Garda World, Restaurant Brands break; Doosan, Petmate, Hostess, BayClub come to market

By Sara Rosenberg

New York, May 3 – Garda World Security Corp.’ credit facilities allocated and freed up for trading on Wednesday, with the U.S. term loan B quoted above its original issue discount.

Also, Restaurant Brands International Inc. approached lenders with an add-on term loan, downsized the deal and tightened the original issue discount and then broke for trading above that issue price.

Also, Doosan Bobcat Inc. (Clark Equipment Co.), Petmate, Hostess Brands LLC and BayClub disclosed price talk with launch, and Macom Technology Solutions Holdings Inc. emerged with new deal plans.

Garda hits secondary

Garda World Security’s credit facilities broke for trading on Wednesday, with the $1,006,000,000 seven-year senior secured covenant-light term loan B seen at par bid, par ½ offered, according to a trader.

Pricing on the term loan is Libor plus 400 basis points with a 1% 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’s $1.31 billion in credit facilities also includes a C$100 million seven-year senior secured covenant-light term loan B and a $230 million revolver.

The Canadian term loan is priced at CDOR plus 475 bps with a 1% floor and was issued at a discount of 99. This loan has 101 soft call protection for six months as well.

During syndication, the total amount of term loan B debt was increased to $1.08 billion equivalent from $980 million equivalent, pricing on the U.S. term loan was lifted from Libor plus 350 bps, pricing on the Canadian term loan was raised from CDOR plus 425 bps and the discount on both tranches was set at the wide end of the 99 to 99.5 talk. Also, the revolver was downsized from $240 million.

Garda lead banks

Barclays, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., TD Securities (USA) LLC and Societe Generale are leading Garda’s credit facilities.

Proceeds will be used to help fund a refinancing and recapitalization.

Additional funds for the transaction will come from $500 million of senior notes, which were downsized from $630 million.

Subject to any of the company’s existing senior notes declining an outstanding 101 change of control offer in connection with Rhône Capital’s acquisition of a majority equity interest in Garda, the new term loan B may be reduced by $330 million and term loan lenders will retain the difference between the original issue discount and par on any reduced amounts.

Garda is a Montreal-based provider of cash logistics and security solutions.

Restaurant launches, breaks

Restaurant Brands launched with a lender call in the morning a fungible $500 million add-on term loan (B+) due Feb. 17, 2024 with original issue discount talk of 99.5 to 99.75, and then the loan was downsized to $250 million and the discount was tightened to 99.875, according to market sources.

The add-on loan is priced at Libor plus 225 bps with a 1% Libor floor, in line with the company’s existing term loan, and has 101 soft call protection until August.

By late day, the add-on term loan made its way into the secondary market, and levels were quoted at par bid, par ¼ offered, sources added.

J.P. Morgan Securities LLC is leading the deal that will be used with $1.5 billion in first-lien senior secured notes to fund the redemption of 9% class A cumulative compounding redeemable preferred shares, for general corporate purposes, and to pay fees and expenses related to this offering.

The notes offering was upsized from $1 billion.

Restaurant Brands is an Oakville, Ont.-based quick service restaurant company.

Doosan reveals talk

In more happenings, Doosan Bobcat held its lender meeting on Wednesday, launching its $1,345,000,000 term loan (B1/BB-) at talk of Libor plus 275 bps to 300 bps with a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, a market source remarked.

Commitments are due at 5 p.m. ET on May 11, the source added.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing term loans.

Doosan is a manufacturer of compact farm and construction equipment.

Petmate sets guidance

Petmate came out with talk of Libor plus 425 bps with a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months on its $232.5 million seven-year term loan that launched with a bank meeting during the session, according to a market source.

The company’s $262.5 million in credit facilities also include a $30 million five-year revolver.

Commitments are due on May 17, the source said.

Antares Capital is leading the deal that will be used to help fund the buyout of the company by Olympus Partners from Wind Point Partners.

Petmate is an Arlington, Texas-based pet products platform.

Hostess holds call

Hostess Brands surfaced in the morning with plans to hold a lender call at 1 p.m. ET to launch a $996 million first-lien term loan (B1/BB-) due August 2022 talked at Libor plus 250 bps to 275 bps with a 0.75% 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 May 11, the source added.

Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets and UBS Investment Bank are leading the deal that will be used to reprice an existing first-lien term loan from Libor plus 300 bps with a 1% Libor floor.

Hostess is a Kansas City, Mo.-based sweet baked goods company.

BayClub seeks incremental

BayClub launched to existing lenders a $60 million incremental first-lien term loan due August 2022 that is priced at Libor plus 650 bps with a 1% Libor floor, in line with existing term loan pricing, and offered at an original issue discount of 99, a market source remarked.

Jefferies Finance LLC is leading the deal that will be used to fund the acquisition of more clubs.

The company is also seeking an amendment for the incremental loan for which lenders are offered a 12.5 bps consent fee, the source added.

Commitments and amendment consents are due on May 10.

BayClub is a San Francisco-based active lifestyle and hospitality company.

Macom on deck

Macom Technology Solutions set a lender call for 1 p.m. ET on Thursday to launch a $688,461,733 senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to amend and extend an existing $588,461,733 term loan B due 2021 and upsize the facility by $100 million for general corporate purposes.

Macom is a Lowell, Mass.-based supplier of high-performance analog RF, microwave, millimeterwave and photonic semiconductor products.

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