Imperial Dade breaks for trading; CDK, Material Handling tweak deals; Univision sets talk

By Sara Rosenberg

New York, June 7 – Imperial Dade (BCPE Empire Holdings Inc.) tightened the original issue discount on its incremental first-lien term loan and then the debt made its way into the secondary market on Tuesday.

In more happenings, CDK Global Inc. increased the size of its first-lien term loan, and Material Handling Systems (Project Castle) upsized its term loan B and widened the spread and original issue discount.

Furthermore, Univision Communications Inc. (TelevisaUnivision) came to market with a new term loan B, and Dave & Buster’s Inc. and Vertex Co. joined this week’s new issue calendar.

Imperial revised, frees

Imperial Dade changed the original issue discount on its non-fungible $650 million incremental first-lien term loan (B3/B-) due June 11, 2026 to 96.5 from 95, a market source remarked.

As before, the incremental term loan is priced at SOFR+10 basis points CSA plus 462.5 bps with a 0.5% floor and has 101 soft call protection for six months.

Recommitments were due at 10:30 a.m. ET on Tuesday and the incremental term loan began trading later in the day, with levels quoted at 97 bid, 97½ offered, another source added.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Barclays, BMO Capital Markets, Citizens, Stifel and Brinley Partners are leading the deal that will be used to repay revolver borrowings and help fund the acquisition of a 45% equity stake in the company by Advent International from Bain Capital Private Equity.

Imperial Dade is a Jersey City, N.J.-based distributor of foodservice disposables and janitorial sanitation products.

CDK upsized

CDK Global raised its seven-year first-lien term loan to $3.6 billion from $3.35 billion, and now plans on getting $750 million of senior secured first-lien notes instead of $1 billion of other first-lien secured debt, according to a market source.

Talk on the term loan remained at SOFR plus 475 bps to 500 bps with a 0.5% floor, an original issue discount of 95 to 96 and 101 soft call protection for six months.

The company’s now $4.25 billion of credit facilities also include a $650 million revolver.

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

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BMO Capital Markets, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets, TD Securities (USA) LLC, Wells Fargo Securities LLC, BofA Securities Inc., BNP Paribas Securities Inc., CIBC, Bank of Nova Scotia, Credit Agricole, MUFG, Societe Generale and Golub are leading the deal that will be used to help fund the buyout of the company by Brookfield Business Partners for $54.87 per share. The transaction has a total enterprise value of $8.3 billion.

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

CDK is a Hoffman Estates, Ill.-based automotive retail technology company.

Material Handling revised

Material Handling Systems lifted its seven-year term loan B to $1.46 billion from $1.425 billion, sweetened pricing to SOFR plus 550 bps from SOFR plus 500 bps, modified the original issue discount to 89 from talk in the range of 96 to 97 and changed some documentation items, a market source said.

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

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

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., RBC Capital Markets, UBS Investment Bank, Credit Suisse Securities (USA) LLC, Stifel, SMBC, KeyBanc Capital Markets and Citizens are leading the deal.

Material Handling merger

Material Handling will use the new term loan to help fund its merger with Fortna and, due to the upsizing, to fund the wider discount.

Both companies are owned by Thomas H. Lee Partners LP. Upon closing, Thomas H. Lee will remain the majority owner of the combined company and a wholly owned subsidiary of the Abu Dhabi Investment Authority will acquire a significant minority stake to support the combination.

Closing is subject to customary conditions and regulatory approvals.

Material Handling is a Louisville, Ky.-based provider of material handling automation technology and systems integration. Fortna is an Atlanta-based software and solutions provider for warehouse and distribution.

Univision holds call

Univision Communications surfaced in the morning with plans to hold a lender call at 11 a.m. ET to launch a non-fungible $500 million seven-year term loan B (B+) talked at SOFR plus 450 bps with a 0.5% floor, an original issue discount of 96 to 97 and 101 soft call protection for six months, according to a market source.

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

The company also plans on getting a new non-fungible $500 million five-year term loan A and extending its revolver to five years.

JPMorgan Chase Bank, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays and Citigroup Global Markets Inc. are leading the deal that will be used with cash on hand and $500 million of senior secured notes to repay 9½% senior secured notes due May 2025 and refinance a portion of an existing term loan C-5 due March 2024.

Univision is a New York-based Spanish-language content and media company.

Dave & Buster’s on deck

Dave & Buster’s set a lender call for 10 a.m. ET on Wednesday to launch its previously announced $850 million seven-year covenant-lite term loan B (B), a market source remarked.

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

Commitments are due on June 22, the source added.

Deutsche Bank Securities Inc., JPMorgan Chase Bank, BMO Capital Markets, Wells Fargo Securities LLC, Truist, Capital One and Fifth Third are leading the deal that will be used with cash on hand to fund the acquisition of Main Event Entertainment Inc., a Dallas-based family entertainment concept, from Ardent Leisure Group Ltd. and RedBird Capital Partners in a transaction with a total enterprise value of $835 million.

Closing is expected this year, subject to customary conditions, including approval by Ardent Leisure stockholders and regulatory review.

Dave & Buster’s is a Coppell, Tex.-based owner and operator of entertainment and dining venues.

Vertex coming soon

Vertex will hold a lender call at 9 a.m. ET on Wednesday to launch its non-fungible $260 million incremental term loan B due December 2028, according to a market source.

RBC Capital Markets, MUFG, Stifel, US Bank and Citizens Bank are leading the deal that will be used to support the company’s merger with Vectrus Inc.

Closing is expected in the third quarter.

Vertex is a Madison, Miss.-based defense aerospace company. Vectrus is a Colorado Springs-based military and government services company.

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