds steady

Flexitallic’s $200 million term loan B (B3/B-) was quoted at 97½ bid, 98½ offered during the session, in line with where it broke for trading on Monday, a market source remarked.

Pricing on the term loan is Libor plus 650 bps with a 1% Libor floor and it was sold at an original issue discount of 97.5. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was lifted from Libor plus 600 bps, the floor was increased from 0%, the discount was changed from 98, the call protection was extended from six months, the company tightened the EBITDA definition, acquisition, investment and restricted payments baskets, and quarterly calls with management were added.

Natixis and Bank of Ireland are leading the deal that will be used to refinance existing debt.

Flexitallic, a Bridgepoint portfolio company, is a Houston-based manufacturer and supplier of static sealing solutions, primarily selling gaskets across a diverse set of end markets.

84 Lumber guidance

Moving to the primary market, 84 Lumber came out with price talk of Libor plus 425 bps with a 1% Libor floor and an original issue discount of 99 on its $310 million seven-year covenant-lite term loan B (B3/B+) in connection with its lender call on Tuesday, according to a market source.

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

Commitments are due at 5 p.m. ET on Nov. 7.

Wells Fargo Securities LLC and PNC Capital Markets are leading the deal that will be used to refinance the company’s existing ABL revolver and term loan B due 2023, and to pay related transaction fees and expenses.

84 Lumber is an Eighty Four, Pa.-based supplier of building materials, manufactured components and services for single and multi-family residences and commercial buildings.

FleetCor details emerge

FleetCor Technologies held its call in the morning and launched a $343 million covenant-lite term loan B due August 2024 at talk of Libor plus 175 bps with a 0% Libor floor, an original issue discount of 99.875 to par and 101 soft call protection for six months, a market source said.

Commitments are due at noon ET on Nov. 7, the source added.

BofA Securities Inc. is leading the deal that will be used to reprice an existing term loan B down from Libor plus 200 bps.

FleetCor is a Peachtree Corners, Ga.-based provider of specialized payment products and services, including fleet cards, food cards and corporate lodging discount cards for businesses.

Allsup’s on deck

Allsup’s set a bank meeting for 11:30 a.m. ET in New York on Wednesday to launch a $525 million first-lien term loan B (B2/B), according to a market source.

Goldman Sachs Bank USA and RBC Capital Markets are leading the deal that will be used to help fund the acquisition of the company by Yesway, a portfolio company of Brookwood.

Allsup’s is a Clovis, New Mexico-based operator of 305 gas stations and convenience stores throughout New Mexico, Texas and Oklahoma. Yesway is a Des Moines, Iowa-based convenience store chain.

Air Canada coming soon

Air Canada scheduled a lender call for Wednesday to launch a $592 million term loan B talked at Libor plus 175 bps with a 0% Libor floor and an original issue discount of 99.875 to par, a market source remarked.

J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and TD Securities (USA) LLC are leading the deal that will be used to reprice an existing term loan B.

Air Canada is a Montreal-based airline company.

TRC joins calendar

TRC emerged with plans to hold a lender meeting on Thursday to launch a $215 million incremental first-lien term loan, according to a market source.

UBS Investment Bank, Barclays, Citizens Bank and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund an acquisition.

TRC is a Lowell, Mass.-based engineering, environmental consulting and construction management firm.

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