Daseke, RCN Grand Wave, Clarivate Analytics, Hostess, ExGen, AGRO Merchants break

By Sara Rosenberg

New York, Nov. 16 – Daseke Inc. raised the spread on its incremental term loan and repricing of its existing term loan before freeing up for trading on Thursday, and deals from RCN Grand Wave (Radiate Holdco LLC), Clarivate Analytics (Camelot Finance LP) and Hostess Brands LLC, ExGen Renewables IV LLC and AGRO Merchants Global LP also hit the secondary market.

In more happenings, Packers Sanitation Services Inc. upsized its first-lien term loan, set pricing at the low end of guidance and tightened the issue price, and Excelitas Technologies Corp. trimmed spreads on its first-and second-lien term loans and adjusted original issue discounts on the first-lien debt.

Also, Go Daddy Operating Co. LLC raised pricing on its term loan, added a step-down and set the issue price at the tight end of talk, and 84 Lumber Co. lifted pricing on its term loan B and sweetened the call protection.

Additionally, Alight Solutions upsized its add-on term loan B, Vistra Group lowered pricing on its euro first-lien term loan debt and BayMark Health Services Inc. released price talk with launch.

Daseke revised, trades

Daseke lifted pricing on its $150 million incremental first-lien term loan due February 2024 and repricing of its existing $349 million first-lien term loan due February 2024 to Libor plus 500 basis points from Libor plus 475 bps, according to a market source.

Unchanged on the term debt was the 1% Libor floor and 101 soft call protection for six months, the original issue discount of 99.5 on the incremental loan, the par issue price on the repricing and the 25 bps amendment fee offered to existing lenders.

Commitments were due at noon ET on Thursday, accelerated from 5 p.m. ET, and then the term loan debt began trading in the late afternoon with levels seen at 99¾ bid, par ¾ offered, a trader added.

Credit Suisse Securities (USA) LLC is leading the deal (B1/B+).

The incremental loan will be used to fund tuck-in acquisitions, and the repricing will take the existing term loan down from Libor plus 550 bps with a 1% Libor floor.

Daseke is an Addison, Texas-based owner of open deck equipment and a transportation and logistics solutions company in the open deck trucking market.

RCN frees up

RCN Grand Wave’s $1,425,000,000 incremental first-lien term loan due Feb. 1, 2024 broke for trading, with levels quoted at 99 bid, 99¼ offered, a trader said.

The term loan is priced at Libor plus 300 bps with a 0.75% Libor floor and was sold at an original issue discount of 99. The debt has 101 soft call protection for six months.

On Wednesday, the loan was upsized from $1,275,000,000.

Along with the term loan, the cable operator is getting a $150 million incremental revolver.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Nomura, Goldman Sachs Bank USA and Bank of America Merrill Lynch are leading the deal that will be used to help fund the acquisition of Wave Broadband, a regional broadband fiber company, from Oak Hill Capital Partners, management and GI Partners.

The upsize of the term loan will be used to reduce the senior bridge facility or expected senior notes by the same amount.

Closing is expected this year, subject to customary conditions.

Clarivate tops par

Clarivate Analytics’ $1,535,000,000 first-lien term loan due October 2023 began trading, with levels quoted at par 1/8 bid, par 5/8 offered, according to a trader.

Pricing on the term loan is Libor plus 325 bps with a 1% Libor floor and it was issued at par. The term loan has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to reprice an existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Clarivate, formerly known as the Thomson Reuters’ Intellectual Property & Science (IP&S) business, is a Philadelphia-based provider of comprehensive intellectual property and scientific information, decision support tools and services.

Hostess starts trading

Hostess Brands’ $994 million first-lien term loan (B1/BB-) due August 2022 also freed to trade, with levels seen at par 1/8 bid, par 3/8 offered, a trader remarked.

The term loan is priced at Libor plus 225 bps with a 0.75% Libor floor and was issued at par. The debt includes 101 soft call protection for six months.

On Wednesday, the issue price on the loan was changed from 99.875, a 25 bps ratings-based step-down was eliminated and the maturity was revised from August 2023.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance an existing term loan due August 2022 priced at Libor plus 250 bps with a 0.75% Libor floor.

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

ExGen hits secondary

ExGen Renewables’ $850 million seven-year senior secured term loan B broke as well, with levels quoted at par ¼ bid, par ¾ offered, according to a trader.

Pricing on the term loan is Libor plus 300 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

On Wednesday, the term loan was upsized from $750 million, the spread was reduced from Libor plus 325 bps, and the discount was modified from 99.5.

Morgan Stanley Senior Funding Inc. is leading the deal that will be used to make a distribution to Exelon Corp., fund debt service reserve and liquidity accounts and pay related transaction fees and expenses. The additional proceeds from the recent loan upsizing will be used to increase the dividend.

Closing is expected late this month.

ExGen Renewables, an indirect wholly owned subsidiary of Exelon, indirectly owns a material interest in 33 operating renewable generation projects located within the United States with a total capacity of about 1,791 MW.

AGRO Merchants breaks

AGRO Merchants’ $360 million seven-year covenant-light first-lien term loan B hit the secondary too, with levels seen at par bid, par ½ offered, a trader remarked.

The term loan is priced at Libor plus 375 bps with a 1% Libor floor and it was sold at an original issue discount of 99.5. The loan has 101 soft call protection for six months.

On Wednesday, the term loan was upsized from $350 million as a privately placed second-lien term loan was downsized to $80 million from $90 million, pricing was lowered from Libor plus 400 bps and the discount was revised from 99.

Morgan Stanley Senior Funding Inc., Barclays and Deutsche Bank Securities Inc. are leading the senior secured deal that will be used to refinance the existing capital structure, fund an acquisition and pay related fees and expenses.

Closing is expected on Nov. 30.

AGRO Merchants is an Alpharetta, Ga.-based owner and operator of temperature-controlled warehouse and distribution space.

Packers sets changes

Back in the primary market, Packers Sanitation Services raised its seven-year first-lien term loan to $600 million from $575 million, firmed pricing at Libor plus 325 bps, the low end of the Libor plus 325 bps to 350 bps talk and changed the issue price to par from 99.5, a market source said.

As before, the term loan has a 25 bps step-down at 4.5 times net first-lien leverage, a 1% Libor floor and 101 soft call protection for six months.

The company’s now $650 million of credit facilities also include a $50 million revolver.

Recommitments were due at noon ET on Thursday, the source added.

Jefferies LLC and Nomura are leading the deal that will be used with $275 million of privately placed senior unsecured notes, downsized from $280 million, to recapitalize the structure of the company and fund a distribution to shareholders, which was increased due to the term loan upsizing.

Packers Sanitation is a Kieler, Wis.-based provider of mission-critical outsourced cleaning and sanitation services to the food processing industry.

Excelitas flexes

Excelitas Technologies lowered pricing on its $505 million seven-year first-lien term loan (B-) and its €250 million seven-year first-lien term loan (B-) to Libor/Euribor plus 350 bps from talk in the range of Libor/Euribor plus 375 bps to 400 bps and modified the original issue discount to 99.75 from 99.5, according to a market source.

The U.S. first-lien term loan still has a 1% Libor floor, the euro first-lien term loan still has a 0% floor and both first-lien term loans still have 101 soft call protection for six months.

Regarding the company’s $260 million eight-year second-lien term loan (CCC+), the spread was cut to Libor plus 750 bps from talk in the range of Libor plus 775 bps to 800 bps, while the 1% Libor floor, discount of 99 and hard call protection of 102 in year one and 101 in year two were left intact, the source said.

Another change is that the company is now required under the credit agreement to hold quarterly calls.

Recommitments were due at noon ET on Thursday, the source added.

J.P. Morgan Securities LLC is the left lead on the deal that will be used to help fund the buyout of the company by AEA Investors from Veritas Capital, which is expected to close this quarter.

Excelitas is a Waltham, Mass.-based optoelectronics provider to military and defense customers and commercial original equipment manufacturers.

Go Daddy updated

Go Daddy raised the spread on its $2,489,000,000 senior secured covenant-light term loan B due February 2024 to Libor plus 225 bps from Libor plus 200 bps, added a step-down to Libor plus 200 bps at a Ba2 corporate rating from Moody’s and finalized the issue price at par, the tight end of the 99.875 to par talk, a market source said.

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

Commitments are due at 10:30 a.m. ET on Friday and allocations are expected thereafter, the source added.

Deutsche Bank Securities Inc. and KKR Capital Markets are the joint lead arrangers on the deal and joint bookrunners with Barclays, Morgan Stanley Senior Funding Inc., RBC Capital Markets, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Societe Generale. Barclays is the administrative agent.

Proceeds will be used to reprice an existing term loan down from Libor plus 250 bps with a 0% Libor floor.

Go Daddy is Scottsdale, Ariz.-based provider of web hosting and domain names.

84 Lumber modified

84 Lumber changed pricing on its $343.4 million covenant-light term loan B due Oct. 25, 2023 to Libor plus 525 bps from Libor plus 475 bps and extended the 101 soft call protection to one year from six months, according to a market source.

The loan continues to include a 1% Libor floor and a par issue price.

Commitments are still due at noon ET on Friday, the source said.

Wells Fargo Securities LLC is leading the deal that will be used to reprice an existing term loan B from Libor plus 575 bps with a 1% Libor floor.

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.

Alight upsizes

Alight Solutions increased its fungible add-on covenant-light term loan B to $205 million from $185 million and decreased its add-on 6¾% senior notes to $180 million from $200 million, a market source said.

Talk on the add-on term loan is still Libor plus 300 bps with a step-down to Libor plus 275 bps at 4.25 times net first-lien leverage, a 0% Libor floor and an original issue discount of 99.5.

Commitments are due on Friday.

Bank of America Merrill Lynch is the left lead on the deal that will be used with the bonds and $25 million of cash on hand to fund a return of capital to shareholders.

Alight Solutions, formerly known as Tempo Acquisition LLC, is a Lincolnshire, Ill.-based provider of benefits outsourcing services plans.

Vistra tweaks euro

Vistra Group trimmed pricing on its euro first-lien term loan debt to Euribor plus 325 bps from Euribor plus 350 bps and tightened the issue price for euro new money to par from 99.75, while leaving the 0% floor unchanged, a market source remarked.

The debt consists of an $80 million equivalent add-on first-lien U.S. and euro term loan (B2/B) and a €385 million repriced first-lien term loan (B2/B). The company is also getting a $252 million repriced first-lien term loan (B2/B), a $36 million repriced second-lien term loan (B3/CCC+) and a €29 million repriced second-lien term loan (B3/CCC+).

Pricing on the U.S. first-lien term loan debt is still Libor plus 325 bps with a 1% Libor floor with the U.S. portion of the add-on loan offered at an original issue discount of 99.75, and the second-lien term loans are still priced at Libor/Euribor plus 725 bps, with the U.S. tranche having a 1% Libor floor and the euro tranche having a 0% floor.

The first-lien term loans include 101 soft call protection for six months, the second-lien loans are non-callable for one year, and all of the repricings are offered with a 10 bps amendment fee.

Vistra lead banks

Goldman Sachs Bank USA and HSBC Securities (USA) Inc. are leading Vistra Group’s loans and set a recommitment deadline for the euro loan for the close of business UK time on Thursday, the source added.

The add-on term loan will be used to prepay a portion of the existing second-lien term loan debt resulting in the $36 million and €29 million tranche sizes. The repricings will take the U.S. first-lien term loan down from Libor plus 375 bps with a 1% Libor floor, revise euro first-lien term loan pricing from Euribor plus 300 bps with a 1% floor, and take the second-lien term loans down from Libor/Euribor plus 800 bps with a 1% Libor floor.

Vistra Group is a provider of company formations, trust, corporate and fund administration services.

BayMark discloses talk

Also in the primary market, BayMark Health Services held its bank meeting on Thursday and announced price talk on its fungible $29 million incremental first-lien term loan, fungible $30 million incremental first-lien delayed-draw term loan and $45 million second-lien term loan, according to a market source.

The first-lien debt is talked with an original issue discount of 99.5, and the delayed-draw has an unused fee of 100 bps per annum, the source said. Pricing on the first-lien debt is Libor plus 475 bps with a 1% Libor floor.

The second-lien term loan is talked at Libor plus 850 bps to 875 bps with a 1% Libor floor and an original issue discount of 98.5, the source continued.

Capital One is leading the deal that will be used for general corporate purposes, including acquisitions.

BayMark, a Webster Capital portfolio company, is a Lewisville, Texas-based behavioral health provider specializing in opioid treatment services.

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