Fortress Investment breaks; LifePoint gains on paydown; Software AG changes surface

By Sara Rosenberg

New York, July 31 – Fortress Investment Group FinCo I LLC increased the size of its term loan B, modified the original issue discount and pushed out the maturity, and then the debt made its way into the secondary market on Monday.

Also in trading, LifePoint Health Inc.’s term loan B moved higher as the company revealed plans to repay some of the debt with proceeds from an upsized bond offering.

In more happenings, Software AG (Mosel Bidco SE) trimmed the spread and tightened the original issue discount on its U.S. and euro term loans, removed a step-down from the euro tranche and revised ticking fees.

Furthermore, Crocs Inc., Carnival Corp., Barnes Group Inc., Talen Energy Supply LLC, Learning Care Group Inc. and Sharp Services LLC released details on their new loan transactions in connection with their lender calls.

Additionally, Access CIG LLC, Charter Next Generation Inc. and Chemours Co. joined this week’s primary calendar.

Fortress reworked, frees

Fortress Investment raised its covenant-lite term loan B (Ba1/BB/BB) to $850 million from $800 million, adjusted the original issue discount to 99.5 from 99 and revised the maturity date to June 2029 from June 2028, according to a market source.

As before, the term loan is priced at SOFR plus 300 basis points with a 0% floor, and has 101 soft call protection for six months.

Recommitments were due at 11 a.m. ET on Monday and the term loan B broke for trading later in the day, with levels quoted at 99¾ bid, par offered, another source added.

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to amend and extend by four years an existing $700 million term loan B and to fund future acquisitions.

Fortress Investment is an alternative investment management firm.

LifePoint rises

LifePoint Health’s term loan B moved up to 98 5/8 bid, 99 1/8 offered on Monday from 97 5/8 bid, 98 1/8 offered on Friday as the company announced it will repay a portion of the debt as a result of an upsizing of its senior secured notes offering to $800 million from $600 million, a market source remarked.

The remaining proceeds from the notes will be used to redeem all of the company’s outstanding 6¾% senior secured notes due 2025.

LifePoint is a Brentwood, Tenn.-based operator of general acute care hospitals, community hospitals, regional health systems, physician practices, outpatient centers and post-acute care facilities.

Software revised

Software AG cut pricing on its €1 billion equivalent seven-year U.S. and euro term loan (B2/B/BB-) to SOFR/Euribor plus 475 bps from SOFR/Euribor plus 500 bps and changed the original issue discount to 98 from 97, according to a market source.

Also,, a 25 bps pricing step-down at 2.5x senior secured net leverage was removed from the euro term loan, the margin ratchet holiday was modified to six months from three months, ticking fees were changed to half the margin for days 46 to 90 and the full margin thereafter, from half the margin on days 121 to 180 and the full margin thereafter, and some revisions were made to documentation, the source said.

As before, the U.S. term loan has a minimum size of $400 million, a 25 bps step-down at 3.5x senior secured net leverage and a 0.5% floor, the euro term loan has 25 bps step-downs at 3.5x and 3x senior secured net leverage and a 0% floor, and both loans have 101 soft call protection for six months.

Software lead banks

JPMorgan Chase Bank is the sole physical bookrunner on Software AG’s term loans. Banco Santander and Citigroup Global Markets Inc. are joint bookrunners.

Recommitments for the U.S. term loan were due at the end of the day on Monday, and recommitments for the euro term loan are due at 7 a.m. ET on Tuesday, the source added.

The term loans will be used to help fund the buyout of the company by Silver Lake for €32.00 per share, implying an equity value of Software AG of about €2.4 billion.

Closing is expected in the fourth quarter.

Software AG is a Darmstadt, Germany-based software company.

Crocs repricing

Crocs surfaced in the early morning with plans to hold a lender call at 9:30 a.m. ET on Monday to launch a $1.18 billion senior secured covenant-lite term loan B (Ba2/BB-) due Feb. 19, 2029 talked at SOFR plus 300 bps to 325 bps with a 0.5% floor, a par issue price and 101 soft call protection for six months, according to a market source.

Citigroup Global Markets Inc. is the left lead on the deal that will be used to reprice an existing term loan B due Feb. 19, 2029 down from SOFR plus 350 bps with a 0.5% floor.

Existing lender commitments are due at 5 p.m. ET on Wednesday and new money commitments are due at noon ET on Thursday, the source added.

Closing is expected during the week of Aug. 7.

Crocs is a Broomfield, Colo.-based casual footwear company.

Carnival holds call

Carnival held a lender call at 11 a.m. ET, launching a $1 billion senior secured first-lien term loan B (BB-) due 2027 at talk of SOFR plus 350 bps with a 0.75% floor, an original issue discount of 99 to 99.25 and 101 soft call protection for six months, a market source said.

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

JPMorgan Chase Bank is leading the deal that will be used with $500 million of other secured debt maturing in 2029 to repay a portion of the company’s existing first-priority senior secured term loan due in 2025.

Carnival is a Miami-based cruise operator.

Barnes launches

Barnes Group launched on a lender call at 11:30 a.m. ET a $600 million seven-year term loan B (Ba3/BB) talked at SOFR+10 bps CSA plus 350 bps with a 0% floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Aug. 10, the source added.

BofA Securities Inc., Citizens Bank, JPMorgan Chase Bank, Wells Fargo Securities LLC, PNC Capital Markets, TD Securities (USA) LLC, Truist Securities, HSBC Securities (USA) Inc. and US Bank are leading the deal that will be used to help fund the roughly $740 million acquisition of MB Aerospace, and for working capital, capital expenditures and other general corporate purposes.

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

Barnes is a Bristol, Conn.-based developer of advanced processes, automation solutions and applied technologies for industries ranging from medical and personal care to mobility, packaging, and aerospace. MB Aerospace is a Motherwell, U.K.-based provider of precision aero-engine component manufacturing and repair services.

Talen details emerge

Talen Energy Supply held its lender call at 10:30 a.m. ET and, prior to the call kicking off, it was revealed that the company would be approaching lenders with a fungible $290 million add-on senior secured term loan B due May 2030 talked with an original issue discount of 98.5 to 99, a market source remarked.

Like the existing term loan B, the add-on term loan is priced at SOFR plus 450 bps with a 0.5% floor.

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

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

Citigroup Global Markets Inc. is the left lead on the deal that will be used to repay the company’s existing LMBE MC term loan.

Closing is expected the week of Aug. 7.

Talen Energy is a Houston-based power generation and infrastructure company.

Learning Care refinancing

Learning Care Group held a lender call at 1 p.m. ET, launching a $900 million five-year term loan (B2/B) at talk of SOFR plus 475 bps with a 0.5% floor, an original issue discount of 97 to 97.5 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on Aug. 8, the source added.

JPMorgan Chase Bank is leading the deal that will be used to refinance existing first- and second-lien term loans, and to pay related fees and expenses.

Learning Care is a Novi, Mich.-based provider of early education and childcare services.

Sharp comes to market

Sharp Services held a lender call at 12:30 p.m. ET on Monday to launch a non-fungible $211.4 million incremental first-lien term loan B (B2) due December 2028 talked at SOFR plus 450 bps with a 0.5% floor, an original issue discount of 98 and 101 soft call protection for six months, a market source said.

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

JPMorgan Chase Bank and RBC Capital Markets are co-leads on the deal and bookrunners with Barclays, Citigroup Global Markets Inc. and ING.

The term loan will be used with cash on hand and equity to fund the acquisition of the remaining 75% stake in Berkshire Sterile Manufacturing, a provider of specialized isolator-based sterile filling of vials, syringes, cartridges and containers, as well as lyophilization and terminal sterilization to small, medium and virtual pharma and biotech companies.

Sharp Services is a provider of pharmaceutical packaging and clinical services.

Access CIG on deck

Access CIG set a lender call for 2 p.m. ET on Tuesday to launch a $1.125 billion five-year first-lien term loan (B2/B), according to a market source.

The term loan has 101 soft call protection for six months and a springing maturity ahead of the company’s existing second-lien term loan, the source said.

Jefferies LLC, Macquarie Capital (USA) Inc., Nomura and Golub are leading the deal that will be used with a new revolving credit facility to refinance the company’s existing revolver and first-lien term loan.

Access CIG is a Livermore, Calif.-based provider of records and information management solutions for highly regulated industries including healthcare, financial services, law, consumer, and materials & industries.

Charter Next readies deal

Charter Next Generation will hold a lender call at 10:30 a.m. ET on Tuesday to launch a fungible $140 million add-on term loan B due 2027, a market source remarked.

KKR Capital Markets is the lead on the deal. Jefferies LLC is the administrative agent.

The term loan will be used to repay senior unsecured PIK notes.

Pricing on the company’s existing term loan is SOFR+CSA plus 375 bps with a 0.75% floor. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Charter Next Generation is a Milton, Wis.-based producer of specialty films used in flexible packaging and other end-use markets.

Chemours joins calendar

Chemours scheduled a lender call for 10 a.m. ET on Tuesday to launch a $960 million five-year term loan B and a €515 million five-year term loan B, according to a market source.

Talk on the U.S. term loan is SOFR plus 325 bps to 350 bps with a 0.5% floor and an original issue discount of 98.5, and talk on the euro term loan is Euribor plus 375 bps to 400 bps with a 0% floor and a discount of 98.5, the source said. Both term loans (BBB-) have 101 soft call protection for six months.

Commitments for the U.S. term loan are due at 5 p.m. ET on Aug. 9 and commitments for the euro term loan are due at noon ET on Aug. 9, the source added.

JPMorgan Chase Bank is the left lead on the deal that will be used to refinance existing U.S. and euro term loans due 2025, to pre-fund a legal settlement and for general corporate purposes.

Chemours is a Wilmington, Del.-based provider of performance chemicals.

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