Genex, PS Logistics break; SolarWinds, Fluidra, Flora Food revised; Cincinnati accelerated

By Sara Rosenberg

New York, March 6 – Genex Services’ credit facilities made their way into the secondary market on Tuesday, with the first-lien term loan quoted above its original issue discount, and PS Logistics (PS HoldCo LLC) freed to trade too.

Moving to the primary market, SolarWinds Inc. moved some funds between its first-and second-lien term loans and updated first-lien pricing, and Fluidra lowered spreads on its U.S. and euro term loans and modified original issue discount guidance.

Also, Flora Food Group (currently Unilever’s spreads business) increased the size of its U.S. term loan while tightening the spread and issue price, and Cincinnati Bell Inc. accelerated the commitment deadline on its term loan B.

In addition, Boardriders Inc., Eton (PricewaterhouseCoopers Public Sector LLP), Albea Beauty Holdings SA, Allison Transmission Inc. and Life Time Inc. disclosed price talk with launch.

And, Omnitracs LLC, HealthChannels Inc., Wells Enterprises Inc., U.S. Security Associates Inc. and C.H. Guenther & Son Inc. (CHG PPC Parent LLC) emerged with new deal plans.

Genex hits secondary

Genex Services’ credit facilities broke for trading on Tuesday, with the $365 million seven-year first-lien term loan B (B) quoted at par 3/8 bid, par 7/8 offered, according to a market source.

The first-lien term loan is priced at Libor plus 325 basis points with a 0% Libor floor, and was sold at an original issue discount of 99.875. The debt has 101 soft call protection for six months.

On Monday, the discount on the first-lien term loan was tightened from 99.5.

The company’s $535 million of credit facilities also include a $50 million five-year revolver (B), and a $120 million eight-year second-lien term loan (CCC+) priced at Libor plus 700 bps with a 0% Libor floor. The second-lien loan has hard call protection of 102 in year one and 101 in year two.

SunTrust Robinson Humphrey Inc., RBC Capital Markets, Capital One, Fifth Third Bank and KKR Capital Markets are leading the deal, with SunTrust left on the first-lien loan and RBC left on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by Stone Point Capital LLC from Apax Partners, which is expected to close this quarter.

Genex is a Wayne, Pa.-based provider of cost containment services to the workers’ compensation, disability and auto industries.

PS Logistics frees up

PS Logistics’ credit facilities began trading as well, with the $250 million seven-year first-lien term loan (B2/B+) quoted at par ½ bid, 101¼ offered, a trader remarked.

Pricing on the term loan is Libor plus 525 bps with a 1% Libor floor and an original issue discount of 99.5. The loan has 101 soft call protection for six months.

During syndication, the term loan was upsized from $246 million, the spread was lowered from Libor plus 550 bps and the discount was changed from 99.

The company’s $300 million of credit facilities also include a $50 million ABL revolver.

UBS Investment Bank, BBVA Compass and Fifth Third are leading the deal that will be used to help fund the buyout of the company by One Equity Partners.

PS Logistics is a flatbed transportation solution provider.

SolarWinds reworked

Switching to the primary market, SolarWinds lifted its first-lien term loan (B1/B) due February 2024 to $1.99 billion from $1.93 billion and downsized its privately-placed second-lien term loan to $315 million from $375 million, a market source said.

Also, pricing on the first-lien term loan was set at Libor plus 300 bps, the low end of the Libor plus 300 bps to 325 bps talk, the 25 bps step-down was changed to be subject to an initial public offering or a 0.5 times first-lien net secured leverage reduction, from only subject to an IPO previously, the issue price was tightened to par from 99.75, and the maintenance of ratings clause was changed to Moody’s plus one from Moody’s plus S&P, the source continued.

The first-lien term loan still has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at 4 p.m. ET on Tuesday, the source added.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and Nomura are leading the deal that will be used to refinance existing credit facilities, including a first-lien term loan due February 2023 priced at Libor plus 350 bps with a 1% Libor floor.

SolarWinds is an Austin, Texas-based provider of IT network and systems infrastructure management software.

Fluidra revises deal

Fluidra cut pricing on its $525 million seven-year first-lien term loan (Ba3/BB) to Libor plus 225 bps from Libor plus 275 bps and changed the original issue discount to 99.75 from 99.5, according to a market source.

Additionally, the company reduced the spread on its €425 million seven-year first-lien term loan (Ba3/BB) to Euribor plus 275 bps from Euribor plus 300 bps and modified discount talk to a range of 99.75 to par from 99.5, the source said.

As before, both term loans have a 0% floor and 101 soft call protection for six months.

Commitments continued to be due on Tuesday, the source added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Bank of America Merrill Lynch and BBVA are leading the deal, with Credit Suisse left on the U.S. loan and Citigroup left on the euro loan.

The loans will be used to fund the merger of Fluidra with Zodiac Pool Solutions, which is expected to close in the first half of this year, subject to the approval of Fluidra’s shareholders and other customary conditions.

Fluidra is a Sabadell, Spain-based developer of products and applications for the commercial and residential pool markets. Zodiac, a Rhône Capital portfolio company, is a Vista, Calif.-based manufacturer of residential pool equipment and connected pool solutions.

Flora Food modified

Flora Food Group raised its U.S. dollar seven-year covenant-light first-lien term loan to $875 million from €600 million equivalent, lowered pricing to Libor plus 300 bps from Libor plus 325 bps and adjusted the original issue discount to 99.875 from 99.5, while leaving the 0% Libor floor unchanged, according to a market source.

The company’s credit facilities (B1/B+/BB-) also include a €700 million 6.5-year revolver, a €2 billion seven-year covenant-light first-lien term loan, a PLN 2 billion seven-year covenant-light first-lien term loan and a £700 million seven-year covenant-light first-lien term loan.

As before, the revolver is priced at Euribor plus 300 bps with a 0% floor, the euro term loan is priced at Euribor plus 350 bps with a 0% floor and a discount of 99.5, the Polish zloty term loan s priced at W plus 350 bps with a 0% floor and a discount of 99.5, and the pound sterling term loan is priced at Libor plus 400 bps with a 0% floor and a discount of 99.5.

At launch, the Polish zloty term loan was described as €500 million equivalent and the pound sterling term loan was described as €800 million equivalent.

Flora Food lead banks

Credit Suisse, Deutsche Bank and KKR are the physical bookrunners on Flora Food’s credit facilities. Bookrunners on the deal are BNP Paribas, Credit Agricole, Goldman Sachs, HSBC, ING, Lloyds, Mizuho, RBC, Societe Generale and UniCredit. Mandated lead arrangers include Commerzbank, mBank, Mediobanca, Rabobank and Raiffeisen.

Recommitments were due at 5 p.m. ET on Tuesday for the U.S. tranche and are due at noon GMT on Wednesday for the other tranches.

The credit facilities will be used to help fund the acquisition of Unilever’s spreads business by KKR for €6,825,000,000 on a cash-free, debt-free basis and to refinance existing debt. The net proceeds from the U.S. term loan upsizing will reduce the senior unsecured bridge facility, the source added.

Closing is expected by mid-year, subject to certain regulatory approvals and employee consultation in certain jurisdictions.

Flora Food is a butter and margarine company.

Cincinnati Bell moves deadline

Cincinnati Bell accelerated the commitment deadline on its $600 million senior secured covenant-light term loan B due Oct. 2, 2024 to noon ET on Wednesday from 5 p.m. ET on Thursday, a market source said.

Talk on the term loan B is Libor plus 325 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., CoBank, PNC Capital Markets LLC, Regions Capital Markets, Citizens Capital Markets, Barclays, Citigroup Global Markets Inc. and MUFG are leading the deal that will be used to reprice an existing term loan B down from Libor plus 375 bps with a 1% Libor floor.

Cincinnati Bell is a Cincinnati-based provider of integrated communications solutions.

Boardriders reveals talk

Also in the primary market, Boardriders held its bank meeting on Tuesday and launched its $450 million six-year term loan B (B3/B-) at talk of Libor plus 625 bps to 650 bps with a 1% Libor floor, an original issue discount of 98 and call protection of non-callable for one year, then at 102 in year two and 101 in year three, according to a market source.

The company’s $590 million of credit facilities also include a $150 million ABL revolver.

Commitments are due at noon ET on March 20, the source said.

Deutsche Bank, Bank of America Merrill Lynch and Macquarie Capital (USA) Inc. are leading the deal that will be used to fund the acquisition of Billabong International Ltd.

Boardriders, owned by funds managed by Oaktree Capital Management, LP, is a Huntington Beach, Calif. action sports and lifestyle company that designs, produces and distributes apparel, footwear and accessories.

Eton terms emerge

Eton revealed price talk on its $315 million seven-year covenant-light first-lien term loan (B) and $105 million eight-year covenant-light second-lien term loan (CCC+) with its morning bank meeting, a market source remarked.

The first-lien term loan is talked at Libor plus 350 bps to 375 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan is Libor plus 750 bps to 775 bps with a 0% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two, the source added.

The company’s $470 million of credit facilities also include a $50 million five-year revolver (B).

Commitments are due at 5 p.m. ET on March 20.

RBC Capital Markets, UBS Investment Bank, Carlyle Global Credit Investment Management LLC and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Veritas Capital.

Eton is a provider of services to federal, state and local governments and multilateral agencies to help solve complex business problems, improve processes and manage risk through its capabilities in financial management, strategy development, program management, operational effectiveness and organization design.

Albea sets guidance

Albea Beauty held its London bank meeting and announced price talk on its $406 million first-lien term loan (B2/B) due April 2024 and €385 million first-lien term loan (B2/B) due April 2024, a market source said. A call for U.S. investors will take place at 10 a.m. ET on Wednesday.

The U.S. term loan is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor and an original issue discount of 99.75, and the euro term loan is talked at Euribor plus 350 bps to 375 bps with a 0% floor and a discount of 99.75, the source added.

Both loans have 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on March 14.

Credit Suisse and BNP Paribas are leading the deal that will be used to refinance existing U.S. and euro term loans due April 2024. BNP Paribas is the administrative agent.

Albea is a Paris-based maker of plastic packaging for beauty and personal care products.

Allison Transmission launches

Allison Transmission held a lender call in the afternoon to launch a $776 million senior secured covenant-light term loan B due September 2022 talked at Libor plus 175 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, according to a market source.

Commitments from existing lenders are due at noon ET on March 14 and from new lenders are due at noon ET on March 15, the source said.

Citigroup Global Markets Inc. is leading the deal that will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor. The term loan is expected to be paid down by $400 million to $776 million with proceeds from a senior unsecured debt offering

Closing is expected during the week of March 19.

Allison Transmission is an Indianapolis-based automatic transmission company and supplier of hybrid-propulsion systems.

Life Time floats OID

Life Time came out with original issue discount talk of 99.75 to par on its $200 million add-on covenant-light term loan B (BB-) due June 15, 2022 that launched with a call during the session, according to a market source.

The add-on loan is priced at Libor plus 275 bps with a 1% Libor floor, and has 101 soft call protection through May 2018.

Commitments are due by 5 p.m. ET on March 13.

Deutsche Bank Securities Inc., BMO Capital Markets, Jefferies LLC, KKR Capital Markets, Macquarie Capital (USA) Inc., Mizuho and Nomura are leading the deal that will be used to repay the current $18 million drawn on the company’s revolver and to add cash to the balance sheet to provide working capital flexibility as Life Time is looking to extend the time between club openings to sale leasebacks to six months from about one month.

Including the add-on, the term loan B will total $1,517,000,000.

Life Time is a Chanhassen, Minn.-based operator of sports, professional fitness, family recreation and spa destinations.

Omnitracs joins calendar

Omnitracs scheduled a lender call for 11 a.m. ET on Wednesday to launch $795 million of credit facilities (B), a market source remarked.

The facilities consist of a $50 million five-year revolver and a $745 million seven-year first-lien term loan B, the source added.

Barclays, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., ING and Vista are leading the deal that will be used to repay the company’s existing first-and second-lien term loans.

Omnitracs is a Dallas-based provider of mission-critical fleet and mobile enterprise software.

HealthChannels plans meeting

HealthChannels will hold a bank meeting at 10:30 a.m. ET on Thursday to launch $270 million of credit facilities, a market source said.

The facilities consist of a $20 million five-year revolver, and a $250 million seven-year senior secured first-lien term loan that includes 101 soft call protection for six months, the source added.

Jefferies LLC is leading the deal.

Proceeds will be used to refinance existing debt and to fund a distribution to Vesey Street Capital Partners.

HealthChannels is a Fort Lauderdale, Fla.-based medical scribing, care coordination and real-time coding services company.

Wells Enterprises on deck

Wells Enterprises set a lender meeting for 2 p.m. ET on Thursday to launch a $175 million covenant-light term loan (B1) due 2025, according to a market source.

BMO Capital Markets is leading the deal that will be used to refinance existing debt.

Wells Enterprises is a Le Mars, Iowa-based family-owned ice cream and frozen treat manufacturer.

U.S. Security readies deal

U.S. Security Associates will hold a lender call at 11 a.m. ET on Thursday to launch a $570 million senior secured term loan B, a market source said.

Goldman Sachs Bank USA is leading the deal that will be used to reprice an existing term loan B. KeyBanc Capital Markets LLC is the administrative agent.

U.S. Security Associates is a Roswell, Ga.-based safety and security services company.

C.H. Guenther coming soon

C.H. Guenther & Son scheduled a bank meeting for Wednesday to launch a $655 million first-lien term loan (B2/B) talked at Libor plus 300 bps to 325 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, according to a market source.

Commitments are due on March 22, the source said.

JP Morgan Chase Bank is leading the deal that will be used to help fund the buyout of the company by PPC Partners.

C.H. Guenther is a San Antonio, Texas-based producer of grain-based and seasoning products.

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